A new lender is opening its doors amid turmoil in the banking industry.

Avrio Real Estate Credit, a real estate finance subsidiary of Canadian commercial and residential developer Dream Unlimited Corp., announced on March 14 that it is launching with a headquarters in Denver and additional offices in New York, Toronto and Los Angeles.

The new company's formation comes as the banking industry waits to see the effects of the collapse of Silicon Valley Bank and Signature Bank, and prices for commercial real estate properties continue to seek a new normal from the disruptions of the pandemic.

“We believe with the current real estate capital markets experiencing some dislocation, now is an opportune time,” Avrio CEO Vicky Schiff said in a statement.

Denver’s capital market was hit hard by the coronavirus pandemic that drove down demand for construction loans and mortgages. Real estate professionals told Bisnow in February that Denver’s capital markets have recovered well since March 2020, but the industry still faces headwinds from inflation and the financial turbulence that it has brought along with it, and finding financing is a challenge.

Avrio plans to offer short-term, first mortgage debt and other structured finance products like B notes, mezzanine debt and loans ranging from $25M to $150M, according to the release.

“Given the current supply gap of available debt to meet the needs of real estate operators and developers in the U.S, Avrio will play a critical role in bringing flexible and creative debt funding to developers searching for this type of instrument,” Avrio co-founder and Chief Responsible Officer Michael Cooper said in a statement.