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Carlyle Group Backing Slate In The Latest Developer-Turned-Lender Play

Slate Property Group principal Martin Nussbaum

Slate Property Group is joining with The Carlyle Group to create a $750M lending platform called SCALE Lending.

The company will provide land loans, construction loans and condominium inventory loans, Slate announced Wednesday. Its target will be noninstitutional developers unable to lock down traditional financing. Slate launched a commercial lending arm called SPG Capital Partners earlier this year.

“There are a lot of pure debt players out there,” Slate Property Group co-founder Martin Nussbaum said in a news release. "We expect borrowers will come to us because they know us from our development business, and trust that we will understand their construction budgets and offer certainty of close."

SCALE will also provide development and construction advice.

“This is an ideal time to enter the New York City real estate lending market, where each borough has its unique opportunities,” Nussbaum said.

A slew of developers have moved into lending in recent times, capitalizing on banks’ caution. Earlier this month, Silverstein Properties announced it is establishing a venture called Silverstein Capital Partners that will allow the developer to offer loans for real estate projects.

Silverstein partnered with a sovereign wealth fund and a pension fund for the platform.

New York’s Moinian Group launched a lending arm last year, joining firms like Madison Realty Capital and Related. RXR Realty teamed up with a Canadian pension fund earlier this year to broaden its lending capacity.