Silverstein's Debt Fund Raises Another $2B For CRE Loans

Bisnow/Miriam Hall
Cohnreznick's Ronald Kaplan, Silverstein Capital Partners' Michael May, Afiaa's Dino Christoforakis And Pender Capital's Zach Murphy

Silverstein Properties' lending arm has closed on a new $2B debt fund that the company says will be used to offer a range of loan types and rescue capital for real estate projects across a range of asset classes.

Silverstein Capital Partners has now raised $4B since its launch in 2018, which it has used to underwrite a range of large-scale development projects in New York and other major U.S. markets.

“Our success is based on our ability to use creative financial structuring, move quickly, provide borrowers a one-stop financial solution, and lend at scale on loans we hold,” SCP President Michael May said in a statement. “Our access to Silverstein’s in-house design, development, construction, leasing, and asset management resources allows us to efficiently underwrite and bid complicated projects.”

The new capital infusion comes from SCP’s two existing partners, along with the addition of what the company says are three new global institutional investors. The lender’s original two partners are a sovereign wealth fund and a pension fund that have remained unnamed.

Since its launch, SCP has been involved in several marquee developments across New York City. In 2020, the company extended a $200M A-note for the Hudson Cos.’ One Clinton condo and retail development in Brooklyn Heights, currently under construction. The previous year, SCP provided a $235.6M mezzanine loan for 9 DeKalb, JDS Development Group’s mixed-use skyscraper in Downtown Brooklyn, as well as a $150M senior participation loan for the massive mixed-use TSX Broadway project in Times Square.

“SCP’s lending mirrors Silverstein’s overall business strategy of investing in large-scale, mixed-use projects in growing national markets,” Silverstein Properties CEO Marty Burger said in a statement. “SCP has far exceeded our expectations for Silverstein’s lending platform.”

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