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The demand for bridge loans in New York has gone up recently, as borrowers turned away by banks look to bridge lenders to help them pay for their assets.
Port Washington-based developer BEB Capital plans to jump on this trend with the launch of a bridge lending program, the company announced this week. BEB hopes to distinguish itself as a lender who understands assets better than traditional lenders can because of its background in development.
“With the industrial assets, we can add value, help the borrower succeed, and plus we’re in a better position to understand the asset,” BEB Capital Lending Division President Keyvan Ghaytanchi said in an interview Tuesday. "We can help a lot, from assisting the borrower, executing the plan, supporting them."
In its first year, BEB is looking to provide $50M or less in bridge loans. The amounts could range from $750K to $10M, with fixed interest rates starting at 8%, according to the company’s website.
BEB Capital owns over 2M SF of real estate in New York, including industrial and multifamily properties. The lending program will operate independently of the development side of the company, Ghaytanchi said.
He added that BEB didn't establish the lending fund with an aim to eventually take control of borrowers' properties, a possible concern given the company owns its own real estate.
“We’re looking to be a true lender, to be a separate division of the company,” Ghaytanchi said. "We’re not predatory."
The launch of the program has been in the works for over nine months, he added. BEB has received many phone calls over the past two weeks from people interested in applying for a loan, with around 80% of these companies based in New York, Ghaytanchi said.
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