UK’s digital bank OakNorth announced recently that it has now provided a $30m note-on-note revolving credit facility to Module Five Capital, the New York-based real estate lending platform. Established back in 2020 by Max Gejerman, Yehuda Krauss, and Nisson Hyman, Module Five Capital is a balance-sheet lender that provides “senior debt financing to U.S. commercial and residential real estate projects, with a focus on short-term bridge and construction loans ranging from $500k to $10m.”
The company has now reportedly originated more than 45 loans since inception and currently manages an “active loan book across multifamily, industrial, and mixed-use assets.”
The $30m note-on-note facility from OakNorth will be used to fund new originations, such as land and construction loans, bridge/fix and flip loans, as well as multifamily investment loans.
The relationship also reportedly offers Module Five Capital with more flexible funding to scale its platform and expand its lending capacity “across U.S. metropolitan areas, particularly New York, New Jersey, and Pennsylvania.”
Max Gejerman, Co-Founder and Managing Partner at Module Five Capital, commented on the transaction by noting that with non-bank lenders now accounting for more than “60% of new commercial real estate loans in the U.S, demand for private credit solutions continues to accelerate.”
Gejerman added that working cooperatively with with OakNorth allows them to meet this need while also “maintaining our disciplined underwriting and local market focus.”
They also mentioned that OakNorth’s understanding of the note-on-note structure and the teams collaborative approach “makes them the ideal partner as they scale their platform, and continue delivering tailored, risk-adjusted lending solutions across key U.S. markets.”
Max Saidman, the Director of Debt Finance at OakNorth, has claimed that Module Five Capital is a disciplined and entrepreneurial lending platform “with a strong track record and deep expertise in U.S commercial real estate credit.”
Saidman also noted that the facility they’ve structured “provides flexibility for the business to grow while maintaining its credit record.”
They are now eager to support Module Five Capital in further “expanding its lending footprint and to strengthen OakNorth’s presence in the U.S private credit market.”