OakNorth, the digital bank for entrepreneurs, has provided a $60.7m note-on-note facility to returning customer and New York-based lending platform, S3 Capital. Established back in 2013 by Joshua Crane and Robert Schwartz after they claimed to have recognized a significant lack of institutional quality, middle market construction lenders in NYC, the firm has since (reportedly) become one of the “most active private lenders nationally.”
Formed as the private lending arm of Spruce Capital Partners, the firm specializes “in small balance loans under $20m and middle market loans up to $300m, lending over $6.5b across 700+ transactions to date.”
The £60.7m note-on-note loan from OakNorth will now be “used to support the ground-up development of 68 new luxury condos in Greenpoint, Brooklyn.”
Considered to be one of the borough’s desirable waterfront neighborhoods, the development will “offer residents a collection of one, two, three and four bedroomed homes, complemented by a amenities, including a concierge, landscaped rooftop garden, co-working lounge, fitness center, children’s play area.”
Designed with high-end finishes and private outdoor spaces for most units, the project aims “to deliver living with access to the G train, East River Ferry, and Manhattan’s business districts.”
Joshua Crane, Co-Founder at S3 Capital, commented on the transaction by noting that they are pleased to “partner with OakNorth on this exciting project in Greenpoint.”
This marks their fifth deal together, and they keep “returning to OakNorth due to their deep expertise, strong track record, and speed in executing complex real estate transactions.”
Their continued trust and partnership reflect their shared “focus on disciplined underwriting and delivering developments in key markets.”
Dylan Jagjivan, Director of Debt Finance at OakNorth, stated that this project showcases the strength of their “ongoing relationship with S3 Capital, one of the most experienced and reliable lenders in the New York market.”
They added that the Greenpoint development is “well-located in a high-demand neighborhood, with fundamentals and a sponsor team behind it.”
They are now eager to continue supporting “S3’s growth in the US, as they expand their footprint in high-quality residential developments.”