Client Spotlight: Trevian Capital: CRE Bridge Lending Strategy
Trevian Capital LLC (“Trevian”), founded in 2013 by Michael Hoffenberg, is an established middle-market real estate finance company that provides short-term, first-mortgage bridge loans secured by multifamily and commercial real estate nationwide. Trevian has yielded positive returns every month since its inception, and targets a net return to investors of 10%.
Since its founding in 2013, Trevian has originated and serviced approximately $550,000,000 in high-yield, senior-secured bridge loans across 61 transactions in 18 states on behalf of institutional investors. Leveraging Trevian’s experience and success, Trevian Capital Debt Fund Advisor LLC (the “Investment Manager”), an affiliate of Trevian, recently launched Trevian Capital Debt Fund, LP (the “Fund”) to expand its real estate debt platform and to continue its focus on providing investors with current income from non-correlated and low-volatility investments, strong risk-adjusted returns, and cushion against unforeseen market events with downside principal protection.
The Trevian executive team has over 45 years of combined expertise in originations, underwriting, portfolio management, servicing, and workouts of real estate debt investments, as well as ownership and asset management of real estate equity investments. With a focus on the one million to fifty million middle market segment, Trevian has emerged as a leader in their niche of the bridge lending industry. Their geographic reach combined with years of industry-wide relationships provides for an outsized pipeline of opportunities, which is a key differentiator from other middle-market bridge lenders.
The Fund focuses on the following multifamily and commercial real estate bridge lending opportunities where the business plan can be achieved during a one-to two-year time period “bridging” the borrower to either a sale or a longer-term conventional refinance. The Fund’s underlying investments will focus on being in a first mortgage position lending against predominately multifamily properties and will also consider industrial, self-storage, medical office and other commercial real estate assets. The types of scenarios that fall into the Fund’s investment profile will be:
-Time-constrained transactions that need to close in less than 30 days
-Value-add real estate projects undergoing renovation, repositioning, and/or lease-up and stabilization
-Construction Completion (and providing time to either lease up and refinance or sell)
-Providing liquidity to borrowers in market environments where liquidity is scarce and/or conventional lending has pulled back
-Transitional borrowers who do not qualify for conventional financing
-Bridging the seasoning gap to a Fannie Mae, Freddie Mac, or FHA refinance
-Other special situations that fall outside the realm of conventional lending
Join Michael Hoffenberg on April 7th as he talks more about Trevian’s past and present, and how market dislocations like the one caused by the pandemic create outsized opportunity for non-bank lenders like Trevian.
The information contained herein (the “Overview”) has been prepared by Trevian Capital Debt Fund Advisor LLC (the “Investment Manager”) and is being furnished on a highly confidential basis to select, qualified investors for their consideration in connection with an investment in Trevian Capital Debt Fund I, LP (the “Fund”). This Overview is for the confidential and exclusive use of the persons to whom it has been delivered by the Investment Manager. It may not be reproduced, provided, or disclosed to others without prior written authorization of the Investment Manager and upon request must be returned to the Investment Manager. The Overview does not purport to be all-inclusive or to contain all of the information that a prospective investor may desire. In all cases, interested parties should conduct their own investigation and analysis of the data set forth in this Overview. Investment in the Fund is subject to significant risks due to, among other things, the nature of this Fund’s investments. These risks will be set forth in detail in the Fund’s confidential private placement memorandum.
The views expressed herein are those of the Investment Manager as of February 2021 and not of any later date. This Overview contains forward-looking statements within the meaning of the section of 27A of the Securities Act of 1933, as amended, and section 21E of the Securities and Exchange Act of 1934, as amended. The opinions, forecasts, projections, or other statements, other than statements of historical fact, are forward-looking statements. Although the Investment Manager believes that the expectations reflected in such forward looking statements are reasonable, they do involve a number of risks and uncertainties.
The loan characteristics and other parameters in this Overview are estimates and are provided for illustrative purposes only and are based on the Investment Manager’s perception of such matters as of the date of this Overview. The Fund’s origination strategy and the terms of the loans may change over time.
This Overview does not constitute an offer to sell or the solicitation of an offer to purchase an interest in this Fund. Any offer to sell or solicitation of an offer to purchase an interest in this Overview, if made, shall only be made by delivery of a confidential private placement memorandum and the limited partnership agreement and other governing documents of such Fund, including the Fund’s subscription agreement, and only in jurisdictions where permitted by law.
Investors should not construe the contents of this Overview as legal, tax, investment, or other advice. Investors must make their own inquiries and should consult their own advisors as to the appropriateness and desirability of investing in this Fund and as to legal, tax, and related matters concerning such investment.