Gryphon Real Estate Capital Partners and CarVal Investors Form Transitional Multifamily Bridge Loan Venture

NEW YORK and MINNEAPOLIS, July 20, 2021 /PRNewswire/ -- Gryphon Real Estate Capital Partners and CarVal Investors announced today the formation of a joint venture to originate multifamily senior bridge loans in primary and secondary markets throughout the United States.

The Gryphon-CarVal Multifamily Loan Program (the "Program") is designed to advance up to 85% of the capital stack in a single execution facilitated by the Program's ability to close on balance sheet. Targeted loans range from $20 million to $75 million with competitive market pricing. Loan servicing and asset management will be retained by the joint venture.

Leading up to the announcement of the joint venture, over $150 million of multifamily loans have closed or are under a signed term sheet. The Program is primed to deploy $1.0 billion or more over the next two years.

Gryphon and CarVal will target sponsors focused on either value-add or lease-up strategies. Value-add opportunities are cash-flowing properties that require time and capital to re-position, perform renovations, improve property operations and increase rents. Lease-up strategies are newly constructed properties that require time to stabilize and season cash flows, prior to securing agency financing or selling the property.

"We believe this is a compelling time to enter the multifamily bridge loan market," said Seth Cohen, a Principal for CarVal Investors responsible for managing loan portfolio investments globally. "Our partnership with Gryphon is rooted in our shared thesis that there is a long-term need for middle income housing, particularly in growing U.S. markets." 

Paul Mullaney, Managing Director for CarVal Investors' North American Real Estate business, added, "Gryphon has built an institutional, data-driven platform with extensive multifamily lending expertise, which melds well with CarVal's investment strategy."

"We are excited to join forces with CarVal as we launch this well-capitalized and synergistic venture," said Angelo LoBosco, Managing Partner at Gryphon. "We look forward to building out the Gryphon-CarVal platform by successfully executing on our investment strategy."

Jim Hopkins, a Principal at Gryphon added, "We believe that the combination of Gryphon and CarVal will be a powerful force in the multifamily bridge loan market."

About CarVal Investors
CarVal Investors is an established global alternative investment manager focused on credit-intensive assets and market inefficiencies. Since 1987, CarVal's team has navigated through ever-changing credit market cycles, opportunistically investing $128 billion in 5,525 transactions across 82 countries. Today, CarVal Investors has approximately $10 billion in assets under management in corporate securities, loan portfolios, structured credit and hard assets. www.carvalinvestors.com

About Gryphon Real Estate Capital Partners
Gryphon is a relationship driven private lender with a primary focus on multifamily properties nationwide. Established in 2016, Gryphon has successfully leveraged its principal's respective 30-year careers in real estate operating, development and financial structuring to establish a highly respected platform within the multifamily lending niche. www.gryphonrecapital.com

SOURCE CarVal Investors

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