Just two months after real estate crowdfunding platform Realty Mogul launched a commercial lending division, the online marketplace has reportedly raised $250m of capital for commercial real estate debt investments.
The capital — pooled from a group of pension funds and an investment manager — is part of an expansion of the company’s commercial equity and residential lending platforms, naturally targeting larger loan amounts than the residential business.
The capital will fund bridge and senior loans as large as $25m against most property types across the US. Bridge loans will have three- to five-year terms while senior loans will stretch to seven-year terms.
“We see a sizable opportunity in this space and our larger institutional capital partners have expressed great interest in the commercial lending sector,” said Jilliene Helman, CEO of Realty Mogul.
As part of the new venture, Realty Mogul appointed Philip Block earlier this year as a senior vice president of commercial lending and Megan Goodfellow as the company’s head of credit, commercial real estate.
Block, previously a vice president of corporate finance and capital markets at Centerline Capital Group, runs the day-to-day activities and growth strategies; and Goodfellow, also previously at Centerline and earlier head of credit for the CMBS group at JP Morgan Chase, oversees the credit risk management of the platform.
First quarter financings for Realty Mogul included an apartment building in Brooklyn, New York, another in Bel Air, California, and an office building in Washington, DC.
Realty Mogul connects borrowers and sponsors to capital from accredited and institutional investors.