Lument Finance Trust Secures $198 Million in Multifamily Bridge Financing Expansion
- Lument Finance Trust closed over $198 million in bridge financing for seven multifamily properties across six states.
- Recent transactions include significant refinances in Olympia, Macon, and affordable housing in Miami, totaling $198 million.
- Lument has $170 million in bridge loans under application, targeting multifamily and affordable housing clients.
Lument Finance Trust Expands Bridge Financing in Multifamily Sector
Lument Finance Trust, a prominent player in the commercial real estate finance landscape and a subsidiary of ORIX Corporation USA, reports a significant achievement in closing over $198 million in balance sheet bridge financing as of December 2024. This robust funding is designed to support the lease-up, acquisition, and construction of seven multifamily properties across six states, incorporating more than 1,500 residential units. The company's strategic focus underscores a commitment to addressing the increasing demand for multifamily housing, particularly as the market adapts to evolving economic conditions.
Among the key transactions completed, Lument highlights a substantial $60 million lease-up refinance in Olympia, WA, alongside a $37 million refinance in Macon, GA. Furthermore, the company has facilitated phased lease-up refinances totaling $56 million for build-to-rent properties in Dayton and Groveport, OH. Additional refinances include $22 million allocated for affordable housing in Miami, FL, and a $17 million acquisition financing deal in Lafayette, IN. Lument also addresses the needs of specific demographic segments with a $6 million refinance for an age-restricted property in Bellflower, CA. This diverse portfolio showcases Lument's adeptness in navigating various market demands while providing essential financing solutions.
The surge in borrower interest during the fourth quarter indicates a promising outlook for Lument's bridge financing program. CEO James Flynn points to the program's success in enabling clients to achieve their strategic objectives amidst a fluctuating market landscape. Anticipating continued growth, Lument has an additional $170 million in bridge loans currently under application, expected to close in early 2025. The company’s bridge loans, which typically target amounts of $10 million and above, are primarily secured by multifamily and affordable housing properties. With interest-only, floating rates and terms ranging from six to 36 months, these loans are tailored to meet the specific needs of clients in the multifamily sector.
In addition to its recent financing activities, Lument Investment Management oversees a substantial loan portfolio, valued at nearly $1.2 billion as of September 30, 2024. Approximately 93.2% of this portfolio is collateralized by multifamily assets, reinforcing Lument's dedication to providing customized financing solutions that align with market trends and client requirements. The company's strategic initiatives in the multifamily sector position it favorably to capitalize on the expected demand surge as new constructions stabilize and market conditions evolve.
As Lument Finance Trust continues to expand its footprint in the commercial real estate finance sector, the emphasis on multifamily and affordable housing reflects a broader commitment to fulfilling the housing needs of diverse communities across the nation.