Home Hotel management Madison Realty Capital and Newbond Holdings Launch Homeowner Lending Platform – Business Watcher

Madison Realty Capital and Newbond Holdings Launch Homeowner Lending Platform – Business Watcher


Capital Real Estate Madison and New obligations are joining forces in a new joint venture partnership to create and purchase home loans across the United States, Commercial Observer may first report.

The two companies announced on Monday the launch of Madison Newbond, an institutional lending platform that will provide senior mortgages, mezzanine loans and senior equity to hotel owners and developers nationwide. The strategic partnership will begin with an initial lending capacity of around $ 500 million in hopes of expanding its scale as a tool to rejuvenate a sector still recovering from the peak of the COVID-19 pandemic.

Josh zegen, managing director and co-founder of Madison Realty Capital, said the platform will build on his company’s existing lending network while leveraging the hospitality expertise of Newbond’s co-founders. Neil luthra and Vann Avedisian. Prior to founding Newbond in early 2021, Luthra and Avedisian were directors of a hotel management company Highgate for 10 years.

“Hospitality lending has always been part of what we’ve done over the past 17 years of our business, but we’ve always known to align ourselves with a group of operational experts like Neil, Vann and their team at Newbond would improve our platform, ”Zegen says. “They really understand the nuances of the hospitality industry.”

Zegen added that there are opportunities in the hospitality lending industry compared to the pre-pandemic era due to the risk premium attached to the industry and the need for more flexible capital due to certain troubled transactions.

“It’s a business that we’ve all been looking at, and it’s also a good time, we think hospitality is still lacking in capital and therefore there are some very exciting opportunities,” Zegen said.

Neil Luthra is co-founder of Newbond Holdings. Photo: Newbond Holding

Luthra and Avedisian have completed over $ 15 billion in debt and equity deals as a team tackling deals across all major property categories, with a particular focus on the hospitality industry. Newbond is a vertically integrated real estate private equity firm.

“Due to the COVID pandemic, we are seeing opportunities to deploy significant capital with borrowers who, to date, have just extended their outstanding loans, but will need longer term financing solutions to execute their plans. recovery and longer term business. In addition, we are also seeing lenders wanting to swap their hotel debt positions, ”Luthra said. “We have an active equity business and it was a great way to launch the debt platform with a partner in Josh, Brian [Shatz] and the Madison team we trust.

The Madison Newbond platform will serve a wide range of borrowers, from high-end resorts to limited-service hotels. Financing programs will target transitional loans and construction loans for initial developments in major metropolitan markets.

Madison, a vertically integrated real estate private equity firm, has completed more than $ 16 billion in financing since its inception in 2004. Some of Madison’s recent notable deals include a $ 105 million loan to Strong partners for the acquisition and modernization of Four Seasons Hotel in MiamiShe also made a loan of $ 210 million to Strong partner for the construction of the Four Seasons Hotel and Fort Lauderdale private residences.

Andrew Coen can be contacted at [email protected]


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