Smith Hill Capital, ECI Group, InterVest Form $250M Multifamily Lending Platform
The platform has already begun to target deals in Southeastern states and Texas
By Brian Pascus October 15, 2024 7:06 pm
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A trio of real estate investment firms has formed a $250 million credit and equity platform.
Smith Hill Capital, ECI Group and InterVest have opened a new multifamily lending platform that will specialize in first mortgages, mezzanine loans and preferred equity for residential assets.
The loans will range between $15 million and $100 million and target acquisitions, refinancings and new construction projects.
A JLL Capital Markets team of Peter Rotchford, Brett Rosenberg and Clayton Ross advised the principals on the formation of the new lending vehicle.
ECI Group CEO Seth Greenberg said in a statement that the new platform will help his firm continue to “own, develop [and] manage” multifamily properties even as it provides financing solutions. Greenberg added that the platform has already begun to target deals in the Southeastern United States, particularly in Texas.
“ECI is excited to partner with Smith Hill and InterVest to provide institutional-quality multifamily owners and operators with critical funds for refinancings, new development, construction and acquisitions,” said Greenberg.
Smith Hill Managing Principal Brendan McCormick said in a statement that his firm believes there is “a large opportunity” for new credit solutions providers to enter into the multifamily space. He praised the experience of ECI as a multifamily owner and operator and called InterVest “a premier investment manager” within real estate structured credit.
In another statement, InterVest Senior Vice President Rob Rothschild said that the surging demand for both development capital and capital for refinancings fits well with his firm’s desire to specialize in “structuring tailored debt and equity solutions.”
“InterVest is excited to partner with ECI and Smith Hill to provide institutional investors with the capital needed to accelerate growth in the multifamily sector,” he said.
All three firms have been busy as of late. Smith Hill Capital recently provided a $57 million first-mortgage loan on the 305-key Embassy Suites by Hilton Nashville Airport.
Earlier this year, InterVest announced a strategic partnership with Builders Capital, in which the real estate investment firm promised to invest $500 million in Builders while simultaneously acquiring a minority interest. InterVest has completed $19 billion in CRE transactions since its formation in 1999.
ECI Group — a family-owned firm that opened in 1969 as Engineered Concepts Incorporated — boasts more than 200 employees and holds a portfolio of 6,000 residential units, mostly in Georgia and Florida, according to the firm’s website.
Brian Pascus can be reached at bpascus@commercialobserver.com
