Banks Put Reins On Lending Leaving Developers Seeking Alternate Financing

As an increasing number of developers are finding it difficult to secure loans from banks and other traditional lenders, many are turning to alternative funding sources to keep their projects alive. Max Benjamin Partners of Beverly Hills is filling the niche.

Beverly Hills, United States - December 5, 2023 /PressCable/ —

As an increasing number of developers are finding it difficult to secure loans from banks and other traditional lenders, many are turning to alternative funding sources to keep their projects alive. On the vanguard of this trend is Max Benjamin Partners (“MBP”), a commercial real estate investment bank in Beverly Hills, that is on the forefront of commercial real estate finance. MBP specializes in both debt and equity placement and provides some of the most creative and efficient capital solutions for commercial real estate developers and investors. The firm is run by Max B. Mellman, a dynamic leader who is growing MBP at an ambitious pace.

According to the National Association of Home Builders, 71.7% of banks have imposed stricter guidelines for construction and land development loans, while 63.3% of banks tightened standards on loans secured by multifamily properties in the second quarter of this year compared with last.

“Given the tightening of credit by traditional lending institutions, debt funds, private investors and insurance companies have emerged as the go-to source for capital and reaping the benefit,” says Mellman, who started MBP and in 2018. “A great number of developers in our industry who’ve been solely reliant on their relationship bank are looking elsewhere to capitalize their projects. This creates the need for a seasoned advisor more than ever.”

MBP has been able to help developers all across the country complete their projects including:

SAN DIEGO, CA — MBP helped a developer secure a $17.4 million bridge loan (with a 90% loan to cost) for a student housing project near SDSU campus. The loan was used to fully stabilize the property and allow additional rent growth for this year. MBP is currently helping the developer secure additional funding to build phase two of student housing.

EUGENE, OR — MBP secured a $33,900,000 loan to complete the final phase of a single-family home project (186 homes, priced between $800,000 - $1.2 million) that the developer couldn’t get elsewhere.

HOUSTON, TX — MBP helped a developer of 25 homes priced $350k- $475k in Mission, TX (350 miles south of Houston) secure a $9 million loan needed to complete the project after the bank refused to lend additional funds.

“Developers and others seeking to take out loans are in desperate need of alternate forms of funding that may require a 'fine touch' as deals become harder and harder to capitalize in today’s economy. Max Benjamin Partners specializes in this area and, as a result, we’re busier than ever,” adds Mellman. “Our sources are diverse and include family offices, private equity groups, hedge funds, and other non-traditional lenders.”

Max Benjamin Partners is a prominent real estate investment bank that specializes in capitalizing commercial real estate developments and acquisitions of all asset classes. All potential investment opportunities are carefully vetted by in-house experts to ensure that all parties have the expertise, financial strength and integrity to complete each deal. The firm currently has more than $300,000,000 of single-family residential projects in the works. www.mbpartners.com

****

Contact Info:
Name: Max B. Mellman
Email: Send Email
Organization: Max Benjamin Partners
Address: 8447 Wilshire Blvd Suite 400, Beverly Hills, CA 90211, United States
Phone: +1-310-773-4938
Website: https://www.mbpartners.com/

Source: PressCable

Release ID: 89115023

If you come across any problems, discrepancies, or concerns related to the content contained within this press release that necessitate action or if a press release requires takedown, we strongly encourage you to reach out without delay by contacting [email protected]. Our committed team will be readily accessible round-the-clock to address your concerns within 8 hours and take appropriate actions to rectify identified issues or support with press release removals. Ensuring accurate and reliable information remains our unwavering commitment.