Los Angeles, CA (February 20, 2017) — Los Angeles-based Partners Capital, a private commercial real estate investment firm has established a joint venture with a $700 million Western U.S.-based investment management firm to launch Archway Fund, a private bridge lender that combines the resources to create a more flexible and competitive company.
The two organizations have a relationship that predates the venture. However, the venture presents opportunities to gain operating efficiencies by integrating departments which will translate into increased production. The venture also provides a scalable framework for projected production growth. Archway Fund will provide primarily first trust deed loans up to 75% LTV for transactions that cannot execute with conventional commercial real estate financing for a very wide range of reasons such as very quick closing deadlines, high vacancy rates/tenant turnover, sponsor/managing member credit issues.
Archway will provide financing for opportunistic and value-add commercial real estate transactions ranging between $2 million and $15 million and with terms of up to 24 months. Property types include investor single family residences, apartments, office, industrial and retail throughout the Western United States.
While operating under the Partners Capital umbrella, the loan production division, Partners Capital Finance, provided $80 million in loans during 2016. As part of the joint venture, the division becomes a department equipped to deploy $100 million in the 12-month period following the late February opening.