Columbia Pacific Advisors has launched the Columbia Pacific Recovery Fund to provide capital to real estate owners and developers affected by COVID-19, company executives announced.
The equity-based platform’s first investment is a $39.1 million, 36-month bridge loan for 68-70 Spring Street, a new 24,357-square-foot mixed-use residential property in SoHo, New York. The owners will use the funds to support lease-up of the eight-story luxury rental and retail building, which includes 10 apartments ranging from two-bedroom, two-bath units to a penthouse with three bedrooms and three baths.
“We are pleased to provide the first loan through the Columbia Pacific Recovery Fund for 68-70 Spring Street in SoHo, which is ideally located near one of the strongest retail corridors in New York City,” said Eric Jordan, Senior Vice President of Real Estate Lending at Columbia Pacific Advisors. “We believe the capital provided will enable the owners to lease up this highly desirable property as market conditions continue to improve.”
Columbia Pacific Advisors created the Columbia Pacific Recovery Fund with a private capital raise to assist with special situations involving a recent imbalance between debt and equity, and which can be solved with interim financing and more time. These include overleveraged real estate assets that require an upfront loan, with additional capital provided as needed over a two- to five-year period.
“As a fully capitalized lender, we are well positioned to provide real estate owners and developers with the resources and time they need to navigate the current environment, as well as position themselves for success post-COVID,” said Billy Meyer, Managing Director of Real Estate Lending at Columbia Pacific Advisors.
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