Pender Capital Achieves Strong Results in Real Estate Fund
Pender Capital's Year-End Success in Real Estate Financing
Pender Capital, a leader in short-term, senior secured commercial bridge loans, closes out the year strongly with impressive deal flow in the Pender Real Estate Credit Fund. With a total of 37 active loans and an impressive amount of $504.1 million financed, the portfolio maintains a favorable loan-to-value ratio of 62.39%, against an estimated asset value of $833.5 million.
Strong Demand for Financing
During the last quarter of the year, Pender Capital experienced remarkable activity, receiving 193 financing requests totaling $2.9 billion. Despite the high volume of requests, the company managed to close two significant transactions worth $11 million. What's more encouraging is that the fund reported no missed or delinquent payments, a testament to the quality and reliability of its loans.
Managing Capital Constraints
Cory Johnson, CEO of Pender Capital, emphasized that while the numbers are promising, funding levels could have been even higher if not for current capital constraints. He noted that the firm had to turn away several lucrative deals due to restrictions, but expressed optimism for future origination activity as these constraints are expected to ease.
Portfolio Growth and Strategy
Throughout the year, Pender Capital successfully closed 15 loans, amassing an impressive total of $245.4 million. The firm strategically launched the Pender Real Estate Credit Fund in April 2023 and has since made it available on major trading platforms like Schwab and Fidelity in 2024, widening access to a broader range of investors.
Targeting the Right Market
The Fund's mission is to navigate through a favorable investment landscape marked by reduced lending options and a rising demand for short-term loans. Pender Capital is focused on originating lower middle market, short-term bridge loans secured by senior collateral in commercial real estate across the desirable Sunbelt regions and other key areas of the U.S.
Investment Accessibility
One of the highlights of the Pender Real Estate Credit Fund is its inclusive investment structure, which has no accreditation requirements and a minimum investment of just $2,500. This approach has attracted new capital from wealth management and financial advisors, allowing them to engage with lower investment thresholds.
About Pender Capital
Pender Capital positions itself as a niche investment manager mainly focused on commercial real estate credit opportunities. The firm aims to provide robust capital solutions to property investors while ensuring investors can enjoy appealing risk-adjusted returns. With over $1.37 billion in originated commercial real estate credit and an asset value exceeding $2.23 billion as of late 2024, Pender Capital continues to make impactful strides in the market.
Frequently Asked Questions
What is Pender Capital's primary investment focus?
Pender Capital specializes in short-term, senior secured commercial bridge loans, aiming to support borrowers in commercial real estate.
How many loans did Pender Capital close in 2024?
In 2024, Pender Capital successfully closed 15 loans amounting to $245.4 million.
What was the total value of financing requests received?
The company received financing requests totaling $2.9 billion in the last quarter of 2024.
Is there a minimum investment requirement for the Pender Real Estate Credit Fund?
Yes, the Fund requires a minimum investment of $2,500 with no accreditation needed.
Which trading platforms feature the Pender Real Estate Credit Fund?
The Fund has been added to major platforms such as Schwab and Fidelity for accessibility to investors.
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