Trinity Street Capital Partners has expanded its non-recourse construction and permanent finance program, increasing maximum loan amounts to $250 million while offering up to 85% of cost financing for certain property types. The commercial real estate finance company's enhanced program now provides non-recourse construction loans for experienced owners and investors, with multifamily, industrial and self-storage properties qualifying for up to 85% of cost financing, while office, retail and hospitality properties can access up to 65% of cost. This expansion represents a significant increase in lending capacity that could have substantial implications for commercial real estate development nationwide.
The expanded program targets the top 200 metropolitan statistical areas in the United States and features interest rates starting at 30-day LIBOR plus 2.50%. According to company representatives, the non-recourse construction lending program has gained significant traction in recent months as traditional banks continue to express concerns about general economic conditions or maintain overexposure to certain property types and loan categories. This trend highlights the growing importance of alternative lenders in filling critical financing gaps within the commercial real estate market.
The timing of this expansion comes as the real estate industry navigates interest rate pressures from the Federal Reserve. While recent rate cuts have provided some relief, the benchmark 10-year Treasury rate has not contracted to the extent the real estate sector had anticipated. This environment has created opportunities for alternative lenders like Trinity Street Capital Partners to provide much-needed capital to developers and investors who might otherwise struggle to secure financing through traditional banking channels.
Trinity is now securing major deals nationwide by integrating its non-recourse construction lending programs with both bridge and permanent finance offerings. The firm's permanent program currently originates loans with rates starting at the 10-year US Treasury plus 150 basis points, with loan-to-value ratios reaching up to 75% of property value. This comprehensive approach allows developers and investors to secure financing throughout the entire project lifecycle from a single source, streamlining what has traditionally been a fragmented financing process.
The company specializes in non-recourse, high-leverage senior and subordinate debt and preferred equity investments starting at $10 million. Trinity Street Capital Partners focuses on income-producing properties including anchored retail, office, industrial, multifamily, manufactured housing communities, and self-storage facilities located throughout the United States. Additional information about the firm's services is available at https://www.trinitystreetcp.com.
The expansion of Trinity's lending capacity comes at a critical juncture for commercial real estate development, particularly as construction financing remains constrained in certain markets and property sectors. By offering higher loan amounts and more flexible terms than many traditional lenders, the firm positions itself to capitalize on development opportunities that might otherwise stall due to financing challenges. This increased lending capacity could potentially stimulate new construction activity in markets where development has been hampered by limited access to capital, potentially driving economic growth and job creation in local communities across the country.
