HOUSTON—Aiming to fill a void in capital markets for single-family developers and home builders, PMB Capital Investments has formed PMB Lending, a discretionary pool of capital focused on lending to residential developers with a target of up to $100 million in loans. PMB Lending will provide non-recourse financing with advance rates of up to 75 to 80% of the cost for residential development projects in major Texas markets.
“The major markets in Texas have a dramatic shortage of single-family residential lots that need to be addressed. According to market research, record job and population growth have resulted in the major Texas housing markets being under supplied by over 200,000 homes,” said Matt Mildren, partner at PMB Capital. “Further limiting new housing supply, traditional banks are facing increased regulatory scrutiny and as a result, are pulling away from single-family developments. PMB Lending will allow us to work with many qualified developers and builders to provide capital to help address the shortage in available finished lots.”
PMB was founded on the premise that job growth and population growth in Texas will lead to real estate opportunities in all product types. A lending platform is a natural way to invest more capital in the Texas housing market, says PMB.
“We are excited to launch this new platform and start making loans. The initial response from developers and builders has been very strong,” said Taylor Baird, partner at PMB Capital Investments. “Our value proposition is non-recourse financing with attractive advance rates up to 75 to 80% of cost and an efficient closing process. Developers often spend a significant portion of time raising debt and equity capital to finance projects. PMB Lending provides a holistic financing solution and fast execution, allowing developers to spend more time developing lots and executing their business plan.”
PMB Capital Investments is a privately held real estate investment and development company based in Dallas.
“We have been on the other side of the table and understand the challenges that developers face arranging the capital stack for residential development,” Mildren tells GlobeSt.com. “PMB Lending is our effort to simplify the process and free developers up to focus on other aspects of their projects–from initial design through sales.”
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
