Silverstein Capital Partners Closes on $2B Fund

Silverstein Capital Partners closed on a $2 billion fund committed by its two existing and three new global institutional investors⁠—the latest sign that the real estate market is flush with both debt and equity capital. 

Since its inception in 2018, SCP has committed $2 billion concentrated in construction and condo inventory loans. With the announcement of its third fund, SCP has raised a total of $4 billion.

SCP focuses on providing a variety of loan types and rescue capital to borrowers on all major product types in urban markets in North America.

“This is a continuing endorsement of the relative value real estate provides in today’s market,” Lisa Knee, Partner & Chair Real Estate Services, Eisner Advisory Group, tells GlobeSt.com. “Foreign money is coming to the US again and institutional investors need to raise their real estate allocations to be back in balance due to the huge rise in equity prices. There is a lot of room for debt funds like Silverstein to provide capital more opportunistically as banks and insurance companies are more risk averse.”

Loans to Grow Through ‘Turbulent’ Conditions

It has been less than three years since SCP wrote its first loan, “so we are excited to launch our third fund with such tremendous support,” said Michael May, President of SCP. “[We use] creative financial structuring, move quickly, provide borrowers a one-stop financial solution, and lend at scale on loans we hold. Our access to Silverstein’s in-house design, development, construction, leasing, and asset management resources allows us to efficiently underwrite and bid complicated projects.”

SCP focuses on all asset types across the top-20 US markets. Some of its completed transactions to date include a $340 million whole loan for the Legacy Hotel & Residences in Miami and a $700 million whole loan for a mixed use project in Bellevue, Wash.