Sharestates Closes New $100 Million Warehouse Debt Facility with Ares Management

Rhea-AI Summary

On March 3, 2022, Sharestates announced the closing of a new $100 million warehouse line of credit led by Ares Management Corporation to enhance its lending capabilities. This facility complements existing credit and positions Sharestates to support its growing loan origination volume, which has surged over 40% quarter-over-quarter and nearly doubled year-on-year. With over $3 billion in origination volume in 2021, the company aims to continue expanding its presence in residential real estate financing.

Positive

• Secured a new $100 million warehouse credit line, increasing borrowing capacity.
• Loan origination volume grew over 40% quarter-over-quarter and nearly doubled year-over-year.
• Surpassed $3 billion in total origination volume in 2021, indicating strong demand in the market.

Negative

• None.

GREAT NECK, N.Y., March 3, 2022 /PRNewswire/ -- Sharestates, a leading real estate technology platform designed to support and accelerate the redevelopment of residential housing, recently closed a new $100 Million warehouse line of credit led by funds managed by the Credit Group of Ares Management Corporation ("Ares") to capitalize on demand from borrowers. This additional warehouse capital complements existing credit facilities and increases the Company's overall borrowing capacity to better support the Company's growing loan origination volume.

"With the successful launch of our National Sales Expansion strategy in Q4-2021, Sharestates has seen early success growing loan origination volume by over 40% quarter-over-quarter and nearly double year-over-year for 2021. Our outlook for 2022 remains optimistic and this new credit facility will help Sharestates continue to ramp up in support of our aggressive growth targets." - Stephan Leccese, COO.  

This move is part of the Company's broader expansion strategy that has recently added additional staff, senior management, an independent board member, and expanded our geographical presence across the nation. 

With the new debt facility, Sharestates is well-positioned to continue scaling its loan originations to real estate developers that purchase, refinance, and rehab single-family residential properties as well as small to mid-sized multifamily projects across the country. The company surpassed $3 Billion in total origination volume in 2021 and remains bullish on residential housing development this year. Sharestates intends to continue to expand credit for borrowers and manage credit risk while also expanding access to residential real estate debt for its investors.

"We are excited to work with Ares as our origination volume grows to fill the void in real estate financing left by traditional bank lenders. We appreciate Ares' support as we scale our business to meet the increasing capital demand from our borrowers." - Allen Shayanfekr, CEO.

About Sharestates 

Sharestates is one of the fastest-growing national private lenders focused on non-owner-occupied residential and commercial properties. The company creates customized lending solutions for real estate investors and developers. Sharestates has successfully funded over $3 billion in projects nationwide and has the broadest loan programs available in the market with competitive pricing.

Sharestates funds loans from $100k to $20mm on residential (SFR 1-4), multi-family, mixed-use, and commercial properties. Its loan programs include residential bridge, fix & flip, new construction, portfolio, and rental loans. As a partner to its developers, Sharestates manages the servicing of all loans it originates through successful repayment to ensure the needs of its developers are met throughout the loan lifecycle. 

Sharestates was founded by real estate veterans and its success is attributed to a strong leadership team, ease of use, sensible underwriting practices, and a relationship-focused lending strategy. Sharestates partners with direct borrowers and brokers.

Sharestates is one of many related real estate businesses managed by the executive team that exists to accelerate the redevelopment of residential housing. Collectively, the unique capability of each related business allows Sharestates to provide an end-to-end solution for its customers. In doing so, it creates a more positive borrower experience, better controls credit risk, and successfully monitors the loan through its entire lifecycle.

To learn more visit www.Sharestates.com.

About Ares Management Corporation

Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate, and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of December 31, 2021, Ares Management Corporation's global platform had approximately $306 billion of assets under management, with approximately 2,100 employees operating across North America, Europe, Asia Pacific, and the Middle East. For more information, please visit www.aresmgmt.com.

About Alternative Credit

Ares' Alternative Credit strategy focuses on lending to and investing in assets that generate contractual cash flows and fills gaps in the capital markets between credit, private equity and real estate. Ares Alternative Credit targets investments across the capital structure in specialty finance, lender finance, loan portfolios, equipment leasing, structured products, net lease, cash flow streams (royalties, licensing, management fees), and other asset-focused investments. Co-Headed by Keith Ashton and Joel Holsinger, Ares Alternative Credit leverages a broadly skilled and cohesive team of approximately 50 investment professionals as of December 31, 2021. Aligning Ares' investment activities with its societal impact, Ares and Alternative Credit portfolio managers have committed to donating a portion of carried interest from certain Alternative Credit funds to global health and education charities.

Media Contact:

Justin Peterson 
SVP of Marketing 
212-201-0750 
justin@sharestatesmail.com 

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SOURCE Sharestates

FAQ

What is the significance of Sharestates' $100 million warehouse credit line?

The $100 million warehouse credit line will enhance Sharestates' lending capabilities, enabling them to better support an increased volume of loan origination.

How has Sharestates' loan origination volume changed recently?

Sharestates has experienced a loan origination volume growth of over 40% quarter-over-quarter and nearly double year-over-year.

What was Sharestates' total origination volume in 2021?

Sharestates surpassed $3 billion in total origination volume in 2021.

Which company led the financing for Sharestates' new credit facility?

The financing for Sharestates' new credit facility was led by Ares Management Corporation.

How does Sharestates plan to utilize the new warehouse credit line?

Sharestates intends to use the new warehouse credit line to support its aggressive growth targets and capitalize on rising demand from borrowers.