Lument Closes $198 Million in Multifamily Bridge Loans in December 2024

Rhea-AI Summary

Lument closed over $198 million in balance sheet bridge financing in December 2024, supporting seven multifamily properties across six states. The financing package includes lease-up refinancing, acquisitions, and construction support for more than 1,500 units, with individual loans ranging from $6 million to $60 million.

Notable transactions include a $60 million lease-up refinance in Olympia, WA, and a $37 million refinance in Macon, GA. The company reports an additional $170 million in bridge loans under application, expected to close in early 2025.

Through Lument Investment Management, the company manages a $1.2 billion loan portfolio for Lument Finance Trust (NYSE: LFT), with 93.2% collateralized by multifamily assets as of September 30, 2024. Their bridge program offers interest-only, floating-rate loans from $10 million upward, with terms ranging from 6 to 36 months.

Positive

• Closed $198 million in bridge financing across seven properties in December 2024
• Additional $170 million in bridge loans under application for early 2025
• Manages substantial $1.2 billion loan portfolio with 93.2% in multifamily assets
• Strong Q4 2024 borrower interest increase

Negative

• None.

Insights

Financial Analyst

The $198 million in bridge loan closings coupled with an additional $170 million pipeline demonstrates robust demand in the multifamily sector despite higher interest rates. The portfolio's strategic focus on lease-up and construction financing addresses a critical market need as new developments transition to stabilization.

The geographic diversification across six states and varied property types (traditional multifamily, BTR, affordable and age-restricted) indicates strong risk management. The 93.2% concentration in multifamily assets within LFT's $1.2 billion portfolio suggests a defensive positioning, as multifamily historically demonstrates resilience during economic uncertainty.

The floating-rate nature of these loans provides natural interest rate protection, while the interest-only structure maximizes cash flow for borrowers during the critical lease-up period. The 6-36 month terms with extension options offer flexibility for project completion and stabilization timelines.

Real Estate Market Analyst

This lending activity reveals several key market trends: First, the significant volume in build-to-rent (BTR) properties in Ohio reflects the growing institutional interest in this emerging asset class. BTR communities are increasingly attractive as they combine the operational efficiencies of multifamily with the appeal of single-family living.

The $60 million refinance in Olympia, WA and $37 million in Macon, GA, suggests strong fundamentals in secondary markets, where rent growth and occupancy have remained resilient. The $22 million affordable housing refinance in Miami indicates continued institutional focus on the affordable sector, which typically maintains high occupancy regardless of market conditions.

The increased Q4 borrower interest and substantial pipeline suggest market participants are adapting to the higher rate environment, potentially indicating a thaw in transaction activity as buyers and sellers reach price consensus.

These latest closings support a wide range of business plans. An additional $170 million of bridge loans are currently under application and set to close in early 2025.

NEW YORK, Jan. 16, 2025 /PRNewswire/ -- Lument announced today that it closed more than $198 million in balance sheet bridge financing in December 2024. The loans facilitate the lease-up, acquisition, and construction of seven multifamily properties across the country. Together, the loans support more than 1,500 units across six states, as summarized below:

• $60 million lease-up refinance for a multifamily property in Olympia, WA
• $37 million lease-up refinance for a multifamily property in Macon, GA
• $31 million phased lease-up refinance for a build-to-rent (BTR) property in Dayton, OH
• $25 million phased lease-up refinance for a build-to-rent (BTR) property in Groveport, OH
• $22 million timing refinance for an affordable housing property in Miami, FL
• $17 million lease-up acquisition financing for a multifamily property in Lafayette, IN
• $6 million timing refinance for an age-restricted multifamily property in Bellflower, CA

In addition to a strong set of closings at year-end, Lument saw borrower interest ramp up significantly during the fourth quarter. An additional $170 million in bridge loans are under application and expected to close in the first two months of 2025.

"Lument's bridge program has proven once again to be a highly effective and efficient way to support our clients' strategic objectives during an evolving market," said James Flynn, chief executive officer of Lument. "We expect increased demand as the current wave of new construction transitions towards stabilization, as we're able to support those assets with a seamless transition into permanent financing."

Lument's bridge program targets loans $10 million and up that are secured by multifamily, affordable housing, or seniors housing properties. These interest-only, floating-rate loans range from six to 36 months with extension options and customized yield maintenance periods.

Lument Investment Management, LLC serves as external manager and advisor to Lument Finance Trust, Inc. (NYSE: LFT), a publicly traded REIT focused on investing in, financing, and managing a portfolio of commercial real estate debt investments. As of September 30, 2024, Lument Investment Management manages a nearly $1.2 billion loan portfolio consisting of floating-rate debt, of which approximately 93.2% was collateralized by multifamily assets, on behalf of Lument Finance Trust. 

About Lument

Lument, a subsidiary of ORIX Corporation USA, is a national leader in commercial real estate finance and delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, seniors housing, and healthcare real estate. Lument offers Fannie Mae, Freddie Mac, FHA, USDA, and balance sheet bridge financing, as well as a full range of capital markets lending products. In addition, Lument provides a suite of real estate advisory solutions including investment sales, investment banking, and investment management. The company has over 600 employees in over 30 offices across the United States.

Securities, investment banking, and advisory services are provided through Lument Securities, LLC, member FINRA/SIPC. Lument Investment Management, LLC, is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit www.lument.com. 

Media Contact:
Tyler Howard
tyler.howard@lument.com 

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SOURCE Lument

FAQ

How much did Lument (LFT) close in bridge financing for December 2024?

Lument closed over $198 million in balance sheet bridge financing in December 2024, supporting seven multifamily properties across six states.

What is the size of Lument Finance Trust's (LFT) loan portfolio as of September 2024?

As of September 30, 2024, Lument Investment Management manages a nearly $1.2 billion loan portfolio for LFT, with approximately 93.2% collateralized by multifamily assets.

What are the terms of Lument's (LFT) bridge loan program?

Lument's bridge program offers interest-only, floating-rate loans of $10 million and up, with terms ranging from 6 to 36 months, including extension options and customized yield maintenance periods.

How much additional bridge loan financing does Lument (LFT) expect to close in early 2025?

Lument has $170 million in bridge loans under application, expected to close in the first two months of 2025.

What was Lument's (LFT) largest bridge financing deal in December 2024?

Lument's largest bridge financing deal in December 2024 was a $60 million lease-up refinance for a multifamily property in Olympia, Washington.