Three South Florida real estate companies announced this week that they have formed a $300 million joint venture to provide mortgage loans to nontraditional real estate buyers.
Pebb Capital, GPC Truss and Yale Mortgage announced Monday that they formed Pebb Yale Truss Lending. The fund has already begun loan closings for about 20 percent of the units at Echo Brickell, a luxury condominium in Miami.
The three firms said they formed Pebb Yale Lending as a speciality lending company to provide "reasonably priced term lending to investor buyers of condos." The newly formed company said it is an alternative for lending to foreign nationals, who may otherwise face higher interest rates and a difficult application process.
Pebb Yale Lending said it works with condominium developers to offer non-recourse loans – a type of loan secured by collateral – to condo buyers and investors. In addition, the company said it offers customizable loans with rates as low as 6.95 percent for a three-year loan.
“We are very excited to deliver this lending product and provide clearly needed liquidity for contract purchasers of Miami’s many condominium buildings being delivered over the next few years,” said Pebb Yale Truss Lending founder Todd Rosenberg, managing principal with Pebb Capital. “Current lending options for nontraditional condominium buyers are limited to the point of being prohibitive."
GPC Truss partner Jonathan Ghitis added: “As a South American family, we are well-aware of the challenges foreign nationals encounter when financing their investment purchases. We want South Florida to continue to be perceived as a fantastic place to do business for U.S. citizens and foreign nationals alike. "
Pebb Yale Lending is initially focused on South Florida, but said it plans to expand into other major markets nationwide.