Before the pandemic, Money360 closed $50 million to $75 million in deals each month. Now, they are doing $100 million-plus.
A conservative bank lending market has become a signature characteristic of the pandemic. Once the pandemic struck, traditional lending markets tightened, and since they have been selective. For non-traditional lenders like Money360, the event has created opportunity. Before the pandemic, Money360 closed $50 million to $75 million in deals each month. Now, they are doing $100 million-plus.
“There is tremendous lending opportunity to refinance properties and provide future funding needs as borrowers execute on their business plan,” Tom MacManus, president of Money360, tells GlobeSt.com. “Banks have pulled back from making small- and mid-sized CRE loans in secondary markets and many lenders are still out of the market. When you couple this with the growing awareness of non-bank direct lenders, it equals great opportunity for Money360 to step in and assist owners of self-storage, multi-family, office, industrial and select retail properties that are in need a $5 million to $30 million bridge loan.”
In addition to picking up new business, Money360’s existing portfolio continued to perform well. While some clients asked for extensions, overall the firm has been able to field any significant issues. “CRE loan maturities did not pause with COVID, so although there have been a lot of short-term maturity extensions over the past seven months, these loans still need to find new financing,” says MacManus. “Our portfolio has held up extremely well, this is a testament to both the expertise and strength of our borrowers and of our credit, underwriting, asset management and back-office team. Our success stems from having the right culture that translates into solving problems for and working with borrowers.”
MacManus was recently named president of the company, and in the role, he plans to focus on the front end of the business and develop new products for borrowers. “As a more tenured leader in the industry with over 30 years of experience, I have been able to build many valued relationships in CRE lending, mortgage banking, real estate investment banking/capital markets and related services,” he says. “I am energized about leveraging those relationships in a very productive way for us to not only close $100 million-plus per month, but to also actively participate in developing and/or pursuing new initiatives that will assist borrowers. While I will be initially focused on sales and the front end of the business, my experiences are much broader from the front end through the back end. Pursuing new products, programs and or assisting in developing other areas benefitting our stakeholders will be a win-win.”
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