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Broadmark Realty Capital enters the mezzanine lending business

Broadmark real estate capital is expanding its product offering to include mezzanine loans to capture changing market conditions, Commercial Observer can first report.

The alternative lender recently made its first mezzanine investment with a 24-month, $10 million loan to NW Gilman Holdings‘ $57.2 acquisition of Town and country squarea 16-acre shopping center in Issaquah, Washington, east of Seattle. Brian Wardwho resumed as CEO of Broadmark in March, said the move was intended to position the company to seize opportunities for middle-market borrowers who will need more short-term debt options in a higher interest rate environment. students.

“Our view is that demand will increase as the broader market is disrupted,” Ward told CO. “We are establishing Broadmark as an opportunistic, fast-response vendor.”

CBREit is Dino Christophilis and Daniel Tibeau arranged the financing, which closed in 10 days.

Located on 1185 Gilman Boulevard Northwest near the new Costco corporate headquarters at Interstate 90, Town & Country Square is fully leased with a mix of tenants that includes hobby hall, 425 Fitness and Ritual Aid.

While around 70% of Broadmark’s portfolio is in the multi-family and residential sectors, Ward stressed that he was looking to secure loans for all types of properties nationwide, with Town & Country Square proving attractive. given its location coupled with strong sponsorship. Broadmark, which was founded in 2010, typically targets loans between $5 million and $75 million.

Broadmark also recently completed an acquisition loan of nearly $25 million to Free storage for purchasing a self-storage wallet across Georgia and Tennessee. The 95.6% occupied portfolio consists of eight properties representing 370,000 square feet of leasable space.

Both deals coincided with Broadmark’s Thursday unveiling of a new logo and updated website. Ward said he would like to expand significantly over the next two years beyond his $1.5 billion capital already invested since the lender was founded in 2010.

“We want to make a lasting statement as we plant our flag,” Ward said. “We want to be a national supplier.”

Andrew Coen can be reached at [email protected].

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