Flatiron Realty Capital, LLC has partnered with O'Connor Capital Solutions (OCS), a private credit strategy under UBS O'Connor, to launch a co-investment strategy focused on residential transition loans (RTL).
Residential transition loans (RTLs) are short-term, first lien loans used for financing renovation and construction projects on residential properties.
The collaboration between Flatiron Realty Capital and OCS aims to leverage Flatiron's pipeline and favorable market conditions. OCS is expected to provide a capital infusion of up to $100 million, supplemented by co-invested equity from Flatiron and its owners, as well as mortgage funding facilities.
This strategic investment is projected to expand Flatiron's managed loan portfolio to at least $600 million. The partnership comes at a well-timed period of increased activity in the real estate sector, driven by low interest rates and a strong housing market.
OCS, with its expertise in credit and credit-like investments, is well-positioned to capitalize on the growing demand for RTLs.
Flatiron Realty Capital, founded in 2018, offers alternative financing solutions tailored to the needs of real estate developers and investors.
Janney Montgomery Scott LLC served as the sole financial advisor to Flatiron Realty Capital in this transaction. Janney's expertise in the financial services sector makes it a valuable partner for firms navigating capital raising and investment strategies.
The collaboration between Flatiron Realty Capital and UBS O'Connor represents a strategic alignment of resources and expertise, enhancing Flatiron's ability to meet the financing needs of its clients and solidifying its position as a leader in the real estate finance industry.