BLC Fund Advisors, LLC the fund manager to BLC Prime Lending Fund II, LLC is an investment manager that specializes in providing investment interests in non-consumer/commercial real estate loans made in target markets throughout the United States secured by mortgages/deed of trusts against commercial real property.
BLC Fund Advisors, LLC, through its real estate fund the BLC Prime Lending Fund II, LLC intends to invest in Senior and Senior Subordinated Mortgages/Loans originated by its affiliate Business Loan Capital, Inc. and also to use leverage provided by participant lenders and/or a senior credit facility to increase the funds lending capacity, reduce the funds cost of capital and as a means to lever the yield.
Through our three lending programs, Short-term Bridge Loans, Medium Term Whole Loans and Long Term SBA 504 Loans, the fund primarily originates secured first mortgages ranging in loan amounts from $1,000,000 to $20 Million on commercial property with an average LTV of 65%.
The fund’s originator Business Loan Capital and its management have originated over $1.5 billion in commercial real estate loans.
MARKET OPPORTUNITY & STRATEGY:
BLC Fund Advisors, LLC believes that there is a strong supply of attractive loans available in the Market, especially on owner occupied properties. Although the current lending environment has improved greatly since the economic downturn, there are still frequent dislocations in the market where credit worthy borrowers with strong equity positions in their properties have difficulty securing financing from traditional lenders in a timely manner.
Commercial Real Estate Bridge Lending continues to be one of the fastest growing sectors of the commercial real estate lending market, as banks continue to tighten their qualifications standards, and the already crowded commercial real estate investor market becomes even more competitive. This situation has created a need for prudent but more aggressive financing that can lend outside the box and consider a viable exit strategy in the decision making process.
It is estimated that over $30 billion of CMBS (Commercial Mortgage Back Securities) loans will mature in the next 18 months, this will contribute significantly to the increase in need to refinance debt with quick and certain execution to avoid default. The ability to close loans quickly is not available by CMBS and traditional bank lenders.
BLC Fund Advisors strategy is to identify real estate lending transactions that institutional lenders are unable to consider for various reasons, including timing, capital constraints, geography and property type to name a few. BLC Fund Advisors believes the advent of shadow banking and non-banking following the codification of Dodd Frank and Basel III regulations being imposed on banks, as well as CMBS retention requirements, has increased the market share capable of being captured by the fund. LTV and repayment ability will be the primary consideration for qualifying loans. BLC Fund Advisors goal is to create a portfolio of loans at attractive LTV’s with borrowers who, based on their need for private financing, are willing to pay attractive interest rates for such financing.
Specific property locations will be targeted on a micro market level with particular focus on assessing market depth, lease rates, vacancy, absorption, new construction, income levels, demographics and population and job growth.