Term Sheet

March 9, 2023

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Building bridges

Experienced bridge lenders, UC Funds, are looking at this current market as an opportunity to relaunch UCGO.  UC Funds aims to fill the financing gap left by a diminished senior lending field with a March 1 relaunch of its bridge lending program, UCGO. Bridge lending, gap funding and other short-term debt measures aimed at alleviating financing pressures have continued gaining favor among alternative lenders looking for market share while some banks stay sidelined.

Ross Pemmerl, chief credit officer at UC Funds, told Real Estate Capital USA this week how cost-effective debt capital has been difficult for borrowers to achieve, and the firm sees an opportunity in 2023 and 2024 for widening its presence with more bridge loans. “What we see as far as an opportunity for UC Funds and the UCGO product is really targeting those assets that either have cashflow or a clear path to cashflow within the next six to 10 months,” Pemmerl said. A large portion of that opportunity is in construction deals that are approaching completion or recently completed, he added.

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