Trinity Street Capital Partners Expands Non-Recourse Construction Lending Program Amid Tight Credit Conditions
Trinity Street Capital Partners is expanding its non-recourse construction lending program to provide up to $250 million in financing, addressing the credit gap left by traditional banks that remain cautious about economic conditions and property exposures.
Trinity Street Capital Partners has announced a significant expansion of its non-recourse construction and permanent finance program, increasing maximum loan amounts to $250 million while offering up to 85% of cost financing for specific property types. The full-service real estate finance company's enhanced program now provides non-recourse construction loans for multifamily, industrial, and self-storage properties at up to 85% of cost, while office, retail, and hospitality properties qualify for up to 65% of cost financing.
The timing of this expansion comes as traditional banks continue to express concerns about general economic conditions or find themselves overexposed to certain property types and loan categories. According to a company spokesperson, Trinity Street's non-recourse construction lending program has gained considerable traction in recent months precisely because of this credit gap in the market. The program will focus on the top 200 metropolitan statistical areas across the United States, with interest rates starting at 30-day LIBOR plus 2.50%.
Current economic pressures, including President Trump's push for Federal Reserve rate cuts, have created a complex environment for real estate financing. While the recent 25 basis point cut provided some relief, the benchmark 10-year Treasury rate has not contracted as significantly as the real estate industry had hoped. This environment has positioned alternative lenders like Trinity Street to capture market share by offering more flexible financing solutions.
Trinity Street is now securing major deals nationwide by integrating its non-recourse construction lending programs with both bridge and permanent finance offerings. The firm's permanent program now originates loans with rates starting at the 10-year US Treasury plus 150 basis points, with loan-to-value ratios up to 75%. This comprehensive approach allows developers and investors to secure financing throughout the entire project lifecycle from a single provider.
The company specializes in non-recourse, high-leverage senior and subordinate debt and preferred equity investments starting at $10 million for income-producing properties including anchored retail, office, industrial, multifamily, manufactured housing communities, and self-storage facilities. More information about Trinity Street Capital Partners and their services can be found at https://www.trinitystreetcp.com. The firm has established itself as a leader in providing senior and subordinate mortgages and equity for a wide range of real estate transactions, positioning it to capitalize on current market conditions where traditional lenders remain cautious.