Slate Property Group has closed a new separately managed account (SMA) with capacity of up to $1 billion to originate lower-leverage senior secured residential construction and bridge loans. The mandate targets residential projects in high-growth, transit-oriented markets along the East Coast, with capital earmarked for both ground-up development and bridge financing needs.
According to Slate co-founder and principal Martin Nussbaum, the SMA is intended to broaden the firm’s activity across the capital stack and expand the menu of debt solutions available to borrowers. He described the strategy as an extension of Slate’s existing lending platform, positioning the firm to support additional residential projects while continuing to focus on conservative leverage profiles.
The SMA has already completed its first deployment. Its inaugural investment is a $45 million senior-secured construction loan backing a new residential development at 264-272 West 135th Street in Harlem. The financing closed in July and supports the ground-up construction of an 11-story residential building.
The Harlem project is planned for 72 residential units and is being built by Mass Development. The new loan provides construction capital to advance the project, which is one of the early examples of how the SMA’s capital will be applied to residential development opportunities.
By concentrating on high-growth, transit-oriented East Coast locations and emphasizing lower-leverage senior positions, the SMA is structured to focus on risk-adjusted lending in the residential sector. The platform adds another dedicated pool of capital to Slate’s lending capabilities as it looks to work with a broader set of residential borrowers.
