Harbor Group International closed a $ 245 million fundraising round for its Multi-Family Whole Loans platform, which began creating and closing loans in 2020. The platform provides senior mortgage bridge financing on multi-family assets across the United States. The Canada Pension Plan Investment Board has committed $ 110 million in equity as the lead investor for the initiative.

HGI plans to close $ 300 million in senior multi-family loans by the end of January and $ 450 million to $ 500 million in loans by the end of the first quarter of 2021.

HGI decided to establish a senior loan origination platform when the early days of the pandemic created a cash shortage with other sources of debt capital. This created a window of opportunity to enter the bridging loan market, according to HGI president Richard Litton.

HGI has researched and managed debt investments for over a decade, making senior equity investments and mezzanine loans on multi-family properties across the United States. He’s one of the biggest buyers of Freddie Mac’s multi-family subordinated debt positions, or “B-coins.” In 2019, HGI secured a $ 180 million investment commitment from CPPIB Credit to support Freddie Mac, or KJ’s supplemental loan program.

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The loan program will target value-added assets and new construction assets nationwide.