Real estate investment management firm GID has launched a new bridge lending platform positioned to fill a void in the depleted debt markets.
The Boston-based company announced Friday the rollout of GID Credit, which will provide transitional, floating-rate bridge loans across a number of commercial real estate asset classes. Adam Gibbons, co-head and chief investment officer of GID Credit, said that while the new business line has a long-term vision, current challenges to the debt markets — with many traditional lenders pulling back amid uncertainty about rising interest rates — provides an opportunity to attract borrowers in need of short-term capital.
“This platform is meant not to be for the current market conditions, but we do believe that the current market conditions make it an even better time to be launching this,” Gibbons said. He joined GID in August from CIM Group, where he was principal and head of originations.
“What we’re seeing now in the markets is just a dire need for new lenders with fresh capital,” he said.
Adams co-heads GID Credit with Jeff Thompson, who assumed the president role in January after spending nearly four years as head of private CRE debt for Pimco Alternative Investment Strategies. The leadership team also includes Dan Jagoe, former head of asset management and underwriting at Annaly Commercial Real Estate Group, as head of asset management, and Jennifer Keller, who previously worked as a vice president with GID’s debt capital markets division, as head of capital markets.
Thompson noted that GID Credit will focus largely on three- to five-year floating-rate loans in the $75 million to $300 million range. The platform will target all asset classes but lean heavily in the near term on multifamily and industrial, where GID’s investment management platform is heavily invested.
GID Credit will soon open a New York office and plans to hire a number of new members to the originations team as well as its asset management group. Thompson said there are no goals yet in terms of lending volume over the next year, but he is optimistic GID’s bridge loan offerings will shine as market conditions remain choppy.
“The banks and insurance companies we know for a fact are sitting on their hands through the rest of the year just because there is no real upside for them to take risk right now,” Thompson said. “The risk-adjusted returns that you can achieve in a market like this are significantly greater than a benign market.”
Andrew Coen can be reached at firstname.lastname@example.org.