Trinity Street Capital Partners Expands Non-Recourse Construction Lending Program Amid Tight Credit Conditions

Trinity Street Capital Partners has announced the expansion of its non-recourse construction and permanent finance program, increasing loan amounts to $250 million and offering financing up to 85% of cost for qualified property types. The expanded program specifically targets multifamily, industrial, and self-storage properties with the higher 85% loan-to-cost ratio, while office, retail, and hospitality properties can access up to 65% of cost financing. This expansion comes at a time when traditional banks continue to express concerns about general economic conditions and maintain cautious lending practices across certain property types.

The program will focus on the top 200 metropolitan statistical areas in the United States, with interest rates beginning at 30-day LIBOR plus 2.50%. According to a company spokesperson, the non-recourse construction lending program has gained significant traction in recent months as borrowers seek alternatives to traditional bank financing. The current economic environment, characterized by Federal Reserve rate cuts and persistent pressure from the Trump administration for lower rates, has created opportunities for alternative lenders like Trinity Street Capital Partners to fill the financing void.

Trinity's success in winning major deals nationwide stems from its ability to combine construction lending with both bridge and permanent finance programs. 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 integrated approach provides borrowers with a comprehensive financing solution from construction through permanent stabilization. The company focuses exclusively on 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 properties located throughout the United States.

The expansion of Trinity Street Capital Partners' lending capacity to $250 million per transaction represents a significant increase in the firm's ability to serve larger commercial real estate projects. This enhanced capacity, combined with the non-recourse nature of the loans, provides developers and investors with substantial flexibility and risk mitigation. The program's focus on specific property types reflects current market dynamics and investor preferences, particularly the strong demand for multifamily, industrial, and self-storage assets. For more information about the company's services, visit https://www.trinitystreetcp.com.

The timing of this program expansion coincides with ongoing volatility in capital markets and persistent uncertainty about interest rate movements. While the Federal Reserve's recent 25 basis point rate cut provided some relief, the benchmark 10-year Treasury rate has not contracted as significantly as many in the real estate industry had hoped. This environment has created opportunities for specialized lenders like Trinity Street Capital Partners to provide much-needed capital for commercial real estate development and acquisition. The firm's position as a leader in providing senior and subordinate mortgages and equity for a wide range of real estate transactions positions it well to capitalize on current market conditions and serve borrowers seeking non-recourse financing solutions.