Foreign and Domestic Condo Buyers Tap $300 Million Fund To Close On New Condo Purchases

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Joint Venture, Pebb Yale Truss Lending, Provides Competitively Priced Non-Recourse Financing To Investor Condominium Buyers in South Florida

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Three leading South Florida real estate-related companies with robust real estate experience, deep capital markets relationships, and a proven track record of originating and servicing end-user loans have joined forces to provide senior mortgage loans to non-traditional real estate buyers. The joint venture, named Pebb Yale Truss Lending, (“PYT Lending”) is comprised of Pebb Capital, GPC Truss, and Yale Mortgage. Already the enterprise has commenced loan closings for approximately 20% of the units at Echo Brickell, a luxury condominium development by Property Markets Group (“PMG”) in Miami, FL.

The three real estate firms formed PYT Lending as a specialty lending company to fill a void in the market: reasonably priced term lending to investor buyers of condominium units. In particular, the program provides a much-needed alternative for foreign nationals who often encounter intense scrutiny, an onerous application process, and high interest rates. PYT Lending works directly with condominium developers by offering non-recourse loan options to condo buyers with existing contracts as well as to prospective buyers. The loans are customizable, with flexible terms (one-, three- and five-year options) and a non-intrusive application process. Perhaps most important, PYT Lending offers competitive rates, as low as 6.95% for a three-year loan. Buyers close upon building completion when they take delivery of their units.

For developers, PYT Lending’s alternative lending platform serves as an important marketing tool to accelerate sales velocity and provides total certainty of closing. In addition, developers can take advantage of PYT Lending’s competitive rates and terms to finance their existing unsold inventory.

“PYT has been instrumental to our closing process as they provided financing to our end users in an expedited fashion. I honestly can say, I have never experienced such a seamless process with a financial institution before,” said PMG principal Ryan Shear.

“We are very excited to deliver this lending product and provide clearly-needed liquidity for contract purchasers of Miami’s many condominium buildings being delivered over the next few years,” said Pebb Capital Managing Principal and PYT Lending founder, Todd Rosenberg. “Current lending options for non-traditional condominium buyers are limited to the point of being prohibitive. Our goal is to provide our clients and borrowers with the flexibility they need to accomplish their investing goals by offering reasonably-priced loans, with flexible terms and a commitment that we’ll be there at the closing table.”

“As a South American family, we are well-aware of the challenges foreign nationals encounter when financing their investment purchases,” adds GPC Truss partner Jonathan Ghitis. “We want South Florida to continue to be perceived as a fantastic place to do business for U.S. citizens and foreign nationals alike. PYT Lending fulfills a crucial need in the market for anyone looking to purchase investment properties."

Woody Kahn, CEO of Yale Mortgage Funding, likewise recognized how PYT Lending can meet a critical need in the market. “We have demonstrated our proven execution capabilities over the last 20 years as a lender and servicer, originating and securitizing over a billion dollars of mortgages nationally and in the South Florida area,” he said. “We are thrilled to bring our expertise to this innovative platform that will have a significant impact on the market.”

While initially focused in South Florida, PYT plans to expand into other major markets nationwide.

About Pebb Capital
Founded in 2014, Pebb Capital is an opportunistic multi-strategy real estate and private equity investment firm. Pebb Capital invests across the capital stack and focuses on value-oriented and cyclically-defensive investments that generate attractive risk-adjusted returns. Dating back to the 1970s through their legacy Pebb Enterprises activities, the principals at Pebb Capital have a long track record of profitability and stability across a variety of real estate asset classes, and have cultivated deep relationships in real estate and capital markets nationally.

About Yale Mortgage Funding
Yale Mortgage Funding LLC is a licensed mortgage lender focusing primarily on collateral based lending. Headquartered in Miami Beach and managed by Woody Kahn and Phil Gross, the company has originated and serviced over $1.2 billion in mortgages since 1992.

About GPC Truss
GPC Truss is a partnership between one of South Florida’s most accomplished real estate companies and one of Latin America’s most storied entrepreneurs and family offices. GPC (“Ghitis Property Company”) is a development and acquisition firm led by former Trammell Crow Company partner Leo Ghitis. GPC Truss was formed to take advantage of unique opportunities to allocate capital into scalable commercial real estate strategies. The partnership thrives due to its flexible mandate and discretionary capital.

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Meieli Sawyer
@WeinbachGroup
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The Weinbach Group
since: 02/2009
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