Saluda Grade Announces Equity Investment and $500 Million Expansion Financing for Builders Capital

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Funding Comes as Demand for New Housing Skyrockets

Saluda Grade, a private alternative real estate advisory and asset management firm, announced today two financings for premier, Seattle-based, private construction lender Builders Capital.

Saluda Grade Ventures, through its Alternative Lending & Fintech Growth Fund I, LP, invested equity capital in Builders Capital to further fuel growth for the company. The investment comes at a time of skyrocketing new housing demand in the wake of stay-at-home orders and a new work-from-home trend.

In addition to the equity investment, Saluda Grade Advisory, the capital markets and advisory division of the firm announced the arrangement of a $500 Million debt financing facility for Builders Capital. The added lending capacity provided by the facility will allow Builders to aggressively take market share in their core markets and continue targeted expansion.

“Our investment and arrangement of the financing facility for Builders demonstrates Saluda Grade’s unique value proposition to the alternative real estate market, and the flexible solutions we provide,” said Saluda Grade founder, Ryan Craft. “There is a supply and demand crisis in the US housing market, and we’re partnering with Builders Capital because of their impeccable track record and our belief in their ability to continue to grow market share,” Craft added.

According to the U.S. Census, sales of newly built homes bounced to the highest level in 14 years in August, with the builder’s supply dropping to just 3.3 months’ worth at the current sales pace. The market is considered balanced at 6 months of supply. The COVID-19 Pandemic and subsequent stay-at-home culture have seen demand from buyers soar, while the supply shortage has only increased due to construction stoppages in March and April.

“We’re very bullish on the US housing market, and the current market substantiates our view further with continued home price appreciation and record low mortgage rates,” declared Tim Carr, Chief Investment Officer at Saluda Grade Ventures. “As banks have stayed away from construction lending, Builders is uniquely positioned to be the go-to lender,” he finished.

Builders Capital will continue to work with Saluda Grade’s extensive network of institutional capital investors to drive origination volumes and leverage Saluda Grade’s ecosystem and experience in delivering innovative solutions to the real estate markets.

About Saluda Grade
Founded in 2019, Saluda Grade is a boutique real estate advisory and asset management firm focused on the alternative “non-bank” lending sector. Saluda Grade Advisory advises small to mid-sized lenders seeking institutional capital markets expertise and delivering institutional capital to private lenders. Saluda Grade Ventures, the firm’s equity investment arm, currently manages two private funds. Saluda Grade Asset Management invests through Saluda Grade Opportunities Fund LLC, which is focused on providing bespoke capital to alternative lenders via structured and securitized debt solutions.

With offices in New York and San Francisco, the company is driven by a core mission to identify alternative lending sectors needing institutional capital to fuel growth. Its management team has more than 85 years of combined experience in the mortgage and securitized credit space. The firm has deep relationships with both private lenders and capital providers that allow Saluda Grade to bring attractive assets to institutional investors.

About Builders Capital
Builders Capital is one of the nation's largest private construction lenders, offering innovative financing solutions to a wide spectrum of developers and homebuilders, from fix-and-flip and ground-up construction to development and multi-family lending. The Company maintains its headquarters in Seattle, Washington, with offices in Vancouver, Washington; Colorado Springs, Colorado; Boise, Idaho; Austin, Texas; and Orlando, Florida. Year to date 2019, Builders Capital has closed over $500M in loan volume across 9 states. The Company is owned by entities controlled by Altig, Trent, and the office of Robert Hadley and Lisa Hadley.

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Ashleigh Carone
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