An Austin-based commercial real estate investment and lending firm is launching a new $50 million fund and ramping up its private lending business in Texas.
Thrive, FP created Thrive Lending Fund, LLC to oversee its private lending and debt business, and brought banking industry executive Justin Brogna on board to be COO of Thrive Lending. Brogna previously served as the Austin president of Independent Bank.
Thrive Lending specializes in lending to real estate investors, developers, and homebuilders for residential and commercial real estate projects with loans from $250,000 to $10 million.
Thrive, FP and its affiliates have a lot of experience in the multifamily market, with more than $100 million in debt and equity invested, and over $350 million of real estate purchased. Brogna said with Austin’s growth, there’s a lot of competition for multifamily properties.
“Sellers of well-located properties are getting a premium, typically with multiple offers. At the same time, banks are pulling back from their willingness to lend to new, Class A construction,” said Brogna. “We see ample opportunity in the Class B and C segment of the multi-family industry to buy well-located properties, and run them with a degree of service offered at Class A properties. That’s essential to our business model because there’s a huge segment of the population that finds such properties affordable, but appreciates a higher standard in terms of property maintenance and operations.
“Additionally, we anticipate small, infill apartments will continue to be purchased and converted into for sale condos,” Brogna continued. “And in the residential sector, the prices continue to escalate for both homes, and in particular, for infill lots or tear-downs where there’s an opportunity to build a newly constructed home.”
Thrive, FP got its start in October 2013 when JP Newman and Adrian Lufschanowski, who owned and operated Principals Capital Funding and First Capital Funding, changed the names of those entities to Thrive.