OakNorth has granted an $18.4 million note-on-note facility to S3 Capital

Established in 2013 by Joshua Crane and Robert Schwartz in response to a significant void in institutional-quality, middle-market construction financing in New York City, the S3 Capital has evolved into one of the most active private lenders across the nation.

Serving as the private lending division of Spruce Capital Partners, the firm focuses on small balance loans amounting to less than $20 million and middle-market loans reaching up to $300 million. To date, it has successfully issued over $6 billion through more than 600 transactions.

“Since S3 was founded over a decade ago, we have prided ourselves on our ability to arrange creative financing solutions, which has allowed us to become one of the most active construction lenders nationally,” Joshua Crane and Robert Schwartz, principles of S3 Capital, commented.

“This was a highly complex deal, and we are impressed at how Dylan and the OakNorth team stayed highly attentive and entrepreneurial throughout the entire transaction. They took the time to really get to know our business and we look forward to working with them again on future projects.”

The $18.4 million note-on-note loan from OakNorth will be utilized to facilitate the construction of 16 new condominiums at 439 East 77th Street in Manhattan's Upper East Side. This project will feature three one-bedroom units, three two-bedroom units, and ten three-bedroom units, along with a variety of amenities such as a doorman, package room, bicycle room, lounge, conference center, and fitness facilities. Situated in one of Manhattan's most prestigious areas, the location is conveniently located just a short stroll from John Jay Community Park, which includes several basketball courts.

“Both Joshua and Robert are industry stalwarts who have a deep-rooted experience in the real estate lending market,” said Dylan Jagjivan, Associate Director of Debt Finance at OakNorth.

“It is this level of experience, coupled with the hugely talented team around them, that has allowed them to build such a positive reputation for S3 Capital. Note-on-note facilities enable OakNorth to access a wider variety of clients which we might not have access to typically, so these will absolutely be a key growth area in our US-based portfolio going forward. We’re delighted to have been able to support such a well-renowned and established real estate lender in S3 Capital and look forward to watching their growth story going forward.”