New York-based Atlas Real Estate Partners this week announced the launch of A4 Credit Partners, a small-balance mortgage lending platform targeting credit opportunities within the residential transition loan (RTL) market.
As part of the launch, A4 Credit Partners is seeking to raise $150 million to originate a variety of first-lien mortgages. It will primarily focus on loans up to $4 million and will target projects in key East Coast and Sun Belt markets.
Atlas said in a press release that the new platform aims to fill what it views as a “critical gap left by traditional lenders.” A4 Credit Partners offers short-term, asset-backed financing — including fix-and-flip loans — that are designed to deliver strong, risk-adjusted returns and a liquidity feature for its investor base.
“The launch of A4 Credit Partners marks a significant expansion into a niche lending market that is increasingly underserved,” Arvind Chary, managing partner and co-founder of Atlas Real Estate Partners, said in a statement. “We see an opportunity to deliver strong yields to investors through quarterly cash distributions, while providing borrowers with efficient, reliable access to capital for residential transitions and renovations, historically provided by hard money lenders.”
Atlas, which was founded in 2010, said it’s leveraging its “15-year track record of successful underwriting and execution” to create a new platform grounded in “institutional credit discipline.” The firm primarily focuses on the multifamily housing space, acquiring and developing some 10,000 units since its inception.
The company explained that A4 utilizes a balance-sheet lending model to generate fast, in-house loan approvals with conservative leverage ratios and “personal alignment of interests through significant co-investment.” It focuses on off-market opportunities and stronger credit profiles through its relationships with mortgage brokers and borrowers.
“Our strategy at A4CP is to combine operational insight with financial rigor,” managing partner Nick Marcello said. “Having led similar lending platforms, I understand what borrowers expect from private mortgage lenders: clear underwriting guidelines that allow for quick closing timelines, surety of execution and attractive rates. A4CP is designed to deliver predictable capital in a market where reliable financing is often scarce, expensive, or volatile.”
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