Joshua Crane, co-founder of S3 Capital, shares in an interview with IREI how private construction debt is playing an increasingly critical role in New York City’s multifamily market as traditional lenders pull back amid tighter credit conditions. With more than 125 active multifamily construction loans across the region, Crane notes that limited housing supply, resilient demand and investors seeking lower-risk, double-digit returns are fueling demand for private debt solutions.
Founded in 2014, S3 Capital is the lending affiliate of Spruce Capital Partners, a New York City–based real estate investment firm focused on middle-market, institutional-quality bridge and construction lending. The firm has originated more than $6.5 billion since 2013 in loans and is helping close the liquidity gap for ground-up multifamily projects as regional banks retreats from the sector.
After two relatively muted years in NYC multifamily sales, what macroeconomic or market-spe
