Hudson Realty Capital Launches New FHA Mortgage Division – Business Observer
Hudson Realty Capital is expanding its commercial real estate lending business to include Federal Housing Administration (FHA) loans, Commercial Observer has reported for the first time.
The Manhattan-based commercial real estate investment management company will launch a new FHA division shortly after acquiring Greater Southern Realty Capital At the end of last year. David Loo, Co-Founder and Managing Partner at Hudson Realty Capital, said the move was in the works from late 2019 as he saw the need to focus more on FHA lending capabilities in the event of a market collapse, similar to 2008.
“When the financial crisis hit, creditworthiness started to deteriorate pretty quickly and a lot of conventional lenders had to withdraw from the market – and really only those lenders with the necessary agency skills were able to provide that liquidity to their clients,” said Loo. “In case something happens, we wanted the ability to be an all-weather platform for our borrower base.”
In preparation for the FHA division’s launch, Loo hired a team of agency lending veterans, including Justin Elshire, former executive vice president of X-caliber capital; Bradley Cain, former managing director of Wells Fargo Multi-Family Capital; and Mandi Hackett, former chief multi-family company for accelerated processing Bonneville real estate capital. Hackett is chief underwriter, while Elshire and Cain are managing directors of Hudson’s formation efforts.
“With increased market interest in the FHA product, it is a perfect time for Hudson to officially launch into the field,” Elshire said in a statement.
In total, Hudson’s team of FHA experts has provided HUD loans for projects totaling more than $ 1 billion. Since its inception in 2003, Hudson has managed investments with total transaction values of more than $ 4.5 billion in the apartment building, office, industrial, retail, mixed-use and hospitality sectors.
“They are seasoned originators in the FHA space, and unlike in conventional business, there are many different standards and underwriting criteria that you need to know in order to go through that [U.S. Department of Housing and Urban Development] Process, ”said Loo. “It allows us to be effective almost immediately because you have experienced underwriters who understand the product to look for.”
Loo has not set a short-term lending target, but is hoping to strengthen its FHA lending team over the next year in anticipation of increasing loan volumes.