Archway Capital Launches $150M Distressed Lending Program

The firm cited increasing borrower demand for debt and equity in complex transactions.

Greg Schecher, Director of Southeast Originations, Archway Capital. Image courtesy of Archway Capital

Archway Capital, a Los Angeles–based alternative investment manager, has expanded its lending platform to include first mortgage debt, mezzanine capital, as well as preferred and Co-GP equity between $3 million and $15 million, secured by performing and non-performing residential and commercial real estate, or on notes securing those assets.

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The new suite of products complements Archway’s existing lending platform, which provides short-term, non-recourse, fixed-rate senior debt between $2 million and $20 million up to 75 percent LTV for acquisition or recapitalization of industrial, multifamily, office, single-family and select internet-resistant retail assets in high-density and urban markets across the U.S.

Archway Capital President & CEO Bobby Khorshidi said in a prepared statement that Archway plans to deploy about $150 million over the next 36 months. He referenced “increasing demand from our borrowers” for both debt and equity in complex real estate transactions.

Korshidi was involved in both the establishment of Partners Capital in 2009 and the founding of Archway in 2016 as a Partners affiliate.

New veterans

To meet an expected increase in lending, Archway Capital has strengthened its origination team with hires at its Los Angeles headquarters and East Coast office.

Max Kirschenbaum, Director of Originations, Archway Capital. Image courtesy of Archway Capital

Max Kirschenbaum has joined the firm as director to grow the firm’s national originations effort. The former founding member of Washington, D.C.–based crowdfund investment firm Fundrise, Kirschenbaum will be responsible for sourcing investment opportunities and developing new investment strategies.

At Fundrise, he was directly responsible for deploying more than $550 million of joint-venture equity, preferred equity and debt investments in core, core-plus, value-add and development CRE assets in top growth markets across the country. Kirshenbaum earned a BA from Vanderbilt University and MBA from the Wharton School at the University of Pennsylvania.

Greg Schecher has joined Archway as director responsible for the East Coast region, with a specific focus on the Southeast. During his 35-year career in real estate, Schecher has been a senior member of the origination teams at Money360, NAI Global and Keystone Bridge Capital.

A year ago in May, Steven Bandolik of Deloitte Services set out four steps for CRE finance executives to consider in effectively handling distressed assets.

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