S3 Capital is a flexible lending platform that originates construction and bridge financing. S3 Capital is the lending arm of Spruce Capital Partners, which provides equity solutions for various types of real estate projects. S3 was established in 2014 and is currently deploying their 4th fund of capital.
Since its inception, S3 Capital has originated more than 340 first mortgages, with a current portfolio of over 130 active loans, totaling over $2 billion. The firm has deep development experience and is especially well-positioned to streamline the construction process. It has a committed pool of capital, funding construction draws and responding quickly to meet all borrower needs. S3 is a user-friendly and creative capital provider that values long-term relationships and repeat business. S3 has specialized market knowledge and brings an entrepreneurial approach to uncovering and creating value. All facets of the business are handled in-house, including originations, underwriting, servicing and construction monitoring. Their capital is a blend of high net worth and institutional capital.
High-Level Lending Parameters
Financing Products: Stretched senior construction loans and heavy lift or transitional bridge loans. Will also finance condo inventory loans.
Loan Amounts: $1–250 million
Loan-to-Cost: Up to 80% LTC
Lending Terms: Up to 3 Years
Interest Rate: 6.75 to 9%. Larger balance loans will be on the lower end, while small balance will typically be 8 to 9%.
- Ground up (7.5% to 8.5%) – larger balance
- Smaller balance (8% to 9%). Upper single digits.
Markets: Primarily NYC Metro, Northern Jersey and South Florida. Pushing into markets like Austin, Dallas, Raleigh, and Charlotte (Prefer $15 million + deal size for these locations).
Asset Classes: Multi, condo and SFR. Selective on office, retail and land loans
- Multifamily: Closed a $67.5 million ground up construction loan for a 274-unit multifamily building with 20,000 square feet of retail in Oakland Park, Florida. This was the first new Class A Oakland Park project in the submarket. With a lack of comps available in the market, S3 was able to get comfortable with the market and Sponsors, as they believed there would be tremendous spillover from the surrounding markets. S3 exhibited their pioneering and entrepreneurial nature through this transaction.
- Condos: Sponsor purchased two buildings on the Upper West Side in NYC. One was a vacant 11-unit building. The other one was fully occupied. Sponsor was holding onto the cash-flowing property and gut renovating the vacant one into two luxury condo units. S3 was able to put a release price on the stabilized property.
- Condos: Sponsor bought 4 units and plans on converting them into 3 condos in Tower Gardens, Brooklyn. The $4.5 million deal came out to be about 65 to 70% of purchase price, and 100% of hard costs.
- Multifamily: $60 million construction loan for a 12-story, 215-unit multifamily project in the Bronx neighborhood of Mott Haven across 195,000 square feet