LOS ANGELES, June 3, 2025 /PRNewswire/ — Pender Capital (“Pender”), an investment manager specializing in short-term, senior secured commercial bridge loans, today announced that the Pender Real Estate Credit Fund started 2025 in a strong position with 38 active loans totaling $518.4 million, against an estimated value of $840.9 million in commercial real estate collateral, representing a portfolio weighted average loan to value of 63.03% as of March 31, 2025.
In Q1 of 2025, Pender Capital received 182 requests for financing totaling $3 billion dollars with the quality of submissions continuing to trend upward, strengthening potential returns, and reducing risk. The Fund closed on three transactions totaling $20,375,000 during the first quarter of 2025. Portfolio-wide there were zero missed payments and two full loan payoffs.
“Due to current capital constraints and general economic uncertainty in the market, the Fund was forced to turn away several strong deals with quality assets and sponsorship groups, which resulted in lower funding numbers than anticipated,” said Cory Johnson, CEO at Pender Capital. “However, despite these challenges, we expect origination activity to increase substantially in the near future as the Fund continues to grow.
“While Commercial Real Estate transaction volume has been and will be affected negatively in the short term, with potential for significant uptick in activity if/when tariffs are resolved, we believe rate cuts, if any, won’t occur until late Q3 and Q4 2025 given the uncertainty related to tariffs, debt ceiling and budget fights,” said Zach Murphy, CIO at Pender Capital. “Inflationary trends should reduce substantially and will become less important for current economic environment than global trade issues.”
The Pender Real Estate Credit Fund continues to garner investments from financial advisors and their clients, due in large measure to its unique approach to capitalizing on market inefficiencies in commercial real estate and its liquidity features. The Fund aims to capitalize on a ripe investment environment spurred by a reduction in lending options coupled with increased borrower demand for short-term loans. The Fund’s objective is to originate lower middle market short-term bridge loans that are secured by senior position collateral in commercial real estate assets across the Sunbelt, and other key “flyover” regions of the U.S.
With a $2,500 investment minimum and no accreditation requirements, the closed-end interval fund structure is attracting capital from new participants, such as wealth management and financial advisors, who are now able to allocate with lower minimum thresholds.
Pender Capital (“Pender”) is a niche investment manager dedicated solely to commercial real estate credit-based opportunities. Pender offers capital solutions to borrowers investing in or owning properties with equity protection while providing investors with attractive risk-adjusted returns. The firm is owned and operated by a team of seasoned commercial real estate professionals with hands-on real estate experience, credit skills, and sophisticated investment banking expertise. Pender has originated approximately $1.46 billion in commercial real estate credit, representing more than $2.35 billion in asset value as of April 30, 2025. Learn more at https://www.pendercapital.com/.
IMPORTANT INFORMATION- Pender Real Estate Credit Fund
This material is published as assistance for recipients but does not constitute investment advice and is not to be relied upon as authoritative nor to be substituted for one’s own judgment. This information is not a recommendation to purchase or sell a security or follow any strategy or allocation. Before making any investment decision, you should seek expert, professional advice and obtain information regarding the risks, liquidity, legal, and regulatory limitations for the fund.
BEFORE INVESTING YOU SHOULD CAREFULLY CONSIDER THE FUND’S INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES. THIS AND OTHER INFORMATION IS IN THE PROSPECTUS, A COPY OF WHICH MAY BE OBTAINED FROM PENDER CAPITAL AT 310-853-8001. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST.
The Fund has an interval fund structure pursuant to which the Fund, subject to applicable law, has adopted a fundamental policy that it will make quarterly repurchase offers for no less than for 5% and not more than 25% of the shares outstanding at per-class net asset value per share, unless suspended or postponed in accordance with regulatory requirements. The Fund currently expects the quarterly repurchase offer to be set at 5% of the Fund’s Shares. It is possible that a repurchase offer may be oversubscribed, with the result that Shareholders may only be able to have a portion of their Shares repurchased.
The Shares are speculative and illiquid securities involving substantial risk of loss. An investment in the Fund is appropriate only for those investors who do not require a liquid investment, for whom an investment in the Fund does not constitute a complete investment program, and who fully understand and can assume the risks of an investment in the Fund.
Investors should carefully review and consider potential risks before investing. The Fund has been organized as a non-diversified, closed-end management investment company and designed primarily for long-term investors. An investor should not invest in the Fund if the investor needs a liquid investment. The Fund could experience fluctuations in its performance due to several factors. As a result of these factors, results for any previous period should not be relied upon as being indicative of performance in future periods.
Pender Real Estate Credit Fund is distributed by Distribution Services, LLC which is not affiliated with Pender Capital Management LLC or any other entity discussed.
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SOURCE Pender Capital Management, LLC