Lightstone Launches Debt Platform

Borrowers will have access to first-lien and mezzanine loans for bridge and construction financing projects. The company plans to provide nearly $500 million within the first year.

Lightstone has launched its real estate debt platform—Lightstone Capital. The platform will provide a source of flexible capital for transactions at a faster rate than traditional lenders. 

Lightstone Capital will specialize in providing first-lien and mezzanine loans for bridge and construction financing projects secured by land and transitional real estate assets. The platform plans to close nearly $500 million in financing within the first year. Loans will range from $3 million to $100 million, targeting major markets such as New York, Los Angeles and Miami. Secondary markets with large projects will also be considered. Lightstone Capital underwrites opportunities with term sheets out within three to five business days, quicker than traditional lenders. 

In addition, Lightstone has hired Eugene Rozovsky as senior vice president of Real Estate Debt Strategies, to oversee and manage the platform. Before Lightstone, Rozovsky served as vice president of Acquisitions & Asset Management at Madison Realty Capital. He was responsible for all debt and equity investments, closing more than $2 billion in transactions. Rozovsky also held positions at Hudson Realty Capital and Blackstone. 

“Our decades of experience across every real estate sector allow us to see value and uncover opportunities where other lenders cannot,” said David Lichtenstein, chairman & CEO of Lightstone, in a prepared statement. “As a developer, we understand the borrower’s perspective and needs, and we recognize their desire for a reliable lender that can work quickly.”

Last month, Lightstone closed $73 million in financing for Moxy South Beach, a seven-story hotel development in Miami Beach, Fla.