Artes Capital, a portfolio lender specializing in bridge and construction financing across commercial real estate assets and residential homebuilding in the Western United States, acquired a new credit line from Western Alliance Bank.
The credit line, which closed on June 18, 2021, will facilitate efficient capital management for Artes Capital as the fund executes its initial ramp-up. Western Alliance Bank provided an initial, two-year credit line for $25 million, with an option to grow. This line complements Artes Capital’s current $75 million in equity commitments, which were achieved within just 90 days of the company’s launch.
A recognized leader in specialized mortgage services, Western Alliance Bank understands the sector in which Artes Capital’s inaugural debt fund operates. As a result, Western Alliance Bank was poised to support Artes Capital in both the initial deployment of the fund’s capital as well as its ongoing mission to provide best-in-class execution in the private commercial mortgage market.
As Artes Capital’s loan portfolio matures, this facility will provide the fund with the flexibility to manage cash efficiently and accommodate loan fundings, draws, paydowns and payoffs, while minimizing cash drag and maximizing the yield to investors.
Artes Capital’s approach to lending is distinguished by a commitment to building and maintaining quality relationships. The principals of Artes Capital and key personnel at Western Alliance Bank have known each other professionally for many years. These prior relationships made both parties comfortable during the vetting process and enabled a relatively quick and easy close, under mutually favorable terms. Both Artes Capital and Western Alliance Bank have solid reputations for fair dealing, and this transaction demonstrated the strengths and core competencies of both firms.
Brian Stocker, founding principal and CFO of Artes Capital, stated, “We found in Western Alliance Bank a banking partner who clearly understands our business and is attuned to the unique challenges and needs of a nascent private real estate debt fund. Their due diligence process, while comprehensive, focused on the issues that matter most in our business, and Western Alliance Bank was responsive and timely in their decisions. Beyond this credit facility, Western Alliance Bank provided Artes with a suite of treasury management and corporate credit solutions tailored to our needs. In Western Alliance Bank, Artes found a true capital partner to help drive our continued growth and success.”
In selecting a warehouse lender, Artes Capital placed great importance on the lender’s ability to grow along with the fund. Western Alliance Bank has that capacity, and Artes Capital anticipates a long and prosperous working relationship.
“Western Alliance Bank worked to tailor the lending structure and cash management resources to meet the specific needs of Artes Capital – a hallmark of our customized, client-first approach,” said Steve Curley, Executive Vice President, Western Alliance Bank. “Helping customers like Artes Capital to achieve their goals is a strong core value for our business bank.”