New York & Tri-State + Downtown New York + Finance | February 17, 2023

Urban Standard Capital Launches Gap Financing Strategy

Real estate private equity firm Urban Standard Capital has launched a new strategy to deploy $100 million in gap financing, or rescue capital, including senior stretch financing, mezzanine and preferred equity for borrowers facing a financing gap.

The firm’s founder and CEO, Seth Weissman, said USC is offering the financing to borrowers who are unable to fully replace their existing debt due to higher interest rates and more restrictive debt ratios and covenants.

“Our strategy is simply to be a friendly, ‘white knight’ capital source,” said Weissman. “Our gap financing program is focused on distressed balance sheets, not distressed properties, with the objective of rightsizing the existing senior loan to meet current market underwriting in order to give the sponsor additional runway to stabilization.”

He added that with rising interest rates, he’s seeing financing gaps between 20% and 30% that need to be filled by new equity or alternative financing.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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