Dolan Real Estate Finance is a private equity fund providing short-term, collateral-based real estate loans to commercial borrowers. As the US emerges from the effects of the Great Recession, two dynamics come to light, creating a gap in real estate financing. The first is that many banks have moved away from collateral-based real estate loan products. The second is that many projects are not being evaluated on the strength of the projects, but rather only on cash flows. The primary source of repayment of these real estate loans would be when the borrower sells the property or secures long-term financing of the project from a traditional source. This produces a “catch-22” condition, as cash flows are more volatile in challenging or recovering economic environments, thus impeding an economic recovery.
Collateral-based real estate loans are an important ingredient to improving the real estate markets. These loans provide higher returns for the lenders and better flexibility for the borrowers. Short-term real estate loans are used to help a non-consumer owner to develop, renovate or improve a property, and the borrower expects to quickly repay the loan.
While rents and occupancy rates are rising, funding of real estate projects has tightened. Despite the fact that the real estate market in the Mid-Atlantic region remained fairly stable during the recession, banks within the region have reduced their commercial real estate exposure. By offering collateral-based real estate loans, Dolan Real Estate Finance, LP wants to play a key role in financing real estate professionals to execute on their plans - and ensuring that they receive the loan solution best suited for their individual needs. We are able to make common sense lending decisions quickly and efficiently.
Our market focus is the mid-Atlantic region: Pennsylvania, Delaware, Maryland, Virginia, Ohio, West Virginia and Washington, DC.