- Founded in 2013 by Joshua Crane and Robert Schwartz, S3 Capital is a New York-based lending platform and the private lending arm of Spruce Capital Partners;
- Specializing in small balance loans under $20m and large balance loans up to $250m, S3 Capital has successfully lent over $5b across 600+ transactions to date;
- The $18.4m note-on-note loan from OakNorth will be used to support the development of 16 new condos located at 439 East 77th Street in Upper East Side, Manhattan.
New York, USA, 21 February, 2025; OakNorth, the digital bank for entrepreneurs, by entrepreneurs, has provided an $18.4m note-on-note facility to New York-based lending platform, S3 Capital.
Founded in 2013 by Joshua Crane and Robert Schwartz after they recognized a significant lack of institutional quality, middle market construction lenders in NYC, the firm has since become one of the most active private lenders nationally. Formed as the private lending arm of Spruce Capital Partners, the firm specializes in small balance loans under $20m and middle market loans up to $300m, successfully lending over $6b across 600+ transactions to date.
The $18.4m note-on-note loan from OakNorth will be used to support the development of 16 new condos located at 439 East 77th Street in Upper East Side, Manhattan. Consisting of three one-bedroom, three two-bedroom, and 10 three-bedroom units, the new scheme will offer numerous amenities, including a doorman, package room, bike room, lounge area, conference centre, and gym facilities. Located in one of Manhattan’s most prestigious neighbourhoods, the site is a short walk from John Jay Community Park which houses several basketball and handball courts, a children’s playground, and an outdoor swimming pool.
Joshua Crane and Robert Schwartz, Principals of S3 Capital, commented: “Since S3 was founded over a decade ago, we have prided ourselves on our ability to arrange creative financing solutions, which has allowed us to become one of the most active construction lenders nationally. This was a highly complex deal, and we are impressed at how Dylan and the OakNorth team stayed highly attentive and entrepreneurial throughout the entire transaction. They took the time to really get to know our business and we look forward to working with them again on future projects.”
Dylan Jagjivan, Associate Director of Debt Finance at OakNorth, added: “Both Joshua and Robert are industry stalwarts who have a deep-rooted experience in the real estate lending market. It is this level of experience, coupled with the hugely talented team around them, that has allowed them to build such a positive reputation for S3 Capital. Note-on-note facilities enable OakNorth to access a wider variety of clients which we might not have access to typically, so these will absolutely be a key growth area in our US-based portfolio going forward. We’re delighted to have been able to support such a well-renowned and established real estate lender in S3 Capital and look forward to watching their growth story going forward.”
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Notes to editors
About OakNorth
Launched in September 2015 and founded by entrepreneurs, OakNorth is a digital bank focused on serving and empowering the lower mid-market (businesses with £$1m-$100m in turnover), that are seeking to scale but are routinely underserved or overlooked by traditional banks.
To date, it has provided c.$15bn to these businesses across a wide range of sectors, achieving performance metrics that place it amongst the top 1% of commercial banks globally. Its loans have directly contributed to the creation of 56,000 jobs, and over 34,000 new homes across the UK and the US – the majority of which are affordable and social housing.
It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Visit www.oaknorth.co.uk for more information.
For press inquiries, please email: [email protected]
About S3 Capital
S3 Capital is the lending arm of Spruce Capital Partners, a real estate investment firm that acquires and manages multi-family rental housing. S3 Capital is a national construction and bridge lender with significant expertise in development that positions it to streamline the construction process. The company offers a dedicated pool of capital, enabling it to promptly fund construction-related expenses and respond to the individual needs of borrowers. The firm has originated over $5.0 billion across more than 650+ loans and excels in financing small balance loans under $20 million and large balance loans up to more than $250 million. The firm currently has a portfolio of more than 150 active bridge and construction loans.