AST Financial and Summit Capital Partners have closed more than $51 million in construction financing for homebuilders year to date in 2022. — Courtesy: AST/Summit Capital
By Joshua Burd
Lending platforms AST Financial and Summit Capital Partners have closed more than $51 million in construction financing year to date in 2022, the firms announced Tuesday.
According to the partners, the transactions have included a $22 million construction loan, a $500,000 construction loan and a $460,000 rehabilitation loan for homebuilders of varying sizes. The Lavallette-based firms have completed the deals under an AST platform that extends construction and bridge financing, along with preferred equity, through direct-to-lender capital programs, and Summit Capital’s direct, non-bank commercial real estate lending team.
“For homebuilders, the current rate environment paired with the rising costs of materials, high labor costs and constricted land supply have only made home construction significantly more challenging,” said Robert D’Anton, president of AST and managing partner of Summit Capital Partners. “Due to these hurdles, many builders are now also finding it increasingly difficult to secure the traditional bank financing that they need to begin construction.”
Launched in 2015, AST Financial is an affiliate of the boutique real estate development and financing company AST, allowing it to create financing packages for builders by builders, according to a news release. Summit Capital Partners, meantime, was founded in 2011 as a partnership of D’Anton, Mandelbaum Barrett’s Barry R. Mandelbaum, Woodmont Properties’ Donald Witmondt and entrepreneur and real estate investor Michael Wolfson.
Since 2015, AST Financial and Summit Capital have partnered to provide financing valued at more than $500 million and have helped homebuilders bring over 800 homes to the market.
“AST Financial and Summit Capital Partners were created to help homebuilders bridge the gap between their vision and reality through creative financing programs focused on their unique needs,” D’Anton said. “We are proud to provide the homebuilder community with access to financing options over the last several months and look forward to helping additional builders bring their visions to life throughout the remainder of 2022.”
