CHICAGO–Alliant Credit Union is reporting it has closed its largest note-on-note financing secured by an underlying construction loan since it began providing back leverage to private debt funds approximately seven years ago.
The $19.6-billion Alliant CU said it contributed $37.96 million toward a $58.4 million facility originated by Trez Capital, a commercial real estate investment firm. The financing supports the development of a 268-unit multifamily rental community in Avondale, Arizona, a fast-growing suburb of Phoenix.
Alliant said the loan highlights its strong appetite for complex, large-scale commercial real estate transactions. Alliant Credit Union and Trez Capital are long-term partners, having executed 20 loans valued at over $300 million worth of note-on-note financing, it added.
Benefit of Relationships
“Alliant values the relationships we have established with numerous debt funds and other private capital sources,” Charles Krawitz, executive vice president, Alliant Credit Union, said in a statement. “These relationships have allowed us to benefit from the property type and geographic expertise of our lending partners. We appreciate the trust put in Alliant and the ability to help finance varied properties, all of which contribute to the economic growth of their respective markets.”
‘Active Provider’
Alliant said it is an active provider of note-on-note capital to private bridge and construction lenders nationwide. Having executed more than $1.2 billion worth of commitments with over 15 such relationships, Alliant stated it has developed expertise in this niche form of lending.
