Key Takeaways
- • Archway Fund launches as a joint venture between Partners Capital and an undisclosed $700 million Western U.S. investment management firm, targeting bridge lending for commercial real estate transactions in the $2 million to $15 million range across the Western United States.
- • The new platform is capitalized to deploy $100 million within 12 months, representing a 25% increase from Partners Capital Finance's $80 million in loan originations during 2016.
- • Archway Fund will provide first trust deed loans up to 75% LTV with terms up to 24 months, targeting properties unable to access conventional financing due to tight closing timelines, occupancy issues, sponsor credit concerns, or tenant turnover challenges.
- • Mark Reese joins as Vice President of Loan Origination and will oversee transaction pipeline development, with the platform operating independently under the Partners Capital umbrella.
- • Target asset classes include investor single-family residences, apartments, office, industrial, and retail properties, positioning Archway to serve opportunistic and value-add market segments across Western markets.
Summary
The new platform represents a significant scaling of Partners Capital Finance's lending operations. In 2016, the predecessor loan production division originated $80 million in loans. Under the Archway Fund structure, capitalization has increased to support $100 million in deployment over the next 12 months—a 25% increase in annual origination capacity. This expansion reflects growing demand for alternative financing solutions in the commercial real estate market, particularly for transactions that fall outside conventional lending parameters.
Archway Fund will focus on first trust deed loans up to 75% loan-to-value across transaction sizes ranging from $2 million to $15 million. The platform targets borrowers unable to secure conventional CRE financing due to operational challenges including accelerated closing timelines, high vacancy rates, tenant turnover, or credit constraints affecting the sponsor or property manager. Loan terms extend up to 24 months, providing flexibility for value-add repositioning strategies. The fund will deploy capital across investor single-family residences, multifamily apartments, office, industrial, and retail properties throughout Western markets.
Mark Reese has joined Archway Fund as Vice President of Loan Origination, transitioning from a consulting role focused on platform organization. Reese will be responsible for building and managing the transaction pipeline. While operating under the Partners Capital brand umbrella, Archway Fund will function as an independent division, reflecting the JV structure's intent to maintain operational flexibility while leveraging established institutional relationships and capital access.
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