Fifty Stones Capital Group Closes $8.5M Bridge Loan for Foreclosure Bailout in Houston, TX.

Houston, TX – April 29, 2024 – In a bold and strategic move, Fifty Stones Capital Group, a boutique private lending firm known for delivering creative financing solutions under pressure, successfully closed an $8.5 million bridge loan to prevent the foreclosure of a uniquely positioned land parcel in the heart of Houston, Texas.

In early April 2024, the property’s sponsor, a seasoned Houston-based developer, was facing a rapidly ticking clock. The asset, an 18-acre tract of prime land located just outside the Inner Loop, was entangled in a default situation stemming from delays in refinancing with a traditional lender. With foreclosure proceedings already initiated and the redemption window closing in under 21 days, the sponsor reached out to Fifty Stones Capital Group after being turned down by multiple institutional lenders unwilling to work within the tight timeframe. The clock was ticking, but the opportunity was clear.

Fifty Stones Capital Group immediately mobilized its team to assess the viability of the asset, the sponsor’s track record, and the underlying equity position. Within 48 hours of the initial inquiry, the firm had performed a site evaluation, reviewed title, structured a preliminary loan proposal, and begun legal due diligence. Despite the unconventional nature of the asset, raw land without vertical improvements, the property’s strategic location, strong comparables, and long-term development potential made it a compelling candidate.

The $8.5 million interest-only bridge loan was structured as follows:

• Loan Type: Interest-only bridge facility

• Amount: $8,500,000

• Term: 12 months, with extension options

• Payment Structure: Monthly interest payments after a 2-month grace period

• Collateral: Prime development land located within Houston city limits

• Use of Funds: Complete payoff of distressed senior lien and provide carry runway
  

Funds were wired into escrow within 3 days of the borrower signing the commitment, narrowly beating the foreclosure deadline.

This transaction not only preserved the sponsor’s equity, estimated at over $6 million, but also positioned them to reenter the market for a long-term development capital partner without the burden of default or litigation. “This was more than a financing, it was a strategic rescue,” said Mark Shea, the CEO of Fifty Stones Capital Group. “We specialize in solving capital problems where conventional lenders freeze. Our ability to move quickly gave this sponsor a second chance at executing on what we believe is one of the best infill land positions in Houston.”

About Fifty Stones Capital Group

Fifty Stones Capital Group is a leading private real estate lender specializing in creative capital solutions for transitional, time-sensitive, and non-bankable real estate opportunities. The firm serves developers, operators, and investors across the U.S. with loan offerings ranging from $5 million to $80 million, including bridge, construction, and special situation financing.

Fifty Stones is defined by its speed, deal certainty, and commitment to partnering with sponsors through the ups and downs of real estate cycles.