AS SEEN IN THE PHILADELPHIA BUSINESS JOURNAL, "SPRING GARDEN UPS INVESTMENT CAPACITY TO $150M WITH FUNDRAISING"

Philadelphia-based Spring Garden Capital Group, which provides bridge financing to real estate developers, said it has completed a $25 million equity fundraising round. Coupled with a $20 million increase of its line of credit from a syndicate of local banks led by OceanFirst Bank, Spring Garden has upped its investment capacity to $150 million.

The OceanFirst line of credit increased from $85 million to $105 million. Before raising the additional $25 million in equity, Spring Garden Capital Group had more than $20 million in existing equity.

Spring Garden Capital Group is the newly formed parent company of Spring Garden Lending, which was established in 2015, and brings under one roof Spring Garden Equity, the firm’s project equity fund, and Spring Garden Capital Advisors, the company’s consulting arm.

The company said investors in the round include many individuals who have been with Spring Garden since its inception, as well as substantial investments from OceanFirst and institutional and individual “impact investors” who seek positive social return alongside their financial returns. These included Reinvestment Fund, Community First Fund, the Philadelphia Community Impact Fund, and multiple investors from Investor’s Circle.

Led by former Valley Green Bank CEO Jay Goldstein, Spring Garden’s business model supports entrepreneurs who have historically faced barriers to securing funding from traditional capital sources – including women and people of color – as well as the projects it finances, which frequently consist of affordable and workforce housing.

Spring Garden said it will use the new capital to continue to grow its assets by financing more transactions in its existing markets, especially as traditional banks tighten credit availability amid the ongoing liquidity challenges in the banking industry. In addition, Spring Garden said it will continue to grow its footprint, with plans to add multiple new markets over the next five years. The company first expanded outside of the Philadelphia region into Baltimore in 2018 and Washington, D.C., in 2019, followed by Lancaster and Harrisburg in 2020 and Pittsburgh last year.

Spring Garden caters to local developers who need short lead-times of three to four weeks to take advantage of investment opportunities for largely residential projects but do not want to turn to expensive non-bank lenders.

Spring Garden Capital Group is the newly formed parent company of Spring Garden Lending, which was established in 2015, and brings under one roof Spring Garden Equity, the firm’s project equity fund, and Spring Garden Capital Advisors, the company’s consulting arm.

The company said investors in the round include many individuals who have been with Spring Garden since its inception, as well as substantial investments from OceanFirst and institutional and individual “impact investors” who seek positive social return alongside their financial returns. These included Reinvestment Fund, Community First Fund, the Philadelphia Community Impact Fund, and multiple investors from Investor’s Circle.

Led by former Valley Green Bank CEO Jay Goldstein, Spring Garden’s business model supports entrepreneurs who have historically faced barriers to securing funding from traditional capital sources – including women and people of color – as well as the projects it finances, which frequently consist of affordable and workforce housing.

Spring Garden said it will use the new capital to continue to grow its assets by financing more transactions in its existing markets, especially as traditional banks tighten credit availability amid the ongoing liquidity challenges in the banking industry. In addition, Spring Garden said it will continue to grow its footprint, with plans to add multiple new markets over the next five years. The company first expanded outside of the Philadelphia region into Baltimore in 2018 and Washington, D.C., in 2019, followed by Lancaster and Harrisburg in 2020 and Pittsburgh last year.

Spring Garden caters to local developers who need short lead-times of three to four weeks to take advantage of investment opportunities for largely residential projects but do not want to turn to expensive non-bank lenders.