Broadmark Realty Capital Inc. (NYSE: BRMK) (the "Company"), today announced the launch of Broadmark Private REIT, LLC. The goal of Broadmark Private REIT is to offer qualified purchasers the ability to participate in high-yield loans originated by Broadmark Realty Capital, Inc., through a private, non-traded fund structure, which will seek to replicate the structure of the previous Broadmark Real Estate Lending Companies. The Private REIT will raise capital each month in accordance with loan demand.
"We are pleased to announce the launch of Broadmark Private REIT. In light of current market conditions, we believe that our differentiated strategy that focuses on short-term real-estate-backed senior mortgage loans will allow us to create meaningful value as we strategically deploy the capital on our fully unlevered balance sheet. Our current pipeline is strong and we remain committed to our vigilant underwriting standards, including ensuring that our borrowers have meaningful equity in their properties and requiring personal guarantees. We believe this is a unique offering which will provide an additional source of income for Broadmark," stated Jeff Pyatt, President and Chief Executive Officer.
Forward Looking Statements
This press release contains certain "forward-looking statements" within the meaning of the federal securities laws, including, without limitation, statements concerning our operations, economic performance and financial condition. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. Forward-looking statements reflect the Company’s current views with respect to, among other things, capital resources, portfolio performance and results of operations. In some cases, you can identify these forward-looking statements by the use of terminology such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words or phrases. Forward-looking statements do not guarantee future performance, which may be materially different from that expressed in, or implied by, any such statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their respective dates.
These forward-looking statements are based largely on our current beliefs, assumptions and expectations of our future performance taking into account all information currently available to us. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us or within our control, and which could materially affect actual results, performance or achievements. Factors that may cause actual results to vary from our forward-looking statements include, but are not limited to:
- factors described in Form 10-K for the year ended December 31, 2019, including those set forth under the captions "Risk Factors" and "Business";
- defaults by borrowers in paying debt service on outstanding indebtedness;
- impairment in the value of real estate property securing our loans;
- availability of origination and acquisition opportunities acceptable to us;
- potential mismatches in the timing of asset repayments and the maturity of the associated financing agreements;
- general economic uncertainty and the effect of general economic conditions on the real estate and real estate capital markets in particular;
- general and local commercial and residential real estate property conditions;
- changes in federal government policies;
- changes in federal, state and local governmental laws and regulations that impact our business, assets or classification as a real estate investment trust;
- increased competition from entities engaged in construction lending activities;
- potential disruptions in our business operations and construction lending activity relating to coronavirus (COVID-19);
- changes in interest rates;
- the availability of, and costs associated with, sources of liquidity;
- the ability to manage future growth; and
- changes in personnel and availability of qualified personnel.
About Broadmark Realty Capital
Broadmark Realty Capital Inc. (NYSE: BRMK) is an internally managed commercial mortgage real estate investment trust focused primarily on short-term real-estate-backed senior loans, including, first deed of trust loans secured by real estate to fund the acquisition, renovation, rehabilitation or development of residential or commercial properties. Broadmark Realty Capital manages and services its loan portfolio across a variety of market conditions and economic cycles.