At its one-year milestone, Artes Capital has much to celebrate. During its first year of operations, Artes secured $225 million in capital commitments in its inaugural Funds and closed 57 loans comprising $240 million in gross loan volume.
Deriving its name from the Latin word for arts, Artes (ahr-tehs), the professionals at Artes Capital have proven that they are truly artisans of real estate finance, with creative, service-driven solutions tailored to each client’s unique goals and each deal’s specific contours.
According to Founding Principal & CEO Scott Taylor, the company’s powerhouse first year has “definitely reinforced our belief that a talented group of people that have the same goals can accomplish unprecedented goals. When you create an environment that allows people to flourish, they will exceed all expectations.”
Taylor attributes the company’s triumphant beginning to the collective efforts of the Artes Capital “Founders Club,” which includes “the initial investors that got us started, the borrowers that had faith in our ability to execute, and our team that went above and beyond and were willing to do whatever was required to execute on our lending strategy.”
The firm did not waver in the midst of the pandemic; instead, it turned unprecedented events into opportunity. Artes continues to lend on bank-quality assets with bank-quality borrowers, while delivering greater service with less red tape than traditional lenders. Further, its relationship-driven approach has inspired trust in uncertain times. “By going above and beyond for our clients on a daily basis, they continue to bring their future projects to Artes and also refer us to their friends,” Taylor says. “Times of stress, like the pandemic, remind clients and investors that what’s most important in this business is working with people they can trust and who will treat them fairly. Any professional relationship can thrive when times are good, but when the waters get choppy, those who have spent time developing quality and mutually beneficial relationships will be happy they did.”
As the economy continues to evolve, Artes is a steadfast resource that borrowers can turn to for future industrial, entry-level SFRs, credit tenant retail and multi-family projects. “We will continue to work with our existing relationships and lend on property types that we know well. With the ever-changing challenges that are in the market today, active communication and working with sponsors that have staying power is more important than ever. Times of turbulence provide the greatest opportunities for well-heeled investors and lenders to find opportunities that come from others’ financial shortcomings. We continue to grow our equity position in the Funds and aren’t relying on significant debt to fund growth. This will serve us well if there are any market events in the future by being able to control our own destiny without debtors that call the shots for us.”
In reflecting upon the past year, Taylor says he is most proud of the way the Artes Community worked together to exceed the Funds’ initial expectations. “We all came together and overcame obstacles to execute on our lending strategy to be the premier private mortgage REIT in the space. Starting a new fund demands balancing the expectations and requirements of a number of parties, which requires everyone to step up and be willing to do what needs to get done. You have to be agile while also sticking to your vision, which requires sacrifice, hard work and dedication. I think the results from our first year speak for themselves and prove that the Artes Community has these qualities in spades.”
Taylor expresses gratitude for the Funds’ success and anticipates a bright future based upon its strong foundation and carefully curated team. “The entire Artes Team is thankful for everyone’s support. As we look back on our first year of production, it is humbling to see all of the people that came together to make our vision a reality. We will continue to serve our investors, borrowers and everyone else that we work with on a day-to-day basis. With this incredible support system built on long term relationships, we are confident that we will be able to overcome any obstacles in the future.”
Artes Capital is a balance sheet lender providing timely and creative capital solutions for value-add acquisition, development, repositioning, and refinancing transactions for sophisticated sponsors in the Western United States. Its vertically integrated mortgage REIT platform combines loan sourcing, underwriting, closing and servicing to create a seamless internal process. Artes Capital is a valued partner to best-in-class independent developers, known for speed, creativity and certainty of execution.