Exciting recent moves have seen the company name a new managing director
This article was produced in partnership with Firm Capital
Fergal McAlinden, of Canadian Mortgage Professional, sat down with Michael Carragher and Justin Wallin of Firm Capital to discuss the company’s expansion in Alberta and priorities for 2022.
It’s been an eventful year to date for Firm Capital, with the company having expanded its lending presence in Western Canada through the appointment of mortgage industry veteran Justin Wallin to a key role in its Calgary office.
Following that big announcement, the alternative lender’s message is that it “looks forward to establishing new business relationships,” with brokers, the new hire told Canadian Mortgage Professional.
The company is coming off a landmark 2021 that saw it complete over $1 billion in new mortgage financings, and the appointment of Wallin – who’s been named managing director, mortgage investments, Western Canada – is aimed at taking its business in the west of the country to the next level.
Wallin said growing the company’s footprint in Alberta and developing new relationships with that province’s mortgage brokers were two of his key priorities in the new role.
“Firm Capital is a well-known name within the industry but was not known as being an overly active participant in the west,” he said. “There was a perception that we were more focused on eastern Canada. We’d like to become a ‘go-to’ option for mortgage brokers and real estate developers in Western Canada – a lender who has a good understanding of the local marketplace and can get deals done in an efficient manner.”
The non-bank lender’s 35-year track record in Canada dates back to 1988, with current mortgage investments under management totalling $1.4 billion. It specializes in bridge financing: first and second mortgages, land and construction financing, secondary debt on investment properties and more, with the company’s market knowledge and deal structuring expertise giving it an edge in the market, according to vice-president Michael Carragher.
“We pride ourselves in understanding a transaction quickly and structuring competitive offers that feature flexibility in addition to a high level of service for experienced real estate investors,” he said.
The company’s loans range between $1 million and $50 million (with up to $100 million available for select opportunities), and Carragher said its team comprises “seasoned veterans” whose multi-cycle track record of experience and close collaboration with clients deliver successful results for all stakeholders involved.
Wallin, who spent 13 years in Canada’s commercial mortgage space, viewed the role with Firm Capital as an excellent opportunity to enter the alternative and bridge financing side of the market, as well as gaining knowledge and experience in putting together creative deals.
It also helps that Firm Capital had already established a track record of growth in Alberta, a clear indication of its potential in the west, he said.
“The fact that Firm Capital’s affiliated entity, Firm Capital Property Trust, as a public REIT has been active in acquiring $81 million of investment properties in Alberta over the last few years gave me the confidence to join the team to expand its lending platform in Western Canada,” Wallin explained.
The lender’s presence in the Alberta real estate market actually stretches back to 2005, with Carragher noting that it had seen strong opportunity there during the last two years.
“Over the past seven to eight years Alberta has experienced a difficult economy going back to the oil downturn of late 2014,” he said. “Firm started to see in the past 24 months a market that offered reasonable valuations along with balanced inventory levels when it comes to the residential and industrial markets.
“As a result, we made the decision to become more active in the market. We feel it’s important to have local people on the ground to build relationships and allow us to make better decisions and be more visible and consistent in that market.”
Overall, in 2022, Firm Capital is focusing on low-rise housing, mid-rise and hi-rise condominium projects on the residential side, with infill construction financing and land financing programs as well as an alternative residential lending program.
It offers first and second mortgages on investment properties, with bridge financing for acquisitions as well as capital expenditure programs and secondary debt on investment properties.
As the market enters somewhat uncharted waters, Carragher emphasized the importance of working with a lender whose track record and reputation speak for themselves.
“Given the current market environment, it’s important for builders, developers and investment property owners to deal with an experienced non-bank lender like Firm Capital which has proprietary capital and the ability to make decisions quickly,” he said. “We are one of the one of the most versatile and experienced lenders in the alternative lending industry and look forward to working with you. Give us a call.”
Firm Capital is an alternative lender with 35 years of experience in Canada’s mortgage space
