Company cites "rapid uptick in ultra-high-net-worth realty" as the reason behind the move
Non-bank lender PCMA has announced expanding its private client lending business into the Illinois luxury housing market.
PCMA said the move comes amid “extraordinary growth” in the company and a boom in Chicago’s luxury housing market. According to data from Crain’s, Chicago saw a record number of luxury home sales in 2021, with 3,480 million-dollar homes sold, up 20% from the previous year. In addition, sales of Chicago homes valued at $4 million or more also doubled to 100 home sales in 2021.
“High-net-worth households have complicated and diverse estates that are fueled by the economic growth in the stock market, making it no surprise to see the rapid uptick in ultra-high net worth realty,” said PCMA founder and CEO John Lynch. “At PCMA, we are honored to work with the distinguished private clients of Illinois, giving them access to credit services that celebrate their success without the friction of traditional lending.”
Despite rising interest rates and economic uncertainties, PCMA expects to continue experiencing growth of high-net-worth originations at a record pace this year.
“If you only focus on traditional mortgage channels, you will notice that luxury real estate has been mostly trading on all-cash offers,” Lynch added. “Paying all cash for a luxury property is not ideal for the high net worth sector, so we created The Collective, a streamlined approach to asset-based lending removing the need to pay all cash, collateralize or pledge vested holdings. These bespoke flexibilities were not available to the high-net-worth communities of Illinois before our expansion.”
