IZO Capital launches $120 million structured finance platform for rental housing development

Greenwich, CT IZO Capital, a lending platform specializing in new rental housing development construction financing solutions, today announced the launch of a $120 million fund focused on originating senior stretch construction loans for middle-market rental housing developments across the U.S. The fund will target multifamily, build-to-rent, student housing, and active adult projects across the U.S. through a streamlined, developer-focused lending approach designed to provide flexible structuring, single-point execution, and certainty of execution in a challenging capital environment.

IZO Capital was created to address the growing need for flexible and reliable financing solutions within the development of new rental housing as traditional capital sources continue to pull back from middle-market development opportunities. Structured around a developer-to-developer philosophy, the firm provides a streamlined, single-point execution across senior financing solutions tailored to the complexities of residential development.

“We believe the current market environment presents a compelling opportunity to deploy capital into well-structured rental housing developments at a time when many traditional financial institutions remain constrained, around development lending,” said David Israel, co-founder and chief executive officer of IZO Capital. “With this fund, we are focused on providing developers with flexible and reliable financing solutions from a team that understands the realities of development firsthand. Our developer-to-developer approach allows us to move efficiently, structure creatively, and act as a true financing partner throughout the lifecycle of a project, while still delivering the institutional execution and discipline today’s market demands.”

“We are seeing strong demand from smaller and medium sized residential developers seeking financing partners that can move efficiently, structure creatively, and understand the nuances of complex development projects,” said Peter Porraro, co-founder and chief investment officer. 

“Our focus is on building long-term borrower relationships and providing customized capital solutions that help developers navigate an increasingly fragmented lending environment while maintaining certainty of execution.”