OptioLend Launches Commercial Real Estate Marketplace

Navigating Challenges in Commercial Real Estate

The commercial real estate sector currently confronts significant headwinds. These are largely attributable to the increasing prevalence of remote work arrangements, diminishing the demand for traditional office spaces. Simultaneously, the retail landscape is undergoing a transformation, as consumer purchasing habits increasingly shift towards online platforms.

However, periods of market downturn often catalyze innovation and opportunity.

Introducing OptioLend: A New Marketplace

OptioLend is a recently launched startup designed to empower individual investors within the commercial real estate market. The company aims to connect investors with a diverse network of lenders, facilitating access to optimal financing solutions. Based in Columbus, Ohio, the platform officially began operations on Tuesday, following a period of private beta testing.

The platform leverages an AI-powered algorithm and a comprehensive database encompassing over 9,500 capital sources. This technology assists prospective borrowers in identifying lenders offering the most favorable terms. Essentially, OptioLend aspires to become the leading online marketplace for commercial real estate lending, mirroring the functionality of LendingTree.

Built on Expertise

Joel Lowery, a former executive from LendingTree with extensive experience in platform development, played a key role in building the OptioLend portal. He contributed as a technical advisor, alongside former data scientists from IBM.

Upon submission of a loan application, OptioLend’s system identifies up to 20 lenders best aligned with the applicant’s profile, based on their recent lending activities and other relevant criteria. Borrowers and brokers can then negotiate and finalize agreements directly within the platform, benefiting from a largely automated process.

To further support users, OptioLend also provides a “concierge service” staffed by experienced capital advisors, offering guidance throughout the loan procurement process.

Seed Funding and Market Positioning

OptioLend secured approximately $1 million in seed funding last year. The investment round was led by the Schottenstein Family Office, with participation from Loud Capital and MLG Ventures. Notably, the Schottenstein family is a prominent player in the private real estate sector.

CEO Richard Geisenfeld highlights a distinction in the lending landscape. He notes that while numerous lenders are available for deals under $10 million, a comparatively smaller pool of capital sources focuses on larger transactions exceeding that amount.

“Current capital markets are witnessing a 50% increase in both refinancing and new loan applications as the economy recovers from the impacts of COVID-19,” Geisenfeld stated. “With existing loans maturing, we believe the timing for our launch is ideal. We anticipate significant property repurposing and redevelopment initiatives.”

Focus on Individual Investors

While OptioLend serves both institutional and individual investors, its primary focus lies with the latter.

“Institutions generally have ample options available to them,” Geisenfeld explained. “Individual investors, however, often face limited choices.”

Geisenfeld brings a wealth of experience to the role, having personally facilitated approximately $1.7 billion in transactions across 44 states as the founder of Capital Commercial Partners. He previously represented the Schottenstein family for nearly two decades before conceiving the idea for OptioLend.

The Genesis of OptioLend

Prior to the company’s formation, the Schottenstein Family Office contacted over 50 lenders to secure financing for a small portfolio of single-tenant, triple-net properties. They discovered significant variations in interest rates, ranging as much as a full percentage point.

“Through our dealings, we consistently heard that more competitive loan rates were available, and we recognized the need for increased efficiency and automation,” Geisenfeld shared with TechCrunch. “Our goal is to revolutionize the traditional methodology, increasing an investor’s access to capital tenfold within just ten minutes.”

Platform Capabilities and Broker Incentives

The startup’s services extend beyond new loan applications to include refinancing of existing assets. OptioLend specializes in middle-market transactions, typically ranging from $1 million to $10 million.

The platform welcomes collaboration with both commercial real estate and mortgage brokers. Brokers can utilize the platform directly or refer property owners, earning incentives of up to 50% of the original fees for successful referrals.

Ensuring Optimal Terms

David Schottenstein, principal of Schottenstein Family Office, emphasized that borrowers with limited access to capital often accept loan terms with interest rates up to 100 basis points higher than necessary.

“OptioLend’s ability to quickly present deals to multiple lenders ensures borrowers receive the most advantageous terms possible,” he added.