S3 Capital has surpassed $10 billion in construction loan originations, a milestone that reflects private lenders’ growing role in financing housing development after regional banks retreated from the market.
The private construction lender has originated more than 925 loans totaling approximately $10.2 billion since launching its credit business in 2013. Its volume has accelerated recently, including roughly $3.3 billion originated during the past 12 months and approximately $2 billion since the beginning of 2026.
S3 attributed that acceleration partly to regional banks pulling back from construction lending beginning in 2023. The resulting liquidity gap has given specialized private lenders an opening to finance developers that previously depended on banks.
“We built S3 to be the lender we always wished we had as developers. By designing a platform specifically tailored to construction lending, we were able to dramatically improve the funding process for our borrowers,” said Joshua Crane, co-founder and managing principal at S3 Capital. “When the regional banks pulled back from the market in 2023, we were well placed to capitalize on the liquidity gap which has fueled significant growth since then.”
S3 primarily provides first-lien construction loans for housing-oriented commercial developments in supply-constrained markets. Its loans typically range from $1 million to more than $300 million and can finance projects at different stages of construction.
The firm’s recent transactions show that its growing volume spans rental housing, condominiums, student housing, office conversions, and for-sale residential development.
In June, S3 provided a $101 million construction loan for Visions Orlando, a multiphase residential community in Florida expected to deliver 467 for-sale units. It also supplied $102 million for the conversion of an office property at 311 W. 43rd St. in Manhattan into 160 rental units.
Other recent transactions include a $131.5 million loan for a 276-unit student housing development in Manhattan, a $116 million loan for a 759-bed student housing project at Texas State University, and a $344.75 million financing package for a Florida waterfront development expected to deliver more than 500 condominium units and a 20-slip marina.
S3 also entered Pennsylvania, Connecticut, Missouri, and South Carolina for the first time in 2026 while increasing its activity in Texas.
The growth illustrates how construction financing is migrating toward private credit providers that can offer developers greater flexibility than many traditional banks. S3 services its loans internally through an operation encompassing origination, asset management, and construction management.
The firm said that structure generally allows it to fund construction draw requests within five days. S3 can also provide multiple draws in a month when a project is progressing more quickly than expected.
“Crossing $10 billion in originations is a reflection of not just the volume of capital deployed, but the consistency and discipline with which we have deployed it,” said Robert Schwartz, co-founder and managing principal at S3 Capital. “This achievement also underscores how the construction financing market has evolved in recent years. Borrowers who previously relied on bank financing are increasingly seeking out specialized private lenders.”
For mortgage lenders and originators, the shift carries implications beyond the construction finance market. The projects receiving capital today will help determine the type, location, and price point of housing inventory available to finance in the coming years.
