How Private Credit is Filling the Construction Lending Gap in New England

Written by:

Date:

08 Jul 2026

Regional bank consolidation has been reshaping construction lending across the United States for the better part of two years. Still, its effects are playing out with particular intensity in New England. As larger institutions merge and tighten their balance sheets, developers across the region are increasingly turning to private credit providers to keep projects moving. Ascent Developer Solutions is among the firms stepping into that space, having recently opened a Boston office to serve the Northeast market directly.

Leading that push is Mario Massimino, who joined Ascent as Senior Vice President of Sales in late February after years on the development side of the business as a partner at MB Financial. That background gives him a perspective that is relatively uncommon among lenders; he has sat across the table from institutions like Ascent as a borrower. He understands firsthand what developers need when capital is on the line.

A Market Shaped by Consolidation

The lending environment in New England has tightened steadily as regional banks merge and rebalance their loan portfolios. Massimino notes that local banks now often impose depository requirements and longer approval timelines that make construction financing less predictable for developers. “There’s been some tightening with local regional banks,” he says.

That uncertainty is pushing even well-capitalized sponsors to explore alternatives. Developers who would typically qualify for traditional bank financing are now entertaining conversations with private credit providers because of how long it takes to close or manage construction draws through a bank. “A lot of institutional developers that are very bankable with local regionals have been willing to talk with us,” Massimino explains. The issue, in many cases, is not creditworthiness; it is speed and flexibility.

Ascent’s pitch to those developers centers on leverage and execution. For approved sponsors, the firm can close in two to three weeks. New sponsors typically see a 30- to 45-day timeline. Once a deal is closed, draw requests are processed typically within two to three business days, a meaningful operational advantage on active construction sites where delays in funding can cascade quickly into cost overruns.

What’s Crossing the Desk

The range of projects Ascent is financing reflects New England’s distinct development landscape. Fix-and-flip loans below $3 million sit alongside high-end luxury single-family conversions, Back Bay brownstone renovations, multifamily gut rehabilitations, and small-to-mid-size office-to-residential conversions. That last category has become increasingly relevant as vacancy rates in older office stock have remained stubbornly elevated since the pandemic.

Developers are retrofitting underused office buildings to address persistent housing shortages across the region. But the conversions are rarely straightforward. New England’s building stock skews old, much of it dating to the late 1800s and early 1900s, which means structural and mechanical complexity that goes well beyond what developers in newer markets typically encounter. “It’s more heavy construction than your typical fix and flip or conversion throughout the country, where it’s more cosmetic,” Massimino notes.

One active deal illustrates the kind of structured financing Ascent is deploying: a 157-townhome development on a previously unentitled site that recently received approvals. Ascent is providing horizontal construction financing with an automatic conversion mechanism built into the term sheet that rolls the loan into vertical construction once site work is complete. For the developer, that structure eliminates a refinancing event and the uncertainty that comes with it. “When they sign their term sheet, they don’t have to worry about the next step,” Massimino explains.

The Case for Local Presence

Beyond deal structure, one factor that comes up consistently in conversations with New England developers is the preference for face-to-face relationships. It is a cultural reality of the region that national lenders operating remotely have sometimes underestimated. “New England, being the oldest part of the country, has a lot of traditional vibes, people like to meet in person,” Massimino says. Boston’s geography helps: the city sits within roughly a two-hour drive of most major New England markets, making it a practical base for covering the region.

Massimino and his team of loan officers – Christopher Sava, Matthew Pedone, and Anthony Capelli – are making site visits and in-person meetings a standard part of their process. That ground-level engagement is also helping address long-held assumptions about private credit. Developers who have spent their careers working exclusively with regional banks often carry skepticism about private lenders, assumptions about cost, reliability, or complexity that do not necessarily reflect current market conditions.

“A lot of the time they would tell me, ‘Historically, I would never want to entertain working with a private credit lender,’ and then once they see what our capabilities are, they change their mind,” Massimino says.

Developer Sentiment and Deal Flow

Despite the financing constraints, development activity in New England has not stalled. Many sponsors are moving through the entitlement process on cash-acquired land and reaching out to lenders once projects are shovel-ready. Others are engaging Ascent earlier, during the entitlement phase itself, to have financing lined up before approvals are finalized.

Housing supply remains the underlying driver. With limited greenfield land available in most New England markets, much of the development activity is channeled into conversions and infill projects, work that requires lenders comfortable with complexity and capable of moving quickly when opportunities arise. “Throughout New England, there’s a shortage of housing, and developers are looking for unique opportunities to provide affordable housing across the market,” Massimino notes.

For private credit providers with the infrastructure to underwrite and fund these deals, the current environment represents a genuine opening. Regional bank consolidation shows no signs of reversing, and the operational disruptions that accompany mergers – longer timelines, shifting personnel, rebalanced portfolios – are likely to persist for years. The question for developers is whether private credit firms entering the market can deliver on execution as consistently as the regional banks they are replacing. Ascent is betting that a combination of competitive leverage, fast draw cycles, and local relationship management will make that case deal by deal.

About the Expert: Mario Massimino is Senior Vice President of Sales at Ascent Developer Solutions, leading the firm’s Boston office and Northeast expansion. His background includes prior experience as a partner at MB Financial on the development side of the business.

This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.

Real Estate Investment

Residential Real Estate

Office