‍

1892 Capital Partners is pleased to share that our Fund Director, Charles M. Farnsworth, was recently featured on the A.CRE Consulting Podcast, with host Michael Belasco. In this episode, Charles walks through his three decades in real estate, investment, finance, and banking, and how those experiences shape the way 1892 approaches private lending today.

As a family operated firm based in the Seattle Tacoma region, 1892 Capital Partners focuses on filling the gaps left by traditional lenders. From RV parks to car washes and regional multifamily deals, Charles and the team provide flexible, long-term lending solutions for projects that need thoughtful capital rather than a one-size-fits-all box.

🎧 Listen to the full episode → https://www.adventuresincre.com/acre-consulting-podcast-s1e8/

The Origin of 1892 Capital Partners and the Family Office Advantage

Early in the conversation, Michael introduces Charles’s background and the history of 1892 Capital Partners. The firm is part of a fifth-generation family enterprise that began in sand and gravel in 1892 and has since grown into a diversified real estate and investment platform.

-operated firm based in the Seattle-Charles explains that 1892 operates as a true private credit lender within a family office structure. The lending arm is funded largely by a single family and run alongside an assets under management arm. That structure matters. It means the team does not answer to quarterly fundraising cycles or external investors with short-term performance demands.

Instead, 1892 can:

➖ Take a five to ten-year view on lending decisions
➖ Remain lean, flat, and nimble with a small decision-making committee
➖ Focus on relationships and regional expertise rather than product quotas

This long-term, legacy-driven perspective allows the firm to make lending decisions that are often not possible for institutional funds or larger credit platforms.

Private Lending That Fills the Gap

Throughout the episode, Charles returns to a central theme. 1892 Capital Partners focuses on gap financing in the range of approximately two to twelve million dollars. These are deals that make sense on the ground but often fall outside the comfort zone of regional banks and conventional lenders.

Examples include:

➖ RV park development, such as the RV@Olympic project in Port Angeles
➖ New construction car wash projects, like Glacier Car Wash in Milton
➖ Bridge loans for completed apartment buildings where the original lender wants out
➖ Land, entitlement, and plat projects that require thoughtful structuring

Rather than specializing in a single asset type, 1892 looks at the fundamentals of each opportunity, the quality of the sponsorship, and the strength of the collateral. The goal is not to compete with banks, but to step in where traditional financing hesitates, and structure deals that allow solid projects to move forward.

‍

How 1892 Thinks About Risk, Collateral, and Capital Stacks

Michael and Charles talk about what 1892 looks for when a new deal comes in the door. Charles emphasizes a few core principles that guide their underwriting.

1. Start with collateral
1892 is fundamentally collateral-based. Strong real estate collateral gives the firm room to navigate issues such as higher loan-to-cost, imperfect sponsor experience, or thinner cash reserves.

2. Be honest about value
Many of the projects' 1892 funds do not fit neatly into a conventional category. That is why feasibility studies, appraisals, and outside consultants are often part of the process, especially for first-time asset types such as RV parks or car washes.

3. Respect creative capital stacks
Modern commercial real estate deals often involve syndications, multiple partners, and layered equity. Charles notes that many lenders struggle with these structures, especially when not everyone can sign on to a recourse note. 1892 is willing to look at more complex capital stacks as long as the collateral, business plan, and team make sense.

4. Keep the process approachable
Rather than a rigid application portal, the firm encourages borrowers to simply call or email Charles to talk through a deal. From there, the loan committee meets weekly to review opportunities that fit the basic guardrails on geography, size, leverage, and asset type.

Advice for Borrowers and Emerging CRE Professionals

Because the A.CRE audience includes many young professionals and early-stage sponsors. Michael asks Charles for advice on what to do when approaching a private lender like 1892 for the first time.

Charles encourages borrowers to:

➖ Know their options and understand why a bank may have passed
➖ Be clear about collateral, costs, and exit strategy
➖ Invest in subject matter expertise, especially when entering a new asset class
➖ Build trust-based relationships rather than treating capital as purely transactional

He also shares his view that relationships are often built years before any transaction takes place. In his own story, a straightforward conversation with the Corliss family more than a decade ago evolved into a long-term friendship, and eventually into the opportunity to build out 1892 Capital Partners as their lending platform.

His philosophy is simple. Show up to help, be honest when a product is not the right fit, and let relationships grow over time.

Navigating Black Swan Events and Market Shifts

The episode also touches on lessons from past cycles. Charles notes that some of the most difficult lending experiences in his career have come from black swan events, such as the 2008 financial crisis and the rapid interest rate increases that followed the COVID era.

He emphasizes that:

➖ Real estate usually provides some time to adjust, but sudden rate shocks can still disrupt deals that have been in the pipeline for years
➖ Short-term loans and disciplined leverage give both lenders and borrowers more room to pivot
➖ Cap rates and pricing take time to adjust to new rate environments, and the industry is still working through those shifts

Throughout the conversation, Charles returns to a steady message. Long-term thinking, strong collateral, and realistic expectations create more resilient portfolios than chasing volume or trying to time every moment perfectly.

Why This Episode Matters

For brokers, developers, and investors operating in Washington, Utah, and beyond, this conversation offers a clear window into how a family office lender thinks. It shows how flexible private credit can support well-conceived projects that are not easily financed through conventional channels.

From the RV@Olympic development to Glacier Car Wash to regional bridge loans, Charles’s stories reveal how disciplined creativity can move real projects forward while protecting capital and relationships.
‍

🎧 Listen to the full episode
A.CRE Consulting Podcast – Season 1, Episode 8
https://www.adventuresincre.com/acre-consulting-podcast-s1e8/

Connect With Our Team

If you are working on a project in Washington, Utah, or Hawaii and believe it could be a fit for private lending, our team would be glad to talk.

Charles M. Farnsworth
Fund Director, 1892 Capital Partners
(253) 592-3452
charlesf@1892capital.com