Anna-Marie Beal
The market is inherently cyclical. But secular trends are increasingly affecting workout strategies.
Good candidates are those who can think past the end of the term of a loan.
The manager reckons the current market dynamic is resulting in two key trends – one is acquiring loans directly from Fannie Mae.
The ongoing banking pullback is the building blocks for this activity, said Alan Purser, global head of capital formation.
The Milwaukee-based manager is looking at lenders with a deeper understanding of the sector.
Mitigants include a relationship approach to banking and exposure in well-known markets, said Joseph Scott, senior managing director at KBRA.
Investors are shifting their focus towards higher returns, higher risk profile strategies.
Chief financial officer Chris Condelles said the investment demonstrates how periods of dislocation often present opportunity.
Goldman Sachs’ newly originated loan on the retail component of 680 Madison Avenue in New York demonstrates the changing opportunity set for the sector.
The Toronto-based manager secured the refinancing package from Morgan Stanley among other lenders.