Samantha Rowan

Specialist lenders are gearing up for distress in various ways, such as creating short-term structured credit platforms to originate mezzanine debt or preferred equity.

The largest fund closed in 2023 to date is Marathon Secured Private Strategies Fund III, which had $1.7bn raised.

Cyclical and secular changes will lead to new uses for old strategies, innovation and adaptation.

Over the long-term, the firm hopes to have half of its portfolio in the US and other developed markets.

Pennyslyvania Public School Employee's Retirement System have made the second largest investor commitment so far this year, with $200bn committed to the PIMCO Commercial Real Estate Debt Fund II as of September 5.

The Real Estate Capital USA Lending Barometer tracks non-securitized senior mortgage and mezzanine and preferred equity financings across markets and sectors.

More C-PACE records are being set as sponsors seek lower-cost capital for construction and retrofit projects.

The transaction market remains stymied by a wide gap between buyers and sellers.

Loan originations were roughly flat in July and August, with a tilt toward construction financings or refinancings of stable properties.

Negative headlines in the mainstream press may center on other pressure points, but market participants are focused on the possibility of further rate increases.