Samantha Rowan

While lenders had never abandoned the office sector, capital is more widely available than in the recent past, CIO John Rivard says.

Debt strategies made up about 17% of all capital raised for commercial real estate last year, down from the 19% seen during the same period in 2020.

The company deployed $60m of debt capital in 2021 and is hoping to allocate at least another $150m to this segment of the market in 2022.

Varde Partners and Hawkins Way Capital are set to deploy more than $1bn into value-added and distressed hospitality and residential assets.  

It is part of a $138.7m financing package for Grand Heritage Hotel Group.

Last year’s strong performance stemmed from a faster than expected recovery from the covid-19 pandemic, according to the firm's head of US real estate investment trust and commercial real estate debt research.

The portfolio lender is addressing needs of borrowers looking to unlock equity in assets owned for lengthy time periods and those using preferred equity to up leverage on bigger portfolio acquisitions.

Real time analysis coming into its own, rising liquidity premiums for niche sectors and Fed rate hikes are expected to drive US commercial real estate debt markets this year.

The REIT is asking what the staying power is for borrowers and lenders in this position.

Jay Sugarman, chairman and chief executive of ground lease specialist Safehold, believes a new take on an old structure could lead to a $500bn industry.