Many of these bonds are yielding much more than the 10-year Treasury, which is hovering in the range of 2 percent.
The Fed hopes to combat inflation this year with three substantial rate increases, but the hikes were expected and lenders will be more impacted by spread movement, market participants said.
Many lenders are focused on high-growth markets where life sciences and data storage are key sectors and DIGITAL drivers – trends linked to demographics, infrastructure and globalization – come into play.
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 partners hope to originate more than $2bn of loans across sectors in the US over the next few years.
-80x80.jpg "How rising Treasury yields are changing the math for US multifamily")
Panelists on Ariel Property Advisor’s latest webinar discussed cap rate compression in the context of multifamily in cities like New York – some saying investors will flee the city, others calling it a safe haven.
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.
PERE's Investor Perspectives 2022 Study tracks investor sentiment toward private real estate heading into the new year.
Varde Partners and Hawkins Way Capital are set to deploy more than $1bn into value-added and distressed hospitality and residential assets.