The asset class is becoming more stable collateral in CMBS deals, says a new Academy Securities report.
New York manager targeting more multifamily, select office opportunities in South Florida.
The firm is looking to grow its debt platform and recently hired Dean Dulchinos as head of debt portfolio management to oversee activity.
The Los Angeles-based multifamily specialist believes there are not enough buyers, sellers or lenders to make a functional market.
As this shift occurs, the firm is seeing more interest from investors who like the way debt looks when stacked up against an uncertain equity market.
While there is growing interest in debt as an investment, Azelby noted the equity and the debt sides of the business remain distinct.
The debt fund provides small-balance sheet loans for commercial real estate.
A lower leverage, liquidity-constrained environment makes it a good time to be a lender, market participants say.
About 26% of all capital raised during the first nine months of the year was allocated to the sector.
GFP Real Estate, Metro Loft Management and Rockwood Capital have secured a $536m loan from MSD Capital and Apollo to finance what will be the largest-ever office-to-residential conversion in the US.