banks

The Miami investment manager has a $1.2bn pipeline of lending deals on which it will execute over the next two years.

Institutional investors are at or near their allocations to commercial real estate, which is also having an impact on capital raising. 

The firm incorporates the potential for natural disasters, like flooding or hailstorms, into its investment calculus as it seeks to invest. 

Real estate debt specialists say the partnering of lender types is a means of necessity rather than innovation.   

Commercial real estate valuations are under pressure and delinquencies are rising, but most bank management teams have maintained conservative underwriting metrics.

PGIM Real Estate wants to further scale its lending platform. But the firm does not want to be all things to all borrowers.

The firm has closed about $100m of new loans since opening its doors in May and all of them have been bridge financings.

Mitigants include a relationship approach to banking and exposure in well-known markets, said Joseph Scott, senior managing director at KBRA. 

There will be several chapters to the story of the office sector's next recovery, says global chief investment officer David Steinbach.

While costs have been rising for the past decade, they are now having an impact on investment decision-making.