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Higher interest rates could also stall efforts to refinance maturing debt.
The global manager offers residential investors equity-like capital, lending around $40m per project.
A 25 basis point increase would be a rise in the Federal Funds target rate from its current level of 4.75-5% to 5-5.25%.
The Boston-based manager still sees difficulty lining up debt for most projects.
New York Life Insurance Company and MetLife Investment Management funded the loan.
The platform aims to provide senior debt solutions for borrowers focusing on transitional properties in key growth markets.
The New York company also sees a longer road to recovery for the city's CRE market.
Paradigm Advisory Group, formed by Raymond Chalme and Daniel Blanco, aims to help lenders and borrowers stabilize the value of New York’s office and residential assets.
Should the CMBS market be used to resolve potential problems at regional banks, there are questions about how this could play out, however.
The discounted sale of the class A Los Angeles tower sheds some light on where values are today but does not consider a more normalized working environment.