capital markets

The roughly 670,000-sq-ft trophy office is about 90% leased.

The firm originated the loan on behalf of The Dinerstein Companies, a relationship borrower.

The commercial real estate market, which has been in a value correction cycle for the past two years due to higher interest rates and cap rates, will see this correction continue until interest rates settle. 

The financing is notable given the paucity of capital allocated to the office sector as well as a decline in construction lending over the past year to 18 months.

The optimism comes as the commercial real estate debt markets gear up for an estimated $930bn of refinancing.

As banks seek to address commercial real estate exposure, alternative lenders are stepping in to acquire or help restructure loans.

Today’s market requires a lot of creativity because a lot of solutions that sponsors are looking for on assets that have capital needs are not necessarily available.

The firm is not planning to join the ranks of investors who are seeking short-term lending solutions.

The firm expects rates to stay higher for longer, bringing more creative financing opportunities over the next 18 months and beyond.

The firm has hired Jay Dunn from RFR Realty to head up capital raising and debt capital markets as it looks to execute on a heavy multifamily and residential pipeline.