debt

The multifamily sector continues to be a favored place for lenders and investors, buoyed by the supply-demand fundamentals. 

Higher interest rates continued to stall the US commercial real estate market in 2023, but alternative lenders and their investors are hopeful that opportunity will knock in 2024.

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. 

Yarbrough said he believes the market is coming closer to bottoming out and this creates strong investment opportunities

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.

CBRE IM and Hillwood will use the funding for Phase 1 of speedway conversion into a 6.6 million-square-foot industrial complex.

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.