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The firm compared the leverage and yields on the B-piece with similar metrics for preferred equity or mezzanine debt investments.
As the US commercial real estate market faces a wall of loan maturities – over $1.5trn over the next three years – taking a creative approach is highly important, says ArrowMark Partners’ Rob Brown.
Lone Star founder John Grayken sees a limited window for distressed investing while most people wait for private real estate market conditions to settle. He discusses it with Jonathan Brasse.
Greystone arranged the financing package for 1057 Atlantic Avenue.
The transaction comes as Fortress is gearing up to expand its wealth management business.
The financing funds the first phase of Sterling Bay and Harrison Street’s collaborative $650m project.
Rising interest rates and the reality of a post-covid-19 world mean valuations and leverage across all asset classes will be reset. Keys being handed back on office deals is a an indicator that has begun.
In the short-term, a resolution will bring benchmark Treasury yields down slightly, especially on the short-end of the curve.
Despite a small chance of default, the market is working through potential scenarios.
The New York manager acquired the property at 444 South Flower at a UCC auction in January.