debt

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. 

National and regional banks are expected to reduce commercial real estate lending, which opens the door for the private markets. 

PacWest attempts to add liquidity as regional banking turmoil persists.

The 10-year, fixed-rate financing, arranged by Walker & Dunlop, is interest only for its entire term.

The New York-based manager received a one-year extension, with an additional 12-month extension option.