Home Debt
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The firm is the first African American- and women-owned lender to obtain a DUS designation.
Corebridge Financial funded the loan, with The Baupost Group providing additional equity.
The reasons behind the drop are easy to understand: a combination of lower transaction volume, higher interest rates and the steepest inflation in 40 years.
The firm's head of real estate debt portfolio management says that sidelined banks are shifting the paradigm for active lenders.
Red Oak Capital, Pensam and Tower Capital are among the managers rolling out or expanding customizable programs.
More commercial real estate borrowers are taking a different tack in trying to manage rising interest rates, looking at the potential for assuming seasoned, in-place debt as an alternative to obtaining new financing when making acquisitions.
The financing was arranged on behalf of Royal Palm Companies, with a loan term of 36 months.
The loan is backed by properties with diverse locations and tenants.
Robin Potts, co-head of real estate investments at Canyon Partners, talks with Real Estate Capital USA about navigating a period of historic volatility.
Despite headwinds around CMBS issuance, downgrade risks are not severe.