interest rates

The median real estate manager could beat private equity returns by 20 basis points over the next decade, he said at PERE Network’s America Forum.

In a newly published white paper, the New York-based advisory company cites the costs of scaling lending platforms, the impact of more complex capital structures, and a rise in specially serviced loans. 

The Fed’s recent rate cut is not expected to significantly move the needle for commercial real estate lenders and borrowers, but provides and indicator of stability.

Timothy Sloan, head of commercial real estate debt at Fortress Investment Group, says the firm sees the strongest long-term outlook for senior loans. But in today’s market, its history as a distressed investor will still be critical.

The Federal Reserve’s decision to cut interest rates by 50 basis points is not expected to have a significant impact on commercial real estate lending and borrowing.

An expected 25-basis point rate cut at the Federal Reserve’s next meeting will be pivotal as private equity funds seek to deploy dry powder.  

Lenders are increasingly extending loans – but only if there is a real path forward.

The market is inherently cyclical. But secular trends are increasingly affecting workout strategies.

The manager reckons the current market dynamic is resulting in two key trends – one is acquiring loans directly from Fannie Mae.

Ahead of the Federal Reserve’s June 11 meeting, hopes for rate cuts have plummeted from as many as three to potentially none.