Evelyn Lee
New vehicle is the firm's first commingled fund for its global commercial real estate credit business.
Most assets need an additional 15-20% in reserves to address refinancing issues, according to the advisory firm’s co-founder.
The firm has launched the strategy at a time when real estate financing ‘is a pretty broken market', according to CEO Jon Winkelried.
The New York-based banking giant has been working to actively reduce its balance-sheet exposure to the sector since the start of the year.
KKR global real estate head Ralph Rosenberg expects capital constraints to also cause pain for owners outside of the office sector.
The chief executive of the Swedish private equity firm’s real estate platform expects 20% of Value Fund VI to be invested in distressed debt.
The veteran of the New York-based firm will be one of the few senior managing directors to have left Blackstone's real estate team.
However, some institutions believe equity deals still are more attractive than debt investments in multiple respects.
With loans maturing and banks retrenching, alternative lenders are seeing more refinancing deals. But ‘a lot of them we see just don’t work.’
SVB and Signature, along with troubled bank First Republic, had been major sources of financing for many real estate managers.