Samantha Rowan
The long cycle has caused a dearth of workout specialists as lenders and borrowers seek to modify loans.
The commercial real estate market, which has been in a value correction cycle for the past two years due to higher interest rates and cap rates, will see this correction continue until interest rates settle.
As banks seek to address commercial real estate exposure, alternative lenders are stepping in to acquire or help restructure loans.
The firm is responding to a pullback from bank lenders, chairman and chief executive Barry Sternlicht said on Starwood Property Trust’s Q4 earnings call.
Private credit lenders and other alternative sources of capital are already stepping in to work with national and regional US banks to restructure loans.
The long cycle has meant a dearth of workout specialists as lenders and borrowers seek to modify loans.
The New York-based private equity manager joined forces with Canada Pension Plan Investment Board and Rialto Capital on the acquisition.
Negative sentiment and macroeconomic and geopolitical concerns continue to hold back the market, panelists said at PERE America.
Blend and extend is the latest iteration of the 'extend and pretend' strategy frequently seen in the wake of the Global Financial Crisis.
Lotus, a New York-based advisory, arranged the loan on behalf of Monroe Capital and Witkoff Group.