Mezzanine lenders fill out the capital stacks on a pair of Bank OZK West Coast industrial construction loans this week; Cain International is betting on office construction lending and lines up a $500 million loan for a Beverly Hills mega-project; Shorenstein faces foreclosure after defaulting on a New York office tower; and more in today’s Term Sheet, exclusively for our valued subscribers.
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.
Yarbrough said he believes the market is coming closer to bottoming out and this creates strong investment opportunities
Morgan Stanley Real Estate Investing was also a part of the group that funded the loan for sponsor Bridge Industrial.
The financing is notable given the paucity of capital allocated to the office sector as well as a decline in construction lending over the past year to 18 months.
JPMorgan has originated a $500m senior loan to help build the mixed-use development One Beverly Hills.
CBRE IM and Hillwood will use the funding for Phase 1 of speedway conversion into a 6.6 million-square-foot industrial complex.
The future of New York Community Bank’s commercial real estate debt portfolio remains unclear even though a Steve Mnuchin-led $1 billion bail-out adds stability; Barry Sternlicht’s Starwood Property Trust keeps up its real estate debt efforts after originating a $118 million refinance for Scott Rechler’s RXR Realty; MIPIM sentiment teeters toward the positive as lenders and borrowers show more appetite to ramp up transactions; and more in today’s Term Sheet, exclusively for our valued subscribers.
The optimism comes as the commercial real estate debt markets gear up for an estimated $930bn of refinancing.
As banks seek to address commercial real estate exposure, alternative lenders are stepping in to acquire or help restructure loans.