GID is looking to focus on transitional bridge lending in 2023 as part of its credit platform the national manager launched last year.
The mid-market specialist rolled out a credit platform in the fourth quarter of 2022, an initiative which was a long time in the making, Jeffrey Beckham, executive vice-president and head of portfolio management, told Real Estate Capital USA.
“We’re very bullish on credit and it just so happens that right now the market opportunities are exceptional,” said Beckham. “We also felt it was a natural complement of our existing business.”
The platform targets the top 25 markets across the US. It focuses on originating US senior commercial real estate mortgages in markets with attractive supply and demand dynamics while capitalizing on secular shifts and dislocations in the real estate lending markets. The platform targets institutional-quality assets and sponsorships with strong fundamentals.
GID Credit’s leadership team is made up of Jeffrey Thompson, co-head and president; Adam Gibbons, co-head, chief investment officer; Daniel Jagoe, managing director, head of asset management and Jennifer Keller vice-president, debt capital markets.
“We spent last year building the team out and we’re mobilising now this year,” said Beckham.
Broadly, GID has just under 30 billion in assets under management and in addition to multifamily, also focuses on the industrial market.
The firm is starting to see price adjustment in the US, with Beckham noting property prices are down from 15-25 percent. This opens the door for possible acquisitions on the equity side of the firm’s business. “We’re really focused on identifying those opportunities and finding those assets at deep discounts in great locations,” said Beckham.
GID is, however, seeing the fallout effects from the recent bank failings.
“Overall, we believe the impact will lead to less willingness to lend based on the current requirements.”
All lenders are also going to be looking more at the real estate books and analysing their exposures.
“There will be some sectors, such as office, where people will begin to re-evaluate the value of collateral on previous loans, which could result in some liquidation,” he noted.