The US commercial real estate debt markets were stable in July and August as market participants worked to make sense of a higher-leverage transaction market, according to indicative deal data tracked by Real Estate Capital USA.
The Real Estate Capital USA Lending Barometer, a weekly survey of newly originated loans, tracked roughly $6.2 billion of new loans in June and about $6.1 billion of financings in July.
The total was fueled in part by a number of large refinancings, including a $450 million loan from Morgan Stanley to refinance debt on Los Angeles’ Glendale Mall and a $430 million loan from JPMorgan Chase for New York-based Witkoff Group and Chicago-based Monroe Capital’s redevelopment of the historic Shore Club Hotel in Miami. All but one of the 10 largest loans recorded were for construction projects or refinancings.
While the numbers seen in July and August were about $1 billion lower than the approximately $7.2 billion of new loans recorded in June, there has been a steady increase in originations since the start of the year. By sector, multifamily continues to be the dominant asset class, although there was a slight uptick in financings in niche sectors like cold storage and production studios.
The Real Estate Capital USA Lending Barometer tracks senior mortgage and mezzanine and preferred equity financings across markets and sectors.
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