Bank Financial Services

Trimont president Alan Kronovet discusses the refinancing wave, distressed assets, lender workouts and how artificial intelligence is changing US commercial real estate loan servicing.

The commercial real estate lending market is emerging from a period of uncertainty into one of renewed opportunity, says SitusAMC’s Anne Jablonski. The winning lenders will be those who know how best to leverage expertise.

With $1.8trn of ZIRP-era loans now maturing, the market is shifting from extend-and-pretend to disciplined resolution, and abundant capital is bifurcating sharply between prime assets and distressed pockets.

Yields on treasuries, gilts and other sovereign debt hit multi-year highs this week due to concerns on higher oil prices, rising deficits and inflation.

The report by Atrium identifies the growing role of private credit in the sector.

Social and political opposition is a growing risk to all stakeholders in the rapidly growing sector.

Private real estate lenders are set to be part of the solution to today’s version of distress.

JLL-advised dealflow data indicates lenders and sponsors are not waiting for rates to move as they act on immediate borrowing needs.

The financing comes amid a resurgence in activity for high-quality office properties.

The funding is part of a $269m recapitalization for BFC and SAA Canopy’s planned 393-unit rebuild of Parkside Commons.