Debt

Blend and extend is the latest iteration of the ‘extend and pretend’ strategy frequently seen in the wake of the Global Financial Crisis.

Cathy Marcus and Raimondo Amabile will become co-CEOs of the New Jersey-based manager in October.

The Dallas-based manager is still struggling with pricing on the properties which come across its desk.

The manager has expanded the geographic scope and timeframe of its previous analysis in its latest estimate.

KKR global real estate head Ralph Rosenberg expects capital constraints to also cause pain for owners outside of the office sector.

The alternative lender has hired John Omori from Bank of Hope to spearhead the initiative, which will focus on smaller, local builders in the multifamily sector.

The firm is using this strategy as a yield play to mitigate against its bigger bets in the office and retail space.

Recent financing for ground-up developments include a $750m loan funded by Otera Capital for the first phase of Tishman Speyer’s Harvard University Enterprise Research Campus.

Pension funds have committed $935bn to managers in the first half of this year.