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Alternative lenders
Higher interest rates continued to stall the US commercial real estate market in 2023, but alternative lenders and their investors are hopeful that opportunity will knock in 2024.
The wave of maturities and refinancings looming over commercial real estate in 2024 poses critical challenges for a market still reeling from last year’s rates and valuations shocks, says Teresa Zien, managing director, capital markets at Invesco Real Estate.
While other firms sought to weather 2023’s turmoil by shoring up their businesses and concentrating on asset management, Bravo Capital is expanding its lending activity, say Aaron Krawitz and Gabi Moshayev.
As borrowers increasingly seek whole loans, senior funds are more difficult to deploy, according to the manager’s head of commercial debt funds.
Atlas Capital Partners, founded by Sean Tarrant and Christoph Nickel, has provided a £15m refinancing of a Knightsbridge residential asset.
The manager says more investors will return to real estate following a recovery in stocks and bonds.
The London-based manager was selected to provide the financing because it was able to provide a whole loan.
The Frankfurt-based business is aiming to raise €300m of equity to deploy in Germany, Austria, and Switzerland.
The sponsor – developer the Moran Group – attempted to sell one of the assets, the Rockpoint apartment complex, last year.
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.