markets

The bulk of capital allocated to real estate private credit strategies over the past five years has ended up in the multifamily sector, according to data from PERE Credit.

The firm says scalability and sustainability are essential factors when it comes to underwriting where data is key.

Commercial real estate valuations are under pressure and delinquencies are rising, but most bank management teams have maintained conservative underwriting metrics.

H1 saw a mere $4.5bn of new commitments made to commercial real estate private credit strategies.

Commercial real estate lenders are being guided by a principle that is more fraught than a fear of missing out – they are afraid of making a mistake.

The market is inherently cyclical. But secular trends are increasingly affecting workout strategies.

Mark Roberts, head of research for Crow Holdings Capital, looks at the metrics of the multifamily sector to potentially provide insight on the Federal Reserve’s next moves. 

The multifamily sector could be in the crosshairs of the coming distress.

The New York-based banking giant has been working to actively reduce its balance-sheet exposure to the sector since the start of the year.