Return-Path: <1axcc4aaxx6mrv9j5tjdxj466h1zjsubisg48y-andrew=sterlingcal.com@bf02x.hubspotemail.net> Delivered-To: andrew@sterlingcal.com Received: from reseller401.webserversystems.com by reseller401.webserversystems.com with LMTP id AGczBiCG+WWn3QQAchKAPA (envelope-from <1axcc4aaxx6mrv9j5tjdxj466h1zjsubisg48y-andrew=sterlingcal.com@bf02x.hubspotemail.net>) for ; Tue, 19 Mar 2024 07:33:36 -0500 Return-path: <1axcc4aaxx6mrv9j5tjdxj466h1zjsubisg48y-andrew=sterlingcal.com@bf02x.hubspotemail.net> Envelope-to: andrew@sterlingcal.com Delivery-date: Tue, 19 Mar 2024 07:33:36 -0500 Received: from bid47u7.bf02x.hubspotemail.net ([158.247.24.129]:13385) by reseller401.webserversystems.com with esmtps (TLS1.2) tls TLS_ECDHE_RSA_WITH_AES_128_GCM_SHA256 (Exim 4.96.2) (envelope-from <1axcc4aaxx6mrv9j5tjdxj466h1zjsubisg48y-andrew=sterlingcal.com@bf02x.hubspotemail.net>) id 1rmYet-001L0B-0d for andrew@sterlingcal.com; Tue, 19 Mar 2024 07:33:36 -0500 Received: by 172.16.170.87 with SMTP id a0b9znrox27ui2vizryxywxjo6co70r34sulc4c7snb; Tue, 19 Mar 2024 12:33:24 GMT DKIM-Signature: v=1; s=hs1; d=bf02x.hubspotemail.net; i=@bf02x.hubspotemail.net; h=sender:from:from:reply-to:to:to:cc:cc:subject:subject:list-unsubscribe:form-sub:feedback-id:list-unsubscribe-post; a=rsa-sha256; c=relaxed/relaxed; bh=Ivtsa1ht+0Ehwry7y7y3SvOIU/rJZmxSnxCZgSHz8nY=; b=dwQPExoKffcdo0/4c8KlJ5qm47BrVMnHpA2FKFnClJTpQPKDPWPcM4lPuKt8G2 VBqqFFGjUIYDHVTBvjoOnhxCU5W45wcSAi9Y9gS8fXQ1DYpsoldesljzZUi4NRp 2bZsISfGIPwM5Oswkv3ZpXzcpt+Uy4hlcQiGoViNlylyywNnYg+xXV4o7uDOtzx acqefs5bGlr2PqYq8lcbG4otQICcuExe21Si2u0UVCRe3sUMPP/VgZpTsJF6UC7 XWzZPjW/H1eoiyhOdrE/IEKfcCs8MxB1HProOFT9H5FO1dp9bXjM5N7U2Uksa2m WAHiHbo9LLd/zdsydApsGFF9vgVg==; q=dns/txt; t=1710851604; x=1711114404; DKIM-Signature: v=1; s=hs1; d=iglobalforum.com; i=@iglobalforum.com; h=sender:from:from:reply-to:to:to:cc:cc:subject:subject:list-unsubscribe:form-sub:feedback-id:list-unsubscribe-post; a=rsa-sha256; c=relaxed/relaxed; bh=Ivtsa1ht+0Ehwry7y7y3SvOIU/rJZmxSnxCZgSHz8nY=; b=gUsP+sFzKIpI5yPwAoXuHpwIebmnoGB2OERLrYj3XHe6jfnxAW+ZyH91+K//yE EFDMawDYEyJlHiiiWcOmSTSrlEj8YrorJLh0bSEgu/93PDR+t5p2s8gMH/SViDB zBkphWJg55Xzo5BKu/5PJer9PgMxM7SJUxjJcuEa/5ahUB8XlHiBlbUZxYxTBla GprJcau/VWbg0aJRHTOMualqKfxlmh4cgP8mSoReg27YQZpIL9ZgbpmyZeaj7UI xFYN5ib52rPIBXwIfZpVjp0DUuyGQQHC8zIi6oA7qyc31XEHiAvn/RqMG0MWleA WCuF2g6LPkweznyRKWGmlGGhPylA==; q=dns/txt; t=1710851604; x=1711114404; X-HS-Cid: 1axflhyi0zirys3xril9wqs4th6iezw2cc8udu List-Unsubscribe: , Date: Tue, 19 Mar 2024 08:33:24 -0400 From: Paula Henley Reply-To: events@iglobalforum.com To: andrew@sterlingcal.com Message-ID: <1710851499744.ffd8e0b3-21f8-4c10-a296-655a70e41797@bf02x.hubspotemail.net> Subject: Exclusive Q&A with Silvia Lupu/Jevan Capital: Unveiling the Future of Commercial Real Estate Financing MIME-Version: 1.0 Content-Type: multipart/alternative; boundary="----=_Part_3139163_1373834491.1710851599997" X-Report-Abuse-To: abuse@hubspot.com (see https://policy.hubspot.com/abuse-complaints) List-Unsubscribe-Post: List-Unsubscribe=One-Click X-Spam-Status: No, score=-0.2 X-Spam-Score: -1 X-Spam-Bar: / X-Spam-Flag: NO ------=_Part_3139163_1373834491.1710851599997 Content-Type: text/plain; charset=utf-8 Content-Transfer-Encoding: quoted-printable Join us for an in-depth discussion on CRE financing with Silvia Lupu at the= 25th Real Estate Private Equity Summit - March 26, 2024 | New York REPE25 - Speaker Q&A (1) (https://cHycy04.na1.hubspotlinks.com/Ctc/I5+113/c= Hycy04/VXkC886yrYB2VCRq7Z3js8vwW5wYw0_5bSGZ0N89-Qy-5n4LbW50kH_H6lZ3lHW7fnzg= C3gxPRtW6RF9kg6KlVBfW41_-FT1x01nHW7Ncksv9hJ7JjN6cn3ZBfZ3QqW3BDpwH3V21SMW1cr= t7B3qLp8XW1MtVtx93yvQ8W3t4G2750f6KRW5XRwRn3ZzGKTW28Xys91b8d7kW1lCgM52LhZWBW= 475FWf1XWDT-W175RM96JdZJvW1bxMxx2lJv0YW9jV2sj94zs0WW900VVr28mRywW1ySDBr6L0Q= 8wW4lgYRm3Vn16HN6l6DqWNZWt0W6c1DJv3Zj6WDW5frQv39009MgN571CXdg1rlBW3v610F44x= WD7W7dhhRL27kpCrW508sd-2_7wsxW6Bd7-b1RDQsdW86rk2z91l-C4W88QxYg2Lw9Y5VZKyZ95= DCmw2V2kjLW5vgT1cW4R59tW5XNm0hf8QRF9204 ) As the CRE space continues to transform, a crucial question regarding the e= volution of its financing landscape within the next year takes center stage= . Delving into this very topic, our interview with Silvia Lupu (https://cHy= cy04.na1.hubspotlinks.com/Ctc/I5+113/cHycy04/VXkC886yrYB2VCRq7Z3js8vwW5wYw0= _5bSGZ0N89-QBM3pyd0W8wLKSR6lZ3pBW4GlwKk4pbxRhW1KM4gW5CG0nWW3x_jJ340Vtz0W644= s7y5zlPPtW5t916y8Y1BzRW3fnPFh3glYq6W1sjSgt6gmy31W1tX-V72mfb8MVhHGv67TbfmKW1= X7XSj7cgWZ9W6NSlY15JHbJdW1FVJpg1PFlSvW8vx9df4x54g9W5NqJSx64w6W8W1BhwSj487Yy= DW2zyZr73cpfwkW59L1RD1gGqkZW2fjmJy6GLX9wN6H99tW7KghmW8w-kdW2DMNpkW2gW2H87M-= yFRW25vYcN32jx7sW5CRWsM7jzZkvW4TZ4JN5nsVWvW3JwrqN5Qkj_QW2zHs9r6pyHxYVB7sPk2= jZ039VcpcPv5WCSqyf5LMfwP04 ) , Fund Manager at Jevan Capital, explores the = challenges posed by stricter underwriting standards and rising borrowing co= sts, how to overcome lending limitations, and where to find opportunities i= n niche sectors. Q: How do you see the financing landscape evolving for CRE deals over the c= oming 12 months? The financing landscape for CRE deals has gone through a transformative per= iod over the last couple of years, with a 64% drop in overall commercial re= al estate volume year-over-year. Borrowers are facing challenges due to stricter underwriting and higher cre= dit costs, leading some to retain existing debt, raising concerns about pot= ential distress and a looming liquidity crisis The Federal Reserve's rate hikes have created challenging conditions for pr= operties with debt coming due, with approximately $2.8 trillion in commerci= al properties scheduled to mature in the next five years. Data centers, life sciences, and niche assets like cold storage and student= housing are presenting attractive opportunities for the development and ac= quisition of capital. Residential, particularly the multifamily sector is expected to thrive due = to strong fundamentals, including increased renter demand, growth of long-t= erm renters, and stabilization of rent-term growth. Sun Belt markets like Texas and Arizona have experienced rapid growth in bo= th jobs and housing, leading to a surge in multifamily construction. Phoeni= x, in particular, has seen a notable shift in demand for multifamily proper= ties, with developers ramping up new supply to meet the influx of movers in= to the area. This trend is influenced by factors like affordability compare= d to coastal markets, tax incentives for investors, and the need for indust= rial properties due to rising construction costs and land constraints. Retail is experiencing a revival in 2024 due to factors like post-pandemic = consumer spending surge and hybrid work models favoring retail visits. On t= he other hand, the office sector faces significant challenges with declinin= g sales, but there are pockets of resilience with higher-end office buildin= gs thriving while others struggle. Investors are monitoring closely the interest rate developments and lending= trends for the right moment to deploy their capital that was held on the s= ideline over the last couple of years. Q: Do you think that lending restrictions will become more or less challeng= ing through 2024? The lending restrictions for Real Estate deals are expected to remain chall= enging through 2024, as the FED is on its mission to bring inflation down b= ack to 2% in 2025. - Basel III regulations The proposed Basel III regulations would require banks to maintain more cap= ital to protect against loan losses, potentially crippling property financi= ng. This could lead to a significant increase in capital requirements for b= anks with $100 billion or more in total assets, affecting their lending cap= acity and liquidity in the real estate sector. - Stricter Lending Standards US banks have been tightening lending standards for commercial construction= and land, with about two-thirds of banks reporting stricter standards. Thi= s tightening of financial conditions, combined with rising financing costs = and falling property prices, is expected to further restrict funding availa= bility for real estate deals. - Loan Maturities and Defaults The real estate sector faces challenges with substantial loans maturing in = the next few years, making it difficult for borrowers to refinance mortgage= s due to tightening loan-to-value ratios. Increasing defaults at maturity c= ould particularly impact weaker real estate assets, depending on their qual= ity, type, and location - Delinquencies and Defaults Forecasts indicate a doubling of overall U.S. CMBS loan delinquencies from = 2.25% in November 2023 to 4.5% in 2024 and 4.9% in 2025, reflecting a deter= iorating commercial real estate landscape that could lead to tighter fundin= g conditions and falling property prices. Q: What are the most promising and innovative sources of alternative financ= ing available for CRE investors today? Several innovative sources of alternative financing have emerged, offering = flexibility and unique advantages to investors. Some of the most promising = options available today might be: - Private Equity and Joint Ventures: They are redefining collaboration in C= RE, offering a composite of risk distribution and capital consolidation. - Real Estate Crowdfunding: Democratizing investment, these platforms are u= nlocking CRE opportunities for a broader investor base. - Seller Financing: This approach opens new channels for buyers while provi= ding sellers with an expanded market. - Mezzanine Financing: Occupying the middle ground between debt and equity,= it offers a flexible lifeline to those seeking additional capital. Q: Why will you be speaking at iGlobal Forum's Real Estate Private Equity S= ummit in NYC on March 26? In these challenging times, when market conditions and the banking system a= re not on our side, active market players must come together to exchange in= sights and strategies for various investment opportunities amidst dynamic f= inancing conditions. Join Silvia Lupu at iGlobal Forum's 25th Real Estate Private Equity Summit = (https://cHycy04.na1.hubspotlinks.com/Ctc/I5+113/cHycy04/VXkC886yrYB2VCRq7Z= 3js8vwW5wYw0_5bSGZ0N89-Qy-5n4LbW50kH_H6lZ3p0W7TLzCC6bVdw3W96gCbV3wnslCW6z8S= 5X2DvLX7W1q8kW77sZcjPW6dMl7k14qmz8N43wbbwfHs62W12Lv9G2C9QBHW3n5k2K36H8mJW7d= hZB763nHCJW586R9k6STGztW184fy7880fzGN96D77_3_4LcW67k05l91p0nTW7KQ1Fj6NV0r9W= 7v4Z8D7x1Hd-W2zGqG42Dl01cN6J0fNgjz9ZzW6tb2JX7twrMPW9b3gdh2lDR8CW8VrTbd8l7lG= LN3Y_qxb932cxW4d0J476Wz6thW73hDzD3_1H8wW63Khc34qz_4kW81KmDY4nXQnDW8sq6Rd7jS= mf5N5YlYypTqnccW3sKTDP61J-bbW72vfPM4bkpvDW1mLK-w2PDxrFN7jG9RD3cFFbVd99BW3gs= SBQf8-8XwP04 ) on March 26th in NYC The 25th Real Estate Private Equity Summit is specifically designed to help= industry leaders identify the best investment strategies and assets in the= current climate. This targeted event gathers a highly curated group of ove= r 200 decision-makers at the most influential real estate private equity fi= rms, institutional investors, lenders, owners, and developers for a full da= y of networking, idea-sharing, and deal-making. Register Today (https://cHycy04.na1.hubspotlinks.com/Ctc/I5+113/cHycy04/VXkC886yrYB2VCRq7Z= 3js8vwW5wYw0_5bSGZ0N89-QC23pyd0W95jsWP6lZ3msW90ypvT6pwKXFW9dvLWQ5WkbvsW4SRx= 0R3T-LGXW93tp4j40trbDV6-d7Y4123tcW3ZtY7p1GckNKW1Hbpp02g03NTW1pGmbk8XgyPcW72= MrpY8BKFZGW92fN6S1MZX6RN26kQ70n8c5VW5NdwHm8H27Z2N8P9m2QHGYQ3VzxB8X4C3rSlW8q= pC7G2GVX2WVMKNLn2SJ0YpN7ZHqd54FzDfW77LCkW2g4tQ1W8hV4tg4D-1YtN7XPHM4hZL_5Vr1= _DC898rTzW45S-Y52SNRnsN6xWjKQVXdLfW8-wL1m2WJZ-hVkCDQM1WDKFSW5FPyNL3SHkwnW4y= mfBY6wy2ZVW6v-6j960_ZmTN7ZqYXdj7czsW8T8lHT51Qrwbf4sQrxn04 ) We look forward to seeing you at the event! Kind regards, Paula Henley iGlobal Forum www.iglobalforum.com (https://cHycy04.na1.hubspotlinks.com/Ctc/I5+113/cHycy= 04/VXkC886yrYB2VCRq7Z3js8vwW5wYw0_5bSGZ0N89-QB83gVDYW7lCdLW6lZ3kLN5P1FBmq9G= 7ZW3BJb8H4-fkNDVRf1ln3D5vqcW8vcrDP2mNFk-W7pLyDY24SbN9W5rw-BB8KJZy8W9k8TkN6r= WkCwW7khXkV4lD6gyW8V4hs-7pLV6YW53J6kB3YW_mDW3Zv_4x9jwlPBW11WDNl2MDGW_W3ZrWD= -84ZgsWW2ZpjH_3jZLBbW44HBl43Yt_lPW3L2rDm9lC2jmW7K0sNH4DMlszN8K21P6-9CP9W5bf= gRY8Dk1TTW4kN5_n6VVQFJVsyD992NxrLBW3jcKDF3brWJbW3rb2wy29NGQyN58zl4Jpr51wf97= 07Xz04 ) Date & Time March 26, 2024 Download to calendar (https://cHycy04.na1.hubspotlinks.com/Ctc/I5+113/cHycy= 04/VXkC886yrYB2VCRq7Z3js8vwW5wYw0_5bSGZ0N89-Qzg5n4LbW5BWr2F6lZ3m4W35_d7J8YH= cQ9W6rv2wv36C_nvW6fwK9b5R6DS1W1fvyLd87wg4MW5vk3Tc1y-79FVpS0pF4FX9JhW41hLy54= V23m8N8mhJDb8HM9xW73lSDJ5DGGvfW2vLXMK7QM6M7W42vRPV8nSFdSW89s4Ks4sWtpmW31Rnj= N82K8-jW1N__rS8LFFpMW2wy2bV1B-sPhVvdkkT8cwjnMW8YV5YP77zfjxVysP2J8P4258W6YcS= bb5xpw9JVnLWBl6B0yWNW522pPJ7jchbKW3qk2_C4RJfmBVv3Yf56kWDM7MgVZ2gcsYS7W8MpPh= 12VLwvDW6KGxPy1ldc2mW8Zr_yR7_cVKXW2jNPK17qFTcvW5fsMFL7g43FJW7RpYgR6WCC1pW5l= h5nb3J_4LRW6-McC_7RBRs2W8h06hf3fwn63W2x0ky65jGxTcdCHw5604 ) Location @Ease (https://cHycy04.na1.hubspotlinks.com/Ctc/I5+113/cHycy04/VXkC886yrYB2= VCRq7Z3js8vwW5wYw0_5bSGZ0N89-QBM3pyd0W8wLKSR6lZ3m8W3V5rCv3LKfmnW1bCddM6XwWS= vW7jwTcc5H4BxYW804Dhw5Dy5JsW20HhSF2JrgDVW8zTzLB1-kwnHW7F_dry7v3-fWW4w-5Xn6G= QtF3W3_z5Nl7mclGvMnycmLx0G3LW44BlNN4s67XKMS7cSdWzHcVW6XV_KH8TbXpCW18jN9G5vX= hWgW6-k-qd3F7SDyW27gKK78xmcbVW4Nkw6B47FsNYW8LZ4YP61WjpxW7cJ_hf67Yll9W4Z_ry4= 6VQvLZW3StxqJ1svBV7W4Qd8GZ964LMcW27btgy6TBkbkW3wrDW86w8VzVN7p17nRXzSVvW3VKf= xM7dCHf0W3kwB1m3gRBCGW4vsKrL7GG0B3f5myHbd04 ) , 1345 Avenue of the Americas= , Concourse Level, 1345 6th Ave, New York 10105 LinkedIn (https://cHycy04.na1.hubspotlinks.com/Ctc/I5+113/cHycy04/VXkC886yr= YB2VCRq7Z3js8vwW5wYw0_5bSGZ0N89-QBM3pyd0W8wLKSR6lZ3p7W2PMqF07BGBsMW5n1nbk3K= ph81W1kJfj-18F72yW8_htyC1cpbkRV63zvL8cwVNwW5J8H7X5kKrXMW5cgqbk3Kjy0QW4Htvdn= 6W5CJhW9gvKF68Dg2qTW1Wr0Yw7xBzqWW52HsHQ88T8vxVY3Fzp5DkWg3W8zMhck8TgTYjVlQWP= 58HXdHtW3p9j6l2nW5hhN2PqnYG22Wz1W2bN6bh6qvQ8XW8wDMQS5bkrt4W33S8Pn8s4gGNW1nw= jkS9fgHxqW5c1yTk36mqjmW195VyP4y1mlPW2nLmf62wcW59W8Jd_jM6Gg1QhVmSBJK4kMCHXW3= Cp5N62HHR0lW38Zy6L2CNpwwW5WXNvs2WNn1Gf69BcrF04 ) Facebook (https://cHycy04.na1.hubspotlinks.com/Ctc/I5+113/cHycy04/VXkC886yr= YB2VCRq7Z3js8vwW5wYw0_5bSGZ0N89-QBM3pyd0W8wLKSR6lZ3nYW7CX_Lh5ZjLspW3Yfhsj7M= k4-3W7z_Tj635XJSQW2mCNNx3BbRCRW4P5nX05rDj5CW6hrptv7M-3lVW92FYMD2m6x9zW66JHz= B3SQyFQW5W5ZPT5SVHlXW7vxclD4w-bcQV4BqQd5w4jnmW2nz47x6ncbDkW8sGFC34Ly3jVW14t= Pmj15-SFtVRgLrf5kSHXCW23q68j7bVx6HW4rMxFk8jX0_zW5L5pwz3CYgWRW89dl-89hmF11W7= j24h58Y5pTxW28cGvK6SxmB5W2_m7w51Md9v4W37kdXD8Syd48W1RDDWM7fBCGKW8NBDT451KbH= RVfSd4K8XRSKrW87kNph61PkJ6W6qS0784K2HWBf3Wk35g04 ) X (https://cHycy04.na1.hubspotlinks.com/Ctc/I5+113/cHycy04/VXkC886yrYB2VCRq= 7Z3js8vwW5wYw0_5bSGZ0N89-QBM3pyd0W8wLKSR6lZ3ncN4ZKB-1-6vw5V3HtgL3Z8_zhW68MC= gY5R_JtYW2RdPR61kMFKrN34h5m9ztq56W6S56JR57lDwCW1wfkSy7Q57rHW89By5p8wFHTHW4x= LwDC1HTrHQW7KHXKw4pF7TfN2BMX3RpkDf9W4NQzvz7Kzf1fVxlf643mqPG8W3Lr_Ft6zwQ_GVs= 4d-x2_l_tMW3Gxk5c4cGv4xW727jJv1p4pLNW3gQWmx5dJT2fW27xL8h1wljgTW55TlqP3YPbVl= W6gYpwn58MsnHW3kKmxv7djnxVW6zjQFf4y73syW7sVmG57LKQ7nW4CLZrF1pcWJyW2G742V1PH= qjVW6KRFNj3JKqc-W8-hypv55fD_Wf9fpNfq04 ) iGlobal Forum, 6 East 43rd Street, 19th Floor, New York,NY,10017,United Sta= tes of America, Unsubscribe/Manage Preferences (https://hs-5753891.s.hubspotemail.net/hs/pr= eferences-center/en/page?data=3DW2nXS-N30h-LDW3Zxvh_4cv7g6W49M9-M2zNjSSW1X6= sDv2Myx2kW4pBNq14p5FdTW212SZy4hPRTzW3_B-393D-pl_W3M6rhr4cJqrqW43SN1B2MRwcXW= 4fxTXT43ZyXVW3BPyxP45StB1W2PCbVr3W1VSWW2Kx0SY1_v1JJW4tl-mK2vLLlMW2My3DN2HPR= 5GW43wPk-2TrxqlW3JR1X23drtpNW43WG6p3Xy6rYW1_8x4Y30sNZ-W4hNFf32xPQn2W1Bqrxg3= F6k8HW3_Jsyl2CTvQhW3zgbyj4pCg-QW2PMzvC3jp3gCW3SB7Hd3X-RszW3GZly54tmQjRW3XYh= 6V3VYZ7TW3H88V52pbsP-W3b1hv14fh870W1NDSfk2t1HT8W4005lj3DJNq2W49xVhr1VnmqHW3= SYHBn41zxgFW2nWd5c3hXcvbW4frZCD2vQSt9W3NTvbf2MDdFsW3JWbpK32bSjgW2vBNx_1SsnP= yW1VrMhm3P0Qw7W2v-bDn38Cf3xW1NpQYp3K8n_dW2Rsv6T30js6DW45q8WW1BvDH6W3bjBJH1B= 9sTRW45kfrG2vCC6GW3z1KWD1ZwsqZf4fwbcQ04&_hsenc=3Dp2ANqtz-_FIE4o_avrYcweGjlT= LCbN2BG2P11RjRikbHoWu4CqgACn2ENFWjDehm51SldIr43bIOaVK_YhXAL0FREyfAZcOLzk9g&= _hsmi=3D298841048 ) ------=_Part_3139163_1373834491.1710851599997 Content-Type: text/html; charset="utf-8" Content-Transfer-Encoding: quoted-printable Exclusive Q&A with Silvia Lupu/Jevan Capital: Unveiling the = Future of Commercial Real Estate Financing =20 =20 =20
Join us for an in-depth discussion on CRE financing with Silv= ia Lupu at the 25th Real Estate Private Equity Summit - March 26, 2024 | Ne= w York
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As the CRE spac= e continues to transform, a crucial question regarding the evolution of its= financing landscape within the next year takes center stage. Delving into = this very topic, our interview with Silvia Lupu, Fund Manager a= t Jevan Capital, explores the challenges posed by stricter underwritin= g standards and rising borrowing costs, how to overcome lending limitations= , and where to find opportunities in niche sectors.

 

Q: How do y= ou see the financing landscape evolving for CRE deals over the coming 12 mo= nths?

The financing l= andscape for CRE deals has gone through a transformative period over the la= st couple of years, with a 64% drop in overall commercial real estate volum= e year-over-year.

Borrowers are f= acing challenges due to stricter underwriting and higher credit costs, lead= ing some to retain existing debt, raising concerns about potential distress= and a looming liquidity crisis

The Federal Res= erve's rate hikes have created challenging conditions for properties with d= ebt coming due, with approximately $2.8 trillion in commercial properties s= cheduled to mature in the next five years.

Data centers, l= ife sciences, and niche assets like cold storage and student housing are pr= esenting attractive opportunities for the development and acquisition of ca= pital.

Residential, pa= rticularly the multifamily sector is expected to thrive due to strong funda= mentals, including increased renter demand, growth of long-term renters, an= d stabilization of rent-term growth.

Sun Belt market= s like Texas and Arizona have experienced rapid growth in both jobs and hou= sing, leading to a surge in multifamily construction. Phoenix, in particula= r, has seen a notable shift in demand for multifamily properties, with deve= lopers ramping up new supply to meet the influx of movers into the area. Th= is trend is influenced by factors like affordability compared to coastal ma= rkets, tax incentives for investors, and the need for industrial properties= due to rising construction costs and land constraints.

Retail is exper= iencing a revival in 2024 due to factors like post-pandemic consumer spendi= ng surge and hybrid work models favoring retail visits. On the other hand, = the office sector faces significant challenges with declining sales, but th= ere are pockets of resilience with higher-end office buildings thriving whi= le others struggle.

Investors are m= onitoring closely the interest rate developments and lending trends for the= right moment to deploy their capital that was held on the sideline over th= e last couple of years.

 

Q: Do you t= hink that lending restrictions will become more or less challenging through= 2024?

The lending res= trictions for Real Estate deals are expected to remain challenging through = 2024, as the FED is on its mission to bring inflation down back to 2% in 20= 25.

  •      &nbs= p;Basel III regulations

The proposed Ba= sel III regulations would require banks to maintain more capital to protect= against loan losses, potentially crippling property financing. This could = lead to a significant increase in capital requirements for banks with $100 = billion or more in total assets, affecting their lending capacity and liqui= dity in the real estate sector.

  •      &nbs= p;Stricter Lending Standards

US banks have b= een tightening lending standards for commercial construction and land, with= about two-thirds of banks reporting stricter standards. This tightening of= financial conditions, combined with rising financing costs and falling pro= perty prices, is expected to further restrict funding availability for real= estate deals.

  •       Loan Maturities and Defaults

The real estate= sector faces challenges with substantial loans maturing in the next few ye= ars, making it difficult for borrowers to refinance mortgages due to tighte= ning loan-to-value ratios. Increasing defaults at maturity could particular= ly impact weaker real estate assets, depending on their quality, type, and = location

  •       Delinquencies and Defaults

Forecasts indic= ate a doubling of overall U.S. CMBS loan delinquencies from 2.25% in Novemb= er 2023 to 4.5% in 2024 and 4.9% in 2025, reflecting a deteriorating commer= cial real estate landscape that could lead to tighter funding conditions an= d falling property prices.

 

Q: What are= the most promising and innovative sources of alternative financing availab= le for CRE investors today?

Several innovat= ive sources of alternative financing have emerged, offering flexibility and= unique advantages to investors. Some of the most promising options availab= le today might be:

  • Private Equity and Joint Venture= s: They are redefining collaboration in CRE, offering a composite of risk d= istribution and capital consolidation.
  • Real Estate Crowdfunding: Democr= atizing investment, these platforms are unlocking CRE opportunities for a b= roader investor base.
  • Seller Financing: This approach = opens new channels for buyers while providing sellers with an expanded mark= et.
  • Mezzanine Financing: Occupying t= he middle ground between debt and equity, it offers a flexible lifeline to = those seeking additional capital.

Q: Why will= you be speaking at iGlobal Forum's Real Estate Private Equity Summit in NY= C on March 26?

In these challe= nging times, when market conditions and the banking system are not on our s= ide, active market players must come together to exchange insights and stra= tegies for various investment opportunities amidst dynamic financing condit= ions.

 

Join Silvia Lupu at iGlobal Forum's 25th Real Estate Pr= ivate Equity Summit on March 26th = in NYC

 

The 25th Real Estate Private Equity Summit is specific= ally designed to help industry leaders identify the best investment strateg= ies and assets in the current climate. This targeted event gathers a highly= curated group of over 200 decision-makers at the most influential real est= ate private equity firms, institutional investors, lenders, owners, and dev= elopers for a full day of networking, idea-sharing, and deal-making. &= nbsp;

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We look forward to seeing you at the event= !

 

Kind regards,

 

Paula Henley

iGlobal Forum

www.iglobalforum.com&nb= sp;

 

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iGlobal Forum, 6 East 43rd Street, 19th Floor, New York,NY,10017= ,United States of America,

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