As the amount of troubled loans mounts, real estate lenders are revisiting strategies from the Great Recession to avoid taking back the keys on some assets.
The “denominator effect” put institutions in a position where real estate allocations exceeded target levels, but observers expect that issue has begun to resolve itself as values of other investments have recovered.
With the sector facing headwinds, HNWI enthusiasm for commercial real estate has dampened and what type of investments they prefer has shifted, according to WMRE exclusive research.
Real estate debt funds are targeting all types of strategies, but are becoming particularly active on construction financing, an area where the pullback from banks has been more severe.
