Revere’s Managing Director of Real Estate, Jeff Salladin, attended the MBA CREF24 conference in San Diego this past February. This is the industry’s largest event of the year for commercial/multifamily finance professionals. Having spent time networking with those in attendance and listening to some of the presentations, Jeff came back with the following key takeaways:
- While difficulties in the office market get much of the press surrounding commercial real estate, opportunities exist in other asset classes. Most lenders believe that originations will bounce back in 2024 beyond 2023 levels, but probably not to 2022 levels.
- Many lenders are extending deals to get through this season of higher interest rates. When will the Fed cut those rates? It was a mixed bag of perspectives. Some felt two or more cuts will come this year; others felt the Fed will not cut rates until 2025.
- Banks continue to exhibit caution, while credit unions, debt funds, and lifecos are active. Traditional CLO and CMBS remain limited but hope for a robust second half of 2024.
How is Revere Capital uniquely positioned to thrive in this environment:
- Revere is a debt fund and, as such, we are well positioned to provide the flexible capital that the market requires in this unique season.
- As a portfolio lender, Revere is not limited by the securitization market and can manage deals to get across the finish line.
- Investors are chomping at the bit to do deals but, in this environment, borrowers and lenders alike may need creative structures to get their deals done. As a portfolio lender and debt fund, Revere is flexible enough to think outside the box to get deals done.