Anthony Grafitti’s Post

"It's here. It's now. We're seeing [CRE] stress, particularly those with floating-rate debt, bridge loans, because it's a double whammy.” Jordan Slone CEO Harbor Group International Bisnow “Not only have interest rates gone up, but those bridge loans require caps to be purchased, and the cost of those caps are astronomical, so in some cases, it's like having double debt service.” "Our [Harbor Group] team … are flooded with deals right now that are distressed." "As it relates to office buildings, not just New York but in the other major cities, there's just a lot of inventory that either needs to be repurposed or maybe even abolished.” "That's really going to be a headache — and is a headache for a lot of people ..." “Owners have seen debt payments balloon while their rents have flattened, and Slone said even if they are solvent and trying to hold on to their properties where the cash flow has turned negative, it is having an impact on borrowers.” "You wouldn't believe how many borrowers, owners are more mentally, in some cases, more mentally exhausted than they are financially exhausted.” "In some cases, it's both, but writing a check every month with negative cash flow, mentally, is not fun." 🍀🍀🍀