Term Sheet: PERE Credit’s October-November edition; ORIX’s US expansion; BSP’s $1bn CRE CLO
Office investing and lending is not without optimism as market participants break down the sector’s opportunistic evolution in the cover feature of PERE Credit’s October-November edition; ORIX Corporation USA sizes up a commercial real estate debt expansion with the hiring of Dean Dulchinos from AEW to spearhead its stateside ambitions; Benefit Street Partners adds a spark to the commercial real estate collateralized loan obligation market with a $1 billion close; and more in today’s Term Sheet.
Tips & feedback to Samantha Rowan or email samantha.r@pei.group
They said it
“Values have not bottomed yet, regardless of product type, and we have not gotten through the maturity wall yet”
Tim Sloan, vice-chairman and head of commercial real estate debt at New York-based manager Fortress Investment Group , tells PERE Credit regulated lenders have more distress and real estate debt exposure to deal with in the next five years.
October-November edition out now
Opportunistic on office
The October-November edition of PERE Credit is live now, featuring a cover story on the evolution of office investment opportunities and how private credit managers are navigating the contentious sector today.
Featuring conversations with senior executives at Hines , Invesco US , Colliers , 3650 Capital and Hodes Weill & Associates among other key market players, the analysis dives into the most in-demand parameters and investment conditions sponsors, lenders and institutional allocators are seeking in the current market.
What’s new
Credible addition
This year’s increase in real estate credit business formation and expansion gained another entrant this week. New York-based manager ORIX Corporation USA hired Dean Dulchinos as managing director and head of real estate credit with an associated initiative to build up its affiliated and third-party commercial real estate credit asset management business lines. The firm, an affiliate of Tokyo-based ORIX Group , is taking a similar tact to New York-based manager Blue Owl Capital which earlier this year brought in fresh senior talent to take up the real estate debt business reins. Read more...
Sector spark
The commercial real estate collateralized loan obligation market received a jolt last week. New York-based manager and lender Benefit Street Partners closed a $1 billon CRE CLO through its real estate investment trust, Franklin BSP Realty Trust. Michael Comparato , head of commercial real estate at BSP and president of FBRT, told PERE Credit the firm was able to close BSPRT 2024-FL11 because of the manager’s mid-market real estate debt activity especially.
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Trending
Gale-force headwinds
Private real estate investors are grappling with a tougher macroeconomic environment and contending with the reality of their real estate portfolios as a result. Data from the 2024 edition of affiliate PERE’s annual Global Investor 100 ranking of the landscape’s largest investors shows 48 of the top allocators recorded a decline in the value of their real estate portfolios compared with 12 months prior. This is an increase from 35 in 2023’s ranking.
Keystone deal
A real estate private equity and credit manager, closed on the acquisition of a $217 million performing loan portfolio from Fort Lee, New Jersey-based Cross River Bank Commercial Lending & SBA Loans . The deal comes as Keystone is ready to deploy what chief executive Jonathan Zamir characterized as “meaningful equity” across the capital stack of commercial real estate deals because of a recent partnership with an undisclosed institutional investor. Continue reading...
Data snapshot
Retail run-up
New York-based data and ratings provider Trepp, Inc. this week tracked an uptick in its commercial mortgage-backed securities delinquency rate through the month of September. The overall rate increased 26 basis points to 5.7 percent and was primarily driven by the retail sector, which accounted for about 50 percent of the net change in the total delinquent loan amount during the month.
People
New Toronto leaf
Toronto-based investor and manager CPP Investments | Investissements RPC this week named Sophie van Oosterom as its global head of real estate, filling a succession gap left six months ago by the exit of Peter Ballon after his 17-year tenure at the firm. She is joining from London-based manager Schroders Capital where she worked in a similar role over the last four years.
Loan in focus
More than a financing
A combination of private credit expertise and agency financing served as the driver of a Class A multifamily tower transaction in Downtown Boston this week. Bethesda, Maryland-based manager Walker & Dunlop lined up a $137 million financing package from Washington, DC-based government-sponsored enterprise Fannie Mae for the acquisition of LUKA on the Common, a 398-unit, 30-story property located at 45 Stuart Street in the Boston Common multifamily market.
President (NYSE: FBRT); Head of Commercial Real Estate at BSP/Franklin Templeton
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