CRE Lending Q&A

I've been asked by 3-4 people to do a Q&A on CRE lending. If the questions keep coming I will keep answering them.

As a background, I have spent most of my career dealing with capital markets, with acquisition, asset management duties as well. My most current position is with a Lender, we work on large structured transactions with sponsor's like Brookfield, Blackstone, REITs, et. al. I started my career with a large national brokerage on the debt and equity side. I'd love to help anyone with a more thorough understanding of the debt markets and how pricing and structure is decided behind the scenes. What differentiates products on the risk spectrum, how pricing plays into this, and overall how so many different lenders can price and structure the same deal differently. I can answer other questions as well, pertaining to debt and equity.
@AndyLouis to help promote and see if enough people want this.

Comments (9)

  • Associate 1 in RE - Comm
Jul 29, 2022 - 12:30am

Have you done any work structuring synthetic leases? Any high level thoughts on them? What has been the most complex transaction you've worked on and now did you get it done?

Jul 29, 2022 - 1:13am
w99, what's your opinion? Comment below:

Mr. C.R.E. Shervin,

1. Kind of a loaded question, but what resources would you recommend touching on or reading to gain a comprehensive understanding (from an introductory perspective) of how DCM/ECM and RE capital markets commingle? How did you personally go about learning this when you were first starting?

2.  Where should I start and what should one focus on in order to learn how real estate securitization works?

3. Feel free to skip this one if you want, but just wanted you to please elaborate on what you meant at the end by "(1)What differentiates products on the risk spectrum, (2)how pricing plays into this, and overall (3)how so many different lenders can price and structure the same deal differently".

Thanks in advance boss!

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Jul 31, 2022 - 10:07pm
Thumber, what's your opinion? Comment below:

I'd love to hear whatever you have to say on the space and discuss a full deal top to bottom if possible. Would also love to hear how you'd evaluate names in the space now/what leading indicators you'd monitor for the health of the CRE space, and the trade off of higher rates increasing interest income vs the downward pressure on loan volumes and credit quality

Aug 3, 2022 - 7:12am
NYCRE_18, what's your opinion? Comment below:

What's your approach on identifying and structuring around risks, when screening/sizing and closing deals? Does that approach change once a loan is closed? What about when a loan is a year or two into the term and something like COVID happens or there's a big change in the biz plan that might lead you to restructure the loan?

Aug 3, 2022 - 12:02pm
LeveredLegend, what's your opinion? Comment below:

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