Find Opportunities in Real Estate Debt Amid Dislocation

The recent aggressive interest rate hikes by central banks, including the Federal Reserve, have triggered a valuation reset in commercial real estate (CRE), leading to declines in asset prices and a slowdown in transaction activity due to increased financing costs. Despite negative sentiment in the press, not all segments of the CRE market are struggling. While office space faces challenges due to post-COVID structural changes, sectors like industrial and multifamily remain resilient. Certain traditional and specialized sectors also continue to benefit from secular trends. It’s important for commercial real estate investors not to generalize the challenges faced by office space to the entire CRE market.

Our take (from the Straight to Smart newsletter):

The Elephant in the Room

Article Excerpt:

Clicking the link below will download the white paper by Apollo Global Management, Inc.

Download pdf: Apollo-Minding the (Funding) Gap

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Interest Swaps or Rate Caps

Interest rates are in constant flux and having flexibility is critical to adapting and capitalizing on market changes. Whether you’re seeking to satisfy a mandatory hedging requirement from your lender, evaluating a refinancing opportunity or overseeing a portfolio of loans or bonds, every basis point has an economic impact, and we make sure your interests are protected.

To learn more about managing interest rate risk and what your best moves are please click here.

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Defeasance Services

A successful defeasance, by releasing you from your mortgage obligation, unlocks your ability to take advantage of historically low rates. Derivative is an experienced Defeasance Consultant. We make certain all the intricate legal and financial details are fully completed and done on time. We specialize in making your defeasance stress and worry free.

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Check out our defeasance cost calculator.

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