Word on the street

Breaking New Ground

Toby Cobb, 3650 REIT  

“We are seeing numerous investment opportunities in the COVID lending environment, which has prompted us to be even more strategic about the assets in which we invest. For example, asset types such as multifamily properties and self-storage facilities are better insulated to weather the effects of the global pandemic. At its core, commercial real estate is a local business; our regional office presence in cities like Dallas, which is headed by Managing Director and Head of Southwest Region Bobby Geary, New York, Miami, Los Angeles, Chicago and Nashville have been critical to our success. Having the necessary in-house talent and infrastructure in place prior to the pandemic to underwrite, asset-manage and service loans across the nation has been fundamental to ensuring our investments continue to perform. Our special servicer rating has given our borrowers confidence that we will be available and knowledgeable to service their loans. In these uncertain times, borrowers appreciate an engaged servicer with a meaningful investment in their loan. There is an alignment of interests due to the fact that we retain loans on our balance sheet throughout their lifecycles.”

Mark Fogel, Acres Capital

“Against the current macroeconomic and social backdrop, there has been significant deliberation among all parties within the CRE community regarding how and where to invest capital. Questions abound without any consistent answers. Which asset classes provide the best short- and long-term risk/reward profiles? What markets are best for investment? How do you project value for any asset given so much uncertainty? Ask 10 people and you are likely to get 10 different answers to any of these questions.”

Jonathan M. Spiegel, Sabal Capital

“As we head into Q4, financing opportunities are available in the CMBS conduit space. Conduit spreads are tightening, and lenders that were on pause earlier in the year are up and running again. Given macro-level uncertainties, multifamily, self-storage, and warehouse/industrial loans are sweet spots for many conduit lenders, while retail and office loans are presenting more of a challenge for now. Sabal is open for business, and we’re looking forward to a productive fourth quarter.”   

Brian Casey, Walker Dunlop

“Post-COVID, employment and job growth is less tethered to any particular building or to any particular market. Traditional demand drivers for multifamily and for office need to be revaluated.  MSAs, municipalities and projects that can address the weaknesses exposed by the pandemic will be long-term winners.”