SPONSORED: CenterSquare — Real estate debt market ripe for high-yield transactions

Supply and demand imbalance, driven by the relatively rapid series of interest-rate increases, has expanded the opportunity set in the middle of the lending capital stack, according to a report published in the April issue of Institutional Real Estate Americas, “Real estate debt: The time is now.” Michael Boxer, managing director and co-head of private real estate debt for CenterSquare Investment Management, writes, “… the dramatic shifts in debt costs and capital markets have forced many historically active capital providers to take a step back. These macro dynamics, coupled with increased demand for real estate financing, are translating into an enhanced opportunity set of higher-quality loans for alternative providers of debt — particularly mezzanine debt.” Boxer indicates the demand for financing and lack of supply from conventional sources makes the mezzanine opportunity especially strong in the residential sector.

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