SPONSORED: Kayne Capital — How to underwrite in today’s market given the outlook for real estate debt

Dislocation in the public debt markets and lower but still relatively active loan origination are keeping real estate debt fund investors interested in the real estate debt opportunities now and looking forward during the next 12 months, according to Andrew Smith, senior managing director, head of real estate debt, with Kayne Anderson Real Estate.

In an interview published in the June issue of Institutional Real Estate Americas, Smith describes how the real estate private debt market has evolved in the past decade. “During the past 10 or 15 years,” he says, “we have seen the rise of the nonbank lender, particularly in the debt fund space. Borrowers now have a variety of options, and the overall types of debt funds have evolved. In a market that historically had more closed-end, private equity–style funds, you now see more perpetual vehicles with a range of structures, whether that is nontraded REITs or open-end versions of those closed-end vehicles.” Conse