The commercial real estate lending market is entering an origination-focused phase as liquidity improves and investor confidence returns, according to Dean Dulchinos, group head of real estate debt at ORIX USA, in an exclusive interview with IREI.
“We believe the market has decisively shifted into what we would describe as an origination-focused phase,” says Dulchinos.
Recent market activity was centered on resolving distressed situations created by capital structures that no longer aligned with rising interest rates and shifting financing conditions. Those pressures led to foreclosures, deeds in lieu of foreclosure and other restructuring outcomes that have largely worked their way through the system.
“What dominated the market was forced-sale distress tied to problematic capital structures,” says Dulchinos. “Much of that lower-quality distress has now been flushed through the system.”
What remains today are generally higher-quality assets wi
