Inside the Edition: Debt funds raking in billions

Commercial real estate debt is having a moment. New mortgage lending in 2017 is forecast to reach $515 billion, according to the Mortgage Bankers Association — more than the $502 billion originated in 2016 and topping the $508 billion record set in 2007. And real estate debt funds are raising significant amounts of capital from investors. According to the FundTracker database, produced by Institutional Real Estate, Inc., debt-focused funds closed on $21.7 billion in 2016, representing 22.0 percent of total real estate fundraising. The story’s author, Loretta Clodfelter, editor of Institutional Real Estate Americas, explains why investors are fancying debt these days. (03/2017)