In an article for Law360, real estate investments and transactions partner Dan Stanco commented on trends in private credit investing in light of decreased commercial real estate lending activity from banks.
As the practice of back-leveraging continues to gain popularity among investors, Dan noted that "there's a lot of optimism about this current generation of real estate credit funds that are going to the market because of obvious factors" including refinancing opportunities, loan maturities, and the continually reduced rate environment.
The attorneys also expect to see more debt funds buying groups of loans off of banks in the near-term. "A lot of it is with an eye towards increasing liquidity within the banks," and banks are "going to need to offload loans that are both good and bad to make it more attractive for the buyers of those pools," said Dan.
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