Dan Stanco Comments on Commercial Real Estate Private Credit Trends in PERE Credit

In The News
December 5, 2024

In an article for PERE Credit, real estate investments and transactions partner Dan Stanco commented on the evolving landscape of commercial real estate private credit, noting that the sector has become more "institutionalized."

Dan highlighted the increasing use of NAV loans, explaining that "as funds have gone beyond their intended investment period and are no longer in their capital call periods, they need liquidity and leverage." "NAV loans give them the opportunity to finance their legacy portfolio and work through resolving some of the assets they are holding for longer than expected," Dan added.

As the commercial real estate credit market continues to adapt, Dan anticipates a growing focus on the credit of funds beyond the credit of underlying real estate and managing liquidity pressures to support underlying loans.