Let’s be honest: the capital stack in commercial real estate (CRE) isn't broken—it's just fractured. Only the most astute operators are adapting quickly enough to seize the opportunities that arise.
In commercial real estate, there’s one thing I’ve learned above all: it’s not just about the numbers you’re looking at, but how you’re leveraging those numbers.
Let’s just say it: the commercial real estate lending system isn’t working the way it used to. Lender appetites change like the weather. Their credit requirements are kept in a black box, and you don’t know what you don’t know.
It seems CPACE is all the rage today. In the capital markets, everyone and their dogs are opening a CPACE originations shop. WHY? Because values today are penciling lower than they were 4 years ago.