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Is commercial real estate debt the superfood of real estate investment?
"The sector is becoming more mainstream than it was five to seven years ago. Commercial real estate (CRE) debt used to be more of a niche play and now an allocation is becoming part of institutional investors' fundamental line-up," commented Jack Gay, Head of Debt Real Estate. Jack has dubbed debt the real estate investment industry's superfood. "It may not be as appetizing as equity, but it's really good for your portfolios."
Fuel your performance with these top five ingredients:
Potential income
Blueberries can lower your risk of heart disease and improve your memory by protecting the brain from inflammation and boosting communication between brain cells.Looking for a healthy addition to boost your income? Well-structured CRE debt offers the potential for stable, income-focused returns at attractive relative yields.
Diversification
A half-cup of spinach provides more than five times of your daily dose of vitamin K, which helps to build strong bones.Meanwhile, CRE debt can strengthen the structure of your portfolio by acting as a diversifier to fixed income, direct real estate and wider investment markets
Market opportunity
Green tea has a combination of powerful antioxidants, which can reduce free radicals in the body, protecting cells and molecules from damage.Seize the day by adding a cup to your morning routine for long-term anti-aging and disease prevention benefits, just as alternative lenders are taking advantage of structural changes in the market to originate CRE debt investments at attractive, risk-adjusted returns.
Stability
One portion of sweet potatoes delivers more than 450% of your daily dose of vitamin A, which protects your vision and your immune system.See the market clearly and protect your health for the long term by accessing potential attractive risk-adjusted returns, relative to fixed income and direct real estate investments, particularly late in the cycle
Diversification
Brussels sprouts have more glucosinolates (compounds that combat cancer and detoxify our bodies) than any other vegetable.Need a tonic to prevent capital depreciation? CRE debt occupies a more secure part of the capital stack than equity, offering a measure of downside and performance risk mitigation through the buffer of the borrower’s equity and excess rent.
Our debt expertise
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