“With higher interest rates, the likelihood of additional rate hikes and the looming backdrop of a potential recession, it’s a significantly different landscape than we saw 6 to 12 months ago”

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Despite the uncertainty and volatility in the market, we’ve seen continued lender appetite albeit at a higher cost, reduced leverage, and more stringent collateral and sponsor underwriting. The piece of the puzzle yet to play out is how all of this will impact valuations, while buyers and sellers continue to move much more slowly to transact.

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Some lenders have stepped away or slowed their appetite for lending, which has created opportunity for other lenders. It’s still a competitive sector, but is much more measured than in 2021, which was a record year for deal volume in the industry.

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RARE CRE’s capital services team has been laboriously working to identify active capital providers and the most competitive financing solutions for our clients who may need to refinance maturing loans, or fund the acquisition or development of their projects in the near term.