Commercial Real Estate Financing | Hedge Fund Moves

Commercial Financing Trend

Commercial Real Estate Financing Trend


I have received over 250 emails from commercial real estate professionals looking for capital from hedge funds. As I usually market and work with more traditional long/short funds I have not been in contact with many who invested in commercial real estate financing projects. It seems that investing in these projects is in fact a growing trend based on this article below:

A question and answer session with Ron Koenigsberg, president of American Investment Properties.

Q: How has the role of hard money lenders in the commercial real estate market become more essential?

A: Hedge funds have been quick to respond to the financing drought. Today as many as 140 hedge funds specializing in distressed assets or fixed-income securities have now begun to provide commercial real estate lending. More hedge funds are looking for opportunities in commercial real estate because the sector offers higher returns relative to the risk they are taking. Default rates on commercial mortgages are hovering around levels of less than 1%.

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Tags: Commercial Real Estate Financing, Commercial Real Estate Project Financing, Financing for Commercial Real Estate Projects, Commercial Real Estate Investing

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