Jeff Erxleben, executive vice president – managing director, recently sat down with Kelsi Borland from Globest.com to discuss a growing trend in commercial real estate financing: the gap in the capital stack.
An increasing number of financing transactions, particularly for construction loans, have seen a pullback in loan-to-value ratios. In order to make these deals work, an investor is needed to bridge the gap between the senior debt and the traditional equity component.
According to Erxleben, the good news is that a variety of lenders are stepping in to fill this gap, and more creative financing options are getting deals done. Watch the video from the Mortgage Bankers Association’s 2017 CREF conference:
(Note: Flash must be enabled to view the video in Google Chrome)