Navigating the Commercial Real Estate Void: Shadow Lenders and Credit Markets
Shadow lenders such as Carlyle, Castlelake, King Street, HighVista, and Palladius are eyeing commercial real estate as traditional banks and the bond market pull back from lending. Regional banks, which make up 70% of commercial real estate loans in the US, are scaling back on lending due to the US regional bank crisis and rising loan defaults on troubled properties. This could potentially force borrowers to pay higher rates for deals.