| The recovery isn't just about leasing and selling more. It’s also about rightsizing debt, either through refi or trading in distressed debt, and there are plenty of opportunities for both. |
| Beech Street SVP Kristen Croxton, with fellow SVP Greg Reed, expects the volume of CRE refi in Orange County to be steady. “Even with recent increases in Treasury yields, we’re still placing debt at extremely attractive rates,” she says. The duo recently put together $28M in Freddie Mac loans to refinance a portfolio of three OC apartment complexes totaling 238 units, including Rancho Yorba Apartments in Tustin, Santa Clara Apartments in Santa Ana, and Villa Pointe Apartments in Orange. The sponsor, local real estate investor Patrick Cadigan, aimed to avoid an uptick in interest rates while minimizing prepayment penalties on existing loans. |
| Newport Beach-based Sabal Financial Group CEO Pat Jackson believes there will be a continued flow of distressed and other debt from banks nationwide. It’s clean up time for their balance sheets, and it’s going to take quite a while. Sabal is actively hunting for debt that it can profit from, such as its recent acquisition of a $121.5M portfolio from a Southeast-based regional bank. The portfolio includes 44 loans, some non-performing, associated with CRE properties and land in Texas, Florida, North Carolina, South Carolina, Georgia, Virginia, and Missouri. |
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