by Yieldstreet | Staff
Yieldstreet Senior Director, Real Estate, Mitch Rosen was recently joined by iBorrow CEO, Brian Good, and Co-Executive Chairman, Andy Peltz for a discussion on commercial real estate lending during a global slowdown.
iBorrow is a nationwide lender that provides non-recourse bridge loans on all commercial real estate (CRE) property types to borrowers who are looking for a fast, flexible, and reliable financing option. Together, Brian and Andy have originated over a billion dollars in loan products through iBorrow.
Here are some of the key insights from the panel discussion held on April 29, 2020.
The panel concurred that the full impact on the global economy is still yet to be determined for the long run and that there were some immediate differences between this and previous slowdowns:
“In 2008 the focus was on banks who were insolvent, but this time the impact is being seen on every industry, including real estate. We are seeing tremendous lay-offs, furloughs, and unemployment claims. The pandemic will affect how people will go about living their daily lives and there’s a real fear that this won’t go away anytime soon,” said Andy Peltz
The panel discussed what kinds of opportunities they would consider within the CRE space going forward, and what they would be avoiding.
“It seems like when the virus gets into senior living spaces, it wipes out the facility and destroys reputation, making it harder to recover,” said Brian Good.
The panel discussed how they would go about approaching a loan that is having issues and how they think about payment modification, foreclosures, and forbearances.
“It really is borrower-dependent. If the borrower really needs the capital and they’ve been a good borrower, we’re going to do everything we can to help them out,” said Andy Peltz.
The panel discussed how they expect to see the economic impact of the pandemic on the retail sector play out.
“You can still have a successful shopping center. I think drug and market centers are surviving if the structure is right in terms of the physical structure and location. Certain cities are overly retail-focused, with too many shopping centers. I think it should be included in real estate portfolios but they must be built the right way, with an appropriate structure and tenant base and people should want to go there,” said Brian Good,
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