Over $1.9 Trn of CRE Debt Is Projected to Mature Over the Next Three Years
*Sources: Newmark, State of the U.S. Capital Markets (Q4 2023), MBA
Nearly $700B of CRE debt maturing is potentially distressed between 2024-26, particularly in the office and multifamily sectors.
Substantial infusion of new capital will be required to refinance otherwise well-performing properties.
GTIS debt strategy is focused on providing creative capital solutions to real estate operators and developers.
GTIS Seeks To Provide Financing with Equity-Like Returns with Downside Protection
Downside Protection
- GTIS capital is senior to underlying equity in payback priority
- Impairment protection through 25% or higher cushion to loss in underlying collateral value
EQUITY-LIKE RETURN IN SAFE PART OF THE CAPITAL STACK
- Deal-level returns generated from a combination of current interest, accrued interest and fees
- Often includes minimum return multiples or rate floors
- Secured by covenants that limit borrowers’ ability to increase debt, make distributions, or liquidate assets
Tranching Upside
- GTIS may provide a whole loan at 0-75% and then tranche the loan into senior A-piece that is sold while a higher-yield mezz piece is retained
- Provides flexible structure unique to each opportunity that is valued by borrowers
We believe the risk-return profile for providing high-yield real estate debt has improved following the banking liquidity crunch.
We believe the risk-return profile for providing high-yield real estate debt has improved following the banking liquidity crunch.
2021
2024, Estimated
Change
Base Rate
<.0%
%
+%
Spread
.0%
.0%
+.0%
Amortized Points and Fees
.0%
.0%
+.0%
Total Yield
.0%
%
+%
2021
2024, Estimated
Change
Base Rate
<.0%
%
+%
Spread
.0%
.0%
+.0%
Amortized Points and Fees
.0%
.0%
+.0%
Total Yield
.0%
%
+%
*Figures represent GTIS illustrative investment terms for debt investments in 2021 as compared to the current market. These figures are hypothetical, not actual, and are based on GTIS’ estimates and assumptions based on internal research and data. Although GTIS believes such determinations are reasonable, they are inherently subjective in nature.
GTIS Investment Strategies
Construction Financing
Provide High-Yield Construction Financing For New Development in Resilient Sectors
Marketing Focus
Land development and homebuilding in top tier suburban locations For-sale and for-rent multifamily Industrial logistics
Refinancing Solutions
Refinance Existing High Quality Assets that Are Facing Maturing Debt
Marketing Focus
Residential, industrial and select retail and hospitality assets in growing Sunbelt markets and select gateway cities
Acquistion Bridge Loans
Originate High-Yield Acquisition Loans And Bridge Loans for High Quality Sponsors
Marketing Focus
Residential, industrial and select retail and hospitality assets in growing Sunbelt markets and select gateway cities
Construction Financing
Provide High-Yield Construction Financing For New Development in Resilient Sectors
Marketing Focus
Land development and homebuilding in top tier suburban locations For-sale and for-rent multifamily Industrial logistics
Refinancing Solutions
Refinance Existing High Quality Assets that Are Facing Maturing Debt
Marketing Focus
Residential, industrial and select retail and hospitality assets in growing Sunbelt markets and select gateway cities
Acquistion Bridge Loans
Originate High-Yield Acquisition Loans And Bridge Loans for High Quality Sponsors
Marketing Focus
Residential, industrial and select retail and hospitality assets in growing Sunbelt markets and select gateway cities