Weekend View - July 21, 2024

Multiple Perspectives

In this week's episode of Multiple Perspectives, Daniel Brereton provides an in-depth analysis of the current state of the capital markets, particularly focusing on the impact of rising interest rates and changes in the lending landscape on commercial real estate. Daniel highlights the opportunities available in the CRE debt market and discusses EquityMultiple's strategic approach through the Ascent Income Fund.

Key Topics:

1. Impact of Rising Interest Rates on Commercial Real Estate:

   • Effects of the rise in interest rates over the past two years.
   • Changes in real estate property valuations, cap rates, and the cost of new loans and refinancing.
   • Implications for variable interest rate loans and the subsequent impact on cash flow for equity investors.

2. Lending Landscape and Regional Banking Crisis:

   • The role of banking regulations and the Federal Reserve in shaping the lending environment.
   • How the regional banking crisis has led to a pullback in lending from traditional banks.
   • Emergence of debt funds and private lenders as key players in the current market.

3. Opportunities for CRE Debt Investors:

   • Unique market conditions creating higher returns for real estate debt investors.
   • Insights from a recent MetLife article on the benefits of the current economic landscape.

4. EquityMultiple's Ascent Income Fund:

   • Overview of the Ascent Income Fund and its focus on shorter-term senior mortgages across diverse property types and locations.
   • The fund's alignment with investor demand for income-generating, diversified funds.
   • Liquidity options offered after one year for increased investor flexibility.

Contact and Additional Information:

• Learn more about the Ascent Income Fund and other current offerings at equitymultiple.com.
• For questions, contact us at [e-mail].