CAPTURE THE MOMENTUM in the real estate rebound
Invest for the next CRE cycle
U.S. commercial real estate has entered a new cycle. After a prolonged period of valuation resets and limited transaction activity, prices have stabilized, transaction volumes are rising, and investor sentiment is increasingly positive.
Source: MSCI Real Capital Analytics, as of December 31, 2025.
STARTING VALUATIONS FAVOR OVER equity
Following a decade of near‑zero interest rates that fueled property price appreciation, income has re‑emerged as the primary driver of commercial real estate returns.
We believe today’s interest rate and valuation backdrop makes CRE debt well positioned to generate income and enhanced downside protection without relying on price appreciation. Accessed through a Real Estate Income Trust (REIT), up to 20% of qualified dividends may be tax deductible under current law, making tax‑equivalent yields attractive relative to many traditional income options.
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Source: NCREIF ODCE Index, as of September 30, 2025.
Seeking capital preservation
CRE debt has historically combined attractive income with strong principal protection, supported by lower loss rates and higher recoveries than corporate credit. Backed by hard assets and recurring cash flows, CRE lending has tended to absorb stress with greater resilience across cycles.
As a result, CRE debt can serve as a compelling complement—or alternative—to corporate direct lending, particularly in environments where durability and downside protection matter most.
Source: Cliffwater, Giliberto-Levy, as of June 30, 2025, latest data available.
A REAL ESTATE TEAM BUILT FOR THE MOMENT
In partnership with Rialto Capital Management, our team specializes in originating private, senior loans for trusted sponsors. With decades of experience in originating, syndicating, underwriting and managing commercial real estate assets across the capital structure as well as commercial mortgage-backed securities, we offer diversified exposure with a focus on income and capital preservation.
EXPLORE MORE CRE INSIGHTS AND RESEARCH
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