Mitch Sinberg of Berkadia: 5 Questions

Berkadia’s South Florida team has had an active 2025, closing more than $1 billion in loan originations so far.

Big deals include a $92 million construction loan to Grover Corlew for a multifamily project in Fort Lauderdale, and a $42 million construction loan for Constellation Group’s Miami Beach condo development.

“There’s plenty of capital out there for the right deals that are being developed or bought by the right operators,” said Mitch Sinberg, Berkadia’s senior managing director for South Florida.

Commercial Observer caught up with Sinberg this week to talk about the firm’s direction in the second half of the year, the interest rates against the mortgage market, and challenges moving forward.

The following conversation has been edited for length and clarity.

Commercial Observer: Where is Berkadia’s focus these days?

Mitch Sinberg: We started historically as a very multifamily-exclusive firm on the agency finance side. We’ve expanded that tremendously in terms of structured finance, other asset classes. We’ve really seen a lot more going on in structured finance and in construction.

We closed loans in numerous states last year, probably north of 20. But our primary geography is always going to be Florida. We think it’s one of the best areas, if not the best area, for growth. 

Real estate is a very simple asset: If you grow population, and you grow business, real estate is going to do well. Florida has been a high-growth state. The growth was so rapid and robust, so of course the growth was going to slow, and that’s what we’re seeing.

The sharp rise in interest rates after the pandemic slowed the mortgage market. What are you seeing now?

We’re pairing first mortgage lenders with preferred equity or mezzanine lenders, with additional limited partnership equity partners. It’s no longer just, “Let me find a loan for you.” We’re addressing the whole capital stack. A lot of times in the past, it was just, “We need a mortgage and we need an LP partner.” It’s not that simple anymore.

When do you expect the Federal Reserve to cut rates?

My crystal ball is clear as mud. I think we’re in a healthy rate environment for overall interest rates. Even if the Fed does lower the overnight rate, we don’t expect to see a decline in commercial mortgage rates. I guess they’re expecting two cuts this year, but I have no idea.

What’s your biggest challenge?

We’re in this part of the market where there’s a need for capital, but there’s still not enough transactions happening to make it a fluid market. Assets, particularly those bought in 2022 or beyond, were bought too full and there has to be a repricing.

I thought you’d mention insurance premiums.

Fingers crossed we have another minimal storm season, and we hope that stays and even gets more inexpensive for owners. Two or three years ago, insurance was the topic du jour. Rates went up so rapidly. I don’t think they’ll ever come back to where they were, but the pace of increase has slowed.

Jeff Ostrowski can be reached at jostrowski@commercialobserver.com.