Nailah Flake
Managing Partner at Brookfield Real Estate Finance Partners
Where in the capital stack are you most comfortable playing today, and where are you finding the best lending opportunities?
Our primary focus continues to be on whole loan originations where we either hold the entire loan for one of our debt funds or separate accounts, or where we bifurcate the loan into a senior position for purposes of syndicating a senior mortgage and retaining the mezzanine loan or junior position for investment. Most recently, given the higher interest rate environment and current market dynamics, we have seen more opportunities to acquire CMBS positions. The best lending opportunities for us are, as always, on quality assets in core markets with strong and well-capitalized sponsorship. We remain focused on constructing a well-diversified portfolio with a focus on residential and industrial, but are also looking selectively at office, hospitality and other alternative asset classes such as self-storage and student housing.
What’s your best piece of advice for borrowers seeking financing during turbulent times?
My advice during turbulent times is not a lot different than it is during stabler times. A strong relationship between borrower and lender is a partnership that is governed by transparency. Especially during these turbulent times, lenders are looking for borrowers to show commitment to their assets, invest capital where needed and commit to a strong business plan to protect asset value.
Would you rather finance a well-established sponsor on a Class B office renovation in New York City, or the first-time developer of a multifamily project in the Sun Belt today? Discuss.
I’d rather finance a well-established sponsor on a Class B office renovation in New York City, provided it is part of a transformational renovation/repositioning that will attract quality tenants and drive leasing.
What’s your take on an impending recession? How bad might it get, and what are the silver linings (if any)?
None of us can predict when a recession will hit and how long it will last. However, while all signs indicate the possibility of a recession, I am optimistic that we will be in recovery before long.
What would you do differently during the next pandemic?
Our portfolio fared well during the pandemic, and we continue to see strong performance as a result of maintaining a disciplined approach to underwriting, loan structuring and asset management. We also don’t finance our business with leverage, such as repo financing, which has allowed us to remain active in deploying capital into attractive investments despite the market volatility.
What keeps you up at night, and what helps you sleep?
I try not to allow work matters and uncertainty about things I can’t control to keep me up at night, and I generally sleep pretty well. If anything, binge-watching shows on Netflix keeps me up at night, and Pilates three to four times a week helps me sleep.
Lighting Round: Would you rather…
Run a marathon or swim in the Gowanus Canal?
Marathon.
Be a contestant on “American Idol” or be a contestant on “Survivor”?
“American Idol.”
Work remote 100 percent of the time or work in an office 100 percent of the time?
In the office 100 percent of the time.
Sit in L.A. traffic for two hours or sit in a stalled NYC subway car for 30 minutes?
Subway for 30 minutes.
Fight 100 duck-size horses or one horse-size duck?
One horse-size duck.
Work in a Michelin-starred kitchen or work in a McDonald’s?
Michelin-starred restaurant.
