Abbe Franchot-Borok

Tell us about a recently closed deal you’re proud of, and its biggest challenges/high points.

We have been active on construction and development loans in the second half of 2023. We are particularly excited about our first development loan in the cold-storage sector. We were able to draw upon BGO’s deep expertise in the space on the equity side, where we are a market leader in cold-storage development, to inform our underwriting of the opportunity. We are lending to a best-in-class real estate investment firm, and hope this is the first in what will be a programmatic relationship as they grow their cold-storage business.

What are/aren’t you lending on today, and what’s changed in your loan terms?

We are focused on expanding the opportunity set in multifamily and industrial beyond just Class A apartments and distribution, to other areas of these sectors that benefit from the same demographic and secular tailwinds. For residential, think multifamily, for-sale, student housing, seniors housing, and single-family rental/built to rent. For industrial, think last-mile distribution, cold-storage, and industrial outdoor storage.

Name two markets you’re gravitating toward today.

We continue to be believers in the Southeast and Florida markets due to demographic tailwinds that were accelerated by COVID and continue to be in place. Examples where we have been active would include Raleigh, Savannah and Tampa. While we are excited about these markets, we are also proceeding with caution. There continues to be a focus on market-specific supply-
demand imbalances, affordability concerns, and even climate change-related considerations.

Has certain lenders’ retrenchment been beneficial to your pipeline? 

There has been an accelerated pullback by more traditional providers of debt capital in the real estate sector over the last 18 months, and we have been able to find opportunities to step in and fill the void at what we believe are interesting risk-adjusted returns. We also see the trend towards de-banking (i.e. less capital for real estate lending coming from the banks) as a trend that will continue.

What’s your approach when it comes to loan extension requests?

We are being receptive when appropriate. We strive to be good partners to our borrowers and appreciate some of the challenges in the current market. If it’s a good asset, good market, good borrower that is willing to support the asset — we are confident we can find a solution that works for all parties.

Will rate stability calm market volatility? 

We are preparing for a “higher for longer” environment.

What scares the bejesus out of you in today’s market?

Geopolitical instability.

Lightning Round:

Multifamily or Industrial?

Industrial!

Taylor Swift or Beyoncé?

I’m a Swiftie!

What would be the title of your Lifetime biopic?

“Go Big or Go Home!”

‘Ride or dies’ only (relationship borrowers) or taking on new borrowers?

Both!

Vacay time: Mountains or beach?

Either if there is a golf course! 

Complete this sentence: If I weren’t a lender I’d be a… 

Yoga instructor.