Chris LaBianca

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

We closed on a hotel deal after the borrower had been under application for a CMBS execution with another lender and the market moved against them. We ended up providing a balance sheet solution which gave the owner the flexibility to monitor current conditions and come back to the debt markets when the terms could be better aligned with the goals for the asset. Having a platform which provides multiple financing executions is particularly meaningful in times of turmoil.

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

All property types are still on the table, although our appetite, structure and pricing have certainly been impacted by what has gone on around us. Our competitive advantage in the current environment stems from the fact that our exposure remains relatively low to the asset class from a debt perspective, and our portfolio age is very young so we are largely unburdened by legacy issues in comparison to the majority of our peers.

Name two markets you’re gravitating toward today, and tell us why.

We are a nationwide lender trying our best to serve the needs of our high-net-worth client base.  Therefore we remain active across the U.S. Are all terms across markets and property types the same? Of course not. Our portfolio tends to be in the coastal and higher-growth markets where our clients are most active, so our lending philosophy is centered around the strength of our relationships with our client base and less about property location.

Has certain lenders’ retrenchment been beneficial to your pipeline? Discuss.

Yes, but not to the extent we had projected. Although our appetite and capacity likely exceeds that of many other banks, a lack of transaction volume and quality financing opportunities has served to limit that advantage. I would project that the conditions supporting this edge will persist into next year, and project that there will be a wider window for us to capitalize on it.

Will rate stability calm market volatility, or is that wishful thinking?

By definition stability should create less volatility, but there are other factors that will influence distressed conditions well into next year. I believe we are in a higher-for-longer cycle, but that the yield curve will revert to its historical trend and rates will stay in a more narrow band in the next 12 months than we have seen in the prior 12, which should lead to increased transaction volume as this reality takes hold.

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

Black swans. Having been through a few cycles, most of the things you need to prepare for you have seen before. Those can be identified, planned for, and you can do your best to try and mitigate the impact. It’s what comes out of left field that catches you without a plan, and typically requires quick thinking and decision-making. COVID was a great example; no one had been through it before, and so figuring out how to react took some time. Those who moved quickly and decisively were rewarded.

Lightning Round:

Multifamily or Industrial?

Short term: Industrial. Long term: Multifamily. Think there will be some near-term carnage in the apartment space.

Taylor Swift or Beyoncé?

Etta James.

What would be the title of your Lifetime biopic?

“Renaissance Man.”

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

Looking to selectively grow the business.

Vacay time: Mountains or beach?

I am a Jersey Shore guy.

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

Bass player in a rock ’n’ roll band.