Teresa Zien

Describe the past 12 months in one word, then expand on your choice.

Volatility.The Fed rate hikes (or cuts) and constant changes in market perception of the trajectory of rates have kept us in a constant price discovery mode as to how impacted cap rates and values will be. And yet, ironically, this is the type of market environment where we can be particularly constructive as a relationship-oriented balance sheet lender. 

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

We are sticking to our highest-conviction ideas across industrial and residential/multifamily. In this market environment, it is important to focus on assets that demonstrate strong, supportable fundamentals and are well positioned to benefit from secular and cyclical tailwinds. I am proud of my team and myself for securing senior financing for 10 loans, consisting solely of multifamily and industrial, totaling over $600 million, in recent months.

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

It is difficult to call out two metropolitan statistical areas, as it is important these days to focus on the micro location. Within residential/multifamily, we are spending notable time drilling down on asset selection based on the market dynamics, specifically supply considerations. Over the past six months, we have closed loans in New York City, Los Angeles, Miami, Atlanta, Silicon Valley, Seattle and Richmond, Va. The unifying theme of those transactions has been our focus on relationship institutional sponsors and submarkets with highly favorable supply-demand dynamics.

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

The current market environment post-banking crisis has created a generational opportunity for lenders. A pullback from the banks who have traditionally been the largest providers of credit to commercial real estate globally will certainly expand investment opportunities for alternative lenders like Invesco to fill the gap. 

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

I believe rate stability will calm market volatility, but, in the near term, it is wishful thinking. That said, we don’t shy away from lending into a volatile market.

 If you had five minutes with Jerome Powell what would you say?

I’m glad I’m not in your shoes, Jerome. … I would be interested to hear what his go-to data sources are, and who are his top three people to seek advice from. I’d also ask if he would have wanted to start rate hikes sooner, and, if so, when he would have started. 

If you could make like Scott Baluka and quantum leap back to November 2022, what would you tell yourself?

I had my son on Nov. 1, 2022, and that was grueling compared to this market cycle. However, given where we are in today’s market, I’d tell myself to hang in there since there have been many cycles like this before and we have come out on the other side.

Lightning Round:

Multifamily or Industrial?

Multifamily/single-family rental.

Taylor Swift or Beyoncé?

Both. I cannot pick just one!

What would be the title of your Lifetime biopic?

“Cut to the Chase.”

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

Definitely our “ride or dies.” Invesco Real Estate is a relationship lender. For the past 40 years, we have been there for our clients, helping them to find opportunities through many different market cycles.

Vacay time: Mountains or beach?

Beach.

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

These days, a rates trader. It must be an interesting time for them.