Tony Fineman

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

Historic. Although we have had significant market disruptions in the past, the one we are experiencing today is unique, at least as far as the last three or four decades are concerned. We are coming off a 15-plus-year run of very cheap and abundant capital (for several different reasons) and substantial rent/revenue growth. While it is likely that the cost and availability of capital will improve from what we are experiencing today, we are very unlikely to get back close to what we have experienced for over a decade and half prior to this dislocation. 

At Acore, we firmly believe that all of the foregoing will lead to some of the best investment opportunities of the last 30-plus years, as the market begins to accept and absorb the secular changes that we are facing.

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

We recently closed a small portfolio of multifamily construction loans with a strong and pioneering modular construction firm. The biggest challenge was educating ourselves and our investment committee on the particulars of modular construction, and the specific capabilities of and innovations developed by our sponsor. The high point was learning about those capabilities and innovations.

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

We have capital to deploy and are interested in deploying it. However, while we have always been selective and cautious, we are much more so in today’s extremely volatile, uncertain, and illiquid market. We are focused on unique opportunities in high-growth, business-friendly markets with deep-pocketed, liquid, and experienced sponsors. 

From a property-type standpoint, we are most interested in multifamily, industrial, destination/resort hospitality, experiential retail and data centers, although we are willing to consider other property types as well. Not surprisingly, we have very little interest in the office market right now.

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

Most of Florida and Texas, although there are others. Both states are still experiencing strong growth, and are generally very business-friendly, although we are focused on oversupply and cooling in both markets. 

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

Not yet. While there is much less capital today (especially from banks) there are also fewer investment opportunities. We do believe, however, that once the market begins to settle, actionable deal flow will return faster than capital, and, accordingly, we believe very good investment opportunities are on the horizon.

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

Every situation is unique. We are willing to consider almost anything, although we generally require some kind of recommitment from our borrowers/sponsors to consider extending a loan that is otherwise not eligible for extension.

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

Definitely, although the market will also need to accept being in a meaningfully higher interest rate environment for the foreseeable future, and the impact such an environment will have on values.

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

I am not scared.

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

Stop. I would also suggest that he and his partners refrain from trying to fix what they broke because that might make it worse. At this point, let the market figure this out, and we will grow and prosper from here.

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

Get ready for a very bumpy but very interesting ride. Also, don’t buy Treasurys yet!

Lightning Round:

Multifamily or Industrial?

Both.

Taylor Swift or Beyoncé?

Luke Combs (Taylor Swift, if I must pick one of the two options).

What would be the title of your Lifetime biopic?

“Jewish Redneck.”

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

We love all of our children. 

Vacay time: Mountains or beach?

Mountains.

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

Cowboy.