Dennis Schuh

Describe the past 12 months in one word, then tell us the key lending opportunities you and your team have uncovered.  

Exhale. I think the real estate market had been holding its collective breath for a while and finally exhaled this past year with a view that the worst was likely behind us, the storm clouds were dissipating, and capital was starting to flow again. Most of the lending opportunities we uncovered early on were refinancings for either “bridge to bridge” or construction loan takeouts, but acquisition financings certainly increased as the year went along.  

Are rate cuts the silver bullet the industry has been waiting for to solve all woes?   

There is no silver bullet to solve the challenges we as an industry faced following the unprecedented Fed rate-hiking cycle, but rate cuts are certainly a step in the right direction and likely the start of a new cycle. The market certainly believes that we have seen peak rates and that rates are headed lower, which has resulted in changes in sentiment to “risk on” again.  

How long will nonbank lenders continue to take increased market share? 

As a nonbank lender, “To infinity and beyond!” — Buzz Lightyear.     

Tougher market: GFC or these past four years?    

The GFC was the most severe economic crisis since the Great Depression, with massive unemployment and a banking/financial system in peril. It felt like the Fed and Treasury were flying by the seat of their pants. At least they had a playbook to work with from the GFC the last four years.        

Are you still as enthusiastic about multifamily as you were three years ago?    

More enthusiastic. There’s a massive housing shortage across the U.S. While certain markets are still absorbing some new supply from starts a few years ago, new supply is expected to come to a screeching halt in the next 12 or so months, which should provide tailwinds for the sector coupled with reset values and the lack of affordable single family homes keeping renters for longer. 

Have you taken any keys back this year? Wanna talk about it?  

Absolutely. While we are not in the loan-to-own business, we are not afraid to take the keys back when necessary, and our firm has the in-house expertise as a large equity investor to asset-manage the properties to maximize value. In fact, we have made over $100 million of profit taking the keys back over our history.    

Tell us about a deal you’re especially proud of this past year.    

We recently closed on a $110 million multifamily loan in Jersey City, N.J., to bridge the property through final lease-up and stabilization. We provided the sponsor with a ground-up construction loan financing back in late 2021. The property delivered earlier this year, and is already more than 60 percent leased at rents 25 percent higher than our original underwriting. A good example of “one stop shop” financing solutions that we offer.

Lightning Round:

If I could lend money to one person in the world, it would be…

The Oracle of Omaha, given his investing track record.

AI: Helpful or fad?

The next industrial revolution.

Will interest rates be below or above 4 percent on July 1, 2025?

Because everyone wants it to be below, I’m going with above.   

How many days are you in the office today?

Five days a week since May of 2020.

Modify or foreclose?

Modify for a sponsor that continues to be motivated and that you are confident will execute on the business plan. Otherwise foreclose.

Class B office: Tear down and start over, or convert?

Depends on the location, floorplates, debt/equity basis and a host of other factors. 

Song title that encapsulates your current mindset?

“I Gotta Feeling” by the Black Eyed Peas.

Dream dinner date?

Eddie Vedder and Larry Bird.