Tony Fineman

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

Improving. While the commercial real estate market is still not fully functioning or back to “normal,” the market continues to improve and gain strength, and we are seeing more and more interesting and actionable financing opportunities. We are optimistic that the market will continue to thaw and recover over the next couple of years, allowing us to invest a significant amount of capital over that time period. 

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

Rate cuts will certainly help, but they will not solve all industry woes. Most people do not expect rates to go back to the very low levels we have experienced for much of the last decade and a half, so wherever rates settle, the market will still have to deal with relatively higher rates. Ultimately, the market will continue to claw out of the doldrums it has been in and become healthier, as more and more participants recognize reset asset values and/or are forced to act for one reason or another. The settling or perceived settling of rates is also very important. It felt like we were getting there in that regard, and probably still are, but the recent spike in the 10-year treasury is not helping with that cause.

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

We expect this trend to continue for some time as the banks continue to reassess how they will participate in the commercial real estate finance space. At some point, we will reach a more settled level, but we are not there yet.

How does distress continue to play out in 2025, and how can lenders best protect themselves?

The market will continue to work through distress, and resolve more and more problems with restructured capital stacks, which will create more opportunity to provide both debt and equity. As the market continues to settle, the bid-ask gap between buyers and sellers, and lenders and borrowers, will narrow, which will also create more opportunities.

Tougher market: GFC or these past four years?

The past four years. The GFC was obviously a big deal, but many levers were pulled by government and the private sector that supercharged the market relatively quickly, and in a lot of ways led to the dislocation we have experienced over the last four years. The past four years have also led to what will be more secular changes than what we experienced post-GFC.

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

We are still very enthusiastic about multifamily throughout the country and are making a concerted effort to lend in the space. Although there are markets that have daunting supply dynamics, many of those markets still feel strong to us in the long run. And with drastically reduced construction starts and fewer planned new projects, we believe that the supply will be absorbed in many of the markets. Rent growth has certainly cooled off in most markets, but we account for that in our underwriting and the opportunity to lend at reset bases that are very attractive.

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

Unfortunately, yes. Not really. As a general matter, we have no interest in taking keys back. We want our loans to be repaid, and we have spent and continue to spend a significant amount of time working with our borrowers to facilitate that result. That said, in a small number of situations, we have had to take title to our loan collateral.

Lightning Round: 

AI: Helpful or fad?

Scary.

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

Yes. 

Who will win the presidential election (not who you want to win)?

Trump.

How many days are you in the office today?

Seven.

Pick a movie remake: “Beetlejuice” or “Twisters”?

“The Karate Kid” (with Jackie Chan).

Modify or foreclose?

Modify.

Pref equity or mezz?

Either.

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

Both.

Song title that encapsulates your current mindset?

“Buy Dirt” by Jordan Davis and Luke Bryan.