Teresa Zien, Yorick Starr and Charlie Rose

Invesco’s Charlie Rose, Yorick Starr and Teresa Zien took advantage of the sharp decrease in bank lending last year by focusing on multifamily and industrial, and by centering their efforts on repeat clients, originating $1.1 billion for the year.

“We have always had a ‘credit over yield’ mandate and a relationship focus as a real estate lender,” said Rose. “So during times like this, we always refocus our efforts on our best relationship clients.”

Invesco closed on the origination of 21 new loans last year with an average as-is loan-to-value of around 65 percent, with 90 percent composed of residential, industrial, self-storage and life sciences. This included providing several aggregation facilities focused on the industrial, industrial outdoor storage, and single-family rental sectors.

Internally, while the company boasts zero turnover on the credit side above director level for the past seven years, 67 percent of promotions on their North American team went to diverse talent. Rose himself cites Zien, who added lead portfolio manager to her managing director and other duties last year.

So far this year, Rose said that transaction levels improved in the first quarter of 2024 compared to 2023. Given the company’s strengths and the sharp decline in bank finance, Rose expects Invesco to continue to have a strong 2024.

“We’ve set an internal target of originating $4 billion in loans in 2024,” said Rose. “That would be consistent with our 2022 level of lending activity, and we’re on track to hit that level of loan origination based on what we have closed and captured to date this year. We’re optimistic that it’s going to be a great year for alternative lenders, where we can continue to originate very high-quality loans to institutional sponsors at moderate leverage levels averaging 65 percent, and substantially increase our market share as a result of fundamentally less competition in the marketplace.”