Mike Lavipour

Is it better to be a lender or borrower today? 

Borrowers have more lending options today than they ever did before.  Each lender type stepped into 2026 with eyes to do more business than they did in 2025 (insurance, bank, CMBS, agency, private credit) all for different reasons.  

That said, options don’t change interest rates — marginally up is good for lenders or valuations — and the last five years have been a challenging environment for real estate values. So better to be a lender for sure today. 

What is the biggest challenge you’ve encountered as a lender in 2026?

The first and second halves of 2026 have brought two distinct challenges. Most problem loans were behind us entering 2026, and we spent much of 2025 forming capital around compelling and diverse lending opportunities. 

Despite limited investment sales activity, the 12 months ending June 30 were our most productive origination months since inception as we originated over $8 billion of loans. The biggest challenge to those loans is shorter duration equals less profitability for lenders. Borrowers are continuing to go shorter across the board (great for brokers, by the way) so as lenders we are experiencing the treadmill effect of producing a lot, but seeing a lot pay off as well.

In the second half of the year, as rates have started to increase, the impact improved perceived duration challenges but has required a gradual changing of loan sizing criteria and a re-examination of the current portfolio.

Which property sector is most attractive from a lending perspective today, and which are you most cautious about? 

Industrial is broadly compelling. Demand has exceeded supply, and there has been positive absorption in most markets. Tenants can afford to pay the requisite rents required to access the space they want and need.

We have seen almost all of our speculative industrial lending become substantially leased in 2026, and have seen a renewed pipeline of lending opportunities. 

Multifamily, with a focus on newly delivered assets, has also been attractive. There has been limited new supply so the newest assets will be newer for longer. Interest rate growth has again made multifamily more affordable versus owning, so demand continues to grow. 

We have become more active in self-storage as well as purposely reentered the market on Class A multi-tenanted office. We remain cautious on older vintage multifamily and non-Class A office. 

What’s your competitive edge in deals today, and who are you competing against most often (banks or non-banks)? 

Our competitive advantage remains the same but is more pronounced in today’s environment.  We will show up in this market when others won’t and be flexible around the edges so long as the real estate and sponsor are strong. Having capital across development, bridge and core lending at various leverage points allows us to pursue more opportunities when risk-adjusted returns make sense.

We expect to continue to show up for our top clients and be in client acquisition mode when other lenders leave their clients in the lurch.

Do you expect more or fewer loan sales in the year ahead?

We expect to see more (and are hearing from the brokerage community that more loans are being brought to market). This latest rise in rates and impact to valuations will cause some lenders to cut bait.

What is the most important thing you’ve done as a lender to protect your loan portfolio over the last year? 

Focus on deal selection on new business — 2026 saw tons of requests for multifamily and industrial — while having a view on each and not painting with a broad brush. Also, no free extensions on the existing portfolio — balancing incrementally improving positions on the current portfolio everywhere we could with maintaining client relationships.

Biggest headwind and tailwind to lending activity in 2027?

Headwind: valuations and resulting transaction activity. Tailwind: real estate fundamentals and valuations requiring more of 2027 lending to be filled by private credit.

Lightning Round:

Super Bowl or World Cup? Super Bowl, American football > other futbol.

Best vacation you ever took? San Antonio to watch the Knicks win!

Last time you said, “Phew, that was a close one!”? Happens way too often!

Conversions: “Keep `em comin’ ” or “Sooo 2020 (scoff)”? Keep conversions coming. 

Sun Belt multifamily or Boston life sciences? Sun Belt multifamily — at least there is a clearing level.

Book reader or phone scroller/email checker before bed? Prefer watching a show to wind down. 

Describe your portfolio in one word? Expansive.

Fitness activity of choice? Skiing or hoops.

“Power” song you listen to when mentally preparing for a big event/deal/day? Too embarrassing to share.