Nailah Flake

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

Volatile. It is not news that in a business that is cyclical like ours there will be periods of volatility, and, over the past year, rapid changes in interest rates, high credit spreads, instability in real estate valuations and bank regulation have all contributed to less liquid markets and suppressed activity within CRE debt and equity. 

That said, volatile times can also present opportunities, and we are seeing transactions that provide good risk-
adjusted return across a broad base of sectors and geographies. We expect to see increased opportunity to provide unleveraged first-mortgage loans secured by stable assets, whole loan construction finance, new issue single-borrower CMBS transactions, rescue financing for portfolio managers secured by a pool of CRE investments, preferred equity, and loan portfolio sales by financing institutions.

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

We recently originated a $1 billion revolving credit facility to a fund of 30-plus real estate funds collateralized by $6 billion of real estate net asset value. The challenges — the size of the deal and desired transaction speed — were also the high points for us, as they played to our competitive advantages. We took down the entire loan, providing our own fund vehicle with an attractive $400 million investment and syndicating another $600 million to Brookfield affiliates and co-investors. We closed the transaction in 30 days, which speaks to our ability to provide certainty of execution and of closure.

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

We continue to pursue lending opportunities on high-quality assets in high barrier to entry markets. We’ve not redlined any asset classes. Residential, industrial and diversified portfolios have remained the most attractive deal types. We really haven’t had to change how we structure loans much because we have long been disciplined about how we approach terms to properly mitigate risk for any transaction.

Has certain lenders’ retrenchment been beneficial to your pipeline? 

The pullback from the bank market has certainly created more opportunities for us to engage on medium- to- highly leveraged deals. Less liquidity in the CMBS markets have opened up more opportunities to invest in horizontal risk retention and subordinate bonds.

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

Look for continued commitment from the sponsor with a thoughtful business plan that positions the property to perform.

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

Borrowers, lenders and investors are all looking for that stability to provide confidence as to where the market is. Rate stability will help limit concerns from those who might be on the sidelines today.

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

The scariest things are always those out of your control. The geopolitical environment and its impact on the market are not getting more predictable.

Lightning Round:

Multifamily or Industrial?

Multifamily.

Taylor Swift or Beyoncé?

Beyoncé.

What would be the title of your Lifetime biopic?

“Authentically Me: The Nailah Flake Story.”

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

We are active with existing relationships but also eager to take on new borrowers.

Vacay time: Mountains or beach?

Beach.

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

I might have said this in a previous CO survey, but I like the idea of being a high-powered performance coach a la Wendy Rhoades on “Billions.”