Sang Yu
Partner at Apollo Global Management
What are the key lending opportunities you see as we round out 2021?
As we move toward the end of 2021, the pace of activity in the commercial real estate lending market continues to accelerate, fueled by the combination of low interest rates and significant fund flows. The market is on track for a record year for loan originations and at Apollo, we expect to complete nearly $13 billion in lending volume. Given the size of our global platform and the diversity of balance-sheet capital we lend on behalf of, we are able to lend across a broad spectrum of property types and geographies. This year, Apollo was particularly active in Western Europe, participating in several large transactions in the logistics, hospitality and office sectors. Another area we expanded into was providing long-term, fixed-rate loans, many of which were for multifamily assets throughout the United States.
Where are you seeing the most competition for deals today? What is the greatest weapon in your arsenal?
Everything is competitive right now, given the amount of capital to be invested in the market. Apollo’s key differentiator is the permanent balance sheet capital that we invest. Given our flexible capital, we are able to be creative in structuring and underwriting and can offer longer terms. In addition, we can provide larger loans and offer the borrower the ability to work with one source, rather than a syndicate, offering ease of execution.
New York City: “I want to be a part of it”?
We believe in New York. Our headquarters is in New York. Loans securing properties in New York represent a large portion of our overall $33 billion global loan portfolio. New York remains one of the largest, most liquid real estate markets in the world and we remain an active lender in New York.
What are your favorite secondary markets and why?
Austin and Nashville are two markets we like, given current growth trajectories and positive demographic trends.
Are you adding life sciences deals to your loan portfolio? Why or why not?
Apollo closed several lending transactions in the life sciences sector, including the $300 million first mortgage loan we did for Taconic Partners and Nuveen Real Estate’s West End Campus, a 400,000-square-foot conversion project on the West Side of Manhattan. We continue to evaluate loans for both new construction and conversion, but we are highly selective and really focus on sponsorship and location. Not every suburban office building needs to be converted to a life sciences deal.
What keeps you up at night?
My children.
Lighting Round
First work trip post-COVID?
Miami.
“Ted Lasso” or “The Morning Show”?
“Ted Lasso.”
Peloton or outdoor cycling?
Outdoor cycling.
Last book you read?
“Great Expectations” by Charles Dickens.
Who would play you in the biopic of your life?
Ryan Gosling.
