Debt Funds Overtake Life Insurers In Commercial Mortgage Lending
October 2, 2019 by Erika Morphy
Life insurers now have more competition for the best commercial mortgage deals.
Over the last few years debt funds have become an increasingly important part of the commercial mortgage lending landscape. This year, these alternative lenders hit a milestone: for the first half of 2019 they represented a larger share of the commercial mortgage markets than the life insurance companies, according to Real Capital Analytics.
This milestone is even more striking when it is put into historic context. Coming out of the Great Recession, RCA’s Jim Costello writes, life company lenders were the only source of capital available for many commercial property investors, aside from the agencies.