Many real estate funds have raised billions of dollars in the last several weeks. Douglas M. Weill of Hodes Weill & Associates says that Blackstone Group, Kayne Anderson Capital Advisors, Starwood Capital Group, and others are sitting on $300B of equity that they are ready to deploy. For perspective, deal volume totaled $570.6B in 2019.
As of April, 5,000 borrowers, which represent 17% of $583.8B in CMBS debt, asked to explore forbearance or other relief. Trepp noted that loan servicers who represented 70% of CMBS reported that 19.3% of hotel loans, and 10 percent of retail loans were more than 30 days late and the end of grace periods could significantly increase those percentages.
According to Green Street Advisors, the value of lodging properties slid 16%, malls by 25%, and strip retail by 15% over the last three months. Overall, CRE values dropped by 10%.