What we're seeing in underwriting.
Short, working commentary on credit conditions, structure, and the decisions that determine whether a transaction gets financed. Written for sponsors and allocators, not for the newsfeed.
Debt Service, Not Cap Rate, Is Setting the Market
Cap rate is still the number most sponsors lead with. It's rarely the number that actually determines whether a deal gets financed right now.
The Underwriting Doesn't Change Because the Relationship Is Good
A strong relationship with a sponsor should make a process smoother. It shouldn't make a deal financeable that wasn't financeable before.
Speed Without Diligence Isn't a Feature
Every capital source claims to move fast. Few explain what they're skipping to do it.
We'd Rather Pass Than Force a Fit
Most of the deals we don't do aren't bad deals. They're deals where the structure being asked for doesn't match what the transaction can actually support.
Solve the Capital Stack Before You Write the Loan Request
Most capital requests we see start with a number: “I need $X.” Very few start with a capital stack.