Deals
Money Is Pouring Into Property Deals Banks Won't Touch
- Investment firms seek record funds for real estate debt
- OCC, Fed raise concerns after doubling of prices in six years
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Heightened scrutiny of U.S. commercial real estate lending is paving the way for lightly regulated investors to gain a bigger toehold in lucrative deals.
Private funds are seeking a record $32 billion for commercial-property debt as buyout firms, real estate investment trusts and hedge funds expand lending. These companies, which typically charge higher interest rates, can move quickly on large loans that may be seen as too speculative for banks.