RXR Chairman and CEO, Scott Rechler, recently discussed the state of debt financing with Commercial Observer.
“To refinance some of these loans today you can’t get the same level of proceeds. So, instead of them going up and having a higher loan-to-value level, the borrower or the lender themselves will come to nonbank lenders and credit platforms like RXR, and we’ll provide mezzanine to fill that gap,” Scott Rechler said. “Banks are also in many cases financing credit platforms like ours, where we provide the whole loan and effectively they are providing financing to our loan pool, which also gets them lower capital cost charges and it puts them in a safer position.”
