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    Bridge lending will become competitive as banks slowly return to market

    Bridge lending should start to pick up, especially as banks slowly come back to the market. Borrowers will favor bridge loans for their speed, flexible terms and ability to finance transitional properties, especially as long-term financing remains expensive. Anticipated interest rate declines could boost borrower confidence, increasing bridge loan demand as investors capitalize on value-add opportunities. However, bridge lending could continue to see low deal volumes for the next two years due to high interest rates, lender extensions and no forced liquidations. More

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    Deal of the Week: Portfolio of 12 Select-Service Hotels

    Access Point Financial provided a total financing commitment on a fully funded loan amount of $126M to American Hotel Income Properties REIT LP (AHIP), a publicly traded REIT located in Canada. The money will be used to refinance, renovate and upgrade a portfolio of 12 premium-branded, select-service hotels totaling 1,233 rooms across the U.S. More

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    Lenders will clock back into office space

    Office lending will start to pick up as most lenders have returned to the space. However, expect lenders to be very selective going forward. There will be a flight to quality and top-tier CBD office with favorable occupancy will be the most sought after. Suburban office with strong performance, cash flow and credit metrics will also see lender dollars. Capital providers are seeking buildings in growth markets with demographic momentum and low remote-work industries. More

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    Hotel sector will receive more bank financing going forward

    Financing for hotels will pick up going forward because of the continued solid performance in the sector, increasing demand for acquisitions and the lack of lender appetite for other asset classes such as office. The biggest trend will be the reemergence of bank financing for acquisitions and refinances of performing properties. Lender appetite for the various brands is approaching saturation points in certain regional markets, particularly at the community bank level. More

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    Deal of the Week: DoubleTree by Hilton in Tucson, Arizona

    This was a refinance of a leasehold interest governed by a Government Property Lease Excise Tax (GPLET) structure, which provides 21 years of property tax abatement. That created complexity during underwriting but also presented a compelling economic story. The borrower also received cash-out proceeds, and the structure included a tailored seasonality reserve that allowed summer draws to be funded in installments instead of upfront. More

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