Banks’ ‘Broken’ Model Ramps Up Property Challenges, Lender Says
- Madison Realty Capital co-founder sees opportunity in pullback
- Higher interest rates froze US commercial-property market
Photographer: Andrew Caballero-Reynolds/AFP/Getty Images
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A “broken” model in banking is creating issues for financing in the commercial real estate industry, according to Josh Zegen, co-founder of Madison Realty Capital.
As banks have pulled back from property lending, Zegen’s firm sees opportunities to fill the void. Madison Realty Capital seeks to make whole loans, including for construction projects, as well as buy both performing and non-performing debt and provide financing to other lenders, he said.