"Really this has been a debt calamity, debt liquidity freezemuch more so than an equity one," said Adam Raboy, managingdirector of Credit Suisse. "I think most of us will still tell youthat there is a lot of cash on the sidelines willing to invest inequity if they are getting 20-plus percent return on it."

Raboy was the moderator of a panel discussion staged by theULI's Westchester/Fairfield chapter held at the Rye Town Hilton onTuesday. Stewart Campbell, VP, mortgage banker for CapmarkFinancial Group's New York City office, said that the "real hole inthe market" is the lack of permanent financing--seven years ormore--for any type of real estate deal with the exception ofmulti-family. In terms of bridge financing, there is some financingoptions available, however, he notes, not at the leverage levels ofthe past. He adds that on the multifamily side of the business inthe New York region, his firm has encountered competition from areacommunity banks looking to finance projects. Raboy and the otherfive panelists at the ULI conference agree that commercial financeactivity will suffer until someone finds an answer to the lack ofavailable senior debt.

William Lashbrook III, SVP of PNC Bank, said simply: "There isnot enough capital in the commercial banking system to absorb allof the demand for real estate debt that exists in the US today. Oneof the things that is going to have to happen is if you have a dealthat is coming up near term my suggestion is if you can get yourmoney be happy with it, do not argue about the price, do not argueabout the structure. If the market stabilizes in five years you canundo it and recoup. But the commercial banks cannot do italone."