SAN DIEGO—As investors are looking to take on the CRE CLO space, panelists during an MBA CREF breakout session this week say SASB "is the cleanest." The reason, according to Erin Stafford, managing director and head of North American CMBA, is that they can do their due diligence and really dig in and do the real estate analysis with SASB.
"The challenge that still remains, though, is the transparency of the market," said Stafford. "In the CRE CLO space, because these are replenishing pools, there is a challenge to get information."
She explained that while it is clear that investors do see the great performance and the great volume in that arena, in order to "go down and risk, you have to be more transparent and give them more information."
Recommended For You
In general, the migration in credit quality is also holding up across sectors, Stafford said. "Where we are seeing push is if you look at the CRE CLOs and look at what type of upside people are projecting, it is starting to get a little thin," she said. "But otherwise, things are holding up well from a credit standpoint."
Fundamentals are strong across the board for multifamily, she added. "We continue to have a negative view on suburban office and will still have a challenge. We are seeing some increased vacancy in office. Retail isn't all bad, but it just gets a bad headline."
She noted that the regional malls are being flushed through, but said that they were bad before Covid. "Covid kicked them and they are working through the system, but new things aren't popping up."
Part of the problem with the regional malls, according to Jan Sternin, SVP and managing director in the New York office of Berkadia, is that "we didn't know how to repurpose them. That was part of the problem…you've got to have a plan."
According to panelist Quentin Fogan, managing director of CMBS origination at Bank of America, fundamentals for the CRE lending space by and large through Covid did better than expected. "Broadly speaking," he said, "multifamily and industrial outperformed."
Check back with GlobeSt.com for more coverage from the MBA CREF event here in San Diego and click the below stories you might have missed.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
