When the Capital Markets Go Hybrid

MIAMI—Marc Suarez, senior vice president of Hunt Mortgage Group, sees inside the capital stack. Suarez will be among the panelists at RealShare Apartments East on Wednesday, but we caught up with him to get his thoughts on the capital markets in this exclusive pre-conference interview.

Suarez will sit alongside Walker & Dunlop's Paul Ahmed, Aztec Group's Jim Fried, Magic Properties & Investments' Steven W. Moreira and moderator Tim O'Connor, president and regional manager for NorthMarq Capital, in a panel called Under Pressure: Inside the Capital Stack. Be sure to come back to this afternoon's Miami edition for part two of this exclusive interview.

GlobeSt.com: How are debt providers differentiating themselves with the flood of capital coming into the sector?

Suarez: Few providers like ourselves at Hunt are providing balance sheet product that allows borrowers flexibility either via a floating interest rate bridge to permanent structure or a long term fixed rate product. The advantage of our fixed rate balance sheet is our terms and rates are not subject to secondary markets. We have seen a great response to this product as borrowers are looking for certainty of terms that can be delivered regardless of secondary market activity.

GlobeSt.com: How are equity providers differentiating themselves?

Suarez: Equity providers are beginning differentiate themselves as more are now playing in the preferred equity space and taking a hybrid of debt and equity so they can get give borrower and or partner more leverage in the capital stack.

GlobeSt.com: Where is the flow of money coming from?

Suarez: All over the place. Sovereign, private equity, foreign family office, et cetera. Whoever was not in the game two or three years ago is now here and actively looking to deploy capital.