PERE Credit | Commercial real estate private credit managers are seeing an increase in loan repayments and refinancings as capital markets reopen and interest rates stabilize. Refinancing activity now outpaces acquisition lending, with borrowers taking advantage of tighter spreads and improved liquidity across CMBS, banks, agencies, and private credit. As loan extensions from the past few years begin to expire, debt funds are playing a key role in replacing maturing bridge loans and facilitating bridge-to-bridge takeouts or asset sales, allowing lenders to redeploy capital at today’s valuations.
Greg Friedman, CEO of Peachtree Group, notes that the cost of bridge capital has come down significantly, supporting this rise in refinancing activity. Peachtree typically originates three-year bridge loans with extension options and has increasingly seen those loans repaid through takeouts by other bridge lenders or through asset sales at maturity. This dynamic reflects a more fluid credit environment, stronger exit visibility, and improving conditions for private credit managers navigating the current cycle.
