Why commercial real estate (CRE) debt?
CRE debt offers an alternative source of income and diversification at a time when both are hard to find.
Need for cash flow
Need for transparency
Need for diversification
Correlation of CRE Debt to Major Asset Classes (2011-2019)1
*Standard deviation calculated from Bloomberg REIT and High Yield indices.
**Industry standard for “reasonable loan-to-value” is 80% or lower – source: Investopedia.com