Episode 201: CMLs in 2024: A repriced market with attractive opportunities?

In this episode of the InsuranceAUM.com Podcast, Stewart Foley hosts Greg Michaud, Head of Real Estate Finance at Voya, for an in-depth discussion on commercial mortgage loans (CMLs) in 2024. They explore whether the repriced market offers attractive opportunities. Greg shares insights from his extensive background in real estate finance, including his early career as a draftsman and appraiser, and his current responsibilities overseeing the sourcing, underwriting, and management of commercial real estate loans at Voya.

The conversation delves into the current state of the office sector, highlighting the stress due to oversupply and liquidity issues, particularly in urban areas. Greg discusses the differences between urban and suburban office properties, noting the potential for suburban offices to be repurposed into mixed-use developments. They also address challenges in the multifamily sector, including rising expenses and interest rates, and emphasize the importance of experienced borrowers in successfully navigating the market.

Greg shares his views on where the best opportunities lie in the real estate market, pointing to preferred equity, mezzanine, and rescue capital for distressed apartments as particularly promising areas. They also discuss the attractiveness of secondary and tertiary markets, the evolving industrial sector, and the potential for open-air storage solutions. Greg concludes with key takeaways for investors, emphasizing the importance of high-quality assets and experienced operators in capitalizing on current market conditions.

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