DoubleLine Update on Commercial Real Estate and CRE Debt

News provided by

Feb 08, 2024, 12:05 ET

TAMPA, Fla., Feb. 8, 2024 /PRNewswire/ -- The end of the Federal Reserve's rate-hiking campaign and increased transaction activity will make 2024 a year of improved transparency and credit access for commercial real estate in the U.S., according to a new research paper by Morris Chen, Director of DoubleLine Capital's Commercial Mortgage-Backed Securities and Commercial Real Estate Debt team, and Product Specialist Phil Gioia.

The paper, "Commercial Real Estate Update: It's Always Darkest Before the Dawn," can be accessed here: https://doubleline.com/wp-content/uploads/DoubleLine-Commercial-Real-Estate-Update_2-6-24.pdf

Among other findings, the paper expects payoff outcomes to persist among "multifamily, industrial and lodging property types, while larger-balanced office loans and struggling mall properties had more difficulties refinancing at maturity." The paper foresees a constructive "macroeconomic and technical setup heading into 2024" for commercial mortgage-backed securities. DoubleLine's Commercial Mortgage-Backed Securities and Commercial Real Estate Debt team favors "senior-rated, seasoned conduit bonds that have de-levered over time, exhibit limited extension risk and benefit from well-located nonoffice properties with strong cash flow and sponsorship as well as low refinancing risk."

DoubleLine Commercial Mortgage-Backed Securities and Commercial Real Estate Debt Team

DoubleLine's Commercial Mortgage-Backed Securities (CMBS) and Commercial Real Estate (CRE) Debt team, led by Director and Portfolio Manager Morris Chen, manages $7.2 billion in CMBS and other CRE debt in CRE-dedicated and multi-sector investment strategies and portfolios. CMBS/CRE team members have an average experience of almost 17 years in the industry. Within the CRE asset class, the team invests across the credit spectrum from the senior part of the capital structure through B-piece investments, mezzanine loans and B-notes, with portfolio characteristics managed to meet investors' risk tolerance and return objectives. The team directly participates in CRE debt workouts and direct originations through the DoubleLine platform as well as its strategic partners.

About DoubleLine

DoubleLine Capital LP is an investment adviser registered under the Investment Advisers Act of 1940. DoubleLine's offices can be reached by telephone at (813) 791-7333 or by email at [email protected]. Media can reach DoubleLine by email at [email protected]. DoubleLine® is a registered trademark of DoubleLine Capital LP.

SOURCE DoubleLine