News & Press

There is an epic new cloud of uncertainty for real estate finance as lenders try to contain the fallout of the second- and third-largest bank failures in American history.

“There were already two things going against the real estate community — higher interest rates and lower valuations,” said Anchin Block & Anchin partner Robert Gilman, co-leader of the accounting firm’s real estate group. “Now there’s this, which is going to tighten up underwriting, including for credit facilities.”

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While the federal government’s decision to protect SVB and Signature’s customers has helped keep the market somewhat stable, they have injected new uncertainty into what had already been a confusing market.

“Where I think the concern now is going to be is, ‘What is next?'” Anchin’s Gilman said. “Where am I going to get my next loan from if I have to refinance or go out and acquire property?”

Excerpted from the original article published by Bisnow.