• Blog
  • Retail
  • These Are the CRE Lenders Financing the Retail Segment

These Are the CRE Lenders Financing the Retail Segment

Assuming you haven’t spent the past couple of years hiding behind a clothing rack, the news that retail has been contending with an onslaught of store closures and the bankruptcies of big chains like Payless, Sports Authority and Toys “R” Us isn’t new to you.

(To find out how retail helped drive a decline in lending in Chicago, read our Chicago Lending Spotlight.)

But what you might not be sure of is who remains active in retail financing and what the big picture is. After all, we hear a lot about the bad news, but how bad is it really?

The big picture: Retail vs. all property types

CrediFi looked at loan volume across the country to take the pulse of CRE financing activity since the global financial crisis.

When we examined commercial real estate loans by property type, we found (no surprise) that loan activity growth has been slower in the retail segment than in all property types.

The good news is that quarterly loan growth compared with our starting point of Q1 2009 has continued, albeit at a slower pace, as can be seen in the graph below.

“Retail financing is underperforming the market overall, but it hasn’t dropped off the cliff,” said CrediFi CEO Ely Razin.

What’s more, the uncertainty in the retail segment can create opportunities for long-term investment in high-quality properties.

“There are pricing opportunities,” Ronald Dickerman, president and founder of New York-based real estate investment firm Madison International Realty, said at DLA Piper’s 2018 Israel Real Estate Summit in Tel Aviv on Wednesday. “All retail is not created equal.”

The players: Who’s financing retail properties

We know that, as we saw above, retail CRE financing hasn’t “dropped off the cliff,” but that doesn’t mean all lenders are running to finance the next retail mortgage request that comes across their desk.

CrediFi analyzed the portfolios of lenders across the U.S.to figure out which banks and non-bank lenders were the ones financing retail properties in 2017.

We examined the number and  size of the loans originated to see who’s financing small-balance loans, midsize mortgages and big loans.

So who’s the biggest lender for the biggest loans?

Bank of America is the top lender for U.S. retail loans of over $150 million each, followed by Wells Fargo and Citigroup.

The list also includes foreign lenders such as the U.K.’s Barclays, Canada’s Royal Bank of Canada (which acquired Los Angeles-based City National Bank in 2015) and Switzerland’s UBS, along with the Guardian Life Insurance Company of America. The insurance provider ranked as the No. 10 loan originator for retail mortgages over $150 million.

Though we often think of big malls when we think of big-ticket retail properties, some of Bank of America’s large-balance loans are not for malls but for portfolios of standalone retail.

For instance, Bank of America originated a $335 million loan in June to Wendy’s franchisee Briad Wenco for several Wendy’s properties in Pennsylvania and New Jersey, including standalone Wendy’s restaurants at 132 N. MacDade Blvd. in Glenolden, Pennsylvania, and 3100 Chichester Ave. in Marcus Hook, Pennsylvania.

In Colorado, Bank of America financed a portfolio including the standalone auto body shop Caliber Collision at 4635 Park Vista Blvd. in Colorado Springs, along with its offices. The portfolio is owned by Dallas-based real estate investment firm Capview Partners, which specializes in single-tenant, net lease retail properties. In January, Capview raised over $126 million for a fund that focuses on freestanding buildings with a single tenant.

Now let’s examine retail loans in the $10 million to $25 million bracket.

What we found was that many of the national banks financing the largest retail loans are also financing smaller ones. Wells Fargo, for instance, was the top CRE originator for this bracket in the retail segment in 2017, and No. 2 in the over $150 million bracket. Other banks on both lists include Bank of America, Morgan Stanley, Citigroup and Goldman Sachs.

Other lenders in the $10 million to $25 million category include smaller regional banks such as Cleveland-based KeyBank and Dallas-based Comerica.

Connecticut-based private investment firm Starwood Capital Group, which closed its 11th opportunistic real estate fund last month at $7.55 billion, rounds out the list for this category.

While retail players will undoubtedly conduct their due diligence in a time of uncertainty for the segment, our analysis shows that reports of retail’s death have been greatly exaggerated.

Yes, CRE loan activity in the retail segment is underperforming and brick-and-mortar closures continue to be a concern. But CRE lenders – from big national and foreign banks to smaller regional players and non-bank lenders – continue to finance retail properties and loan activity continues to grow.

Close Menu

Book your personalized
CRE data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.

Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.

Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.

We track over
10,000 CRE lenders.
What data would
you like to demo?

Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.

Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.

Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.

Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.

Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.

Book your personalized
CRE data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.

Book your personalized
CRE data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.

Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.

Discover new opportunities.
Speak with a CredifX representative today.

Increase your lending opportunities.
Speak with a CredifX representative today.

Demo our up-to-date
ownership & contact
information.

We track finance data
on all U.S. markets.
Which market's CRE data
would you like to demo?

We track over
10,000 CRE lenders.
What data would
you like to demo?

Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.

Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.

Find the lenders who
give you the best terms –
not just the ones you
already know.

Gain access to CRE finance data on 6M properties & 4M loans.

Secure the financing
you need.

Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.

Book your personalized
CRE data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.

View Madison Realty
Capital's lending profile,
documenting recent loan,
owner and property information.

How would you like
your CRE data
delivered?

Demo our up-to-date
lender, owner & contact
information.

Demo our up-to-date loan,
ownership & contact
information.

Book your personalized
CRE data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.

Request a CrediFi
demo today.

Gain access to CRE finance data on 6M properties & 4M loans.

Book your personalized
CRE data consult today.

Gain access to CRE finance data on 6M properties & 4M loans.

Alex Veksler

Head of Content

Alex Veksler has 16 years of finance, data analysis and project management experience. He is a former vice president at Morgan Stanley, where he worked on product control of equity and fixed-income derivatives products as well as various projects involving finance and technology, such as revamping risk attribution and balance-sheet systems for profits and losses. Alex has previously worked at hedge funds, most recently as a director at Exigent Capital. He has a bachelor’s in computer science from Yeshiva University and an MBA from New York University.

Ely Razin

CEO

Ely Razin founded CrediFi in 2014 with Battery Ventures. A rare combination of seasoned corporate executive and technology entrepreneur, Ely previously served as global head of board governance for Thomson Reuters Accelus and head of business law for Thomson Reuters, after the software company he founded was acquired in 2004. The company, Expert Ease Software, developed AI-based software that automatically summarizes key deal terms for transactions in fields including capital markets, M&A and real estate. Ely began his career as a corporate and securities lawyer, and holds an LLB and MBA from York University.

Frank Muhlon

Head of Transactions

Frank Muhlon oversees CredifX, the commercial real estate financing marketplace that mines the CrediFi database at its core. Prior to joining CrediFi, Frank served as vice president of Northeast region business operations for online CRE property trading platform Ten-X, which has closed over $40 billion in transactions since its inception. He has also held key positions at Orix USA/Houlihan Lokey, Silverstein Properties and Trammell Crow Company. Frank received his master’s degree in real estate finance from New York University and his bachelor’s in finance from Rutgers University.

Charles Mctiernan

Head of Sales

Charles Mctiernan comes to CrediFi from Ned Davis Research Group and Roubini Global Economics, where he was the global head of sales. He also spent more than 10 years at Reuters America Holdings, where he held a number of senior sales leadership roles, including head of solutions sales and head of global accounts. Charles, who received his bachelor’s in economics from East Carolina University, has more than 25 years of experience in technology, data and research sales.

Amichai Levy

VP R&D

Amichai Levy is the former VP of R&D at Israeli high-tech firm Payoneer, where he developed its signature cross-border payment platform and integrated it with existing bank technology. In his prior role at Ness Technologies, Amichai was a key player in developing an electronic case filing system for Israel’s courts. He has over 20 years of experience in software engineering.

David Fajgman

Head of Finance

David Fajgman brings over 14 years of financial and managerial experience to CrediFi. Prior to joining the CrediFi team, he served as finance director of Bioness Neuromodulation Ltd., which develops and manufactures medical devices involved in neurological rehabilitation. He has previously worked in multiple finance roles at Thomson Reuters and as an accounting and consulting manager at Ernst & Young, where he was responsible for a wide range of clients, including companies listed on the Nasdaq and privately held high-tech companies. David is an Israel-licensed certified public accountant and has a bachelor’s degree in business and accounting.

Liat Bar David

Head of Human Resources

Liat Bar David has over nine years of human resources experience, primarily focused on the high-tech industry. She is a former HR business partner at semiconductor solutions provider Broadcom, where she was responsible for onboarding processes, benefits, policies, training and development, performance management and employee retention. Liat holds a bachelor’s in communication and human services and a master’s in human resources and services, both from the University of Haifa.