Investment Matters: Building a Bigger Lending Platform
Tom Whitesell, head of Kennedy Wilson’s debt investment platform.
Construction financing carries a higher risk profile than most other loan categories. But even in today’s uncertain climate, some lenders are not only keeping a hand in this category but embracing it. One example is Kennedy Wilson. In a blockbuster $4.1 billion deal last year, the L.A.-based investment company bought Pacific Western Bank’s construction loan portfolio. That move helped double Kennedy Wilson’s debt origination portfolio to $7 billion.
In this episode, you’ll from Tom Whitesell, who heads the debt investment group at Kennedy Wilson. He tells why construction finance is a sweet spot for the company and looks ahead to how the capital markets will respond when the Federal Reserve eventually does lower interest rates.
Whitesell gives a lender’s perspective on which assets are most attractive right now and weighs in on what makes an office building a good candidate for conversion to multifamily. Some of his answers might surprise you.
Episode highlights:
Capital market conditions: When will the Fed move? (1:36)
The ripple effect of rate cuts (3:56)
How quickly will lenders respond? (6:51)
Waiting for problem loan cleanup (8:21)
Giant steps in the CRE debt market (9:44 )
Managing construction lending risk, and how sponsors get funded (13:05)
A young lawyer’s drive to be in the room where it happens (19:13)
An office-to-multifamily success story (and why they’re hard to find) (25:59)
Financing industrial projects: avoiding the elephants (32:58)
The multiple demand drivers for new industrial product (35:05)
Where to find standouts in CRE’s toughest sector (37:46)
Going off the clock (40:54)
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