Ironstate recently funded an investment facility on a completed and leased commercial real estate asset. The facility refinanced the construction facility and enables the sponsor to hold the asset. 

Banks are still requiring relatively strong Interest Cover Ratios, which is limiting their leverage on investment facilities, however, sponsors are increasingly looking to hold assets with the expectation that possible cash rate reductions may result in greater demand for income producing commercial properties.

The investment provides wholesale investors with a private credit exposure to a completed and leased asset without planning or construction risk.