Fund Friday E87: Commercial Real Estate 2025: Market Cycles, Financing Trends & Equity Strategies with Scott Croul

In this episode, Craig McGrouther sits down with Scott Croul of George Smith Partners to discuss navigating the longest multifamily downturn in recent memory at 36 months and counting. Scott breaks down the current capital stack dynamics, revealing that preferred equity is now pricing at 12-14% with roughly 50% current pay, making it surprisingly competitive for sponsors.

They dive into why bridge-to-bridge financing went from "bad word" to standard practice, and how sponsors are focusing on capital preservation rather than chasing returns. Scott also highlights the market bifurcation: institutional investors are flooding into 2000+ vintage properties with all-cash offers while pre-90s assets struggle to find any buyers. Despite the challenges, Scott sees light at the end of the tunnel with supply chains frozen and absorption remaining strong across major Texas markets.

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