Sector Deep Dive – Real Estate Credit
What is Real Estate Credit?
Private financing for real estate debt being driven by a decline in bank lending.
Sector Deep Dive
$2T
commercial real estate debt maturing through 20281
$805B
of projected 2026 commercial real estate mortgage originations, up 27% from 20252
Commercial real estate values may be stabilizing
Values have reset from 2022 peaks.3 Capital markets have reopened and transaction activity is accelerating.
Banks have only come back selectively
Banks are lending at lower leverage points than in the last cycle4 and private credit may help fill the gap.
Reset base rate environment
Deploying capital into a reset rate environment without exposure to previously originated legacy loans.
Dedicated Leadership: Bluerock’s new Head of Real Estate Credit
Leads Bluerock’s real estate credit platform and oversees origination, underwriting, portfolio management, and asset management
15+ years of investment experience across lending, structured credit, and special situations.
Previously Managing Director at Axonic Capital, part of a team that source and executed $10B+ of real estate transactions.
Inside the Deal
50%
Post-renovation Loan-to-Cost (LTC)5
Great Wolf Resorts Institutional Sponsorship
Great Wolf Lodge B-Note
Performing B-Note investment: marquee indoor waterpark resort 3 miles from Disneyland
Low-leverage credit financing a newly renovated asset: $170M sponsor equity behind us; 50% LTC post-renovation
Strong institutional sponsorship: Great Wolf Resort co-owned by Blackstone and Centerbridge
Acquisition date June 17, 2026.
Logo represents investors in the borrower and do not represent an endorsement of the Fund.
1 Source: MBA 2025 Commercial Real Estate Survey of Loan Maturity Volumes, February 2026.
2 Source: MBA CREF Forecast, February 2026.
3 Source: NCREIF as of Q1 2026, represents NPI Capital Value Index. Values are inflation-adjusted.
4 Source: CBRE Lending Momentum Index, Q4 2025. Average commercial Loan to Value ratio of 60.9% in Q4 2025, compared to the 2019-2021 lending cycle.
5 Loan-to-cost (LTC) represents the loan amount as a percentage of total project cost, including acquisition and renovation expenses.
LTC (Loan-to-Cost): The ratio of a loan amount to the total cost of acquiring or developing a property, used to measure leverage in real estate credit transactions.