FTI Experts’ Hub: Can Rescue Capital Solve Your Refinancing Gap?

In this podcast hosted by CPE’s Laura Valean, FTI Consulting’s Ingrid Noone and Jahn Brodwin discuss how troubled CRE assets can attract fresh capital.

As loans originated in a lower-rate environment come due, commercial real estate owners are confronting higher borrowing costs, lower valuations and, in many cases, refinancing gaps that can’t be solved with conventional debt alone. Office, multifamily and hospitality are among the property types feeling the greatest strain.

In the latest episode of FTI Experts’ Hub, CPE Executive Editor Laura Valean sits down with Ingrid Noone and Jahn Brodwin, co-leads of FTI Consulting’s Real Estate Solutions practice, to explore where rescue capital can fit into that equation. They explain why rescue capital is generally better suited to assets with viable fundamentals but troubled capital structures, as well as how it can be used to bridge refinancing gaps, support lease-ups and fund repositionings.

The conversation also digs into the interests of each party at the table. What might persuade an owner to bring in costly new capital rather than sell or hand back the keys? What concessions may be required from an existing lender? And what protections, returns and governance rights will a rescue capital provider expect in exchange for taking on the risk?

Perhaps most importantly, the guests discuss why timing matters. As Brodwin notes, owners generally have more room to negotiate before a liquidity problem becomes a crisis—and before their leverage disappears.

Here are the main topics discussed:

  • (0:51) The CRE debt maturity wall
  • (2:37) What is rescue capital?
  • (4:41) When rescue capital makes sense and which properties fit
  • (6:02) A hypothetical deal
  • (8:23) A win for every party?
  • (11:19) Owner and lender perspectives
  • (14:33) How the rescue capital provider prices the risk
  • (16:18) What makes a deal succeed and the outlook

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