{"id":1004319737,"date":"2019-05-01T08:16:01","date_gmt":"2019-05-01T16:16:01","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004319737"},"modified":"2022-12-08T06:16:12","modified_gmt":"2022-12-08T14:16:12","slug":"6-questions-for-fcps-new-chief-credit-officer","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/6-questions-for-fcps-new-chief-credit-officer\/","title":{"rendered":"6 Questions for FCP\u2019s Steve Walsh"},"content":{"rendered":"
\"\"<\/a>

Steve Walsh, Principal & Chief Credit Officer, FCP. Image courtesy of FCP<\/em><\/p><\/div>\n

In his new role as principal & chief credit officer at FCP, Steve Walsh oversees asset and corporate finance for the diversified investment management and development company. His 20 years’-plus experience as a capital markets professional also includes stints at CarrAmerica Realty Corp., The Mills Corp. and NationsBank.<\/p>\n

Walsh recently offered perspectives on what’s ahead for the real estate capital markets in a wide-ranging exchange with CPE.  <\/p>\n

What are the main trends in today\u2019s real estate capital markets environment?<\/strong><\/p>\n

Walsh:<\/strong> A couple of trends continue to shape the environment. For example, the increased sources of debt capital, including funds and non-traditional finance<\/a>, have made financing easier for most product types. Also, spread compression helped ease the impact of the rise in rates over the last couple of years, especially on the short end. In addition, CMBS, although diminished, has continued to provide a source of debt capital.<\/p>\n

Tell us about the biggest challenges in the sector, and how you see these issues going forward.<\/strong><\/p>\n

Walsh:<\/strong> A downturn will likely cause some shakeout, although it might not be precipitated by real estate. It could be leveraged loans, CLOs, etc. Also, some product types, including multifamily, are likely to continue to have cash flows impacted by concessions due to supply issues.<\/p>\n

\"\"<\/a><\/p>\n

How does the late-cycle economy impact the cost of capital?<\/strong><\/p>\n

Walsh:<\/strong> Good question. Normally, the impact could be significant, because spreads widen considerably, and liquidity is pinched, but it sure seems like that is not on the horizon.<\/p>\n

Which property type is proving most difficult to finance, and why? Which one attracts capital most easily?<\/strong><\/p>\n

Walsh:<\/strong> The most difficult property sector to finance\u2014out of the ones where we are active\u2014is office, due to the lumpiness of the cash flows, large capital expenditure outlays and tenant mobility. Tenants have a lot of choices now.<\/p>\n

The easiest is multifamily. The agencies\u2019 participation throughout all cycles have historically kept this property sector very liquid. In addition, the cash flows are steady and the capex is not as significant.<\/p>\n

What are your expectations in the year ahead when it comes to the competitive debt environment? Will the increased appetite for risk continue?<\/strong><\/p>\n

Walsh:<\/strong> I believe that the market will be liquid, and rates\/spreads will generally hold in at current levels. We are a very creditworthy borrower so we should be able to access the market at competitive levels without interruption. The risk appetite is a little more muted. Some areas or property types are being shunned by lenders. Retail comes to mind, but we don\u2019t really participate in that market.<\/p>\n

What do lenders need to be mindful of in the next 12 months?<\/strong><\/p>\n

Walsh:<\/strong> Lenders are focused on cash flows because they are nervous that the low cap rates and sale liquidity might not be there to repay them. Cash flow underwriting will continue to be the main focus for lenders.<\/p>\n","protected":false},"excerpt":{"rendered":"

Recently named principal & chief credit officer at the real estate investment management firm, Walsh shares his views on capital markets trends, challenges and the late-cycle economy. <\/p>\n","protected":false},"author":236,"featured_media":1004319740,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21825,23891,21742,21744],"tags":[40476,42182,45350],"class_list":["post-1004319737","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","category-national","category-latest","category-people","tag-cpetalks","tag-fcp","tag-steve-walsh"],"acf":[],"yoast_head":"\n6 Questions for FCP\u2019s Steve Walsh - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/6-questions-for-fcps-new-chief-credit-officer\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"6 Questions for FCP\u2019s Steve Walsh\" \/>\n<meta property=\"og:description\" content=\"Recently named principal & chief credit officer at the real estate investment management firm, Walsh shares his views on capital markets trends, challenges and the late-cycle economy.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/6-questions-for-fcps-new-chief-credit-officer\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2019-05-01T16:16:01+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-08T14:16:12+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/04\/254-FCP-Steve-Walsh-PR.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Alexandra Both\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/6-questions-for-fcps-new-chief-credit-officer\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/6-questions-for-fcps-new-chief-credit-officer\/\",\"name\":\"6 Questions for FCP\u2019s Steve Walsh - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/6-questions-for-fcps-new-chief-credit-officer\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/6-questions-for-fcps-new-chief-credit-officer\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/04\/254-FCP-Steve-Walsh-PR.jpg\",\"datePublished\":\"2019-05-01T16:16:01+00:00\",\"dateModified\":\"2022-12-08T14:16:12+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/92454aa9920287f97bb7f9888b2836f7\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/6-questions-for-fcps-new-chief-credit-officer\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/6-questions-for-fcps-new-chief-credit-officer\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/6-questions-for-fcps-new-chief-credit-officer\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/04\/254-FCP-Steve-Walsh-PR.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/04\/254-FCP-Steve-Walsh-PR.jpg\",\"width\":800,\"height\":620,\"caption\":\"Steve Walsh, Principal & Chief Credit Officer, FCP. 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