Mark Fogel, president and CEO of ACRES Capital, believes alternative lenders can maintain their flexibility and creativity where perhaps more traditional lenders cannot. He believes this will be important as the country continues its unprecedented upcycle, with a potential downturn threatening in the next 18 months or so. Finance Insight (FI): As an alternative lender focused on the middle market, can you tell me a little bit more about alternative lenders and your specific areas of expertise in comparison with traditional funding sources? Fogel: Traditional lenders offer an important role in most communities as a source of funding. However, they are restricted by regulations that impede their ability to take on riskier transactions and go higher on the capital stack. In this regard, alternative lenders can step in and provide capital and opportunity for those projects that are going through a redevelopment or are repurposed from their original business plan. FI: Do you lend against all property types and pursue projects in all geographical regions of the U.S.? Fogel: ACRES seeks out opportunities on an asset-by-asset basis. We do not necessarily follow market trends, but rather identify alternative situations where, from a debt perspective, our basis is low and the …
