Banks Tighten Commercial Real Estate Lending and Interest Rate Hikes Are on the Horizon Says the Fed; Opens Window of Opportunity for Alternative Financing

Media Contact:
Eric Fedewa
Ascend Capital Partners
703-982-0609
eric@ascendcapp.com
http://www.ascendcapp.com
<strong>Banks</strong> <strong>Tighten</strong> <strong>Commercial</strong> <strong>Real</strong> <strong>Estate</strong> <strong>Lending</strong> <strong>and</strong> <strong>Interest</strong> <strong>Rate</strong> <strong>Hikes</strong>
<strong>Are</strong> on the Horizon Says the Fed; Opens Window of Opportunity for
Alternative Financing
Ascend Capital Partners steps in to fill the void, says Managing Partner Eric Fedewa.
Washington, DC, USA -- Federal Reserve Bank Chair Janet Yellen testified that the Fed will likely
continue its plans to implement federal funds rate hikes <strong>and</strong> balance sheet normalization measures in
order to gradually raise short <strong>and</strong> long-term interest rates.
This, along with the May release of the Fed's senior loan officer survey, highlights a "closing window of
opportunity for affordable financing from commercial lenders," according to Eric Fedewa, Ascend Capital
Partners Managing Partner. The senior loan officer survey indicates that there will be a tightening in
traditional lending practices for the commercial real estate sector.
With these factors in mind, Fedewa said Ascend Capital Partners can fill some of the void in traditional
financing for commercial real estate by offering financing alternatives such as inexpensive institutional
debt, bridge financing, <strong>and</strong> equity.
"The Fed's May report concurs with the tightening trends we've been observing this year in traditional
lending for commercial loans. The need for alternative financing is clear," said Fedewa.
"The tightening of traditional lending sources comes at an inopportune time for investors as the new
administration is trying to heat up the U.S. economy," said Fedewa, noting that a tightening of monetary
policies on behalf of the Fed could raise lending costs for alternative <strong>and</strong> traditional lenders alike.
"The strengthening economy is creating dem<strong>and</strong>, yet traditional financing practices have tightened.
Unfortunately, the window in which alternative lending sources can provide inexpensive financing could be
limited as potential Fed rate hikes loom on the horizon," he said.
Ascend Capital Partners has exp<strong>and</strong>ed its financial service offerings <strong>and</strong> added several new offices with
strong teams of financial experts in prime market areas.
"We've exp<strong>and</strong>ed our Washington, DC area headquarters <strong>and</strong> are adding offices in Boston, New York City,
Sarasota, Florida, Austin, <strong>and</strong> San Francisco. We've added new professionals to the D.C. team who are
all top performers in their fields <strong>and</strong> can provide a broad range of services to our present <strong>and</strong> prospective
clients," he said.
"We're not only assisting our customers with financing, but we also offer consulting <strong>and</strong> strategic advisory
services," said Anne Brensley, an attorney by trade who heads up the firm's advisory business:
Brensley has been successfully facilitating financial deals, directly providing equity, <strong>and</strong> consulting on
complex real estate matters for the past ten years.
"We've been able to assist in changing government attitudes towards projects, walking developers through
rezoning issues, <strong>and</strong> helping owners 'right-size' their capital structure. Ascend has seen an unaddressed
need for bridge funding with EB-5 projects, <strong>and</strong> we've helped our clients utilize an array of specialized

funding vehicles to get their projects completed," she said.
Ascend Capital Partners provides financing options as well as advisors in several different areas of the
commercial real estate financial sector.
For instance, Fedewa <strong>and</strong> Jud Villa worked together in Florida funding commercial loans. Villa is also an
expert in single family home, "fix <strong>and</strong> flip, <strong>and</strong> fix <strong>and</strong> hold" deals. "We have so many ways to assist our
borrower/clients, but helping them make smart choices <strong>and</strong> matching them up with financing," said Villa.
Rob Merkle <strong>and</strong> Vince Lane round out the Ascend commercial real estate team. Lane has been a real
estate developer, <strong>and</strong> also has expertise in high tech <strong>and</strong> international business. He splits time between
Austin <strong>and</strong> San Francisco. Merkle heads up the New York City office, where he has worked for years <strong>and</strong>
overseen billions of dollars in deals in <strong>and</strong> around Manhattan.
In college, Merkle played football for The University of Notre Dame. He said: "I know about teams, <strong>and</strong> this
is a great one. We cover some of the most dynamic markets in the country, <strong>and</strong> our people are aggressive
<strong>and</strong> seasoned professionals."
"In markets like San Francisco <strong>and</strong> Austin, there's a huge need for the type of innovative <strong>and</strong> alternative
financing that Ascend offers. <strong>Banks</strong> are not lending, but we're picking up the slack," said Lane.
"We have sources which include debt funds, private equity, hedge funds, <strong>and</strong> our own managed funds,"
said Fedewa. "With our decades of expertise, we will assist in finding the most efficient capital stack for
your project."
For inquiries or information about Ascend Capital Partners financing <strong>and</strong> advisory services, visit the new
website -- http://www.ascendcapp.com -- or call: (703) 982-0609.