Refi Chatter at Western States CREF 2025

One thing was top of mind for every broker and lender attending last week’s Western States CREF conference in Las Vegas: Refinancing. “Development is tough right now due to lack of equity and stale rents,” PLG originator Matthew McCormack said after attending the conference alongside fellow originators Ina Montejo, Emily Ramey, and Ron Adachi.

“Bridge loans and refinancing took the stage this year as lenders are on the lookout for paydowns and borrowers seek extensions and restructure their cap stacks,” Montejo added.

Managing Director, Head of Originations Peter Grabell spoke on the Construction Lending panel, where he discussed how C-PACE can provide relief for banks in workout mode. “C-PACE can come in to fill gaps as borrowers refinance out, allowing banks to lend new money while borrowers can recapitalize their loans,” Peter stressed during his panel.

Adachi and Ramey noted a more positive tone than last year, and strong interest among attendees for retroactive PACE, which can refinance improvements completed in the last one to three years, depending on the state.

Main conference takeaways:

• Deal activity is back as more capital is available

• Refinance and acquisition activity is increasing

• "Stalled" deals are now moving forward as borrower market perception is changing

• Equity is still on the sidelines, but sentiment is more optimistic than earlier in the year

• Lender interested in retroatctive C-PACE for paydowns is strong