In this episode of Deal Flow Friday, David Moghavem sits down with Andrew Kwok, Principal at Arcus Harbor Real Estate Capital, to dive deep into the rapidly evolving debt and equity landscape in commercial real estate. They explore why private credit is on fire, the regulatory pressures driving borrowers away from traditional banks, and how debt funds are competing for deals. Andrew shares valuable insights from his 20+ years in the industry, including lessons learned from launching Arcus Harbor and navigating capital markets post-COVID.From structured finance to agency lending, Andrew and David break down how sponsors can smartly recapitalize, refinance, or acquire assets in today’s climate—where positive leverage is back and the devil is in the details. If you're trying to make sound capital decisions in 2025, this episode is packed with strategy, nuance, and perspective. Chapters 00:00 – Introduction & Arcus Swag Talk01:38 – The Arcus Team’s Deep History03:03 – USC Real Estate Board & Market Thought Leadership04:48 – Why Private Credit is Booming07:18 – Operators Entering the Credit Game09:18 – Shifting from Credit to Equity?10:38 – Appetite Swings in Debt Fund Lending12:08 – CLOs, Back Leverage & Loan Sales Explained13:48 – How Bank Regulation Benefits Private Credit17:08 – Why Arcus Rebranded & How It’s Structured20:18 – Arcus Lending Products and Market Coverage23:18 – A More Nimble, Client-First Approach27:18 – Deal Volume: Agency vs. Alternatives29:48 – Refinances, Maturities & Acquisition Trends34:18 – Seller Capitulation & Buying Below Replacement Cost36:48 – Positive Leverage is Back38:28 – Syndicators: Old School vs. New Age40:38 – Strategic Recapitalizations with Cash-In Refinances43:18 – Insurance Market Dislocation & Recovery45:18 – Advice for Sponsors Making Tough Decisions47:48 – Why Term Sheets Aren’t Always What They Seem49:18 – Deep Diligence and Underwriting is Back51:48 – Term Sheet Minutiae: Strike Prices, Floors, and Caps53:38 – Creative Cap Structures and Market Nuances55:08 – Wrapping Up With Golf & Gratitude

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