Randall Rothschild: Mastering Real Estate Lending Through Expertise and Relationships

Tishman Speyer is recognized as a leading real estate owner, operator, and developer, not only for its iconic projects but also for its outstanding investment management track record. The company’s core values and strong credit culture have guided its approach to securing debt for its projects globally over the past 40+ years, and these same values are at the center of the expansion of its business into real estate lending, with the launch of the Tishman Speyer Real Estate Credit platform.

Commitment to relationships

Tishman Speyer has always held an unwavering commitment to building partnerships based on trust and transparency, according to Global Head of Debt Randall Rothschild. Its emphasis on the importance of relationships has garnered respect and trust in the industry, and the rapport they’ve carefully built through the years is key to Tishman Speyer’s ability to secure debt.

As a borrower, Tishman Speyer has long-standing relationships with over 100 commercial real estate lenders and has closed more than $28B in financings in the U.S. since 2011. With a strong track record of long-term lending relationships, Tishman Speyer can secure more attractive debt pricing and structure for its projects.

Expertise over cycles

Navigating the cyclical nature of real estate markets is a complicated undertaking, but it’s precisely in this complexity where Tishman Speyer shines. Tishman Speyer’s 17-member Investment Committee have an average of 32 years of real estate investment experience and 24 years of experience at Tishman Speyer. Due to their extensive experience navigating real estate cycles, they’re “able to tell which way the wind is blowing” as they oversee all key investment decisions for the firm. Furthermore, as Rothschild explains, “Owners, operators, and borrowers that have expertise throughout cycles and have capital can prove to not only get market share but also get the best possible deals for their investors’ capital.”

An opportune time to be a lender

“Why lend now?” is the question Rothschild says he’s often asked. Of course, timing is crucial in real estate lending. “As we look across the landscape, we believe firmly that now is the right time to be a lender because we have fresh capital,” says Rothschild. Additionally, the current market environment—with high-interest rates and fewer financing sources—has created an opportunity for non-traditional lenders to earn attractive risk-adjusted returns.

Real estate lending is a natural extension of what Tishman Speyer already does, as its experience as an equity investor allows it to understand the risks associated with real estate projects. As a lender, Tishman Speyer will occupy a safer position in the capital structure than it typically occupies as an equity investor. “And quite importantly,” says Rothschild, “we know how to underwrite and understand real estate with our lending platform.”

Leveraging insights from equity investments

Another distinct advantage Tishman Speyer has as a lender, Rothschild explains, is the ability to tap into their own real-time data and market intelligence. “We get to see what we’re doing on the equity side of the business,” explains Rothschild, “whether it’s an industrial property or a multifamily.”

Tishman Speyer has regional offices throughout the major markets it invests in across the United States. Professionals in acquisitions, development, asset management, leasing, design and construction, and property management in each region provide unique local market insights on supply and demand, rental rates, operating budgets, construction budgets and timelines, and other key business plan assumptions. The market and operating intelligence and data that Tishman Speyer collects in real-time from its equity investments provide a distinct advantage and will inform its real estate lending strategies.