Why Private Credit Now?

Commercial real estate borrowers do not all have the same access to bank financing. In the Federal Reserve’s April 2025 lending survey, banks reported tighter or broadly unchanged commercial real estate lending standards. Over the preceding year, banks also reported tightening loan-to-value and debt-service-coverage policies. These findings describe surveyed banks, not every lender or the current conditions in every Southeast market.

A refinancing need, not a blanket opportunity

The FDIC’s 2024 Risk Review identified elevated commercial real estate maturities through 2026 and refinancing challenges linked to interest rates, softer property values and credit weakness. When a borrower cannot obtain a conventional refinance, a non-bank lender may provide transitional capital. The financing gap alone does not make a loan attractive: collateral value, borrower equity, cash flow and a credible repayment path remain decisive.

Why local underwriting matters

In Atlanta and the broader Southeast, property-level diligence must distinguish durable demand from temporary growth and new supply. Local operating relationships can inform sourcing and asset assessment, but regional exposure also creates concentration risk. King Fund III’s credit thesis centers on senior-secured real estate lending and evaluating each loan on its own merits, rather than assuming a regional trend will support repayment.

What investors should examine

Review lien priority, valuation assumptions, borrower liquidity, extension provisions and workout capacity. Senior security does not eliminate losses; falling collateral values, delayed exits and illiquidity can impair an investment. Competition among lenders can also weaken pricing and terms. Selectivity matters more than the size of the financing gap.