Real estate industry veteran Nicole Brickhouse joined Baltimore-based real estate firm Continental Realty Corp. earlier this year as director of capital markets. Formerly managing director of capital markets at Bethesda, Maryland-based Walker & Dunlop, Brickhouse brings nearly 15 years of experience to the new role.

At CRC, Brickhouse will lead debt strategies and project-level financing for the firm’s portfolio of nearly 8 million square feet of retail and 9,300 apartment units, according to a release. Brickhouse will also oversee CRC’s fund-level borrowing facilities and manage the firm’s existing book of borrowings.

In her prior role at Walker & Dunlop, Brickhouse originated and oversaw the execution of capital market transactions, including fixed-rate and floating-rate debt and equity placement for new development, acquisitions and refinances. Her team executed more than $3 billion worth of transaction volume across nearly 100 deals throughout the country and across multiple asset classes, the release said.

Prior to Walker & Dunlop, she was a director at JLL on the Capital Markets team where she sourced, marketed and closed real estate debt and equity transactions for all property types.

Continental Realty is a full-service commercial real estate and investment company focused on acquiring and operating retail and multifamily properties. The privately held firm owns and manages a diversified portfolio of retail centers consisting of nearly 8 million square feet of commercial space and over 9,000 apartment units across 11 states, with a portfolio value exceeding $3.7 billion.

Here, Brickhouse talks with Multifamily Dive about the current lending environment, signs of distress and what she hopes to accomplish in her new role.

This interview has been edited for brevity and clarity.

MULTIFAMILY DIVE: What will you do in your new job?

NICOLE BRICKHOUSE: In my new role I oversee all new debt originations, manage our existing book of business, supervise fund sublines and maintain relationships with lenders, financing brokers and third-party consultants. I am excited to bring 15 years of capital markets experience and relationships with all lender types across the country to the company with the goal of adding additional firepower and efficiency to our acquisition process.

What are some of the biggest challenges facing the multifamily industry right now?

Everyone is navigating the high interest rate environment and managing through a “higher-for-longer” market sentiment. At the same time, we are all monitoring the unprecedented volume of debt that is maturing in the near term. 

About 40% of all commercial real estate debt is set to mature over the next two years. Borrowers with floating rate debt are expected to be particularly impacted, facing significantly higher borrowing costs and negative cash flow. 

Further, banks’ real estate portfolios are under increased regulatory pressure. Our team is seeing early signs of distress emerge in the broader market, and we are tracking deals in our acquisition pipeline that reflect a range of challenging situations that owners are facing. 

On a positive note, we are encouraged that property fundamentals continue to look great in our target markets.

Do you think the days of rising interest rates are behind us?

I believe the Federal Reserve's posturing of "higher for longer" indications will be a theme that sticks around for the foreseeable future. Upcoming rate cuts are unlikely to move the needle significantly enough for floating rate borrowers to be fully relieved of the distress. 

While this presents challenges, CRC embraces this market reset. Our strategy of using long-term fixed-rate financing has safeguarded our investments from interest rate volatility, allowing us to maintain stability and capacity to continue capitalizing on opportunities as we see deals that fit our investment criteria. 

In our 60-plus-year history, CRC has a history of picking up steam during periods of uncertainty and we feel we are extremely well poised to take advantage of the current disruption now given our access to dry powder, the depth of our lender relationships and our ability to offer certainty of closing.

How are things going in your East Coast markets?

CRC's markets are performing well, especially given our multifamily focus on the Southeast region. We leverage our market expertise, vertically integrated structure, long-standing relationships and advanced data analytics to identify and acquire standout properties in outperforming submarkets. 

This approach has allowed us to achieve meaningful returns and maintain a strong portfolio, even amidst market instability.

What are you hoping to accomplish in your new role?

One of the reasons I accepted this position was the health and stability of our existing portfolio. I have the luxury of stepping into the role and hitting the ground running without the burden of a troubled debt portfolio. 

I am excited to focus on the growth and expansion of our portfolio and streamline our acquisition process. This is particularly important given the incredibly active investment period we anticipate in the near term.

What else is top of mind for you right now?

One of the most exciting parts of CRC right now is that we are exploring creative investment opportunities throughout the capital stack beyond traditional acquisitions, such as acquiring performing loans with the potential for future value and making preferred equity investments with like-minded owners where there is alignment. 

We have dry powder for both multifamily and retail investments and our agility and expertise allow us to move quickly and decisively in this dynamic market.