Adaptive reuse boosts finance appeal with increasing funding inquiries.

TLDR: A growing number of borrowers are seeking financing for adaptive reuse projects, despite a higher interest rate environment, according to lenders at the MBA CREF conference. Gary Bechtel, CEO of Red Oak Capital, has received many requests for loans to convert non-chain hotel/motel properties into affordable housing. He also mentioned conducting conversion projects from retail or industrial buildings into self-storage centers. Private bridge lenders are playing an important role with financing conversion projects as banks require low leverage for construction loans. The use of historic tax credits and C-PACE loans are also being utilized for office-to-multifamily conversions.