Trends Watch: ESG-Focused Real Estate Loans

EisnerAmper’s Trends Watch is a weekly entry to our Alternative Investments Intelligence blog, featuring the views and insights of executives from alternative investment firms. If you’re interested in being featured, please contact Elana Margulies-Snyderman.  

This week, Elana talks with Chris Callahan, President & CEO, X-Caliber Capital.

What is your outlook for investing in ESG-focused real estate loans?

Our outlook for investing in ESG-focused real estate loans is extremely positive and there are several ways they can make an impact by addressing some of our nation’s most prominent issues including increasing the supply of affordable housing, improving the environment, providing quality care for senior citizens, supporting rural businesses and more.

Where do you see the greatest opportunities and why?

I see tremendous opportunities in all four of the areas mentioned above. However, one of the best opportunities I see is in the affordable housing sector. There is a very low inventory and a strong demand and historically, multifamily housing performs well throughout all economic cycles. So, from an investor perspective, this is an attractive asset class because of its strong and reliable monthly cash flow.

What are the greatest challenges you face and why?

I believe the affordable housing crisis will remain a challenge. However, I do believe public/private initiatives that are long-term commitments will continue to make a difference over time. Rising rents, stagnating income growth and lack of supply have created a perfect storm. Neither private business nor the government have the resources to tackle this growing problem alone.

What keeps you up at night?

Unforeseen obstacles are the invisible threats that require a highly disciplined business strategy. We have learned that from the fallout of the world-wide pandemic. Focusing on the development of a culture that embraces prudent risk management and fosters an adaptive and nimble environment is the best approach to ensure those nights are few and far between.

The views and opinions expressed above are of the interviewee only, and do not/are not intended to reflect the views of EisnerAmper.