Cornerstone launches CRE lending platform as other banks flee

After years of dry dealflow and uncertainty over building values, a Houston lender has decided now is the time to jump into commercial real estate lending. 

Cornerstone Capital Bank is launching a commercial real estate capital markets platform, Bisnow reported. The bank plans to lend on multifamily, industrial, office and retail properties. Notably, it plans to underwrite deals at post-pandemic values — in other words, it isn’t going to spend time on the workouts and loan modifications that have entangled scores of lenders and borrowers in recent months. 

The bank sees its lack of existing exposure to commercial real estate to be an advantage.

“Banks in particular are exiting commercial real estate. They’re dealing with large portfolios and concentrations,” CEO Scott Almy told the publication. “We have none of that.”

Cornerstone hired commercial lending veteran Patrick Ramsier to lead the platform. According to LinkedIn, Ramsier spent 20 years at LegacyTexas Bank, which was acquired in 2019 by Prosperity Bank. 

Cornerstone has been expanding. Its latest iteration formed in 2022, when Cornerstone Home Lending merged with Roscoe State Bank. 

Commercial real estate lenders have been under fire, with some major players like Signature Bank collapsing or facing distress. As commercial buildings have seen major valuation cuts, it has increased the pressure on lenders to figure out a way to salvage the value of their collateral. That may lead to more bank closures next year, according to some industry experts. 

“Every single weekend a regional bank is going to go bye bye,” Newmark’s Howard Lutnick told TRD in May. 

— Joe Lovinger

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