Initially, the bank on the loan for Walker & Dunlop offered a 10-basis-point credit spread adjustment. Now, it has been ratcheted up higher.

House prices rocketed around the world in the past year as the cost of borrowing slipped to rock bottom and buyers put a premium on space and greenery.

Lenders are coming back into the office sector, though underwriting standards remain very tight.

Although several candidates have emerged, there is no consensus on the replacement for the commonly-used short-term loan rate benchmark.

Fund managers have raised capital from investors interested in commercial real estate debt and are now out aggressively placing loans.

The company entered into an amended mezzanine debt facility with a $3 billion limit.

The $600 million seven-year loan will be benchmarked to the Secured Overnight Financing Rate.

The mezzanine loan on the land beneath Times Square Edition, with a 5.1 percent interest rate, is in the “fulcrum position” of the debt stack.

A commercial real estate correction is not only a possibility but increasingly likely in the middle term.