What does this capital do?
Family offices and private CRE lenders are typically funded by one principal family or a small group of high-net-worth backers, with check sizes from $1M to $50M and total fund sizes that vary widely. Federal Reserve Z.1 flow-of-funds data shows non-bank private credit has compounded as a share of CRE debt outstanding through this cycle, and CRE is one of the asset classes private capital has aimed at most aggressively.
Where private capital is most competitive
Speed: signed term sheet in days, closing in 2 to 4 weeks. Story credit: deals where the lender needs to underwrite the sponsor and the business plan as much as the asset (assumption with cash-out, partner-buyout refi, distressed acquisition with a turnaround plan). Hairy assets: gas stations, marinas, mixed-use with unusual tenancy.
Where private capital is less competitive
Private capital is also generally not the right answer when the sponsor wants to build a long-term repeat relationship with a programmatic lender. Family-office capital is opportunistic by design and does not commit forward allocation.
Pricing and structure benchmarks (2026)
Obtain a transaction-specific mezzanine proposal and confirm the senior lender’s consent requirements.
Origination 1.5% to 2.5%; exit fee 0% to 1.0%; legal and diligence at borrower expense, capped via the term sheet.
Decision-maker access
The principal makes the credit decision, not a committee. The diligence is real but compressed: financial statements on the sponsor and the asset, a property tour, a 30 to 60 minute call with the principal. Term sheet inside a week is normal for a fit deal.
The risk is the same as the benefit, the principal can also pull the deal. Closing certainty depends on documenting the credit thesis and the structural mechanics in the term sheet so there is no surprise during legal documentation. A good debt advisor builds this into the package.
Frequently asked questions
How do I find a family office that lends on CRE?
Most do not have a public deal pipeline. Access is by introduction through advisors, attorneys, and other operators who have closed with the family before. A debt advisor with the right network can put a deal in front of three to five fits in a week.
Is family-office debt non-recourse?
Variable. Many are willing to take a credit-only carve-out structure on stabilized assets with strong sponsorship. On bridge and construction, completion or repayment recourse is more common. Negotiable transaction by transaction.
How does this category overlap with debt funds?
Larger institutional debt funds and family-office capital fish in different ponds. Debt funds program-fit the institutional middle market; family offices write the off-program one-offs. Some debt funds carry a separate family-office-style book for their principals' own capital.
Sources
- Z.1: Financial Accounts of the United States (Flow of Funds) · Board of Governors of the Federal Reserve System · 2026-Q1
- Financial Stability Report · Board of Governors of the Federal Reserve System · 2025-11
- Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS) · Board of Governors of the Federal Reserve System · 2026-Q1