1. Seek stability

When choosing a bank to lead a syndication, look for an institution that’s stable and consistently active in the commercial real estate market, rather than one that cycles in and out as market conditions shift. Stability provides several advantages: 

• Efficient process and pricing: Syndicated financings can be complex. The lead arranger may spend months negotiating loan documents with syndicate members and learning their processes. “That’s why we like to replicate syndicates,” Epstein said. “It allows the next execution to be more efficient.” That approach only works if the lenders are active when it’s time for the next deal.
• Lower risk of mid-loan disruption: If the bank leading a sponsor’s financing decides to reduce its commercial real estate exposure during the life of the loan, it could sell the loan to another financial institution. While borrowers typically have the right to approve or block a sale, a change in lender can still be disruptive. Working with a lender facing potential credit concerns could pose even bigger challenges, as additional loan disbursements needed to complete the project may be at risk.
• Reliable, familiar teams:  Positive banking relationships can deepen over time. “The advantage of a bank deal compared to other sources is that your banker is a phone call away when you need them,” Epstein said. 

2. Build relationships

Aside from a strong relationship with your agent bank, syndications can lead to introductions—and advantageous relationships—with other lenders. Other syndicate members may have more local market expertise to finance smaller projects. These syndicate members may be able to meet additional capital needs or offer services that an agent doesn’t, such as international lending or niche financing solutions. 

“When we lead a client’s syndication, we act as a conduit to help them engage with syndicate members that have products and services that would fit well with their business,” Matson said. “Our goal is to help them raise capital to meet all of their financing needs.”

This ongoing engagement with syndicate members can prove valuable when loans require modification. 

“When all lenders have good relationships with the borrower and lead arranger, they tend to be more open-minded and willing to take a longer-term view,” Epstein said.   

3. Prioritize expertise—especially with complex deals

The recent volatility in the bank market reshaped the pool of potential syndicate lenders. “Some banks’ lending priorities shifted while new players entered the market, including new banks, asset managers and insurance companies,” Epstein said. The changes add complexity to syndicate formation.

“As market activity increases, it’s all the more reason to have a lead arranger that has scale and relationships with a wide variety of potential syndicate members, that can figure out each party’s priorities and efficiently put together a thoughtful syndicate,” he said. 

This expertise and market position often enables a successful capital raise and greater flexibility throughout the loan term. 

"It’s important to have a lead arranger who can effectively assemble a syndicate on the agreed terms and manage the loan through a dynamic market environment. Our strong relationships with other financial institutions help us collaborate to find optimal outcomes for the borrower and syndicate members,” Matson said.