Goldman Sachs CEO David Solomon said private credit remains an attractive business for the bank even as the sector faces more scrutiny and retail investors grow more uneasy. He acknowledged there will likely continue to be “noise” around the retail side of the market, but his broader message was one of stability. For commercial real estate professionals, that is an encouraging signal at a time when private credit has become an increasingly important source of financing for deals that no longer fit neatly inside traditional bank lending boxes.

That confidence comes even as one of Goldman’s private credit vehicles showed signs of pressure. Its $15.7 billion non-traded business development company saw redemption requests amounting to 4.999% of outstanding shares in the first quarter, just below the level that has pushed some competing funds to limit withdrawals. That narrow margin is worth watching because any broader investor pullback could affect the availability of capital for higher-risk or more complex real estate lending, including bridge loans, transitional assets, recapitalizations, and construction-related financing.

Solomon also said sponsor activity did not pick up as much as expected in the first quarter, though Goldman believes activity should rebound once market conditions stabilize. That matters for real estate because private equity sponsors play a major role in acquisitions, refinancings, and large property transactions. At the same time, the biggest US banks now hold $1.25 trillion in loans to non-bank financial institutions, according to Federal Reserve data, showing how connected the banking system has become to private credit, hedge funds, mortgage lenders, and other alternative capital sources. For commercial real estate, the message is that private credit is still functioning, but any deeper stress in that ecosystem could quickly ripple through deal flow and financing.

Plans for the redevelopment around Ball Arena in Denver center on introducing mass timber into two multifamily buildings as part of a larger 58-acre mixed-use project led by Kroenke Sports & Entertainment. The first phase, targeted for completion by 2032, also includes a performance venue, hotel, and underground parking. Engineering firm KL&A Engineers and Builders is leading the structural work, partnering with Generate, a platform incubated at Massachusetts Institute of Technology, to evaluate feasibility, cost, and constructability of mass timber systems at scale.

Mass timber is being explored for its combination of sustainability and speed. Unlike steel or concrete, it acts as a carbon sink and can reduce construction timelines through prefabrication. The challenge is economic clarity. Because mass timber is not yet fully commoditized, pricing varies across suppliers and systems. Generate’s software addresses this by connecting design teams to multiple manufacturers and producing faster, more reliable cost estimates. That capability helped KL&A compete for the project and is becoming a critical tool for evaluating newer materials in early-stage underwriting.

For developers and owners, the key insight is that mass timber is moving beyond a sustainability narrative and into a strategic decision tied to cost, speed, and leasing. The ability to compare systems, pricing, and timelines early can reduce risk and improve decision-making. There is also a leasing advantage. Prior projects have shown strong early absorption partly driven by the aesthetic appeal of exposed timber. Still, the project highlights a clear constraint. New materials only get built if they meet cost thresholds, so teams that integrate design, procurement, and pricing intelligence early will be better positioned to move projects forward.

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