Institutional investors are placing greater emphasis on partnering with operating platforms, shifting away from transactional dealmaking toward programmatic, long-term relationships. That evolution is driving an increase in recapitalizations across institutional real estate, as capital flows into platforms rather than individual assets. Jesse Shannon, president and CIO, Branch Properties, explains the drivers behind this shift, how recap structures are enabling it and why operators have become central to execution in the grocery-anchored retail sector.
We’re seeing an increase in recapitalizations across institutional real estate. What is driving this shift, and how does the motivation behind recap transactions today differ from prior cycles when they were often tied to liquidity needs or distress?
The main trend over the last five to seven years is that more value is being placed on operating platforms. Institutional investors are not ju
