Institutional investors are becoming more selective in residential real estate as capital costs and return expectations evolve. In an interview with IREI, Michael Streicker, president and CEO of Sentinel Real Estate, discusses shifting risk appetite, global market differences and the factors supporting long-term rental demand.
How would you characterize the shift in institutional risk appetite today compared with the past two to three years? Are investors moving up or down the risk spectrum within residential, or simply redefining what core, core-plus and value-added mean?
Institutional investor sentiment has become more selective in capital deployment strategies over the past two to three years. Many investors feel that value-added strategies have not consistently delivered returns commensurate with their higher fee structures and execution risk. At the same time, it is more challenging to underwrite new development projects to a compelling going
