SPONSORED: Nuveen Real Estate — Why real estate debt is still attractive in certain sectors

In the right sector, there are still good investment opportunities, whether in debt or equity, despite market headwinds, explains Jason Hernandez, managing director and head of U.S. debt for Nuveen Real Estate. For Nuveen Real Estate, these sectors are multifamily, industrial and alternatives. In an interview published in the April issue of Institutional Real Estate Americas, Hernandez says, “The biggest issue facing the entire market now is illiquidity. On the equity side, that means open-end funds with redemption queues. With the denominator effect, it is harder to raise capital in real estate, and on the credit side, there are headwinds and loans that were made at a different vintage, especially in the office space, that are going to be challenging.” The good news for investors, though, is the opportunity the illiquidity premium lenders can get paid, at least in the certain sectors.

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