Waiting Game: Investors Anticipate an Extraordinary Buying Opportunity, but Remain Patient for Now
Investors are raising capital and shaping strategies as market forces create diverse investment opportunities, ranging from whole loans to mezzanine loans, to CMBS, to equity investments in residential land and property types of all shapes and sizes. The anticipation of the coming opportunities is high, but transaction activity remains low as investors wait for property markets and pricing to adjust further.
It’s been called “the investment opportunity of a lifetime” and real estate’s “Super Bowl of the Century.” For investors with cash, the investment environment of the near future certainly looks that way. Real estate prices declined dramatically during the past two years, and credit markets constricted considerably, leaving borrowers strapped for cash just as a glut of mortgages are about to reach maturity. In the wake of this market distress, investors believe an opportunity exists to purchase assets at historically low prices and take advantage of re