Open-end diversified core funds, such as those tracked in the NCREIF Fund Index — Open-end Diversified Core Equity (NFI-ODCE), remain a compelling investment vehicle for institutional investors seeking exposure to private real estate.

During the past few months, investors, managers and consultants participated in Editorial Advisory Board meetings for each of Institutional Real Estate, Inc’s regional publications to discuss the most pressing issues facing the real estate investment industry. The editorial board of Institutional Real Estate Americas met in Northern California on 9–11 September; the editorial board of Institutional Real Estate Europe met in Germany on 24–26 September; and the editorial board of Institutional Real Estate Asia Pacific met in Singapore on 22–24 October. Editors Loretta Clodfelter, Marek Handzel and Dr Jennifer Molloy discuss highlights from the regional events.

As we look ahead at the ever-evolving real estate landscape, one sector stands out for its remarkable endurance and future promise: senior housing. From the outside, it might appear that senior housing’s momentum is tied primarily to the baby boomer generation, already 75 and soon to be 80. Yet the “boomer wave” is only one chapter of a much longer, more profound story as America’s 80-and-older population grows at an unprecedented pace.

LaSalle Investment Management sees considerable differences between this upcoming cycle and prior ones across U.S. and Canadian real estate. The landscape for U.S. and Canadian real estate has shifted since last year’s ISA Outlook 2024, which saw lower transaction volumes due to higher interest rates and challenging macroeconomic conditions.

Cities such as Bakersfield, Calif.; Orem, Utah; and Loveland, Colo., aren’t typically top of mind for institutional investors. But groups that once bypassed such secondary and tertiary markets in favor of major metros are now putting these smaller markets on their radar.

Why has student housing become the darling of real estate? With the global student population projected to exceed 594 million by 2040 — more than doubling due to an expanding middle class and increased higher education enrollment — the demand for quality accommodations has never been higher. Today’s students are reshaping the housing market, prioritizing environments that promote mental and physical well-being, a shift that has been deeply influenced by the COVID-19 pandemic.

It wasn’t until mid-2024 that I recognized there appears to be a deeper foundational flaw in these discussions: a lack of clearly defined risk profiles for debt investments. Some investors could be considering higher-risk/higher-return distress debt investments, and some could be evaluating debt as more conservative/lower-return lending on cash-flowing assets. Currently, it’s all just “debt.”

Norges Bank Investment Management has paid $1.07 billion for a 45 percent ownership interest in a portfolio of U.S. logistics assets, valuing the portfolio at $3.265 million, which is encumbered by $888 million of existing debt.

Asana Partners has launched its Asana Partners Fund IV with a $1.5 billion target, according to a Dec. 17, 2024, filing.

The Wyoming State Loan and Investment Board has approved an allocation Carlyle Property Investors.

BGO has been awarded a new mandate to take over asset management and property management services for all of the Toronto Transit Commission Pension Plan’s (TTCPP) wholly owned properties.

Standard Real Estate Investments has expanded its investment ventures with assets managed by GCM Grosvenor, adding up to $600 million of new investment capacity for industrial and multifamily transactions.

Dune Real Estate Partners and TF Cornerstone (TFC), a New York City based, integrated residential and commercial developer, have created a $1 billion venture, Alta Residential.

CenterSquare has formed a joint venture partnership with one of the country’s largest state pension funds.