The apartment market shot out of the blocks once the dust settled from the global financial crisis. And the apartment market’s run has been impressive. While this apartment cycle has lacked the distressed selling and subsequent run-up in values that characterized previous memorable bull runs, it has made up for it with staying power.
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Fund managers looking to kick-start fundraising momentum, build long-term relationships or land an especially “big fish” investor are willing to sweeten fund terms to attract capital. While most mega-fund managers have not had to compete on fees, others are offering incentives to garner capital.
We live in uncertain times. That was the consensus at the 2016 Fall Editorial Advisory Board Meeting of Institutional Real Estate Americas, held Sept. 6–8 at the Park Hyatt Aviara Resort in Carlsbad, Calif.
We are all drowning in an electronic flood, with each new platform claiming to offer a solution to our most pressing problems. Real estate investment management is no different.
An effective risk-management function would address the potential risks associated with the assumptions and premises upon which positive investment performance depends. Less explicitly considered than these “usual suspects” of risk management are the implications of technology, both positively and negatively.
Plan sponsors invest across a wide range of styles, geographies and property types and, thus, have access to substantial property and performance data. Information on relative portfolio construction and performance among their peers is limited, however.
Words matter. We all know that. And somebody’s been playing word games on Wikipedia. The Wikipedia entry for “Institutional real estate” has been eliminated, and replaced with a new entry called “Private equity real estate.”
Exit cap rates can pose substantial risk to value-added and opportunistic deals and to supposed low-risk core deals, especially where the timing of the exit is critical. Today, neglecting exit cap rate risk can be irresponsible and dangerous to investors’ wealth.
If done correctly, joint ventures between institutional real estate investors and local real estate developers can be a “win-win” situation. Real estate firms can expand their operating domain and deal flow, while tapping into a cheaper source of capital. Pension funds and other institutional investors benefit from access to local, property-specific expertise.
The mission of the Institute for Real Estate Operating Companies (iREOC), a membership organization launched in 2016 by Institutional Real Estate, Inc., is to facilitate and enhance relationships between institutional capital providers and real estate operating companies.
The Greater Los Angeles office market continues to see unstoppable economic growth.
Real estate companies are improving the sustainability of their assets across all aspects of environmental, social and governance performance, according to GRESB.
A number of retail and mixed-use properties near San Francisco’s Union Square have changed hands.
Cambridge, Mass., continues to be the life science hub of the Boston market, and a recent deal by Clarion Partners illustrates that dominance.
Pensam Residential, BH Equities and Wafra Capital Partners have acquired a majority stake in The Breakers Resort, a 1,523-unit apartment complex in Denver, for $350 million or nearly $230,000 per unit.
Early numbers are in for real estate investment funds closing in third quarter 2016 — and they continue to point to a slowing fundraising climate, according to Institutional Real Estate, Inc.’s FundTracker database.