The current market environment provides a unique opportunity for investors to secure — at scale — highly predictable medium-duration cash flows from permanent multifamily real estate debt. Liability-driven investors are likely to become increasingly interested in these loans.
The United States did not double the value of every coin and banknote but did keep interest rates near zero for almost an entire 15-year period, which resulted in increased (some would say “distorted”) asset values.
Like any business, a successful real estate enterprise requires marrying strategic vision, operational skill and capital. For a long time, one of the dominant paradigms for bringing these ingredients together has been joint ventures, which marry an operating partner’s vision and operational expertise with an institutional investor’s capital.
Private real estate values are declining, so is deal volume, as sellers are reluctant to transact at the new, lower levels where buyers are interested.
Flood risk assessment is an important and growing concern for real asset investors. But measuring the threat of flooding to assets and locations is stuck at an embryonic stage and faces challenges stemming from limited historical data as well as data incompatibility.
In recent years, investing in the apartment sector seemed a surefire strategy for success. Rents were rising quickly, and rising wage growth and strong employment trends supported projections of robust fundamentals into the future.
Retail real estate has undergone a significant shift in investor sentiment during the past decade. From pre-pandemic pariah to emerging star, the once-shunned property sector is back on the menu for an increasing number of investors and poised for future growth.
In 2009, Geoff Colvin, an award-winning author and business writer for Fortune magazine, published a book titled The Upside of the Downturn. His chapter on risk was particularly enlightening and probably just as applicable to what’s going on today as it was to what was going on then in the wake of the global financial crisis.