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Showing posts from June, 2022

Making Their Mark: The Growing Influence of High-Net-Worth Investors in Large-Scale Commercial Real Estate

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Not so long ago, the vision of high-net-worth (HNW) investors in commercial properties entailed doctors and lawyers passing the hat at the country club in an effort to buy an eight-unit apartment complex in town or the retail strip across the street from church. In recent years, however, this image has been washed away in a veritable flood of HNW capital propelled by increased sophistication and growing incentives. Billionaires have long been a fixture in this landscape. For instance, the late Paul Allen’s Vulcan Real Estate has led the redevelopment of Seattle’s South Lake Union neighborhood with billions of dollars invested in 37 construction projects. These homegrown ultra-rich are complemented in U.S. commercial real estate acquisitions by the investments of sheiks from the Middle East, Chinese billionaires and other uber-wealthy foreign nationals. However, these family offices are essentially institutions themselves. What has been new and different over the last several years is t...

Could 2022 See Another Real Estate Bubble Burst in the United States?

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  Whenever investors are looking at generating recurring passive income and increasing their monthly cash flow, multifamily real estate investments should be considered. However, with the impact of the pandemic and the subprime housing market crash still on everyone’s mind, some are asking: could 2022 be the beginning of another real estate crash? First, we’ll start by saying that no, we do not have significant concerns about a real estate bubble in the United States at this time. While we will always refine our investment strategies as political and economic developments occur, we maintain an overall positive outlook for the economy and commercial real estate this year. However, we will likely continue to see financial market volatility as investors adjust to new interest rates, Russia continues their military action against Ukraine, and gas prices rapidly climb. Compared to other real estate asset classes though, multifamily real estate investment has long been considered relativ...

The Effect of Inflation and Rising Interest Rate on Multifamily Investments

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  The multifamily is set for a chart-buster 2022 record amid solid fundamentals and leveraged investor’s interest. The 2020 year was struck by the great uncertainty of a pandemic in the United States. Many people were perplexed about the real estate market turnout in 2021 and whether to dive in or not. For  Multifamily real estate , the year 2021 has reshaped with higher prices, compressed capitalization rates, low vacancy and higher rent growth. Some of the assets were not that strong, and those not in a good location had higher delinquencies. But overall, we can say real investment compressed yields and embossed higher prices. Federal Reserve officials acknowledged that interest rates needed a rise to tackle the inflation, as it is difficult to keep up with old rates. The hiking rate fuels more volatility in the stock market, as witnessed recently. While on the other side, it opens up myriad opportunities for investors to speculate how property will be impacted, and it could...