Blake J. Owens’ Post

Why the latest trends in REITs offer hope for commercial real estate investors. #realestate #REIT #REITs #commercialrealestate #CRE #arizonarealestate #arizonacommercialrealestate https://lnkd.in/grgVwdMF

CEO & Managing Partner of The GSH Group, Gideon Pfeffer, recently wrote an article that appeared in Inc. Masters. Click below to read "4 Trends Reshaping the Multifamily Real Estate Market" to understand the trends that will help savvy investors seize emerging opportunities. https://hubs.ly/Q02Fz07N0 #gshrealestate #multifamilyrealestate #conciergerealestate #realestate #alternativeinvestments #investments #incmasters

📢 Real Estate Insights: Now is a Prime Time to Buy Apartments! 🏢 Key Takeaways from Hamilton Point Investments: Strategic Acquisitions: In May and June, Hamilton Point Investments (HPI) bought four new properties in Houston for $195 million, totaling 1,174 units. Cost Efficiency: These assets were secured at $166,100 per unit, significantly lower than the $210,000 per unit cost from two years ago. Market Timing: HPI's co-founder Matt Sharp highlights that current prices offer the best buying opportunities since 2010-2011 due to an overbuilt market. Investment Strategy: Focus on nearly brand-new properties directly from developers, purchasing below development cost. Fundraising Success: Continuous interest in apartment investments with strong demand from their investor base, driven by the potential for rent inflation and cash flow stability. Technology Integration: While embracing technology, HPI values human interaction, especially in maintenance, and avoids over-reliance on pricing software to maintain tenant affordability and relationships. 👉 According to Matt Sharp, this favorable buying window is expected to last through the end of the year, making it an excellent time to invest in multifamily properties. Stay tuned for more real estate insights! #Colliers #Pittsburgh #MoreIn24 #ThriveIn25 #ClosersCoffee #ColliersCapitalMarkets https://lnkd.in/e7um6mbe

Investing in multifamily real estate appears increasingly attractive in todays market. With rising demand for rental properties and the potential for significant returns, savvy investors are recognizing the value in strategic acquisitions, especially in value-add opportunities. Amidst economic fluctuations, those who conduct thorough analyses and remain adaptable can navigate challenges effectively. #realestate #investing

Interesting read with your morning coffee ☕ As I previously stated in a corresponding post regarding this acquisition. Blackstone cannot be ignored... and it certainly hasn't. As the world’s largest commercial real estate owner, Blackstone’s impact stretches well beyond AIR and to the rest of the sector. Blackstone’s acquisition of AIR, which is expected to close next quarter, represents the company’s largest acquisition in the multifamily sector. Blackstone will take the company private. #multifamilyinvesting #multifamily #apartments

Reports of light at the end of the tunnel! “Real estate values are bottoming. … We would expect deal activity to pick up. … We continue to see robust fundamentals. …. Our real estate will emerge from this cycle even stronger than before,” Gray said. #commercialrealestate #realestate

Commercial Real Estate (CRE) is not a monolith. Within CRE, different segments are performing at different levels of stress as exemplified by their cap rates, investor demand, occupancy levels, future demand, (re)financing options, asset quality and location. Within a rising interest rate regime since 2022, different geographies are reacting and adapting differently to the rise in cap rates (decline in CRE asset values). #Blackstone leadership has, in recent months, come out publicly with a view that CRE has found a floor underneath it. Meanwhile, #Starwood leadership has taken a view that the worst in the CRE upheaval is yet to come. Indeed, second and third order effects of the CRE crisis such as multiple bank failures, developer bankruptcies and real estate investment firm closures — are yet to occur en masse. IMHO, the worst of it lies ahead as the CRE sector approaches loan maturity / re-financing walls in 2024 and beyond -- at rates that are ~500 basis points higher than they were in 2022. ~$1 trillion in CRE debt is expected to mature in 2024 itself. While Blackstone and Starwood Capital Group leadership seem to be taking a differing view on the prospects of CRE going into H2 - 2024 and beyond, both may be right. While there is a floor in price declines in select CRE segments like industrial RE and senior housing — and even robust demand in segments like data centres and student housing, the majority of CRE segments are under pressure. The travails of office and retail segments have been widely reported. However, I expect even sought-after segments like multi-family housing and hotels are to face a reckoning. Why? The "higher for longer" interest rate regime will bite into the values of existing assets on the one hand and slow down lending and re-financing to these segments on other hand. With banks hampered by their strained balance sheets and regulation, private credit will step in to many of these situations…at a higher cost of capital and more onerous terms. Ultimately, Barry Sternlicht's (Starwood's) assessment that there is considerable pain ahead in CRE may prove to be true(r). The CRE industry is still re-adjusting to a new higher cost of capital period with no major reprieve in rates until something breaks in the real economy. Ironically, CRE itself maybe the most vulnerable sector where a series of CRE defaults and bank failures could trigger a broader systemic seizure -- thus forcing central banks' hands to lower interest rates even when inflation continues to remain intransigent (and even resurgent thanks to the loosening of financial conditions from the Fed's premature "dovish pivot" in Q4 - 2023). The longer high interest rates persist in a heavily indebted economy, the higher an exogenous or endogenous risk brings the house down. Hence, at #Neuron, our position is that CRE, equities, corporate bonds (IG + HY), commodities and #crypto — are all over-priced. Downside volatility in markets ahead. Stagflation ahead.

While we’ve done dozens of development deals in the past few years, we’re excited to announce our first property purchase since February 2020: the impending acquisition of a 300-unit garden-style multifamily property in suburban Dallas.     In today’s Bisnow article, Origin Co-CEO David Scherer discusses the impact of recent high-profile transactions by investment giants like KKR and Blackstone. With stabilized interest rates and strong fundamentals, multifamily demand is set to outpace supply. Read the article here: https://bit.ly/3XIGcFY #realestate #multifamilyinvestments #markettrends 

When people ask me why now is the golden window to buy multifamily? Here are a couple of compelling reasons: · Supply-Demand Discrepancy: A significant disconnect exists between supply and demand, promising continued strong absorption and rental dynamics. · Homeownership Cost Barrier: With homeownership increasingly out of reach for many, there's a growing renter pool, further bolstering the rental market. · Bond Market Dynamics: While bond markets are relatively high (at least for this decade) pricing reflects this state. Anticipated interest rate cuts could tighten spreads, potentially boosting investment values. · Buyer's Market Advantage: Presently, it's a buyer's market, offering less competition and more unique opportunities. · Inflation Hedge: Commercial real estate remains as an attractive option for investors seeking to outpace inflation and build long-term wealth.   As noted by experts from Blackstone, investing during periods of uncertainty can yield immense upside. “You want to be investing into this dislocation because there's a lot of uncertainty. When that uncertainty passes, those investments begin to deliver accelerated return.” While deals may be challenging in today's market, the potential upside CRE is unprecedented. For those with a long-term outlook, there's arguably never been a more exciting time to enter the nipsey hussle marathon than today. https://lnkd.in/e6FfhsH4 #greysteel #cre #blackstone #realestate #multifamily #investing

Amidst the uncertainty of today's economy, one investment shines bright: C-Class multifamily properties. 🏢💼 Here's why they're your key to stability: Consistent Demand: These properties cater to the essential need for affordable housing, ensuring a steady stream of tenants regardless of economic ups and downs. Affordable by Design: Offering affordability without sacrificing quality, C-Class units provide a reliable source of income even in turbulent times. Versatility: Their appeal spans a wide range of tenants, making them resilient to market fluctuations and adaptable to changing economic conditions. Risk Management: With lower acquisition costs and consistent cash flow, C-Class properties offer a buffer against market volatility, enhancing overall portfolio stability. In today's uncertain world, the reliability of C-Class multifamily properties is more valuable than ever. Ready to explore the stability they offer? Let's chat! 📈💬 #RealEstateInvesting #CClassProperties #MultifamilyRealestate