NAI Mopper|Benton - Savannah Commercial Real Estate’s Post

Fear of widening losses in the commercial real estate market has been a top concern with investors, according to Bank of America Corp.’s latest Global Fund Manager survey. In that heightened risk, though, a growing number of investors are looking to deploy capital. Story by Scott Carpenter https://lnkd.in/eeB6jZSx #CRE #commercialrealestate

Uncertainty shrouds the commercial real estate (CRE) market. While prices have fallen, has the bottom truly arrived? Nobody knows the bottom until hindsight. However here are a few tentative signs of recovery. BlackRock, SL Green, RXR, Ares Management, and others announce targeted acquisitions and funds, signaling potential value. Lenders and investors anticipate upcoming loan expirations, suggesting groundwork for future deals. Markets may be finding some clarity as price discrepancies shrink. While definitive answers about the market bottom remain elusive, these insights offer valuable guidance for investors. By understanding key indicators, industry sentiment, and potential challenges, you can make informed decisions as the CRE market navigates this crucial turning point.

On #Investing - Nice divergence between Met Life (MET), and Lincoln Financials (LNC). Met has a $100B commercial real estate portfolio with the stock at all time highs. Makes a lot of sense - a MET put spread going out 9 months. 

🏡💼 As a real estate professional, have you considered the opportunities arising from the current volatility in commercial real estate? 💰📈 - Global real estate funds are sitting on $544 billion in cash, ready to invest in distressed properties. - Owners facing higher debt-service costs are attracting investor interest for rescue capital. - Commercial property distress has risen to $85.8 billion, creating potential for strategic acquisitions. - With over $2.2 trillion in commercial mortgages maturing soon, the market dynamics are shifting. Despite challenges, the availability of capital for distressed assets signals a different outcome compared to past crises. Embrace the evolving landscape and explore new possibilities in real estate investment. 🌟🔑 #RealEstateOpportunities #CommercialProperty #InvestmentStrategies #MarketInsights #PropertyDistress #RealEstateInvesting

Capital calls do not have to be made on a pro rata basis but are usually done so to avoid dilutions. Capital call provisions in joint venture and syndication operating agreements should be carefully reviewed by both sponsors and investors to ensure they are comfortable with the ramifications, such as whether capital calls are mandatory and if there is a penalty or the level of dilution if an investor does not meet the obligation. In syndications, there are many investors so the risk of whether an investor will meet the capital call is diversified across many investors. However, the wealth level of syndication investors varies drastically. Some investors are high net worth individuals with millions in cash while others may be making their first private real estate investment with their last $50k. Many sponsors in syndications opt to make a manager advance to the investment if additional capital is needed rather than making a capital call to tens or hundreds of investors, especially if the capital need is minor. Manager advances are usually made as a loan at 0% up to 8% (or equal to the preferred return). To get the latest updates on Lone Star Capital and multifamily investment opportunities, click the link in the comments and join our investor list. #multifamilysyndication #lonestarcapital

There are a lot of people willing to pay extra for nicer finishes and those are the tenants I want. Follow for real estate investing (the good, the bad, and the ugly) #realestate #realestateagent #biggerpockets #finances #investmentproperty #brrrr

What's the trend in commercial real estate? * Commercial property values have fallen 21% on average since the Fed began raising interest rates two years ago.....most of those buying up 'bargains' are family offices/private investors who often make the boldest steps first....and get the best buys, not only price-wise, but they also have more choice. They tend to own assets for longer and are more focused on creating generational wealth than hitting strict return hurdles like larger institutional investors. (WSJ) #commercialrealestate #commercialproperties #realestate

Our team’s weekly update on this week's most exciting & relevant capital markets outlook and updates. Reach out with any financing questions. We appreciate you reading. As always, please feel free to share this with anyone you think may be interested. If you would like to be added to our distribution list, please email Scott Raasch (sraasch@ipausa.com) with contact information. Fun Fact: When we speak with multifamily equity & debt investors, there seems to be a myopic focus on supply, primarily oversupply, and historical supply. Perhaps some focus could be paid to demand. That's the other side of the equation. At the halfway pole in 2024, multifamily absorption was at its highest level in 20+ years, second only to 2021. #MultifamilyFinance #commercialrealestate #realestate #cre #realestateinvesting #commercialproperty #property #multifamily #industrial #housing #investmentproperty #incomeproperty #MarcusMillichap #IPA #privateequity #GlobeSt #Bisnow #finance #southeastcommercialrealestate

Per the chart, CRE bidding activity was on the rise in late 2023, with the average number of bids per deal increasing by 16%, narrowing the bid-ask spread. A shout out to Richard Bloxam and his team for producing this article... Strong summary of the current state of the CRE Capital Markets. Below are key excerpts: By the end of 2025, $3.1 trillion of real estate assets globally will have maturing debt. The current refinancing shortfall for these loan maturities is an estimated $270-$570 billion, which will catalyze transaction activity and provide a clear first-mover advantage for well capitalized investors in 2024. The dry powder for CRE now totals $402 billion sitting on the sidelines. #capitalmarkets #investmentsales #commercialrealestate #realestateinvestment #realestateinvesting

Liquidity-driven first-mover advantage unfolds in commercial real estate as investors strategically deploy $402 billion in dry powder, capitalizing on market shifts and a $3.1 trillion maturing debt opportunity. https://lnkd.in/eJjY8DjJ #realestate #commercialproperty #opportunity