Real Estate LPLink News’ Post

https://lnkd.in/gE6UaRX9 Investors and fund managers are realigning and recalibrating portfolio allocations by beefing up multifamily real estate positions. They are following market forces and gravitating to the position that now is the time to go on the offensive – and perhaps capture generational investment opportunities in the process. Origin Investments KKR Blackstone David Scherer #OriginInvestments #guestcontributor #multifamily #realestate #generationalinvestments #alternativeinvestments #KKR #Blackstone #marketforces #valuation #interestrate #bridgeloan #development #renting #buying #buildforrent #housingshortage #inflation #acquisition

Let's talk about multifamily exit strategies. Selling off a multi unit complex is a long-term plan with benefits such as: 💰 Liquidity 💰 Capital gains 💰 Value accretion to refinance You can exit a property in several ways, but which one is best? 1️⃣ Conventional sale 2️⃣ 1031 exchange 3️⃣ Opportunity zone fund 4️⃣ Partnership buyout 5️⃣ Refinancing Each strategy has its pros and cons. But here's the catch: your investment goals determine the best approach. Are you in it for quick gains or long-term profits? What are your tax implications? How much equity do you want to cash in? A sound exit strategy ensures your financial success while mitigating risks. What's your preferred exit strategy and why? Share your comments below. #realestate #exitstrategies #realestateinsights

When investing in a real estate partnership, an investor's distributions are determined by the waterfall. Although there are various ways to structure a partnership, I will explain a bit about Lone Star Capital's deal structure. Our typical waterfall includes an 8% cumulative and compounding preferred return, followed by a 100% return of capital. Subsequently, distributions are split 70% to investors and 30% to Lone Star Capital up to a 15% IRR. Once a 15% IRR is delivered to investors, any remaining distributions are split 50/50. According to the waterfall structure above, cash-out refinance proceeds would be distributed back to investors, first to pay or catch up the preferred return (if necessary), then to pay down the investor's capital account. This is where some confusion arises. It's important to note that a reduction in an investor's capital account for the purposes of the waterfall does NOT dilute the investor's interest in the investment (for tax purposes or otherwise). To learn more about investing with Lone Star Capital, join our investor list by clicking the link below. #realestateinvesting #lonestarcapital

Jon Gray, President of Blackstone suggests that real estate prices have hit rock bottom, presenting a golden chance to acquire assets at reduced prices. “Perception is so negative, the headlines are negative, yet the value decline has occurred. As investors, you miss it by being overly cautious and I think now is probably a good time before rates come down, to move” the Blackstone president and chief operating officer said. Gray advises investors not to wait for interest rates to drop further, urging them to capitalize on current conditions. Bloomberg BNN Bloomberg Read more: https://lnkd.in/gUcCni6K . . . . . . . . . . #RealEstateInvestment #OpportunityKnocks #InvestmentStrategy #Blackstone #MarketInsights #marketnews #realestate #realestatemarket

Dive into our latest YouTube video where we break down the deal structure, refinance, and costs involved in transforming a 3-bedroom Victorian terraced house into a lucrative 6-bedroom HMO (House in Multiple Occupation). We'll take you through the journey from us purchasing the property at £130,000 to investing £130,000 in build and refurbishment costs, resulting in a staggering valuation of £350,000! Witness firsthand the transformation and learn about the associated costs and considerations. Stay tuned for updates as we unveil the final results of this investment venture. Don't miss out on valuable insights to elevate your property investment game! Follow and subscribe for more! #PropertyInvestment #HMO #RealEstate #Refinance #DealStructure #InvestmentJourney

Listen to Blackstone Inc. President Jon Gray’s data-backed analysis of opportunity in the current real estate market. Given the near-term pricing dislocations and long-term housing shortage in the United States, we expect the multifamily sector to drive strong investor returns over the long term. Our Distressed Value-Add Fund is designed to take advantage of this opportunity: https://lnkd.in/geeZ98uR #valueadd #realestateinvesting #investnow

✂️ Blackstone Cuts Amid CRE Struggles Deep slashes caused by turbulent market. JUL 28 READ IN APP The commercial real estate market is in a tough spot right now, with corporate bankruptcies hitting their highest levels since 2010. Businesses are struggling to keep up with high borrowing costs and limited liquidity, and it's making a big mess in the CRE sector. Adding to the chaos, Blackstone Mortgage Trust just cut its dividend by 19%. Passive Cash-Flowing Properties Buy shares of investment properties, earn rental income & appreciation for anywhere from $100 to $20k — let Arrived take care of the rest https://lnkd.in/eZhkuyYV

Interesting article exploring the intricate dynamics at the intersection of real estate fund reserves, cost of capital, and valuation. Alvarez and Marsal offers expert guidance to optimize your strategies in the turbulent real estate capital markets. #realestate #financialstrategy #alvarezandmarsal

Blue Owl Capital, a private equity firm, agreed to acquire Prima Capital Advisors, an investment advisor specializing in commercial mortgage investments, for $170m. "In evaluating the next stage for how we can best serve our stakeholders, we identified Blue Owl as the clear value-driver given the strength of their management team, their exceptional capabilities and strong culture of collaboration. I along with Prima CIO Nilesh Patel, CFO Julia Tcherkassova, and the rest of the Prima team, are excited to join Blue Owl and continue the strong legacy we created over the past three decades," Gregory White, Prima CEO. Prima Capital Advisors (led by Gregory White) is advised by Morgan Stanley, Kramer Levin Naftalis & Frankel LLP and Pillsbury Winthrop Shaw Pittman LLP. Blue Owl Capital (led by Marc Lipschultz, Doug Ostrover and Marc Zahr) is advised by Newmark Group, Berkshire Global Advisors, J.P. Morgan, Natixis Corporate & Investment Banking, Scotiabank, Wells Fargo and Kirkland & Ellis. #MergersAcquisitionsDivestitures #Mortgage #FinancialAdvice

📊 Blackstone REIT's Appraisal Process Under Scrutiny 📊 Blackstone Real Estate Income Trust (BREIT), the largest US nonlisted property REIT with $130.8 billion in assets, is facing criticism over its appraisal methods. Despite concerns, a CoStar News analysis reveals BREIT's property values have dropped similarly to its peers since the Federal Reserve began raising interest rates. From August 2022 to March 2024, BREIT's NAV fell 8.1%, while other NAV REITs averaged a 9.3% decline. Critics argue BREIT's valuation process might overstate property values, impacting returns and fees. However, BREIT asserts its approach is rigorous and conservative, adjusting cap and discount rates promptly. The debate underscores the importance of transparent and accurate valuations in the real estate sector. #RealEstate #Investment #Blackstone #REIT #PropertyValuation #FinanceNews