Chris Lee

“You can’t buy back all of your interest on any given day because where would you get the money to do that if it’s all sitting in illiquid real estate?” #NAV #REITS: Excellent quick read from Urban Land Institute, citing ADISA's L&R Co-Chair and President-Elect John Grady, clearing up misinformation regarding Non-Traded REITS. "NTRs...were never meant to be liquid. Unlike volatile funds that trade on exchanges, NTRs were designed to give investors stable, long-term returns and allow issuers the ability to wait out the market and sell assets only at peak prices. Commercial property assets are, after all, much different from stocks by being fundamentally illiquid." https://lnkd.in/ezMimHYR

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EQT Exeter Expands Footprint in Suburban Boston. A California-based real estate investment firm with a national portfolio of light industrial real estate, sold a pair of distribution centers in Taunton, Massachusetts, to EQT Exeter, the industrial real estate firm formed two years ago through the acquisition of Exeter Property Group by Swedish investment manager EQT AB. The two buildings traded for $37.35 million, or approximately $202.45 per square foot. The assets involved in the sale are located in the Myles Standish Industrial Park and were reported to be fully leased at the time of closing. They include 385 Myles Standish Blvd., 141,990-square-foot manufacturing facility that was recently leased by WorldPac, a wholesale distributor of automotive parts. It sold for an allocated $30.46 million. The other building at 295 Constitution Dr., is listed as a 42,500-square-foot warehouse and sold for an aggregated $6.89 million. https://lnkd.in/g_zRm8b7 #industrialreaalestate #propertyinvestment #realestateinvestment #realestatefirm #warehouse #milliondollarlisting #industrialbuilding

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The CMBS market has made a remarkable comeback in the first five months of 2024, with U.S. private-label CMBS issuance skyrocketing to $32.2 billion, up from $13 billion during the same period in 2023. This resurgence highlights the critical role of CMBS in commercial real estate (CRE) lending, now accounting for 14% of all U.S. CRE lending. Despite rising defaults, CMBS is effectively bridging the liquidity gap left by commercial banks. Major players like Goldman Sachs, Bank of America, and Blackstone are driving this growth, leveraging their substantial balance sheets to meet the increasing demand for securitized loans. With narrowing spreads and a favorable interest rate environment, CMBS continues to be a crucial source of capital for CRE borrowers and investors, offering a reliable alternative in a challenging market landscape. As the market adapts to changing economic conditions, CMBS stands out as a resilient and indispensable component of the CRE financing ecosystem. #CMBS #RealEstate #Finance #CRE #Investment #MarketTrends #EconomicRecovery #CapitalMarkets #CommercialRealEstate https://lnkd.in/eNYvb9Xv

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While the pandemic has cast a shadow on the future of office spaces, the current state of affairs is more nuanced than we think. There is a growing demand for high-quality office buildings in the right locations with access to good transportation links. This trend has been in motion even before COVID. With a continuing growing economy, as much as a quarter of the current office stock obsolete, and likely no new supply until the middle of the next decade, vacancy will tighten. https://lnkd.in/danEBFQq

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On December 4, Manatt's Ted Hunter will moderate a panel at Markets Group's Real Estate Global Forum in New York. The "Building a Recession-Proof Portfolio" panel will discuss strategies for generating returns in 2025, structuring #realestate allocations, divesting certain investments, hedging risk over the next 12-24 months, and adjusting portfolio strategies to build resilience during a recession. To learn more and register, click here: https://lnkd.in/ezxF2i33

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The value of distressed assets in the #CRE marketplace continued to grow in the U.S. into Q3'24. Still, the ramp up is not as rapid as that seen following the GFC as there are different forces at play in the current market. Read more about the source of distress and a chart on comparisons to the GFC by my colleague Alexis Maltin here: http://ms.spr.ly/6049WR4GN MSCI Real Assets

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It’s not efficient to finance a $430 million project with small tranches of capital. And yet we are on Small Change. In early April 2024, Small Change, launched an investment opportunity into 22 Drydock Avenue in Boston’s Seaport district. The property is slated to be the city’s first life sciences building to achieve LEED Platinum and net-zero carbon emissions and has very lofty DEI goals. Related Companies (led by a woman) was selected a few years ago by the City of Boston to develop 22 Drydock, an R & D building to be fully occupied by Vertex Pharmaceuticals (led by a woman). And Boston Real Estate Inclusion Fund (BREIF), negotiated a small position ($3.75 million) in the $130 million equity stack required for the project. Put another way, they further diversified the capital stack from a single, big, diverse investor to now include multiple investors—over 40 women and people of color to date. While the offering is not exclusively available to that group, BREIF is using its network to target diverse capital. This is an opportunity to invest alongside the big boys. While (disappointingly) it is not open to non-accredited investors (you can take that up with the SEC), it is a very big step forward to providing opportunity where normally there is none. Read the Q & A or go to the listing (https://lnkd.in/eEUfdJhb). Be quick. BREIF is closing in rapidly on it's maximum funding goal. https://lnkd.in/eYcrHWRk _____________________________ This is not a solicitation of an offer to buy or sell any securities. All investing is risky and involves the risk of total loss as well as liquidity risk. Past returns do not guarantee future returns. If you are interested in investing, please visit SmallChange.co to obtain the relevant offering documents. ______________________________ 👋 I’m Eve 🌇 In love with cities. 🚀 Disrupting the status quo at SmallChange.co 🎧 Rethinking real estate. For good. Liked this post? Want to see more? 🔔 Click the bell on my Profile 👥 Send me a connection request  #commercialrealestate #socialimpact #BIPOC #impactinvesting #cities Kirk Sykes

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In a recent article published by the Tuck School at Dartmouth and supported by the research of ghSMART, the overall ability of CEOs has fallen since the global financial crisis in 2008. The study finds that more recently appointed CEOs are less strategic and creative, and more execution oriented. Per the authors, these CEOs are not as charismatic and interpersonally oriented, but rather operationally focused. Is this a “reaction to the moment,” where running a public company, in particular, has recently become less attractive due to global uncertainty, greater transparency, etc. It is, however, counter to what we seek in our CEO candidates, where we continue to focus on those executives with a blend of strategic skills and leadership skills. 

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📢 Our latest #cushmanwakefield market reports are now available! 🏢 Real Estate Investment: Q3 saw a decline with €197M in transactions, but optimism remains as significant deals are expected by year-end, led by active domestic investors. 🏬 Office Market: Stability persists despite higher vacancy rates. Construction activity is up 94% y-o-y, and demand for prime office space continues to be solid. 🏭 Industrial Sector: Although demand fell compared to the previous quarter, it remains strong year-over-year. Prime rents are stable, and speculative construction is ongoing. 🛒 Retail: Shopping centres are improving, with lower vacancy rates and higher footfall. Retail parks continue to expand, and retail park rents are slightly up due to demand. 🏨 Hospitality: Prague leads the CEE-6 region in RevPAR growth, up 11.5% YTD. Recovery continues, supported by lower financing costs and expected market activity. our reports are available to read here:https://lnkd.in/eE2J6BHS The recovery may be slow, but there are encouraging trends across sectors. #CWCzechRepublic #CWCzechia #Cushwake #MarketBeats #CZMarketBeats #Insights #BetterNeverSetlles

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Here’s something I’m not thrilled about: congestion pricing in NYC. I understand the need to fund infrastructure and improve the subways, but charging $9 a day to drive south of 60th Street in Manhattan feels counterproductive. Right now, Manhattan is already facing a significant drop-off in midweek workers, especially on Mondays and Fridays, as remote and hybrid work redefine office life. Instead of incentivizing people to return, this feels like a deterrent. Yes, I get the argument for reducing cars and encouraging public transportation, but is this the right solution? What really hits home for me is how this impacts young professionals like my 24-year-old daughter, who reverse commutes out of Manhattan for work. She’s now looking at an additional $50/week cost on top of high rent and parking fees. It’s tough enough to get ahead in the city without these extra costs. What are your thoughts on congestion pricing? Is it the right move, or should NYC explore other ways to balance revenue and accessibility?

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WASHINGTON, D.C. - Greater Washington’s economic outlook at standstill with ‘frozen’ commercial real estate The economic outlook for Greater Washington continues to show a region locked in stasis by a chilled commercial real estate market. At the same time, a handful of data points offer a glimpse of hope for the near future. That’s the latest finding from CBRE’s REVIVE Regional Vibrancy Index charting the D.C. area's economic strengths and weaknesses in the wake of a pandemic that changed the core of how the region operates, from the shift to hybrid work to the evolution in how people get around. CBRE and the Washington Business Journal are partnering to produce the monthly index, tracking changes throughout 2024. The index in May fell 1.3% from the previous month to 65.5 out of 100. The data lags by about a month. The most recent index, however, sits 12.2% below where it was a year ago in May 2023. Like in April, the score continues to be weighed down by a growing intensity of distress in the region’s commercial real estate markets, which face higher interest rates and softer demand. Valuations of commercial space, especially downtown offices, have also fallen dramatically, leading to fewer transactions. Office foreclosures in the first half of 2024 have already exceeded the total number recorded in 2023, CBRE reported, fueled primarily by rising vacancy and upcoming debt maturities. “Right now the region’s commercial real estate sphere just remains generally frozen and challenged,” said ​​Ian Anderson, CBRE’s senior director of research and analysis. The commercial real estate component of the score is at the lowest number the firm has ever recorded, and it is likely to remain stagnant. A lack of commercial real estate transactions is also constraining the budgets of local governments, including suburban jurisdictions, by depriving them of tax revenue. That could hold up some initiatives that governments may have otherwise pursued had the tax dollars been available, Anderson said. “That’s a hard thing for people to get a handle on, but it’s going to be something we’re just going to have to deal with over the next couple of years,” he said. The good news? The real estate industry has likely absorbed what Anderson believes to be the brunt of higher interest rates and their effects on values, especially in retail, industrial and multifamily. In the fall, he said, there’s potential for investors to move back toward new commercial real estate investments as they settle deeper into this new normal. But the caveat is that some forthcoming sales activity will not necessarily reflect positive data points. Transactions, for example, could come from multifamily owners unable to sustain higher interest rates. For more, click on the link below. #escrowcredirt #newmarktitleservices https://lnkd.in/eaztc54N

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State Of REIT Nation: Waiting At The Bottom https://lnkd.in/eTKsuM9t REITweek, the annual REIT industry conference, was held last week in New York City. Humbled by two years of rate-driven headwinds, the venue halls were as quiet as any REITweek. Excitement was muted after numerous "false starts" on the long-awaited Fed pivot, a dearth of IPO and M&A activity, and a two-year period of significant underperformance versus the broader market. It can only get better: Since the start of the Fed's rate hike cycle in March 2022, the REIT Index has underperformed the S&P 500 by a whopping 40 percentage points. Tempered optimism was the prevailing sentiment among REIT executives. Most discussed steady-to-strong property-level fundamentals, but also an uptick in debt-driven distress among some of their private market peers. "Delay and pray" has remained the strategy for many highly-levered property owners amid a dearth of buying interest and limited capital availability. Public REITs have opted to remain on the sidelines, but we expect opportunities to emerge as private markets bottom out. REIT Academy & The Executive REIT Masterclass | The Daily REIT Beat Newsletter | Seeking Alpha | Alex Pettee, CFA | David Auerbach | #REITs #Dividends #Investing #Income #Yield #RealEstate #Housing #Stocks #Bonds #HighYield #DividendInvesting #IncomeInvesting #Diversification #Inflation #realassets #investment

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Listed REITs returned +2.3% last week, outperforming the S&P by 54bp and the NASDAQ by 50bp. Real estate was the 4th best of the 11 S&P sectors. Every subsector was positive as data centers (+4.9%), lodging (+4.7%) and office (+3.7%) led while single family rental (+0.2%), malls (+0.7%) and manufactured housing (+1.0%) were relative laggards. Year-to-date returns now stand at +12.1% with valuations only -2.7% below their 2024 highs. Here's your pretty picture.

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MULTIFAMILY PERMITTING DROPS “Most markets won’t see the impact of rapidly falling starts translating to lower completion levels until the second half of 2025, and more likely in 2026,” Doug Ressler, senior analyst and manager of business intelligence at Yardi Matrix, RentCafe’s parent company, said in the report. “All said, this massive drawdown in starts across all regions sets the stage for a very different industry trajectory come 2026 and 2027.” The report continues "The U.S. needs 4.3 million new apartment units by 2035 in order to mitigate issues related to apartment demand and affordability, according to an August 2022 report commissioned by the National Apartment Association and National Multifamily Housing Council." Crossbeam is under construction on our Golden Ridge property at a time in the market when there are not other cranes in the air. We are deploying capital now into new apartment development that will be there in time to meet the market when starts have fallen off a cliff. 30 Yrs of experience tells us to pick mid sized bets in dynamic markets and build to meet demand IN ADVANCE of the market stabilization and unit shortfall. We are putting dollars out now to meet that market. Come join us in our KB Mountain West Housing Strategies Fund which focuses on high barrier to entry markets with significant unmet demand. In multifamily it takes 1-2 years of entitlements and 2 Years of Construction to deliver a unit. We see a significant gap a few years as the delivery times won't have time to catch up. Long term we have a significant deficit.

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With our value-add asset strategy, MLG Capital targets assets to increase operational efficiency or implement renovation plans to drive NOI. Senior Vice President David Binder, Jr. describes how this approach targets risk mitigation and strong returns below ⬇: #PrivateRealEstate #Investments #Assets #AssetStrategy #MLGCapital

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Further evidence that institutional investors find open air retail (and especially necessity-based retail) to be an investment opportunity. For more insights on the state of the market, feel free to review SageTrust Properties' Q3 2024 white paper (https://lnkd.in/ejJneCGe).

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Not half bad: New York City sees more sales in first six months of the year In the first half of 2024, New York City’s investment sales market experienced a significant boost, with an 11% increase in transaction volume and a 23% rise in dollar volume compared to the latter half of 2023, Connect CRE reports. This growth is driven by recent legislative changes such as a tax abatement and zoning reforms under Mayor Eric Adams’s “City of Yes” initiative, which have bolstered investor confidence. Transactions totaled $11.48 billion across 943 deals, with notable activity in the residential sector due to mortgage maturities.   Read more: https://lnkd.in/dHzHFMw8   #ThomasTitleandEscrow #CommercialRealEstate #TitleTrove #NYC #MarketGrowth

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