Giuseppe Infusino

The grocery-anchored retail sector remains a resilient asset class in commercial real estate, as highlighted by Blackstone’s recent $4 billion acquisition of Retail Opportunity Investments Corp. (ROIC). https://lnkd.in/d9z_qQ-r These centers serve essential community needs and are less affected by e-commerce trends, making them a stable, high-potential investment option. At Buligo Capital, we recognize the strength of this asset class and are actively pursuing opportunities within it to deliver steady, long-term value for our investors. Our strategic focus on grocery-anchored properties aligns with our commitment to secure, resilient returns in a dynamic market. #RealEstateInvestment #GroceryAnchored #CommercialRealEstate #BuligoCapital #LongTermGrowth

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Institutional money is back! KKR, a prominent private equity investment firm out of New York has reentered the multifamily investment space by acquiring over 5,200 units across the U.S., including Texas and Florida. This move signals renewed confidence in the multifamily sector, as some firms are banking on the dwindling apartment construction starts to boost occupancy and rent growth in the near future. This comes shortly after Blackstone’s $10B purchase of Apartment Income REIT in April. Opportunities are on the horizon, and we will begin to see more as the year progresses. As it is, distressed apartment sales totaled nearly $1B in Q1 alone. https://hubs.li/Q02DKJs50 Interested in learning more about Club Capital? Join our preferred investor club to get access to our latest investment opportunities and our education blogs and podcasts. https://hubs.li/Q02DKMnn0 #PreferredEquity #InvestmentStrategies #CREInvestments

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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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Brookfield Property Partners spent billions in 2018 to assume full ownership of mall-owner GGP when malls were out of favor on Wall Street. Executives at the firm defended this contrarian bet in part by saying that they would turn most of the company’s 125 malls into minicities with residences, offices or hotels as well as stores. Six years later, only two malls, in Atlanta and near Seattle, have been redeveloped in this way, with another two—in North Carolina and Denver—in the pipeline. The slow pace of its redevelopment efforts shows how difficult, expensive and time consuming it is to revamp enclosed malls. https://lnkd.in/gfdqqC5d #ccim #ccimwa #malls #retail #minicities #office #hotel #Seattle

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Driftwood Capital it's an opportune time to be developing if you can mitigate current headwinds (financing, construction cost escalations, etc.) underpinned by tailwinds of supply-demand imbalance, and future timing (cyclical) in a more normalized capital markets and peak of cycle - opening / ramp to stabilization - and micro nuances for accretive strategies (incentives / gurantees).

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Driftwood Capital plays up and down the cap stack (Equity & Mezz Debt / Pref Equity), horizontally across constructs (Acquistion, Development, & Lending), hence true vertical integration with Driftwood Hospitality Management: https://lnkd.in/gWZJypBn

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Blackstone makes ~$10 Billion Apartment Investment   ❓ Is the institutional #multifamily bid back?   CoStar Group reported that “Blackstone fund Blackstone Real Estate Partners X [will] acquire all outstanding shares of AIR Communities for $39.12 per share, 25% more than Friday’s closing price [April 5th, 2024].”   ❗ Blackstone President Jonathan Gray previously stated in a 2023 earnings call that we are at a “cyclical bottom”.   As for Blackstone’s forecast, Gray stated:   1️⃣ “We believe we're now heading into a better environment … with inflation and cost of capital headwinds moderating”   2️⃣ “While it will take time, we can see the pillars of a real estate recovery coming into place.”    3️⃣ “We are, of course, not waiting for the all-clear sign and believe the best investments are made during times of uncertainty.”   ❔ Do you think this transaction is indicative of the institutions return to aggressively bidding on deals? JLL Multi-Housing - Central TX Ryan McBride | Robert Wooten Chris Roper | Nick Beardslee | Alex Fernandes

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“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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Stanger reaffirmed its overweight rating for BREIT, highlighting the $23 billion returned to shareholders and the strong performance of its diversified real estate portfolio. Read the full article on SQX Alts! #REIT #alternativeinvestments #finance

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In a big move for #retail capital markets, Blackstone Real Estate announced it will take shopping center owner and operator Retail Opportunity Investments private in a $4 billion deal, as reported by The Wall Street Journal: https://bit.ly/3YX6MeD. I recently chatted with two of Colliers' retail capital markets experts Charley Simpson and Whitaker Leonhardt to hear about what they're seeing in their markets as retail investments continue to draw attention. See their insights in the full article, here: https://bit.ly/3YX6Ta3. #CRE #capitalmarkets

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Rates Rise • REITweek Updates • Hotel M&A REIT Daily Recap: https://lnkd.in/ewH-aJ5e One of several REITs to publish a business update ahead of the REITweek industry conference in the week ahead, Equity Residential (EQR) slipped 2% today despite providing an encouraging business update ahead of its REITweek presentation next week showing a continued rebound in multifamily fundamentals in early 2024. $EQR notched blended rent growth of 2.9% in May - up from 1.6% in Q1 and 0.8% in Q4 - comprised of buoyant mid-single digit renewal rent growth (+5.0%) and marginally positive new lease rates (0.4%). In the updated deck, EQR noted that expects to deliver full-year FFO and NOI that are "towards the higher end" of its existing guidance ranges, citing sustained high demand, pricing power in East Coast markets, and lower-than-anticipated expense growth. Apartment REITs were among the Winners of REIT Earnings Season, as five of the eleven REITs that provide full-year FFO guidance raised their outlook - led by coastal-focused REITs - while the remaining six maintained their prior outlook.

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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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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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🏢📈 Exciting insights from Vornado's Q1 report! While office occupancy is still lagging, there's a silver lining. 🌤️ 🔑 Key takeaways: 1️⃣ Office occupancy is at 15% compared to pre-pandemic levels. 2️⃣ However, there's a positive trend in leasing activity, with 1.1M SF of new leases signed. 3️⃣ Vornado's retail segment is thriving, with occupancy reaching 92%. 4️⃣ The company's net income is up, showing resilience in the face of challenges. 💡 The future looks promising as more people return to the office and businesses adapt to the new normal. Stay tuned for more updates! #Vornado #OfficeOccupancy #RealEstate #NewYorkCity

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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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6 Months to Seize Opportunities in Orlando's Multifamily Market 🏢 As we enter the second half of 2024, Orlando's multifamily market continues to be a source of opportunities for sector investors. Therefore, 𝗜 𝘄𝗮𝗻𝘁 𝘁𝗼 𝘀𝗵𝗮𝗿𝗲 𝘄𝗶𝘁𝗵 𝘆𝗼𝘂 𝟯 𝗿𝗲𝗮𝘀𝗼𝗻𝘀 𝘁𝗼 𝘁𝗮𝗸𝗲 𝗮𝗱𝘃𝗮𝗻𝘁𝗮𝗴𝗲 𝗼𝗳 𝗺𝗮𝗿𝗸𝗲𝘁 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀: 𝟭. 𝗗𝘆𝗻𝗮𝗺𝗶𝗰 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗕𝗮𝘀𝗲 📈 Orlando's robust economy, driven by vibrant tourism and steady population growth, reinforces the resilience and attractiveness of its multifamily sector. This economic dynamism creates a conducive environment for investment, with sustained demand for rental housing supported by stable population growth. 𝟮. 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗔𝗱𝘃𝗮𝗻𝘁𝗮𝗴𝗲𝘀💡 The city's strategic location and diverse employment base further strengthen its position as a prosperous real estate market. Orlando not only attracts residents and tourists but also offers employment opportunities across various sectors such as technology, healthcare, and entertainment, creating a robust and diversified multifamily housing market. 𝟯. 𝗣𝗿𝗼𝗺𝗶𝘀𝗶𝗻𝗴 𝗢𝘂𝘁𝗹𝗼𝗼𝗸 ✅ Monitoring key indicators is crucial for industry professionals, highlighting the increasing demand for rentals and favorable financing options. These factors indicate a promising outlook for market stability and expansion throughout the year, providing a favorable environment for long-term investment. At therealfund, our focus is on identifying properties with high potential and implementing strategic value enhancement initiatives to optimize returns for our investors. With our deep market knowledge and proactive asset management approach, we are well-positioned to capitalize on emerging opportunities within Orlando's multifamily landscape. Therefore, there are six months ahead to continue leveraging market strengths and achieving excellent results in 2024. 🚀 #IncreaseProfits #RealEstateInvesting #WealthBuilding

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In the U.S., grocery-anchored retail centers have outperformed their peers by driving foot traffic and boosting occupancy rates. This trend underscores the critical role of retail in "place-making," where the right mix of amenities has the potential to generate significant rent premiums.   HUSPP has capitalized on the potential of grocery-anchored retail centers with our 2023 acquisition of The Source at White Plains. Looking ahead, experiential retail and food and beverage offerings will likely be imperative for retail investors aiming to create value with vibrant, successful retail environments.   Hines Research discusses the current market dynamics in their latest thought paper, Retail’s Next Act.   Download the latest thought paper here: https://bit.ly/3MCzZ7D   #MarketingCommunication

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I think Adams Street Partners are spot on in this very thoughtful piece! · Rising interest rates are creating headwinds for buyout portfolios · Leverage reliant GP's returns are to be negatively impacted · GPs focusing on scaling via earnings growth are more likely to outperform · Sellers should rein in their valuation expectations What does this mean for PE market like #ASEAN where returns are inherently #growthdriven? Rather simplistically put, higher interests rates are levelling the playing field between Developed Markets (DM) and Emerging Markets (EM) The more returns need to rely on growth, the more regions or countries with strong GDP growth fundamentals become attractive. Granted there are many more nuances that come into play, but one could hardly argue that for the last decade+, low rates and generous leverage packages have supercharged returns in DMs. Unlevered EM businesses needed to grow earnings 3 to 4x faster than DM peers to just match the returns, quite a tall order even in booming economies. With a more "normalised" rate environment, portfolios would benefit from regionally diversified exposures to growth and we believe #ASEAN displays the most promise! #CollyerCapital #CCPL #LeveragedReturns #GrowthReturns #Buyout #interestrates https://lnkd.in/g9xDCjMY

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