Juan Sebastian Agudelo

“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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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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Listed REITs returned -2.9% week-over-week, underperforming the S&P by -155bp and the NASDAQ by -140bp. The culprit was once again rising real rates that increased by +10bp to 2.05%, the highest level since early July. Healthcare (+0.5%) and shopping centers (+0.2%) eked out positive returns while single family rentals (-7.3%), apartments (-5.2%) and cell towers (-4.6%) were laggards. Listed REITs stand at +8.9% year-to-date and +31.9% year-over-year. Here's your pretty picture.

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The latest news on the NYC apartment market is that the renter is choosing smaller apartments (and fewer Starbucks coffees and further support of a weaker consumer). Post-covid, the wealthier, more confident renter could afford and required larger apartments. Now the market is shifting back to smaller, more affordable apartments and apartment shares. https://lnkd.in/exqaZUjN

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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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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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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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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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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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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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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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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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Did you know that a WHOPPING 45.3% of Equity Lifestyle Properties' Property Operating Revenue came from properties in Florida in 2023? For industry analysis & deep dives into portfolios & performance of operators like ELS, subscribe to my newsletter at: ohweekly.substack.com

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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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Yesterday’s Fed rate cut was bigger than expected, how does that influence the commercial real estate market? 🏦 Erin Lavelle shared insights with Commercial Property Executive, discussing how this rate cut influences debt markets and leverage in the space and why the next 6-12 months present compelling opportunities for dealmaking. Read the full article here: https://ow.ly/8LpR50TrhTX #interestrates #fed #cre #realestate

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The coming year poses a significant challenge for NYC's office market, with $4.8 billion in CMBS loans set to mature. Amidst occupancy declines and refinancing hurdles, will the Big Apple weather the maturity storm? Dive into Christopher Rosin's latest analysis for more insights: https://lnkd.in/gzSbQFH9 #CRECapitalMarkets

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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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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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