Seth Weissman’s Post

Blackstone is set to purchase multifamily real estate in a $10 billion transaction, signaling a renewed confidence in residential real estate. Additionally, the company plans to invest an additional $400 million in upgrading these properties. Jonathan Gray, President of Blackstone, emphasizes the positive signs of real estate recovery, stating, 'We observe the foundational elements of real estate resurgence.'" #blackstone #realestate #investment #strategy

Institutional investors are jumping back into the market! Stabilizing supply dynamics and continued demand for multifamily housing is providing support for future rent growth. This week, KKR solidified its bet that trend will continue with its $2.1 billion portfolio acquisition of over 5,200 apartments in markets nationwide. With institutional multifamily pricing down about 20% from its peak nearly 2 years ago, could this acquisition and others recently completed by private equity backers be a sign the institutional investment market more broadly is seeing a bottom in multifamily pricing? Private client multifamily has seen a similar decrease in value over the last 2 years but has enjoyed a pick-up in investment activity YTD, with investors lured in by various factors. Many times, this includes an attractive cost basis, potentially lower than replacement cost. Time will tell if wagers by these early movers pay off, but with stabilizing costs of capital, additional clarity looking forward, and the big fish beginning to bite, we could be in for a years-long bull market. What do you think? Looking at any potential investments yourself? Send me a message . I'll be happy to offer any insights CBRE has available to help you make the best investment decision you can. #SoCalPrivateClientLending #AgencyLending #FreddieMac #FannieMae #Multifamily #MultifamilyInvesting #MultifamilyRealEstate #MultifamilyFinance #CommercialRealEstate #CommercialRealEstateFinance #PrivateClient #PrivateClientLending #CRE #CREF #CREFinance #CBRE #CapitalMarkets #Debt #Finance #InvestmentProperty #1031Exchange #Refinance #Acquisitions #Loans #LoanOptions #MortgageBroker #MortgageBanking #CMBS #BankLending #DebtFunds #LosAngelesRealEstate #LARealEstate #CaliforniaRealEstate #CARealEstate #OrangeCountyRealEstate #OCRealEstate #SanDiegoRealEstate

EQT Exeter has made a significant move in the Phoenix real estate market, acquiring six industrial properties for $151 million. Reported by The Real Deal, this transaction adds 822,400 square feet to EQT Exeter’s portfolio and is part of a larger $197.4 million deal. This acquisition reflects the continued growth and demand in the industrial sector across Phoenix. https://lnkd.in/eFR77Z3X #RealEstate #RealEstateInvesting

$2.1B for Multi. #WednesdayCRE #CommercialRealEstate #CommercialDebt #CommercialInsurance KKR has acquired a portfolio of 18 multifamily assets from a closed-ended fund sponsored by Quarterra Multifamily for $2.1 billion. The recently-built, Class A portfolio consists of over 5,200 units concentrated primarily in growing coastal and sunbelt markets including California, Washington, Florida, Texas, Georgia and North Carolina, Colorado and New Jersey. The portfolio, a mix of mid-rise and high-rise buildings, serves high-growth metropolitan areas where new supply will slow down significantly looking out beyond the next couple years, according to Daniel Rudin, Managing Director at KKR. #SourcingAndSelling #SellingAndSourcing #Retwit #2024 ~ If you have real estate, and you are willing to entertain offers, have debt to refinance, or in need of insurance for your properties, reach out to me with the details: [email protected] 305.203.2070 ~ Contact Us for Commercial Investments, Financing and Insurance. ~ Multifamily, Industrial, Hotels, Office, Retail, Development Sites, Plus. #ListWithLance #LanceLoans #LetLanceInsureYou #CRE #Owners #InvestmentProperties #Multifamily #Industrial #Hospitality #Retail #Development #Construction #Commercial #CommercialTransactions #CommercialFinance #CommercialInsurances #CommercialTitleAndClosing #CommercialProp https://lnkd.in/gVC85mAY

Exciting to see larger capital continuing to enter this market. Unfortunately, #ios deals are rare in New England. We are seeing a market that prices additional laydown land much more favorably than in years past. The same holds true for "under parked" assets. These often see bids 20-30% lower than similar buildings with standard parking/loading. #industrial #bostonre #realestate

📢 Equity Residential (EQR) Executes Landmark Acquisition 📢 Equity Residential has announced a transformative investment of nearly $1 billion, acquiring 11 apartment complexes in what represents the largest public REIT transaction in seven years. This strategic deal will see EQR add over 3,500 rental units to its portfolio, sourced from Blackstone, across high-growth markets: Atlanta: Four properties totaling 1,357 units Dallas-Fort Worth: Four properties totaling 1,237 units Denver: Three properties totaling 978 units This acquisition focuses on high-growth Sun Belt and Mountain regions, characterized by relatively newer assets with attractive pricing. Alec Brackenridge, EQR’s Chief Investment Officer, noted the strategic advantage of acquiring eight-year-old assets at costs below new construction, reflecting a keen valuation strategy amidst evolving market dynamics. Implications for Florida Multifamily Investors: For leading Florida multifamily investors and asset managers such as Topaz Capital, this acquisition signals a notable shift in multifamily valuation metrics. The transition to approximately 5% capitalization rates, versus the previously anticipated 6%, suggests a recalibration in market expectations. This adjustment is indicative of a broader trend where high-growth, liquid markets are commanding premium valuations due to robust demand-supply dynamics. Market Insights: Jay Parsons underscores that while new entrants may encounter challenges like negative leverage, they can anticipate favorable supply-demand imbalances and potential easing of interest rates. The acquisition sets a precedent for valuation benchmarks and investment strategies, particularly in prime growth corridors. Equity Residential, with its substantial footprint of approximately 80,000 units across nearly 300 properties, continues its aggressive acquisition strategy. The recent purchase of Trailwinds Grapevine, a 324-unit garden-style community in Dallas-Fort Worth, further exemplifies their expansion strategy. Blackstone’s recent transactions—including a $3.5 billion acquisition of Tricon Residential and a $10 billion acquisition of Apartment Income REIT Corp (AIR Communities)—underscore a vigorous investment climate, adding 76 multifamily communities to its portfolio. Strategic Takeaway: The heightened investor sentiment and strategic acquisitions underscore the Sun Belt and Mountain regions as pivotal hubs for multifamily investment. For Florida-based investors and asset managers, this evolution signifies both an opportunity and a call to refine valuation approaches in alignment with emerging market trends. #RealEstate #EquityResidential #TopazCapital #Blackstone #Multifamily #MarketTrends #FloridaCRE

LA Weekly RE Roundup: ✔ Irvine Company has secured a $150 million fixed-rate loan from Bank of America (BAC) to refinance Westwood Gateway II, a 549k SF office tower on Los Angeles' Westside. Debt sources are increasingly but cautiously becoming more active on prime office product with strong rent rolls. ✔ WeWork has filed to assume two more LA leases, one at the Pacific Design Center at 750 N. San Vicente Blvd. in WeHo and another at LBA Realty’s 1150 S. Olive St. in the South Park neighborhood of DTLA. ✔ After its monumental $700M purchase of the former Westside Pavilion, UCLA plans to buy another life sciences property, near LAX. The 170k SF building at 5210 Pacific Concourse Drive is 43% occupied by Siemens, which is slated to vacate completely when its lease ends in October, according to marketing materials for the property. Santa Monica-based Karney Properties Co. is the owner, public records show. ✔ Sherman Oaks based FloQast is assumed at a post-money valuation north of $1.6 billion. They closed a $100 million series E round this month and are now charging towards an IPO. ✔ Worthe Real Estate Group starts a 30 acre redevelopment in Burbank. #cre #commercialrealestate #deals #financing #office #ipo

Performing rent comps is the most time-consuming aspect of underwriting a multifamily investment. If a business plan leaves rents unchanged rent comps may be less important. However, the bulk of deals we look at have a value-add component where we renovate the property and improve management to capture higher market rents. When underwriting increased rents, rent comps are needed to justify the increases based on the market. Beyond rent increases, rent comps also support a lease-up business plan, or a situation where the subject property’s vacancy rate is higher than the market vacancy rate by showing that strong occupancy is possible at target rents – of course the lower the rents, relative to the market, the easier it will be to fill the property; the higher the rents, the tougher it will be. To learn about more topics like rent comps, take a look at Rob Beardsley's guide to analyzing multifamily acquisitions by clicking the link below. #multifamilyunderwriting #lonestarcapital

🔑 A major move in the multifamily market! Equity Residential is set to acquire 11 apartment complexes from Blackstone for $964 million, adding over 3,500 units to its portfolio in key growth markets. This acquisition is not just the largest by a public REIT in seven years, but also a strategic bet on the recovery of rents and property values. 🏙️ #MultifamilyInvesting #GrowthMarkets

S&P 500-listed Equity Residential acquired 11 apartment communities in Atlanta, Dallas/Ft. Worth and Denver from entities of Blackstone for $964 million. Together, the properties are an average of eight years old and encompass 3,572 units. In Atlanta, Equity Residential acquired four properties with 1,357 apartments, while it picked up four properties with 1,237 apartments in Dallas/Fort Worth and three properties with 978 apartments in Denver. Equity Residential and Blackstone did not immediately respond to requests for specifics on the portfolio. The transactions, which are subject to customary closing conditions, are expected to close in the third quarter. #Atlantarealestate #AtlantaRealtors #Atlantahomes