Invest in multifamily: Blackstone's AIR buy, PwC, and CBRE reports | Brian Dillard posted on the topic | LinkedIn (2024)

When Jon Gray (President of Blackstone) makes public comments, investors should pay close attention. Arguably, there is no real estate investor better informed than JG in our era. 𝗕𝗲𝗹𝗼𝘄 𝗮𝗿𝗲 𝗲𝘅𝗰𝗲𝗿𝗽𝘁𝘀 𝗳𝗿𝗼𝗺 𝗿𝗲𝗺𝗮𝗿𝗸𝘀 𝗝𝗼𝗻 𝗺𝗮𝗱𝗲 𝘁𝗼 Bloomberg 𝘁𝗵𝗶𝘀 𝘄𝗲𝗲𝗸:• “Now is the time to invest in property, as real estate prices have already bottomed out and will soon start to recover.”• “Perception is so negative, the headlines are negative, yet the value decline has occurred."• “I'm not saying there is some V-shaped recovery, but when you get into this bottoming period, that's when you want to move.”• "As investors, you miss it by being overly cautious and I think now is probably a good time before rates come down, to move.”• “Real estate has obviously been hit by two big forces here, one work from home, which has really hit the office sector and the second is rising interest rates, which has caused cost of capital to go up and multiples in real estate to come down.”• “We're seeing cost of capital start to come down, spreads are starting to tighten, and new construction's coming down dramatically, so in sectors that we like - logistics benefiting from e-commerce, digital infrastructure, student housing, hotels - we think there are opportunities.”Steven Silverman ✅

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Wise insights from an industry icon. These are many of the same points I highlighted this morning during a CRE forum broker discussion, and I completely agree that values are likely very close to the bottom and may be starting to trend back up, so those waiting in the sidelines, may find themselves getting passed by (again).

The multifamily commercial real estate field holds promising opportunities for investors seeking better returns.Discovering these opportunities is crucial given the competitive setting and growth potential.Finding valuable investments is essential due to higher profit potential, attractive cash flow, and aligning risk profile.Strategies to source investments include networking for insights, building relationships for credibility and referrals, seeking off-market deals, identifying undervalued assets, exploring emerging markets, and monitoring trends.Employing these strategies helps investors navigate and uncover undervalued assets for improved returns. #multifamilyinvesting #commercialrealestateinvesting #passiveinvesting

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"if you're an investor and you've got capital to deploy, get ready to move because I think the buying window will be relatively short."This was a quote from Richard Barkham, Global Chief Economist for CBRE. He shared his thoughts on the outlook for the economy & multifamily real estate with Blue Lake Capital recently and he had some great takeaways.He shares that there's no shortage of capital targeting the real estate sector and that investors and institutions are gearing up again to buy real estate. He sees an upcoming "zone of advantageous acquisition" coming, and the window will be relatively short. We agree with Richard and we've been busy preparing for that window. That's why we launched our Multifamily Fund and are actively adding assets to the portfolio. If you'd like to find out more and invest alongside of us (I'm personally investing in the fund), visit the link below or just send an email to info@bluelake-capital.com and our investor relations team will connect with you.https://lnkd.in/eunyuaaJ*Open to Accredited Investors Only. This information is not an offering to sell either a security or a solicitation to sell a security.*#multifamily #realestate #investing #passiveincome #realestatesyndicaiton #economy #economicoutlook #realestateinvesting

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Are you considering increasing your investments in real estate in 2024?Encouraging trends in the real estate investment space. A recent survey from CBRE (these guys are the world's largest commercial real estate services and investment firm) indicates a notable increase in investor confidence, with over 60% planning to boost their real estate acquisitions in 2024—up from a modest 16% in 2023. This positive sentiment spans across developers, private equity funds, real estate funds, and REITs, suggesting a broad-based recovery in investment appetite. It's a promising signal for those considering expanding their real estate portfolios.See link below to the full CBRE '2024 US Investor Intentions' survey reporthttps://lnkd.in/dw382BPg #RealEstateInvestment #MarketTrends #InvestorSentiment #commercialrealestate

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There's a common narrative that institutional multifamily investors have been sidelined this year. But that's not entirely true. As a group, they're investing less than they did in 2021-2022, but net acquisitions are still positive in 2023 YTD at +$3.5 billion, according to data from MSCI.Top institutional buyers in 2023 YTD include big names like Cadillac Fairview, TIAA-CREF, QuadReal, FPA, LaSalle, Abacus Capital, Carmel Partners, Covenant Capital, Hamilton Point, Bridge Investment Group, Praedium, Pacific Life and Brookfield, among others.Larger institutional groups have multiple investment arms, and the MSCI numbers above track direct investments where the institution is the buyer ... as opposed to institutions investing in other groups' funds or as LPs. But also remember that just because you read a story about distress in one of an institution's portfolio (i.e. soured office deals), those challenges don't usually extend to the entire portfolio nor do they necessarily hamstring them from new investments through different funds.Will this trend continue going forward? Many want to remain active buyers and have the capital to do so, but it's still unclear how many deals will hit the market that fit the typical institutional criteria for both yield and also product type/location. We'll see. Thoughts?#CRE #multifamily #apartments

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Perception versus Reality… Not all commercial real estate is the same. Read our piece below to find out more:

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In their recent insight, our Global Listed Real Assets team discusses how not all commercial real estate is created equal, and the compelling investment opportunities they are seeing today. Read now:https://mgstn.ly/48mKm8x

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🌐💼 🏢Real Estate M&A: Navigating Shifting Landscapes 🏢💼🌐Real Estate M&A faces moderation due to inflation-combatting monetary policy shifts and interest rate hikes. Commercial real estate is impacted by post-COVID changes in how we live and work.Despite challenges, M&A opportunities emerge as investors capitalise on emerging themes and transform operating models. Capital remains available, with private equity, family offices, and sovereign wealth funds seeking lower valuations and emerging experience-based investments.Certain regions, like Australia, China, India, Japan, and the US, show dynamic M&A prospects, while the Middle East's inward investment rises with new legislation. Exciting times ahead in the real estate landscape!#RealEstate #MergersAndAcquisitions #InvestmentOpportunities #PwCInsights

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One of our philosophies is to learn from our institutional partners and apply the same level of sophistication to our retail investors.The downside to working with institutional investors is the increased due diligence and associated work. However, with the right team and expertise, this isn't a big issue.There's no right or wrong answer, as both institutional and retail investing have their merits. We choose to work with both, as it allows us to be more nimble in our approach, taking on different types of deals based on investor preferences.Click the link in the comments and join our investor list or reach out directly to learn more about Lone Star Capital Star Capital's latest multifamily investment opportunities.#realestateinvesting #lonestarcapital

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