So, About That Distressed-Asset Feeding Frenzy... The back half of this year promises chances for private equity to make opportunistic real estate plays, but it won’t be as straightforward as the recovery from the global financial crisis.Two running themes in the real estate market in the early portion of this year are likely being monitored by private equity investors looking for a post-pandemic windfall: the anticipated wave of distressed-asset sales and the persistent discounts at which some public real estate investment trusts are trading relative to their net asset values. Private equity managers like Blackstone were able to take advantage of post-recession conditions over a decade ago to buy billions of dollars’ worth of commercial property. In late 2010, 20% of all commercial property sales were distressed-asset deals, according to Real Capital Analytics. Without being beholden to risk-averse shareholders, the thinking goes, private equity can go against the grain to place bets when others are playing defense. Billions of dollars are being raised for that purpose at this very moment, The Wall Street Journal reports. There might be as much as $200B in capital ready to invest in distressed assets, according to CoStar Risk Analytics. But conditions are quite different this time around. “The debt market is extraordinarily liquid, whereas it was frozen during the GFC,” JLL Senior Managing Director Steve Hentschel told Bisnow. “Hands won’t be forced the way they were before.” Because capital markets weren’t the root cause of this recession, its impact varies wildly depending on the sector. And because the recession changed the way society lives and operates, distress for an asset might be more of a permanent condition, which makes the job of actually turning around the property a much more arduous task. Keep reading on the photos * * * #commercialbroker #commercialrealestate #commercialnews #crenews #multifamily #multifamilynews #multifamilyinvestor #multifamilyinvestments #officeinvestments #miamicommercialrealestate #commerciallistingagent #listingagent #listingbroker #ellimancommercial #floridacommercialrealestate #floridacommercialmarketplace (at West Palm Beach, Florida) https://www.instagram.com/p/CKpBNwLJfj2/?igshid=wmjvxesqqa1p
