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Over this last bull market cycle, there has been growing interest among retail investors in the real estate asset class. Historically, individual investors have made such investments in one of two forms: 1) publicly traded REITs; and 2) direct property investments. This created a dynamic whereby individuals could access either the most liquid of real estate investments in the form of public equities, or the most illiquid in the form of a direct property investment.

Rarely did retail investors, or their financial advisors, have access to private equity real estate fund vehicles. That’s because investment managers have traditionally targeted institutional investors (e.g. pensions, endowments, life companies, etc.) and structured their...

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Congress has begun to advance the agenda of fundamentally changing the tax code — a cornerstone of Trump’s election platform — creating political motivation for its passage heading into the 2018 midterm elections. While a clearly articulated plan has yet come into focus, much of the conversation has been on the potential impact for home ownership. As it relates to commercial real estate investment, however, what’s good for business is typically good for the real estate that houses it.

The broader agenda to alleviate the corporate tax rate from 35% to 15% positions the U.S. as a very attractive sovereign for businesses to domicile and to expand. This drives the need for places to locate such business, and the hiring...

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In light of the numerous industries that have been upended by new, disruptive business processes in recent years, the recent announcement of LIBOR's demise and replacement by the end of 2021 is being met with reactions ranging from indifference to puzzlement. It's no help that the pundits elaborating on the decision and transition process tend to be economists and government bankers that are providing explanations primarily directed at each other. But what does this change mean for real estate investors?

Commercial real estate borrowers recognize LIBOR as the benchmark typically used to price the interest rate for bridge and construction loans as well as certain securitized loans. A developer's LIBOR-based loan typically resets on a month...

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In the real estate industry, Big Data continues to become an integral part of the investment and operational process. The use of technology to analyze and make sense of large data sets has never been stronger. This is because quality of data directly impacts the quality of critical decision making, helping to mitigate risk. Accordingly, it’s no surprise that real estate companies are increasingly using technology to gain a competitive advantage.

This trend has sparked a wave of innovative new software developed specifically for commercial real estate owners, operators and managers coming to market. Forbes contributor Omri Barzilay summarizes well the different technology startups that are changing the industry for the better. To cap...

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While multifamily properties continue to be a strong performing asset class, generally outperforming most other property sectors, lenders have recently begun to express caution about financing new multifamily projects because of concerns that there is too much inventory. Many banks share the belief that the added supply will cause vacancies to increase and rents to drop, especially those lending into primary and high growth markets, which have been seeing the most investment activity over this last market cycle.

While it is certainly valid to monitor the volume and delivery pace of apartment inventory, banks’ views can often get distorted when their primary data source is their loan portfolio allocation. While lenders will naturall...

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Of all the property asset classes, retail real estate continues to dominate media headlines—and for good reason. Over the past two years, we have seen a number of high profile retail bankruptcies and restructurings including Payless ShoeSource, hhgregg, The Limited and RadioShack, among others. We have also seen once dominant department stores like Sears, Macy’s and J.C. Penney close hundreds of stores to cope with slowing sales.

Fair or not, the term “anchor tenant” has been redefined. Once associated with stability, the term now carries a negative connotation for mall operators and the in-line stores that rely on these anchors to drive foot traffic and sales. However, perception is not always reality. As Kimco Re...

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President Trump’s ‘first 100 days’ in office have had a profound impact on a number of industries as well as the capital markets. This is due in large part to speculation about what policy and regulatory changes are forthcoming. As it relates to the real estate industry, this uncertainty has resulted in a ‘wait and see’ approach among the lending community. Accordingly, this cautionary posture has not materially impacted the ways banks conduct their business on a day-to-day basis.

Regulated banks are still keen to originate loans to repeat borrowers whose businesses and capabilities they know intimately well. In short, the risk appetite for regulated banks remains relatively low. That’s not to say that ...

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