Head of the Private Real Estate Group James Corl spoke with Institutional Investor about the emerging opportunity within private real estate as the asset class reprices and why this might be the most attractive entry point into private real estate since the GFC.
Institutional Investor: Ready Your Cash: Private Real Estate Might Bottom Out This Year
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The Real Estate Reel: Where are we in the private real estate cycle?
Rising listed REIT valuations, troughing private commercial real estate prices, and rising CRE debt distress are sending a signal that there may be a light at the end of the tunnel for the broader CRE markets.
The Retail Renaissance has arrived in private real estate investing
Values of open-air, necessity driven shopping centers have bottomed; a reality that most investors have yet to fully recognize.
The Real Estate Reel: The potential benefits of blending listed REITs and private CRE
Adding listed REITs at certain levels to a private real estate allocation has been shown to increase performance, reduce volatility, and limit drawdowns.
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Risks of Investing in Real Estate Securities. Risks of investing in real estate securities are similar to those associated with direct investments in real estate, including falling property values due to increasing vacancies or declining rents resulting from economic, legal, political or technological developments, lack of liquidity, limited diversification and sensitivity to certain economic factors such as interest rate changes and market recessions. Foreign securities involve special risks, including currency fluctuations, lower liquidity, political and economic uncertainties, and differences in accounting standards. Some international securities may represent small- and medium-sized companies, which may be more susceptible to price volatility and less liquidity than larger companies. No representation or warranty is made as to the efficacy of any particular strategy or fund or the actual returns that may be achieved.
Risks of Investing in Real Estate. Private real estate investments are illiquid and susceptible to economic slowdowns or recessions and industry cycles, which could lead to financial losses and a decrease in revenues, net income and assets. Lack of liquidity in the private real estate market makes valuing underlying assets difficult. Appraisal values may vary substantially from a price at which an investment in real estate may actually be sold.
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