A Land Advisors Company
What I’m Reading Domino Effect: Excellent quote from Josh Barro of New York Magazine on the downstream impacts of commercial buildings falling in value: “This isn’t just a problem for people who own buildings. When buildings fall in value, that’s usually because fewer people have cause to work and shop in them, which corresponds to […]
What I’m Reading Outside the Box: In most distressed investing opportunities, the holding period is relatively short term – buy an asset that is underperforming at an attractive price, bring in fresh capital, lease it up at market rents and then sell. Converting dying malls to another use can take a decade (or more) thanks […]
What I’m Reading Tightening the Belt: Commercial real estate financing for major rehab and construction projects is becoming harder to get and more expensive while leverage is falling. This should eventually lead to lower valuations since real estate falls in value for two reasons: falling income and rising risk premium. However, it also will also […]
What I’m Reading Picked Over: The Federal Government extended the property identification period for anyone in the middle of a 1031 exchange when COVID broke out. However, we are quickly coming up on the July 15th extension deadline and a dearth of debt capital and potential acquisition targets have buyers scrambling. Watch List: So far, […]
What I’m Reading Stressed Out: The largest U.S. banks might lose as much as $47.6B on commercial real estate loans over the next two years in a worst-case scenario, according to the Federal Reserve’s latest stress test results. Cold Comfort: The pandemic has only enhanced the attractiveness of the cold storage sector. See Also: Online […]
Quick programming note: Links will be off for the rest of the week, working on a big announcement later this month. Happy July 4th and we will see you Monday! What I’m Reading Restarting the Machine: In a sign that capital markets are stabilizing, sales of new collateralized-loan obligations hit their fastest pace in early […]
What I’m Reading Stiffed: Huge funds like Blackstone and Colony are defaulting on their hospitality assets. See Also: Blackstone just quit negotiating with the special servicer on one of their limited service hotel portfolios. Lurking: After sitting on a mountain of dry powder for years, Sam Zell is eyeing the type of distressed acquisition that […]
One Big Thing Whenever we tip into crisis mode, people tend to focus on the big, almost-always temporary numbers. For example, at one point OpenTable restaurant bookings dropped to zero in the US and TSA checkpoint data fell to almost nothing as did hotel revenue. These numbers are all at some stage of recovery now, […]
What I’m Reading Mixed Signals: Reviewing rent collection data has become a pandemic pastime for apartment investors, but these reports have varied significantly between outlets, tending to be higher for more institutional surveys like NMHC and lower for services that focus more on mom and pop operators like Apartment List. In addition, some surveys don’t […]
What I’m Reading King of the Road: Over the last decade, urban markets with good mass transit options were at the forefront of economic growth. However, as the economy reopens, the car has become the favored mode of commute transportation and markets that are more car-centric could become more desirable. Booster Shot: Talks in Washington […]