Today’s show is with guest Sean Burton, Chief Executive Officer of Cityview, a seasoned institutional private equity professional in multifamily real estate. Sean shares insights gained from over 20 years running Cityview that have spanned the Great Financial Crisis of 2008+ and the lessons he learned successfully navigating that downturn.
I reached out to Sean to ask him to guide me through an article he wrote, ‘Multifamily Reckoning: Repricing Risk Amid Higher Interest Rates’, one of the best written articles I’ve seen on the topic for a while – see link at the bottom of this page.
In our discussion, Sean sheds light on the challenges faced by the industry, especially with the rapid rise in interest rates and the aftermath of the Covid pandemic. His approach, rooted in hands-on experience and strategic vertical integration, offers a fresh perspective on navigating these challenges.
What you'll learn from today's episode is how successful sponsors remain close to the real estate through diligent hands-on management – an observation we are increasingly hearing from sponsors best positioned to capitalize on the distress caused by those, now facing existential challenges, who have simply outsourced this crucial role.
You’ll hear how cap-rate compression in secondary markets reveals how to separate the winners from the losers in multifamily, what are the real multifamily fundamentals, and a discussion about rediscovering Alpha, what it is, and how it will determine the winners who will emerge from the current cycle.
You’ve heard about all the institutional capital sitting on the sidelines. Sean Burton at Cityview is among those with that capital, patiently waiting in the dugout for their turn to play.
Sean's insights, backed by partnerships with giants like Blackstone and Blackrock, provide a roadmap for investors in this ever-evolving market. Prepare to be enlightened by someone who has not only witnessed but also actively shaped the multifamily real estate market's trajectory.
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In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our YouTube channel here.
In today's commercial real estate news update with guest Dave Saxe of Calvera partners, we cover these topics and articles:
https://www.reuters.com/markets/us/fed-registers-gains-powell-may-take-lay-low-approach-2023-08-25/
https://www.investmentnews.com/its-time-to-start-looking-at-private-real-estate-again-241004
https://www.ft.com/content/2d304e88-f99e-4b3f-bc39-0debd937675b
Today’s show is with guest Henry Lorber, distressed real estate debt expert and one of the only people you will likely come across whose experience goes back so far he remembers the REIT downturn of the 1970’s!
I contacted Henry because he was quoted as saying that ‘Crowdfunding for real estate is a disaster waiting to happen’ in a recent Real Deal article (see link at the bottom of the page) and, rising to the bait, I figured such a statement could not go unchallenged.
Apart from our discussion on that topic (Henry’s approach comes from his classic institutional perspective) I discovered that he has deep experience in commercial real estate banking and finance going back even before my time (the early middle ages).
What you’ll learn today is in what ways ‘crowdfunding’, as a term used to describe ‘general solicitation’ or online syndication in general, can lead to misinterpretation of this industry. Plus you’ll also hear insights firsthand from someone who has lived through more real estate downturns than anyone else you likely know.
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In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our YouTube channel here.
Each week I look at three of the top stories dominating the news, this week with my regular guest, Dave Saxe of Calvera Partners and I cover:
1. Increasing talk of the impact of rate hikes on multifamily
https://www.cityview.com/urban-land-multifamily-reckoning-repricing-risk-amid-higher-interest-rates/
2. More consolidation from the world of real estate crowdfunding platforms
https://therealdeal.com/national/2023/08/15/yieldstreet-closes-in-on-deal-for-cadre/
3. Banks increasing their charge offs
https://www.globest.com/2023/08/10/banks-increase-their-cre-loan-charge-offs/
Everything's sellable. In today’s market, it's just a question whether seller expectations are reasonable.
My guest today, Jon Winick, CEO of Clark Street Capital a bank advisory and asset disposition firm specializing in loan sales, both performing and non-performing, explains how elevated interest rates are posing challenges for banks on how their loan portfolios are sold.
As defaults rise and a potential banking crisis looms, a hurdle the industry faces is in balancing appraised values that are backward looking (mandatory for banks per regulations), with today’s reality – especially as buyers are forward looking in both their underwriting and expectations.
Lenders are treading with caution, meticulously analyzing their portfolios while fully aware of the growing cloud over the commercial real estate markets, particularly office and, increasingly, multifamily.
But it's not all about cautionary tales; it's also about opportunities and understanding the market's pulse. In today’s conversation, Jon emphasizes the essence of realism in the loan sales market, especially when outdated appraisals come into play.
Despite these and other frictional hurdles in finding price equilibrium while balancing buyer and seller expectations, opportunities beckon for investors eyeing real estate through discounted loan purchases.
Join us for a comprehensive look at how banks are navigating the rising interest rate environment as their CRE portfolios tank in value, and learn how to identify opportunity through the markets’ current fog of uncertainty.
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In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our YouTube channel here.
Tune in to hear updates and commentary from Adam Gower Ph.D., GowerCrowd, and David Saxe, Calvera Partners, about the major news stories this past week (week ending August 11, 2023) in the commercial real estate industry:
Stories we cover today:
1. Urban doom loop.
2. New deals on offer at 24% IRR's - you've got to be kidding!
3. Even multifamily is facing peril
Articles we refer to:
https://www.realtymogul.com/investment-opportunity/2485683?sfmc_id=20436034
Tune in to hear updates and commentary from Adam Gower Ph.D., GowerCrowd, and David Saxe, Calvera Partners, about the major news stories this past week (week ending August 4, 2023) in the commercial real estate industry:
Stories we cover today:
The real estate market is witnessing a shift where many stakeholders are grappling with the changing dynamics. One of the significant concerns is the valuation of properties. Many banks are hesitant to offload their real estate collateralized non-performing loans (NPL) due to uncertainties in their values. This uncertainty is causing a delay in the stabilization of the bid-ask spread, with some predicting stabilization won’t come much before 2025.
Office spaces are undergoing a transformation and with the rise of hybrid work models, there's a need to rethink the utility of office buildings. Some suggest converting parts of these buildings into residential spaces, while others believe that certain structures might need to be demolished.
Apartments, on the other hand, have seen a surge in supply in some regions. However, the challenge lies in the maturities on bridge loans or apartment debt taken with variable rate loans. Many of these were financed without anticipating significant world changes, leading to potential financial pitfalls. That said, while distressed deals are emerging, they are not (yet) in the volume that one might expect.
Discover the transformation of office spaces, the intricacies of distressed deals, predictions for market stabilization, and the implications of the A/B loan structure in this conversation with workout specialist, Bert Haboucha at Atlas Capital Advisors.
Whether you're an investor, a seasoned professional, or a sponsor, this episode is designed to equip you with the knowledge to make informed decisions. Don't miss out. Tune in now and stay ahead of the curve in the commercial real estate world. Your next big opportunity might just be a click away.
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In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our YouTube channel here.