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Gained a couple extra followers over last 48 hours, and probably more than I should have. With that being said would like to provide some value regarding the private capital markets space
The big are getting bigger with investment strategy open to everything...
AUM amongst the larger shops (Blackstone, Brookfield, Starwood) is growing.
Forces them to look at a wide range of deals core to opportunistic
AUM amongst the larger shops (Blackstone, Brookfield, Starwood) is growing.
Forces them to look at a wide range of deals core to opportunistic
Ex. Blackstone capital ranges from a 10-year sale-leaseback Iron Mountain Industrial Portfolio to land and vacant buildings within a week timeframe
Favored Asset Classes Inc in volume...
Disproportionate interest in favored asset clases creating higher pricing and lower yields in:
- Industrial
- Net Lease
- Self Storage
Disproportionate interest in favored asset clases creating higher pricing and lower yields in:
- Industrial
- Net Lease
- Self Storage
Historically (2015-19) favored asset types accounted for 21% of transaction volumes. Currently (YTD)account for 35%
As mentioned prior to, industrial opportunities with credit and term in core locations are now sub 4% going in yield
Niche Assets growing in popularity...
Due to compressing yields in the favored asset types, investors branch off to find niche assets within:
- Cold Storage
- Data Centers
- Life Sciences
- Seniors Housing
Due to compressing yields in the favored asset types, investors branch off to find niche assets within:
- Cold Storage
- Data Centers
- Life Sciences
- Seniors Housing
2 assumptions on why include:
- expanding flexibility upon advisors/managers to find yield
- supply and demand imbalance as these were not the driving force behind construction permits over the past 5 years
- expanding flexibility upon advisors/managers to find yield
- supply and demand imbalance as these were not the driving force behind construction permits over the past 5 years
As discussed prior to, capital aggressively pursuing cold storage development opportunities both in the debt and equity stack
