NETL - One Man's Trash Is Another Man's Treasure: Emerging Opportunity In Real Estate Credit
2024-05-22 06:22:21 ET
Summary
- The past three years have disrupted real estate investing, with rising interest rates slowing transaction activity and causing declines in asset values.
- A "higher for longer" interest rate scenario is troubling the market as buyers and sellers struggle to see eye to eye.
- Mounting redemptions in nontraded REITs have created opportunities for other market participants to acquire assets at attractive prices and source capital.
- SL Green and Goldman Sachs are two examples of real estate investors launching private real estate credit funds to capitalize on banks' unwillingness to lend.
The past three years have disrupted real estate ( VNQ ) investing more than any other period since the Great Financial Crisis. Let’s first review a timeline of the past several years’ events leading to the main topic of this article. The post pandemic era saw a period of rapidly declining interest rates, precipitated by an aggressive Federal Reserve, combined with investors’ flight to risk free assets. The result was a significant, rapid decline in the ten-year treasury yield, nearly reaching zero....
One Man's Trash Is Another Man's Treasure: Emerging Opportunity In Real Estate Credit