Came across a listing for a renovated building yesterday that made me very scared for the potential new owner. To be clear, this was a nicely renovated building, with brand new systems, high-quality finishes, decent taste, etc. And the rents were pretty good – around $2500 for 2 beds with no parking, which, for the
When I speak with potential capital providers, I hear two very different ways of thinking about investing in our projects. The first group of investors thinks about things in terms of a return target. These investors trust us and like what we do. They are concerned about where we are in the real estate cycle
In a recent email to investors in Adaptive Realty Fund 4, I wrote: “In our business, there are three types of variables (of varying degrees of magnitude): Things we can’t control… Things we can control… Things over which we have some, but not total, control…” Spent the rest of the letter discussing the most important
Why do real estate private equity investors sell assets? After all, most private owners of real estate generating really nice cashflow hold forever. And selling forces you to either re-place the capital via a 1031 exchange under duress (eg with a short window) or to pay huge tax bills. So, again, why do the smartest
Spent some time this morning looking back at all the deals we’ve done to see if I could learn anything about how we have historically sourced. Here are the numbers: Total deals done (as a buyer myself or as part of our fee-for-service business): 81 Of the total, number that were brokered: 74 Total number