Results for ‘Uncategorized’ category

Why are there vacant buildings for sale?

Lately, have seen a bunch of vacant apartment buildings come on the market for sale. Normal investors don’t buy vacant buildings, because banks generally won’t lend on them. So, these vacant buildings are being marketed to cash buyers who would presumably renovate and re-tenant them. Since a sale strategy that dramatically limits the pool of

Why we’re keeping an eye on oil pricing

One of the mysteries of the present growth cycle is how rents have continued to grow at a rate exceeding wages. One partial / possible explanation is that, in contrast to previous growth cycles, the advent of US-based fracking has kept energy prices surprisingly low, leaving more cash in the pockets of potential renters. So,

Thinking through investing in a hot market

As we look at making deals late in this expansion phase, I have been doing a lot of thinking about what, exactly, we risk by buying high. After all, we are (effectively) permanent holders, so it’s not exactly clear why we should care about prices going down after we acquire an asset. But I am

Will the glut downtown affect Adaptive?

…and we’re back. Have been getting a lot of questions re the high apartment vacancy rate in DTLA (about which Curbed wrote the other day). Here’s the situation: As usual for this stage of the cycle, developers have overbuilt downtown (they always do this, because DTLA is one of the few neighborhoods in which it is

Predicting the next recession

Right now, as an investor, the key question is: “How much longer does the present growth cycle have to run?” If we’re approaching the end of this cycle, then investors ought to batten down the hatches, de-lever, horde cash, and get ready to bargain-hunt. If, on the other hand, we’re still looking at 2, 3,

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