Latest news with #RealCapitalAnalytics
Bloomberg
11 hours ago
- Business
- Bloomberg
Commercial Real Estate Distress Is Spreading: Credit Weekly
The pain in US commercial real estate credit continues to bubble to the surface after a surge in borrowing costs and the rise of work from home left lenders vulnerable to losses. Delinquencies continue to increase, though the rate has moderated, researcher Green Street said this past week. Distress is also climbing, rising 23% to more than $116 billion at the end of March from a year earlier, data compiled by MSCI Real Capital Analytics show. That's the highest in more than a decade.
Sydney Morning Herald
03-06-2025
- Business
- Sydney Morning Herald
The type of housing cost that just soared 75 per cent in five years
The cost of land for housing development has skyrocketed by 75 per cent over the past five years, pushing homeownership further out of the hands of average potential buyers. The median development site cost has risen from $4.8 million in 2020, to $8.5 million this year, Ray White analysis of Real Capital Analytics data shows. It comes as construction costs remain elevated from their pre-COVID-19 levels, putting further pressure on affordability. Ray White Group chief economist Nerida Conisbee said it would take considerable time before building costs fell enough to make new housing genuinely affordable for average buyers. 'Land costs haven't come back down and what's happening is developers want to build, but they can't do it affordably,' Conisbee said. 'We're not seeing the crashes in the market we previously saw so we're in a kind of holding pattern.' In past economic downturns, rising interest rates would put pressure on some owners of development sites, forcing them into distressed sales at reduced prices. But this time was different, and Conisbee said many had built financial buffers while interest rates were at record lows, and developers have been in a better position to hold onto land. They were also entering into joint ventures when finances were squeezed. Changes to how lenders operated were also helping developers hold on to their assets, banks were holding off on forced sales for struggling developers, and were more likely to offer relief measures. It comes as the federal government aims to deliver 1.2 million homes in five years to address the housing affordability challenge.
The Age
03-06-2025
- Business
- The Age
The type of housing cost that just soared 75 per cent in five years
The cost of land for housing development has skyrocketed by 75 per cent over the past five years, pushing homeownership further out of the hands of average potential buyers. The median development site cost has risen from $4.8 million in 2020, to $8.5 million this year, Ray White analysis of Real Capital Analytics data shows. It comes as construction costs remain elevated from their pre-COVID-19 levels, putting further pressure on affordability. Ray White Group chief economist Nerida Conisbee said it would take considerable time before building costs fell enough to make new housing genuinely affordable for average buyers. 'Land costs haven't come back down and what's happening is developers want to build, but they can't do it affordably,' Conisbee said. 'We're not seeing the crashes in the market we previously saw so we're in a kind of holding pattern.' In past economic downturns, rising interest rates would put pressure on some owners of development sites, forcing them into distressed sales at reduced prices. But this time was different, and Conisbee said many had built financial buffers while interest rates were at record lows, and developers have been in a better position to hold onto land. They were also entering into joint ventures when finances were squeezed. Changes to how lenders operated were also helping developers hold on to their assets, banks were holding off on forced sales for struggling developers, and were more likely to offer relief measures. It comes as the federal government aims to deliver 1.2 million homes in five years to address the housing affordability challenge.
Arabian Post
30-05-2025
- Business
- Arabian Post
Investcorp Capital Divests $550 Million in US Multifamily Properties Amid Market Adjustments
Investcorp Capital, the Abu Dhabi Securities Exchange-listed alternative investment firm, has concluded the sale of 12 multifamily residential properties across five US states for approximately $550 million. The transactions, executed over several months beginning in 2024, encompassed the complete liquidation of a multifamily portfolio. Despite prevailing challenges in the US housing market, including elevated mortgage rates and economic uncertainties, the firm reported securing the exits at a premium. This outcome underscores the resilience of the underlying assets and Investcorp's adeptness in navigating complex investment landscapes. The divested properties, averaging a 94% occupancy rate, are situated in key rental markets such as Atlanta, Philadelphia, Raleigh, St. Louis, Tampa, and Orlando. Notably, the final transaction involved the sale of a 432-unit garden-style apartment community in Atlanta, completed at the end of February 2025. ADVERTISEMENT Interim CEO Mohamed Aamer highlighted the enduring appeal of the multifamily sector, stating, 'Though rent growth has cooled from the highs we saw in recent years, the long-term fundamentals supporting the multifamily sector remain compelling.' He emphasized the firm's commitment to identifying opportunities that deliver value to shareholders. Investcorp Capital's strategic focus on real estate is evident, with nearly 98% of its portfolio comprising industrial or residential properties. According to Real Capital Analytics, the firm ranks among the top five cross-border buyers of US real estate over the past five years.
Biz Bahrain
27-02-2025
- Business
- Biz Bahrain
Investcorp Grows U.S. Industrial Portfolio with Acquisitions in Minneapolis & Baltimore
Investcorp, a leading global alternative investment firm, today announced that it has acquired two industrial portfolios in the Minneapolis and Baltimore markets for a gross transaction value of over $335 million. The acquisitions bolster Investcorp's strategy to expand its presence in key U.S. industrial markets with significant population bases, diversified economies and resilient tenant demand. The portfolios comprise a total of 27 properties and 2.7 million square feet, and include: Minneapolis Industrial Portfolio, a 17-building portfolio spanning nearly 1.9 million square feet; and Baltimore Industrial Portfolio, a 10-building portfolio totaling approximately 881,000 square feet. Yusef al Yusef, Global Head of Distribution at Investcorp, said, 'The evolution of supply-chain logistics over the past several years has continued to support demand in the U.S. industrial sector, which has retained its strong fundamentals throughout market cycles despite broader economic volatility. With e-commerce showing no sign of slowing and a lack of new supply for infill and urban products, we continue to believe in the long-term viability of the asset class.' As of Q4 2024, market rent growth over the past three years averaged 13.4% in Baltimore and 11.4% in Minneapolis, outpacing the average of 9.3% in the top 50 U.S. metropolitan areas, according to Green Street Advisors. Minneapolis is anchored by a diverse economy with robust labor dynamics, hosting 17 Fortune 500 companies including Target Corporation, Best Buy Co., Inc., 3M Company and General Mills, Inc. Baltimore has seen a recent influx of companies due partially to its pro-business environment, and major corporations such as Optum, Inc., Jones Lang LaSalle Inc. (JLL), Under Armour, Inc. and Morgan Stanley & Co. call the city home. 'The Minneapolis and Baltimore portfolio acquisitions offer us a unique opportunity to scale our presence in two markets with highly diversified tenancies,' stated Michael Moriarty, Managing Director and Head of Commercial Acquisitions at Investcorp. 'The properties making up each of these portfolios feature favorable characteristics such as high average clear heights, ample loading docks, plentiful parking and convenient locations proximate to major thoroughfares, employment centers and residential neighborhoods, ensuring they'll be able to serve the needs of a wide variety of tenants. We look forward to continuing to seek attractive industrial investment opportunities in fundamentally strong markets with proximity to established population bases across the U.S.' Investcorp is among the top-5 largest cross-border buyers of U.S. real estate over the past five years, according to Real Capital Analytics. The firm's U.S. real estate strategy invests primarily in the industrial and residential asset classes, with 98% of its portfolio consisting of these property types. Additionally, in 2024, the Investcorp real estate team placed at number 51 on PERE's PERE 100, one of the most prominent rankings of real estate equity investment managers in the industry. Since 1996, Investcorp has acquired approximately 1,400 properties for a total value of over $26 billion.
