Monthly Archives: October 2018

Opportunity in the Apartment Market for Family Offices

I like Antonio’s article and hope that more family offices invest in multifamily assets. We’ve always enjoyed finding commercial real estate financing for family offices, but the challenge has been the locations. Antonio suggests that they should look in secondary and tertiary markets but what we’ve found is that the family offices tend to start off investing in locations near their home base with a GP partner before heading into a smaller market which makes it more difficult. We’d love to see more commercial real estate news saying that family offices are pouring into the space but only time will tell if they want to pick up multifamily assets and commercial building loans in markets they don’t know well.
– Adam Horowitz, Principal of Lever Capital Partners and President of the Real Estate Capital Alliance

Click here to read Antonio’s article on why family offices shouldn’t overlook the apartment market.

Reinvention of the Ground Lease Business

We see a lot of ground leases when looking at deals in larger markets like New York City and San Francisco, but less so when looking at commercial real estate loans in Las Vegas or St Louis. I think Jay has hit upon a smart market strategy as there aren’t a lot of national players going after this business. It makes attaining commercial real estate loans a bit more challenging due to the ground lease, but good lawyers usually solve any issues surrounding it as long as the lease is fairly long-term. We’ve had a few deals where the commercial real estate mortgage interest rates ticked up a bit for these types of assets where we’re only financing the building but the deals have all closed.

– Adam Horowitz, Principal of Lever Capital Partners and President of the Real Estate Capital Alliance

Click here to read more about Sugarman’s thoughts on the reinvention of the ground lease business.

New Approach to Senior Living: Multigenerational Communities

This was an interesting article to read, and I think personally a good idea. The challenge with this idea on senior housing will come from the commercial real estate lending side. The commercial real estate financing business moves pretty slow and they like to see that there are many very similar projects that they can draw from for comps and previous success. We’ve worked on similar projects recently and have seen that attaining a commercial real estate mortgage was more challenging in this sector, although still doable.

– Adam Horowitz, Principal of Lever Capital Partners and President of the Real Estate Capital Alliance

Click here to read more about senior living bridging the generation gap.

Student Housing Trends in 2018

As I speak with some of our Student Housing clients we’re seeing many of the changes that Elliot mentions, particularly in the way they market to perspective tenants. In terms of getting a commercial real estate mortgage from the agencies, that’s still the goal for most borrowers unless there’s a heavy lift on the rehab site in which case different types of capital are needed. As commercial real estate mortgage interest rates rise I think we’ll see some of the weaker borrowers in this space have a harder time making deals pencil out and bigger players like Vesper taking down these assets. The more things change the more they stay the same and Cash is still King isn’t really commercial real estate news to anyone in the know.

– Adam Horowitz, Principal of Lever Capital Partners and President of the Real Estate Capital Alliance

Click here to read more about Student Housing Trends in 2018