Weekend View - September 15, 2024: Risk-Adjusted Returns in Real Estate Investing
Release Date: 09/15/2024
Weekend View - October 6, 2024: Estate Lending Opportunities Amid the CRE Debt Maturity Wall
Multiple Perspectives
In this episode of Multiple Perspectives, host Daniel Brereton explores the current state of the U.S. commercial real estate (CRE) market, focusing on the approaching "maturity wall" in 2024. The episode highlights key opportunities for investors as the market faces nearly $950 billion in loan maturities, with a peak of $1.26 trillion projected by 2027. Key insights include how the Federal Reserve’s recent rate cuts are creating favorable lending conditions for borrowers and why this shift benefits real estate investors, especially in terms of senior loan opportunities through...
info_outline
Weekend View - September 29, 2024: A Risk-Adjusted Return Case Study
Multiple Perspectives
In this episode of Multiple Perspectives, Daniel Brereton breaks down the concept of risk-adjusted returns and explains how it applies to private real estate investing. Daniel revisits key metrics from previous episodes, focusing on how to evaluate potential returns relative to the inherent risks of an investment. He also discusses how EquityMultiple assesses risk-adjusted returns when comparing investment opportunities, particularly in private markets, where volatility is less observable than in public markets. Using a case study of the Norwalk Portfolio Senior Loan, Daniel illustrates how...
info_outline
Weekend View - September 15, 2024: Risk-Adjusted Returns in Real Estate Investing
Multiple Perspectives
In this episode of Multiple Perspectives, host Daniel Brereton dives into the concept of risk-adjusted returns and its application in real estate investing. Investors often focus on the potential returns of a deal, but understanding how to factor in risk is crucial to making informed investment decisions. Daniel walks through the differences in how returns and risks are measured in public vs. private markets, and why it’s essential to go beyond just looking at internal rate of return (IRR) figures when evaluating real estate opportunities. Risk-Adjusted Returns: Comparing investments...
info_outline
Weekend View - September 8, 2024: Opportunities in NYC’s Multifamily Market
Multiple Perspectives
In this episode of Multiple Perspectives, Daniel Brereton discusses the current trends in New York City's multifamily real estate market, highlighting the sector's resilience amid higher interest rates and economic uncertainty. He explores the exciting opportunities emerging from distressed asset acquisitions as rising rates and valuation corrections present significant discounts. Daniel also provides insights into why demand for rental housing in NYC remains strong and how investors can benefit from entering the market during this transitional phase. This episode is a must-listen for...
info_outline
Weekend View - September 1, 2024: Understanding 1031 Exchanges
Multiple Perspectives
In this episode of Multiple Perspectives, Daniel Brereton delves into the intricacies of 1031 exchanges, a powerful tool in real estate investing. Often misunderstood, the 1031 exchange allows investors to defer taxes by selling and replacing a property with a like-kind asset. Daniel provides a thorough overview, discussing its origins, how it has evolved, and the specific requirements investors must meet today. This episode is essential for both seasoned investors and those exploring real estate tax strategies, offering insights into the practical application of 1031 exchanges in the current...
info_outline
Weekend View - August 25, 2024
Multiple Perspectives
In this episode of Multiple Perspectives, Daniel Brereton dives into the essential tools of forecasting and pro formas in commercial real estate (CRE) investing. He explains how these elements are crucial for evaluating potential investment opportunities and managing risks effectively. Listeners will gain insights into how EquityMultiple arrives at projected returns for its offerings and what to consider when assessing these projections in the current market environment. Key Topics: The Role of Forecasting in CRE Investing: Importance of predicting future market conditions, rental income,...
info_outline
Weekend View - August 11, 2024
Multiple Perspectives
In this week's episode of Multiple Perspectives, Daniel Brereton provides an overview of the four core types of commercial real estate properties and dives deeper into the specifics of small-bay industrial properties. He discusses the growing demand for these properties, particularly in central Florida, and highlights a current investment opportunity available on the EquityMultiple platform. Key Topics: Types of Commercial Real Estate Properties: Overview of multifamily, industrial, retail, and office properties. Differentiation of subtypes within each category. Understanding Small-Bay...
info_outline
Weekend View - July 28, 2024
Multiple Perspectives
In this week's episode of Multiple Perspectives, Daniel Brereton discusses the recent market volatility, the impact of persistently high interest rates, and the latest economic data. He also highlights the positive signs in the economy despite the challenging investment environment and shares current real estate investment opportunities available through EquityMultiple. Key Topics: Market Volatility: Recent whipsaw in major indexes with Nasdaq experiencing its worst day in several years. Tech and megacaps selling off while small caps show resilience. Impact of High Interest Rates: ...
info_outline
Weekend View - July 21, 2024
Multiple Perspectives
In this week's episode of Multiple Perspectives, Daniel Brereton provides an in-depth analysis of the current state of the capital markets, particularly focusing on the impact of rising interest rates and changes in the lending landscape on commercial real estate. Daniel highlights the opportunities available in the CRE debt market and discusses EquityMultiple's strategic approach through the Ascent Income Fund. Key Topics: Impact of Rising Interest Rates on Commercial Real Estate: Effects of the rise in interest rates over the past two years. Changes in real estate property valuations, cap...
info_outline
Weekend View - July 14, 2024
Multiple Perspectives
Host Ashley Shumaker delves into the critical issue of rising insurance premiums due to extreme weather events and their impact on commercial real estate investors. Ashley discusses how EquityMultiple proactively manages these risks through strategic investment locations, a rigorous underwriting process, and an updated EMIP Investment Framework. Key Topics: Extreme Weather and Rising Insurance Premiums: The increasing frequency and severity of events like atmospheric rivers, superstorms, and wildfires. Significant insurance premium increases in high-risk states like California, Florida, and...
info_outlineIn this episode of Multiple Perspectives, host Daniel Brereton dives into the concept of risk-adjusted returns and its application in real estate investing. Investors often focus on the potential returns of a deal, but understanding how to factor in risk is crucial to making informed investment decisions. Daniel walks through the differences in how returns and risks are measured in public vs. private markets, and why it’s essential to go beyond just looking at internal rate of return (IRR) figures when evaluating real estate opportunities.
- Risk-Adjusted Returns: Comparing investments requires accounting for risk. For example, government bonds offer lower returns with minimal risk, while stocks like GameStop present high volatility.
- Public vs. Private Markets: Public market returns use compound annual growth rate (CAGR), while private real estate investments are measured by internal rate of return (IRR).
- Assessing Risk in Real Estate: In private commercial real estate, risk isn’t measured the same way as in public markets. Key factors to assess include the deal’s debt coverage, cap rate spreads, and market conditions.
- Look Beyond IRR: An investment’s return potential must be weighed against its risk, factoring in the quality of the property, sponsor, and market conditions.
Explore EquityMultiple's offerings and learn more about real estate investment opportunities. Sign up today at equitymultiple.com to receive our upcoming deal announcements.
For any questions, feel free to contact our Investor Relations team at ir@equitymultiple.com.
risk-adjusted returns, real estate investing, IRR, commercial real estate, private markets, public markets, debt coverage, investment risk, return potential, EquityMultiple