Acquisitions Professionals - Any Activity?

I'm with a developer in Southern California. Haven't put out an LOI since last November. Will obviously peruse a deal if it makes sense, seems like sellers are still hung up on 2021 values. I think they'll come around in the next couple of months. 

Which is what 70% of aggressive buyers did. Going to be a hard pill to swallow 

Starting to see more OMs from the brokers but the seller/buyer pricing stratification has not corrected, yet. 

I've signed up 3 deals in the last few months, but that's because we're super rifleshot approach and have 2-3 years before we design and deliver any of our projects. I imagine if I was at my old shop doing marketed multi acquisitions I'd be churning through underwriting and not hitting on anything in months. 

Nope, haven't done a deal since the beginning of Q4 last year. Continue to underwrite, but on the MF side LPs want deals that pencil 5.5% caps with 8% cash flow by year 3, and are very specific on the markets they will look at. Tough environment to raise equity.

We've put out a handful of LOIs over the past year and gotten one under contract, but strictly bidding on highly opportunistic, primarily off-market deals. Our development pipeline is also on hold except for stuff that was far enough along to have most of the pricing bidded out.

We have been actively modeling deals that we source off market with a couple going to LOI and pending PSA with rather attractive cap rates. Other than that, we are only looking at assumable debt deals or pref equity contributors at this time. 

About 20 LOI's since the beginning of the year currently have one under contract. 

When we send out an LOI we have already toured it, full UW, comps, talked to third parties (tax, insurance, debt, etc), and discussed at IC. You should be able to move on deals you like within 48hrs. 

How many of these 20 LOI are the typical class C value add garbage multi deals that brokers bombard me with lol

Multifamily REPE. only one deal closed since beginning of q4 across entire country.

Closed one in Q4 - VA industrial in a core market. Motivated seller so got the retrade needed to make the deal.

Have submitted several LOIs this year... Came close on a couple but market is just too sloshy rn.

With core funds and ODCE funds facing redemptions, pricing is under serious pressure. Opp / value funds are liquid because of the close ended aspect but long gone are the days when core accounts stretched for what we'd typically characterize as a value deal.

So what? Frozen market with a lot of stubborn sellers and unincentivized buyers.

Good time to sip drinks in the Caribbean IMO

Developer of core+ assets in Europe and we have placed a handful of bids but in general land is too expensive to hit our return hurdles. Lots of rejections, not sure how others are uw to hit their bids bc they look overpriced (or have low returns or have amazing financing or will go bust idk). Construction costs are coming down but rents aren't moving as far as we would hope despite low/no vacancy. Current strategy is try get land owner into a promote deal. Waiting for some distressed stuff but honestly we have not heard of much yet. Hoping for some Q3 activity. 

Zilch

Industrial and residential development here. Tons of opportunities, most are Vendors who are hanging onto prices from over a year ago. Starting to see discounts on really great real estate, so we are getting aggressive

Value add office & residential - zero deals since Q3 2021.

I'm working like crazy...blood in the water is opportunity! We're mainly office investors so lots of people are looking to quietly unload under distressed circumstances. Also preferred equity or mezz debt in newer office developments that can't refi and need capex to stabilize. On the MF side, there's distress as variable rate deals that traded at 4% caps move underwater as rent growth doesn't pan out like proformas thought. I've been churning out tons of UW in 2023. 

Multifamily acq - haven’t been sending out a ton of LOIs, we’ve mostly been working on the same handful of deals for the past 6-12 months. We’ve actually had a couple deals fall out of contract then went back under contract once we found equity (and with a significant price reduction), one of which just closed. Takes a realistic, motivated seller for sure.