Who are the major players in this space? Is there overlap with multifamily development LPs? Do any vanilla build-to-core investors play in the space (PGIM, MetLife, etc)?
Hard to find anything on Google besides Bigger Pockets-tier BS. Thanks.
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Hi Analyst 2 in RE - Comm, don't worry, the WSO Monkey Bot is here.... I'm hoping one of these links will help find your answer:
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Bump
I don't know anything about this space, but my thought is that big institutions like PGIM and Metlife wouldn't be big players in condo developments because they lack consistent cash flow. I would think this product type would attract more HNW/foreign capital. Interested to hear more from someone with knowledge of this sector as well.
Condos have different LP participants compared to those in MF deals. MF deals do tend to have those more "conservative" LP participants that are life cos, asset managers, etc. MF deals provide steady cash flow, while condo developments carry a lot more risk.
PE shops probably take more of this space just because the big LPs have a lot of money they need to invest and they want to do it efficiently. It may take several years for a condo development to be done so they don't want to lock up a lot of cash there, especially if the market has the ability to change drastically within a few short years.
What luxury condos was CIM an LP in?
Nice, thank you. Any idea on who’s capital they’re investing typically in these types of deals?
. double post
While both condos and MF are, of course, housing, it’s pretty incredible how much riskier it is to build condos. Lots of developers in NYC that kicked off condo projects in 2013 and 2014 are still holding onto unsold inventory from those buildings. Much of that is due to oversupply and some developers would’ve made a killing had the market been more balanced, but such is the world we live in. Meanwhile, rental buildings in Manhattan are 98% occupied.
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