Deal of the Era

Question

I was reading about JMB Realty and how they had the defining/biggest deal of the 1980's real estate boom (Cadillac Fairview for $2.6 billion). It got me thinking, what has been the biggest or lost defining deal (or development) of this real estate cycle?

The book mentioned how deals in the 90's were less flashy because the degree to which leverage could be used was constrained because of bank losses from the previous decade. Do you feel this is the case in this cycle as well? Do you think that there has not really been a defining deal because of this?

Mark Queban · Accepted Answer

Hudson Yards

drtymny · Answer

That's where Barry Sternlicht got his start. They were the place to be in the 80's.

Agree with @blank112" that Hilton has turned out to be a massive success. The BX/EOP deal was pretty solid as well.

Stuyvesant was massive but right after that Starwood bought a $5.3b multifamily portfolio as well so it wasn't completely out there by itself.

Biggest loser of this cycle was probably HNA Group.

Pisgah · Answer

I'll go with the deal that Barry Sternlicht, Jon Gray, Tom Barrack, and Wayne Hughes each poured billions into: the institutionalization of US single family housing. The final chapter hasn't been written on this trade/business, but I expect that 20 years from now, this is what people will be talking about when they discuss RE investment in the post-crisis era.

bolo up · Answer

+1 sb. I like this answer. Individual developments are big for the markets they are in, but I think of an "era" defining deal as a deal that epitomizes a cycle or fundamentally changes how RE is done. For example, REITs in the 90s, or BX's EOP and Hilton privatizations in the '00s. Based on my definition, institutional SFR ownership is an example of an "era" defining investment with the creation of a new multi-billion $ asset class capturing a secular trend towards increased rentership.

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Deal of the Era

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Deal of the Era

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