What major CRE transactions have still been taking place despite the pandemic?
I'm curious to know what major deals have still been going through in your market, either acquisitions or obtaining financing for new developments.
How are you seen the current economic uncertainty being factored into the sales price/loan terms/buyer & seller motivation, etc?
I've heard that some opportunistic buyers are looking for distressed assets, or looking to buy at same cap rates on depressed rent roll, but I'd think that sellers in a strong position would rather wait it out than sell at a significantly reduced price.
What have you been seeing/hearing?
Many investors are opportunistic right now, and are increasing cash allocations. They're looking for dislocation in pricing, but not much on the market right now. Deals that are were almost closed pre Covid are still being honoured and closed. Processes now are delayed as all buyers are looking for some chipping on price.
Low interst rates in addition to lots of dry powder the last couple months/years. This downturn is causing prices to go down when prices were seeming to get a little high. High construction costs have been an issue in development so firms looking to invest are trying to get good deals on acquisitions with favorable interest rates. Volotility always leads to more investment and transactions. That is why brokerages make a killing during these times. Was reading Robinhood is reaching record new account growth.
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