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11 Must Reads for Real Estate Investors (Sept. 18, 2023)

With demand driven by the boom in artificial intelligence development, the San Francisco office market is showing signs of life, reports The Wall Street Journal. More than 550 New York office buildings have been identified as candidates for apartment conversions, according to the New York Business Journal. These are among the must reads from the real estate investment world to start the new week.

  1. San Francisco Office Market Shows Signs of Life “Now San Francisco’s office market is seeing progress for the first time since the onset of the pandemic. Company searches for office space in the city are the highest they have been in years. Firms in the growing artificial-intelligence industry are leasing large blocks of space, signaling that the city’s appeal as a tech hub hasn’t evaporated.” (The Wall Street Journal)
  2. More than 550 NYC office buildings identified for apartment conversions “Proponents of office-to-apartment conversions in New York City say that it could potentially solve an ongoing housing crisis, which has continuously pushed monthly rent higher for the average New Yorker.” (New York Business Journal)
  3. Nightingale CEO Put $12M Of CrowdStreet Investor Cash Into First Republic Stocks, Options Weeks Before It Failed “On March 23, Schwartz diverted $12M in crowdsourced investor funds that were to be used to buy the Atlanta Financial Center and instead purchased $6M in First Republic stock and another $6M in First Republic options, Eric Lee, the chief restructuring officer for the entities Schwartz created to raise the funds, told CrowdStreet investors during a webinar Friday.” (Bisnow)
  4. U.S. REIT Valuations Offer an Attractive Entry Point for Patient Investors “Our core REIT coverage is trading at a discount of approximately 25% to our fair value estimate. We estimate that the average REIT within our U.S. coverage is currently trading at a dividend yield that is 126 basis points higher than the historical average.” (Morningstar)
  5. PACE: The chameleon of CRE financing “In strong markets, when construction financing is readily available, competition results in mortgage lenders increasing leverage or accepting more structured capital stacks.  In this case, PACE substitutes more expensive mezzanine financing and/or preferred equity.” (RE Journals)
  6. Are Too Many Contractors Making the Same Bet on Multifamily Development? “Such changes beg the question: if every contractor is making the same play and adding supply during a time of turbulent housing dynamics, how will supply and demand equalize when it comes time to fill all these new structures with tenants? Will every developer profit from their investment?” (Construct Connect)
  7. They bought a piece of a dream home. It turned into a house of cards. “PeerStreet blamed rising rates for its bankruptcy, but its problems went much deeper. Now, some investors are learning that they don't own the loans they bought on the site.” (Insider)
  8. SPECIAL REPORT: Meet The Office Owners Fighting To Save Thousands Of Older Buildings “Over the last three years, the office market has been punched repeatedly, knocked down and nearly counted out. But across the country, thousands of small office owners are patching up their wounds, getting back in the ring and continuing the fight.” (Bisnow)
  9. Rent-to-own service Divvy Homes suffers third round of job cuts in two years “The rising cost of home loans seems to be pummeling a darling of the venture capital business.” (Crain’s New York Business)
  10. Investors Keep Putting Money Into Private Credit “The boom in alternative assets has been a big winner for managers of those funds in recent years, as things such as bespoke corporate lending take share from what has traditionally been the business of banks. However, one recent wrinkle has been a worry that the people supplying money to those funds might not keep pouring in cash as interest rates rise—especially when it comes to wealthy individuals, one of the major sources of growth.” (The Wall Street Journal)
  11. Los Angeles City Council Considers Zoning Changes to Accelerate Affordable Housing Development “The latest idea to make this possible comes in the form of a recent motion introduced by 13th District City Councilmember Hugo Soto-Martinez, which seeks to facilitate housing development in the city’s public facilities zones, as reported by Urbanize Los Angeles.” (
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