Skip navigation

11 Must Reads for Real Estate Investors (Sept. 22, 2023)

Bisnow analyzed the rising trend of “dequity” placements—a mix between debt and equity—that some real estate investors are now using. W.P. Carey is moving forward with a two-part plan to exit the office sector. These are among the must reads from the real estate investment world at the end of the week.

  1. Dequity: A Debt, Equity And Capital Markets Explanation “A marriage of ‘debt’ and ‘equity,’ which are generally regarded not quite as opposites, but certainly distinct financial terms, this new word is a head-scratcher at first. But a peek beneath the surface unveils its familiarity as well as its utility.” (Bisnow)
  2. W.P. Carey to Exit Office Sector “The company’s board of directors approved the two-part plan this week—59 office properties will be spun off into a new publicly traded REIT named Net Lease Office Properties, or NLOP, a move which is expected to close by November this year. The remaining 87 assets will be disposed via a sale program, with all transactions expected to close by January 2024.” (Commercial Property Executive)
  3. Distressed CRE loans surge nationwide “Of the nation’s top 20 markets, the distress rate of commercial mortgage-backed security loans last month was 7.2 percent, according to KBRA, after rising in 15 cities.” (The Real Deal)
  4. Apollo’s Zelter Sees Opportunity in Commercial Real Estate Lending “Commercial real estate values are plunging and many borrowers are struggling, but Apollo Global Management Inc. co-president James Zelter sees an opportunity in the downturn.” (Bloomberg)
  5. As the Climate Changes, Pressure Is Growing to Make Buildings More Efficient “The penalties are stiff: $268 for every metric ton of carbon dioxide above the allotted limit, which studies estimate could amount to $200 million per year in penalties for some buildings. And it’s a two-tier process, with initial caps being rolled out in 2024 and stricter ones looming in 2030, when fines could jump to $900 million per year for buildings that aren’t in line.” (The New York Times)
  6. Real Estate May Have a New ‘Predatory’ Problem “The loans often offer cheaper interest rates than comparable traditional loans and are accessible to borrowers with poor credit. However, experts say that the space is plagued with conflicts of interests that can result in borrowers facing millions of dollars in fees that can be difficult to pay off and loan servicers capitalizing on defaults.” (The Messenger)
  7. More Investors May Get Access to Private Markets. Some Are Raising a Red Flag “But some advisors are raising a red flag, saying that while changes are needed to the accredited investor rules, those proposed under the House bill would make a big swath of investors more vulnerable to losses or fraud.” (Barron’s)
  8. Favor fluency: Paxton and Paul spoke real estate “One such relationship dominated the Texas political world last week as Attorney General Ken Paxton faced an impeachment trial over his ties to Austin real estate investor Nate Paul. To be clear, Paxton was acquitted of all 16 charges, from abuse of office to bribery. But the fact that the Texas House of Representatives impeached him, and that a Senate trial happened at all, is a stunning outcome for a top Republican in a GOP-dominated legislature.” (The Real Deal)
  9. Experts Warn Sunak’s Net-Zero Rethink Will Cause Real Estate ‘Untold Disruption’ “Plans to scrap requirements on landlords to upgrade the energy efficiency of their properties will cause ‘untold disruption’ on real estate's net-zero ambitions, developers and sector leaders have warned, following the prime minister's decision to water down UK environmental policy.” (CoStar)
  10. CMBS Loan Modifications Reach $5.6B So Far This Year “Loans tied to offices make up about 73% of the extensions, according to Trepp. Retail-associated loans were a distant second at 17%, and very few loans associated with lodging or industrial properties have been extended this year, representing about 1% each.” (Bisnow)
  11. Amazon’s New Challenge: Bargain Retailers That Are Playing a Different Game “While Amazon has for years contended with challenges from rivals such as Walmart and Target, Temu and Shein, both of which have Chinese roots, are tapping into demand for low-price items that aren’t delivered quickly.” (The Wall Street Journal)
Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.