During the three-year period spanning 2020 to 2022, Signature Bank issued $13.4 billion in loans on New York City buildings, according to property research company PincusCo. No other bank issued more commercial mortgages in the city.
After starting small, Wander REIT has a goal of amassing $200 million worth of vacation rental assets by the end of next year.
Recent surveys indicate a high demand over the next two years from family offices for illiquid assets, including real estate.
In uncertain economic environments, institutional and foreign commercial real estate investors often revert to the safety of the biggest American cities.
MSCI’s Jim Costello and Alexis Maltin warn that while a failure on the scale of the Great Financial Crisis is unlikely, there are signs that trouble may be brewing for real estate investors with upcoming maturities.
Full-service hotels in vacation destinations are attracting equity from high-net-worth investors who are joining deals as limited partners.
Despite near-term challenges, industry participants see significant growth opportunities for real estate interval funds over the longer term.
Recent MSCI data shows trouble brewing in the capital markets even before this month’s bank failures.
Last year marked a record for global sales of real estate secondary transactions. Asset managers expect 2023 to beat that figure.