Market Opportunities Today

The Opportunity - Timing

The remaining months of 2019 represent a great ‘set-up’ time to purchase real estate at competitive prices – in some cases considerably below the replacement cost of the real estate asset being targeted. 

Well-positioned, low-risk, prime assets in gateway cities such as London, Washington, D.C. and New York will rally ahead of the broader market as a result of increased investor demand. There are other specific opportunities in Australia, Japan and Dubai.

We are looking for the earliest upward rally in values. This will occur when equity capital, credit and lending activity are nearing equilibrium and become reinvigorated. 

The Assets and Deals Available

Single or Portfolio Assets

Investments in single real estate deals - a shopping center, commercial office block or multi- residential complex are available now and below replacement cost and earlier market valuations. 

Shareholdings in Real Estate Corporations

Also available are controlling (or, minority) shareholdings in private and publicly listed real estate-owning corporations. Here the current market price of the shares is significantly below the net asset value of the underlying real estate assets. Some of these portfolios are irreplaceable, in prime locations, well leased and have taken years for their current owners to assemble.

Stressed Real Estate Portfolios

Finally, the optimum deal can often be the purchase of a privately held portfolio of real estate where the owner is under financial stress. Alternatively, a lending bank or financial institution is holding foreclosed real estate assets with a view to an early sale. In such cases vendors will often accept a very low price for an early sale of an entire portfolio. These opportunities abound in the US and UK.

Real Estate Loans - Purchase

Existing real estate loans or mortgage loan portfolios can be purchased well below the face value of the original loan amount. Here the specific individual loan or a bank of real estate mortgage loans may be purchased at a considerable discount.