Two notable reports by the WSJ on the shakeout/recovery in commercial real estate post-pandemic. 1) “Sam Zell, who made a fortune buying distressed commercial properties, isn’t finding many bargains these days. Instead, the storied real-estate investor is doing something he usually avoids: following the pack & spending big on something safer…..Mr. Zell recently purchased Monmouth Real Estate Investment but couldn’t drive as hard a bargain as he had in many previous distressed deals. The all-stock deal reached in May is valued at more than $18 a share, a near-record for Monmouth stock. The 79 year-old’s more conventional investment strategy is the latest sign the pandemic hasn’t produced the distressed opportunities many investors expected. Hotels, malls, & other properties have suffered enormous declines in revenue. But few owners have been forced to sell at steep discounts thanks to government stimulus programs & the Fed’s easy money policy.” 2) A brief mention of Kite and Retail Properties of America tie up.
Winners and losers in CRE assets will be driven by better data. Inveniam.io delivers monthly price discovery on private assets like CRE. RPA driving up to date data on historical asset performance and current state of the Asset will drive transaction volume.