Will Woodworth

Atlanta-based real estate investor Michael Blanchard recently made $150,000 from just three deals using DealMachine’s list-building tool. He achieved this by going very specific with his investment strategy: investing in mobile homes. Michael’s exact strategy involved buying land for mobile home use, buying mobile homes, and putting them on the land with permanent foundations, which allows him to qualify for conventional mortgages. On DealMachine for Real Estate, Michael was able to find a combination of options—from tear-down projects, where he bought the land and put in a new mobile home, to flip projects with existing mobile homes. Michael said that what attracted him to this investing niche was the “simplicity and lack of competition, and lack of barrier to entry” (with mobile homes, you don’t need to qualify for expensive construction loans). The strategy has definitely paid off for him.

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Wells Fargo's strategic decision to acquire space within Hudson Yards, investing over $550 million in the former Neiman Marcus space at 20 Hudson Yards for a retail-to-office conversion, is a testament to the bank's business acumen. This move not only underscores the area's continuing success and vitality as a premier destination for businesses but also highlights this thriving district's adaptability and dynamic nature.   Since its inception, Hudson Yards has been a beacon of urban innovation, transforming the West Side of Manhattan into a bustling hub of commerce, culture, and community. This sprawling development consistently attracts global enterprises, a testament to the potential of urban development. Wells Fargo's decision to expand its footprint here with such a significant investment further underscores Hudson Yards' allure and strategic importance.   The three-story, 400,000-square-foot space, spanning floors five through seven, marks a strategic expansion for Wells Fargo. This move serves their operational needs and revitalizes a key part of Hudson Yards that has remained vacant since Neiman Marcus declared bankruptcy in 2020. The transformation of this space from retail to office use indicates the flexibility and resilience of New York City’s real estate market.   It's fascinating to observe how Hudson Yards continues to evolve and attract substantial investments. As we watch this area grow, it becomes increasingly clear that Hudson Yards is not just a remarkable development project but a significant chapter in the story of New York City. It reflects our city’s capacity to reinvent and reinvigorate itself, drawing industry leaders and innovators from around the globe.   This Wells Fargo acquisition is a clear signal of the enduring confidence businesses have in New York City as a key global hub. As someone deeply involved in the commercial real estate sector, I find it thrilling to witness and be part of the ongoing transformation that developments like Hudson Yards bring to our city’s landscape.   #HudsonYards #CommercialRealEstate #NYCRealEstate #WellsFargo #OfficeSpace #UrbanDevelopment #Manhattan #RealEstateInvestment #BusinessExpansion #EconomicGrowth

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NEPI Rockcastle has reported double digit growth in net operating income (NOI), up 9.4% on a like-for-like basis, with tenant sales having increased by 10% during Q1 2024 versus Q1 2023. All product categories recorded higher sales, except ‘Sporting Goods’ (-2.3%) with the best performing categories ‘Health & Beauty’ (+19%) and ‘Services’ (+18%). Fashion, the largest segment, saw sales increase by 9%: https://bit.ly/3UFjiMx #nepirockcastle #commercialrealestate #europe #realestateinvestment #propertyfund #realestatenews #propertydevelopment #propertyowners #landlords #retailrealestate #assetmanagement #shareholders #investorrelations #propertynews #poland #listedcompanies #JSE

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NOI is a crucial metric for the multifamily industry. We've got a breakdown of how to calculate Net Operating Income PLUS suggestions for how to improve it in today's rental market.

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Rose Hasham AXE COMMERCIAL REAL ESTATE Update on Hospitality Pricing: (Quoting directly from a CoStar News Article and Analytics By Chad Littell below:) Among properties that sold for over $75 million with reported cap rates: -the average transaction size was $367 million -garnered a 7.6% cap rate Host Hotels & Resorts purchase of 1 Hotel and Embassy Suites in Nashville, Tennessee, exemplifies this trend. Host Hotels & Resorts acquired the 18-story luxury hotel and the 30-story Embassy Suites by Hilton, totaling 721 rooms, for $530 million, or $735,090 per key, at a 7.4% cap rate. Starwood Capital Group, Crescent Real Estate LLC, and High Street Real Estate Partners were the sellers. Host Hotels & Resorts, led by CEO Jim Risoleo, has been actively expanding its portfolio, having recently acquired the Turtle Bay Resort in Hawaii from Blackstone for about $680m, adjusting for key money. This follows a pattern of strategic purchases by the company. In Phoenix, Blackstone sold the Arizona Biltmore Hotel  to Henderson Park Capital Partners for $705 million, or just over $1 million per key. After its 2023 renovation, this Waldorf Astoria Resort fetched a 7.5% going-in yield. Deals that once saw yields between 3.25% and 3.5% now range from 5.25% to 5.75%. However, unique assets with compelling stories or prime locations can still achieve cap rates below 5%. The top end of the hospitality sector has also seen cap rates climb about 200 basis points, going from the mid-5% range to the mid-7% band for select deals. The Arizona Biltmore's cap rate of 5.6% in 2018 was similar to the 2019 sale-leaseback of The Bellagio at a 5.75% cap rate or the 5.3% cap rate paid for the Hotel Amarano in Burbank, California, that same year. #hospitalityinvestmentsales #REITs #privateequity #commericalrealestate #hospitalityassets #institutionalinvestors #commercialrealestate #womenincre #axecommericalrealestate #rosehasham #hosthotelsandresorts #blackstone #starwoodcapitalgroup

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Fresh off the press - 2024 Q3 #TampaBay Industrial Report After enjoying a multi-year hot streak, Tampa's industrial market is beginning to cool down. The current vacancy rate has surpassed the 10-year average of 5.0%, while asking rent gains are returning to pre-pandemic norms. New industrial space is primarily focused on build-to-suit projects, suggesting that vacancy rates will likely stabilize over the next few years. The decline in "big-box" industrial space (over 100,000 SF) leasing activity is impacting Tampa's overall leasing landscape. According to CoStar, approximately 2.5 million SF was leased in the first quarter of 2024, but only two tenants leased over 100,000 SF so far this year. This is a significant drop from 2023, which saw five tenants leasing similar-sized spaces in the same period. Meanwhile, leasing activity for spaces under 100,000 SF has remained steady over the past two years. Tampa's asking rent growth rate has dipped below 10% for the first time since 2021. Although still robust, the current rate of 8.1% is well below the peak of 16% recorded in the latter half of 2022. Conversations with market participants reveal that the rapid increase in rents was unsustainable, and a market correction was inevitable. Looking ahead, cap rates for Tampa's industrial market are expected to rise, largely due to the Federal Reserve's current higher-for-longer stance on interest rates. Interested in learning more about the Greater Tampa Bay market, reach out to me via DM, email, or phone call! Matthew Spratley #Tamparealestate #industrial #trends #economicoutlook #marketvalue #stayinformed #investor #Realestate #Tampa #hillsborough #pinellas

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One of the many reasons why I love the #TampaBay Commercial Real Estate market is because it is always changing and the change usually benefits the community as a whole. As a CRE Appraiser, imagine me as your market storyteller, weaving together the threads of data to create a narrative of trends and patterns. It’s like being a historian, but instead of studying the past, I’m decoding the present. How can I help you? If you are looking to purchase or sell your property, but a bit lost on the properties value - perhaps you can benefit from one of my concise appraisal reports that have the full analysis of a narrative appraisal report without all of the bank report requirements. (Typically cheaper than a full narrative report) With the rising cost of insurance, maybe you need an insurable value appraisal report. An insurable value appraisal report helps determine the appropriate amount of insurance coverage for a property. It provides an estimate of the property’s value helping owners and insurers make informed decisions about coverage. Reach out today to see how my team can best assist your commercial real estate needs! #Tampa #StPete #sarasota #bradenton #Brandon #Pasco #Polk #hillsborough #pinellas #manatee #lakeland #plantcity #TampaRealestate #realestate #TailoredSolutions #RealEstateExpert #insurance #insurablevalue #marketvalue #markettrends #StPeterealestate #valuation #appraisal #appraiser #cre

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Listen in on our Q&A with Brian Lanehart to learn how you can streamline your operations and gain actionable insights with the Lobby CRE platform. #LobbyCRE

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Savannah was the country’s top industrial growth (net absorption/existing inventory) market in 2023. Tenants have been capitalizing on Savannah’s logistical advantages and first-generation space, resulting in 13.5 million sq. ft. of net absorption last year. The market has started 2024 strong, with 2.8 million sq. ft. of net absorption

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As the multifamily industry evolves, so must its approach to engaging residents on a personal level. Beyond mere information, residents and prospects yearn for meaningful connections and content that resonates personally: rptn.co/K8A6ZABAjHJ

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NEPI Rockcastle has reported double digit growth in net operating income (NOI), up 9.4% on a like-for-like basis, with tenant sales having increased by 10% during Q1 2024 versus Q1 2023. All product categories recorded higher sales, except ‘Sporting Goods’ (-2.3%) with the best performing categories ‘Health & Beauty’ (+19%) and ‘Services’ (+18%). Fashion, the largest segment, saw sales increase by 9%: https://bit.ly/3UFjiMx #nepirockcastle #commercialrealestate #europe #realestateinvestment #propertyfund #realestatenews #propertydevelopment #propertyowners #landlords #retailrealestate #assetmanagement #shareholders #investorrelations #propertynews #poland #listedcompanies #JSE

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Did you know that a WHOPPING 45.3% of Equity Lifestyle Properties' Property Operating Revenue came from properties in Florida in 2023? For industry analysis & deep dives into portfolios & performance of operators like ELS, subscribe to my newsletter at: ohweekly.substack.com

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Well, that certainly will give syndicators fodder to proclaim: KKR buys stabilized properties with negative leverage, so can we! The major difference is that KKR is in a completely different league and has the financial strength to buy diversified portfolios with low leverage and and has access to additional capital if ever needed. That allows them to make these bets. Most syndicators that buy properties with the maximum leverage available and do not have the ability to easily tap into additional funds if things go wrong. And their offerings are single asset and not large portfolios. In a recent post, a syndicator posted that they underwrite to a lower exit cap rate than current market cap rates because they believe that's where the market is headed. They might be right and if so will come out as winners but it is still a market bet. If the bet goes wrong, they will likely not have access to additional capital to rescue such deals. In contrast, KKR with their low leverage strategy and virtually unlimited access to capital can take those bets. There is nothing wrong with buying distressed and high value-add properties with negative leverage but that is very different from purchasing a fully stabilized asset with negative leverage and hoping that the market (higher rents, lower interest rates, lower cap rates) will make the deal work at the exit. Leave those bets to KKR et al with massive portfolios/diversification and financial strength.

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According to a new report from RentCafe, between 2021 and 2024, the office-to-multifamily conversion pipeline swelled from 12,100 units in progress to well over 55,000. Read on. #housingmarket #housing #multifamily

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CRE transaction volume was low yet again in the first quarter of this year. In terms of space transacted (rather than dollars), 1Q24 was slower than three out of four quarters from last year, an already depressed year in terms transaction volume. Prior to last year, the last time transaction volume was this low was in the second and third quarters of 2020 - the early, highly uncertain days of the pandemic when it was extremely difficult to get much of anything done. Before the pandemic, you'd have to go back to 2013 (for nonresidential properties) and 2010 (for multifamily properties) to see volume this low.   Read my latest article on First American's Econ blog to learn more about this very slow quarter, and why it's worth thinking about transaction volume in terms of space rather than dollars: https://lnkd.in/gA8g9kRH

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CLOSED – CASH OUT REFINANCE: MUSCLE SHOALS, ALABAMA We wanted to share our latest achievement: a strategic refinancing deal for a property in Alabama, where we successfully secured $2.9 million in proceeds on a non-recourse loan. This distinctive transaction is structured with a 5-year term, featuring full-term interest-only payments, and a step-down prepayment schedule of 5, 4, 1, 1, 1. Moreover, we've locked in an attractive rate of 7.95%. This deal is especially noteworthy not only because of the property's lack of seasoning—a condition that typically necessitates agency financing—but also due to this lender’s ability to underwrite to interest only payments. By underwriting to IO payments, as opposed to the industry standard of Principal and Interest (P&I) or amortizing payments, we were able to raise an additional $300,000+ in loan proceeds, thereby maximizing financial leverage and benefitting our client’s investment strategy. Our innovative financing solution serves as an exemplary quasi-permanent, quasi-bridge program, presenting a significantly more cost-effective option compared to traditional bridge loans. The positive momentum in the market is undeniable, as we witness a surge in activity with an increasing number of requests and successfully executed deals. This transaction not only highlights our ability to navigate complex financing landscapes but also emphasizes our dedication to providing tailored solutions that meet the unique needs of our clients. In an era where adaptability and foresight are key, our team stands ready to leverage our expertise to assist you in achieving your real estate financial goals. Whether you're exploring refinancing options or aiming to capitalize on emerging opportunities, we're here to guide you through every step of the process. Special thanks to Michael Derk, Zack Metzner, Daizy Gomez, & Linsey Farrahi for helping to get this one across the finish line. For expert guidance and to learn how our innovative financing solutions can benefit your portfolio, contact us today. Let's make your real estate aspirations a reality. (916)719-9025 #AlabamaRealEstate, #Refinancing, #CommercialRealEstateFinancing, #InnovativeFinancing, #RealEstateInvesting, #BridgeLoanAlternative, #CREAlabama, #RealEstateFinance, #CREInvestmentAlabama, #AlabamaPropertyInvestment, #RealEstateMarketTrends, #EmergingMarkets, #RealEstateDeals, #CRECapitalMarkets.

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SRS' Matthew Mousavi, MBA recently spoke with PERE News about the state of the retail net lease market and the driving forces behind the slowdown of deal volume across all net lease asset types. "Occupancy rates are healthy, but the valuations are out of whack," says Mousavi. "Because we don't have a lot of distress, you don't see valuations going down, even though rates have gone up considerably. The market is inefficient now because it's frozen." Click the article to read more about the state of the retail net lease market ➡️ https://lnkd.in/gaxqvmCS #RetailInvestor #NNN #InvestmentSales #SRSCapitalMarkets #CapitalMarkets 

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https://lnkd.in/eCW4WK3S The headlines keep getting worse for the nontraded REIT sector. There is only so long redemptions can exceed subscriptions before every succeeding decision becomes more unpalatable than the last. However, this article points out #balancesheet issues that my come into play sooner rather than later. It is worth the read. “The slow fundraising and high redemption rates are just part of the problem for these REITs moving forward.” “Many of these nontraded REITs have used floating rate debt which they have hedged with interest rate caps and swaps that could soon expire, and it is more costly to refinance or buy new rate caps as interest rates remain high.” “Additionally, commercial property prices have continued to trend down, reducing their asset values and making it unappealing to sell properties. In April, Green Street's Commercial Property Price Index was down 21% from its March 2022 peak.” REIT Academy & The Executive REIT Masterclass David Auerbach Jonathan Morris Reagan P. Juliana H. Mary Jensen Craig Smith, CFA, FRICS Alex Pettee, CFA Eka Gigauri #reits #commercialrealestate #realestateinvesting #HallKnowsRE

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Unfounded concern? This CoStar News article discusses non-traded REIT performance with a focus on Blackstone. It also raises criticism for lack of disclosure of NOI growth rates. I would argue NOI growth rate is not a valuation input, but a product of all other cash flow assumptions considered in conjunction with each other. While I do look at NOI growth as a metric, you have to have access to a whole host of other key assumptions to understand if the NOI growth makes sense. You can't glean this from financial statement disclosure. Even more convoluted when reporting on a portfolio basis rather than at the individual property level. Please know there is plenty of scrutiny on valuations from all the work Revantage, A Blackstone Portfolio Company (Blackstone's professional services co.) performs, their their-party valuation providers, valuation committee, and their external auditors. #RealEstateValuation #NAV #BDO https://lnkd.in/gDBhMa_7

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