mezzanine loansnontraditional financingspreferred equityreal estate financesecuritizationThis chapter discusses mezzanine loans and preferred equity investments, which are two types of nontraditional real estate financing providing capital and liquidity to real estate owners. Unlike traditional mortgage loans, ...
Terms and definitions Find definitions to some of the most common real estate terms.
Real Estate Partners and TF Cornerstone are joining forces for a vast investment venture. The creation of a $1 billion venture to advance office-to-residential conversions across the country. The firms will source and analyze conversion opportunities on behalf of the venture, Alta Residential. City...
There are different forms of leverage a real estate investor might use. There are different layers of debt they can take advantage of, including second mortgages and mezzanine financing. They can also use home equity loans or home equity lines of credit (HELOCs) to access equity in existing ...
Real estate capitalization rates have started to fall in both the United States and Europe (Exhibit 1). We are also seeing signs of a bottom in the prices of publicly traded REITs, which have either stabilized or are increasing since year-end 2022 (Exhibit 2). Office remains an outlier, ...
value of property in the face of inflation. In contrast, higher interest rates increase the return expectations used to value many types of publicly traded securities and drive values lower. For this reason, real estate investments and publicly traded securities can move in a countercyclical fashion...
There is a “capital stack” in a well-performing real estate deal. The bottom 65% or so of the property value is debt and earns returns such as 4%-10%. The next 15% or so may be mezzanine debt or preferred equity and earn returns of 10%-14%. The top 20% is common equity and...
Blackstone Real Estate Debt Strategies (BREDS) was established in 2008 to provide debt investment opportunities. This segment has approximately $9 billion in AUM. The segment’s investment strategy consists of mezzanine debt, recapitalizations, and legacy debt investments aimed at debt instruments on ...
the Company provides a broad offering of flexible and reliable financing solutions for commercial real estate owners and operators. The Company originates senior mortgage loans, as well as subordinate financings, mezzanine debt and preferred equity, with an emphasis on providing value added fin...
1 Capital invested includes: (i) common equity investments in real estate companies and funds; (ii) fixed income investments including preferred equity, senior debt, and mezzanine debt in connection with the acquisition or refinance of commercial real estate; (iii) residential debt investments in co...