Deconstruct - Episodes Tagged with “Sun Belt”

Dealing with Syndications 101 with LP Adviser Aleksey Chernobelskiy

The Real Deal — Tue, 28 May 2024 05:00:00 -0400

Aleksey Chernobelskiy has many pieces of advice for retail investors writing checks for syndicated real estate deals. But, one of the most important: you could lose it all. As many syndicators — firms that pool equity to buy property — grapple with distress, thanks to rising interes rates, investors have been stuck in the crosshairs trying to determine whether to pump more money into a struggling deal, or walk away.

Deconstruct chatted with Chernobelskiy about syndicator best practices, what retail investors should know about real estate investing, feeder funds tapping wealth for these deals and what LPs can do if everything goes wrong.

The Short-Seller And The REIT: Inside Arbor Realty Trust's CLOs

The Real Deal — Mon, 19 Feb 2024 05:00:00 -0500

For the last six months, Arbor Realty Trust has been the target of a prominent short seller, Viceroy Research, which claims that a huge chunk of its collateralized loan obligation, or CLO, portfolio is in trouble. Arbor, though it denies the short seller's numbers, said it is experiencing challenges and delinquencies are set to rise. And the company is not afraid to go after non-performing borrowers.

Deconstruct sat down with Gabriel Bernarde, one of the individuals behind Viceroy, to chat about the reports, and then dug into Arbor's fourth-quarter earnings.

Brokerage Head Kyle Matthews On What's Next For Commercial Real Estate Across The Sun Belt

The Real Deal — Mon, 29 Jan 2024 05:00:00 -0500

Not many commercial brokers branch out to start their own brokerages. But in 2015, Kyle Matthews did. Today, his Nashville-based firm Matthews Real Estate has done more than $50 billion in deals and about 650 agents. Most of what Matthews is focused on is advising clients — helping buyers and sellers sort out investments and identify pockets of opportunity. At a time when some asset classes (hint: multifamily and office) are struggling across the Sun Belt, Matthews thinks there's never been a better time for brokers to take on this role.

The Real Deal's Deconstruct chatted with Matthews about how values dropping presents an opportunity for buyers and what he's predicting across the Sun Belt in 2024.

The Syndicator's Dilemma: A Multifamily Boom Goes Bust

The Real Deal — Mon, 30 Oct 2023 05:00:00 -0400

Two years back, when money was still cheap, a new crop of investors was getting in on the red-hot multifamily market. Syndicators — investors who pool money to buy properties — turned to floating-rate debt to quickly close on deals when demand was at its peak. After a year and a half of rate hikes, many of those fledgling investors are now grappling with distress. Nuvo Capital Partners' Brian Underdahl discusses the catalysts behind that boom and how his firm is working with borrowers to save troubled deals.

The Myths of Multifamily’s Sun Belt Bust

The Real Deal — Mon, 27 Feb 2023 08:15:00 -0500

What goes up must come down, right? That’s one of the myths that has followed the Sun Belt’s multifamily market for decades, says Real Page Chief Economist Jay Parsons. It’s the idea of a boom and bust cycle, wherein strong periods of investment give way to supply levels that overserve demand. In practice, though, the Sun Belt has proved itself a market as or more resilient than many coastal cities. Here’s the rundown on why 2023 will likely be no different.