Real estate private equity funds have been enjoying tremendous success in recent years. Yet intense competition and a maturing market may prompt both fund managers and investors alike to adjust expectations going forward.
The maturing commercial real estate market has some institutional investors tweaking their strategies. Many investors are willing to take on more risk, while on the opposite end of the spectrum some are also pulling back on risk as prices rise.
Banks have traditionally been the go-to source for construction loans. But they may lose some of that edge in an increasingly competitive marketplace that is filling up with non-bank lenders, as well as a tougher regulatory environment.
Sovereign wealth funds are expected to play a bigger role in the U.S. commercial real estate market in the coming months. Sovereign wealth funds are raising the stakes for global real estate allocations and North America remains a top focus for many groups.
NREI recently interviewed Joel Moser, founder and CEO of New York City-based Aquamarine Investment Partners. The global institutional investor and manager of private equity targets equity investments in real assets in real estate, energy and infrastructure in the U.S.