On March 8th Silicon Valley Bank failed. Interest rates fell. It now appears that the highs for interest rates may have been put in for this cycle. Even as the Federal Reserve raised the Federal Funds rate to 4.75%-5.00% on March 22nd, market interest rates were falling. These lower interest rates could be good news…
The affordable housing crisis in the U.S. is getting worse. The national average rent to income reached 30 percent for the first time in the over two decades of Moody’s tracking history. Housing affordability is at multi-decade lows. There simply is not enough affordable housing to meet demand. And the problem is especially bad now….
The recent spate of real estate investment trusts suspending withdrawal privileges caught many investors by surprise. When investors participate in a private placement they are looking for better performance in return for locking money up. But when most invest in REITS they expect easier access to their money. That isn’t always the case. Recently major REITS…
In this video the SelectFinCap managing team tells the story of successfully managing a value-add office property during COVID, and how this illustrates the importance of focusing on the investing basics.
Although we focus on commercial real estate, we also pay attention to residential real estate, particularly how it might impact multifamily commercial properties. At the start of 2023 there is a wide gap in expectations. Some have a positive outlook, pointing to mortgage rates that have fallen back to levels seen in September. Many believe…
In December of 2019 the managing partners of Selective Financial Capital moved forward with an investment in a value-add office building with a high vacancy rate. Unbeknownst to us at that time the COVID pandemic had begun. Starting in 2020 government mandated lockdowns would force many office staff to work from home with a deleterious…
Industrial real estate continues to rise in value. However, price appreciation is now having to happen despite, rather than partly because of Amazon. As the e-commerce leader Amazon was a net buyer of industrial properties and a positive factor for price appreciation. This has now changed in 2022 and it adds new complexity to the…
Should investors be worried about any parallels between the collapse of Lehman Brothers in 2008, related to toxic real-estate mortgage based securities and the collapse of FTX in 2022? The short answer is no. The prospect of a contagion effect from the collapse of FTX spreading to the real estate market or the broader economy…