Ray Sturm

RELPI | Interests Aligned® hitting NYC meeting with Community Member Scott Arden CRE, Sentinel Real Estate! "Interests Aligned ®" is not just a tagline, it's what we do. For information about to get involved with the growing RELPI | Interests Aligned® Community, please contact us at [email protected]. For Investor and Consultant engagement, please contact Leigh Ann Hochman, Managing Director, Investor Relations at [email protected]. #RELPI® #Community #InterestsAligned® #modernmedia #relpiselfie

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“Multifamily CRE also faces cyclical challenges from oversupply and rent control issues in select markets, but the supply-demand imbalance is expected to resolve over time. In the meantime, inflated operating expenses and still-elevated interest rates continue to pressure net operating income for multifamily borrowers, especially those on interest-only loans. Pressure from multifamily CRE should remain within ratings expectations for U.S. banks.”

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Some positive notes (ie full payoffs), but distress was mounting through August per CREDiQ. Thanks for the insights Michael Haas “Perhaps the most striking metric is the January-through-August growth in full payoffs. From under $1 billion in January to $11 billion in August — full payoffs saw a massive 1,548.3 percent increase. …maturity extensions and loan modifications, the so-called “extend and pretend” category, continued to grow — rising 326.9 percent to $16.7 billion. …Foreclosures grew 272.6 percent reaching $19.2 billion in August. …REO notched a 22 percent increase.” #foreclosures #workouts #distress #specialassets #specialservicer

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🏙️ Big shifts in the Manhattan real estate market! 📊 Exciting news for homebuyers and a potential cooldown for renters in the Big Apple! The latest data shows Manhattan's rental market is softening as more people are jumping back into homeownership. Here's the scoop: • Rental demand dropped 39% year-over-year in August 📉 • New lease signings plummeted by 43% compared to last year 📝 • Median rent still high at $4,370, but only up 3.4% from 2022 💰 What's driving this change? Interest rates are stabilizing, and more inventory is hitting the market. As Jonathan Miller, CEO of Miller Samuel, puts it: "The pendulum is swinging back towards homeownership." But don't count out rentals just yet! Despite the slowdown, Manhattan's rental market remains tight with a vacancy rate of just 2.32%. Whether you're looking to buy or rent, now might be the perfect time to make your move in Manhattan! 🏠🗽 #RealEstate #ManhattanMarket #HousingTrends Citations: [1] https://lnkd.in/eVFkn3UV

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🌆 Real Estate Alert: Challenges Mount for Aby Rosen's RFR In a significant development in the New York real estate landscape, Aby Rosen's RFR is facing yet another foreclosure filing, this time from Rialto Capital. Here are the key points you need to know: - Foreclosure Filing: Rialto Capital has initiated foreclosure proceedings against RFR for defaulting on loans tied to several NYC properties, including One Jackson Square and 219 East 67th Street. - Loan Defaults: RFR stopped making payments on a $20.3 million mortgage for retail units at One Jackson Square in April 2023 and on a $2.2 million mortgage for a retail unit at 219 East 67th Street in September 2023. - Broader Financial Struggles: This is not an isolated incident; RFR is also dealing with foreclosure issues at 522 Fifth Avenue due to a $224 million debt default and has missed a balloon payment on a $180 million loan for the 17 State Street office tower in Lower Manhattan. - Market Implications: These developments highlight the ongoing challenges in the commercial real estate sector, particularly for borrowers struggling to meet loan obligations. As the real estate market continues to navigate these complexities, it's crucial for industry professionals to stay informed and adapt to the evolving landscape. #RealEstate #Foreclosure #CommercialRealEstate #AbyRosen #RFR #NewYorkCity #MarketTrends #FinancialChallenges Feel free to share your insights and thoughts on how these developments might impact the broader real estate market. 📈🏢

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✂️REAL ESTATE INVESTMENT (DIS)TRUST: STARWOOD BOLTS DOOR ✋ 🅱️ BLACKSTONE HAS COMPANY it seems that the REIT headed by Barry S (he predicted that one USA bank a week would fail in 2024) is wielding a 🔓 "SREIT, a nontraded trust managed by billionaire Sternlicht’s Starwood Capital based in Miami, Florida, told investors in an update... it would be restricting liquidity rights by more than 80%, limiting redemptions to 0.33% of its net assets a month from the up to 2% has allowed since its inception in 2018." ✂️TRANSLATION: "YOU CAN HAVE 20% OF YOUR CAPITAL BACK" (for now). #starwoodcapital #blackstone #REIT #SREIT #gating #haircut #CRE

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In this comprehensive episode, I join Harborside Partners on the Global Investors Podcast, where I provide an in-depth look at HUD multifamily loans, highlighting their potential to revolutionize real estate investments. I explains the loan types, application process, and eligibility requirements, offering practical advice on navigating the complexities of HUD financing. The discussion also covers the long-term benefits of these loans, including lower interest rates and longer amortization periods, making them an attractive option for investors aiming to grow their multifamily property portfolio. 💡 Tune in to discover how HUD multifamily loans can enhance your investment strategy and unlock new opportunities in the real estate market. 🔗 Watch the full episode here: https://hubs.li/Q02Jd9rj0 https://hubs.li/Q02JcQ-j0 Interested in learning more about Club Capital? Join our preferred investor club to get access to our latest investment opportunities and our education blogs and podcasts. https://hubs.li/Q02Jd1-60 #Multifamily #RealEstate #Debt

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““If you kept it simple and said the CRE market will grow at the rate the U.S. economy grows, and if you assume the economy grows at a 2 percent rate, just by that math it could grow by over $550 billion on an annual basis,” he said. “However, it won’t be linear. There will be some good years, and some years the economy won’t do so well, but using that rough rule of thumb, it will grow that size annually.”

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Important read on the nation's housing affordability crisis. The biggest culprit appears to be single family housing zoning. YIMBY vs NIMBY. Among economists and housing experts, there is a broad consensus about the reason for the fundamental problem of insufficient supply: mostly, local land-use regulation and zoning. Adjusting for inflation, the cost to build a house today is about the same as it was 40 years ago. But inflation-adjusted prices have nearly doubled because there is not enough buildable land to satisfy demand. “We can’t make more land,” Herbert points out, “but we can make better use of it by increasing the density of housing…putting four units on a lot instead of one. So zoning reform gets a lot of attention as a means of increasing housing production.” https://lnkd.in/gNzrZ6ZH

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Here’s something I’m not thrilled about: congestion pricing in NYC. I understand the need to fund infrastructure and improve the subways, but charging $9 a day to drive south of 60th Street in Manhattan feels counterproductive. Right now, Manhattan is already facing a significant drop-off in midweek workers, especially on Mondays and Fridays, as remote and hybrid work redefine office life. Instead of incentivizing people to return, this feels like a deterrent. Yes, I get the argument for reducing cars and encouraging public transportation, but is this the right solution? What really hits home for me is how this impacts young professionals like my 24-year-old daughter, who reverse commutes out of Manhattan for work. She’s now looking at an additional $50/week cost on top of high rent and parking fees. It’s tough enough to get ahead in the city without these extra costs. What are your thoughts on congestion pricing? Is it the right move, or should NYC explore other ways to balance revenue and accessibility?

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So cool to be included alongside such remarkable companies in Philip Russo's Commercial Observer feature on the intersection of PropTech and FinTech. It’s exciting to share this space with innovators like Agora, Cadre, Fractional, Procore Technologies, Realfinity, Roofstock, and  Tongo. The conversation and space is really heating up, and I love to see the diversity of innovation. For Stake, “it’s all about how to be able to incentivize with the right amount of Cash Back, how to be able to help renters use that Cash Back to build more savings, and how to move money on rent payments that helps properties perform better.” This focus on renters’ financial wellness is at the heart of what we do, and we’re proud to bring FinTech solutions into the PropTech that empowers residents and properties alike. #PropTech #FinTech #Innovation

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Good piece by BofA on housing dynamics observed via their internal data: - Northeast and West Coast (SF, LA) still seeing net population outflows, albeit their data doesn’t include immigration inflows - South still gaining in population, and BofA questions if even all the new housing supply is enough to keep up with population - Gen Z driving the migration movements (though in the NE cities, it’s older folks moving out) - Interestingly, the makeup of migration within higher growth MSA’s is still skewing toward suburban areas of less density - Young BofA customers are seeking rental housing in near/immediate term, but homeownership still No 1 desired option, with majority saying they want to buy within 5 years (positive case for BTR) #housing #affordability #multifamily #BTR #BFR #rentgrowth #migration #housingsupply #realestate #CRE #realestateinvesting #BofA

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See the link in comments for an article about the expansion of Camber Creek portfolio company Rabbet's document management capabilities. It's a significant development for real estate investment professionals, addressing key challenges in a complex and highly dynamic industry. Here’s why it matters: Streamlined Workflow Efficiency: Real estate investment involves managing a vast amount of documentation, from contracts and financial reports to compliance paperwork. Enhanced document management tools reduce manual effort, streamline workflows, and improve accuracy, allowing professionals to focus on high-value activities like deal analysis and portfolio management. Improved Compliance and Risk Mitigation: Compliance is critical in real estate transactions, where errors or delays in documentation can lead to financial or legal repercussions. Rabbet’s enhanced features likely improve document tracking, storage, and retrieval, helping teams maintain compliance and mitigate risks more effectively. Data-Driven Insights: Advanced document management capabilities can integrate with analytics tools, enabling real-time data extraction and insights. This allows professionals to make more informed decisions based on trends and patterns revealed through their documentation. Collaboration Across Stakeholders: Real estate transactions often involve multiple stakeholders, including investors, property managers, and legal teams. Enhanced document management fosters better collaboration by ensuring that everyone has secure, real-time access to the latest documents, reducing delays and miscommunications. Scalability for Growing Portfolios: As portfolios grow, so do the complexities of managing associated documents. Rabbet’s expanded capabilities provide a scalable solution that supports the increasing demands of growing businesses, ensuring that document management remains seamless as operations expand. In short (though this post has gotten pretty lengthy), Rabbet’s new features not only simplify the administrative burden but also empower real estate professionals to operate more efficiently, stay compliant, and scale their operations with confidence - key advantages in a competitive market. #venturecapital #fintech #realestate #ai #efficiency

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🌆 The Evolving Landscape of New York City's Office Market 🌆 As we navigate the complexities of the current office market, it's clear that landlords in New York City are facing some tough decisions. Here are some key insights and statistics that highlight the challenges and strategies being employed: Vacancy Rates and Market Uncertainty - Manhattan’s office space is currently 23.5% vacant, with over 10M SF of office occupancy lost in the past 12 months alone. Unlisting Office Space - Between January and September, approximately 8.5M SF of office space has been unlisted from the market, a significant jump from the 3M SF unlisted in the same period in 2019. Strategic Warehousing - Some landlords are opting to warehouse their empty office space, hoping to secure higher rents in a more stable market. As Ethan Silverstein from Cushman & Wakefield noted, "We're not going to assign a lease at the bottom of the market for what is potentially one of the best spaces on Madison Avenue". Conversion and Renovation Challenges - With the rise in vacancy, many landlords are considering conversions or renovations. However, this comes with its own set of challenges, including zoning issues and high construction costs. Ruth Colp-Haber from Wharton Property Advisors pointed out, "These landlords are faced with a Hobson's choice... Either they can take on more debt... or they can let the space lie empty and wait for a better day". Tenant Preferences - Tenants are increasingly favoring Class-A office spaces with modern amenities. In fact, 42% of New York City leasing activity by square footage is concentrated in Class-A space, despite it representing only 15% of the market. Long-Term Strategies - Developers like The Durst Organization are investing heavily in renovations to make their buildings more competitive. For example, Durst invested $150M in the 825 Third Ave. building, resulting in leasing picking up significantly. In the words of Spencer Levine from RAL Cos., "You need to understand your property and manage your expectations... It’s really about having the right expectations and not fooling yourself that pulling this off the market and remarketing it in two years is going to make it something different than it is today". As we look to the future, it's clear that landlords need to be strategic and adaptable to navigate these uncertain times. Whether it's warehousing space, pursuing conversions, or investing in renovations, the key is to remain nimble and focused on what tenants truly value. #OfficeMarket #RealEstate #NewYorkCity #CommercialRealEstate #MarketTrends #ClassAOfficeSpace Feel free to share your thoughts and strategies on how to navigate this evolving market 📢💡

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Ep. 115 - Cross-Border Real Estate Investment: Insights from MSF Capital's Michael Felman Listen to the podcast here: https://lnkd.in/gbRD6REi Join us on this insightful episode of Family Office Real Estate Insights, featuring Michael Felman of MSF Capital Advisors. With years of experience in both the legal and investment sectors, Michael brings a wealth of knowledge on cross-border investments, family office operations, and the dynamics of global real estate markets. In this discussion, we dive deep into the evolution of family offices from traditional investment avenues to sophisticated, global real estate ventures. Michael shares his journey from practicing law to establishing a family office focused on angel investments, eventually leading to the creation of MSF Capital Advisors. This advisory firm caters to an exclusive clientele of family offices around the world, guiding them through the intricacies of investing in diverse markets. Key highlights include: - The shift from legal practice to international real estate and venture investments. - The foundation and growth of MSF Capital Advisors, serving family offices globally. - Insights into cross-border investment strategies, including the importance of local partnerships, understanding cultural nuances, and navigating legal and tax implications. - The role of family offices in today's global investment landscape, emphasizing long-term relationships over immediate transactions. - Michael's unique approach to building trust with international clients, underscoring the value of personal connections in business dealings. Whether you're a seasoned investor looking to expand your horizons or new to the realm of family office investments, this episode offers valuable perspectives on navigating the global real estate market. Michael's experiences and insights shed light on the complexities and opportunities that lie in cross-border investments, emphasizing the importance of patience, diligence, and strong relationships in achieving success. Don't miss out on this engaging conversation that bridges the gap between local expertise and global investment ambitions. Subscribe to Family Office Real Estate Insights for more episodes that explore the latest trends and strategies in real estate investments. #familyoffice #familyoffices #foreinstitute #djvankeuren #familyofficerealestate

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Edward Cohen and I had a blast talking to Connie Lee on the Tangent 💚 Proptech podcast. Connie has a great backstory and she's building Reffie, an AI-driven company geared to help multifamily operators lease units faster. We had a great time talking about the state of the multifamily market, rental trends and more. Link in comments to listen. #proptech #venturecapital #multifamily #realestate #podcast

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📢 Our latest #cushmanwakefield market reports are now available! 🏢 Real Estate Investment: Q3 saw a decline with €197M in transactions, but optimism remains as significant deals are expected by year-end, led by active domestic investors. 🏬 Office Market: Stability persists despite higher vacancy rates. Construction activity is up 94% y-o-y, and demand for prime office space continues to be solid. 🏭 Industrial Sector: Although demand fell compared to the previous quarter, it remains strong year-over-year. Prime rents are stable, and speculative construction is ongoing. 🛒 Retail: Shopping centres are improving, with lower vacancy rates and higher footfall. Retail parks continue to expand, and retail park rents are slightly up due to demand. 🏨 Hospitality: Prague leads the CEE-6 region in RevPAR growth, up 11.5% YTD. Recovery continues, supported by lower financing costs and expected market activity. our reports are available to read here:https://lnkd.in/eE2J6BHS The recovery may be slow, but there are encouraging trends across sectors. #CWCzechRepublic #CWCzechia #Cushwake #MarketBeats #CZMarketBeats #Insights #BetterNeverSetlles

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Ep. 111 - Low Leverage and Investing in Today's Market. Guest: Louis Dubin - Managing Partner at Redbrick LMD In the upcoming episode of Family Office Real Estate Insights https://lnkd.in/gyEQbGUH, we're joined by Louie Dublin from Redbrecht to discuss the current landscape of real estate investment. Louie shares his company's focus on developing nearly 2,000 residential units in Washington, D.C., most of which are market-rate housing. Amid rising interest rates and economic uncertainties, Louie emphasizes the importance of low leverage in their investment strategy. He reveals that Redbrecht typically leverages less than 40% for construction debt, a conservative approach that has enabled them to secure a non-recourse construction loan over $100 million. The conversation also delves into Opportunity Zones, where Louie highlights the benefits and challenges. With insights from one of the largest family office real estate studies, this episode promises to offer valuable perspectives for both family offices and individual investors considering multifamily real estate. Don't miss it! Watch the episode here: https://lnkd.in/gyEQbGUH #familyoffice #familyoffices #foreinstitute #djvankeuren #familyofficerealestate #realestateinvesting #singlefamilyoffice #realestate

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