News

Landmark Links February 15th – Can’t Quit You

Must Read: Blackstone now has a real estate portfolio of $136 billion, larger than any REIT in the S&P 500.  The firm’s success, coupled with the fact that real estate has more deal flow and liquidity than buyouts – private equity’s traditional investment sector – has the firm’s competitors emulating it by raising ever-larger funds that are […]

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Landmark Links February 12th – Jumping to Conclusions

Must Read: Investors are jockeying for position in the Qualified Opportunity Zone space while still awaiting guidance from the Treasury Department as to how the program will actually work with regards to leverage, tax treatment of cash reserves and early exits.  While many more experienced operators are holding back until they get clarity, some novice real estate […]

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Landmark Links February 8th – All In

Must Read: Pension funds have increased their allocations for alternative assets – primarily hedge funds, private equity, commodities, and real estate – from 10% in 2001 to approximately 30% in 2016 in an effort to boost their returns.  It has not gone well. Economy Best of Times, Worst of Times: Tech is splitting the US […]

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Landmark Links February 5th – Size Matters

Lead Story:  Brookfield Asset Management has finished raising its largest-ever property fund at $15 billion.  The Wall Street Journal recently interviewed Brookfield’s CEO and he had this to say about actually deploying the mountain of cash: “You can’t put $15 billion to work $50 million at a time,” said Brian Kingston, Brookfield’s chief executive of Brookfield’s […]

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Landmark Links February 1st – Off Limits

Must Read: Billions of dollars are flowing into a corner of the tech industry focused on housing.  However, it has not yet been able to deal with the fundamental problem: affordability.   For all of its potential, technology can’t solve the inescapable fact that housing is incredibly expensive to build and that a lot of communities where […]

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Landmark Links January 29th – This Old House

  Must Read: If current development trends hold, by 2037, 45% of the US housing stock will have been built before 1970, according to the NAHB.  This is yet another data point that helps to explain why home improvement stocks like Home Depot and Lowe’s have outperformed the homebuilders by such a wide margin over […]

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Landmark Links January 25th – Out in the Cold

  Must Read: One would think that recent increases in for-sale housing inventory would benefit middle-class buyers but that is not, in fact what is happening.  In many parts of the US, price gains have slowed but the number of units on the market that a middle-income family can actually afford has declined. Economy Writing Is […]

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Landmark Links January 22 – Substantial Impediment

  Must Read: The Federal Reserve published a study last week that looked at student loan borrowers from 2005 – 2014 and concluded that the $1.5MM in outstanding student loan debt has translated to 400,000 less Millennial home owners. Economy Help Wanted: America’s tremendous need for skilled immigrants isn’t going anywhere. The Real Problem: While a trade […]

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Landmark Links January 18th – Potentially Explosive Development

  Must Read: UK regulators have given the go ahead for a new type of property exchange called IPSX where investors can trade shares in individual properties.  If successful, this could eventually become an alternative to REITs.  IPSX hopes to launch its first property IPOs by the end of the first quarter of 2019. Economy […]

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Landmark Links January 15th – Adding Some Teeth

  Must Read: For fifty years, California has required cities and counties to submit plans for enough new housing units so that residents of various income levels can live affordably.  However, many local governments have treated this planning exercise as something between a formality and a joke and have failed to approve anything close to […]

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