- The Koch Brothers Are Sitting on a Real Estate Empire Worth Hundreds of Millions “The four brothers have amassed some of the world’s most spectacular private homes, including a large waterfront compound on Massachusetts’ Cape Cod once owned by Bunny Mellon, sprawling Palm Beach estates, a replica of an old Western town in Colorado and an Austrian castle once owned by Archduke Franz Ferdinand. The estates are a far cry from the roughly 160-acre property on the outskirts of Wichita, Kan., where the brothers grew up. They spent their summers in bunkhouses while working on cattle ranches owned by their father.” (WSJ, subscription required)
- Related’s CEO talks Hudson Yards and ”complicated” projects “In an industry known for sharp elbows, Blau’s seen as the nice guy who shows up to his kid’s hockey practice, to Cycle for Survival events at Equinox and to the Metropolitan Transportation Authority boardroom when it’s time to hash out a deal and Ross is in China. More than a dozen people interviewed described Blau as a consummate dealmaker — the kind of person who clicked with Ross as a student at the University of Michigan and then, two decades later, skillfully assembled the financing for Related’s biggest project yet.” (The Real Deal)
- Despite Temporary Trade Truce, Chinese Investors Aren't Coming Back To U.S. CRE “Tensions between China and the United States are lingering, despite the U.S. and China reaching a Phase 1 agreement earlier this month to de-escalate their ongoing trade war. But experts expect restrictions on Chinese nationals investing out of the country to continue through at least 2020. With mounting uncertainty about a potential downturn in the mix, lavish spending from Chinese investors on American real estate is considered a thing of the past.” (Bisnow)
- Proptech and the Rising Tide of Technology in the Real Estate Industry “The huge amount of real estate data available can, and should, be leveraged for maximum predictive impact just as Wall Street uses the data available to model algorithmic trading. Through the use of data analytics, realtors and investors are able to keep up to date on vital market data in real-time, allowing for the ability to stay ahead of the curve on the rapidly changing market of commercial real estate. Accurate, timely market data can make a massive impact on a company’s ability to turn a profit on a piece of real estate and empowers potential home buyers by providing a comprehensive view of the market even as it changes minute to minute.” (Inside Big Data)
- Multifamily Investments Reached Record $184B Last Year “Overall investment was largely driven by single-asset purchases—the best indicator for investment momentum, CBRE says—that reached $145 billion last year, up by 10.3% from 2018. Portfolio investment activity, which is more volatile, offset some of those gains, inching up by only 0.4% from 2018. In addition, 1031 buyers, large institutional investors and emerging capital all drove pricing in 2019.” (GlobeSt.com)
Five Must Reads for the CRE Industry Today (Jan. 27, 2020)
The Wall Street Journal profiled the Koch Brothers’ vast real estate ownings. The Real Deal sat down with Related CEO Jeff Blau. These are among today’s must reads from around the commercial real estate industry.