Apr
29

Institutional Investors are Driving Down Rates in the Real Estate Industry

Colony Capital, BlackRock, Fortress, Apollo are just a few of the many institutional investors that are capitalizing on today’s real estate investment opportunities. As a result, these large corporations have driven down industry rates. Thus, making the real estate space even more competitive. As Craig Cecilio, Founder of DiversyFund says, “It’s was inevitable that this was going to happen during a great market.” And, goes on to say, “I predicted this was going to happen back in 2011 as the market started to heat up again. In coming years, we will continue to see the cost of capital become more and more competitive.” The Institutional Investor Shift If we are comparing 2007-2008 to today, the market is quite different, in a good way. There’s not one singular way to structure a real estate debt and equity investment anymore. “We are continuing to create new equity products every day,” mentioned Craig Cecilio. “Creativity is […]