Your Choice Of Commercial Real Estate May Determine Whether Your Investments Survive The Pandemic

Ari Rastegar is CEO of Rastegar Property Company, a vertically integrated real estate company with a focus on value-oriented real estate.

Just as the pandemic has touched every aspect of our lives, every asset class type has been affected by Covid-19. The commercial real estate market across America has fluctuated as the pandemic has continued to leave some asset classes on shaky ground. However, there are sectors that have been holding their own throughout the instability, and some that are even thriving.

Breaking Down The Landscape

Without a doubt, the hospitality industry has been drastically impacted by the pandemic and subsequent lockdown which have all but completely stalled travel. Even with states beginning to reopen, given the historically low levels of hotel occupancy, the writing may be on the wall for many hotels in large cities across the country.

In New York City alone, up to 25,000 rooms

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Cresset Diversified Real Estate Hires Dominic DeRose as Director of Investments

DeRose to work with team responsible for deploying equity for $500 million Qualified Opportunity Zone Fund

Cresset Diversified Real Estate announced today that Dominic DeRose has been named Director of Investments. In his role, DeRose will focus on the firm’s vast real estate portfolio with an emphasis on their qualified opportunity zone efforts, as well as a series of smaller real estate funds focused on various strategies, including industrial development and distressed investments.

Together, Cresset Partners and Diversified Real Estate Capital manage the Cresset Diversified QOZ Funds, along with a variety of real estate and private equity strategies. The two partners are leaders in finance, real estate, private equity, and wealth management, with Cresset Asset Management, LLC, overseeing $10 billion in AUM through private wealth management, and Diversified Real Estate Capital managing a $5 billion real estate portfolio.

“Dominic has the demonstrated track record of success and deep experience across

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Chicago-area medical office buildings remain hot investments even in COVID era

COVID-19 continues to ail investors in most types of commercial real estate. But many of those that own health care properties are feeling good.

While the pandemic jacks up vacancy, hampers property values and raises critical questions about the future of the retail and hospitality and traditional office sectors, medical office buildings have been largely free of those economic symptoms.

Properties are trading at prices similar to or higher than those paid before the crisis began, rent collections have barely felt a pinch and new sources of capital are looking for a way in. Even the specter of more patients receiving medical care virtually and eroding some of the need for in-person treatment hasn’t scared off real estate investors, which are betting heavily that the coronavirus will instead accelerate the trends that have made medical offices more popular in recent years.

It’s a signal that health care real estate, fueled

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Brookfield Property Partners: Pay For Office And LP Investments, Get Retail For Free (NASDAQ:BPY)

Despite the seemingly intensified post-COVID-19 headwinds, I think Brookfield Property Partners (BPY) warrants investors’ attention. While the BPY portfolio is high-quality and thus, should prove less sensitive to the current backdrop, the market is currently pricing in an overly punitive discount to NAV. Plus, there’s additional downside protection from the ~$1bn commitment by BAM and partners, as well as the optionality from BPY’s rich development pipeline. At current prices, BPY investors pay for the core office portfolio and LP investments, and get the core retail assets for free.

High-Quality Concentration

To be clear, long-term concerns on the state of physical retail remain very valid. But quality counts as well, and BPY did a good job of highlighting the quality of its underlying assets and its higher tenant profitability at the recent investor day event. Case in point – BPY currently holds a 19% share in high-quality retail real estate in

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