Equity Capital Lining Up to Invest in Commercial Real EstateInteresting
article from CoStar on the amount of equity capital pouring into the market:
Hungry for the hefty returns that commercial real estate has consistently returned over the past five years, investors are expected to pour a staggering $55 billion into private equity real estate funds by the end of this year, representing a 48.6% increase over last year's $37 billion, according to Private Equity Real Estate magazine. When you factor in debt financing, those funds have a buying power greater than $160 billion.
Shorenstein started fundraising earlier this year for its eighth -- and by far largest -- investment fund, Shorenstein Realty Investors Eight LP. According to Douglas Shorenstein, chairman and chief executive of the company, the fund was substantially oversubscribed and had to turn away investors before closing out the fund in September, having raised $1.1 billion in equity commitments, including a $100 million investment of Shorenstein's own money.
