Institutions’ CRE Appetite Reaches 7-Year High
[{"id": "f51eklh", "text": "Well, they can borrow at 2.75%...", "replies": [{"id": "f5fhjq1", "text": "Bu they can do that across asset classes at the fund level. Pretty sure this is asset managers chasing yield amongst low performing alternatives. Especially since that\u2019s what they say in the very short article", "replies": [{"id": "f5g7r3q", "text": "Can they borrow at 3:1 - 4:1 leverage in other asset classes though? \n\nI honestly don\u2019t know... \n\nYou\u2019re right about the yield though. Our institutional investors are begging for R/E deals right now.", "replies": [{"id": "f5gzpux", "text": "3:1 assets to liabilities or liabilities to assets and if the later, how can they do that?", "replies": [{"id": "f5hj9kn", "text": "A 30% down payment on a property is ~3:1 leverage, for example", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "f532c1f", "text": "Private and borrow at 3.75... seems like a generational opportunity to acquire... still.", "replies": [], "depth": 1}, {"id": "f53frte", "text": "There's a bottleneck with demand to write huge checks.", "replies": [], "depth": 1}]