Ascent Newsletter Summary – July 2024

State of the Market Update

      • National: Rising unemployment (now at 4.1%) and potential recession fears discussed in “The Rate Guy Podcast.” Speculation about possible Fed rate cuts due to stable inflation and weakening job data.

      • Global: Despite high interest rates, global investors favor multifamily properties, especially in the U.S. Sun Belt. Increased interest in high-risk properties presents opportunities.

      • Commercial Real Estate: Mixed performance with data center REITs up 19.4% YTD, while office REITs declined by 16.2%.

Deal Update

      • Sunrise in Chandler: Fully subscribed and closing soon. Shift in focus to preferred equity deals and other sectors due to fewer distressed properties than expected.

      • Retail and Hotel Sectors: Gaining momentum with low retail vacancies and strong hotel occupancy and revenue growth, especially in upscale and luxury segments.

Education Corner

      • Preferred Equity Explained: Pref equity gets paid before common equity, offering high monthly distributions but capped returns upon sale. Watch our video for a detailed breakdown.

     

     

 

 

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is now officially closed, you can stay ahead of the curve
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