Here’s Why Real Estate Funds Are Sitting on Billions of Dollars - McDermott Will & Emery

Here’s Why Real Estate Funds Are Sitting on Billions of Dollars

Overview


Daniel Martin said that in the current real estate market “there’s more money searching for the same deals essentially,” both from domestic and international investors. He called the market “very frustrating” because offshore investors, particularly Middle Eastern sovereign funds and Chinese and Russian funds, often are willing to accept lower yields. “As that new money comes in, I know it’s frustrating for investors in traditional funds to see cap rates go down and prices go up,” Mr. Martin added.