The coronavirus impact on the real estate industry

AZ Big Media | March 16, 2020

The coronavirus impact on the real estate industry
Chances are that the world returns to normal. From SARS to Bird Flu to Ebola, it seems there is always some type of health scare that we are told will alter the course of our existence. Hopefully, a few years from now we are able to put coronavirus into the category of other “close calls”. But this one feels different. And it is already altering our lifestyle in dramatic ways that prior health scares did not.  Just this week, the NCAA said that it will hold March Madness without crowds, SXWS canceled its annual event, the Coachella Festival announced that it will be postponed, Google told its 100,000+ employees to work from home, countless other companies encouraged their employees to telecommute, and toilet paper has become an unusually hot commodity. While the real estate industry as a whole appears (at least so far) to not be affected to the same degree as the travel and entertainment industries, what impact can we expect the coronavirus to have on the real estate industry over the course of the next few months and years?

Spotlight

Our global operations and our strategic capital and development businesses function in tandem to provide unparalleled customer service. We are a global company with a strong local presence and specialized teams on the ground in all of the markets in which we do business.

Related News

REAL ESTATE TECHNOLOGY

KKR expands its Phoenix real estate industrial portfolio with a new acquisition

businesswire | January 12, 2021

KKR, a main worldwide speculation firm, today reported the procurement of a 263,000 square foot modern dissemination property in Goodyear, Arizona. Deliberately situated in closeness to the I-10 interstate thruway, a significant crosscountry shipping vein, the property builds KKR's mechanical land impression in the Phoenix, Arizona metropolitan factual territory (MSA) to more than 2,000,000 square feet. The property is present day satisfaction focus finished in 2019 with best in class actual highlights including 36' clear tallness and was 100% rented at obtaining to great occupant on a drawn out premise. KKR gained the resource from the engineers, Provident Real Estate Ventures and Merit Partners. “We continue to like high growth markets across the Sunbelt and are excited to further expand our presence in Phoenix with this high quality asset well suited to today’s logistics needs,” said Roger Morales, KKR Partner and Head of Commercial Real Estate Acquisitions in the Americas. KKR is making the speculation through its center in addition to land technique. Across its assets, KKR currently claims around 32 million square feet of mechanical property in essential areas across significant metropolitan regions in the U.S. Since dispatching a committed land stage in 2011, KKR has developed land resources under administration to roughly $14 billion across the U.S., Europe and Asia as of September 30, 2020. The worldwide land group comprises of more than 90 committed speculation experts, crossing both the value and credit organizations. About KKR KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, credit and real assets, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds.

Read More

REAL ESTATE INVESTMENT

Vesta Capital LLC Acquires Four Oklahoma Properties in December 2021

Vesta Capital LLC | December 30, 2021

Vesta Capital LLC, one of the nation's fastest growing multifamily operators, has acquired four Oklahoma apartment communities this month. The transactions are the result of a successful year for Vesta after powering through the pandemic crisis. Vesta Capital LLC purchased Riverpark at Kensington (Tulsa), Drexel Flats (Oklahoma City), The Ridge (Midwest City), and The Lofts at North Penn (Edmond). The total purchase price was $100.4M for the 1,270 units combined. Vesta Capital LLC continues to grow despite the Coronavirus crisis. The company has confidence in the lasting strength of the apartment industry. Historically multi-family, particularly in markets like Oklahoma City & Tulsa have performed well even during recessions. In our mind, there will always be a need for people to provide quality housing and we are honored to help meet that need." Marc Kulick, Founder and Managing Member of Vesta Capital and Vesta Realty. In 2021 Vesta acquired over 3,600 units resulting in 74% growth to the business. This momentum is on track to carry over into the new year as the company is already under contract to close on three multi-family communities in the first quarter. About Vesta Capital LLC Vesta Capital is a privately held real estate investment firm that focuses on the acquisition and management of multifamily properties in Oklahoma and Arkansas. We purchase properties that pass our strict underwriting standards and that are positioned to perform well in a variety of market conditions. Vesta Capital LLC was founded in 2017 by Marc Kulick and has grown to operate over 8,500 units. Vesta Capital LLC is open to new investors.

Read More

LMC Announces Start of Preleasing at Odin Apartments

prnewswire | October 01, 2020

LMC, a wholly owned subsidiary of Lennar Corporation and a leader in apartment development and management, today announced the start of preleasing at Odin, a contemporary mixed-use apartment community in the increasingly popular Northeast neighborhood of Minneapolis. Odin, which features 335 apartment homes and nearly 8,000 square feet of retail space, includes a 12-story high-rise and five-story midrise building in a highly walkable and bikeable downtown locale. The community is equipped with work-from-home spaces as part of plush array of common-area amenities, including a flexible lounge to cater to the ever-prominent remote worker. Odin offers virtual leasing options and will welcome its first residents in the fall.

Read More

Spotlight

Our global operations and our strategic capital and development businesses function in tandem to provide unparalleled customer service. We are a global company with a strong local presence and specialized teams on the ground in all of the markets in which we do business.