Real Estate Private Equity: Money Flowing Heavily
Per this article, private equity is flowing heavily into real estate funds again. Investors missed the sky-high returns – we’re talking 50%, sometimes over 100%, IRRs – they would have harvested if they bought anywhere near the bottom in 2009 and 2010, but it’s a meaningful statement about the health of real estate for the next couple of years. And good for the economy. Just keep your eye open for the ridiculous cap rates of 2005 and 2006, and short, short, short!