Why Watch The 2019 Race?
Here are some fun facts and interesting results to help keep your eye on the RRUR this year:
Looking at the quadrants, REITs had the highest allocation at 45.7%, but only slightly more than private equity at 41.9% of the $30 billion invested. Private debt came in at about 7.3% of the pot and lastly public debt just over 5%. It's been a long cycle and historically REITs would fall first, will this allocation work for the year?
Sure - Industrial is the one to watch, according to the participating students. But the second highest sector allocation goes to...REIT Data Centers at 40% of public equity. Private equity Senior Living is on the radar at almost 10%. Keep an eye on the Captains Blog for more investment strategy insight as we interview each leader on their team's decision-making approach. Will they say core properties are done?
Out of the 30 University entrants this year, 28 are US-based institutions from New York to San Diego. Our International flair includes one each from Canada and England. The US might have an edge with domestic investment options, but can the global investors prevail?
How would you invest $1 billion in CRE to get the highest return?
See what teams had to do to make their selections
Gain a Broader Understanding in Real Estate Investing
REAL ESTATE QUADRANTS
Public EquityREITs, or real estate investment trusts, are companies that own or finance income-producing real estate in a range of property sectors. These companies have to meet a number of requirements to qualify as REITs. Most REITs trade on major stock exchanges, offering a number of benefits to a variety of investors.
Public DebtCommercial mortgage-backed securities (CMBS) are secured by mortgages on commercial properties rather than residential real estate. Nothing is standardized, so there are a lot of details associated with them that can make their valuation difficult. Residential mortgage-backed securities are comprised of a pool of mortgage loans created by banks and other financial institutions. These are packaged by a special-purpose entity into classes and tranches, which then issues securities and can be purchased by investors.
Private EquityPrivate equity real estate is an asset class that consists of pooled private and public investments in the property markets. Such investing involves the acquisition, financing, and ownership of a property or properties via a pooled vehicle. Institutions, third parties, asset managers, private accredited investors and high-net-worth individuals invest in private equity real estate
Private DebtPrivate-market investments in commercial real estate debt specifically fixed-term senior loans that are made by and held in the investment portfolios of institutional lenders such as life insurance companies and pension funds.