The Real Deal New York

Posts Tagged ‘Private Equity’

  • Jon Gray Steve Schwarzman

    From left: Jonathan Gray and Steve Schwarzman

    After raising a record $15.8 billion for a global real estate fund, investment giant Blackstone Group is planning to gather more money for a new property pool focused on European assets.

    Blackstone raised $7.5 billion last year for its fourth European-focused real estate fund, but is reopening the pool to investors after reaching its target due to overwhelming demand. [more]

  • Sternlicht Gray

    From left: Real estate fund managers Barry Sternlicht, Joe Sitt and Jonathan Gray

    Real estate investors are much happier with their returns than in past years but are also anxious over valuations, according to a new survey by research firm Preqin. [more]

  • From left: Blackstone's Jonathan Gray and Starwood's Barry Sternlicht

    From left: Blackstone’s Jonathan Gray and Starwood’s Barry Sternlicht

    Real estate funds are receiving more investment from pension funds, endowments and institutional investors than at any point since the property bust, with a few large firms collecting most of the spoils.

    Investors have poured money into real estate in search of better returns than they would see from bonds, according to David Hodes of consultancy Hodes Weill & Associates. [more]

  • Blackstone Group's Global Head of Real Estate Jonathan Gray

    Blackstone Group’s Global Head of Real Estate Jonathan Gray

    Blackstone Group is looking to raise $15 billion of equity for a new global property fund. That amount would be a record for such a fund, according to Bloomberg.

    The Ohio Police & Fire Pension fund invested $70 million, the website reported. The new pool of money would provide Blackstone, which is the largest private equity investor in real estate, with a purchasing power of $45 billion. [more]

  • sam-zell-gary-garrabrant-equity-jaguar

    From left: Gary Garrabrant and Sam Zell

    Jaguar Growth Partners, a private equity firm run by a former business partner of Sam Zell, received $100 million in financing from New York Life Insurance Company.

    Former Equity International CEO Gary Garrabrant’s firm raised its debut financial commitment. Jaguar Growth Partners seeks to raise as much as $1 billion, sources told the Wall Street Journal.  [more]

  • From left: Cassidy Turley president Peter Hennessy and managing principal Joseph Swingle and TPG Capital co-founders David Bonderman, James Coulter and Bill Price III

    From left: Cassidy Turley president Peter Hennessy and managing principal Joseph Swingle and TPG Capital co-founders David Bonderman, James Coulter and Bill Price III

    Commercial real estate firm Cassidy Turley has reportedly entered acquisition talks with Texas-based private equity firm TPG Capital. [more]

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  • 1295 Fifth Avenue and 1660 Madison Avenue,

    WEEKENDEDITION A group of several dozens tenants, elected officials, and tenant advocates held a rally Friday in front of a former Mitchell-Lama apartment building to demand a better investment deal for their Harlem homes. [more]

  • palm-beach-new-york

    Al Rabil and Kelly Smallridge

    From the South Florida site: The changing tax laws are expected to help drive up the number of private equity funds, hedge funds and other Wall Streeters fleeing New York for South Florida, especially Palm Beach.

    Section 457A of the Internal Revenue Code, which was recently enacted, will require hedge fund managers to move all fees deferred before 2009 and all related earnings out of offshore accounts into U.S. accounts by 2017. A manager who lives in Florida will pay much less in state taxes on the money compared to New York. [more]

  • NYC Comptroller Scott Stringer

    NYC Comptroller Scott Stringer

    A type of performance fee that gives developers a leg up for taking the lead on real estate projects may be cut at the knees by New York City’s new comptroller Scott Stringer, who condemns the fee as a tax loophole.

    Stringer characterized “carried interest,” as a tax break for the rich, because it is taxed at a lower rate than ordinary income. Also known as a “promote,” carried interest is taxed at capital gains rates, generally about 20 percent as opposed to the normal income tax rate of around 40 percent, as The Real Deal has reported. [more]

  • From left: Steven Schwarzman and Barry Sternlicht

    From left: Blackstone’s Stephen Schwarzman and Starwood’s Barry Sternlicht

    Private equity firms such as Blackstone Group have deemed the time ripe for initial public offerings of their hotel portfolios. The IPOs come at a time when resurgent demand for hotel rooms is sending stock prices to record highs, and hotel real estate values have almost doubled since 2009’s low, according to research from Green Street Advisors. The surge has led these groups to the conclusion that now’s the time to cash in, Bloomberg News reported. [more]

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  • Gary Garrabrant and Sam Zell

    The co-founder and former CEO of Sam Zell‘s real estate investment trust has a new private-equity and consulting firm, the Wall Street Journal reported.

    Gary Garrabrant, who left Zell’s Equity International in September, is now heading Jaguar Partners. The business will invest in emerging-market companies in such industries as consumer finance, retail and health care. [more]

  • NYC hedge funds make move to Palm Beach

    January 28, 2013 10:00AM

    Florida’s Palm Beach

    Weary of New York’s exorbitant city and state tax rates, a large number of Wall Street hedge funds and private equity firms are making an exodus to Florida’s Palm Beach County, the New York Post reported. “Florida is a state of choice,” Thalius Hecksher, global development chief for Apex Fund Services, a hedge fund that recently moved a bulk of its operations to Palm Beach, told the Post.“It’s organically grown. There’s no need to drag people down here. It’s a zero-income-tax jurisdiction.” … [more]

  • From left: 735 Bryant Avenue, Thomas Capasse, a principal with Waterfall Asset Management and 852 East 213 Street

    Private equity firms such as Stabilis Capital Management, Madison Realty Capital and Onex Real Estate Partners have been buying debt on small, often severely distressed rental properties in secondary neighborhoods in New York City with little fanfare over the past year. The acquisitions resemble activity during the height of the market when private equity firms, often in partnership with local operators, purchased large portfolios of rent-regulated apartment buildings. Yet this post-boom trend is different in two significant ways: The properties are much smaller, and the buyers are seeking to gain control of them by buying the debt, instead of directly buying the buildings. [more]

  • The guidelines for the conversion of real estate owned homes into rental properties were released by the Federal Reserve last week, the Los Angeles Times reported. The central bank decreed that lenders could receive Community Reinvestment Act credit under the new policy. The Community Reinvestment Act, enacted in 1977, was intended to encourage lenders to provide housing to low- and moderate-income people. [more]

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  • Colin Weil, co-founder of Waypoint Capital

    Increasingly private equity firms are snapping up single-family and multi-family proeprties that have been foreclosed on across the nation, Bloomberg News reported.

    For instance, Waypoint Capital, a firm based in Oakland, Calif. has $150 million in assets and is buying, on average, five more homes per day at auction. And Waypoint is able to offer 8 to 9 percent returns to investors, the firm told Bloomberg. [more]

  • Private equity, unwrapped

    January 09, 2012 10:30AM

    From the January issue: For years, private equity firms have been lavished with huge sums of money by investors looking to own New York buildings. But recently, there have been fewer deals that those firms are finding attractive — ones that offer quick and bountiful yields. Plus, many so-called distressed opportunities that were supposed to materialize didn’t, as banks worked out new loan terms with their struggling borrowers.

    As a result, many private equity firms’ buckets of cash have been sitting unspent. And, under typical investment rules, funds that are not deployed within three years must be returned to investors, without a hotel or condo or office tower to show for them. [more]

  • Morgan Stanley has been getting nibbles from multiple U.S. private equity firms looking to take on a stake in the bank’s beleaguered real estate funds management business, sources told the Financial Times. Among those who are interested: KKR and TPG, both of which currently have little in the way of property operations, and Colony Capital, which yesterday handed over its stalled, $2 billion Xanadu complex in New Jersey’s the Meadowlands to creditors. Despite the number of suitors lining up for a share, each has proposed only a relatively small investment in the $8.8 billion fund, which is not expected to return much in the way of fees or profits, the paper reported. Morgan Stanley, which may need to cut its stakes in real estate investments anyway in order to comply with the Volcker rule, said it has not made any decisions so far. [Financial Times via CNBC]


  • Real estate executives say there is anecdotal evidence that private
    equity investors are returning to the commercial market. Robert Knakal,
    chairman of Massey Knakal Realty Services, said more than 200 people
    have requested information about a note underwriting the Warehouse 11
    residential development in Williamsburg he is marketing. “A number of
    those are people who have been relatively inactive for the past year or
    two who are starting to look again,” Knakal said. The city’s big real
    estate families, including the Dursts, LeFraks and Resnicks, are
    rumored to be looking to expand. Richard LeFrak, president and CEO of
    the LeFrak Organization, told the Observer that he is starting to look
    at properties. “Would I buy something? Yes, I would. Am I prepared to
    put up substantial equity? Yes, we are. When prices got very high, did
    I think people weren’t thinking clearly? Yes, I did,” LeFrak said,
    adding that there are still obstacles in buying properties, including
    the lack of credit and not knowing what prices are since there are so
    few transactions. … [more]