Dry powder piles up

More than $50 billion raised to invest in distressed property, but many funds may be disappointed October 26, 2009 10:30AM By Candace Taylor

From the October issue: New York City is at a peculiar crossroads. For months, investors have marshaled unprecedented amounts of capital, salivating at the prospect of snapping up distressed properties. "We're fortunate this cycle to have the most dry powder in our history," Blackstone Group president Tony James said last month at the Barclays Capital Global Financial Services Conference, which was held in Manhattan. The firm has about $28 billion in unspent capital, he said. About $12 billion of that is earmarked for real estate. "We're just beginning what will be the best period in decades for private investing," he said. Dan Fasulo, a managing director at Real Capital Analytics, estimated that $50 billion has been raised and is ready to be deployed into distressed real estate. Paradoxically, investors have found very little worth buying so far, in large part because banks continue to hold troubled loans on their books, hoping conditions will improve. more

Tags: Boston Properties Harry Macklowe angelo gordon area property partners barclays capital blackstone group boerum hill china investment corp. david schechtman eastern consolidated george comfort & sons keith barket ken krasnow lefrak city lefrak organization leon black marc holliday massey knakal realty services murray hill properties ofer cohen real captial analytics rockpoint group sam zell sl green stephen schwarzman sunwest terracrg tony james vornado westbrook partners william mack worldwide plaza zell credit opportunities

Comments

Anonymous

Lehman has sold a thing! Doesn't that say it all?

Comment #1 Posted By: Anonymous 10/26/09

Anonymous

hasn't, not has! Sorry, I Lehman'd up.

Comment #2 Posted By: Anonymous 10/26/09

Anonymous

"Dry Powder"??? Can we be more pretentious?

Comment #3 Posted By: Anonymous 10/26/09

Anonymous

dry powder ?

Comment #4 Posted By: Anonymous 10/26/09

Anonymous

Good article on waiting money but less clear on why no sellers. Most buyers waiting for repeat of 1980s but there have been significant structural changes since then. Banks are bigger and more able to carry underperforming assets. Institutions look at the money they left on table in last cycle and don't want to repeat. More institutional real estate ownership (REITs etc.) Government floating market with low cost liquidity.

Comment #5 Posted By: Anonymous 10/26/09

Anonymous

go Krasnow ! the voice of bob as spoken by a chipmunk puppet

Comment #6 Posted By: Anonymous 10/27/09

Leave a Comment

(optional)
(optional)

The Real Deal reserves the right to delete any comment it finds to be rude, obscene, racist, sexist, bigoted, irrelevant or repetitive, as well as inappropriate comments about anyone's personal appearance. The Real Deal does not endorse any comments posted on its Web site nor does it verify the veracity of comments or the identity of posters.