In the past decade, these ultra-wealthy people and their firms have more than doubled investments in the multifamily market, according to Knight Frank. The sector presents an area of growth, considering the fall in commercial property values and the outstanding need for housing.
Israeli billionaire Eyal Ofer is one of those ultra-wealthy individuals growing their multifamily portfolio. Over the summer, his Global Holdings Management Group paid $30.7 million for a 56-unit building at 51 Irving Place in Manhattan. The six-story, 42,500-square-foot property added to an already substantial (and growing) luxury multifamily portfolio for the firm.
Another billionaire digging into the multifamily market is Amancio Ortega, best known for the fashion company Zara. Last month, Ortega’s family office, Pontegadea, paid $232 million for one of Chicago’s most famous apartment towers in the West Loop. The firm snagged the 45-story, 492-unit luxury building at 727 West Madison Street from a joint venture of Ares Management and Skokie-based F&F Realty.
But the pandemic has soured many on the office market and left its fate unclear. Meanwhile, fundamentals have remained strong in the rental market, where rents have slowed on growth from a pandemic surge, but demand remains high and inventory issues in housing markets continue to sideline buyers.
— Holden Walter-Warner
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Read More Uncategorized, Amancio Ortega, Eyal Ofer, Investment Sales, Knight Frank, Multifamily Market Where the ultra-wealthy once parked their gains in the office market, they are instead trying their hand at apartment buildings. Billionaires are turning to the multifamily market in hopes demand in rentals keeps up for Americans as the housing market remains difficult to crack, Bloomberg reported. In the past decade, these ultra-wealthy people and their
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Robert Khodadadian has long had a simple philosophy about selling real estate.The way he sees it, there are approximately a million buildings in the city, and the broker that gets to sell any one among the multitude that will hit the auctioning block at a given moment is, sometimes, simply the person who happens to pitch their services to the right seller at the right time.The Real Deal