To cowl this story, Occasions reporters constructed a database of offers made by non-public actual property funds that acquired funding commitments from public pensions in California from 2015 to 2022.
Utilizing info from knowledge supplier PitchBook, reporters recognized so-called worth add and opportunistic actual property funds that always buy underperforming condo complexes, renovate them and sharply enhance rents to maximise their returns.
Actual property knowledge supplier CoStar tracks acquisitions of multifamily properties by funding funds, in addition to hire knowledge for particular person properties and full geographic areas. Utilizing that info, reporters constructed a database that contained 133 offers from California and included common asking rents per sq. foot for vacant models on the properties and their surrounding submarkets.
By monitoring each, the evaluation was capable of decide whether or not these condo complexes had been outpacing the native markets on hire.
In conducting its evaluation, The Occasions reached out to 13 fund managers recognized by CoStar and shared with them a listing of buildings the actual property service mentioned their funds purchased. 4 corporations mentioned their funds didn’t purchase a complete of 4 buildings CoStar mentioned they did. The Occasions didn’t embody the buildings in its evaluation.
