Bloomberg: “KKR & Co. is betting on Brooklyn apartments as the pandemic rattles the housing market in New York City.

The New York-based alternative asset manager is in contract to purchase a portfolio of newly developed rental buildings in Brooklyn from Bruman Realty in a deal worth $860 million including debt, according to people familiar with the matter. The deal would be one of the biggest commercial real estate acquisitions in New York this year.”

You look at only some of the data & the picture is cloudy. Bloomberg: “In June, Manhattan saw the highest apartment-vacancy rate in nearly 14 years of record, according to appraiser Miller Samuel Inc. & broker Douglas Elliman Real Estate. That helped drive rents down. Brooklyn’s rents, meanwhile, rose slightly while listings surged.”

What does KKR see others do not? Any understanding of the private equity behemoth indicates they study numbers more closely than almost anyone. What is it they like about this purchase: is Covid slipping away; do local population numbers suggest people are hiding out; how does this crisis compare to buying opportunities in other distressed situations.

At Inveniam, we use data to price illiquid assets. We allow investors to see things no one else can see happening real time. #VerifiedByInveniam

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