Active Private Equity Real Estate Strategy is a collection of abridged market analyses, forecasts, and strategy papers developed in 2007 and 2008 from ING Clarion Partners Research & Investment Strategy (RIS) Group. Divided into two parts, this practical guide provides an informative overview of real estate markets, forecasts, and trends in Part One, and presents examples of specific active strategies in private equity real estate investing in Part Two. This resource:
- Demonstrates the use of the various tools available to the private equity real estate investor
Offers examples of portfolio analysis and investment strategies using ING Clarion¿s forecasts and Modern Portfolio Theory
Includes a simulation of the economy in recession and the potential effects on the commercial real estate industry
Focuses on office, multifamily, industrial, hotel, and land investment strategies
Written with the institutional real estate investor in mind, this book offers examples of private equity strategies for investing in real estate.
About the Authors xvii
PART ONE Market Analysis and Forecasts 1
CHAPTER 1 Overview of the U.S. Real Estate Market 3Tim Wang and David Lynn
CHAPTER 2 Forecasting the U.S. Market 19David Lynn
CHAPTER 3 Recession Simulation and Its Effects on Real Estate 25Tim Wang, Alison Sauer, and David Lynn
CHAPTER 4 Subprime Fallout: The Impact on Commercial Real Estate 41Tim Wang and David Lynn
CHAPTER 5 Capital Markets: Dramatic Shifts and Opportunities 47David Lynn and Tim Wang
CHAPTER 6 The Bid–Ask Problem and Game Theory 53Jeff Organisciak, Tim Wang, and David Lynn
PART TWO Active Strategies 67
CHAPTER 7 Residential Land Investment 69Bohdy Hedgcock and David Lynn
CHAPTER 8 The U.S. Hotel Market and Strategy 103Tim Wang, Matson Holbrook, and David Lynn
CHAPTER 9 Global Gateway Industrial Market Investment 125Bohdy Hedgcock and David Lynn
CHAPTER 10 The Opportunity in Senior Housing 159Tim Wang and David Lynn
CHAPTER 11 Active Portfolio Management Using Modern Portfolio Theory 187David Lynn and Yusheng Hao
CHAPTER 12 Derivatives in Private Equity Real Estate 217Jeff Organisciak, Tim Wang, and David Lynn
CHAPTER 13 Opportunities in Infrastructure Investment 239David Lynn and Matson Holbrook
APPENDIX A Typical Land Development Pro Forma Analysis Three Scenarios 247
APPENDIX B U.S. Hotel Chain Scales 253
APPENDIX C Modern Portfolio Theory in Real Estate Portfolio Analytics 257
APPENDIX D Commercial Real Estate Indexes 259
APPENDIX E Example NPI Forecast Methodology 263
Selected Bibliography 265
Tim Wang, PhD, is Head of Macroeconomic Analysis and Strategy at ING Clarion. He has an MBA from New York University and a PhD from the University of Georgia.
Matson Holbrook is a former senior associate at ING Clarion. He holds an MS in real estate from New York University and a BS in cartography and geographic information systems (GIS) from the University of Wisconsin.
Bohdy Hedgcock is an Associate at ING Clarion. He holds a master¿s in urban planning from the University of Colorado.
Jeff Organisciak is a Senior Analyst at ING Clarion. He graduated from the University of Pennsylvania with a BA in economics and political science.
Alison Sauer is an Analyst at ING Clarion. She is a graduate of Tufts University where she earned a BS in mathematics.
Yusheng Hao is an Analyst at ING Clarion. He holds an MS in financial engineering from Baruch College, CUNY.