A CRE Sunset? Commercial Real Estate Debt is at a Record High–and Rising
January 24, 2024
In this edition of Above the Line, we see a record amount of commercial real estate debt, a 29-year low in home sales volume, and Blackstone's significant investment in Tricon Residential.
Let's dive in.
The Bill is Coming Due on a Record Amount of Commercial Real Estate Debt
Wall Street Journal
An in-depth analysis of the looming challenge in commercial real estate. In 2023 $541 billion in CRE debt came due, the highest amount ever for a single year. Commercial-debt maturities are expected to continue rising, with more than $2.2 trillion coming due between now and the end of 2027.
Home Sales Sink to a 29-Year Low in 2023
Realtor.com
Home sales fell in December to the lowest level in more than a decade as demand continued to exceed the supply of listings for sale, pushing prices up to close out the year. Sales activity on a monthly basis was at the lowest level since August 2010.
Blackstone to take Tricon Residential private for $3.5 billion
Reuters
Blackstone has strategically acquired Tricon Residential, purchasing all outstanding shares at a 30.35% premium. This move signals Blackstone's assessment of Tricon Residential as significantly more valuable than its book price.