Real estate is a theme that has held firm amid the shocks triggered by COVID-19. A spike in home prices in some markets has come at the back of strong demand. Likewise, markets such as New York are once again bottoming out, as demand for office space improves. The sector also continues to see an increase consolidation activities and expansion to new markets.
Investment Banking For Real Estate
Industry veterans Ethan Schelin and Derek Uldricks are the latest to affirm confidence about the U.S real estate sector’s long term prospects. The duo have unveiled a new real estate investment banking firm that will provide banking services to sponsors of real estate projects nationwide.
Schelin Uldricks & Co is the new bank that will focus on raising institutional and private equity debt for sponsors looking to develop multifamily homes or senior housing, self-storage, and industrial properties. The firm will also provide finances for hospitality asset classes across the country.
According to Schelin, the firm will provide investment banking services to address changes that have taken place in the capital markets. The firm is to work with sponsors to identify capital partners and structure financing in such a way that it maximizes the success of projects.
Planon Group Netherlands Expansion
The launch of the investment banking service for the real estate sector coincides with Planon Group acquiring a majority share in Netherlands-based Result B.V. With the acquisition, the company gains access to vital software used to optimize the financial performance of real estate portfolios and projects.
Result cast itself as a leading software solutions provider used by real estate developers, asset managers, and housing corporations. Its suite of solutions includes asset-and-portfolio management, valuation management, and financial planning.
In view of the acquisition, Planon is to combine Result applications with its solutions to make one software suite. The plan is to develop a solution that can enable real estate owners and investors to optimize the performance of their property portfolio.
Likewise, Result acquisition should strengthen Planon’s plan to accelerate its future growth. For this reason, it will continue to expand its software arsenal to target a wider market in the vast real estate sector.
Compass Expansion & Listing
Amid the consolidation drive, Washington DC-based real estate brokerage firm Compass has confirmed it is expanding its footprint into the Baltimore area. The firm is expanding its territory from DC into the suburbs of Baltimore city and county to pursue growth opportunities. The expansion comes on the heels of the firm branching out to new markets in recent months, having already opened a new office in Annapolis.
In addition, it is recruiting agents to sell homes in the city and count. Expansion into Baltimore does not come as a surprise as the city’s real estate sector had a record year that resulted in record sales of $15.7 billion, a 20% increase from 2019 levels.
Compass is also looking to transition into a public company, having already filed the necessary paperwork with the Securities and Exchange Commission. The firm accrues its edge on leveraging advanced technology such as artificial intelligence and fast digital marketing tools.