Real Estate: Flow of Real Estate Capital Surges

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By Mark Heschmeyer
Companies and funds reported raising $35.48 billion from investors in the second quarter for real estate-related deals and refinancings. The amount of funding raised brings the total inflow for the first six months of the year to more than $66.43 billion from approximately 1,075 funds and firms. It took nine months to raise the same amount last year. CoStar Group tracks the fundraising activity of almost 3,000 entities on an ongoing basis and adds about 125 new entities per month. Of the money raised in the second quarter, about $5.42 billion was to be used primarily to repay debt, while about $30.5 billion was primarily targeted for investments and acquisitions. Of that amount, approximately 18% or about $5.49 billion was earmarked for non-property-related investments, including debt, mortgage or securities purchases. That leaves approximately $25 billion of the money raised available for property investments. Of the total amount raised in the second quarter, $17.22 billion was from publicly offered shares in REITs and real estate operating companies with more than $5.55 billion specifically to be used debt repayment or refinancing. The other $18.54 billion raised in the second quarter came from private fund raising efforts and is all earmarked for new investment. Of that amount, pooled investment funds including private equity and hedge funds raised $9.96 billion. The highest percentage of funds raised (approximately 22%) was earmarked primarily for hospitality-related investments. Funds targeting debt and mortgages raised about 15% of the total. Office-, multifamily-, health care- and industrial-related amounts each accounted for about 10% to 13% of the totals.

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Pamela Diaz-de-Leon With an accomplished background encompassing Diplomacy, Architecture, Business and Film, Pamela Diaz-de-Leon brings to the real estate industry the entrepreneurial expertise which stem from her interdisciplinary experience. Her world wide network of distinguished personalities carefully knitted of relationships formed in her five years as the Cultural Attaché for the Instituto Cervantes, serving the King of Spain, in Chicago, and her Hollywood connections acquired while working with a recognized film distributor, give her the global platform in which she has developed her business with great success. Knowledgeable, informed and organized she holds ethics and integrity as her highest values thus, providing her customers with an excellence of service that ensures their utmost satisfaction and their continued loyalty to her work. Office. 305.677.5055 Cell. 305.720.8439
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