5 at 5: Your Daily Digest for Real Estate Investing, 11/17/2020

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© Provided by Millionacres 5 at 5: Your Daily Digest for Real Estate Investing, 11/17/2020

South Korean investors bidding big for American CRE, what’s behind the SPAC boom, 60 years of REITs, is Weyerhaeuser a buy and will Airbnb be one?

In Today’s News

Korean Appetite for U.S. CRE Heats Up During the Pandemic

The Wall Street Journal [subscription required] reported today that South Korean investors are emerging as some of the most aggressive buyers of U.S. commercial real estate during the COVID-19 period.

Why it matters: That’s more competition for buyers and more buyers for sellers. This WSJ article also notes that the Korean action is making up for some backing off of the U.S. market by Chinese investors.

CRE Firms Join the SPAC Boom

GlobeSt.com says one trend that emerged this year is the rediscovery of the special purpose acquisition company (SPAC), sometimes called a blank check company, and that 178 SPACs of various types have launched this year, compared with 59 last year and 46 the year before.

Why it matters: CRE stakeholders, like others, are taking advantage of the ability for SPACs to bypass much of the traditional IPO process and that they can carry less risk for the sponsors. But there could be more for investors. This piece explains why.

Looking Back at 60 Years of REITs

It’s been six decades since real estate investment trusts (REITs) first came on the scene, and the structure is as vital as ever within the broader commercial real estate universe.

Why it matters: An interesting history lesson here from National Real Estate Investor can help guide investors from the past to the future.

Today on Millionacres

What Can the Airbnb S-1 Teach Us About the Upcoming IPO?

Airbnb has now filed its pre-IPO S-1, the long, detailed look at its books that gives potential investors the chance to finally learn what’s been happening inside this private company.

Why it matters: Millionacres’ Deidre Woollard dove into this deep water and surfaced with some possible concerns investors should consider when it comes time to buy, or not. Competition, local regulations, a pandemic pounding on its books — they’re all in here.

Is Weyerhaeuser a Buy?

Soaring demand for lumber to feed a housing and remodeling boom sparked in part by low interest rates and a raging pandemic has helped this timberland REIT post huge gains, but will it last?

Why it matters: Millionacres’ Liz Brumer argues that while the current boom makes sense, and although this is a very solid company, there are still longer-term reasons to be cautious. Make sure you look at the forest before buying these trees.

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