Jan 28, 2024 - 0 Comments - Observations, Trends -

Video: Buligo Capital CEO Itay Goren Shares Institutional Foreign Investor Views on U.S. Commercial Real Estate Market

The Discussion: Navigating the Landscape of Commercial Real Estate

In a recent episode of “America’s Commercial Real Estate Show,” the show welcomed Itay Goren, founder and CEO of Beluga Capital, a public company based in Israel with investments in various property types across the United States. The conversation delved into the current market conditions, investor sentiments, and emerging trends in commercial real estate (CRE) throughout the United States. Goren’s views on debt, equity, and performance of retail, industrial, senior housing, and multifamily properties moving forward were shared in this wide ranging discussion.

Commercial Real Estate Market Dynamics Amidst Global Challenges

The dialogue commenced with a reflection on the challenging times facing Israel, where Beluga Capital is based, with both hosts expressing solidarity with those affected by ongoing crises. Despite the backdrop of global uncertainties, the focus shifted swiftly to the CRE landscape, with Goren highlighting the evolving dynamics of raising capital in the current market.

Shifting Investor Appetites and Market Opportunities

Goren pointed out the noticeable shift in investor appetite compared to previous years, attributing this change to increased interest rates and a broader range of investment alternatives. However, despite the subdued appetite, Beluga Capital managed to secure investments and close deals, indicating pockets of opportunity amidst the market flux.

Impact of Federal Reserve Policies and Financing Landscape

Discussion then turned to the recent Federal Reserve announcements regarding interest rates, with Goren noting a subsequent easing in treasury rates and increased lender flexibility. This shift in financial dynamics hinted at a potentially more active market in the coming year, driven by renewed investor interest and improved liquidity in the debt market.

Projections for Property Performance and Investment Strategies

Looking ahead, Goren outlined a cautiously optimistic outlook for property performance, citing factors such as upcoming property deliveries and the impact of interest rate adjustments. Despite short-term challenges, Beluga Capital remained bullish on sectors such as multifamily, senior housing, and industrial, buoyed by favorable supply-demand dynamics and anticipated rent increases.

Not part of the discussion but notable for this site given that Hawkins Commercial Realty is Miami based is that the performance of Miami industrial and multifamily properties have been very strong. The run up in prices in Miami industrial property were recently highlighted in a post, Charting the Remarkable Post-COVID Run of Industrial Property Prices in Miami-Dade.

Navigating Sectoral Opportunities and Risks

The conversation delved into specific sectors, with insights shared on senior housing, multifamily, industrial, and retail properties. Goren emphasized the resilience of grocery-anchored retail centers and highlighted opportunities in smaller industrial properties, driven by last-mile logistics demand and favorable occupancy trends.

Construction Cost Dynamics and Investment Goals

Addressing construction cost dynamics, Goren acknowledged recent cost escalations but expressed optimism for a potential moderation in the near future. Looking ahead to 2024, the overarching goal for Beluga Capital was to capitalize on market opportunities across diverse property types while maintaining a balanced approach to risk and return.

Global Investment Trends and Foreign Capital Inflows

In response to queries about foreign investment trends, Goren noted an increasing allocation of capital from foreign investors into the U.S. CRE market. He highlighted the U.S. market’s attractiveness due to its transparency, liquidity, and stability, indicating a reservoir of capital poised for deployment in the coming months.

Closing Remarks: The Ever-Evolving Real Estate Landscape

As the conversation drew to a close, Goren underscored the enduring appeal of real estate as an asset class and the resilience of the U.S. market amidst global uncertainties. The dialogue concluded with a nod to the importance of continuous learning, adaptation, and a spirit of optimism as stakeholders navigate the ever-evolving landscape of commercial real estate.

In summary, the discussion between the show host and Itay Goren provided valuable insights into the current state of the commercial real estate market, investor sentiments, and emerging trends. Despite challenges, opportunities abound for astute investors willing to navigate the dynamic terrain of the CRE landscape.

A Bit About Itay Goren & Buligo Capital

Itay Goren stands as a pivotal figure within Buligo, holding the position of Chief Executive Officer. His role encompasses a wide array of responsibilities, ranging from strategic planning and investment analysis to business development and fundraising initiatives. With a wealth of expertise in the realm of private equity real estate, Mr. Goren boasts a distinguished track record in sourcing, negotiating, structuring, financing, and successfully closing high-value transactions, investment programs, and funds.

Before co-founding Buligo, Mr. Goren held a prominent position overseeing a multi-division operation within a prominent Israeli investment firm for over 11 years. During this tenure, he steered substantial equity investments exceeding hundreds of millions of dollars on behalf of major institutional investors and high-net-worth individuals. His academic background is equally impressive, having graduated magna cum laude from Tel Aviv University with a BA in Economics and a Bachelor of Laws. Additionally, he holds a Master of Business Administration from Northwestern University’s esteemed Kellogg School of Management.

Beyond his professional accomplishments, Mr. Goren has also served with distinction as a Major in the Israeli Defense Forces, further exemplifying his leadership capabilities and commitment to service.

Itay Goren’s firm, Buligo Capital, stands out as a prominent player in the global real estate investment sphere, offering investors opportunities to participate in diverse ventures alongside seasoned operators. Boasting a strategic presence with offices in Israel and the United States, coupled with strategic alliances spanning the globe, Buligo Capital provides its clientele with a comprehensive array of investment avenues tailored to varying risk profiles.