Each year, the IMN organization hosts a cast of more than 1,000 real estate professionals in Laguna Beach, California for its “Winter Forum on Real Estate Opportunity and Private Fund Investing”. The event is an interesting one because it spans real estate asset classes and investing disciplines and includes a wide array of investors and capital sources. Broadstone has attended for the last several years, and this year I attended with our CEO Chris Czarnecki in tow. Continue reading
Philanthropy is an important tenet of the Broadstone culture. It’s part of who we are as a team. What better time than the holiday season to prioritize giving back? For the second year in a row, we are proud to participate in a campaign we have coined ‘Jolly Jeans’—colleagues have the option to wear jeans to work for three weeks in December in exchange for a donation to a charity of one’s choice. Continue reading
Investing 101 teaches us that portfolios should include a variety of diverse assets in order to help protect from downside risk and lower volatility. Frequently, investors are instructed to include a mix of US equities, foreign equities (both emerging and developed markets), investment grade bonds, and high yield bonds in their portfolios. However, the effectiveness of this diversification strategy varies, depending on the correlation among constituent assets.
Over the last decade, industrial real estate has reached a remarkable level of performance and success. Rents have risen rapidly, vacancy has plummeted, and demand has outstripped supply. Continue reading
Back in 1967, Lyndon Johnson was our President, Sgt. Pepper’s Lonely Hearts Club Band topped the Billboard charts, a gallon of gas only cost 33 cents, and the homeownership rate was 63.3%.
In the second quarter of 2015, Barack Obama was our President, See You Again topped the Billboard charts, a gallon of gas cost $2.80 and was considered cheap, and the U.S. homeownership rate fell below 63.5% for the first time in 48 years! Continue reading
Many QSR (quick-service restaurant) franchisees work with brands (e.g. Taco Bell) that allow the franchisee to own the underlying real estate in addition to the restaurant operating companies themselves. While this may provide necessary additional control over the operations, it also carries additional risk (environmental, market value, and eminent domain, to name a few) and can inhibit the franchisee from accessing all-important capital needed to grow. As we all know, the vibrancy of many QSR brands can change dramatically… and sometimes quickly. Having available growth capital allows franchisees to take advantage of positive market dynamics and trends. Continue reading
In 2014, Broadstone Net Lease (BNL) closed over $245 million of acquisitions. Currently, the REIT owns 248 properties across 32 states. BNL’s strong history of successful acquisitions has been possible due to an availability of debt and equity capital when attractive triple net lease properties come to market. Broadstone’s Capital Markets team raises equity throughout the year and the Acquisitions team seeks to deploy that capital in a timely manner so that shareholders can achieve attractive returns. BNL typically buys properties (or portfolios of properties) valued from $5 million to $100 million and targets a 50% leverage ratio, portfolio-wide. Continue reading
“Yield…I don’t need no stinkin’ yield.”
Or do you?
I spend my days speaking with wealth advisers, trust officers, clients, prospects and shareholders. It’s a fulfilling job that, along with my incredible team, I tackle with enthusiasm each day. Since my arrival at Broadstone nearly 3 years ago, there has been one common and resounding theme in my discussions: there is no yield to be found in the fixed income marketplace. None. Nada. Nil.
Well, not quite none, but with a 1-yr CD at 0.23% and the 5-year treasury at 1.329% yield, we might as well be speaking about nada. Consider that the average pace of inflation over the past 50 years has been 4.0%. Even in the past 10 years when inflation ran at a measly 2.1% per year, those rates are terrible. You’re barely staying afloat once inflation adjusted returns are calculated on those yields. And clients need income. So what is an investor to do? Continue reading