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Great investing requires balancing conviction and detachment, acting boldly on opportunity while staying calm enough to question assumptions and adapt when facts change. For those overseeing managers, understanding this balance reveals what distinguishes a merely good investment process from a truly exceptional one.
The findings uncovered surprising results on the vibrancy of local economies, outperformance in key real estate market fundamentals, and greater stability across the past 20 years.
Prevailing institutional groupthink has long preferred primary markets as the de facto target for core and value-added real estate strategies. However, nascent research suggests that secondary and tertiary markets in the Western US may offer not only competitive but in many cases superior economic stability and real estate performance. Drawing on two decades of comparative data across economic indicators and real estate fundamentals, this article presents a comprehensive reassessment of the investment potential in secondary and tertiary Western US markets. By analyzing long-run patterns in GDP growth, job creation, population trends, and commercial real estate metrics across multifamily and industrial sectors, we offer a robust, data driven perspective on why these smaller markets merit institutional attention. As capital allocators face a structurally shifting landscape, rethinking geographic allocation could prove essential not just for alpha generation but also for portfolio resilience in the face of systemic volatility.
Cities such as Bakersfield, Calif.; Orem, Utah; and Loveland, Colo., aren’t typically top of mind for institutional investors. But groups that once bypassed such secondary and tertiary markets in favor of major metros are now putting these smaller markets on their radar.
Despite misconceptions around market performance of secondary and tertiary markets in the Western United States, these markets prove to be more economically robust and less volatile than primary markets, according to Graceada Partners’ research reports, Economic Vibrancy in Secondary & Tertiary Markets and Real Estate Fundamentals in Western U.S. Secondary & Tertiary Markets.
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Folsom-based TOR Wealth Advisors has raised $2.6 million in equity for a pooled investment fund, according to afiling with the Securities and Exchange Commission.
Outpost market specialists Graceada Partners released a ranking of top tertiary cities in the US. NAREIM spoke with principals and co-founders Joe Muratore and Ryan Swehla about their methodology, ‘quantifying’ the quality of life factors that make these markets attractive, and building out their acquisition system in new markets.
Graceada Partners has acquired The Meridian at Lakewood, a 96-unit, garden-style apartment complex in Lakewood, CO, a western suburb of Denver. The investment is part of Graceada Partners Fund III.
Employees lead the shift from primary and secondary cities to more affordable and livable areas with the rise of hybrid work environment, according to Graceada Partners in its The Emergent Value of Third City Markets report, which ranks tertiary markets that represent strong potential for real estate investment.
Primary markets (such as Chicago, Los Angeles, New York and San Francisco), and hot secondary markets (such as Austin, Charlotte, Denver and Phoenix) have gotten crowded and expensive when real estate assets are performing well, begging the questions: How much money is being left on the table in tertiary markets? What are the challenges to investing in these markets, and how are they best evaluated and accessed?
Traditionally an underserved segment of the housing market, Class B apartments — underpinned by strong fundamentals and outsized demand — are an attractive investment opportunity, one potentially more compelling than high-end Class A units.
For Graceada Partners, a value-add investor which has been operating in secondary and tertiary markets in California since before the Covid-19 pandemic, gig economy and freelance workers are institutionalizing these outpost economies. NAREIM speaks with Ryan Swehla, principal and co-founder, on the opportunities that have led to the firm’s reported net IRR of 67% and net equity multiple of 1.94 across nine realized assets.
Graceada Partners, a California-based real estate private equity firm, has become a signatory of the United Nations-supported Principles for Responsible Investment (PRI). They join an exclusive group of corporations from more than 130 countries around the world who pledge to incorporate ESG initiatives into their investment decision-making.
A virtual, digital, and information-oriented economy comes with consequences: People can work wherever they want and the work they do takes less time because they have the technology aiding every step of the way…
“The secular shift in how we work, live, and think about our life is opening opportunities in outpost economies around the U.S.,” says Graceada Partners in a new report. These are defined as smaller cities with a quality of life that draws workers who have become untethered from their current living situation or location.
Ryan Swehla, co-founder and principal at Graceada Partners, discusses how new hybrid work models and shifting attitudes have prompted moves to secondary and tertiary markets with a high quality of life. (01/2022)
Our 5 predictions on how this impacts work and life
Commercial Real Estate Experts elaborate on how market forces and the perpetuation of the pandemic have propelled this economic phenomenon
CVS Health is planning to close approximately 300 stores a year for the next three years, prompting the store to lower its end-of-year guidance.
The holidays are quickly approaching. And for multifamily operators, that means the annual onslaught of package deliveries is almost here.
Of the ten largest industrial projects underway in the US this year, Amazon accounts for eight of them, with a total footprint of 28.3 million square feet—an area about the size of New York City’s Central Park, according to CommercialEdge.
At the same time, investment sales prices are on a steady climb for industrial products, averaging roughly, as of June 2021, $94 per square foot. Unless Amazon is a tenant. In that case—and since the beginning of last year, buildings with Amazon as a tenant accounted for 7% of all sales volume—investors will gladly pay a premium for the asset, according to CommercialEdge, of $145 per square foot.
MODESTO, CA - Graceada Partners and Osso Capital announced the acquisition of The Edge at Lakewood on 1401 Lakewood Ave in Modesto, California. The 196-unit apartment community is located a few miles outside of downtown Modesto and within walking distance of Lakewood Elementary School.
A few years down the road, real estate may look very different than it does today, as “hotelization” trends continue to pick up within the various asset classes.
The partners acquired the asset in an off-market transaction. The acquisition is an investment from Graceada Partners Fund II and Osso Multifamily I.
The multifamily property, The Edge at Lakewood, was constructed in 1985 and underwent partial renovations between 2019 and 2020. Graceada Partners and Osso Capital intend to implement continued renovations on the property’s clubhouse and fitness facility. The partners will additionally add a pet park and sustainable features.
Modesto, CALIFORNIA – April, 2021 — Graceada Partners and Osso Capital are pleased to announce the acquisition of The Edge at Lakewood on 1401 Lakewood Ave in Modesto, California. The 196-unit apartment community is located a few miles outside of downtown Modesto and within walking distance of Lakewood Elementary School.
Published at research world.com
The immediate future of work in North America, where our research firm, Bazis, has an office (specifically Chicago) is more predictable. Many professionals continue to work remotely or maintain some kind of hybrid approach. This trend may continue into the foreseeable future. According to Upwork, a freelancer platform in the U.S., nearly 42% of the American workforce continues to work remotely and not all will return to an office.