Market Values of Your Current Investments

[Bobby Larsen]

It's a difficult time to be an LP, particularly those that invested between 2021 and 2022. You're likely reading the headlines about commercial real estate distress and wondering how your investments are doing. Kudos to the sponsors that are being transparent but many sponsors are not, and continue to provide the "we are not distressed" messaging up until the day that they send a capital call request to investors. Unless it's a catastrophic capex related issue, the need for a capital call does not come up overnight for sponsors and neither should it for LPs. 

To help LPs wondering what the market values of their investments are today, I thought it would be beneficial to have a thread where LPs can ask for valuations on specific properties and the sponsors in this forum can opine. By no means would these be exact estimates and they should not be solely relied on but with high level information, I think most sponsors would agree that they could provide feedback fairly accurate assessments within +/- 5%. We subscribe to a market research platform called Yardi which only provides information on multifamily properties 50 units and larger so if you are invested in a property that is 50 units or more, I would happy to provide quick "back of the napkin" valuation and methodology. You can DM me as well but there are many experienced sponsors on this forum that I think collectively can provide valuable feedback across the whole country.

[Bobby Larsen]

Quote from @Jay Hinrichs:

Quote from @Bobby Larsen:

@Jay Hinrichs

Ok so how does the average LP use or get that information I don't think they are going to spend 10 to 20k for it?  . I get it how if your the GP that would be a reasonable business expense.   Again just curious.  I suspect the bigger commercial brokers probably subscribe so they can share with their buyers/sellers ??

I doubt any LPs would subscribe to the service. I initial brought it up as an example of the type of current information I use to assess current market values which I would gladly provide feedback on properties. Very limited information is being communicated by sponsors, particularly those that used high leverage variable rate loans to acquire in 2021-2022, so LPs are commonly feeling left in the dark. Since there are a handful of good sponsors on here, I thought there could be a thread used as a resource for an LP to say “Hey, I invested in XYZ in 2021 and the sponsor is telling me everything is fine but I’m worried. What do you think the property/my investment is valued at today?”.