Real Estate Debt Has the Potential to Outperform Core Equity in 2020

January 2020

In this paper, we explore the opportunity created by a retreat by traditional lenders in response to increased regulation and general risk aversion, and market inefficiencies in specific areas of the capital stack, resulting in the mispriced asset class of “core-plus” debt – mezzanine lending against stabilized, institutional quality assets, with the potential to outperform core equity and broader fixed income returns, with lower risk.