I recently saw a post regarding Apple deciding to permanently close the Uptown Apple store, partly due to COVID but also due to the riots and violence in the area.
This has also affected how capital sources view the Twin Cities for commercial real estate investments. Beside SaverNotes, I am also a commercial real estate investment banker raising debt and equity for my clients. Here is a recap of my recent encounter with a Chicago investor….
I had a conference call planned for the afternoon with a capital source out of Chicago seeking to provide equity for a multifamily development located in the Twin Cities. The investment professional and I had traded emails and calls last week to discuss a specific transaction and after their initial review wanted to get on a call with the sponsor to talk in more detail about the opportunity.
The development is located near the outer loop of 494/694.
The capital source contacted me Tuesday morning to state that their investment committee had taken a quick survey in the office and their lead investors and had quickly determined they were not interested in investing in the Twin Cities. They were concerned about the riots and violence they had seen on TV and read about in the news and how it was handled. The conference call was cancelled.
This is not the first discussion I have had with capital sources this summer about this topic. It comes up almost weekly as lenders and investors want to know what is going on here and where the property is located in relation to these events.
The long-term effects of the riots and violence will be felt in the commercial real estate market in the Twin Cities with investors worried about future investments, the possibility of rising real estate taxes and the exodus of office tenants to the suburbs.
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