The Great Inversion
Beginning in the 1920s with the rise of the automobile, wealth and business steadily moved out of crowded cities and into the suburbs. This resulted in widespread decline in the urban core. The term “inner city” became synonymous with poverty and crime.
But since the year 2000, this trend has reversed, and wealth and high-wage jobs are returning to the urban core.
Between 2010 and 2015, average annual growth rates of city centers were double their average annual growth rates from 2000-2010.
The number of college-educated people age 25-34 living within city centers Is up 37% since the year 2000.
Over the next decade, job growth in big, dense cities is projected to outpace job growth in all other areas, including both suburbs and smaller cities.
Globally, 60-70 million people will be added to urban populations every year for the next 10 years.
This is what Alan Ehrenhalt called “The Great Inversion,” the return of wealth and business from the suburbs to the urban core.
The Great Inversion opens up a wide range of opportunities for real estate investors. As population increases in the urban core, it drives demand for office, retail, and multifamily housing.
Most real estate operators, however, are not well positioned to take advantage of the great range of opportunities the urban renaissance offers.
Most real estate operators focus on just one or two asset classes or project types, such as value-add apartments or office buildings
Lack of Expertise
Many funds simply allocate investor capital, without having any direct experience in developing or managing real estate
With many operators focusing on similar asset types, there is a concentration of investors competing for the same pool of properties, driving up prices and lowering returns
Lack of Diversification
When the multifamily business softens, a portfolio of mainly multifamily takes a significant hit compared to one that is more diversified
Lower Yield Projects
Funds that simply allocate investor capital often lack the expertise and connections to capitalize on off-market projects or complex, high return deals
Funds that specialize in one or two areas miss better opportunities in other asset classes
The CityLands Solution
Our team has over 70 years of combined experience across multiple asset classes
We can capitalize on opportunities outside of overpriced and overcrowded asset classes. If retail is overheated, we can shift to an asset class with lower competition and better total returns
We carefully vet and select a diversified portfolio of properties from multiple asset classes and markets.
Higher Yield Projects
Our deep experience and industry connections allow us to execute complex redevelopment and mixed-use projects that generate higher returns
Off-Market Deal Flow
We can source low competition, off-market opportunities by utilizing our extensive industry contacts and process for deal sourcing and analysis
Preferred Buyer Status
We have developed an outstanding reputation for fair dealing and surety of closing that enables us to obtain first look and preferred buyer status on properties that less experienced operators would find difficult to access.