Macro Realty Advisors, LLC

05/08/2025

2025: A Landmark Year for Macro Realty Advisors

As we approach the halfway point of 2025, we want to extend our gratitude to our clients for trusting us with some of their most valuable assets. It’s been one of our busiest years in our 10-year history, and we’re proud to showcase a few standout assignments we’ve completed so far:

🏥 72,000± SF Hospital Redevelopment – Appraisal for a vacant hospital, recently gutted to the studs, along with five medical office buildings totaling an additional 17,400± SF, bringing the total portfolio to approximately 89,400± SF. The property is slated for conversion into a state-of-the-art, 180-bed inpatient drug rehabilitation center with an on-site detox unit.

🏕️ 115-Space RV Park – Featuring 115 RV spaces, 6 cabins, 14 tent sites, and a 4,000± SF clubhouse with an office, laundry center, and an upstairs one-bedroom apartment. Amenities include a stocked fishing lake, swimming pool, dog park, propane fueling station, and sewage dump station.

🏇 60-Acre Equestrian Estate – Featuring a 7,000± SF main residence with a heated in-ground pool, 285± SF pool house, 2,000± SF guest house, and a 6,700± SF, 20-stall horse stable with a 650± SF apartment for overnight veterinary care. Additional improvements include a 16,600± SF indoor riding arena with a second-story viewing area, a gated front entry with a video call box, and a 20-stall paddock for small livestock.

🏗️ Cement Plant (Under Construction) – Appraisal for an 80% complete cement manufacturing facility on 11± acres, featuring a 9,000± SF warehouse and extensive underground drainage, filtration, and plumbing systems to handle toxic cement runoff.

🏛️ 7,000± SF Mansion – High-end residential appraisal for an expansive estate property.

If you need an accurate, timely appraisal for financing, acquisition/disposition, estate & gift planning, or litigation, reach out to us for a proposal. We offer Retrospective, As-Is, and Prospective valuations for existing, under construction and proposed real estate developments. Visit us at MacroRealtyAdvisors.com for more information.

Thank you for trusting us with your valuations!

02/16/2025

Dreaming of owning your own home but unsure where to start? My new book breaks down the home-buying process in a simple, easy-to-understand way—helping you turn your dream into reality! Check out: How to Finally Buy Your First House, a manual for the first time home buyer.

Buying your first home can feel overwhelming—but it doesn’t have to be. This comprehensive guide walks you through every step of the home-buying journey, empowering you with the knowledge and confidence to make informed decisions. From improving your credit score to qualifying for a mortgage to understanding the key players involved in the process, this book simplifies complex real estate concepts into clear, actionable steps.

You'll learn how to:
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Written by Andrew Bernstein, MSRE, a 23-year real estate veteran who has appraised billions of dollars' worth of properties worldwide—from single-family homes to skyscrapers—this book delivers expert insights in an easy-to-understand format. Whether you're months away from buying or just starting to explore the idea, this guide will help you take control of the process and move forward with confidence.

How to Finally Buy Your First House, a manual for the first time home buyer: an e-book Buying your first home can feel overwhelming—but it doesn’t have to be. This comprehensive guide walks you through every step of the home-buying journey, empowering you with the knowledge and confidence to mak...

01/31/2025

Blackstone released their earnings today, did you catch them? Why are Blackstone's earnings so important? Because Blackstone is the largest commercial real estate owner on the planet. According to CoStar: "Private equity giant Blackstone said it had one of its best quarters in 2 1/2 years, but real estate was not among its better performers.

The New York-based firm's fourth-quarter results were tied strongly to its infrastructure investing, which includes data centers. However, pure real estate investments were challenged by volatility in Treasury yields and interest rates. Blackstone funds that own properties produced negative results in the quarter.

Still, Jon Gray, Blackstone's chief operating officer, is committed to real estate as conditions appear ripe for expanded activity. That strategy may include a return to some office investing.

Blackstone is said to be in talks to buy 1345 Avenue of the Americas, a 50-story New York City skyscraper spanning 2 million square feet owned by Fisher Brothers, Bloomberg reported Thursday. Blackstone and Fisher Brothers declined to comment to CoStar News.

Law firm Paul, Weiss, Rifkind, Wharton & Garrison signed New York's largest office deal of 2023 when it moved its headquarters to about 765,000 square feet across 18 floors at 1345 Avenue of the Americas as part of a 20-year deal, CoStar data shows. Fisher Brothers owns the property in partnership with JPMorgan Asset Management, which didn't respond to a request for comment.

If Blackstone bought even a stake in the property, it would line up with a trend that shows office investing has rebounded in New York. The market saw a pickup in the fourth quarter of property recapitalizations in which new partners are brought in to purchase a joint interest. CoStar data shows $538 million of such New York office deals last quarter. That's up from just $35 million in the previous two years combined.

Ready for recovery
A lot of interest rate volatility has been absorbed by the market, according to Gray, setting up a more stable environment going forward. That situation puts Blackstone in an advantageous position: The firm is sitting on billions to invest in real estate.

Blackstone’s largest real estate fund, Blackstone Real Estate Investment Trust, appears to be back on track. The REIT raised $905 million last year, up from $813 million a year earlier, Blackstone said Thursday. In addition, the REIT was able to retain more of that capital as Blackstone said investors are sticking with the fund. Share buybacks in the REIT have fallen 97% from a recent peak that occurred when fears over high interest rates slowed down the market.

“The path of travel is clear, the slope may be a little different,” Gray said on Blackstone’s fourth-quarter earnings conference call. “The reason we're leaning in is because we see that we're firmly on this recovery path for real estate.”

Several factors have emerged, Gray noted:

A healthy U.S. economy is leading to demand for logistics properties, apartments and hotels.
New supply of industrial and multifamily properties has declined since 2022, setting up existing properties for better leasing and rent growth.
The availability of capital needed to regenerate dealmaking has improved.
Blackstone’s commitment to real estate is evident in its real estate spending, which has been increasing, according to the New York firm.
Blackstone deployed $25.3 billion into real estate investments in 2024, including the deal to take Retail Opportunity Investments private and the Tokyo Garden Terrace Kioicho acquisition in Japan. The amount deployed in 2024 was nearly $9 billion more than the $15 billion the year prior.

Blackstone’s real estate assets under management totaled $315.4 billion at the end of the fourth quarter, down from $336.9 billion at the end of 2023. The firm received $27.9 billion to flow into real estate funds for the year, down from $53.9 billion a year earlier.

Infrastructure focus
Infrastructure activity led Blackstone to a strong quarterly performance, CEO Stephen Schwarzman said on the call.

“The largest single contributor to the firm's financial results in the fourth quarter was our dedicated infrastructure strategy [Blackstone Infrastructure Partners], which generated $1.2 billion in fee revenues,” Schwarzman said. “BIP has delivered remarkable investment performance since inception only six years ago, including 17% net returns annually for the commingled strategy. This performance has fueled exceptional growth, with assets under management today of $55 billion up 34% just in the past year alone.”

Blackstone’s infrastructure funds invest in areas such as energy transition, transportation, digital initiatives, and water and waste. The funds also co-invest with Blackstone’s real estate funds in data centers, a sector of real estate that's seen soaring demand worldwide.

Blackstone has grown its investment in data centers from the third quarter, with leased properties now totaling over $80 billion. In the fall, Blackstone said its wholly owned data center owner, QTS Realty Trust, did more leasing last year than the preceding three years combined.

Blackstone’s net income rose to $1.3 billion for the fourth quarter from the year-earlier $704 million, while jumping to $5.4 billion for the year from $2.8 billion for 2023."

Give us a call for any real estate questions you may have or visit us at: MacroRealtyAdvisors.com

01/28/2025

According to CoStar: "Short-term property lending by nonbank lenders is surging, with the financing less than a month into this year already outpacing the entire first quarter of 2024.

As major banks are still dealing with write-offs for bad loans, private lenders are increasing the activity along with bond offerings for investors on that debt. The early showing is seen by some property professionals as a positive sign that capital could pour into commercial real estate.

One of the latest examples is LoanCore Capital, an alternative lending joint venture of Singapore-based global investment firm GIC and the Canada Pension Plan Investment Board, that is set to go to market next week with a $1.15 billion commercial real estate collateralized loan obligation. LoanCore offers short-term loans at higher interest rates than banks on new properties or commercial real estate to help bridge transitions as owners seek tenants.

It would be the fourth such offering already this year, by four different nonbank lenders. Those offerings have a combined loan balance of $4.43 billion — surpassing all of first-quarter activity last year, according to CoStar data. Two other lenders have filed preliminary notices of additional offerings actively in the works.

The offerings have kicked off what is expected to be a busy year for floating-rate, bridge lending by private lenders, according to Moody’s Ratings and Fitch Ratings, two bond-rating firms that both evaluated the LoanCore offering.

Borrowing rates tied to the benchmark Secured Overnight Financing Rate, or SOFR, started falling in the back half of last year, according to Moody’s in its 2025 commercial real estate lending outlook. Before the rate decline, many floating-rate borrowers had a financial incentive to stick with their previous loan and the extra cost of that debt. The rate improvements brought bridge lenders back to the market.

“With short-term rates on the decline, some borrowers are gravitating toward floating-rate debt to fund property repositions and lease-up strategies, drawn to the flexibility it offers with prepayments and extensions,” said Chad Littell, national director of U.S. capital markets analytics for CoStar Group. “Nonbank lenders have eased underwriting standards, while regional banks are tighter due to regulatory pressures.”

During the COVID-19 pandemic that put pressure on lending with high interest rates, large banks — including Bank of America and U.S. Bancorp — reported rising loan delinquencies. The outlook has improved gradually, though, as traditional lenders say they are writing off fewer unpaid loans.
M&T Bank reported less exposure to commercial property loans in the fourth quarter but also a drop in distressed, or criticized, loans. The results were similar to those posted this month by other banks, including Wells Fargo and PNC.

Deal flow
The growth in nonbank financing options has also breathed new life into dealmaking, with fourth-quarter transaction volumes up 43% from the year-earlier totals — a welcome tailwind for an industry that thrives on the flow of transactions, Littell said.

LoanCore originated six loans totaling $202.1 million in 2023, and 19 loans totaling $904.2 million in 2024, most of which will be contributed to the upcoming LNCR 2025-CRE8 bond offering, according to Fitch.

LoanCore “began originating more aggressively in the second quarter of 2024 after intentionally slowing origination activity in 2022 and 2023 due to interest rate and [commercial real estate] volatility,” Fitch said in its analysis of LoanCore’s upcoming deal. LoanCore “plans to increase its floating-rate origination volume in 2025 to $3 billion.”

LoanCore did not respond to requests for additional information.

Included in the $4.43 billion in expected loan deals this month are two additional commercial real estate collateralized loan obligations, including what is expected to be another $1 billion offering from FS Credit Real Estate Income Trust, a nontraded real estate investment trust.

The commercial real estate “market looks set to enter recovery mode in 2025, fueled by strengthening fundamentals, growing investor confidence, and stabilizing interest rates,” the REIT said in a Securities and Exchange Commission filing. “We believe the opportunity for alternative lenders, such as mortgage REITs and debt funds, to deploy capital at attractive yields with lender-friendly terms will be significant as transaction volume improves, and banks remain constrained.”

Earlier offerings circulated in January came from lenders ACRE Capital, Argentic and MF1 REIT."

MacroRealtyAdvisors.com

01/25/2025

📉 A Historic Low for Existing-Home Sales in 2024 📉

The housing market faced significant challenges in 2024, with existing-home sales hitting their lowest level in nearly 30 years, according to recent data. Total annual purchases dropped to just 4.06 million, reflecting the pressure of record-high median home prices—reaching $407,500—and mortgage rates peaking at 7.22%.

But it’s not all bad news! December showed signs of stabilization, with sales ticking up by 2.2% month-over-month. Factors like stronger job and wage growth, combined with slightly increased inventory, are helping bring balance back to the market.

🏡 Our Perspective at MacroRealtyAdvisors.com:
The current real estate climate may feel daunting, but opportunities still exist for those who plan strategically. Whether you're considering buying, selling, or investing in this evolving market, having the right guidance is essential.

With our deep understanding of market trends and local insights in Charlotte, MacroRealtyAdvisors.com is here to help you navigate these conditions and make confident decisions. Let us help you find your opportunity in 2025!

📞 Ready to talk strategy? Contact us today.

01/25/2025

🏡 Rising Mortgage Rates and Housing Affordability 🏡

Take a look at this chart showing the 30-Year Fixed Mortgage Rate trends over the past few years. Rates were historically low in 2020, sitting around 3%, which helped boost home affordability and drove strong buyer demand. Fast forward to today, and we see rates hovering closer to 7%, marking a significant shift in the housing market.

So, what does this mean for you?

🔑 For Buyers:
Higher mortgage rates directly impact your monthly payment and overall affordability. For example, the same home priced at $400,000 now costs significantly more per month than it did when rates were 3%. Buyers may need to adjust their budgets or consider more affordable options to match today’s conditions.

🔑 For Sellers:
Rising rates can impact demand, but the silver lining is that inventory remains limited in many areas, keeping prices relatively stable. If you’re thinking of selling, proper pricing and strategic marketing are key to attracting buyers.

💡 Our Take at MacroRealtyAdvisors.com:
While higher rates create challenges, opportunities still exist for both buyers and sellers. Whether you're navigating these changes as a first-time buyer, seller, or investor, we’re here to help you assess your options and make informed decisions in this evolving market.

📞 Contact us today for a personalized consultation. Let’s create a strategy that works for you in 2025!

12/26/2024

Navigating Shifting Market Dynamics in Commercial Real Estate: As we close out 2024, the commercial real estate market continues to evolve, marked by both challenges and opportunities. According to the MSCI Real Assets report, November saw a 0.5% year-over-year decline in the RCA CPPI National All-Property Index. While this reflects ongoing pressures, the story is not all negative. Prices have risen for six consecutive months, including a 0.3% gain in November—a sign of potential stabilization.

The drivers behind these shifts remain multifaceted. Elevated borrowing costs continue to weigh heavily on values, but other factors, such as changing tenant preferences, are shaping outcomes across asset classes.
• Office Properties: Central Business District (CBD) offices saw a slight monthly gain of 0.4%, though values are still down 50% from their March 2022 peak. Suburban office prices have been more resilient, with only a 16% decline from their peak.
• Industrial Properties: A standout performer, industrial real estate reached new price highs in November, with a 4.7% annual gain. Demand from e-commerce and supply chain adjustments continues to bolster this sector.
• Apartments: After peaking in July 2022, apartment prices are down 20%, including a 5.7% drop year-over-year.
• Retail Properties: For the first time in two years, retail property prices posted an annual gain of 0.7%, signaling a potential turnaround in the sector.

At MacroRealtyAdvisors.com, we understand how critical it is for stakeholders to navigate these market dynamics with confidence. Our expertise in real estate valuation ensures our clients have the insights they need to make informed decisions in any market condition.

Whether you’re navigating opportunities in industrial real estate, repositioning assets, or assessing portfolio risks, we’re here to guide you every step of the way.

Let’s talk about how we can help you unlock the potential in today’s market. Visit MacroRealtyAdvisors.com to learn more.

Macro Realty Advisors is a top real estate appraiser in Charlotte, North Carolina. We provide residential & commercial real estate appraisal services in Mecklenburg County.

12/19/2024

📉 Home Builder Stocks Take a Hit: What This Means for the Market

At MacroRealtyAdvisors.com, we’re always keeping an eye on market trends that could impact the real estate industry. Recently, home builder stocks have faced significant challenges, with Lennar—a leading home builder—seeing its shares drop nearly 8% in after-hours trading. This comes after the company missed both fourth-quarter and full-year earnings expectations.

Here’s a quick breakdown:
🔹 Quarterly Performance: Lennar reported earnings of $4.06 per share (or $4.03 adjusted), falling short of the $4.15 expected. Revenue came in at $9.9 billion, just shy of the $10 billion forecast.
🔹 Annual Results: For the year, Lennar earned $14.31 per share on $35.4 billion in revenue. While full-year revenue slightly exceeded projections, earnings fell short.

Lennar’s executive chairman, Stuart Miller, highlighted the challenges posed by rising mortgage rates, which slowed sales during the fourth quarter. He emphasized the company’s focus on a volume-based strategy, prioritizing sales and cash flow while transitioning to a more asset-light business model.

Looking ahead, Lennar expects to deliver 17,000–17,500 homes in Q1 and 86,000–88,000 in 2025. Gross margins for the first quarter are projected to be between 19% and 19.25%.

As market conditions continue to evolve, understanding these trends is crucial for buyers, sellers, and investors. At MacroRealtyAdvisors.com, we’re here to provide expert insights to help you navigate these changes in the real estate landscape.

💬 Have questions about how these market shifts could affect your property values? Reach out to us today!

Macro Realty Advisors is a fast, high quality real estate appraiser in Charlotte, North Carolina. We provide residential & commercial real estate appraisal services in Mecklenburg County.

12/14/2024

The Office Property Crisis: How MacroRealtyAdvisors.com Helps Navigate the Turbulence

The commercial real estate (CRE) market is facing unprecedented challenges, and office property values are feeling the brunt of the storm. For regional banks and smaller lenders, this turbulence is translating into a sharp increase in CRE loan modifications, signaling rising distress across the sector. Here at MacroRealtyAdvisors.com, we stay ahead of these trends to provide actionable insights and guidance to our clients in Charlotte, NC, and beyond.

A Growing Wave of Loan Modifications

Recent data reveals that smaller banks are turning to loan modifications at a rapid pace. According to a Moody’s Ratings report, banks with less than $100 billion in assets modified 0.32% of their CRE loans during the first nine months of 2024. While this may seem like a modest number, it marks a significant rise from just 0.1% in the first half of the year. In comparison, medium-sized banks modified 1.93% of their CRE loans, and the largest institutions reported a 0.79% modification rate.

This discrepancy isn’t necessarily due to better lending practices by smaller banks but may reflect a delay in addressing declining property values. As landlords seek short-term extensions to manage their financial difficulties, the ripple effects of these challenges are becoming increasingly apparent across the CRE market.

Why Regional Banks Are Particularly Vulnerable

Regional banks, which often offered lower down payments on loans prior to the Federal Reserve’s interest rate hikes in 2022, face heightened exposure to falling property values. Office and apartment complexes have seen their values drop by at least 20% from their peak, leaving smaller lenders with reduced buffers to absorb losses. This financial strain could lead to more defaults and forced sales of distressed properties, further depressing CRE prices.

Larger lenders, subjected to stricter regulatory scrutiny and stress tests, have been more proactive in setting aside reserves for bad loans. Unfortunately, many regional banks have lagged in this regard, compounding their challenges and leading to underperformance in the stock market compared to their larger counterparts.

The Road Ahead: What It Means for Property Owners

The Federal Deposit Insurance Corp. (FDIC) has sounded alarms about vulnerabilities in office and multifamily loan portfolios. With an estimated $500 billion in CRE mortgages maturing in the next year, the potential for widespread defaults looms large. Experts predict a wave of "fire sales" as lenders seek to offload distressed assets, further pressuring property values.

Adding to the complexity, the Federal Reserve’s recent interest-rate cuts haven’t significantly lowered long-term borrowing costs. This makes refinancing increasingly difficult for landlords, many of whom are already struggling to cover debt obligations with rental income.

How MacroRealtyAdvisors.com Can Help

In these uncertain times, having a trusted partner who understands the intricacies of the CRE market is invaluable. At MacroRealtyAdvisors.com, we offer expert appraisal services tailored to the unique challenges of today’s market. Here’s how we can support you:

Accurate Property Valuations: Our team delivers precise, data-driven valuations to help you understand your property’s current market position.

Strategic Insights: With deep expertise in regional and national market trends, we provide actionable advice to help you navigate the evolving landscape.

Customized Solutions: Whether you’re dealing with refinancing challenges, potential sales, or long-term investment decisions, we offer tailored guidance to meet your needs.

The CRE market may be facing significant headwinds, but with the right strategies and expert support, property owners and investors can weather the storm. Contact MacroRealtyAdvisors.com today to learn how we can help you make informed decisions in this dynamic market environment.

11/28/2024

💼 Big Moves in Charlotte, NC's Real Estate Scene! 🌇💻

The AI-driven demand for data centers is reshaping Charlotte's real estate market, and a recent $160M deal highlights just how significant this trend has become.

Local developer Graeme Keith and The Keith Corp. sold a massive 155-acre site at 12899 Moores Chapel Road to Austin-based Digital Realty, a global leader in data center operations. This prime property—just 12 miles from Uptown Charlotte and 5 miles from the airport—offers incredible connectivity to I-85, U.S. 74, and I-485.

While Digital Realty hasn’t announced specific plans yet, the acquisition signals a major expansion in Charlotte. Already operating a data center in Uptown, the company’s growing footprint aligns with North Carolina’s booming status as a hub for data center development.

🏗️ Other Big Projects in the Region:

PowerHouse Data Centers is investing in a 2.5 million-square-foot campus in northeast Charlotte.

Microsoft is expanding with three data centers in Catawba County and recently acquired a 1,350-acre megasite in Person County.

At MacroRealtyAdvisors.com, we’re keeping a close eye on how these developments are reshaping our market and creating new opportunities. Have questions about how these trends could impact your property? Let’s talk! 📈🏢