Unfortunate development. Private equity owners build commercial real estate portfolios for two reasons -- stable income and capital appreciation. They do not view the properties as homes, or as investments in communities, they look at portfolios like this purely as financial mechanisms that will deliver significant profit to their investors. In order to wring the most dollars from this investment, I expect that it will pass from out-of-state investor to out-of-state investor for a few cycles putting pressure to keep "market rents" as high as possible along the way. At some point in the future, after minimal capital investments are made (because they shrink the bottom line), these properties will become tired and somewhat distressed. Concurrently, the owners will become increasingly distant from the needs of our community. It will be important for local officials and organizations to keep the City's needs on the owners' radar in order to ensure we avoid a negative outcome.
The Praedium Group LLC is a private equity investor. The business model is usually to distribute the liquid assets to investors and then file bankruptcy. Many of us saw this coming when we tried to stop Windover years ago.
Beverly Crossing doing business in Beverly is a loss for us… they have been deeply respectful in working for a balance with our community. We have areas that need attention still, and I am sorry they feel the need to work elsewhere. Maybe we can woo them back to bid on some projects that fit their scale. Thank you for your work here and always staying an active part of our downtown community through Beverly Main Streets. It has been a pleasure to work with you. Mary Grant
Unfortunate development. Private equity owners build commercial real estate portfolios for two reasons -- stable income and capital appreciation. They do not view the properties as homes, or as investments in communities, they look at portfolios like this purely as financial mechanisms that will deliver significant profit to their investors. In order to wring the most dollars from this investment, I expect that it will pass from out-of-state investor to out-of-state investor for a few cycles putting pressure to keep "market rents" as high as possible along the way. At some point in the future, after minimal capital investments are made (because they shrink the bottom line), these properties will become tired and somewhat distressed. Concurrently, the owners will become increasingly distant from the needs of our community. It will be important for local officials and organizations to keep the City's needs on the owners' radar in order to ensure we avoid a negative outcome.
Private equity from NY with no real stake other than financial. Hard to see this ending well
Great story Paul
Thanks Ethan.
Praedium Group focuses on underperforming properties…those with many vacancies & evictions.
The Praedium Group LLC is a private equity investor. The business model is usually to distribute the liquid assets to investors and then file bankruptcy. Many of us saw this coming when we tried to stop Windover years ago.
Beverly Crossing doing business in Beverly is a loss for us… they have been deeply respectful in working for a balance with our community. We have areas that need attention still, and I am sorry they feel the need to work elsewhere. Maybe we can woo them back to bid on some projects that fit their scale. Thank you for your work here and always staying an active part of our downtown community through Beverly Main Streets. It has been a pleasure to work with you. Mary Grant