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Jay Parsons questions reported figures about private equity ownership in large apartment buildings, suggesting the true share is closer to 90% rather than 13%.
He points to the high cost of these properties, often ranging from eight to nine figures, and asks who would be buying them other than private equity firms. According to Parsons, it is unlikely that other types of buyers, such as REITs or ultra-high-net-worth family offices, account for a majority of these large-scale transactions.
Parsons has previously commented on the largest U.S. apartment REIT merger, stating the major deal was unlikely to disrupt the market. He has also argued that institutional investors play a key role in expanding U.S. housing supply. The latest claims continue his focus on institutional activity in multifamily real estate.