Empira Group

The Golden Era for Private Real Estate Debt – A Market Shift in Favor of Private Lenders 𝘉𝘢𝘯𝘬𝘴 𝘢𝘳𝘦 𝘴𝘵𝘦𝘱𝘱𝘪𝘯𝘨 𝘣𝘢𝘤𝘬—𝘸𝘩𝘰 𝘸𝘪𝘭𝘭 𝘴𝘵𝘦𝘱 𝘪𝘯? With tighter regulations, higher interest rates, and a growing refinancing gap, institutional investors have a unique opportunity to access attractive, collateral-backed returns through private real estate debt. At Empira Group, we see a surge in demand for alternative lending solutions as real estate investors seek non-bank financing. The market is shifting, and investors who act now can benefit from superior risk-adjusted yields. 𝘌𝘮𝘱𝘪𝘳𝘢 𝘎𝘳𝘰𝘶𝘱’𝘴 𝘛𝘢𝘬𝘦: Our structured real estate debt strategies offer investors strong downside protection while securing attractive fixed income returns. What’s your take on private debt in today’s market? Share your insights in the comments!

As the real estate sector enters a new phase of growth, it’s an ideal time to prepare for future opportunities that garner investment success. Our colleague Rafael Aregger, Head of US Investments, contributed to the latest AFIRE Summit Journal, delving into the nuanced narrative around residential supply in South Florida and how significant new development drop off in 2026/2027 will likely contribute to a regional housing supply shortage in the medium-and long-term. When it comes to multifamily rental demand, Miami and West Palm Beach in particular have solidified positioning as hotspots for resilient economic and demographic growth, creating a sound backdrop for multifamily investments. Diminishing new supply, aging/subpar existing inventory, plus growing regional demand for housing driven by favorable economic and demographic trends, offers a strong long-term foundation for developers in South Florida. Investors who continue to be active in markets with steady demand will be rewarded over the next cycle. Read the published article at AFIRE here (page 42): https://lnkd.in/evAvqKg9

Turning Challenges into Opportunities: Why Private Real Estate Debt is the Future of Financing   Over the past two years, geopolitical uncertainty, inflation, and rising interest rates have significantly reshaped Europe’s real estate market. As traditional lenders pull back, borrowers are increasingly confronted with a financing gap.   As we enter 2025, there are encouraging signs of stabilization. Investment activity is picking up, and the demand for innovative financing solutions continues to grow.   One such solution is private real estate debt.   At Empira, we see real estate private debt as a cornerstone of the industry’s future—a flexible and efficient approach to address today’s market challenges.   As the sector evolves, private debt offers the tools to turn complexity into opportunity. At Empira, we are dedicated to helping our clients and partners navigate these changes and unlock value in real estate financing.   Stay tuned for more insights on private real estate debt.

Empira Research – Q1 2025 on Economy & Real Estate The year 2024 was marked by economic uncertainty, geopolitical tensions, and a challenging financing en­vironment. While Germany and Austria faced negative growth rates, the Swiss economy proved more resilient. Interest rate cuts by central banks provided initial relief, yet overall macroeconomic conditions remain volatile. For the real estate market, this environment presents both challenges and opportunities. The phase of rising yields appears to be coming to an end, and stable to slightly declining interest rates are creating new invest­ment prospects. At the same time, the structural under­supply of housing remains a key driver of market dyna­mics: while the number of building permits continues to decline, demand for housing remains high — particularly in metropolitan areas where rents continue to rise. On a global scale, divergent trends are emerging. Whi­le the U.S. economy continues to grow robustly despite restrictive monetary policy, Europe lags behind expecta­tions with subdued growth rates. Institutional investors are becoming increasingly selective in their strategies, placing a stronger focus on conservative, secured credit solutions and stable residential real estate markets. With this edition of the Research Quarterly View Econo­my & Real Estate Q1 2025, we provide a comprehensi­ve analysis of macroeconomic trends and their impact on real estate markets in the DACH region and beyond. Our findings highlight that in a dynamic market environ­ment, new investment opportunities are emerging—parti­cularly in alternative financing structures and structurally growing rental markets.

The Case for Real Estate in 2025 In the January issue of Institutional Real Estate Americas, Rafael Aregger, Head of Investments US, discussed why now is the time for investment committees to refocus on real estate and seize the next upturn in multifamily investments. While recent challenges and macroeconomic headwinds have impacted real estate allocations, such a retreat reflects short-sighted thinking. Real estate is a long-term asset class that increasingly requires a nuanced approach, focusing on individual asset classes, submarket-specific opportunities and bottom-up analysis rather than broad macro trends to achieve outsized returns. Demographic trends continue to support long-term growth in key sectors, particularly multifamily housing. The disparity between the higher cost of ownership vs. the cost of renting is not likely to revert anytime soon, with the average monthly mortgage payment reaching $2,248 during the second quarter, 31% higher than the average monthly apartment rent of $1,712. “Strong population growth across different US regions combined with decades of under-building is providing a unique opportunity to invest in housing and benefit from these demographic trends,” said Aregger. “Multifamily real estate continues to provide attractive risk-adjusted returns as well as other compelling benefits: consistent income, value appreciation, portfolio diversification, inflation protection, and relatively low volatility.” He added, “It’s no longer enough to bet on a single region or trend as investment returns increasingly hinge on microlocation and submarket dynamics. Miami’s metropolitan area posted positive one-year total returns of 2.0 percent in the NCREIF Property Index, even as the national index returned −5.3 percent over the same period as in the second quarter 2024. Miami’s offices are still relatively well utilized, and apartments well occupied, yet there is great importance of granular, localized strategies to achieve superior multifamily returns.” Empira believes focusing on high growth markets, playing close attention to demographic trends and catering to evolving generational living needs will set multifamily investors and developers up for success this year and in those to come. Read the full article here (subscription required): https://lnkd.in/e6S69iXq

Season’s Greetings from Empira Group As the year draws to a close and we reflect on milestones and goals, we want to express our sincere gratitude for your valued partnership. The trust you placed in our entire team with meaningful contributions to our shared projects positively drove continued success in 2024. We look forward to fostering our professional relationship together in the New Year and are filled with optimism and determination for all that lies ahead. We wish you much health, happiness and success in 2025 and hope the holiday season offers you an opportunity to slow down and enjoy some time off!

Introducing THE PERRIN; Refined Residences in Brickell   As Miami’s real estate market continues to be one of the most dynamic in the U.S., the demand for high-quality rental housing is unwavering.   With delight we unveil plans for THE PERRIN, a 310-unit community where urban sophistication and serene retreat seamlessly blend to provide an enriched modern living experience in the heart of Miami’s fastest-growing neighborhood. Set to break ground in early Q1 2025, THE PERRIN embodies a pillar of strength and timeless allure, suggesting a sense of reliability in its uniqueness.   Rising 26-stories above the bustling, high energy Brickell area, it will offer a mix of meticulously designed studio, one-, two-, and three-bedroom apartments. Bespoke upscale amenities designed to perfectly harmonize hospitality, work, socializing and relaxation will be found throughout the property including a rooftop Zen Garden and Tea Room, resort-style pool and cabanas, state-of-the-art fitness center, expansive ground floor retail, co-working, entertainment, and dedicated yoga rooms, to mention a few.   Ideally located at 244 SW 9th Street – mere blocks from Miami’s largest premier luxury retail hub at Brickell City Centre – THE PERRIN offers future residents a gateway to the infinite possibilities of elevated urban living, with comfort and convenience at the center of it all. Opening 2027.   Visit www.theperrin.com for more information and register to receive exclusive updates!

Announcement: Empira Joins Partners Group, One of the Largest Firms in the Global Private Markets Industry We are proud to announce that Empira will become part of Partners Group, one of the largest firms in the global private markets industry. This transaction comes at a pivotal moment for the global real estate industry, as the asset class evolves beyond traditional asset management to focus on transformational investing and operational excellence — generating attractive returns for our clients. Joining forces with Partners Group strengthens our position as a leading real estate investment manager and supports our ambitious growth plans as the industry enters a new era of investing. Empira will continue to operate under its established brand as part of Partners Group. Lahcen Knapp, Founder and Chairman of Empira Group, shared: “For nearly a decade, Empira Group has been committed to delivering excellence and robust returns to our investors as an independent, private firm. This step enhances our ability to provide comprehensive real estate investment and financing solutions on a global scale. Our brand, people, and culture remain central to our commitment to performance and sustainability in real estate.” Our vertically integrated investment strategy aligns seamlessly with Partners Group’s focus on the transformative Giga Themes of New Living and Decarbonisation & Sustainability. Together, we aim to address key trends, including: • Shifts in residential demand driven by migration and hybrid work • The chronic shortage of high-quality, affordable rental properties for "Generation Rent“ • The growing need for sustainability and energy efficiency in real estate We are excited to embark on this journey with Partners Group, united by a shared vision to reshape the future of real estate investment with purpose, innovation, and a commitment to impact. This marks the beginning of an exciting new chapter for Empira as we build meaningful and lasting contributions to the real estate sector. Read the full press release here: https://lnkd.in/eS82qssA

Announcement: Empira Joins Partners Group, One of the Largest Firms in the Global Private Markets Industry We are proud to announce that Empira will become part of Partners Group, one of the largest firms in the global private markets industry. This transaction comes at a pivotal moment for the global real estate industry, as the asset class evolves beyond traditional asset management to focus on transformational investing and operational excellence — generating attractive returns for our clients. Joining forces with Partners Group strengthens our position as a leading real estate investment manager and supports our ambitious growth plans as the industry enters a new era of investing. Empira will continue to operate under its established brand as part of Partners Group. Lahcen Knapp, Founder and Chairman of Empira Group, shared: “For nearly a decade, Empira Group has been committed to delivering excellence and robust returns to our investors as an independent, private firm. This step enhances our ability to provide comprehensive real estate investment and financing solutions on a global scale. Our brand, people, and culture remain central to our commitment to performance and sustainability in real estate.” Our vertically integrated investment strategy aligns seamlessly with Partners Group’s focus on the transformative Giga Themes of New Living and Decarbonisation & Sustainability. Together, we aim to address key trends, including: • Shifts in residential demand driven by migration and hybrid work • The chronic shortage of high-quality, affordable rental properties for "Generation Rent“ • The growing need for sustainability and energy efficiency in real estate We are excited to embark on this journey with Partners Group, united by a shared vision to reshape the future of real estate investment with purpose, innovation, and a commitment to impact. This marks the beginning of an exciting new chapter for Empira as we build meaningful and lasting contributions to the real estate sector. Read the full press release here: https://lnkd.in/eS82qssA

FondsForum Conference 2024 – Tracking Yield Developments in Europe and the USA – Reporting Directly from Miami   Rafael Aregger, Head of U.S. Investments at Empira Group LLC, highlights current trends in real estate returns, shedding light on key differences between the U.S. and DACH region markets, while offering a nuanced view of opportunities and challenges in these markets. Economic Dynamics – U.S. vs. DACH Region: Compared to the DACH region, the U.S. economy continues to experience stronger growth, driven by robust population increases and immigration-friendly policies that keep demand for residential real estate on the rise. These demographic factors provide sustained support for demand and investor confidence in the U.S. real estate market. Stable Cap Rates and Investor Confidence: Despite significant interest rate fluctuations in recent years, cap rates in the U.S. real estate market have remained largely stable, indicating strong investor confidence in the long-term outlook despite high financing costs. This stability is particularly evident in the multi-family sector, highlighting continued demand for housing. Challenges with Low Interest Rate to Cap Rate Spreads: Currently, the narrow spread between interest rates and cap rates makes achieving positive leverage challenging. Investors are increasingly relying on rent growth to secure returns, particularly in high-growth markets. Sunbelt Growth: The southern U.S., especially Florida and Texas, is experiencing high migration rates, leading to strong real estate demand and impressive rent growth. These regions also offer landlords additional advantages, such as favorable regulations with no rent caps. Optimistic Future Outlook: The outlook for the U.S. real estate market remains positive, bolstered by a stable economy and supportive conditions in sectors like residential and industrial real estate. With the Fed's shift in monetary policy potentially signaling lower interest rates, property values and rental growth could further boost market momentum. However, it’s essential to monitor the impact of anticipated federal debt levels on this growth under the current and future administration. Judith Schmidt, Senior Business Development Manager and Christian Hanke, Managing Director, are on site to connect with you and provide firsthand insights into Empira Groups’s latest market assessments, offering a unique perspective on investment opportunities and strategies amidst evolving yield dynamics.