“We have consistently been net buyers since 2024 and anticipate continuing this trend in 2025,” stated Jeff Weller, Co-CEO and Co-founder of Lion Real Estate Group, a Dallas-based company. During a recent webinar with Daniel Ceniceros, President and CEO of Connect Commercial Real Estate and Connect Money, Weller added that the current year presents “a once-in-a-generation opportunity” to acquire assets at attractive prices.
However, there are challenges in the market due to high-interest rates following an extended period of near-zero Federal Funds Rate. This has caused some investors to struggle with floating-rate debt. To avoid this issue, Lion has remained disciplined by focusing on fixed-rate financing for its portfolio.
Self-management is also crucial in today’s market as it allows for quick adjustments when necessary. According to Mory Barak, Lion’s other Co-CEO/Co-founder: “We feel that because we self-manage our properties it provides added value for our investors.”
The current market offers many acquisition opportunities due to fewer investors participating compared to previous years when large-scale acquisitions were more common among deep-pocketed buyers like Blackstone. For deals under $75 million or $100 million from discretionary capital sources on an off-market basis can provide real value.
Lion focuses its investments within Sunbelt cities known for strong population growth but also face challenges such as elevated supply impacting absorption rates. However projections show new deliveries will slow down over the next 12-18 months allowing time for absorption.
Established in 2007 just before commercial real estate reached a trough after reaching its peak during the last cycle; this is now their second cycle which requires discipline when underwriting deals along with operational control and financing strategies according Barak who adds: “Our primary focus has always been cash yield rather than flipping properties.”
In addition they discuss fundraising strategies along with interest rate trends while offering advice on avoiding investment pitfalls during these challenging times. To learn more, register for the webinar by clicking here.
