It has been difficult for buyers to find property to purchase as many owners are holding out:
This has forced many groups to acquire shares in publicly-traded real estate companies and bonds.
Firms using this strategy include: Blackstone Group, Starwood Capital Group, and Oaktree Capital Management.
Their belief is the market is undervaluing the REIT's by being overly pessimistic about the pandemic’s impact on property owners.
In March and April, shares of REITs were down by 50% including Mack-Cali which is now up 18% from its May low.
Blackstone has purchased more than $2B in real estate stocks since the pandemic started including shares of Extended Stay America.