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"There are better ways to play the housing recovery than buying single-family homes," says...

  • Friday, March 1, 10:55 AM ET
    "There are better ways to play the housing recovery than buying single-family homes," says Carlyle's (CG) head of U.S. real estate Robert Stuckey, refusing to join in on the trendy bet. Carlyle has put billions to work in property, but mostly in purchasing MBS and multi-family property, rather than trying to transform the mom-and-pop single family business.
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This news story has 3 comments:

  •  
    This is very interesting, however I feel that the many private equity firms that are doing this are able to increase the housing market prospects, thereby increasing the market that will lead and sustain the economic recovery.
    1 Mar, 02:26 PM Reply Like
  •  
    The business of buying individual homes is not "scale-able". Carlyle has a point and, were it not for the high quality of CLNY management, I would probably sell the stock at $22. If any REIT ever does an IPO with this as a business model, I don't think the numbers would add up very well.
    1 Mar, 04:23 PM Reply Like
  •  
    This was an opportunistic play based on the worse housing meltdown in a century creating a huge inventory that banks were willing to unload wholesale. As the market stabilizes, I would expect these trades will be closed out and BX and the others will leave the single family market. Carlye was just late to the party so they decided to skip it.
    2 Mar, 09:23 AM Reply Like
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