Carlyle Group (CG -0.4%) is the latest Wall Street name to turn from buyer to seller in real estate, according to Robert Stuckey, the P-E firm's head of U.S. real estate. More than one-third of Carlyle's $2.3B in real estate is in apartments, and rising construction amid slower demand (in part as buying becomes a better deal) is not the best combination for higher rents.
"We went from an unusually high-growth market to a market that is growing and attractive but more stable,” says Stuckey. “Our capital was useful at the front edge of the recovery.”
Effective national rent of $1,073 per month at Q3's end is up 1% from last quarter.