2024: Navigating Change, Seizing Opportunity

In a year marked by market shifts and recalibration across the commercial real estate landscape, 2024 proved that opportunity favors the nimble. While many players took a wait-and-see approach, PlaceMKR's commitment to "investing in places that people believe in" drove strategic wins and positioned the firm for continued growth.

Market Context & Strategy  

The Texas commercial real estate story in 2024 was one of contrast. While multifamily and office development paused to absorb post-COVID supply, emerging sectors like data centers and IOS surged forward. Despite market headwinds, multifamily investments continued to trade in the mid-4% cap range in desirable Texas submarkets, with trophy Class AA office selling in the mid-6% cap range in Austin – valuations that outpaced nearly every other major metro in the country.

"The decades-long positive run has taken a dip in several asset classes," notes Christopher Cortese, Co-Founder & Managing Principal. "This is the time when having local expertise and flexibility matters most."

While development was measured across Texas markets, PlaceMKR's nimble approach and strong capital relationships enabled the team to pursue strategic acquisitions while also exploring new avenues for growth, including distressed debt opportunities as commercial real estate loans approach maturity.

Wins Through Adaptation  

PlaceMKR's approach in 2024 exemplified the firm's ability to read market signals and pivot accordingly. With the capital markets resisting new development with concerns over supply, the team focused on acquiring strategic land positions and creating value through entitlements, permitting and securing utilities. A few of the highlights from 2024:

• Powered-land exit to data center operator delivering 11.9X profits to investors

• Recapitalization of existing IOS asset delivering 25.2% IRR return to original investor

• Opportunistic land purchase of 142 acres along 130 in Austin TX at 30% of FMV

• Spin-off of RV Park portion of mixed-use asset to increase going-in yield by >150bps

• 100% leased across all legacy assets

The Path of Progress along I-35

One of the year's most significant moves was the expansion of PlaceMKR's footprint south along the I-35 corridor. The acquisition of a 130-acre IOS and RV Park portfolio in New Braunfels highlighted the firm's conviction in the growth corridor between Austin and San Antonio.

"We're playing to where the puck is going instead of being blinded by recency bias," explains Jesse Weber, Co-Founder & Managing Principal. "The strength we've seen in values across all asset classes, outpacing nearly every other major metro in the country, validates our long-term strategy along the I-35 corridor in Texas."

Connect With Us

Whether you are a property owner, investor, or potential partner, we invite you to connect with our team to explore opportunities together.  

• Seeking large land positions along the I-35 corridor from Dallas to Laredo
• Acquisitions of flex industrial, IOS, and retail assets
• Distressed debt opportunities from pressured borrowers and lenders
• Exploring Co-GP and Fixed-Fee development structures with those needing capital, expertise, or balance sheet support