The pandemic altered assumptions about the real estate, including the shift in demand, location, and even the environment itself. Yet, at the center of the storm are the value-add investors who drive opportunity and risk when it comes to change.
How is the value-add landscape changing because of the COVID-19 pandemic? It is evident that changes have been felt across product types and sectors like multifamily, industrial, office, retail, and e-commerce. In addition, the trends within these sectors accelerated quickly, proposing a new challenge for investors—meeting the demands that occupy the competitive industry to acquire value-add deals.
Despite the growing disparity between functional office spaces and obsolete office spaces, a disciplined approach to value-add investing is necessary to determine rent values for assets given the increase of population growth and migration patterns.
In this episode of the AFIRE Podcast, Joe Gorin and Valeria Falcone of Barings Real Estate discuss how the thematic approach in real estate is changing and what structural impacts it’s having beyond the pandemic.
Valeria Falcone is a member of Barings Real Estate, a global real estate platform with extensive capabilities across both debt and equity strategies. She is a Managing Director, Portfolio Manager for a value-add closed-end European fund and Real Estate Country Head – Italy, responsible for sourcing both new real estate investment opportunities in Italy, as well as capital from Italian institutions wishing to invest in debt and equity products in the US and Europe.
In addition, Valeria serves on the European/Asia Pacific Investment Committee. Valeria has worked in the industry since 2004. Prior to joining the firm in 2015, Valeria was Managing Director and Real Estate Country Head for Italy at The Carlyle Group where she was responsible for the acquisition of commercial and residential properties in Italy and the ongoing management of their Italian portfolio as well as a member of their Real Estate Operating Committee.
She also held positions at Pirelli & C. Real Estate (now Prelios) and Citibank. Valeria holds a B.A. and a M.Sc. in Architecture from Polytechnic of Milan. She is a Member of the Association of Women in Real Estate in Italy.
Joe Gorin is a member of Barings Real Estate, a global real estate platform with extensive capabilities across both debt and equity strategies. He is a Managing Director and Head of Portfolio Management and Value-Add Investing for the U.S. Real Estate Equity, responsible for refining and implementing Barings Real Estate’s portfolio vision across client platforms, with a particular focus on value-add investing strategies.
Joe also serves on the Barings Real Estate U.S. Private Equity Investment Committee and Global Debt Investment Committee. Joe has worked in the industry since 1994. Prior to joining the firm in 2020, he was a Managing Director at Goldman Sachs & Co and served as Co-Head of Goldman Sachs Asset Management’s private equity real estate business. From 2009 to 2015, Joe served as Managing Director at Rockwood Capital in New York City. Prior to his tenure with Rockwood, Joe held senior acquisition and asset management positions with Equity Office Properties and GE Real Estate.
He began his investing career with Cornerstone Properties in 1995, prior to their merger with Equity Office Properties in 2000. Joe graduated from Skidmore College with a bachelor’s degree in Business and Government. Joe is a member of the Urban Land Institute (ULI) and former Chairman of ULI’s Office Development Council. He holds Series 7 and Series 63 FINRA licenses.
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