As part of their “Alternatives in Action” video series, CAIS VP of Investment Strategy Ingrid Tharasook spoke with Axonic Capital Managing Partner and CIO Clay DeGiacinto for insight on the real estate credit market.
“When you think about the credit market in general and try to choose, you want something where there’s a systemic wind in your sail. Something like a four-year under supply of housing,” says DeGiacinto. “You can’t build it. It costs too much to build. It’s all the older 10-15 years, some from the 1990s built housing. It’s generally identified by garden-style low rise apartments geographically dispersed all throughout the country.”
He continues, “We thought that the workforce housing, because it’s work constrained, it’s obviously cheaper than Class A, it’s above mobile homes, it’s just a great housing product for the workforce, people making $50-75,000 a year.”