Bill Chen on why the opportunity exists right now in publicly-traded Real Estate

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Oct 9, 2023

Real estate investor and Managing Director at Rhizome Partners, Bill Chen, discusses the discrepancies between publicly-traded and private real estate markets, explores the current real estate environment in relation to historical periods, and shares his real estate thesis. He also talks about liquidation premium, geographic risk, financing during a distress cycle, and why this opportunity exists in publicly-traded real estate.

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Introduction

00:00 • 4min

Understanding the Impact of Drawdowns on Real Estate Market

04:23 • 9min

Comparison of Public Market Value and Private Market Value in Real Estate

13:27 • 5min

Changing Market Conditions for Publicly-Traded Real Estate

18:38 • 14min

Advantages of Publicly-Traded Real Estate

33:05 • 18min

CEO stock ownership, value investor motivation, and the importance of dividends in REITs

50:38 • 2min

Performance and Potential Returns of Publicly-Traded Real Estate

52:47 • 14min

Analyzing the Impact of Housing on CPI and Potential Recession

01:06:58 • 3min

Bill Chen, a real estate investor and Managing Director at Rhizome Partners, returns to the podcast to provide his latest insights on what's happening in publicly-traded real estate market, private real estate market and literally everything real estate in between.

For more information about Rhizome Partners, please visit: http://rhizomepartners.com/

Chapters:

[0:00] Introduction + Episode sponsor: Alphasense

[1:38] Discrepancy between publicly-traded real estate and private market value / what's going on in REITs

[4:27] How does current Real Estate environment relate to similar historical periods

[9:26] Bill Chen's current real estate thesis

[13:58] Liquidation premium and where we are in the real estate cycle

[22:43] Public market trades below the private market - why shouldn't public market real estate trade for discount to private market?

[26:45] Real estate diversification, geographic risk and tax breaks

[38:38] Running apartments buildings net debt

[43:25] How to finance a distress cycle and capital allocation strategies during this time

[52:51] Why invest in real estate vs. (for lack of a better term) a lot of other stuff right now

[1:01:21] Why Bill Chen thinks this opportunity exists right now in publicly traded real estate

Today's episode is sponsored by: Alphasense

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