What Blackstone's latest industrial investment says about recaps
What Blackstone Group does, the investment market follows, and with the major fund pumping money into industrial recapitalizations, debt investment firms like Madison Realty Capital are carrying the recap mentality to their areas of focus. “Other than industrial or a couple of hotter asset classes, the primary recap you’re going to see moving forward is more of a distressed recap,” said Josh Zegen, Managing Principal and Co-Founder of Madison Realty Capital. This is part of a wave of preferred equity being extended to hospitality and office property holders whose capital flow has been disrupted by the pandemic and banks’ unwillingness to lend.