As we near the end of 2025, the capital markets continue to find their footing after three years of recalibration. Inflation has moderated from its post-pandemic highs, and interest rates, though having declined, remain elevated compared to the decade that preceded 2020.

In today’s market, cash flow-focused real estate funds have captured significant attention from yield-seeking investors. The largest mainstream retail funds are often lauded for their attractive and steady distributions. However, a closer look shows that these magical funds might be pulling their distributions “out of a hat.” Today’s investor must be able to discern between sleight of hand and durable growing income streams.

A significant wave of commercial real estate (CRE) debt, predominantly originated during the pandemic’s low-interest-rate era, is now approaching maturity. Headlines have long signaled this shift.

In today’s market, cash flow-focused real estate funds have captured significant attention from yield-seeking investors. The largest mainstream retail funds are often lauded for their attractive and steady distributions. However, a closer look shows that these magical funds might be pulling their distributions “out of a hat.” Today’s investor must be able to discern between sleight of hand and durable growing income streams.

In today’s market, cash flow-focused real estate funds have captured significant attention from yield-seeking investors. The largest mainstream retail funds are often lauded for their attractive and steady distributions. However, a closer look shows that these magical funds might be pulling their distributions “out of a hat.” Today’s investor must be able to discern between sleight of hand and durable growing income streams.

It’s time again for a refresh of our company website and a continued furtherance of the Buchanan brand. The exercise requires us to constructively evaluate our current messaging, product lines, and associated value propositions to communicate more directly with our investment clients, registered investment advisors, and the associated investment manager network.

While the broader US economy continues to show impressive resilience in a rapidly evolving geopolitical landscape, evidenced by a stock market near all-time highs and sustained low unemployment levels, investors may be surprised to hear of the “minirecession” that the self-storage industry has wrestled with over the past 24 months. The sector experienced significant operational headwinds in 2024, challenging the industry’s reputed “recession-resilient” nature established over past economic cycles.

Welcome to 2025, a New Year, a new administration, a fresh start and undoubtedly new resolutions for all. I’ve heard of varied new mantras to revive, to survive, and to thrive in 2025. No doubt a new year brings with it a time to reflect on the past year and set goals for the new year. At Buchanan, we regularly ask our teams to do just that as we attend to our existing investments and look forward to what new opportunities might present themselves.

Buchanan's foundation is rooted in real estate credit. Since 1999, we have closed 94 debt investments totaling more than $1.3 billion. Lending has been a complementary business line to our equity funds providing us a differentiated viewpoint as both a lender and operator.  Consequently, our longstanding presence in the CRE lending landscape affords us a unique perspective on the current state of capital markets.

One of my favorite classes in college was statistics which is defined as the science of collecting and analyzing data for the purpose of inferring proportions to draw outcome conclusions. While not the most exciting subject for some, I valued the logic of mathematics to project outcomes, which has been a trait valuable to our Buchanan Street investment activities. Today, we are inundated with statistical analysis and its hypothetical correlated outcomes.

In Robert Brunswick’s December 2023 Board Minutes from the Chairman, he touched briefly on some of his successes in philanthropy including the growth in Hoag Innovators, a philanthropic endeavor in partnership with Hoag Hospital targeted at catalyzing innovation in healthcare. This led my mind down a path of investing in what matters. Investing to have the means to be philanthropic, to be able to give your kids a better life than you had, to buy a house, to retire comfortably, and the list goes on.

My wife and I recently celebrated our 40th anniversary and by anyone’s standard, a worthy mark to properly commemorate. We decided that we wanted to organize a family trip with kids and grandkids to message the importance of this long-lasting union. We thought a trip to Sedona would be a perfect adventure with its natural beauty, art, recreation, and reasonable proximity.