The doldrums are over

Good morning,

Mason Equity Partners is led by John and Shane Mason, who collectively hold 40 years of experience in commercial real estate investment and development. Our firm is focused on self-storage development opportunities in and around LA, as well as opportunistic investments in other real estate asset classes throughout California.

After 18 months of sluggish activity, the commercial real estate market is witnessing a notable uptick in transactional momentum. Following the Federal Reserve's indication last fall of potential rate drops in 2024, the 10-year treasury has stabilized around 4.2% for the past four months and lending rates have stabilized around 6.5%.

Despite self storage rental and occupancy rates declining nationally due to oversupply and evaporation of Covid-era demand, LA rental and occupancy rates have remained resilient. Notably, a 50,000 square foot self-storage facility in Pasadena was acquired by an institutional buyer at a 4.38% cap rate in December 2023, affirming our belief that there is pent up demand to purchase storage assets in supply-constrained markets like Los Angeles. We continue to believe that these investments show steady growth potential while carrying less downside risk than investments in more volatile secondary markets.

Thank you for reading. If you are an accredited investor who is interested in placing money in commercial real estate alongside an experienced sponsor, feel free to reach out.

Best,

Shane