SMU, Yale Endowments Unload Real Estate Assets Due To Cooling Markets

It’s no secret that universities are getting hip to real estate, bringing on industry leaders to head investments. But as the industry cools, two top college endowments—Southern Methodist University and Yale University—are cutting back on investments. The two have been selling off assets since mid-last year, hoping to avoid cooling markets.

As of 2015, SMU’s $1.5B endowment cut real estate holdings by 84%, and Yale’s $25.6B fund followed behind cutting real estate investments by 31%.

The selloff comes at a time when endowments are grappling to boost performance, Bloomberg reports.

“It could have been a good time to sell the asset because of what they perceived to be cyclical high prices,” Pension Consulting Alliance consultant Christy Fields says. “People are feeling like the pricing is rich and they’re happy to take some money off the table.” [Bloomberg]

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Mold Is Growing Into Major Problem For Apartment Owners

Data Center Energy Bill Stalls In Congress As Opponents Say It Lacked 'Real Teeth'

Kroenke Announces $135M Renovation For Denver's Ball Arena

Iconic Jersey Shore Property Hits The Market For $85M As Redevelopment Play

FedEx's Consolidation Plan Puts $3B Of CMBS Debt In Crosshairs

FBI Opens Investigation Into Multifamily Investor Lurin Capital

DWS Plans Liquidation Of Nontraded REIT After Heightened Redemption Activity

Bisnow's 2026 DEI Data Series

Lincoln Property's New Pennsylvania Head On What Types Of Deals He's Targeting

America's Data Centers Are Running Out Of People Who Know How To Run Them

Why Data Centers Crave Simplicity As Operations Grow More Complex

Blackstone Looks To Secondary Market To Cash Out Investors In $11B Fund