Commercial Real Estate Finance

Posts Tagged ‘liquidity’

Commercial Real Estate Week In Review for the Week of July 24-30

- Despite Financial Regulation passing last week, is the financial industry trying to influence policy?

- Tim Geithner thinks the government should retain a mortgage guarantee.

- Would fair-value changes affect private equity and venture capital?

- A CMBS fund has filed a foreclosure lawsuit against a Florida building owner

- Starwood is planning to expand its presence in NYC.
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If you had $1 million to invest, which would you choose?

1) S&P 500

2) 10 Year treasuries, or

3) a 6 cap multi-family deal (B in a B location) Read the rest of this entry »

Commercial Real Estate Week in Review-June 20-26

-Fed not going to raise interest rates.

-Total amount of distressed commercial real estate down 11% since March.

-Medical Properties Trust acquires 3 hospitals for $74M.

-Commercial real estate prices up 4.7% since October.

-Retail Opportunity Investments Corp (Nasdaq: ROIC) acquires 5 retail centers for $90M.
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China’s decision to let the Yuan appreciate is a drain on global liquidity. While various legislative elements and the treasury have aggressively pushed China to revalue the Yuan, the Federal reserve has indicated that rates will stay low for a while. Unfortunately these policy goals are at odds and it leads to some confusion in the market place.

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1) What can we learn from Goldman Sachs?

Ignoring, entirely, the debate surrounding the series of accusations leveled at Goldman Sachs, we can still learn something useful from their circumstances:  Pay attention to what write on email!  I’ll remind you of an oft repeated rule of thumb: consider, before pressing send, what your email might look like as a headline in the Wall Street Journal.

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In times like these, savvy real estate owners all sing a similar tune.  Why build when you can buy for half the cost (or at least significantly below replacement cost)?  And this is a good question.  Yet despite the cyclical nature of real estate, land is bought and sold at all times during the cycle. And this got us to thinking.  If an asset like land, which by nature does not produce income, can continue to change hands, then what are the real drivers of modeling a land deal? How speculative is it really?

That got us thinking even more (we try not to think too much… it makes us tired) about other similar markets for assets of a speculatively priced nature.  Fine art is one particular commodity/asset class that comes to mind. So let’s examine the similarities and differences between pricing for raw land in the realm of real estate, and the pricing of fine art in the world of the aristocrat. Read the rest of this entry »

So, for months I’ve been subjecting you to my musings regarding the intersection between commercial real estate and macro economics.  Of course, right when I stop droning on for a week or two, a “crisis” in Greece ostensibly causes a 9% “correction” in stocks.

Well, I’m back, and I’m here to help…. well, at least to make some smart-ass comments.

Let’s begin.

The “crisis” really isn’t about Greece, it’s about the whole Eurozone, and it’s not over.   When they tell you the situation in Greece has been settled, just ask them if the “subprime crisis” is still well contained.  While it’s tempting to think I’m being overly dramatic, people far smarter than I will tell you the Euro is doomed to failure.  Tomorrow?  The next day?  Perhaps not, but well within your business career.

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An analysis of the housing crisis by Karl Case:

For the last few years, we have shed many tears
Living through a recession.
The economy’s broke and it’s not a joke,
When we talk of another depression.
Fifteen million without a job,
Foreclosures and banks that fail,
401K’s became 201K’s,
And everything’s up for sale.

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Wondering how to squeeze some more liquidity from credit markets still thawing at a glacial pace? The solution may lie in your property itself. Traditionally a developer apportions 100% of the cost of improvements among initial buyers. Each buyer then has no choice but to pass along these costs to future buyers. What if there were a way to share such burden with future buyers of your asset, and capitalize on it today? Read the rest of this entry »

Ryan joined Sentry in 2009 bringing a wealth of financial experience to the organization with a special focus in Hospitality Real Estate. As the holding company’s CIO and Principal, Ryan oversees all capital, investment and new business development transactions. In addition, he controls relationships with investment partners, lending institutions, and oversees Finance and Operations for Sentry Centers, the new urban conference center platform of the company. Ryan comes directly to Sentry from Gramercy Capital where he served as a Vice President responsible for the workout and restructuring of Gramercy’s hospitality related assets. Prior to this, he worked for Lehman Brothers within their commercial real estate group. Ryan is an active member of the Urban Land Institute (ULI) and a graduate of Villanova University.

Q: As a company, tell me about the niche you have carved out for yourself and how you feel you are different from the competition. Why do you find this product type more appealing than alternative real estate asset classes?

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