New Era of Recalibration

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There’s plenty to be worried about in this market. The still-stagnant US economy, lack of job growth, European financial markets crisis and the stalled capital markets environment—including the anticlimactic would-be return of the CMBS market—are all putting a damper on the outlook for investors.

But just because one doesn’t have a bullish take on the market doesn’t mean there aren’t opportunities to be found. Institutional players have come to terms with the realities of the current environment—that is, things aren’t going to get much better anytime soon, and established investment strategies and practices are being redefined—to move ahead with transactions. It’s all a matter of putting discipline to work and cherry-picking deals, be it “safe” transactions (core product in top-tier markets) or opportunities along the risk spectrum.

Deciding how, when and where to place capital was among the topics discussed by decision-makers from some of the nation’s top institutions who gathered at New York City’s Waldorf-Astoria hotel last month for the seventh annual Transwestern/Real Eestate Forum Capital Markets Symposium. In a candid session, these senior-level executives shared their views on the market and the global economy, their firms’ 2012 investment strategies and expectations for the coming few years. An edited version of that discussion follows.

PARTICIPANTS

Based in Chicago, Paul Boneham is senior vice president and principal of Bentall Kennedy, which had $8 billion in US assets under management at midyear 2011.

Gerald Casimir is managing director and head of real estate asset management for TIAA-CREF. The New York City-based firm has approximately $22 billion in real estate assets under management at year’s end.

Michael G. Desiato (moderator) is vice president and group publisher for ALM’s Real Estate Media group in New York City.

Charles B. Leitner chairs the real estate group of RREEF. The New York City-based company had $61.8 billion of real estate assets under management globally as of June 30, 2011.

Todd T. Liker is managing director at Oaktree Capital Management, based here in New York. As of Sept. 30, 2011, the firm had $4.3 billion in assets under management.

Based in Boston, Robert J. Plumb is managing director and head of direct investment acquisitions for AEW Capital Management LP, which had $45 billion in real estate assets under management as of year-end 2011.

Steven Pumper (moderator) is executive managing director of Transwestern’s investment services and asset services groups in Dallas.

Clarion Partners’ Brian Watkins is a director based in New York City. As of Sept. 30, 2011, the firm had $23.4 billion in assets under management.

To read what the panelists had to say, visit the January 2012 issue of Real Estate Forum.

Categories: Acquisitions/Dispositions, Capital Markets, Development, Distressed Asset Investments, National