LOS ANGELES-Following the day-long RealShare LA event, GlobeSt.com headed over to the Sklar Kirsh LLP Reception and joined approximately 35 industry folks at Chef David Myers‘ newest restaurant, Hinoki & The Bird. Partner Andrew Kirsh, who had moderated the development panel at RealShare L.A., gave us a few more thoughts on the market, his panel, and more about the new lawfirm and its “unique vantage point.”
According to Kirsh, “The asset classes where we see the most demand are multifamily, mixed-use and creative office, especially projects that are concentrated around transit-oriented districts, as evidenced by my panel today,” says Kirsh. “Development is in full force.”
Kirsh tells us that there is sufficient capital to build development projects and there is demand from the consumer to purchase or lease the real estate that is being built. In fact, he says, “several of the panelists voiced their concern that there may be too much development in the multifamily space, which is unbelievable to hear since just a couple years ago there was literally no development occurring.”
The RealShare conference series is produced by ALM’s Real Estate Media Group, which also publishes GlobeSt.com and Real Estate Forum.
When we asked more about how things are going with his new lawfirm, which he founded with corporate transactional attorney Jeff Sklar in February, he tells us that the firm is focusing solely on real estate and corporate transactions. “We have an intimate vantage point as to what deals are getting done,” he says.
He explains that “We have about 50% of our client base doing deals in California, but the other 50% are doing deals throughout the US, including Arizona, Nevada, Texas, Florida and even Iowa. Because there is so much demand in the coastal regions, in order to get better cap rates, our clients are purchasing real estate outside of California.”
In addition to multifamily, here in Los Angeles, he says, the creative office market, which caters to tech companies, is extremely active. “We have closed several deals recently where institutional capital joint ventured with local operators to purchase value added deals in the office sector,” he says. “With the influx of ‘Silicon Beach’ tenants into the market place, we are seeing a sea change in the type of office product that is currently in demand with the creative office sector.”
When asked about teaming up with Kirsh, Sklar tells GlobeSt.com that “Andrew and I saw this as a perfect opportunity to join forces. High-net-worth individuals, investment funds, family offices and emerging and large companies alike are finding it is now a good time to put their money to work, whether it is forming a new business, financing one, buying or selling real estate or other assets, or growing through merger-and-acquisition activity. We knew we could put together a team to handle these complex corporate and real estate transactions at reasonable pricing. It is definitely an example of one and one equaling three.”
As GlobeSt.com previously reported, Kirsh was among the 40 rising stars Real Estate Forum editors selected from among more than 250 nominations. Read more in the October 2012 issue of Real Estate Forum.