Faye Beverett, a principal at Bard Consulting LLC, said pensionfunds will take back discretionary authority, resulting in a slowerpurchasing process. "In the next year, we'll see pension funds usemoney allocated to real estate to rescue existing assets whereasnew acquisitions will focus on core product," she said.
Rockwood's Gray echoed this sentiment. "Going forward, Rockwoodwill look at deals through its core fund that will provide at leasta 9% to 11% levered return over 10 to 15 years." In 2010, peoplewill bid for better assets and accept a relatively low yield due tolow yields on alternative investments, he said. "You would ratherget a 6% yield on a building because you are only getting a 25basis points return on your money market account."
While there is plenty of capital available for public companies,money is scarce for private developers. So said Mark Myers, an EVPat Wells Fargo. "We want to lend, but there is very little demandfor new originations."
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
