SHERMAN OAKS, CA-It is evident that many private equity fundsare itching to pull the trigger and are buying distressed realestate, according to locally-based Robert Leveen, a senior vicepresident of Lee & Associates investment services group. Leveenwas recently appointed to the company’s investment group tospecialize in the acquisition and disposition of multifamilyproperties throughout Southern California.
GlobeSt.com What is the current state of theinvestment market as we wait for a real recovery—or a doubledip?
Leveen: The investment market isseeing signs of life. There are many private equity funds formedsolely for the purpose of acquiring distressed commercial realestate. It is evident that they are itching to pull the trigger andare buying. Their underwriting points to a recovering economy andthe opportunity to add value to distressed property and dispose ofit at a lower CAP rate. The national market is so vast, I cannotcomment on what is occurring. In large coastal urban centers, whereCRE is always at a premium, many seasoned investors look to otherstates for the right deal. Many California investors were buying inArizona and Las Vegas for several years. Those markets overheatedand with the onset of the recession, those areas took a huge hit.Then, several of my clients turned to Texas. That economy hasbetter withstood the recession. But, there are plenty ofinvestors who went there and have lost their properties.
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