|
HUNTINGTON BEACH, CA—Private-equity investors like the strong cash-on-cash that multifamily can provide as compared to hotels, retail and office properties, panelists at the IMN Multifamily Forum here told attendees Thursday. Moderated by CBRE vice chairman Brian Eisendrath, he session “Working With Institutional Capital” discussed the mindset of institutional investors and how to play to your strengths with this sector.
Jerry Fink, managing partner of the Bascom Group LLC, said typically private equity has invested in hotels, retail and office properties, but this sector likes the strong cash-on-cash that multifamily can provide. “The cap rates are in the 3.5-point range, and the overall returns are lower than with commercial properties.”
Multifamily has always been a part of what UNC Management Co. does, said Rodgers Harshbarger, director of private investments for the firm. “Relative to other property types, the variance in terms of skill sets of operators is much wider in multifamily, and it's getting more operationally intensive as time goes on. There are always going to be opportunities for above-average operators to take over; there's lots more underperforming going on.”
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
