LOS ANGELES—Despite the uncertainty within the market, class C properties are being touted as the best-positioned property for an economic slowdown by some experts in the market. During a panel discussion at the national GlobeSt. Multifamily conference here in Los Angeles, panelists discussed the gap between rent rates for class A and class C properties and reviewed some of the current trends within class C properties.
According to Henry Manoucheri, chairman and CEO of Global Integrity Realty, the institutional market is flush with capital. There is a bidding frenzy in southern California as well as in places like Phoenix, Denver, and areas of Florida among other places, he explained.
"You will have 20 to 25 buyers on anything trading above $25 million. For some reason, all these sellers want to sell this year. It is crazy," he said. "But the $5 million to $15 million space isn't as competitive and you can pick up these smaller properties at probably about a 4 cap rate and there is a lot of upside."
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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.
