As a retail broker, Newmark’s Rob Ippolito “hears constantly” about an abundance of capital waiting to be deployed into the sector. The question, he said in a panel discussion at the ICSC Western States conference in San Diego this week, was whether pressure to get that capital placed would be offset by a rise in rates, allowing sellers to hit their numbers.

“At the end of the day, there has to be some capitulation on the part of sellers,” said Jim Hamilton, vice president of acquisitions at Brixton Capital. “The economics just don’t work. When we start to see rates stabilize and things aren’t as volatile, we’ll see transactions. But the problem now is nobody knows what the price should be, because debt is moving so quickly. It’s hard for a seller to conclude this is the right price. When rates stabilize, you’ll see the cost of interest rate caps come down on floating rate debt and people will start to normalize.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2022 ALM Global, LLC. All Rights Reserved.