SPG specializes in boutique real estate banking. It structures and acts as principal in opportunistic lending situations. SPG's focuses on multifamily, offices and retail buildings, providing bridge financing, mezzanine financing, credit enhancements and structured finance transactions.
"As we head into 2005, the optimism of real estate recovery continues to grow," Rollins says. "We believe 2004 will go down as the Year of the Seller. Most of those who could sell did so. Cap rates across the board fell to unprecedented (and unsustainable) level. Financing remained relatively cheap, especially for floating rate debt."
This year, he says multifamily fundamentals in most markets are rebounding, and he expects in many cities concessions will burn off. Retail, strong for the past several years, should continue to be robust, he notes.
"Industrial is a sector that never felt much pain and continues to perform well," Rollins adds. "The outlook for office, while improving, remains bumpy and certainly (is) market specific. In the coming months, all eyes will be on local job growth, as we look to employers to add more people and use more office space."
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