The Wait’s Over for Institutional Capital

Sick of sitting on the sidelines, decision-makers at the nation’s largest real estate investment management and advisory firms are playing offense. Most see the recovery, however surprising in its pace, as relatively sustainable, and opportunities are beginning to surface—at least, for those with capital to put to work. Yet concerns remain, particularly in the context of the broader economy, job growth and global instability.

A group of top-level executives from some of the nation’s premier real estate investment and advisory firms came together recently for the Seventh Annual Transwestern/Real Estate Forum Capital Markets Symposium, held at the Waldorf-Astoria Hotel in New York City. In a frank roundtable discussion, the participants shared their thoughts on the current state of the industry, the rebound of the capital markets and what the opportunities are for the foreseeable future. An edited version of that discussion follows.

PARTICIPANTS

Erwin K. Aulis is COO of Northwood Investors LLC in New York City. As of year-end, the firm had $1.25 billion in real estate under management.

Operating out of New York City, Frank Cohen is a senior managing director for Blackstone’s real estate group, with total real estate assets under management of $26.8 billion at year-end 2010.

Michael G. Desiato (moderator) is vice president and group publisher of ALM’s Real Estate Media Group in New York City.

Based in New York City, Keith A. Gollenberg is a managing director at Oaktree Capital Management, which at year-end had $82 billion in total assets under management.

Phil McAndrews is managing director and head of portfolio management at TIAA-CREF in New York City, which had $46 billion in real estate assets under management as of September 30, 2010.

Robert J. Plumb is managing director and head of the direct investments acquisitions team for AEW Capital Management LP in Boston, which had $45 billion in real estate assets under management as of year’s end.

Steven E. Pumper (moderator) is executive managing director of Transwestern’s investment services and asset services groups in Dallas.

James Walsh is managing director and head of asset management for JP Morgan Investment Management. At year-end 2010, the New York City-based firm had $37 billion in real estate assets under management.

Read what these experts had to say in the February/March 2011 issue of Real Estate Forum.