NEWPORT BEACH, CA—KBS's underwriting team works closely with, but independently of, its acquisitions team to ensure any possible issues are discovered and vetted and that the assets acquired meet the requirements of its REITs, Mimi Nguyen tells GlobeSt.com. The firm recently promoted Nguyen to EVP of underwriting and Robert Durand to EVP of financing; both will also sit on the investment committee, which reviews potential acquisitions for KBS. They will replace Lori Lewis, EVP of financing and underwriting, who will be retiring after 20 years with KBS.
In her new role, Nguyen will oversee a team responsible for the underwriting, due diligence and closing of acquisitions across the country on behalf of KBS REIT, pension-fund and sovereign-wealth-fund clients and will play a lead role in managing and building relationships with third-party consultants. She will continue to have a hand in the training of analysts and the development of operational and analytical tools used throughout the company.
Durand will be responsible for overseeing the KBS financing team, developing lending relationships and structuring and negotiating the financing for KBS real estate assets. He brings 20 years of commercial real estate experience to the evaluation and approval of all new investment opportunities for the company.
We spoke exclusively with Nguyen and Durand about the process of REITs underwriting assets and REITs' main concerns at this point in the cycle.
GlobeSt.com: What considerations do REITs go through in terms of underwriting assets?
Nguyen: I can't speak for other firms in the business, but KBS's underwriting team is involved throughout the course of due diligence and closing for our REIT acquisitions. Our experienced team works closely with, but independently of, our acquisitions team to ensure any possible issues are discovered and vetted and that the assets acquired meet the requirements of our REITs. Our team also works in conjunction with other key departments within our company such as accounting, reporting and compliance to make certain that REIT rules and regulations are adhered to and that stockholders are informed. Transparency continues to be key in this ever-changing climate for the REITs.
GlobeSt.com: Have the challenges in underwriting assets increased for REITs over the years?
Nguyen: The first KBS-affiliated company was formed in 1992, and KBS Capital Advisors is currently in its 10th year of managing non-listed REITs. Having gone through multiple real estate cycles, KBS has been able to streamline the underwriting process to operate efficiently and accurately. Strong relationships built throughout the years give sellers confidence that we will perform. The method of underwriting for the REITs have remained relatively consistent as we continue acquiring assets with the same integrity and detail.
GlobeSt.com: At this point in the cycle, what are REITs' chief concerns regarding real estate?
Durand: The commercial real estate financing environment remains very strong, but is being negatively impacted by the economy and new regulatory requirements. The industry has benefited from extremely low interest rates in the past years which have been passed down and realized by stockholders. Throughout 2016, loan spreads increased as lenders pushed additional regulatory costs on to borrowers. Lenders typically also get nervous as property valuations reach or exceed the prior cycle's peak values, and this will likely pose challenges to some types of property financings in 2016 and beyond.
GlobeSt.com: What else should our readers know about REITs and underwriting assets?
Nguyen: KBS continues to investigate actively and follow the latest trends of technology and real estate software to assist in our underwriting, management and reporting for our REITs. Maintaining consistent data that is accessible at our fingertips provides us the tools to compile and report data expeditiously and with confidence to our stockholders.
More than 300 of the industry's leading national investors, REITs, banks, private equity firms, asset management firms and other institutions will join us as we explore the market conditions behind the trends at this year's RealShare National Investment & Finance, scheduled for Oct. 5 and 6 at the Roosevelt Hotel in New York City. Learn more.
NEWPORT BEACH, CA—KBS's underwriting team works closely with, but independently of, its acquisitions team to ensure any possible issues are discovered and vetted and that the assets acquired meet the requirements of its REITs, Mimi Nguyen tells GlobeSt.com. The firm recently promoted Nguyen to EVP of underwriting and Robert Durand to EVP of financing; both will also sit on the investment committee, which reviews potential acquisitions for KBS. They will replace Lori
In her new role, Nguyen will oversee a team responsible for the underwriting, due diligence and closing of acquisitions across the country on behalf of KBS REIT, pension-fund and sovereign-wealth-fund clients and will play a lead role in managing and building relationships with third-party consultants. She will continue to have a hand in the training of analysts and the development of operational and analytical tools used throughout the company.
Durand will be responsible for overseeing the KBS financing team, developing lending relationships and structuring and negotiating the financing for KBS real estate assets. He brings 20 years of commercial real estate experience to the evaluation and approval of all new investment opportunities for the company.
We spoke exclusively with Nguyen and Durand about the process of REITs underwriting assets and REITs' main concerns at this point in the cycle.
GlobeSt.com: What considerations do REITs go through in terms of underwriting assets?
Nguyen: I can't speak for other firms in the business, but KBS's underwriting team is involved throughout the course of due diligence and closing for our REIT acquisitions. Our experienced team works closely with, but independently of, our acquisitions team to ensure any possible issues are discovered and vetted and that the assets acquired meet the requirements of our REITs. Our team also works in conjunction with other key departments within our company such as accounting, reporting and compliance to make certain that REIT rules and regulations are adhered to and that stockholders are informed. Transparency continues to be key in this ever-changing climate for the REITs.
GlobeSt.com: Have the challenges in underwriting assets increased for REITs over the years?
Nguyen: The first KBS-affiliated company was formed in 1992, and KBS Capital Advisors is currently in its 10th year of managing non-listed REITs. Having gone through multiple real estate cycles, KBS has been able to streamline the underwriting process to operate efficiently and accurately. Strong relationships built throughout the years give sellers confidence that we will perform. The method of underwriting for the REITs have remained relatively consistent as we continue acquiring assets with the same integrity and detail.
GlobeSt.com: At this point in the cycle, what are REITs' chief concerns regarding real estate?
Durand: The commercial real estate financing environment remains very strong, but is being negatively impacted by the economy and new regulatory requirements. The industry has benefited from extremely low interest rates in the past years which have been passed down and realized by stockholders. Throughout 2016, loan spreads increased as lenders pushed additional regulatory costs on to borrowers. Lenders typically also get nervous as property valuations reach or exceed the prior cycle's peak values, and this will likely pose challenges to some types of property financings in 2016 and beyond.
GlobeSt.com: What else should our readers know about REITs and underwriting assets?
Nguyen: KBS continues to investigate actively and follow the latest trends of technology and real estate software to assist in our underwriting, management and reporting for our REITs. Maintaining consistent data that is accessible at our fingertips provides us the tools to compile and report data expeditiously and with confidence to our stockholders.
More than 300 of the industry's leading national investors, REITs, banks, private equity firms, asset management firms and other institutions will join us as we explore the market conditions behind the trends at this year's RealShare National Investment & Finance, scheduled for Oct. 5 and 6 at the Roosevelt Hotel in
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