X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY—If 2011 serves as any indication, much of the equity generated in the industry this year may well come through recapitalizations. Last year saw a blizzard of recapsfrom the SL Green Realty Corp.'s $425.7-million recap of 180 Maiden Ln. with developer the Moinan Group, to Keystone Property Group's $23.8 million recap of Sentry Park West in Blue Bell, PA.

CBRE's Darcy Stacom says that “last year more than 50% of the volume was recaps.” She adds that she anticipates that 2012 could bring much of the same. “Before when we brought out a couple of the recapitalizations in a brokered format, people were pretty surprised,” she says. “Up and until then, recapitalizations had occurred when a partner would say to an operator, 'I want to be bought out'. The operator would then go run the auction to find a new partner and thereby take out the existing partner. The existing partner, in a lot of instances, felt there had been something left on the table, so we started to just go out directly with them.”

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 © 2021 ALM Media Properties, LLC. All Rights Reserved.