Part 2 of 2

SAN FRANCISCO-When asked if money today is smarter, Greg Vilkin, managing principal and president of MarcFarlane Partners, said that “Money today is more nervous than it has ever been.” Vilkin was a panelist at a recent Marcus & Millichap Real Estate Investment Services event held in San Francisco, and served on a private equity and multifamily-investment strategy panel moderated by William Hughes, SVP and managing director of Marcus & Millichap Capital Corp.

Hughes interviewed a panel, including Yat-Pang Au, founder and CEO of Veritas Investments; Bruce Dorfman, principal, Thompson Dorfman; Kyle Naye, senior associate, Clarion Partners; Paul Niewiadomski, partner, Stein & Lubin; and Vilkin.

“Everybody got burned from the last cycle of putting more money out than was needed,” said Vilkin. “I think that part of this cycle is that the institutional capital that’s putting in the equity money is a lot more careful this time—I don’t know if they’re smarter—but they still go into herd mentality.”

And they go into markets that have already proven themselves, he added, “and are now heading up and it’s impossible to get them into markets when it’s at the nadir—and they can actually make a lot of money.”

As earlier reported in Part 1 of this event coverage, the day’s event also included thoughts from John Sebree, VP and national director-NMHG, who kicked off the day-long event with an overview of the local Bay Area economy and multifamily trends. When it comes to investment sales, he noted that he is often asked if now is the time to buy or sell. “Yes is my answer.”

Sebree said there will be 2.2 million more 20-34 year olds by 2020, and he expects the apartment building boom to continue for the next few years.

The quote of the day came from Steven Levy, director and senior economist of the Center for Continuing Study of the California Economy in Palo Alto. “Yes this is a kickass local economy,” he explained, noting that the Bay Area is on the verge of recovering all of the jobs lost during the recent Great Recession.