There is plenty of equity out there wanting to invest in real estate. The trick is finding something to buy.
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That is the message from one of Atlanta's veteran commercial real estate executives just days before Bisnow's Capital Markets & Real Estate Finance event.
“The interest level in U.S. real estate from global investors, both institutional and high net worth, has increased incredibly in the last 10 years,” Atlanta-based Ackerman & Co. president Kris Miller said. “The biggest challenge an investor faces today is finding a deal that makes sense.”
Miller said there is capital waiting in the wings to invest in almost any product type in Atlanta as investors search for yield.
But what makes a lot of sense for Ackerman right now is industrial, and it is a sector that the firm has been beefing up in recent months. Most recently, Ackerman purchased Westgate Business Park, a three-building, 275k SF industrial portfolio from Clarion Partners for $7.6M.
“We're very interested in the industrial product in every submarket in Atlanta for both acquisition and development,” Miller said. “We believe that the future for industrial is rosy.”
Ackerman also is shopping some retail. Miller said the firm has an unidentified Kroger-anchored shopping center under contract near Avondale. Simply leasing up the vacant space will add value in the near-term, but there are some limited redevelopment opportunities the firm can explore farther out, he said.
Hear more about the state of equity from Miller, along with Scott Werbel, managing director of The Ardent Cos.; Tim Perry, chief investment officer with North American Properties; and Will James, vice president of NorthMarq Capital at the Capital Markets & Real Estate Finance event, 7:30 a.m., Wednesday, March 15, at the Buckhead Club. Register here.
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