EXIT STRATEGY

Carter's healthcare and technology REIT has an exit strategy in mind. And he told the packed house at Bisnow's 3rd Annual Atlanta Capital Markets Summit last week it just needs to raise  another billion more.
 
Carter's  Jim Shelton (next to Centennial Holding's Andrew Trotter), who also directs the activities of the firm's non-traded Carter Validus Mission Critical REIT, says the fund is ?hoping to raise a billion or so  in the next two years? to buy healthcare and data center facilities. (It's already amassed $100M through a pool of some 3,000-plus investors.) With buys in the 8.5% to 9% cap range, Jim says the hope is to then sell the whole package at a 7 cap: ?Ultimately the exit  there is a sale hopefully to another REIT.?
 
Jim (second from right) was part of our second panel that included The Reznick Group's  Michael Hartman (moderator), Jamestown Properties' Matt Bronfman, North American Properties' Tim Perry, and Centennial Holding?s  Andrew Trotter. Jim also chatted about Carter's purchase last year of The Medici Building (along with partner Piedmont Office Realty Trust), acquired at  $88/SF (155k). Jim says it's now stabilized and could sell for a 7% cap, ?but time will tell.? (Father Time has very particular opinions about cap rates.)
Tim hinted to the audience that North American Properties may be about to get financing to get its much-watched Avalon project under way. From where, Tim? ?It's life insurance  companies or large banks,? but he declined to be specific.

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