News
JAMMIN' WITH THE CAPITAL MARKETS GANG
October 21, 2011
| The questions came fast and furious. Where do you go for financing? How do the global markets affect your town? What is the difference between a ?Gateway? city, an ?NFL? city, and the also-rans (little league cities), and where do you put your money? (We like NFL cities, even if our Panthers are 1-5. We're on the TV, ya?ll!) |
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| Charlotte's first annual Bisnow Capital Markets Summit was held Thursday at the Westin Uptown. And some heavy hitters from the world of high finance knocked 'em out of the park. (We know we're mixing our sports metaphors, but we don't have baseball Uptown,yet. We're working on it.) Our panelists were event sponsor Grandbridge Real Estate Capital SVP Mike Ortlip, Goldman Sachs Commercial Mortgage eastern region director Rod Reppe, our moderator, Reznick Group director Mike Hartman, Prudential Mortgage Capital Co managing director Paige Hood, and Highwoods Properties investment VP Carman Liuzzo. |
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| Attendees got an insightful, if sometimes unpleasant, taste of themodern markets. Multifamily is king. (Just not the condo variety.) However, Mike says that substantially occupied, established retail spaces still find buyers. But Rod cautions that CMBS loans are heavily tied to world events. ?If something horrible happens… it will definitely impact our pricing.? |
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| Grandbridge?s Miki Eide, EFI Global?s Bob Hird, BB&T?s Rob Vaughn, and Grandbridge?s Denise Cohen getting caffeinated. Rob, who works with BB&T?s unit that handles distressed properties, says multifamily is stable. Grocery-anchored retail centers also appear to be doing well. (In good times and bad, people need toilet paper and onions.) Other types of commercial properties? Well, it just depends. It's a sentiment reflected in the comments from summit attendee New South Properties' Dave Hendrick. New South specializes in retail brokerage and development. ?We're going to have to work through a lot of uncertainty and a lot of emotions.? (Maybe a good opportunity for a CRE reality show?) |
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| Grandbridge?s Mike Ortlip with Integrity Advisors Richard Marchettaand Chris Carlsen after the panel. Chris says his company helps commercial borrowers bring their investments in line with today's financial realities. A portfolio purchased four years ago, even something small, may have a big loan. Integrity helps refinance salvageable properties, or advises whether it's better to walk away. ?If we can right-size these loans,? Chris says, ?it does amazing things for the owner.? |
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| K&L Gates? CRE attorney Patrick Ridinger and First Landmark?sTim Hose were among the Capital Markets Summit attendees. Interest rates are as good as they can get, provided you plan to borrow on the right kind of property, Tim tells us. For Tim, that means solidly positioned multifamily developments. But there's almost no room at the inn for new construction. ?You can do it,? Tim says, ?but you're going to need a lot of equity up front.? |
