Experts Weigh The State Of Capital Markets
With an eye on equity, the first panel at Bisnow’s Capital Markets event held last week at the Water Garden in Santa Monica broached the state of the current climate.
Some of the speakers told the more than 290 people in attendance they are seeing lenders pulling back.
Equity panel moderator Allen Matkins partner David Stone asked each of the panelists what they would do if they had $100M to invest in real estate and it was not their investors' money and what they think is currently happening in the market.
Kearny Real Estate Co partner Hoonie Kang said his company is looking for groups with which they can do more than one deal. In the current climate, Hoonie said there seems to be some fear of a possible black swan event and, as a result, "there does seem to be a pause."
Summit Equity Investments CIM John Lustgarten said current conditions have led his company to look at other cities—Albuquerque among them, as it's a market that withstood the recession well.
Bascom Group managing partner Jerry Fink said it seems investors' expectations have not decreased at all despite the current environment. Some of the other panelists agreed.
Ares Management managing partner Jay Glaubach said these days it's difficult to find traditional deals. Now people have to think more outside the box, according to Jay, who said banks are being more conservative.