Caution Still Rules Capital

Jenner & Block’s Don Horvath says that while the capital markets are improving, lenders are still being cautious with their underwriting. Don, who's moderating Bisnow's Chicago Capital Markets Summit on May 29 (you can register), says that for CRE investors prepared to accept a 50% to 70% LTV, a number of options exist, including banks and insurance companies that will lend at fixed rates. The low LTV ratios have kept many small and mid-market investors and private equity funds on the sidelines.

Joining him at the event is Heitman SVP David Maki, who joined the firm four weeks ago to help broaden its capital markets capabilities. David tells us that Heitman's core fund has experienced a significant inflow of new capital. As the recovery takes hold, he sees the office sector benefiting. As such, he says Heitman is strategically balancing its portfolio by adding office assets on the West Coast and continuing its focus on apartment investing. Hear more of David’s perspective at the event. Plenty of schmooze time, too! Sign up here.

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