| Likening the CRE market to an airport, Ernst & Young real estate audit partner Melinda Lawrence (right, with real estate tax partner Brooke Sikes) tells us that investors are like airplanes clogging up the runways waiting for departure. For the good assets, the skies are crowded. Melinda says Class A properties are starting to move with multiple buyers lined up, which is creating a surprising premium on some properties. “The debt market opened up for certain assets of high quality. Lenders are willing to lend in cases where investors have adequate cash flow to cover the debt service,” she adds. | |
| Sitting down last week with the duo at the Ernst & Young tower at 2323 Victory Ave., they tell us they're adopting the current buzz phrase about CRE: cautious optimism. Transactions are increasing and Brooke says investors have a heightened focus on due diligence and scrutinizing every deal. “There's a lot of cash to deploy and a lot of newly formed funds looking to capitalize,” she tells us. Brooke adds that when investors are ready to buy, they're very focused on the transaction, but should also consider the accounting and tax aspects. For example, when acquiring distressed assets, there could be tax traps they need to be wary of, she cautions. |
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