Investors and OC: A Love Story

Investment sales volume is strong so far this year, and CBRE SVP Philip Voorhees (left), in the company’s Newport Beach office, tell us that he’s expecting OC and SoCal volume in the entire first half of 2014 to be strong as well. Here’s why.

1) With interest rates remaining lower than predicted, yields in investment alternatives—cash, stocks and bonds—aren’t compelling on a risk-adjusted basis, particularly with anticipated inflation, Philip says.

2) Not only that, tenant-driven development activity returned in 2013, and more new projects are set to break ground in 2014, mirroring increased tenant confidence in the economy. Investor interest often follows tenant interest, and he says he expects increasing retail investment sale volumes over the next four to five years.

3) He also tells us that this year will be the first big year of CMBS maturities. “The 10-year shadow of 2004 will set the stage for dynamic transaction activity in 2014," he says. (Sounds more dramatic than a 5 o'clock shadow.) Recently Philip, along with colleagues Megan Read, Jimmy Slusher, John Read, and Brad Rable repped the seller of the sale of 285k SF TownGate Center in Moreno Valley to Brixton Capital for nearly $42M. Philip and Jimmy, also repped the seller in the $11M sale of MacArthur Plaza at 2 Hutton Centre in Santa Ana (pictured) to a private investor.

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