Investors Weigh In at Summit

Our San Francisco Investment Summit last week at the City Club featured a Who’s Who of experts. In case you missed it, here are video highlights, courtesy of our partners at Allen Matkins.
Reznick Capital Markets (soon to be CohnReznick) managing director Michael Hartman discusses the differences in risk profile between core, value-add, and opportunity investors. From a geographic standpoint, a six-pack isn’t just for drinking or displaying at the beach—they’re the cities (Boston, New York, DC, Chicago, LA, and San Francisco) that “stand in a class by themselves.” These markets are extremely expensive and difficult to get opportunistic returns. To find out what makes Dallas an NFL city but not Green Bay (sorry, Packers), click here.

Given the real estate industry’s poor record of foreseeing big events that have had the biggest impacts, Kilroy Realty CIO Eli Khouri says the thing he’s worries about the most is “the thing we’re not thinking about right now.” While Europe’s not going to have a resolution anytime soon, the outlook for the US is still very favorable because of demographics such as household formation. To hear how a certain big event in November will influence the economic recovery, clickhere.
Rockwood Capital partner Bob Gray says the company is selling as quickly as possible, because there’s a lot of yield chasing going on right now, particularly in the aforementioned six-pack markets. You might get lucky and get another window. In the fast-moving Bay Area, you may see three windows in 10 years so "you've got to get out when you can if you’re not a long-term holder." To find out more about Rockwood’s current activities, click here.

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