Commercial Real Estate Loans & Investment Sales

Economic Update First Quarter Numbers Show Continued Strength

Article by Benjamin Mark Cole Via Debt & Equity Journal

Question: How flush are the current capital markets for commercial real estate? Answer: It just doesn't stop. As one veteran industry economist says, “Goldilocks is back” to describe the perfect temperature for real estate borrowers and investors.

Full Article >

For information about commercial real estate loans, contact Pacific Security Capital at 1-800-844-6085.

Unlocking the Value in Today’s Competitive Investment Sales Market

Commercial Real Estate Investment Bank Pacific Security Capital defines how to unlock the value in today’s competitive investment sales market.

     

Pacific Security Capital, a leading commercial real estate investment bank, focuses on creating value in today’s competitive investment sales market and identifies valuable strategies to follow to achieve success in investments.

Mike Myatt, executive managing director, Pacific Security Capital shares “there is little doubt that we are currently experiencing one of the most heated sellers markets in recent history.” Myatt continues, “today’s investment sales market has been reduced to an e-bay like environment where retail brokerage houses simply put an asset up for auction and wait for the buyers to circle like hungry sharks.”

Many will point to the increased flow of funds in the commercial capital markets creating a demand-side frenzy that is causing a compression in cap rates and escalating prices to all time highs as justifying current market tactics. Myatt adds that, “while there is an element of truth surrounding the logic contained in the previous sentence, I believe it is simply easier for many buyers to blame the market and follow the herd rather than adapt their acquisitions plan.”

The follow the herd mentality is evidenced by the fact that many institutional buyers like REIT’s, TIC syndicators or foreign investors seem content to participate in the madness rather than seek alternate investment sales strategies. The need to place funds seems to be taking precedence over making good investment decisions for many in today’s market.

The real opportunities in today’s investment sales market are not found by following the herd mentality but can be found in the application of any of the following strategies:

1. “Off-market” transactions: Seek out assets that are not listed by retail brokerage firms. Hire an investment bank to approach principal owners on a direct basis negotiating with them on assets that are not publicly for sale.
2. Change Market Focus: Focus your acquisition strategies on secondary and tertiary markets where there will be less competition for assets. Additionally stay out of the hot markets and look toward markets recovering from downturns.
3. Change Asset Class Focus: Rather than chasing multifamily and retail properties look for opportunities in office, hospitality and industrial asset classes.
4. Stay Away from Traditional Trophy Assets: If you must buy big look for opportunistic plays that have higher vacancies, lease roll-over risks, of financing issues. An asset doesn’t need to be located in New York, Chicago or Los Angeles or be fully leased to constitute a trophy designation.
5. Look for Joint Venture or Recapitalization Opportunities: Many of the best investment opportunities in today’s market are not found in out-right acquisitions. Explore joint ventures that will allow you to co-invest with existing owners of assets in a fashion that will allow them to free up trapped equity or fund new developments.
6. Change Your Acquisition Process: Traditional acquisition time frames that were competitive 12 months ago will leave you on the outside looking in with today’s frothy market conditions. Be willing to make unsolicited offers, put up meaningful earnest money deposits and close quickly.

About Pacific Security Capital (PSC)
Pacific Security Capital (“PSC”) is a leading commercial real estate investment bank and real estate capital markets expert. Pacific Security Capital provides commercial real estate loans, structured finance, investment sales and advisory services for commercial real estate projects requiring more than $3MM in financing. Pacific Security Capital is headquartered in Portland, Oregon with other locations across the United States.

For information about investment sales, contact Pacific Security Capital at 1-800-844-6085.

Are Heavy Insider Sales a REIT Sell Signal?

Article by David Bodamer Via Retail Traffic

When company insiders sell shares, there may be many reasons that have little to do with the fundamentals of the business or how executives and directors feel about the company's prospects. They may need money to pay taxes, to prepare for retirement or to buy a vacation home.

On the other hand, when there is a pattern of selling across an industry, that makes other investors wonder whether it's time to rethink their own commitment to those companies. This little cloud of doubt has just appeared in the REIT sector, where insiders at dozens of companies have been making abnormally high sales and abnormally low purchases in recent months. In the first quarter, REIT insiders sold $169 million worth of stock while buying $1.1 million. That followed a fourth quarter of 2004 where insiders sold $271 million versus purchases of $33 million, according to data compiled by Lehman Brothers REIT analyst David Harris.

Full article >

For information about REIT Transactions, contact Pacific Security Capital at 1-800-844-6085.

Capital Markets Deepen Impact on Market

By Michelle Napoli Via Net Lease Forum

According to the recent RealShare report:

The trend of increased institutionalization in the net-lease market could very well have staying power. Public or private, debt or equity, there is no shortage of capital available to the net-lease market, and that is having a long-lasting impact on the numbers.  Full Article >

For information about commercial capital markets, contact Pacific Security Capital at 1-800-844-6085.

Executives See Improving Conditions, Says NMHC Survey

Article by Sule Aygoren Carranza Via Multi-Housing Forum (subscription)

The latest quarterly survey of apartment market conditions from the National Multi Housing Council reveals that fundamentals are picking up in almost every US market. The April study showed that quarter-over-quarter improvements for the third quarter in a row and just the fourth time in the survey’s six-year history, according to the Washington, DC-based organization. Full article >

For information about apartment  loans, contact Pacific Security Capital at 1-800-844-6085.

The Rise In Interest Only Loans

Article by Parke Chapman Via National Real Estate Investor

For those sniffing out possible troubles ahead for commercial real estate, add this one: The huge growth in interest-only (IO) loans over the past three years. As of January 1, 55.8% of all fixed-rate conduit loans featured IO periods—up from 5.9% at the beginning of 2002. And 35.6% of these loans are IO for the full term, according to an analysis by Moody’s Investors Service.

Full article >

For information about commercial real estate loans, contact Pacific Security Capital at 1-800-844-6085.

Pacific Security Capital Announces Strategic Partnership with Swinerton

Pacific Security Capital and Swinerton leverage strengths to deepen client relationships.

Pacific Security Capital (“PSC”), a leading commercial real estate investment bank providing commercial real estate loans, structured finance, investment sales and advisory services announced today that it has formed a strategic partnership with Swinerton, the 5th largest general contracting firm in the country. Specific terms of the partnership were not disclosed. A formal launch of the partnership was kicked-off at Swinerton’s annual conference held at the Hyatt in Lake Tahoe earlier this month.

The partnership provides Swinerton the ability to offer a capital markets solution to its client base and in turn allows PSC to offer value added construction services to its clients further extending the brand reach and competitive separation of both entities. "The ability to align ourselves with the 5th largest contractor in the nation gives us the ability to bring a much needed service from a best in class provider to our clients,” said Mike Myatt, Executive Managing Director of Pacific Security Capital.

The partnership between Swinerton and PSC underscores both companies dedication to diversifying and expanding their shared business strategy of deepening client relationships by leveraging strategic partnerships that add value to the client experience.  “PSC has become one of the fastest growing real estate investment banks in the country by continually looking to respond to the needs of our clients in ways that clearly separate us from the competition,” said Myatt.

To learn more about Pacific Security Capital or PacificEliteTM please visit our commercial real estate loans web site or call 1-800-844-6085

-###-

Business Contact
Mike Myatt
Pacific Security Capital
800-844-6085
MikeM@PacificSecurityCapital.com

 PR Agency Contact
Karen Sams
Misukanis & Odden
952-400-0234
ksams@misukanisodden.com

About Pacific Security Capital Pacific Security Capital is a leading commercial real estate investment banking firm providing commercial real estate loans, structured finance and advisory services. The combination of direct lending, investment advisory, intermediary, corporate and professional services, syndication and acquisition services consistently allow PSC to rank among the leaders in the industry. PSC is headquartered in Beaverton, Oregon with other offices in major markets in the United States and the European Community. Visit us online at PacificSecurityCapital.com.

About Swinerton The Swinerton family of Companies began in 1888 and today represents a fully integrated construction services firm headquartered in San Francisco operating more than 20 offices producing more than $2 Billion in construction annually. More information about the company can be found at www.Swinerton.com

Commercial Real Estate Values Prolong Climb

The National Real Estate Index, published by Global Real Analytics, LLC, reports that values of commercial real estate in the United States prolonged their steady climb, as investor interest remains strong amid an environment of low interest rates and improving real estate market fundamentals.  Full Article at  MarketSource >

For information about commercial real estate loans, contact Pacific Security Capital at 1-800-844-6085.

Are Indian Greenfields Investors the Next Frontier?

Article by Dale Anne Reiss via GlobeST.com

In late February, the Indian government passed legislation aimed at promoting greater direct, foreign investment in the country’s burgeoning construction-development sector. Now, only a few weeks later, there are signs that the floodgates for foreign investment in so-called greenfield development are opening. GlobeSt.com recently reported that Tishman Speyer had announced a $250-million joint venture with India’s largest venture capital company--ICICI Venture Funds Management Co.--to pursue commercial real estate development opportunities throughout the sub-continent.

I recently returned from a fact-finding mission to India, visiting major commercial centers such as New Delhi and Mumbai. Given the outlook for the Indian economy, I’d be very surprised if Tishman’s initiative is the last or largest by an offshore real estate investor this year. In fact, it may be just the tip of the iceberg.

Full article >

For information about Commercial Real Estate Loans and Investments, contact Pacific Security Capital at 1-800-844-6085 .

Tag: commercial real estate investments