Marvin C
100% Free Biz matchmaking -> LotsOfBiz.com PanamaHotelInvestment.com MyLink500.com TopLinked.com 9K
What kind of deals are medium to large real estate investors (i.e. institutions, funds, JV & private equity folks) interested in?
property types, locations, condition, class?
Any insight appreciated.
Have a great holiday!
TIA!
Marvin
Clarification added November 22, 2007:
for example an ideal response would be: I am an investment banker with equity partners looking for value-add properties (e.g. new construction, multi-family, mixed-use, retail) in major markets (1M+ population) in the US and Latin America starting from $5M+.
Answers (5)
HD G
Enterpreneur, Director, Goldkist Beach Resort Pte Ltd,Singapore
Best Answers in: Hotels (1), Intellectual Property (1), Business Development (1), Customer Relationship Management (1), Small Business (1), Starting Up (1)
In My opinion order shall be:
1.Good Location
2.Return on investments (future possible returns)
3.A scope of appreciation over mid term-say 3-5 years
4.Easily saleable & tenantable on needs.
TX
I see investment appetite in the 120+ units of new construction Class A multifamily properties in some areas of the Southeast, both market rate and affordable. Charlotte can't build fast enough apparently--low vacancies in apartments right now. Also Raleigh and Asheville.
Links:
Walter C
CEO, Figueroa Capital Group and Principal, Charles Dunn Company
Best Answers in: Commercial Real Estate (3), Venture Capital and Private Equity (2), Personal Real Estate (2), Hedge Funds (1), Option Markets (1), Using LinkedIn (1)
$2-5M requirements for up to 90% equity, with min. preferred return of 8-10% and IRR of at least 20% with 3-5 year holds, non-recourse to investors, good track records from sponsor. Would prefer fully entitled, don't like condos very much, but look at most markets. Prefer repositions to ground up spec., and like good pre-leasing activity. That's private funds.
Institutional usually starts at or near $5M, with mostly same hurdles, but may hold up to 7 years, and may accept more ground up spec., but only in major markets. Prefer new construction and class A, whereas private investors prefer value add in most cases.
We are building our 3rd opportunity fund, and are working on a larger institutional blind fund for 2nd quarter next year. We also source investments, and usually place all the debt as well. If you need to underwrite something, let me know.
These are two gentleman who are very in tune with the real estate market. They might be able to answer your question.
In the present real estate market most savvy investors are looking more into commercial investment opportunities rather than residential development.
Location in real estate is always key – Southeast is hot (do not include Florida)!
Most investors are not looking for equity at this time (too risky).
Have a squeaky clean balance sheet or you will be shot down.
If you have the right deal the sky is the limit with pricy private financing.
