Tuesday, May 28, 2013

Attendees of Akerman U.S. Real Estate Summit Detail Improving CRE Sector

  
Annemarie DiCola
ATLANTA, GA (May 28, 2013) – Declining loan delinquencies, high investor demand for core assets and a stronger banking system. Those were some of the commercial real estate market dynamics discussed at the fourth annual Akerman U.S. Real Estate Summit in Miami.

 The most recent episode of the “Commercial Real Estate Show” radio program, hosted by Michael Bull of Bull Realty, presents interviews recorded at the show, which focuses on the issues facing commercial real estate investors. Bull and his guests discussed a wide range of issues impacting those who buy and sell commercial properties.

Michael Bull
 The delinquency rate for commercial mortgage loans in commercial mortgage-backed securities (CMBS) dipped to 9.5 percent this spring, said Annemarie DiCola, CEO of Trepp. “We are trending in a direction that is good,” DiCola said. “These loans represent a wonderful proxy for what is happening in commercial real estate in the U.S.”

The mid-sized banks that commercial real estate investors rely so heavily on are generally in good shape now, DiCola added. “We think that the majority of them are strong and healthy,” she said.

Richard Bezold
 Opportunities to purchase distressed assets have declined, as there are now fewer of them, said Richard Bezold, chair of Akerman’s Real Estate Practice Group. 

“Clearly, the emphasis in the last 18 months has been on core product,” Bezold said. “That’s been trading really well. When core product comes online, you’re seeing 10, 15, 20 bidders for it. Outside of the core assets, you’re not seeing those bidders yet.”


Darryl Parmenter
 Overall, today is still a good time to buy commercial real estate, said Darryl Parmenter, CEO of Parmenter Realty Partners, which invests heavily in office properties. “We think it’s a very good time to buy real estate,” Parmenter said. “We’re able to buy at material discounts to replacement costs.”

 As far as property performance, the “real estate market continues to be volatile,” Parmenter added. “The office sector is somewhat less volatile than some of the others.”

Tom Sittema
 Tom Sittema, CEO of CNL Financial Group, said his firm has made the acquisition of seniors housing and healthcare facilities in secondary markets an investment priority. “The fundamentals in that space are very compelling,” he said.

 The investment picture for resort properties, second homes and vacation-related properties remains a mixed bag, said Andrew Robbins, chair of Akerman’s Lodging and Lifestyle Practice Group. Timeshares, which are a “middle-market product,” are selling well, he said. “They took a bit of a hit during the downturn but they’re very much alive and well.”

Andrew Robbins
 On the other hand, investor interest in the new development of traditional resorts that combine hotels with for-sale residential units remains miniscule, Robbins added. “You’re probably not going to see resort development take off in any meaningful way until there is an ability to sell [the] residential real estate,” he said.

 The entire episode on the Akerman U.S. Real Estate Summit is available for download at www.CREshow.com. The next “Commercial Real Estate Show” will be available May 30 and will feature interviews from the recent RECon 2013 retail show in Las Vegas.

 For a complete copy of the company’s news release, please contact:

Stephen Ursery
The Wilbert Group
404.405.2354


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