2018 Global Leaders in Real Estate Summit: Where will capital be coming from next year?

December 17, 2018

Attendees of the most recent Global Leaders in Real Estate Summit discuss where capital will be coming from next year.


Transcript

Mike Lefkowitz: With regard to financing and where's financing right now? We're in a very mature market. I think a lot of your major lenders are being cautious. Many of your equity funds are still lending heavily on good assets, and the market seems to be fairly strong.

Jay Neveloff: I believe that lenders are more sophisticated than they were the last time and they're not going to look to the borrowers who are going to look to work with the borrowers. And for that reason, I think we're going to see a lot of recapitalizations, a lot of fresh money coming into existing deals. There's an immense amount of capital that's available for real estate investment. One of the largest growth areas are in these mega family offices, and they're different than the fundamental private equity investors because they have a longer time horizon and it changed the dynamics a lot.

John McClatchy: There's a great opportunity in the secondary market. The primary market is point capital, but there's a lot of people in tenure projects that are looking to exit those projects but have no way to exit. So there is a new opportunity out there called opportunity zones that gives an investor an ability to defer capital gains, and the secondary market people exiting the secondary market going into opportunity zones, we think is a great sector of a new capital coming into the market.

 

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