2018 Global Leaders in Real Estate Summit: Where will capital be coming from next year?
Attendees of the most recent Global Leaders in Real Estate Summit discuss where capital will be coming from next year.
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.
Attendees of the most recent Global Leaders in Real Estate Summit discuss how to close a deal in New York City real estate market, one of the most competitive markets in the world. Closing a deal requires patience and understanding of the market.
Attendees of the most recent Global Leaders in Real Estate Summit discuss the hottest areas for real estate development and investment. Real estate investment is driven by e-commerce and retail trends in Manhattan and Pennsylvania.
Attendees of the most recent Global Leaders in Real Estate Summit discuss opportunity zones, which include deferral of tax on capital gains and an exclusion of tax on certain assets, and are a great tax shelter for Section 8 or senior housing.
Attendees of the most recent Global Leaders in Real Estate Summit discuss foreign investment in the U.S. real estate market by Canada, Europe and countries in Asia such as China and Japan. Private equity seems to be flush with capital.
Attendees of the Global Leaders in Real Estate Summit discuss where the real estate sector is heading over the next couple of years, including the potential for a New York real estate market bubble-burst, local economics and regulation.