Since today's investors have low appetite for risk, they will likely be most interested in the firm's best
assets in urban markets.
Not exact matches
That's a big tax hit for real estate companies, but especially so for First Capital, given many of its
assets are
in urban markets, which have some of the highest property tax rates
in the world.
There are three key
assets: synergy effects related to the development and assembly of small and very small cars; instant access to cost - efficient production sites
in Japan and
in important emerging
markets like China, India, and others; and access to leading motorbike / scooter / quad / basic -
urban - transportation technology, a fast - growing segment
in which the VW Group is currently not active.
Our portfolio is mainly comprised of multi-tenant, Class A office properties located
in dense,
urban areas or central business districts, mixed - use retail or grocery - anchored centers
in high barrier - to - entry locations featuring credit - quality anchors, as well as Class A multifamily properties, including student housing
assets, strategically positioned
in our target
markets and
in high - demand locations.
Some will argue that
urban apartments can backfill units more quickly, but that's only true when compared to lower - tier suburban
assets — especially
in slow - growth
markets.
«From an investor standpoint,
assets in gateway cities are getting pretty pricey at this stage
in the cycle and yields are contracting so much, investors are looking at secondary
urban or suburban
markets,» says Scott Lathan, vice chairman and co-lead of the New York capital
markets group with real estate services firm Colliers International.
Still, Palmer Town Center looks like a promising
asset for its new owner, which is part of a wave of investors allocating money to healthy retail properties located
in urban secondary
markets.
Plus, when it comes to student housing and medical office properties, there is less emphasis on the
assets being located
in or near major
urban centers, meaning it's possible to find great opportunities
in secondary and even tertiary
markets, where the cap rates are likely to be lower overall.
Justin Palmer — Definitely, it's something that is tough for us to go and get scale, because we have also stepped up
in deal size, our first couple of deals were
in the five to 10 million range, and now we're doing 30 to 100 million, and we'd like to stay above 30, but we are going out looking at other
markets, particularly
in the multi family and senior housing space, we think there's still a lot of opportunity
in housing and
urban markets around the country, there's a lot of
urban markets well they're are seeing tremendous growth, and I think that's more of a structural shift
in where people want to live and work, and I think like you said, you're probably not going to see the rent growths you've seen around the country
in the past four or five years, but there are still opportunities to go buy a B
asset and turn it into a B + over the next 3 to 5 years and make good value there.
You plan on holding an
asset three years, five years, seven years, 10 years or whatever it is for that business plan, but you never know when you're going to need liquidity, or if you decide the
market is too hot for construction, let's sell this dirt, obviously being
in a core
urban market it has value.
«People who have the capacity to buy [
in the current
market] are not interested
in non-strategic
assets,» says Ross B. Glickman, chairman and CEO of
Urban Retail Properties, a Chicago - based retail developer and property manager.