What We Heard: The NY Investment Summit

We were in attendance at the 4th Annual New York Investment Summit hosted by Bisnow.  The event included some of the leading national and local figures in real estate for a real-time look at the equity and debt markets.

The panel included managing directors and CEOs from Meridian Capital Group, MHP, Taconic Investment Partners, Canyon Capital Realty Advisors, M&T Realty Capital, Rockwood Capital, Prudential Mortgage Capital Company, CCRE, and Terra Capital Partners.  Each spoke about who the key buyers are, their sweet spots, the feasibility of achieving value add returns in secondary markets, as well as the types of deal terms and structures the industry is seeing today.

Here’s what we heard:
• Prudential’s Melissa Farrell says she has seen 30% of her business this year focused on multi family.
• Terra Capital’s Bruce Batkin has noticed a heavier focus on hospitality and less lending activity in NYC.
• Michael May of CCRE has seen more deals structured with a mezz player, while Prudential’s Farrell prefers not to work with mezz players.
• Prudential will consider working in recourse provisions when structuring a loan.
• When it comes to lending, Meridian’s Ralph Herzka says he is seeing new markets for lending while Bruce Batkin of Terra Capital has noticed “promiscuous lending” in NYC.
• David Ridini of Canyon believes chasing buildings with 3 to 4% CAP doesn't make sense unless you have diversity in your portfolio.
• Kamyar Haimif of Murray Hill Properties sees NYC as a tough tight market at the moment.
• Kevin Davis of Taconic sees capital partners not wanting to be exposed to guarantees.
• Davis also sees the necessity for a divorce clause in a partnership agreement and feels valuations are getting ahead of fundamentals.

For more from the event, check out Real Estate Bisnow