May 17, 2017
Connect San Francisco brought hundreds of CRE professionals to the SPUR Urban Center for an afternoon of panels and an evening of networking and cocktails. The discussions covered such topics as major mega developments shaping the skyline, investment in the Bay Area, and the creation of communities. Here are the highlights of Top Lenders & Capital Markets: Investing in the Bay Area panel.
HFF’s Charles W. Halladay led the panel in discussing current risk in the market, and its effects on deal-making today.
- RealtyShares’ Bill Lanting had expected a natural correction to take place in 2018-2020, but no longer thinks that’ll be the case.
- Lone Oak Fund’s Alexa Mizrahi is “ultra conservative” because construction financing is hard to obtain today, and both interest rates and construction costs are rising.
- City National Bank’s Charlie McGann says there is far more equity in deals today, when compared to 2016. With the Bay Area cap rates going low and driving prices high, it’s not about LTV or LTC ratios. Rather, cash flow is the biggest constraint.
- UBS’ Rod Chu says that while the exit strategy is important to consider, it’s “equally or even more important to look at the going-in basis.”