REGISTER FOR THE CONFERENCE: https://imn.org/newport

The 24th Annual U.S. Real Estate Opportunity & Private Fund Investing Forum

June 19-21, 2024 | Newport Harbor Island Resort | Newport, RI

 

Jake Bisenius, Chief Investment Officer, AmCap Inc.

Do you see any green shoots developing? What are they? I do see more interest in our space developing, and some of the pension funds seem to be back to investing mode as they are resolving their denominator issues. 

Tell us about the last deal you did? We purchased an asset from an open end fund that needed liquidity, they left a couple of vacancies that we now have new leases for the space.

How are your LPs holding up? Our LP’s seem like they are holding up well but still not that active for new deals.

What has humbled you over the last year? I think interest rates spiking and driving down the value on assets.

What are you looking forward to at the IMN Opportunity Funds Forum in Newport RI? Meeting new capital sources and investment partners.

Which summer blockbuster movie, concert, TV show, vacation spot are you looking forward to? We are looking forward to attending the Olympics.

 

Brad Howe, Chief Executive Officer, Broadshore

Do you see any green shoots developing? What are they? I do not see a near term catalyst for an improvement in the market.  Valuations have another leg down as sellers finally capitulate on pricing due to the reality of “higher for longer”. Watch the actual loan sale activity in 2H-2024 and 2025 from primary lenders.  Until that starts in earnest, lending activity will be constrained.

 

What is the latest on one of your workouts? We are the noteholder on a retail condo in Manhattan and attempted to negotiate a restructure with the borrower.  Borrower was unwilling, or unable to provide significant new equity capital to complete restructure.  We are proceeding to foreclosure.

What are you looking forward to at the IMN Opportunity Funds Forum in Newport RI?  Perspective from other conference participants.

 

Michael McCarthy, Managing Director, Investments, Eastern Region, Cabot Properties, Inc.

Do you see any green shoots developing? What are they?  On the logistics front – construction starts are way down and certain subsets of the asset class are outperforming.

Tell us about the last deal you did? A solid cash-flowing newly delivered building in the Lehigh Valley.

What is the latest on one of your workouts? No current workout situations.

How are your LPs holding up? Denominator effect is now less of an issue but return of capital has been slow.

What has humbled you over the last year? An incorrect prediction of cap rates in the logistics space.

What are you looking forward to at the IMN Opportunity Funds Forum in Newport RI? Meeting new people and hopefully adding value to the panel.

Which summer blockbuster movie, concert, TV show, vacation spot are you looking forward to? It might not be the summer, but Pearl Jam is coming to Fenway in September and I am looking forward to seeing them again.

 

Kaylee McMahon, Principal, CFQ Multifamily

Tell us about the last deal you did? 111 unit Corpus Christi - Partner mis-management and gross negligence- my last turnaround project. Sold off 72 units. Currently renovating fire and vagrant occupied parcels. 7 leases from stabilized occupancy to sell this summer. Working with us treasury department to recover funds.

How are your LPs holding up? They want to harm my former partner but they are supporting me as I fight for them. In another deal, I took many green LPs, who are overwhelmed and had to bring in new partners, who are more sophisticated, for capital calls, to finish the deal up and dilute due to refusal to contribute.
What has humbled you over the last year? Everything. Losing everything. Personal and in business but not my life that has incredible purpose .

What are you looking forward to at the IMN Opportunity Funds Forum in Newport RI? To meet those who can capitalize on my hard-earned experience to invest in a new market (best in the country) in Texas. 

Which summer blockbuster movie, concert, TV show, vacation spot are you looking forward to? Nora en pure rave. 

 

 

Ryan Swehla, Co-CEO, Graceada Partners

Do you see any green shoots developing? What are they? We have begun to see pricing in the multifamily and multi-tenant industrial market meaningfully adjust downward. Today we’re able to underwrite to greater than an 8% untrended yield on cost, +17% net IRR and +2.0x net MOIC where just 18 months ago these level were unattainable. We are also seeing increased appetite for allocating capital.

Tell us about the last deal you did? 144-unit multifamily in Bakersfield, CA with in-place rent 35% below current market and no RUBS (utility reimbursement). Gross underwritten returns of 25% IRR, 2.74x, 9% untrended yield on cost. Acquired at $159/sf or 58% of replacement cost. Off-market sourcing (we were the only prospective buyer) through a broker relationship. Third asset acquired in the market. Will be executed through our vertically-integrated team.

What is the latest on one of your workouts? Of the 35 assets currently in our portfolio, we have no distress, work outs, at-risk loans, overleverage, or near-term maturities. Collectively across the portfolio we’ve grown NOI (net operating income) by 29% since acquisition and are currently at 55% LTV portfolio-wide.

How are your LPs holding up? Our LPs (like all LPs) are not happy about the market decline in real estate values, although it was somewhat anticipated and necessary. While many are capital-constrained (denominator effect and limited return of capital from prior investments), they tend to be bullish about deploying in this environment.

What has humbled you over the last year? Our focus is secondary & tertiary markets of the Western US. This is a sector that some institutional investors naturally shy aware from (due most often to misconceptions). Consequently, we spend a lot of time educating institutional investors. After years of doing this, over the last year we have more broadly seen institutions understanding, resonating with, and advocating for our strategy – to a greater degree than in the past). This has been humbling.

What are you looking forward to at the IMN Opportunity Funds Forum in Newport RI? I am new to this conference you look forward to providing value and insights where possible.

Which summer blockbuster movie, concert, TV show, vacation spot are you looking forward to? Avett Brothers performing at Red Rock Amphitheatre outside of Denver, CO

 

Ray Mazzie, Managing Partner, Southern Waters Development

Do you see any green shoots developing? What are they? There is plenty of opportunity to buy distressed opportunities in multifamily and BTR, both development sites and CO/operating assets.

Tell us about the last deal you did? We are working through an LP raise on 3 projects. 370 units of MF development in wildwood, FL / 250 units of Townhome development (BTR) in Ocala, FL / 300 units of MF development in Charleston MSA.

How are your LPs holding up? It is tougher to raise capital for traditional development, but they are eager for an opportunity to put money to work. It’s easier to raise capital for distressed assets at the moment.

What has humbled you over the last year? The way in which investor and market sentiment can change in an instant.

What are you looking forward to at the IMN Opportunity Funds Forum in Newport RI? I think it will be extremely valuable to hear from a large group of LPs as to where they think the market is going, and what their capital allocation strategy is going to be over the next year and of course what major factors / KPIs are they tracking as triggers for increase in investing activity.

Which summer blockbuster movie, concert, TV show, vacation spot are you looking forward to? Site visits throughout the SE USA are what I’m looking forward to.

 

 

Doug Faron, Managing Partner, Shoreham Capital

Tell us about the last deal you did? We’ve been fairly active over the last several months. In March, we acquired Mason at Van Dorn – a 1,180-unit multifamily property in Alexandria, Virginia, with our partners at Bridge Investment Group. The acquisition fits well within our strategy of opportunistically acquiring properties in great markets supported by strong fundamentals given the major development and growth occurring in and around Alexandria. More recently, we closed on the first phase of a luxury build-to-rent townhome community in Naples, Florida, alongside Sabal Investment Holdings.

What are you looking forward to at the IMN Opportunity Funds Forum in Newport RI? Attending the IMN Opportunity Funds Forum is a fantastic opportunity to network with industry leaders and peers, and I'm excited to gain new insights and perspectives on the latest trends and strategies in the real estate space. The sessions on regulatory updates, market forecasts, and innovative investment approaches are particularly appealing.

Which summer blockbuster movie, concert, TV show, vacation spot are you looking forward to? I’m looking forward to spending time on Block Island, where my brother and I recently acquired a boutique hotel and restaurant – The Atlantic Inn.  After completing a comprehensive renovation, I am looking forward to cocktails and a good meal on the lawn overlooking the Island and Ocean.

 

 

Gavin Campbell, Founder, Managing Partner, Steelbridge Capital LLC

Do you see any green shoots developing? What are they? Debt coming back for transitional assets from CMBS and debt funds: originations up substantially in Q1 2024 versus a year ago

Tell us about the last deal you did? Bought a single tenant, long term leased warehouse at a 7% cap.

What is the latest on one of your workouts? No workouts thankfully---we sold more of our earlier vintage property in 2017-2019.

How are your LPs holding up? Well. They are actively looking for opportunity.

What has humbled you over the last year? Volunteering in a migrant shelter.

What are you looking forward to at the IMN Opportunity Funds Forum in Newport RI? Reconnecting with friends.

Which summer blockbuster movie, concert, TV show, vacation spot are you looking forward to? Furiosa for sure.

 

 

REGISTER FOR THE CONFERENCE: https://imn.org/newport

The 24th Annual U.S. Real Estate Opportunity & Private Fund Investing Forum

June 19-21, 2024 | Newport Harbor Island Resort | Newport, RI