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Harold “Skip” Perry Joins the Editorial Advisory Group of the Real Estate Capital Institute®

realtycapital, 16 November 2007, No comments
Categories: People, The Institute

Chicago, Illinois, November 16, 2007 – The Real Estate Capital Institute® added the seasoned realty industry veteran, Harold “Skip” Perry, to its Editorial Advisory Group for 2008.  Skip is a former senior partner at Ernst & Young and has over 30 years of experience serving major developers, public and private investors and financial institutions.  Skip’s new company, Real Globe Advisors (www.RealGlobeAdvisors.com) is headquartered in Chicago.  The firm provides tactical and strategic financial advisory services to the commercial real estate industry.

The Real Estate Capital Institute’s Editorial Advisory Group (“EAG”) members typically serve a two-year term and include some of the nation’s most renowned realty professionals and scholars.   The group is composed of capital providers, investment bankers, investors, consultants, academicians and appraisers.  The Institute solicits market comments from these industry leaders as well as other senior executives.

Although the Institute collects market research from various sources, EAG member observations are particularly important.  Issued monthly or more frequently (depending upon market conditions), EAG comments track market momentum.  To protect privacy and promote an open exchange of ideas, many EAG observations are posted anonymously.   Members’ comments, furthermore, don’t necessarily reflect opinions of their respective organizations, employers or the Institute. 

According to the Institute’s research director, Nat Zvislo, “Given the highly volatile realty capital market behavior during the past four months, fresh EAG opinions and comments are especially important today to keep track of frequent and dramatic changes.” 

ABOUT US:

The Institute is an independent research association dedicated to studying real estate capital markets.  With roots dating back to 1983, the Institute is staffed by volunteers.  The Institute’s research is based on the analysis of current income-property debt/equity market data.  Funding parameters — including yields and pricing – are posted daily for apartment, industrial, retail, office and hospitality properties.   

Based on EAG feedback, the Institute now covers markets with the highest frequency.  Last year, for instance, the Institute recently announced the nation’s first toll-free, independent mortgage rate watch (e.g., not advertising specific lender rates).  The service is known at US-RATE-WATCH (1-877-283-9282).  The newscast announces key Treasury, LIBOR, Bank Prime and permanent mortgage rates.  The information is refreshed every hour throughout the day.

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Las Vegas, NV - February 6, 2010 - According to industry leaders gathering in Las Vegas this week, debt capital is readily available for 2010.  Optimism is in the air and the mortgage lenders are starting to offer more generous terms and conditions.  In summary, timing is excellent for select borrowers in securing debt based on the following conditions:  (1) Recovering economy, (2) Ample supply of capital and (3) Limited supply of financeable real estate assets.  The following highlights summarize the 2010 state of the realty capital markets including an overall outlook and overall funding program offerings:  Back to Basics:  As lenders workout of their legacy problems, new funding goals surface which are clearly more ambitious than 2009. Still underwriting of actual numbers w/o projections, yet inflation fears exist. Most lenders are Indifferent to spreads, but not competition. Valuing real estate properties in a declining market still a challenge. More allocation of funds available above target amounts if deal flow is of sufficient quality Underwriting Dynamics:  As has been the case last year, high-quality projects in major markets backed by excellent sponsorship and cash flow characteristics are most desired—especially based on low leverage of 65% of value.  Location/Property Types: Major MSAs strongly preferred for optional pricing and leverage.  Otherwise a substantially most costly financing with lower leverage. Preferred property types ranked in order:  (1) Multifamily, (2) Credit-Tenant lease of all property types, (3) Industrial, (4) Retail, (5) Office - however medical office ranks equal to Industrial and (5) Lodging. Pricing (Permanent Fixed-Rate Loan): Agency pricing for apartments starts in the low to mid-5% range for 5 year or greater term. Life company pricing starts mid-5% to 6% for 5 years or more term mostly targeted for commercial property pricing (agencies are more competitively priced) More entrepreneurial funds start at 7% or more targeting secondary markets, smaller fundings, older properties and lodging assets. Add a pricing premium of 25 to 50 basis points for loans below $5 million. Yield differential disappearing - typical ($5 to $50 million) vs. larger loans. Forward funds available up to a year based on 6 o 8 basis points premium per month.  Leverage: Above 65% LTV on a select basis combined with lower spreads. Values based on the lower of: (a) purchase price, (b) appraised value or (c) lender imposed capitalization rate.