Top 10 CRE Investing Strategies for 2016


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 We see a great opportunity to invest in distressed retail assets, especially in lower priced suburban markets, says Ori.
WALNUT CREEK, CA—Where will the great opportunities to invest be in 2016? Will it be lodging? Distressed retail? Joseph Ori, executive managing director of Paramount Capital Corp.took a stab at answering that question in this commentary below.The  views expressed below are the author’s own.

Sell Class A Suburban and Urban Apartments

Owners of class A suburban/urban apartments that were built at high cost and high rent structure should be considered for sale. The double digit rent increases realized in many markets is coming to an end and the huge volume of new units coming to market is the greatest since the 1980’s. According to the Moody’s/RCA Commercial Property Price Indices, the prices for apartments is currently 33% above their peak value in 2007. The wily Sam Zell is selling 23,000 apartment units, located primarily in “hi-beta” markets to Starwood Capital for approximately $5.4 billion. Sam Zell, undoubtedly sees the unprecedented volume of new units coming on stream and is getting out at about a 5.5% cap rate. If Sam Zell is selling, I do not want to be buying…

Top 10 CRE Investing Strategies for 2016

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