Real estate firm Strategic Capital Partners LLC has hired investment banking veteran Keith Getter to step up the firm's fundraising efforts, part of a plan to expand into cities in the middle of the country, like St. Louis and Nashville, Tenn.
Mr. Getter, 49, started this week as managing director of capital markets and business development, a new position at Strategic Capital, an investment firm founded seven years ago by Gene Zink, a former Duke Realty Corp. executive. As a young investment banker, Mr. Getter helped Mr. Zink take Indianapolis-based Duke public in 1993, one of more than 30 real estate IPOs Mr. Getter has been involved in during his career.
“When we started discussions a couple of months ago and Gene asked me to join him in this senior capacity, I think the relationship that goes back a long time was one of the principal reasons I considered it,” said Mr. Getter, who earned his undergraduate degree from Dartmouth College and an MBA from Washington University.
The firm doesn't own anything in Chicago, but that could change, Mr. Getter says.
Because big cities like New York and Washington, D.C., are becoming overpriced, more investors are turning to smaller markets that offer a higher rate of return, says Ben Thypin, director of market analysis for New York-based research firm Real Capital Analytics.
“If you're a foreign investor or an insurance company, maybe you can afford to pay a higher price and get a lower yield,” he said. “But everyone else is not willing to pay those prices, so (investors) are going to be more likely to move into these secondary markets.”
Read more: http://www.chicagorealestatedaily.com/article/20120420/CRED01/120429986/investment-banker-joins-real-estate-firm#ixzz1st2FmSyB
Bank of America Corp. (BAC) agreed to sell a 31-story office tower at 222 Broadway to Beacon Capital Partners LLC and L&L Holding Co.
...Buildings in lower Manhattan sold for an average of $249 a square foot in the 12 months through March, said Ben Thypin, director of market analysis for Real Capital Analytics Inc. Prices in the area have been driven down amid expectations that the World Trade Center, which is under construction, will pull tenants away from other buildings, he said.
Read More: http://www.businessweek.com/news/2012-04-16/bank-of-america-to-sell-31-story-manhattan-office-tower
When it comes to capital attraction, 2012 is shaping up to be the year of the secondary market—but which ones can sizzle like a sexy sixer?
Ben Thypin, Director of Market Analysis, Real Capital Analytics: Raleigh–Durham, Phoenix, Seattle, San Jose. “Institutions are now venturing into those secondary markets in search of yield.”
The shadow market now has its first government program.
The Federal Housing Finance Agency (FHFA) rolled out the pilot phase of its Real Estate Owned (REO) Initiative in February. The program allows investors to buy foreclosed single-family properties in the nation’s hardest-hit metros, with a catch—those properties must remain rentals for a certain number of years.
Fannie Mae is supplying the first round of foreclosures, offering pools of various types of assets, including homes already being rented, vacant properties, and nonperforming loans. But it’s just a guinea pig to test investor interest, operational strategies, and financing structures to prove the idea out.
The biggest question is, how will that management challenge cut into an investor’s return? “The yields in scattered single-family are still very uncertain—it could be on par with the low cap rates we’re seeing, because of how management-intensive they are,” says Ben Thypin, director of market analysis at New York–based research firm Real Capital Analytics. “Figuring out how to manage scattered sites is the puzzle. Whoever can figure out how to do that properly will make a lot of money.”
Read More: http://www.housingfinance.com/aft/articles/2012/march-april/0312-feature-The-Top-5-Risks-of-Single-Family-Rentals.htm
Ben Carlos Thypin
I am currently the co-founder of Quantierra, the world's first data driven real estate brokerage and investment manager. In my former life as Director of Market Analysis at Real Capital Analytics, I worked with press outlets large and small to provide them with great data and insightful commentary. Here are some of the results of this collaboration. For the rest, please check out the News Archive.