With the 597 Fifth deal*, some brokers say Sitt overpaid for a building whose street-level interior space is landmarked, meaning that it will be difficult to stick just any old tenant in there.
However, Thor may be gambling the building can fetch higher rents, which is a bet many private-equity players make, said Ben Thypin, director of market analysis for Real Capital Analytics. “They’re always looking for the Goldilocks of risk,” Thypin said. “Risky enough, but not too risky.”
Read More: http://therealdeal.com/issues_articles/private-equity-unwrapped/
The Real Capital report also showed foreign buyers invested about $40 million in commercial property in Lee County in 2010 and have invested almost $36 million so far this year, compared to limited activity in 2008 and 2009.
In Collier, there were no foreign investment commercial property purchases for the past three years, but the report doesn’t capture all transactions. It tracks only investment purchases, not those for end-users, and captures only sales of $2.5 million or more, which leaves out smaller investments, said Ben Carlos Thypin, director of market analytics for Real Capital.
Still, foreign investors are buying more commercial property all across the U.S., Thypin said.
Read More: http://www.news-press.com/article/20111218/BUSINESS/312180025/Worldwide-Southwest-Florida-sells?odyssey=mod%7Cnewswell%7Ctext%7CHome%7Cp
“This is just what happens in Phoenix and Miami every 10 to 15 years, and then it comes back to the surface. For Vegas, this is probably only their second boom/bust,” says Ben Thypin, a senior market analyst for New York–based market research firm Real Capital Analytics (RCA). “When you’re investing in Phoenix and Miami, you can price in some rent growth or, at the least, population growth. Whereas in Vegas, the economic outlook is just so uncertain."
“The return of high-priced acquisitions in Phoenix over the past year and a half supports the thesis that it was a valuation issue more than oversupply,” Thypin says. “Properties are trading again at competitive prices, whereas if there was a huge supply, they would trade at higher yields."
Read More: http://www.housingfinance.com/aft/articles/2011/november-december/1111-feature-Distress-Test.htm
Thypin said sales last year averaged $151 per square foot. He said 2011's average could rise with a few more transactions before the end of the year. "I'd say we're probably in line with last year," he said.
In 2007-08, at the height of the Austin market, prices averaged $215 per square foot, Thypin said.
Compared with other markets, Thypin said, Austin is in better shape.
"Austin didn't really get hit that badly in the crash. There's not as much room to go up, because Austin didn't go down as much," he said.
Read More: http://www.statesman.com/business/real-estate/good-sign-for-market-firm-buys-2-southwest-2016967.html
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.