IMN Winter Private Fund Investing Forum 2023 Highlights
January 26, 2023
The 19th annual IMN Winter Forum on Real Estate Opportunity & Private Fund Investing was held at the Montage Resort & Spa in Laguna Beach, California last week. Over 1,000 registered attendees gathered for the three-day event including asset managers, developers, funds, finance professionals, and more. Slatt Capital team members joined the event and the following are their key takeaways from the prominent event.
- The appetite for deals remains strong, though there is more scrutiny on deals as nobody can judge where cap rates are nor where they will be over the next several months. Both equity and debt are underwriting to higher exit caps to be more conservative.
- While debt is expensive, the decreasing construction costs are offsetting the increase in debt cost.
- Lots of opportunities for Mezz/Pref and Equity to come on deals that were underwritten too aggressively on construction take-out and will require a cash-in in order to pay off construction loans. Those deals are ramping up as many 24-month construction loans were written when SOFR and Libor were at practically zero.
- Multifamily and industrial are leading asset classes in terms of demand, followed by grocery-anchored retail, with some shops getting more comfortable with certain types of hotels. Office remains the least desirable of the major asset classes.