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| Chris Campbell, Chief Executive Officer, Devonshire Fund, a service provider at the marcus evans Private Wealth Management Summit Spring 2012, on profiting from commercial real estate investments. |
NEW YORK, May 5, 2012 - (ACN Newswire) - "There is significant value in secondary and tertiary commercial real estate markets," says Chris Campbell, Chief Executive Officer, Devonshire Fund. He adds, "Many private wealth managers are interested in funds that buy or own trophy properties in primary markets as they are considered less risky, however, cap rates on such properties have compressed to pre-crash levels. The true value in commercial real estate today exists in non-trophy properties in non-primary markets."
From a commercial real estate fund attending the marcus evans Private Wealth Management Summit Spring 2012, in Amelia Island, Florida, June 3-5, Campbell discusses how the Devonshire Fund can add value to a private wealth portfolio, by focusing on distressed borrowers in the real estate markets instead of distressed properties.
- What real estate markets does the Devonshire Fund focus on?
Secondary and tertiary markets continue to offer cash flowing properties with significant upside potential.
- How do you find and add value?
By focusing on distressed borrowers as opposed to distressed properties, and by taking advantage of our over 150 years of combined commercial real estate experience.
For the small owner unable to raise additional capital, one or two struggling properties can sink an otherwise good portfolio of properties. We take the good properties, recapitalize them, and help the owner achieve a workout agreement with the lender on properties that do not fit our acquisition criteria. Due to the complexity of the sale we have few competitors for the acquisitions, which keeps transaction prices below market. We add additional value by completing tenant improvements left undone or incomplete, by upgrading tenants, and by extending or enhancing in-place leases.
Our experience gives us incomparable insight into targeted markets allowing us to find value where others might not, and long-standing relationships provide a continuous stream of acquisition opportunities and tenants to fill vacancies.
- Do private wealth managers need to proactively manage these assets to enhance their value?
If they have the time, knowledge and skill-set, now is the perfect time to invest in commercial real estate. However, a private wealth manager might not be able to achieve the same level results as a commercial real estate focused management team. Private wealth managers do not encourage their clients to manage their own money, and we do not encourage private wealth managers to manage their own commercial real estate.
- What are your thoughts for the future?
Interest rates will eventually rise. I would advise investors to take advantage of the existing historical spread between cap rates and cost of capital in order to mitigate downside risk in the event of future economic downturns. If they are using leverage in their portfolio, they should lock in low long-term rates while they can.
Cap rates are compressing as we speak. This historical investment opportunity in commercial real estate will not remain available indefinitely. Now is the time to act.
About the Private Wealth Management Summit Spring 2012
This unique forum will take place at The Ritz Carlton, Amelia Island, Florida, June 3-5, 2012. Offering much more than any conference, exhibition or trade show, this exclusive meeting will bring together esteemed industry thought leaders and solution providers to a highly focused and interactive networking event. The Summit includes presentations on unconventional investment strategies, Federal Tax Policy challenges, risk management strategies and the family office governance structure. For more information please send an email to info@marcusevanscy.com or visit the event website at www.privatewealthsummit.com/ChrisCampbellInterview
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The Investment Network - marcus evans Summits group delivers peer-to-peer information on strategic matters, professional trends and breakthrough innovations.
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Please note that the Summit is a closed business event and the number of participants strictly limited.
About Devonshire Fund, LLC
Devonshire Fund, LLC is a fully integrated real estate company that owns and operates high value, high cash flow commercial real estate properties located throughout the Midwest, Great Lakes, and Southeastern regions of the United States. The Fund specializes in established grocery-anchored and value-oriented Neighborhood Centers that can be acquired at a significant discount to replacement cost. www.devonshirefund.com.
Contact:
Sarin Kouyoumdjian-Gurunlian,
Press Manager, marcus evans, Summits Division
Tel: + 357 22 849 313
Email: press@marcusevanscy.com
Topic: Research / Industry Report
Source: marcus evans Summits
Sectors: Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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