RealShare CENTRAL FLORIDA
Downturn Brings Opportunity
Cash is king for numerous discounted real estate deals
that can be found in Florida during the ongoing economic downturn, according to panelists at the second-annual RealShare Central Florida Conference on Oct. 16 at the
Gaylord Palms Convention Center in Kissimmee. While bank
financing is still available for transactions that make sense, experts concur that high leverage for commercial properties is a
thing of the past.
A crowd of more than 200 in attendance heard comparisons
between current and past market downturns, particularly the
early 1990s when the Resolution Trust Corp. was formed to take
over failing savings-and-loans. While the $250-billion federal investment into the nation’s banking system was designed to prevent a similar collapse, some panelists expressed that it may not
have much impact in freeing up credit for larger real estate
transactions. Andy Toxey, senior vice president with Regions
Bank, said banks would rather not carry billions of dollars worth
of foreclosed real estate assets on their books, as was the case
during the RTC days.
Panelists agreed that the depressed property market creates
new buying opportunities for institutional investors that have
sat on the sidelines for the past few years. However, they cautioned that now might not be the right time to make a move
since there is still uncertainty over whether the downturn has
indeed hit bottom.
“Finding the right numbers is the challenge,” Moses Salcido,
senior development manager for Panattoni Development Co.,
said during a Town Hall Meeting. “Maybe in the next six months
to six years they will start to surface.”
Seth Werner, chairman and CEO of Cypress Creek Capital,
said he believes investors can now take advantage of unprecedented opportunities throughout Florida, as in past down cycles. “The biggest difference is that we have more cash sitting on
the sidelines right now than we have ever had before,” he said.
Keynote speaker Jack Kemp, a former Department of Housing and Urban Development secretary and presidential candidate, offered his own encouragement. He pointed out that
conditions aren’t as bad now as in the early 1980s, when national unemployment and the federal funds rate were both in
double digits.
“Entrepreneurial capitalism is still the greatest system mankind
has ever known,” Kemp told the audience.—Carl Cronan —REFLA
The Honorable Jack Kemp delivers a rousing
keynote address.
Paul Ellis of CNL Commercial Real Estate leads the
Town Hall Meeting and forecasts the market.
Kyle Burd of Eola Capital offers insight on
getting deals done.
On the office panel, Caryn Carreiro of Eola Capital
discusses leasing and investment opportunities.
Doug Irmscher of Duke Realty cracks a joke on
the office panel.
Robert Abberger of Trammell Crow Company
leads the green panel and discusses return-on-investment improving strategies.
