Ballard: I would agree that the multifamily market is currently fully priced. However, our investment strategy has always been on focused on finding unique opportunities where we can use our capital and expertise to create value for our investors. We still believe that those opportunities still exist, if you look hard enough.

GlobeSt.com: Since your firm has a history in multifamily investment, particularly as an equity partner, how will your approach to the investment change now that you're moving into being a direct owner/operator?

Ballard: Our approach will be more focused geographically. Previously we owned assets from Florida to California. For the time being our multifamily strategy will be concentrated in Colorado, Arizona, Utah and Texas. We're looking for, number one, properties that we can fix and materially improve to raise rents. However, we will also look to purchase core-plus properties in more urban areas.

GlobeSt.com: What does 2017 look like for direct investments in the office and industrial sectors for Buchanan?

Ballard: It probably looks like more of the same—it is a difficult environment to find truly value-add opportunities with the amount of capital chasing real estate today. Seller expectations for many assets got ahead of themselves in 2016, and we are in the process of price discovery right now. The good news is that it is a great time to sell.

GlobeSt.com: What else should our readers know about this move?

Ballard: Our strategy remains unchanged in that we have always focused on building teams of highly skilled professionals that create value through execution and relationships. Our renewed interest in multifamily is a function of having found the right person in Kevin Hampton to lead our multifamily business.

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NEWPORT BEACH, CA—Despite the competitive nature of the sector, Buchanan Street Partners is launching a multifamily investment platform focused on finding unique opportunities where it can use its capital and expertise to create value for its investors, president and co-founder Tim Ballard tells GlobeSt.com. The firm has hired Kevin Hampton, former president of PLC Apartments, as EVP to lead the platform.

As part of the new platform, Buchanan Street plans to directly acquire and manage multifamily properties that are core-plus and value-add investment opportunities and plans to deploy $500 million over the next five years in the Western US, with deals already in-the-works. The company is staffing up its multifamily team and, at press time, was in search of an acquisition analyst and VP of asset management.

We spoke with Ballard about the new platform and about direct investments in office and industrial for the frim this year.

GlobeSt.com: The multifamily sector is so competitive. What makes multifamily investment such a strong bet right now?

Ballard: I would agree that the multifamily market is currently fully priced. However, our investment strategy has always been on focused on finding unique opportunities where we can use our capital and expertise to create value for our investors. We still believe that those opportunities still exist, if you look hard enough.

GlobeSt.com: Since your firm has a history in multifamily investment, particularly as an equity partner, how will your approach to the investment change now that you're moving into being a direct owner/operator?

Ballard: Our approach will be more focused geographically. Previously we owned assets from Florida to California. For the time being our multifamily strategy will be concentrated in Colorado, Arizona, Utah and Texas. We're looking for, number one, properties that we can fix and materially improve to raise rents. However, we will also look to purchase core-plus properties in more urban areas.

GlobeSt.com: What does 2017 look like for direct investments in the office and industrial sectors for Buchanan?

Ballard: It probably looks like more of the same—it is a difficult environment to find truly value-add opportunities with the amount of capital chasing real estate today. Seller expectations for many assets got ahead of themselves in 2016, and we are in the process of price discovery right now. The good news is that it is a great time to sell.

GlobeSt.com: What else should our readers know about this move?

Ballard: Our strategy remains unchanged in that we have always focused on building teams of highly skilled professionals that create value through execution and relationships. Our renewed interest in multifamily is a function of having found the right person in Kevin Hampton to lead our multifamily business.