IRVINE, CA—Pension-fund advisors have a mandate to put their investors' money out or have it taken away, but they also need to maintain their fiduciary responsibility and do proper underwriting, Moran and Co.'s new director, senior investment sales team, Derrek Ostrzyzek tells GlobeSt.com. Ostrzyzek, previously an acquisitions officer for Invesco Real Estate, was recently hired to help grow Moran and Co.'s existing platform. We spoke exclusively with Ostrzyzek about his goals, the trends he is noticing in apartment investment and changes in the apartment investor profile.
GlobeSt.com: What are your goals in your new role with Moran and Co.?
Ostrzyzek: I was brought on to expand the existing platform here. Moran and Co. has three senior brokers who have been with the firm since its inception some 15 years ago. I'm the fourth senior broker to join and the first one in about 15 years. I think my ultimate goal is, in addition to just expanding the platform, to create more business, more opportunities for us and potentially expand into other markets that we're not currently in.
GlobeSt.com: What are some of the trends you're noticing with apartment investment?
Ostrzyzek: When I was with Invesco, what I had noticed over the last 12 to 18 months was that there were not a lot of opportunities left in the market. Now that I've been over here, I'm starting to see more value-add opportunities, but still not many core opportunities because there's so much capital in the market and not enough real estate to buy. This is compressing cap rates and promoting higher values.
GlobeSt.com: How is the investor profile for this product type changing?
Ostrzyzek: We're starting to see new investors within the multifamily market that we haven't seen before or that historically haven't been as active, and I think that's driving some of the demand because there are more players in the market now then there were before. Everyone has these real estate allocations, and there's this tug of war. Pension-fund advisors have a mandate to put the money out, and if they don't, their clients take the money away from them, so there's this pressure to get the money out but maintain their fiduciary responsibility. We're starting to see that tug of war now.
GlobeSt.com: What else should our readers know about apartment investment?
Ostrzyzek: It's extremely competitive right now across the realm of multifamily investments, from development to value-add to core opportunities—not only in the primary markets, but in the secondary markets as well.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
