(To read more on the debt and equity markets, click here.)
CHICAGO-During a recent gathering hosted by the Real Estate Investment Association, several industry members weighed in the trends that are spurring funds into the local real estate market.
Michael Mounts, a principal at Bank of America, admitted that real estate as an investment has had an extraordinary run compared to a decade ago. "It's now a respectable asset class," he told the audience. In the past, he explained, "real estate was an alternative investment--an individual investment. Few pension funds, for example, would invest in real estate."
Today, turning real estate assets into liquid investments have made the market much more appealing. "We take large real estate loans, pool them, sell them as bonds," Mounts said. "The key going forward now is picking assets." Investors and lenders will need to be more selective moving forward, he continued, weighing in interest rates and regulatory action that can make or break a deal.
Recommended For You
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
