 Anderson |
While such deals are still a good bet, not for the near term, and Richard Anderson, a REIT analyst at BMO Capital Markets, tells GlobeSt.com not to expect to see a handshake of this size for a while. "There is too much uncertainty in the market right now for this type of large scale activity," he says. "When things settle down, potential multifamily borrowers will start thinking about making deals this size, but I project they will be in pause mode well into 2008."
The $22-billion transaction he is referring to was "all about timing," he noted. It is the largest public-to-private M&A transaction in the multifamily REIT sector as of yet and "buyers had to really go to the earth to get it done."
Anthony Paolone, an analyst with JP Morgan Securities, agrees with Anderson and explains that it doesn't seem likely that a deal this size would happen again in the near future, however things could change. "All indications are that the debt availability is a lot harder to get," he says, which is causing a shift in valuation. "In multifamily as well as other property types, the pace of deals has slowed."
 Marks |
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
