GlobeSt.com: How has the credit crunch affected the secondary markets?
Landress: The crunch has created dislocation generally in the markets, and that is causing investors to actively review private equity commitments to their real estate portfolios.
GlobeSt.com: How is that translating into activity in the secondary market? Are we seeing more sellers looking to unload assets to make a quick buck, or more buyers seeking out bargain-priced assets?
Landress: What we are seeing are investors taking a more active approach to managing their real estate portfolios.
GlobeSt.com: Does that mean more trades?
Landress: It means more possible trades.
GlobeSt.com: Are you seeing more demand for these types of assets since the credit markets stopped lending?
Landress: No, demand for these assets have been pretty steady.
GlobeSt.com: What about your own investment activities? What are you looking to acquire?
Landress: We are continuing to acquire limited partnership interests on a secondary basis. We are most interested in acquiring diversified portfolios of good quality funds and interests in the $50-million-and-up range.
GlobeSt.com: For the market in general, how do you see events playing out this year?
Landress: I can't tell what is going to happen, it is hard to know when things will straighten out this year. It's a dicey market right now, and one still in flux. Investors are constantly changing their attitudes about investments.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
