Finding Success in Distress

NEW YORK CITY-As investors continue their flight-to-quality in core markets, a new study shows that strong alternative opportunities exist outside the gateway cities. According to Ernst & Young’s 2011 “Global Market Outlook: Trends in Real Estate Private Equity,” now is the time for fund managers to capitalize on distressed deals–even amid an uncertain and volatile market.

“There are now signs the sector is reaching bottom, and fund managers should brace themselves for an acceleration of deals and financing activity to hit the market, albeit slowly, over the next several years,” says Mark Grinis, Ernst & Young’s global real estate leader, in a statement.