Part 2 of 2
SAN FRANCISCO-When asked if money today is smarter, Greg Vilkin, managing principal and president of MarcFarlane Partners, said that “Money today is more nervous than it has ever been.” Vilkin was a panelist at a recent Marcus & Millichap Real Estate Investment Services event held in San Francisco, and served on a private equity and multifamily-investment strategy panel moderated by William Hughes, SVP and managing director of Marcus & Millichap Capital Corp.
Hughes interviewed a panel, including Yat-Pang Au, founder and CEO of Veritas Investments; Bruce Dorfman, principal, Thompson Dorfman; Kyle Naye, senior associate, Clarion Partners; Paul Niewiadomski, partner, Stein & Lubin; and Vilkin.
“Everybody got burned from the last cycle of putting more money out than was needed,” said Vilkin. “I think that part of this cycle is that the institutional capital that's putting in the equity money is a lot more careful this time—I don't know if they're smarter—but they still go into herd mentality.”
And they go into markets that have already proven themselves, he added, “and are now heading up and it's impossible to get them into markets when it's at the nadir—and they can actually make a lot of money.”
As GlobeSt.com earlier reported in Part 1 of this event coverage, the day's event also included thoughts from John Sebree, VP and national director-NMHG, who kicked off the day-long event with an overview of the local Bay Area economy and multifamily trends. When it comes to investment sales, he noted that he is often asked if now is the time to buy or sell. “Yes is my answer.”
Sebree said there will be 2.2 million more 20-34 year olds by 2020, and he expects the apartment building boom to continue for the next few years.
The quote of the day came from Steven Levy, director and senior economist of the Center for Continuing Study of the California Economy in Palo Alto. “Yes this is a kickass local economy,” he explained, noting that the Bay Area is on the verge of recovering all of the jobs lost during the recent Great Recession.
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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.
