SAN FRANCISCO—Mixed-use multi-family and retail investor Veritas Investments is one of the most active in the San Francisco Bay Area market, and recently concluded one of the largest refinancings in that city's history. GlobeSt.com recently caught up with Veritas CEO Yat-Pang Au to talk about current trends and opportunities amid a fast maturing investment cycle.
GlobeSt.com: Observers of the current real estate cycle say the nation's top-ten investment markets are getting overheated. With San Francisco apartments topping most everyone's list in recent years, what's the situation there?
Yat-Pang Au: As a global city and West Coast gateway to Asia, San Francisco is always a top 10 investment target, and the rebound from the recession has expanded the pool of investors. Prices have gone up significantly of course, but that just makes things more interesting for an experienced local firm like us in finding the right opportunities. The first round of investors post-recession grabbed incredible discounts; now, as the months pass by, you've seen investors with different objectives buying along the yield curve, such as large pensions and sovereign wealth funds with lower, longer-term return targets. On the other hand, opportunistic buyers with double-digit yield objectives have pretty much left San Francisco and are moving to secondary and tertiary markets.
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