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AUSTIN—What do you expect when you put 400 smart business people in a room together listening to a bunch of smart panelists and guest speakers forecasting the future? "Conflicting opinions is what we heard at the CCIM annual conference in Austin," Phil Crane, CCIM and a principal with San Antonio-based Providence Commercial Real Estate Services/CORFAC International tells GlobeSt.com.
Crane stated that speaker Ted C. Jones, SVP and chief economist with Stewart Title Guaranty Co., based in Houston, gave a very upbeat presentation on the glowing US economy—particularly in Texas.
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By contrast, Sandy G. Shindleman, CCIM, president of Shindico Realty Inc./CORFAC International based in Winnipeg, Manitoba, said that keynote address speaker—the iconic Sam Zell, founder and chairman of Equity Group Investments, was more cautious.
"Zell relayed some information behind his recent sale of about 23,000 garden-style, suburban apartments to Starwood Capital Group for $5.37 billion, and that from first inquiry to a non-refundable deposit of $200 million took only three weeks to do. That was amazing unto itself, but I think Zell was expressing what media reports published when the sale was announced in the last week of October," said Shindleman.
The report, published in New York's The Real Deal and paraphrased here, stated: "People should be reading that Sam is calling the top of the market for a second time in a row," according to one UBS analyst. Equity Residential was the seller in the deal with Starwood Capital.
"My takeaway is that Zell has a more cautionary view of the current real estate investment market," Shindleman added.
Both Crane and Shindleman relayed Zell's account on how he plans to plow the proceeds of the sale into more urban, multifamily and highrise projects in "24/7" core North American cities.
Equity Residential built its portfolio of good quality, suburban apartment communities with easy access to freeway commutes to major and gateway US cities. However, Zell is shifting to urban environments and targeting cities—even secondary markets such as Pittsburgh, PA and Columbus, OH, according to statements he made during his stage time that was moderated by ALM Real Estate Media Group's Vice President & Group Publisher, Michael G. Desiato.
"I don't think I heard Dr. Jones exactly state that the current upcycle economy would carry through 2018 though that was the essence of his speech," said Crane.
Whereas when asked what inning of the ballgame we are in, "Zell said the 8th," according to Shindleman.
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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.
