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Financial Industry Gets Creative When Challenged

LOS ANGELES—In the final panel of the day at RealShare Los Angeles, held here last week, one source says that a quality asset in a quality location will always be fine as money always chases the good deal.

By Natalie Dolce | nataliedolce | | Updated on March 30, 2016
RealShare L.A.'s interest rates and capital markets panel. RealShare L.A.’s interest rates and capital markets panel.
LOS ANGELES—As foreign capital is flowing into L.A.—and not just from Asian investors—panelists at last week’s RealShare Los Angeles conference talked about how the investment is driving capital markets, among other topics. Another hot topic during the interest rates and capital markets panel, according to speaker Alan Clifton , SVP of investments and operations at Passco , was how the financing industry gets creative when challenged by the government or the economy. According to Clifton, “a quality asset in a quality location will be fine as money always chases the good deal.” Another hot topic was how a potential rate hike in 2016 could affect the capital markets. “There is no sure prediction on rates,” Clifton said. “What is going on domestically and internationally, with economies and politics are major influences and change daily. We are aware of what the outside influences are and that they are out of our control which affects the treasuries along with the supply, demand and availability of capital.” For Passco, a conservative and mindful approach to CRE deals is key, “while not swaying from the fundamentals.” He added that “We’ve hit some singles, doubles, triple and a few a grand slams.  It’s the number of runs that win games.” Many in commercial real estate have short memories, Clifton added. “Remember there was more activity in 2003-2007 than 2012 – 2015 with a 10 year treasury that was more than double the current yield.” Check out the below stories to read more coverage from our RealShare L.A. event. Doesn’t Have to be Core if Demographics are Strong Cash Is “Especially King” for Industrial Product What Will Happen to SoCal’s 1980s Product? Where are we in the Investment Cycle? Richard Ziman Talks L.A., Receives Legends Award Metrics Look Good, But Wild Cards Remain How Do You Define an Emerging Neighborhood?

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