What are Large OC Sellers Considering Now?

Britton: “We are seeing investors becoming more disciplined in their purchases, and some are choosing not to enter the ‘bidding frenzy’ on assets in secondary markets.”

ORANGE COUNTY, CA—While it may seem like many Orange County-based investors who have sold large assets and portfolios in recent months are stepping back, Voit Real Estate Services‘ managing director Ian Britton tells GlobeSt.com that it’s part of a bigger strategy. We spoke exclusively with Britton to get his take on the thought processes of these larger firms and how they will proceed in the next 18 to 24 months.

GlobeSt.com: What’s next for OC-based investors who have sold large assets and portfolios in recent months?

Britton: I think the simple answer is “business as usual.” While it may seem like many of these established investors are taking some chips off the table, the reality is most of them are simply executing on their business plans. Local investors like LBA and CT, who have recently sold portfolios or are preparing to do so, maintain closed-end funds that have a defined life. These groups and many others have elected to take advantage of attractive and escalating sale prices in a market where pension funds (and foreign investors) are competing with one another to place large amounts of capital. Many pension funds are under-allocated in industrial real estate and are looking for the right opportunity to invest significant capital in a healthy and diverse industrial market like Orange County.