Investment Strategies For A Mature Market

October 13, 2017

Investment Strategies For A Mature Market

October 12, 2017 | Natalie Dolce | GlobeSt.com

The first rule of investing is to buy low and sell high—but that’s easier said than done.  That is according to Jack Mullen, founder and managing director of Summer Street Advisors. Mullen says that today, CRE prices are high and cap rates are low because investors are more motivated to buy than to sell.  “With an overabundance of capital in the market, strategies that have served investors well for the past five years are no longer as viable as they have been. Fortunately, there are still prudent real estate plays for investors with market expertise, focus — and patience,” he says.

The views expressed in the commentary below are Mullen’s own.

The real estate market is healthy and the economy is strong, but there’s no question that we are late in the investment cycle.  Property sale prices per square foot are at an all-time high—27% higher than a decade ago, when prices were at their pre-recession peak. Capitalization rates are in the 6% range for properties overall, but as low as 4% for class A properties in some cities.

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Matthew C. Strife
Blue Vault Services
April 11, 2016

Blue Vault's services are without question great resources for the review of the nontraded products offered.