{"id":14008,"date":"2017-05-24T09:23:58","date_gmt":"2017-05-24T13:23:58","guid":{"rendered":"https:\/\/qa.bluevaultpartners.com\/?post_type=news&p=14008"},"modified":"2017-05-24T09:23:58","modified_gmt":"2017-05-24T13:23:58","slug":"why-so-much-private-equity-is-shifting-to-multifamily","status":"publish","type":"post","link":"https:\/\/qa.bluevaultpartners.com\/why-so-much-private-equity-is-shifting-to-multifamily\/","title":{"rendered":"Why So Much Private Equity Is Shifting To Multifamily"},"content":{"rendered":"
May 22, 2017 | by\u00a0CARRIE ROSSENFELD<\/a>\u00a0| GlobeSt.com<\/p>\n HUNTINGTON BEACH, CA\u2014Private-equity<\/strong><\/a> investors like the strong cash-on-cash that multifamily<\/strong> can provide as compared to hotels, retail<\/strong> and office<\/strong> properties, panelists at the IMN Multifamily Forum<\/strong> here told attendees Thursday. Moderated by CBRE<\/strong><\/a> vice chairman Brian Eisendrath<\/strong>, he session \u201cWorking With Institutional Capital\u201d discussed the mindset of institutional investors<\/strong><\/a> and how to play to your strengths with this sector.<\/p>\n Jerry Fink<\/strong>, managing partner of the Bascom Group LLC<\/strong>, said typically private equity has invested in hotels, retail and office properties, but this sector likes the strong cash-on-cash that multifamily can provide. \u201cThe cap rates are in the 3.5-point range, and the overall returns are lower than with commercial properties.\u201d<\/p>\n Multifamily has always been a part of what UNC Management Co.<\/strong> does, said Rodgers Harshbarger<\/strong>, director of private investments for the firm. \u201cRelative to other property types, the variance in terms of skill sets of operators is much wider in multifamily, and it\u2019s getting more operationally intensive as time goes on. There are always going to be opportunities for above-average operators to take over; there\u2019s lots more underperforming going on.\u201d<\/p>\n<\/p>\n