By Eli Green, vice president, Carter Real Estate Funds
ATLANTA (July 27, 2009) – With the level of distressed assets and REOs increasing and the number of commercial foreclosures steadily climbing, it’s a very interesting time for Carter’s Investment team.
Fortunately, The Carter Real Estate Fund II (CREFII) has capital to place, so we are scouring the Southeast for suitable properties and loan portfolios. We’d like to make some deals, but the gap between the sellers’ pricing expectations and what we’re willing to pay remains wide. We expect that gap to narrow soon, but it’s hard to tell exactly when.
With so much distressed property out there now,we’re calling on investment sales brokers and banks to find out whichinvestments are worth pursuing. The typical loan portfolios we’re investigatingare smaller than expected and usually include several types of assets mixedtogether.
We’ve already seen plenty of finished residential properties and an enormous volume of lots hit the market. However, we expect to see the number of available commercial assets on the market to increase consistently in the coming quarters. It’s is a very good time to be in the market with money to place.
To date, CREF II has invested in seven opportunities with a combined value of approximately $200 million. We hope to invest in at least another $200 million worth of real estate and anticipate completing new transactions this year. We’ll keep everyone posted on our progress.