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How Private and Institutional Capital Roles are Shifting

Carrie Rossenfeld Finance & Capital Markets

The lines between the types of deals sought by private vs. institutional capital are blurring, Shin Kim tells SoCal Real Estate. NKF Capital Markets recently recruited Kim as senior managing director, further building the firm’s capital-markets presence with an emphasis on expanding its business with private-capital clients.

Kim brings strong experience in handling the disposition and recapitalization of industrial properties at both the regional and national level, with a primary focus on the representation of institutional owners as well as high-net-worth private individuals, private pension funds, and foreign capital. Prior to joining NKF Capital Markets, he served as first VP in CBRE’s Orange County office. His experience also includes a management role at Lanier Worldwide Inc., a subsidiary of the Ricoh Corporation, where he was responsible for $50 million in sales throughout his tenure.

We spoke with Kim about his new role as well as the role of private capital in commercial real estate deals today and into the future.

Shin Kim | Courtesy NKF Capital Markets

SoCal Real Estate:What are you most looking forward to accomplishing in your new role with NKF Capital Markets?
Kim:
I’m excited to be a part of the NKF Capital Markets team. It’s a group of dynamic talented individuals that works as a cohesive unit. I get the opportunity to be on the ground floor of this growing private-capital platform with a focus on capturing market share from an industrial real estate standpoint and continue to make NKF the best-in-class brand throughout the marketplace.

How has the role of private capital changed in commercial real estate transactions?
There is a plethora of capital looking for industrial real estate — and not just the typical institutional groups. Private capital such as high-net-worth individuals, family offices, and syndicators is just as active, if not more. We have witnessed a shift with private capital reaching for much larger acquisitions that have historically been more institutional and the same with institutional capital pursuing smaller infill opportunities. This will be a common theme moving forward, and we don’t see it going away.

How do you see this continuing to evolve?
We will continue to grow the NKF private-capital platform organically and through strategic hires. There are a lot of synergies between the institutional group and private-capital group with our overall commitment to better serve our clients as a unified front. This rapid growth allows us to do that.

What else should our readers know about the different capital groups in CRE?
Industrial real estate will be the darling of all “food groups” within the West Coast. With businesses converting to e-commerce and the need to service customers within the “last mile,” we will continue to see strong fundamentals year in and year out with private and institutional capital hungry for more industrial deals.