SRS Real Estate Partners recently hired senior capital-markets and investment-sales professionals Rich Walter and Pat Kent to its team, based in the Newport Beach, California, office. Walter, a seasoned investor, real estate investment broker, and financier, joins the firm with more than 44 years of experience in the real estate and banking industries, while Kent joins with more than 19 years of experience as an investment-properties specialist and more than three decades of experience in real estate finance.
SoCal Real Estate caught up with Walter and Kent to talk about their new roles with the firm and some of the biggest challenges the CRE capital markets are currently facing.
SoCal Real Estate: What are you most looking forward to accomplishing in your new roles with the firm?
Walter and Kent: We hope to build on the unique collaborative model at SRS and synchronize with the investment sales, NNN sales, and the finance group to offer our clients a full capital-markets solution. We plan to leverage the synergies with our tenant-rep and project-leasing teams as well to offer our clients a full-service approach.
What are the biggest challenges the CRE capital markets are facing currently?
Of course, interest rates increasing are worrisome, depending on how rapidly they continue to rise, which can affect valuations. The uncertainty of the 10-Year Treasury and global issues continue to present both challenges and opportunities in CRE.
How is the role of international investors in U.S. CRE changing?
International investors are constantly changing based on their country’s regulations and investment opportunities abroad. There is a funneling of investment coming through Hong Kong and Canada as portals to investment in the U.S. Technology has benefitted these investors as they allocate funds abroad and here in the U.S. We continue to see international investors view the U.S. CRE market as a safe haven for capital and a way for these countries to deploy assets locally into hard assets.
What else should our readers know about capital markets?
Capital markets should be viewed as an overall strategy encompassing equity, debt, and eventual sale. As retail is the most complex of all the product types, our approach is to formulate an entire business plan beginning with the asset itself, ground up. Due to our exposure and list of 400-plus retailers represented by the firm and the intelligence gathered from our project leasing teams, we analyze the trade area and the project from all angles. We have the proper teams in place that can actually execute on the business plan and be part of the team from the project’s inception.