Stonebridge real estate development investments
Download
1 / 8

StoneBridge Real Estate Development & Investments - PowerPoint PPT Presentation


  • 607 Views
  • Updated On :

StoneBridge Real Estate Development & Investments. O’Connor & Associates Industrial Forecast Event September 23, 2009. Houston’s Industrial Market Vacancy. What’s going on?. New industrial development has stopped Only build-to-suits are being built and those are rare

Related searches for StoneBridge Real Estate Development & Investments

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'StoneBridge Real Estate Development & Investments' - salena


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Stonebridge real estate development investments l.jpg

StoneBridge Real Estate Development & Investments

O’Connor & Associates Industrial Forecast Event

September 23, 2009



What s going on l.jpg
What’s going on?

  • New industrial development has stopped

  • Only build-to-suits are being built and those are rare

  • Second generation space is active due to cheaper rents

  • New building rents are too high for many tenants

  • Tenants are looking for deals

  • Tenant’s credit ratings are declining


What does this mean l.jpg
What does this mean?

  • The development cycle is over

  • Lenders will continue to work with good customers to extend the terms of their loans

  • Banks want to make sure the mortgage is paid every month

  • Banks do not want to take back properties, what will they do with them?


What will happen l.jpg
What will happen?

  • Downward pressure on rental rates will continue

  • Loans are/will be underwater

  • Non-recourse borrowers will start to give properties back to lenders

  • Banks will foreclose on other borrowers


Market opportunities l.jpg
Market Opportunities

  • Lower rents, higher vacancies, lack of credit from lenders = Distressed Properties

  • Landlords will reduce ask prices to sell their properties, especially if there is a personal guarantee

  • Too many properties are over-leveraged, just ask the California buyer from a few years ago who was paying 6%-7% cap rates

  • Too much debt is coming due and bankers will not extend all of the loans. Especially, if the asset’s loan balance is underwater

  • Note sales and foreclosures are increasing


Cash is king l.jpg
Cash is King

  • Real Estate Funds are springing up in anticipation of the Distressed Property Sales

  • The FDIC will need to establish another “RTC” to flush all of the problem real estate loans out of the system

  • Cash buyers will be able to seize the opportunities


What is stonebridge to do l.jpg
What is StoneBridge to Do?

  • Acquisitions of distressed real estate

  • Purchase assets from $3.0-$10.0 million range of multi-tenant industrial, office and retail

  • Goal is to purchase $50.0 million per year

  • Buy in cash to reduce risk exposure

  • Buy in the greater Houston area


ad