Patience Key for Panelists at Recent ConnectCRE Conference

At the recent ConnectCRE Phoenix Multifamily/BTR Conference at the Westin Kierland Resort & Spa, a major subject of the various panels was financing deals and the ongoing hangover of elevated interest rates. George Maravilla of Tower Capital weighed in with his views on debt and equity: “Since it’s hard to get institutional investors into deals, we are forced to look elsewhere. We need to consider family offices, high-net-worth guys, endowments and retirement funds, even the Middle East and Asia, if we want to help get a deal done.”

Luke Donahue of Colliers spoke about Phoenix’s long-term view. He stressed that while Phoenix is in a better situation than most because of the huge numbers coming in from out of state, he warns that over the short term, there will be headwinds. Lots of supply in the pipeline creating flat rents will make things difficult in the short-term. He said if an investor is patient, there is money to be made, but not without a hold for longer than usual.

Zanda’s Kimberly Byrum added that she is optimistic. Amazing job growth and affordability in Phoenix, and even more in neighboring counties, will continue to drive demand. Due to easier permitting and less expensive land, deals are to be made in towns like Florence and Casa Grande.