February 17, 2018
Ari Abramson of CRC Moderates at NAREIM Conference
CRC’s Ari Abramson (Vice President, Acquisitions) recently moderated a panel at the National Association of Real Estate Investment Managers (NAREIM) annual Acquisitions and Disposition conference in New York City. The theme of the roundtable discussion was “how to approach acquisitions in the current environment.”
NARIEM is an exclusive organization of 100 real estate investment management firms with members ranging from the largest institutional firms in the world with fully integrated service platforms to specialized entrepreneurial firms. NAREIM provides the organizational platform, programs, information and tools to help real estate investment managers to establish important relationships with fellow industry leaders, benchmark their companies relative to their peers, and maximize their understanding of what is happening in their industry.
Abramson’s began his discussion by posing the question of “What is the right emotion for successful acquisitions and dispositions – hope or fear?” And, “How do these emotions of hope and fear influence someone’s ability to acquire or sell real estate?” The question was designed to examine whether the current state of the market has shifted its investment profile, as well as an examination of the new risk tolerance to achieve the same expected returns. Abramson further challenged the group whether “Are we paying close enough attention to changes in the environment, changes in our investors, changes in the users of real estate or are we making assumptions based on what happened in the last cycle?” He discussed Continental Realty’s investment thesis and risk mitigations for the acquisition of Millworks, a 345-unit, a five-building apartment community located in the Buckhead section of downtown Atlanta. The complex is a best-in-class asset offering a level of luxury living space and high-end amenities that would be difficult to replicate in the immediate area. Abramson explained how relatively new multifamily assets yield steady cash flows as these assets require less immediate and ongoing capital improvements and attract a high-income resident with more disposable income. In addition, Abramson articulated how, as stabilization occurs and leases begin to turnover, there is an embedded premium that exists between the lease-up rent roll and stabilized rent roll that can be achieved in organic rent growth.
The roundtable concluded with a group discussion about emerging risks and opportunities in multifamily, retail, office, industrial and hospitality asset classes; and the expected best opportunities and greatest risks expected in 2018.
Continental Realty Corporation (CRC), headquartered in Baltimore and founded in 1960, is a full-service commercial real estate investment and management company. The privately-owned firm owns and manages a diversified portfolio of retail centers consisting of over 3.5 million square feet of space, as well as apartment communities featuring nearly 10,000 apartment homes. Positioned throughout the Mid-Atlantic and Southeast regions, the value of the portfolio exceeds $1.5 billion.