At Mission Capital, we value philanthropy, and giving seems more important than ever. This holiday season, two charity organizations, First Bank Employee Fund (Puerto Rico) and Clean Hands for Haiti, will directly benefit from our ongoing philanthropic endeavors.
Mission’s holiday party this December will incorporate a giving component. In light of the natural disasters that have devastated Puerto Rico, which is home to many friends, colleagues and fellow Americans, Mission is requesting an entry donation that will benefit the First Bank Employee Fund. One hundred percent of the proceeds will directly support the most pressing needs of employees in Puerto Rico and the U.S. Virgin Islands, many of whom have lost their homes and belongings and are still in the process of rebuilding. Mission Capital will also match each donation up to $20,000.
Another charity that Mission is passionate about is Clean Hands for Haiti. This holiday season, in lieu of paper cards, Mission will make an additional donation that will support children living in poverty throughout Haiti by providing educational scholarships and access to basic social services for them and their families.
While the holiday season is commonly a time of giving, Mission’s employees donate their time and money throughout the year. Collectively, Mission employees across the country are actively involved in over two dozen local charities.
Is The End Nigh? 7 Real Estate Experts Discuss The Unusual Length Of This Cycle
November 13, 2017 Champaign Williams, National Editor
Commercial real estate experts cannot reach a consensus.
Has the market peaked? Are certain sectors overbuilt? Will this incredibly long business cycle persist or is a correction around the corner?Bisnow asked those questions to seven commercial real estate experts and received varying answers.
Cushman & Wakeﬁeld Principal Economist Ken McCarthy
“The cycle has already been a long one, no question. But we do not see any signs that the economy is nearing a turning point. In fact, I wouldn’t be surprised if this ends up being the longest expansion in history before it is over. Real estate investors will be looking at the leasing fundamentals of the property types they are considering and those vary widely depending on property type and location. One growing concern for office investors is the growing pipeline of new construction. Several markets have a large pipeline that needs to be absorbed, which is placing downward pressure on rents in certain markets or submarkets. In the industrial sector on the other hand, fundamentals remain firm and are likely to remain so. These concerns may explain part of the slowdown in sales this year as investors have become more cautious, but pricing is holding firm for the most part and as long as the economy continues to grow the market should remain firm.”
Silverback Development Director of Investments Joseph Piraino
“Some say we’re in the ninth inning of the cycle, however I think we’re in what is the bottom of the first in a whole new ballgame. In some submarkets in New York, pricing is and always will be somewhat inflated. Yes, deal volume has dropped in recent quarters as rising interest rates have increased financing costs and caused a discrepancy of pricing expectations among buyers and sellers. Interestingly, the shift in rates caused some deals that were agreed upon to be primed for renegotiation.
I expect we’ll continue to see borrowing costs rise. The strong economy may also give investors the ability to achieve even higher-than-expected returns. I don’t expect to see significant moves in terms of either valuations or cap rates.”
Yardi Matrix Director of Publications and Research Jack Kern
“We are not in a cycle and there are no innings. I find it amazing how many people use that analogy and don’t understand the relationship between fund flows, interest rates and the growth in the economy.
Commercial real estate is healthy and the limited amount of additional inventory is in a few areas and very highly targeted. I do not expect to repeat earlier periods when easy money wasn’t thoughtfully invested. This phase of additional investment and new building has been, by historical standards, very measured.
The real estate economy moves in long-term gentle waves, with varying intensity. Over time it has gotten considerably more balanced and better managed than we’ve seen in previous parts of the general economy. Looking ahead, I am feeling positive about the future.”
Ten-X Executive Vice President and Chief Economist Peter Muoio
“The business cycle has been very long by historical standards, and this is starting to permeate throughout the commercial real estate market. A divergence between those who look at still-healthy economic data and expect the cycle to perpetuate and those who are questioning how much longer it could possibly go on has emerged.
This has resulted in a cooling of pricing, as evidenced by the Ten-X Nowcast declining for six consecutive months and measuring at its slowest annual growth of the cycle. Sellers continue to hold out for higher prices, continued expansion and net operating income growth, while buyers remain more cautious in their approach, seeking higher returns commensurate with their perceived risk.
While supply is picking up, the pipeline is unevenly distributed, assuaging concerns of widespread overbuilding. There are a few markets and property segments facing much heavier supply pipelines, such as New York City apartments, the Bay Area and Seattle office — but it is not a widespread phenomenon.”
“Unfortunately, CRE investment, as measured by transaction activity, is down materially all over the U.S., and particularly in major markets. There are cyclical reasons for this: higher interest rates, increasing cap rates, the stage we are at in the perceived cycle, currency cost increases, construction cost increases, etc. There are also secular changes impacting investment: a decline in the average square footage an office user requires, changes in how and where we use office space, changes in how we shop and its impact on retail demand, migration back into cities with counter-migration away due to high costs.
Many have noted that this is one of the longest cycles as measured by time, but the cycle is not nearly as long when measured by aggregate GDP growth. Overbuilding of multifamily has been a concern, but we have to remember that, as a country, we went through an unprecedented pause in homebuilding during the downturn. Our population growth in the U.S. in general and in New York in particular demands housing unit construction, in both the multifamily and single-family sectors.
We are cautious as to the cycle, and would never fall into the ‘this time it’s different’ trap, but also believe there are a variety of interesting investment themes worth considering: mini-storage, industrial and logistics, workforce housing, modern office construction, millennial-oriented housing. hospitality options …”
JCR Capital Managing Principal Jay Rollins
“I think we’re in the later stages of the cycle. I think we’re in the 11th inning [but] I don’t know when the game is going to end. It’s really hard to see a catalyst other than a geopolitical event that is going to shake up or take down this marketplace. We’re definitely long in the tooth. I wouldn’t say there is room to grow, but there is a fair case to be made that we’ll continue like this for a while. I don’t see us growing, but I can’t see us falling off a cliff either.”
Harvard Graduate School of Design lecturer Raymond Torto
“The length of the cycle is not a determinant of a turn in cycle. New supply is tempering rent escalation and rising vacancy for office and multifamily, but there is adequate demand for all property types. This recovery is a job-full one, which is good for real estate. The omens for commercial real estate are technologically related, not cycle-related in 2018.”
UPDATE, NOV. 1, 2:08 P.M. ET: Following a two-day meeting, the Federal Reserve has left short-term interest rates unchanged. Officials signaled a move in December is likely. The U.S. Federal Reserve is expected to hold short-term interest rates steady Wednesday as markets await President Donald Trump’s pick for the next Fed chair, which he will announce Thursday. Many are predicting central bank governor Jerome Powell will receive the nomination. Investors overwhelmingly expect a December move, which would mark the third interest rate hike this year. Bisnow spoke with commercial real estate economists and researchers to discuss how future moves will impact property markets and how investors are factoring higher rates into their deals.
Director Beau Williams and Vice President Raymond Salameh Join National Capital Markets Advisory
Mission Capital Advisors today announced the hiring of Beau Williams as director and Raymond Salameh as vice president in the firm’s Debt and Equity Finance Group. Both professionals will be based in Mission’s New York City headquarters, and will be responsible for the origination, structuring and placement of commercial real estate capital on behalf of owners, investors, developers, family offices and private equity firms nationwide as well as assisting on select asset sales opportunities. Williams and Salameh will structure financing and asset sales for the firm’s clients across the hospitality, retail, office, multifamily and industrial sectors.
“Beau’s hospitality finance experience throughout his career was extremely attractive to us as we look to build on our strengths and continue expanding our team,” said Jordan Ray, principal of Mission Capital’s Debt & Equity Finance Group. “We look forward to leveraging Beau’s experience to remain a frontrunner in this space.”
Prior to this position, Williams was with Meridian Capital Group, where he focused on hotel debt and equity. In his time at Meridian, Williams executed over $200 million in hotel financings. Earlier in his career, Williams served as a director with both Wyndham Hotel Group and Northcott Hospitality. He graduated from New York University with a Bachelor of Arts in Communications.
“Mission Capital’s culture is extremely unique, and I knew from the very start that my input would be valued,” said Williams. “I consider Mission somewhat of an anti-brokerage, an organization where each individual is recognized as a valued member of a unified team. I’m eager to work alongside the best and brightest in the industry to secure capital for some of the most innovative hospitality projects out there.”
Salameh was formerly a senior associate at HKS Capital Partners, where he focused on originating and structuring real estate capital for corporate clients, real estate developers and investors. Over the course of his career, he closed approximately $160 million of capital across several asset classes. Salameh graduated from Binghamton University’s School of Management with a Bachelor of Science in Finance and Management.
“Mission Capital has a reputation as a collaborative, technology-driven debt and equity brokerage, and I was eager to join this growing platform and help contribute to their expansion,” added Salameh.
Under the leadership of Ray and Mission Capital Founder and Principal David Tobin, Mission Capital’s Debt and Equity Finance Group has expanded within the past few years from a two-person team into a national mortgage and equity powerhouse with 25 professionals, approximately $2 billion in annual volume, and activity in every major market.
“Both Beau and Raymond are exactly the type of professionals that we look for – extremely driven and the best at what they do,” said Tobin. “The market expertise they bring to the table will be a major asset for Mission as we continue our national expansion.”