Market Topics from Miami US Real Estate Conference for Latin American Investors
Last week Simon O'Shea (Ballast Rock CIO), Ian Garcia (Ballast Rock COO & Treasurer) and I were asked to present at a US Real Estate conference in Miami for Latin American Investors. Below are some of the topics on investors' minds at the conference:
Concerns over Cap Rate Movement
Given the current absolute levels of cap rates, there was a lot of discussion about the possibility of cap rates increasing. Again, there were a variety of views, but we believe that our strategy of workforce multifamily value-add provides an effective hedge against any reasonable future cap rate increases. We only purchase assets where we believe we’ve identified significant net operating income upside from our capacity to add value and can look to push cap rates 100-150bps higher through operational efficiencies and CapEx deployment.
At Ballast Rock we help originate and distribute countercyclical and recession resilient real estate funds. Please feel free to connect to learn more about how we work with experienced real estate professionals to offer investors the opportunity to invest in income producing assets with a positive social impact.