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Summit Realty Ventures on the US Commercial Real Estate Market - John Ross, Summit Realty Ventures


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John Ross, CEO of Summit Realty Ventures ("Summit"), on the investment opportunities in the US commercial real estate market.

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Summit Realty Ventures on the US Commercial Real Estate Market - John Ross, Summit Realty Ventures

  1. 1. IFG WEALTH MANAGEMENT FORUMTHE PREMIER EVENT FOR NORTH AMERICAN FAMILY OFFICESApril 23-24, 2012, The Ritz-Carlton, Phoenix, Arizonawww.ifgwealthmanagement.comSummit Realty Ventures on the USCommercial Real Estate MarketFOR IMMEDIATE RELEASE“We continue to see historic opportunities to holdings and take advantage of the historic marketacquire commercial real estate assets at attractive opportunities. Additionally, commercial real estatediscounts to historical valuations and replacement has traditionally been a hedge against inflation. Interview with:cost metrics,” says John Ross, CEO of Summit. “Re- People with cash are now in a good position to take John Ross CEOevaluations started a few years ago and will advantage of market discrepancies. Summit Realty Venturescontinue for the next few years as debt maturities (“Summit”)occur and REO assets come to market,” John What should family office investment officersRoss added. take into account before investing? John Ross, CEO of Summit Realty VenturesAhead of the IFG Wealth Management Forum 2012 John Ross – The two primary things to consider are (“Summit”), on thein Phoenix, Arizona, April 23-24, John Ross talks the strategy and the track record of the investment investment opportunities inabout the current opportunities in the US sponsor. In terms of the investment strategy, some the US commercial realcommercial real estate market and how investors of the important considerations include analyzing estate market. Summit willcan add value to their assets. the strategy relative to the specific market, the be present at the upcoming product type, the deal size and how the asset will be IFG Wealth ManagementWhat is the current state of the US commercial capitalized. It is also important to understand the Forum 2012.real estate market? sponsor’s past experience and ability to create value. Buying an asset at the right price is just the first stepJohn Ross – The value of commercial real estate in creating value.peaked in the 2005 to 2007 time period because ofthe abundance of capital and the strong economy. How can investors increase the value of theseBetween 2008 and 2009, values were very assets post acquisition?depressed. Since then, property values have become“bifurcated” with high quality, stabilized assets John Ross – Unless an investor is in the commercialincreasing in value to levels equal to the 2005 to real estate business on a day to day basis, we think2007 time period, while “stressed” assets have it is very difficult for an individual investor to createcontinued to stay depressed. In this mix of stressed value. We believe it is critical for an investor to alignassets are some quality properties, those that with the right sponsor. Summit creates value bypossess the right location, physical fundamentals and buying high quality, stressed properties at the rightappropriate tenant mix that are “stressed” as a result price, proactively managing them in order toof too much debt and/or decreasing income stream. stabilize and enhance the income stream and ultimately monetizing the asset through theirHow does commercial real estate add value to the strategic disposition. As opposed to an individualfamily office portfolio? investor, our company is vertically integrated and possesses in house finance, leasing, constructionJohn Ross – We think it makes sense for family and management professionals. These skills alongoffices and high net worth individuals to allocate a with a proactive and hands on approach enablepercentage of their investment portfolio into Summit and our investors to successfully takecommercial real estate in order to diversify their advantage of the market opportunities. www.internationalforumgroup.com
  2. 2. IFG WEALTH MANAGEMENT FORUMTHE PREMIER EVENT FOR NORTH AMERICAN FAMILY OFFICESApril 23-24, 2012, The Ritz-Carlton, Phoenix, Arizonawww.ifgwealthmanagement.comWhat are your projections for the commercial real estate Our outlook is optimistic relative to our strategy. The opportunitymarketplace? to acquire properties at a discount will continue for the next few years. In fact, there is almost One Trillion Dollars of CMBS debt thatJohn Ross – We believe that it will take a number of years for the matures over the next four years and a significant percentage ofnational market to stabilize and during that period certain markets, these maturing loan balances are greater than the property values.those with growth demographics and growth industries, will thrive Summit is ready to take advantage of this unique opportunity.while others will languish. Additionally, there are a number ofproperties that will need to be repositioned or even demolished asthey are either functionally obsolete or should never have beenconstructed in the first place.Salpi Balian, Press Manager – IFG, pressifg@ifgemea.comFor more information: pressifg@ifgemea.comAbout the IFG Wealth Management Forum 2012IFG’s Wealth Management Forum 2012 will take place at the Ritz-Carlton, in Phoenix, Arizona, April 23-24, and provides a uniqueplatform for investment decision makers from single and multi-family offices to engage in vibrant benchmarking sessions and gainpractical solutions and best practices to achieve optimal portfolio returns.For more information please send an email to pressifg@ifgemea.com or visit the event website at www.ifgwealthmanagement.comAbout International Forum GroupInternational Forum Group is a world-leading business information company, organizing exclusive, invitation-only gatherings ofbusiness leaders across multiple industry sectors.Providing a platform for senior executives to build mutually beneficial business partnerships, International Forum Group hasdesigned an unparalleled system for matching the core buying needs of the world’s largest organizations with the best solutionsavailable in the global marketplace. Empowering all our clients with the knowledge they need to lead in their respective fields is afundamental goal of all our forums.For more information, please visit: www.internationalforumgroup.comAbout Summit Realty VenturesSummit Realty Ventures (“SRV”) is a privately held commercial real estate (“CRE”) equity and asset management company. SRVinvests in CRE assets through the ArrowRock Income and Growth Fund, I (“Fund I”). The Fund I investment strategy is focused onopportunistic, institutional grade retail and industrial properties located in Sunbelt markets. SRV is uniquely positioned for successas a result of its experienced leadership and vertical integration.For more information, please visit: www.summitrealty.comAll rights reserved. The above content may be republished or reproduced. Please notify prior to usage at pressifg@ifgemea.com www.internationalforumgroup.com