JV Equity Raising Outlook: Yardi’s Paul Fiorilla Expects Capital to Keep Coming into the Market

JERSEY CITY, NJ – A centerpiece of CAPRE’s Northern New Jersey & Gold Coast Investment Outlook was a roundtable discussion all about how to make the most of a hot market that some say might be slowing down sometime soon. “JV Equity Raising Outlook: At this Stage of the Cycle, What are the Unique Opportunities and Return Requirements?” kicked off with some brief but thoughtful comments by Paul Fiorilla of Yardi Matrix. “Paul, I’m going to call on you first to just see what you’re seeing recently with capital markets and sales, across the United States,” suggested moderator Mark DeLillo, Managing Partner at BlueGate Partners. “Commercial real estate, during this cycle, as we all know, has benefited from the wall of capital,” replied Fiorilla. “It’s been fantastic for the industry, and prices are higher than they’ve ever been. Cap rates are at historic lows.” According to Fiorilla, the transaction volume, both nationally and in New Jersey, peaked in 2015, and have declined just very slightly over the last few years. “The market is very strong, and the amount of capital in the industry keep increasing,” he stressed. “Preqin, a London company that tracks the private equity industry, says there is about $350 billion of dry powder that’s sitting on the sidelines right now. And that’s just for one part of the industry. So there’s a lot of capital in the industry – there has been and I think it’s going to…