[Bonus Ep] Hands in the Air: Q&A about Capital & Debt with Lone Star Funds’ Bob Ricci
Jun 27, 2024
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Senior Managing Director of Lone Star Funds, Bob Ricci, discusses challenges in real estate investing, including skyscrapers sold for low prices in depopulated areas. They also explore the appeal of investing in Sun Belt states, capital requirements for office assets, and the importance of tier one capital for banks when assessing commercial real estate risk.
Real estate investing in St. Louis faces challenges of depopulation, while Sun Belt states offer growth opportunities.
Adapting to demographic shifts and urban dynamics is crucial in real estate while Sun Belt states attract investments.
Deep dives
Real Estate Challenges in St. Louis
St. Louis faces unique challenges in its real estate sector due to long-term depopulation and business migration trends. While some skyscrapers sell for minimal prices, areas such as Clayton, Missouri, emerge as thriving hubs. The city's evolution reflects a shift towards western suburbs for development, highlighting the importance of adapting to demographic changes and urban dynamics.
Investment Opportunities in the Sun Belt States
The Sun Belt states attract investments due to factors like educated workforce, affordability, and favorable business environments. Markets in these states offer growth potential driven by sectors such as life sciences and sustained job creation. Additionally, the lower regulatory barriers and tax structures make them appealing for capital deployment and business expansion, fostering economic development and job growth.
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Insights on Real Estate Investing in Capital Markets and Challenges Faced by St. Louis
In this bonus episode, a group of CBRE summer interns had some terrific questions to ask our guests.
We take a 360-degree look at real estate investing and the capital markets from the perspectives of a pair of influential executives, each with decades of experience in the debt capital markets business. Tom Rugg, Vice Chairman and Co-Head of U.S. Large Loans and Debt and structured finance at CBRE, and Bob Ricci, Senior Managing Director of Lone Star Funds, a player with nearly $90 billion of assets across nearly two dozen funds in its portfolio.
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