San Francisco, CA, January 08, 2009 --(PR.com
)-- Capital Pacific, a leading commercial investment brokerage firm, beat the industry average for transaction volume by 43% in the third quarter and year-end projections indicate that the company has been relatively shielded from the turbulence of the commercial investment sales market in 2008.
Real Capital Analytics ranked Capital Pacific as a Commendable Retail Player for the third quarter of 2008. In the same report, Capital Pacific was ranked as a Top Broker based on number of transactions. Capital Pacific has just 13 sales agents, and was ranked against several large national firms, some with more than 1,000 agents.
“Typically, our Top Buyers, Sellers and Brokers lists are all about size: dollar volumes, numbers of properties,” reported Real Capital Analytics’ Capital Trends Monthly® newsletter from October 2008. “This time, they tell stories of ingenuity, perseverance and risk taking. Under market conditions where every deal is super-scrutinized, over-committed and under-capitalized until the last minute and beyond, these dealmakers on all sides of the deal have shown their mettle in being able to bring things to a close.”
“It’s pretty incredible to maintain ground in this market, and I credit our success to our fundamental business strategy of exporting California capital,” said Chris Kostanecki, founding partner of Capital Pacific San Francisco. “California trade investors continue to seek value in markets across the US, so we’ve focused on sourcing quality investment properties, pricing them accurately and cooperating with outside brokers to get them sold.”
“Capital Pacific has always maintained strong relationships with outside brokers,” said Matt Immerfall of Orlando, FL based Servant Investments. “They expose their listing to the entire market and focus on making a deal, rather than double-ending transactions. This is really important to sellers like us, and has been key in establishing Capital Pacific as an industry leader.
Kevin Adatto, of Capital Pacific’s Portland’s office also attributes the company’s success to an agile business model: “Our model has always been designed to create results in any market conditions; our ability to react quickly, price properties ahead of the market and implement creative deal structures has created liquidity in a challenging market. Considering the market is moving so quickly, information that is 30 days old is no longer relevant; it’s what is happening daily and weekly that is essential to executing ahead of the market. Our ability to maintain a steady transaction volume has uniquely positioned us to keep a pulse on where the market is and more importantly where it’s headed.”
Looking forward, Capital Pacific projects that 2009 is going to look a lot like 2002:
· There will be continued demand from 1031 buyers and private investors as well as private single tenant funds, but quality, location and credit will take precedence
· Industry sales volume will be approximately 40% of what it was at the 2006-2007 peak
· In the single tenant sector, Buyers and Lenders are going to look more closely at location, credit, unit level economics and location, representing a “back to fundamentals” approach to real estate
· Secondary markets and franchisee deals will also be very difficult to finance. We feel this product type will see the biggest movement in cap rates, moving up dramatically.
· Buyers will focus on Core Plus real estate
· Smart investors will take advantage of ’09 opportunities rather than waiting till the market heats up in ‘10