There is significant opportunity in the office sector, including outside of major coastal markets, according to Marcel Arsenault, CEO and founder of Real Capital Solutions, in an interview with IREI. For example, Real Capital Solutions recently acquired the 35-story, 748,000-square-foot property at 401 N. Michigan in Chicago for $132.5 million, the city’s largest office deal in several years. Distress in the office sector is creating what some investors view as a generational entry point, driven by both capital markets dislocation and weakened fundamentals. Arsenault says the opportunity is increasingly defined by who can act. He describes the current cycle as his firm’s “third rodeo” and believes the market is nearing the bottom, creating an opening to acquire high-quality assets at dislocated pricing.
Why do you believe the current cycle presents a generational buying opportunity in office, and how does a transaction like 401 N. Michigan in Chicago — the c
