“Competitive advantage” has become something of a buzzword (even though it’s two words) in the real estate investment world. Money managers and investors alike intuitively know what it generally means — one firm believes it can do something better than another. But what does it mean specifically? What exactly are the competitive advantages that real estate investment managers tout, and why are they so important?
From the Current Issue
For years the environmental and social equity movements have tried to make inroads into the real estate investment community. While not wanting to minimize either the sincerity of these efforts or the significance of the successes made to date, progress has been somewhat limited. A number of factors have contributed to this situation, not the least of which are timing, public and private attitudes and, too frequently, a failure to understand the overwhelming importance of profitability as a factor in the decision making of real estate executives and investors.
The amount of capital being sought for high-return private equity real estate funds is at a record high. At the same time, many institutional investors are sidelined by the denominator effect or by a tactical decision to move slowly in an uncertain market that is awash in fund offerings.
There’s a good reason Senator Barack Obama is considering Gov. Arnold Schwarzenegger for energy czar in an Obama administration. California is the greenest of all our states, in no small part due to the Governator’s action-packed role in ensuring the sustainability of the state’s new and existing buildings.
Over the past several years, hospital construction in the United States has boomed. The hospital industry spent nearly $100 billion in inflation-adjusted dollars in the past five years on new facilities, up 47 percent from the previous five years, according to the Census Bureau. Those statistics, coupled with an expected increase in demand for healthcare from an aging population, have given investors ample reason to pay attention to the medical real estate market.
Hawkeye Partners, a boutique real estate private equity firm based in Austin, Texas — has made a name for itself among institutional investors as a matchmaker of sorts. Through its first tailor-made investment program, Scout Fund I, the company works to facilitate relationships between institutional investors looking for new opportunities and new managers looking to earn their stripes among the major players. Claudia Faust and Scott McArtor, co-founders and managing partners of Hawkeye, recently spoke with The Institutional Real Estate Letter editor Rachel Speirs, about their company, their services for investors and their outlook on the market.