Investment Matters: How CRE Capital Flows Now
Insights from 30-year industry veteran Joe Iacono, founder & managing partner at Crescit Capital Strategies.
Investors, advisers and lenders are looking for answers to crucial questions about the real estate capital markets. Interest rate hikes, together with conflicting economic signals, are stalling activity in the market. In this episode of Investment Matters, Crescit Capital Strategies Founder & Managing Partner Joe Iacono offers perspective on what’s ahead at this challenging time.
Iacono brings the perspective of a real estate career that started when he was a teenager. He bought his first property when he was still in high school and went on earn degrees from Rollins College and Columbia University, where he earned his master’s in real estate.
Over the course of his 30-year career, Iacono has held hold senior positions at a series of blue-chip companies, with special expertise in securitization. As a managing director at JP Morgan Chase, he directed the nationwide CMBS origination and securitization team. He developed the CMBS conduit lending platform at PaineWebber, helped to create one of the industry’s first securitization programs at Daiwa Securities America and was a co-founder of the commercial real estate business at Credit Suisse First Boston.
Highlights of this episode include:
- Learning the ropes of CRE finance (1:35)
- Capital flows and securitization (4:00)
- Debt and deal dynamics (8:50)
- Making sense of cap rates (14:22)
- CMBS, CLO outlook (16:55)
- Turning points on Iacono’s career path (20:16)
- Lessons of the Great Financial Crisis (23:08)
- Investing opportunistically (26:18)
- The bid-ask gap (28:55)
- Off the clock: a man of many interests (33:24)
- How will the market adjust to volatility? (35:31)