thepupil Posted May 12, 2020 Share Posted May 12, 2020 I ask because I occasionally troll Loopnet for anecdotal perspective on CRE prices and I have never seen a single property that one would describe as "attractively priced" and sometimes I feel like the brokers / sellers are taking crazy pills. For example, this just showed up in my COBF banner ad. https://www.loopnet.com/listing/plaza-del-mar-at-fort-lauderdale/18677603/?utm_source=criteo&utm_medium=banner&utm_campaign=costardiamondad2020 This is at $470/foot. At that price, KIM (an owner of shopping centers) would be worth $32 billion. it trades for ~$10 billion enterprise value with a $4 billion market cap. KIM could be cheap [i think it was much better risk reward when it traded in the low teens in 2018 than at $9.5 now, much has changed), but I very much doubt that KIM is a 6.5 bagger (or worth 2x its 2016 post GFC high). KIM trades for $138 / foot on an EV basis. ($10 billion / 72 million) Is this property 3.4x better in quality than KIM's? No, of course not. I mean...as exciting as being anchored by Joe Picasso's, a pottery party studio? is... Now obviously any real estate listing is "aspirational". Other than idiots like me operating in residential bidding wars (I bid on a house within 3 days of listing because that's what everyone does around here), no one calls the broker and says "ya I'll pay full price". But how far off are these listings? Are schmucks on Loopnet listing $15mm properties at 3x their value? Because that helps no one. It tells a buyer that the seller is completely unrealistic/irrational and no one makes any money [namely the brokers] because transaction doesn't occur. Link to comment Share on other sites More sharing options...
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