From ValueWalk:
In an interview with Bloomberg’s Erik Schatzker and Stephanie Ruhle from the Milken Institute Conference in Los Angles, California, Starwood Capital Group LLC’s Sternlicht said investors need discipline, “I like this tree shaking. I kind of like the market sort of reeling and dropping 100 points. I like keeping fear in the market. I like keeping people paying attention. Because it’s good for discipline. It keeps them disciplined.”
Sternlicht was asked why he and other investors get flack for being in the single family home market and said “It’s a good thing we take heat because it kept everyone from doing it. And we waded our toes in. I thought it was a one-way trade. I didn’t think we’d have any risk on the home values, especially where we bought. We focused on Florida and Texas and California. We stayed out of some of these wild markets like Phoenix and Vegas where now you’re seeing property prices go down because the investors got so aggressive buying those markets beyond their natural price point.”...MUCH MORE
Sternlicht also said:
- A lot of money in chasing property in Europe
- Search for yield is like it was in 2006
- We’re in a period of ‘long, slow growth’
- Hotel market in New York is softening
- Companies still holding back on travel spending
- Corporate group travel not what it used to be.
- There’s a lot of supply in New York Hotels
- Property market is being drive by debt market
- 15% to 20% returns may be too much
- Investors should perhaps aim for 10% returns
- Stays out of ‘wild markets’ like Phoenix
- Managing houses must be shown to be efficient.
- Prices are down in aggressive investment markets.
- Likes Jeb Bush for ’16, interested to see how Christie does post ‘Bridgegate’.
Starwood’s Sternlicht on Property Market, Hotels...
