Had coffee with a competitor of mine yesterday.
He said something that really resonated with me, something like: “I’m looking at some of these deals getting done and I feel like calling the buyers up and asking them what’s wrong with them.”
That’s exactly how I feel right now.
The benefit of doing sub-institutional scale deals is supposed to be that you’re not competing with super-cheap pension fund money.
But there are apparently plenty of people who think it makes sense to pay $350 / sq ft for rent control, value add deals in East Hollywood or take down 2% caps (on real numbers) in Silver Lake. And they apparently have money.