Real Estate Journal — Pennsylvania — May 11 - 24, 2018 — 15C


M id A tlantic

P ennsylvania 175 principals, directors and managers attend Recapping NAI Global Philadelphia Conference

hiladelphia, PA — Recently ago 175 principals, directors and managers from over 70 NAI Global offices worldwide gathered in Philadelphia to network, share best practices, hear from the president of the firm on the company’s growth and business plans, and learn from some of the brightest minds in business and real estate over the course of a two-and-one-half day confer- ence. The Summit was held at the Hyatt Bellevue on South Broad. After opening remarks from NAI Global president Jay Ol- shonsky, FRICS, SIOR , and numerous breakout sessions between speakers, the NAI Global Leadership Summit and Global Market Outlook shifted to the main events. The keynote panel featured Philip Mintz, partner & CIO with Apollo Global Manage- ment US &Asia Real Estate Equity Business , based in NY. That panel was moder- ated by Olshonsky and Fred Meyer, SIOR and executive VP and director of brokerage and corporate services with NAI Mertz . Mintz wasted little time in P

getting the attention of the nearly 300 NAI principals, brokers, staff and clients, when he compared the outlook for the U.S. economy with Japan’s during that country’s dive into deflation. Mintz is an Asia investment expert -- he lived in Japan many years while working for Asia Pacific Land as the Chief Investment Officer and earlier, when he was a partner with Warburg Pincus focused on Asian real estate investing and before that as the CEO of General Electric Real Estate Asia. Mintz predicted a significant correction in U.S. asset prices of both commercial and espe- cially residential real estate prices. “In all candor, we see more opportunity in Asia for risk- adjusted returns than we do here,” he said. “I just see a correction coming with asset- price deflation as part of that trend in the U.S.” Some of his bullish position on Asia comes from the fact that there are very few firms in Asia that do the type of business the real estate arm of Apollo does – structured credit with $275 billion in assets un- der management.

When one of the modera- tors stated that there is an abundance of capital on the sideline to be deployed in a variety of asset classes, includ- ing commercial real estate, Mintz said “when the markets compress, that dry powder will get scarce.” While Apollo is currently a net seller of industrial prop- erty in the U.S. – the firm recently sold industrial as- sets in Atlanta and is in the process of doing the same in other markets, Apollo is not sour on all aspects of the global economy, or real estate invest- ing. The firm recently acquired a manufactured home commu- nity in Morgantown, West VA, and Mintz said that Europe is in the best shape that it has been in years, particularly Germany. “Money is made in markets where people have extreme in- formational value and granu- lar expertise,” he said. Andy McCulloch , man- aging partner with Green Street Advisors was the other keynote speaker during the Global Market Outlook session of the conference. He, too, was a bit bearish and continued on page 19C


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