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3 'Tremendous Opportunities' in Commercial REITs
CNBC News Associate
More people are sounding the alarms about what they call a “ticking time bomb” in the commercial real estate sector, but Jay Leupp, senior portfolio manager of Grubb & Ellis AGA, said there may still be opportunities for investors.
“We’re in a market where we’re going to see several little shoes drop in various sectors as private borrowers face large near-term maturities,” Leupp told CNBC.
“We’re positioning ourselves to take advantage of a turnaround near-term in the more defensive sectors. So we see apartments, health care and some of the specialty sectors that have been resilient to rebound first, and then eventually, lodging, industrial, retail and office.”
He said there will be “tremendous opportunities” in preferred REITs.
“Public REITs have raised approximately $18 billion since November — they’ve strengthened their balance sheets and they’re positioning themselves not only to survive this downturn, but also to take advantage of it,” he said.
Recommendations:
Associated Estates Realty [AEC
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Alexandria Real Estate Equities [ARE
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Digital Realty Trust [DLR
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Disclosure:
No immediate information was available for Leupp or his firm.
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