Garett Bjorkman, Managing Director of Portfolio Oversight at CIM Group, joined Julie Cooling, Founder and CEO of RIA Channel, at the CAIS Alternative Investment Summit to discuss headwinds in the real asset market.
CIM Group has worked for over thirty years to build an organization that creates products designed for strong risk-adjusted returns in real estate, infrastructure, and credit investments. The group has the ability and experience to understand how to add value to the communities where they invest. CIM now manages $32 billion with a vertically integrated team of over 1,000 employees, building a diverse portfolio of real assets across the country. With a long history of working with institutional investors, CIM is now moving into the wealth channel using the technology solution provided by CAIS.
After spending years at historical lows, the real assets market is making a difficult adjustment back to levels of interest rates that are moving back toward long-term averages. While the secular decline in the office market is well-known, there are headwinds and weakening fundamentals in other sectors, including hospitality, industrial, and multifamily. Highly leveraged property owners with variable-rate debt will find it difficult to refinance or service debt, especially when banks are pulling back from commercial real estate lending. The current market creates opportunities for investors, especially disciplined real assets managers who have managed portfolios across multiple cycles. Investors with low levels of leverage may be able to acquire properties below their long-term value.
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