Nancy Lashine – Founder @ Park Madison Partners – Cycles, Crises, and Capital: Navigating The New Normal in Real Estate

Nancy is the Founder and Managing Partner of Park Madison Partners. As a leading real estate capital markets firm, Park Madison is an advisor to investment managers and operators and provides capital placement services for institutional investors. The firm has placed over $25 billion of equity in PMP-sponsored vehicles and maintains relationships with over 2,500 real estate investors and managers.

On this episode, Chris and Nancy discuss:

– Nancy’s perspective on the capital markets

– Capital allocation

– Development valuations

– Fundraising structures

– Wisdom for folks pursuing a first-time fund

Listen on:
Apple Podcasts


(00:00:00) – Intro

(00:04:12) – Nancy’s perspective on the capital markets

(00:14:40) – Pref equity in Industrial

(00:16:09) – A discussion on the Office class

(00:20:40) – Capital allocation

(00:22:42) – What do institutional investors care about in contrast to private investors?

(00:26:59) – Development valuations

(00:29:30) – Fundraising structures

(00:43:21) – Wisdom for folks pursuing a first-time Fund


Episode Summary

Nancy, known for her deep insight and strategic thinking in real estate investment, shared valuable perspectives that are particularly relevant in today’s fluctuating market landscape.

The episode kicked off with a deep dive into the current state of real estate capital markets in the United States. Nancy highlighted the challenges posed by changing interest rates and the slow revaluation process that characterizes the industry. She underscored the impact of rising interest rates on property values and noted a significant reduction in transaction volume, as institutional investors adopt a more cautious approach. This cautiousness, she explained, is also seeing preferred equity gain popularity as an investment choice, offering some current yield while sitting higher in the capital stack.

Shifting focus to office real estate, Nancy discussed the evolving dynamics of this sector, particularly in the context of office-to-residential conversions, a trend gaining traction in central business districts. She elaborated on the unique challenges and opportunities associated with such conversions, noting a similar trend in suburban office parks being repurposed for residential use. The pandemic’s influence on office spaces was a key point, as Nancy delved into how it has reshaped the real estate market’s needs.

Nancy then provided insights into the nuances of fund management in real estate. She emphasized the critical role of investor trust in discretionary fund management and made a clear distinction between managing individual deals and overseeing a fund. The conversation covered various fund structures, like GP-led recaps and secondary trades, with Nancy explaining the strategic reasons behind these choices. She highlighted the impact of market conditions on fund management strategies, stressing the importance of aligning with investor priorities.

The challenges and strategies of first-time fund raising in real estate were up next. Nancy stressed the importance of having a distinct strategy to stand out in a crowded market. She reflected on the evolution of the investment management business, noting the emergence of new firms and strategies in response to changing market conditions. The role of placement firms in connecting investors with fund managers was discussed, along with the significance of fostering long-term relationships in the industry.

In a candid segment, Nancy talked about the decision-making process involved in becoming a fund manager. She shared insights on the motivations for this transition, such as the desire for discretionary capital and the commitment to acting as a fiduciary. The conversation rounded off with Nancy sharing her perspective on the long-term nature of fund management, emphasizing the dedication required from both managers and investors.

The FORT is produced by Johnny Podcasts

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