An Insider’s View of the Niche Real Estate M&A Market

Guest Profile

Deborah Smith is Co-Founder and CEO of The CenterCap Group, LLC, and heads the firm’s Strategic Capital and M&A and Execution efforts. Deborah is responsible for the firm’s business operations and activities and participates in the firm’s management and valuation committees. Prior to forming The CenterCap Group, LLC, she was co-head of M&A and a Senior Managing Director with CB Richard Ellis Investors’ $40 billion AUM (Assets Under Management) investment management business. She joined CBREI in July 2007 to co-head the build-out of the firm’s M&A efforts and led the firm’s negotiation and acquisition of a majority interest in Wood Partners, one of the largest multifamily developers in the United States, in 2008. 

From 1998-2007, Deborah worked on mergers and acquisitions with Lehman Brothers, Wachovia Securities, and Morgan Stanley. She has been involved in more than $100 billion of mergers, acquisitions, and restructuring transactions. Deborah has a Bachelor of Economics, with honors, and a Bachelor of Law, with honors, from the University of Sydney.

• Company: The CenterCap Group
• Location:  Florida & Stamford, Connecticut
• LinkedIn:  www.linkedin.com/in/deborahsmith-centercap
• Website:   www.centercapgroup.com/index.php
• Phone:      (212) 620-2646
• Email:       dsmith@centercapgroup.com

Topics Covered

• What is real estate M&A? [1:13]
• What services are offered by a real estate M&A firm vs. a traditional real estate brokerage firm? [2:10]
• What is your 30-second elevator speech explaining what real estate M&A is? [8:20]
• How does the perspective differ at the portfolio level vs. the individual asset level and how does that impact an investment strategy? [9:45] 
• What are the cap rates for these investments, and where are they going to go in the future? [13:50]
• Are most investors in real estate institutional, and what percentage of their portfolio does real estate comprise? [16:25]
• What are the returns in real estate compared to the public stock market? [17:22]
• What are the geographic differences between North America, Europe, and other continents for real estate M&A? [22:57]
• How is the buy vs. lease decision determined for corporate real estate investors? [30:58]
• What are the sub-sectors in real estate? [34:52]
• What impact will technology start to have on the evolution of the real estate industry? [39:30]
• What is the most difficult aspect of real estate M&A? [47:00]

Resources Mentioned

• CCG Perspectives: Disrupting the Manufactured Housing Sector by Deborah Smith
• NAREIM: The business of real estate investment management

Listen to Other Episodes

• A Deep Dive Into Real Returns on Investment in the Private Equity World
• Jonathan Brabrand, Author of the $100 Million Exit
• The Future of M&A Strategy