Atlanta-based Carter Real Estate said Wednesday that it has opened an office in Manhattan to have better access to the nation's money center as the firm positions itself to buy distressed properties.
"Our focus right now is to raise capital," said Bob Peterson, chairman and CEO of the privately held commercial real estate services firm. "We believe we are in a marketplace ready to generate buying opportunities. There have not been opportunities like this since the 1990s."
Peterson said Carter is interested in acquiring a number of property types, mostly in the Southeast, including a a group of single-family homes in Atlanta, distressed condominiums, office buildings and other "special situations where someone wants to unload their portfolios."
An office in New York will allow Carter to better leverage its existing relationships in the debt and equity sides, Peterson said. The company hired Michael Seton, a 15-year veteran of the capital markets industry, to lead the office. Seton will report to Peterson.
Peterson said Seton is from New York, has worked there all his life and has great relationships in the "financial capital of the world." The company said Seton will focus on expanding Carter's principal investment activity by further developing the firm's relationships in the equity and debt capital markets, and will seek new investment opportunities.
Seton said opportunities will persist over the next two to five years. A tight debt market and lack of liquidity are keeping many investors on the sidelines.
"Both of these factors lead to properties being locked up," Seton said. "As we talk about these opportunities, we have to dig and hunt for them."
Carter was founded in 1958. It is the largest office development firm in the Southeast and No. 6 in the country, according to the trade publication National Real Estate Investor.
Atlanta-based Cousins Properties, a Carter competitor in the Southeast, does not have a New York office.
Unlike Carter, which is a privately run company, Cousins is a publicly traded REIT and successfully raised more than $300 million with a September stock offer.
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