Q: What’s your favorite kind of multifamily asset?
A: Something that has a unique aspect to it that no one else has figured out yet: a unique location that might improve dramatically in the near future, or an asset that can benefit by a unique financing vehicle that lowers risk and increases return in the deal.
Q: What do your equity partners look for?
A: In new equity raises, you see groups wanting more control over assets and the deal than they did before. Buy/sell provisions are very common. If we are using our existing equity relationships, we have fostered good relationships there and are able to act more as a general partnership.
Q: What do you look for in acquisitions?
A: We are looking for some deferred maintenance component or something else that we can improve upon the property. It doesn’t have to be the typical management or deferred maintenance story, but we’ll do management value changes as well. Thankfully, we’re not constrained to any particular vintage or asset class. You have to be reactive to availability of assets in any market and not constrain yourself. If you don’t have the ability to change, you are going to have trouble.
Q: What is the capital climate like right now?
A: Our capital partners are patient, and they have lots of cash on hand. We bought only one asset in 2006 and none in 2005. During the run-up in the real estate market, we were not very active. But now as opportunities arise we are lucky to have some partners that are willing to step up with us and go long. Being in the South, with the job markets and employment growth, the capital markets definitely decrease pricing to a certain extent.
Q: What is your favorite book?
A: I listen to books on tape, and right now I’m listening to the Presidents series. I just finished John Adams , and I am on Alexander Hamilton.
[FAVE FOUR]
Sperring’s blueprint for happiness and success:
People: “Treat people the way they ought to be treated, and be honest in all negotiations.”
Partners: “I serve my wife. I do that in all ways and as best I can. ”
Parenting: “I try to be home every night for dinner, and I always want to be there for my kids. I’ve got a 2-year-old, and he has already picked up the basics of real estate: He marks his territory off right now by licking the wood floors.”
- Profession: “I always aim to be adding value at my place of employment and to be excited about what I do.”
