At the same time changes in the players in real estate finance are likely to produce continuing dislocations going forward. "All the money that went into the CMBS (Collateralized Mortgage-Backed Securities) market needs a new home," Halle said.
And if a quarter trillion dollars in debt can't be refinanced, some real estate properties could head south in value. "Banks are not good stewards of capital in real estate," Halle noted.
Despite myriad dislocations, some experts saw the chance to capitalize on structural anomalies in the business. Dan Wildemuth, CEO of Kalos Financial, noted that many non-traded REITs are approaching the final phase of capital raising. "You can see what's in there. You can see what cap rates are," Wildemuth continued. "They will revalue in 18 months and clients like revaluations."
Wildemuth added that some non-traded REITs that exist over 8- to 12-year time horizons-when they either liquidate or go public or find another exit strategy-may have much shorter lifespans this time around. "That's very unique," he said.