Looking Ahead to 2011

Clock Strikes Midnight - Photo By: Hoang Anh Tuan

When the clock strikes midnight and we commence 2011, the topic of discussion remains: Where are we, where are we going, what is different in real estate? The short answer? I don’t know exactly where we are, but I do have the sense that we are going to be here for awhile longer.

De-leveraging is an excruciatingly slow process, and, if pressed to make a guess, I would say we are half way there — wherever that might be. By pure origination analytics, we should be humping the curve of the debt actuary chart in two-and-a-half to three-and-a-half years. That is, until you incorporate the kick-the-can extensions.

The downside risks are so broadly discussed, let’s just assume we all know them and talk upside. As slow as it might feel, the economy is healing faster than the real estate leveraging resolution, so there remains the hope that a continually healing economy and in-migration will start to provide some bottom-up support to the real estate market in DFW.

If this is the case, real estate in general might find itself in a recovery mode sooner than the statistical answer might indicate.

What does all this mean for PegasusAblon? Our focus in 2011 will be remarkably similar to the 2010 plan with one sole exception: We have a stronger team and broader reach. Though the four deals we closed in 2010 were all very exciting, we hope to grow and leverage this success for an even stronger 2011.

Happy New Years to all from the entire PegasusAblon team. We wish each of you health, happiness and success in 2011. We remain deeply appreciative for all we have and for those who continue to serve and protect our Nation.

Photo courtesy of: Hoang Anh Tuan