Investment and construction continue for Landmark Properties, according to Wes Rogers, the company’s president and CEO. The firm has been very active as of late, with 23,000 beds in the development pipeline. This level of construction is set to continue as the firm plans to add another $1.5 billion worth of projects to its docket in 2019, with similar plans set for the next three to four years.
Rogers notes this is a low cap rate environment, though construction costs are high. Still, he feels the fundamentals are strong enough to justify development and healthy estimated returns. He also believes constructions costs have nowhere to go but down. Despite this optimism, Rogers realizes not every opportunity is penciling, as Landmark has walked away from more deals this year than it ever has in the past.
for insight from Rogers.