REIT.com: Finding Value In Public & Private Markets

www.reit.com Jim Pelts, analyst with William Harris Investors, says his firm was able to navigate the difficult investment market in part by using the arbitrage between the public and private markets. In terms of the public REIT market, Pelts says he currently sees the best value in the hotel sector. In the private sector, Pelts says he has been able to buy into some mezzanine loans at a discount. The key issue in the second half of 2010, in Pelts view, is the availability of credit. "That really gets to whether the banks are ready or if they are going to take another year to come to grips with the bad loans they have. Take the haircut or discount, so that the buyers can become interested," Pelts says.