Video Recap of Bisnow's Los Angeles Investment Summit

Our excellent moderator, Allen Matkins’ Mike Matkins, notes there’s large-scale uncertainty in the marketplace. He queried our panelists on where they’re investing—and where they’re not—as well as what scares ’em. (With us, it’s the loss of IQ points after watching 10 minutes of Here Comes Honey Boo Boo.) Wrapping up, Mike asked whether they’re bullish or bearish on SoCal investing. He got two bulls and one middle-of-the-road.

As Morgan Stanley managing director, Kev Zoryan is responsible for Western US real estate investing. The firm was a big buyer in SoCal, but he’s seeing fewer opportunities, particularly for office, unless one goes to secondary locations. Cheap debt isn’t motivating him to buy, but inflation is coming so acquiring hard assets is a good thing if it's capitalized right. Kev thinks the AEG portfolio could bring investors to LA, even though Downtown has always been love-hate.

According to managing director Jonathan Klein, Fortress Investment Group buys properties that it believes it can turn without needing to see substantial fundamental growth. A distressed and opportunistic player, Fortress has been active in NorCal but selective in SoCal, where the firm has struggled with office in Orange County, and in LA proper has been inactive. Emotionally, Jonathan would like to say that LA is among the next top five markets for investing, but there’s probably five other markets Fortress is watching more strongly.

Quoting the Great Gretzky, CBRE vice chairman Kevin Shannon says you don’t want to skate where the puck is, but where you think it’s headed. Capital that’s scared of the appreciation in NorCal (where folks put out sourdough bread bowls from Boudin on Halloween instead of pumpkins) might try investing in LA before it turns. Downtown wasn’t an alternative when West LA rents spiked in 2006-’07, but today it’s a great 24-hour story. (Not to mention a cooler place to live and work.)