Where will the great opportunities to invest be in 2016? Will it be lodging? Distressed retail? Joseph Ori, executive managing director of Paramount Capital Corp., took a stab at answering that question.

Sell Class A Apartments

Owners of class A suburban/urban apartments that were built at high-cost and high-rent structure should be considered for sale. The double-digit rent increases realized in many markets is coming to an end, and the huge volume of new units coming to market is the greatest since the 1980s. According to the Moody’s/RCA Commercial Property Price Indices, the prices for apartments is currently 33 percent above their peak value in 2007. The wily Sam Zell is selling 23,000 apartment units, located primarily in “hi-beta” markets to Starwood Capital for approximately $5.4 billion. Zell, undoubtedly sees the unprecedented volume of new units coming on stream and is getting out at about a 5.5 percent cap rate. If Zell is selling, I do not want to be buying.