Cumberland Mall

Validation of investment thesis outperforming underwriting.
Property Type
Hotel
Investment Type
Credit/Lending
Brand
Date of Investment
October 2022
Location
Vineland, NJ
Keys
Units
Square Footage
680,283
Credit/Lending
Credit/Lending
Credit/Lending
63%
Credit/Lending

Validation of Investment Thesis

Underwritten IRR of 21.4% achieved an IRR of 28.3%

Significant Marketable Land

Sold all outparcels for $37MM to a public REIT to pay off the loan.

Experienced Sponsor

One of the most active distressed mall buyers in the country. The firm’s substantial in-house capabilities give them an advantage, which typically rely on third parties to handle various transaction processes

Strong Basis

Loan represents $42/SF or 49% less than recent comparable sales

Peachtree news and insights.

Insight
General
5 min read

Avoid Political Noise When Investing: A Market Update with Larry Adam, Raymond James

Peachtree Group hosted Larry Adam the Chief Investment Officer of Raymond James for a recent Market Call. Larry talked about the importance of staying invested throughout political cycles like the upcoming US Presidential election.

In our recent market update call, we hear insights from Larry Adam the Chief Investment Officer of Raymond James, alongside Greg Friedman, Managing Principal & CEO of Peachtree Group and Daniel Savage, VP Equity Capital Markets of Peachtree Group. One of the standout moments from the discussion was an intriguing investment takeaway that highlights the importance of consistent investing over trying to time the market based on political cycles.

Investment Insights Through the Decades

Consider this: if you had invested $10,000 in the stock market starting in 1970 and only remained invested during Republican presidencies, your investment would have grown to approximately $133,000 by now. Conversely, if you had only stayed invested during Democratic presidencies, your portfolio would have soared to around $700,000.

Now, here’s where the numbers become even more compelling. If you had stayed fully invested in the market, regardless of which party was in power, that initial $10,000 would have appreciated to an impressive $1.6 million!

The Lesson: Stay the Course

Timing the market based on political affiliation has proven to be less effective than maintaining a consistent investment strategy. As Larry Adam pointed out, It's more important to be in the market than trying to find the market. I think that's a critical lesson…”

The volatility that comes with political changes can tempt investors to pull back or make hasty decisions. However, history shows that those who remain patient and invested through all market conditions tend to reap the greatest rewards.

The key is to be in the market, not trying to outsmart it.
Slide Provided by Raymond James

About Larry Adam

Larry Adam joined Raymond James in 2018 as Chief Investment Officer. With over thirty years of experience in the financial markets, Mr. Adam brings a wealth of knowledge and valuable insights on the markets and economy to advisors and clients. As CIO, Mr. Adam develops the firm’s CIO view, a cohesive and comprehensive macro outlook, using insights and perspectives from the firm’s strategists. Mr. Adam presents at numerous client events and is renowned for his ability to explain complex concepts to investors.

Mr. Adam provides advisors and clients with in-depth guidance regarding the markets, including weekly and monthly commentary and quarterly outlooks. In addition to serving as President of the Investment Strategy Committee, he also sits on the Global Wealth Solutions (GWS) Diversity & Inclusion Campus Recruitment Committee, the GWS Executive Council, and the Alternative and Structured Investments Product Approval Committee.

Prior to joining Raymond James, Mr. Adam held the dual roles of CIO of the Americas and Global Chief Investment Strategist for Deutsche Bank Private Wealth Management. He received a B.B.A. with a concentration in finance from Loyola University Maryland in 1991 and received a master’s degree in business with a concentration in finance from Loyola University Maryland in 1993. Mr. Adam is an adjunct professor at the Sellinger School of Business and Management at Loyola University, teaching classes in International Finance. He received the Chartered Financial Analyst designation in 1996, the Certified Investment Management® certification in 2001 and the Certified Financial Planner® designation in 2004. Mr. Adam is regularly featured on CNBC and Bloomberg and is frequently quoted in well-known publications such as the Wall Street Journal and Barron’s.