Back to School / The House Where Nobody Lives / Job Travails

On Tuesday I was in New Jersey (the state just west of New York) visiting with some long-time real estate industry friends. We talked about a lot of stuff; what's changing; what opportunities are there for regional experts, either in an asset class or in a service.  We talked about the consolidation that is still to occur across our broad industry and what opportunities that might offer.  Quite possibly, the word, other than uncertainty, that I've been hearing uttered most is consolidation.  We're living through very interesting and exciting times.

Real estate song?  Tom Waits poignant classic, "The House Where Nobody Lives"  came into my mind this week.  

There's a house on my block 

That's abandoned and cold

Folks moved out of it a long time ago 

And they took all their things

And they never came back

Looks like it's haunted

With the windows all cracked

Everyone calls it the house, 

the house where nobody lives.

Once it held laughter

Once it held dreams

Did they throw it away

Did they know what it means

Did someone's heart break

Did someone do somebody wrong?

Well the paint was all cracked

It was peeled off of the wood

The papers were stacked 

On the porch where I stood

And the weeds had grown up

Just as high as the door

There were birds in the chimneys

And an old chest of drawers

Looks like no one will ever come back

To the house where nobody lives

So if you find someone

Someone to have, someone to hold

Don't trade it for silver

Don't trade it for gold

'Cause I have all of life's treasures

And they're find and they're good 

They remind me that houses are just made of wood

What makes a house grand ain't the roof or the doors

If there's love in a house it's a palace for sure

Without love it ain't nothing but a house 

A house where nobody lives

One of my favorite songs is (Somewhere) Over the Rainbow, music by Harold Arlen and lyrics by E.Y. (Yip) Harburg.  It was written for the 1939 movie, The Wizard of Oz, and was sung by Judy Garland in her starring role as Dorothy Gale (Who ever knew her last name anyway?)  This song has been sung and recorded by a gazilion people but the one that really gives me the chills is by Eva Cassidy. Imagine what it feels like to be able to sing like that? (There's a very special moment at 3:50).

Holstee Manifesto

Thanks to one of our OTR community for sharing this with me.  I hadn't heard about it before and now have the poster sitting on my desktop ("This is your Life....").  Sort of reminds me of the song off my first CD, "Live Your Life."

Very cool restaurant of the week:  Mari Vanna, 41 East 20th Street, Between Park Ave and Broadway, New York.  Thanks Alan.

Congratulations:

1. Larissa Belova who has joined Jonathan Rose Companies.
2. Michael Carp who has joined DivcoWest
3. Jerry Rappaport has joined Chestnut Hill as managing director on a new venture that will focus on apartment real estate investment.

Back to School:  Here we go boys and girls.  The U.S. has always viewed this Labor Day weekend as the symbol of the end of the summer 'Back to School/Work After Summer Vacation" wake-up call.  We're taking a look at our calendars and finalizing our plans to attend industry events, visit with clients and prospective clients and look at our business plans to make sure we do what we need to do to "hit our numbers" for the third quarter and the year. I look forward to seeing you somewhere 'on the road' this fall.

My friends who are looking for jobs are gearing up for the continuation of that search.  Some have been in serious conversations regarding changing jobs but it sounds like people are just really dragging their feet when it comes to pulling the trigger (Sound familiar to those who are out raising capital too, eh?)  I wonder:  do the decision-makers, those who can say, "Yes, we want you to join us" remember what it's like to be on the other side of the desk in conversations like this?  What it feels like to be kept 'hanging?'  

Let me know if you have any openings at your firm where you're not using a recruiting firm.  I'd be happy to do my best to connect you with good candidates.

On the road...

(Note:  Somebody wrote to me last week reminding me that now that I'm living in NY, when I mention being in NY it's not "On the Road!"  

So....

Sept. 6/7:  Ithaca, NY to facilitate a conversation about "Careers in Real Estate-Connecting the Dots" with students at Cornell University.

Sept. 13:  Los Angeles, CA to host RCA's Fall 2012 Breakfast Briefing  (let me know if you'd like to attend). Special guest panelist:  Lee Menifee, Amercian Realty Advisors

Sept. 14:  San Francisco, CA to host RCA's Fall 2012 Breakfast Briefing (let me know if you'd like to attend).  Special guest panelist:  Asieh Mansour, CBRE

Sept. 21:  Boston to host RCA's Fall 2012 Breakfast Briefing (let me know if you'd like to be invited).  Special guest panelists:  Mike Acton, AEW & Josh Scoville, Hines.

Oct. 3:  Invited to attend a very special dinner event hosted by CBRE in New York.

Oct. 14-16:  Chicago to attend and moderate a panel at the NAREIM Fall Executive Meeting

Oct. 17:  Chicago for a "Careers in Real Estate-Connecting the Dots" discussion with students at DePaul University

Oct. 18:  Still in Chicago for a "Careers in Real Estate-Conneting the Dots" discussion with students at The University of Chicago/Booth School of Business

Oct. 22-24:  Los Angeles to attend the PREA Fall Conference (Note:  There is some behind the scenes chatter about a very special, after-hours music event.  Stay tuned!)

Oct. 25-26:  Amsterdam to attend and moderate a panel at the PERE Global Investor Forum

Oct. 29-31 (Note New Dates).  Amsterdam for the first Dutch/U.S. Real Estate Trade Mission produced jointly by The Felix Consulting Group, NCH (The Netherlands Council for Trade Promotion) and Zien-Branding. (Invitation only).

Nov. 7:  Washington, DC for a "Careers in Real Estate-Conneting the Dots" discussion with students at Johns Hopkins University

Nov. 8 & 9:  New York to attend and serve as event chair for the PERE Summit

RCA's July Report / Choose Wisely / Letting People Help You

RCA (Real Capital Analytics) released their July 2012 U.S. Capital Trends reports the other day.  In reading through the property specific reports here's the commentary that  jumped out at me:

Hotels: "The private sector is the sole capital group that has increased acquisitions in 2012 and the average price paid by them is up as well."  

Apartments:  Sales of significant properties slowed to their lowest level in almost 18 months.  

Retail: July transaction volume barely topped $2.0Bn in July, less than half of June's total and 20% lower than a year earlier.  

Industrial: Like retail, July transaction volume was $1.8Bn; less than half of June's total and 15% lower than last year. 

Office:  July volume of $5.4Bn down 10% from last year and the third consecutive month of decline. 

So, we're still in a funk and in an effort to not use the word "uncertain" as the cause again I consulted my trusty Thesaurus.  "unsure, vague, doubtful, hesitant, undecided."  In the conversations I continue to have with the institutional investors themselves and the investment managers this is a constant over-riding theme.  And yet, there are those who have been able to raise money, considerable amounts, usually from investors that have had good experience with them before.  So, things are not bad, it's just that, like any situation, they could be better.  The problem is that things are different and we all need to decide what we're going to do differently that will allow us to achieve the goals we've established for ourselves and our firms.  

We are at a huge inflection point in many ways and I keep harkening back to the line near the end of Indiana Jones and the Last Crusade when the knight says, "you must choose, but choose wisely, for as the real grail brings eternal life, the false grail brings death." Well, maybe death is a bit severe but you know what I mean.  

This paragraph caught my attention in an article called "Bankers Gone Wild" about the LIBOR scandal and what can be done to 'rein them in.'  ".....we need to admit that fraud is a crime and throw some people in jail.  That shouldn't be so hard in the case of LIBOR, which involves no complicated debates about who knew what when.  Bankers were asked a simple question, and they lied in response.  Most important, though, we need an attitudinal shift on the part of regulators, who need to recognize that their gentleman's-club ethos is ill-suited to today's financial world and who need to be aggressive not just in punishing malfeasance but in preventing it from happening.  (For some tips on how to do this, they might look to the way that American police forces have dramatically lowered big-city crime rates).  This new approach would be intrusive and overbearing, and would make it harder for bankers to do what they want.  In other words, it's exactly what the financial industry needs."  

I've always liked helping people.  A good day is when I'm able to help someone.  For most of my life I was not able to accept or seek help. Then, a few years ago, I read a book that said that if you don't allow other people to help you they don't get the chance to feel the joy of helping someone that you feel when you help someone (That's a terrible sentence isn' it?).  So, I broke through my barrier and, as you probably know already, it's a wonderful feeling when someone really wants to help you; no strings attached; just help.  You guys are included in that group of people whether you know it or not.  Being out there every week, reading or at least glancing at what I write and sometimes writing back to me.  That's huge!  And for those that have gone above and beyond to reach out to help me....my most heartfelt thanks.

Phrase of the week:  "Wake up every morning with the thought that something wonderful is about to happen."

Daffy Dan's is a discount clothing store that bills itself as "Clothing Bargains for Millionaires."  Well, I should say "billed" as the entire chain is closing.  There wasn't much media fanfare considering that Daffy's founder, was a pioneer in 'off-price' retailing.  I thought you'd find this excerpt from Mr. Shulman's obituary  interesting.  He died in 2011 and the chain lasted just a little more than a year after that.  

"Irving J. Shulman, who founded the Daffy’s clothing store chain and brought discount fashion to Fifth Avenue through quirky marketing and a promise of “clothing bargains for millionaires,” died on Friday in Houston. He was 96 and lived in Manhattan. Mr. Shulman died just short of the 50th anniversary of the founding of the original store, Daffy Dan’s Bargain Town in Elizabeth, N.J. When Daffy’s opened its first New York City location in 1986 on 18th Street and Fifth Avenue in Manhattan, it was seen as the “coming of age of the off-price apparel industry.” Mr. Shulman used personal charm and eye-catching marketing to build his business. Dressed in a suit with a handkerchief tucked into a breast pocket, he was a familiar sight helping customers on the sales floors, mostly at the 57th Street store in Manhattan. At one store he posted a mannequin on the roof to attract passers-by, who would rush in warning that a woman was about to jump. At another outlet he parked a Rolls-Royce outside to underscore the “bargains for millionaires” slogan. In 2009, Daffy’s, which also sells household goods, held a promotional contest  offering a $700 monthly lease for a year on a furnished West Village apartment that normally rented for $7,000."

I met Irving many years ago in my early days in the outlet/off-price shopping center industry.  His original store in Elizabeth, NJ was not far from one of the great record (as in LP) stores ever, Vogel's, where my brother and I used to be regulars.  What can we learn from Mr. Shulman's marketing style?  Can some of his ideas be used in our staid investment world? Well, maybe his stuff would be considered over-the-top (actually no maybe about it!) but it does remind us that we need to differentiate ourselves.  If you put yourself in the seat of an active pension fund, endowment, foundation or consulting firm person who meets with who knows how many investment managers and gets information from how many more, it's clear that if you're looking to get the time of day from them, you need to be memorable.  

In the process of building lasting relationships, what you'd like to be known for are the basics: (1) You did what you said you were going to do with their money and (2) You were open and honest about everything.  I don't think it's all that more complicated although, as a someone recently said to me , "When they look under the hood, we want them to see a clean engine."  What is required, to build a business, any business, is the patience and wear-with-all to see it through.  There have been very few, if any, overnight sensations in the institutional real estate world.  You will be rewarded if you take the time to listen to what people want and then work hard and do your very best to deliver it.  Capisci? 

Simply Too Cute!

The Felix Consulting Group: Update

Listening to the kind of help people have been telling me they need has helped me refine and clarify the coaching and other services that we're offering.  

Coaching

• Presentation:  Improve your delivery & materials
• Company Strategy:  What highway should your firm take?
• Personal/Career:  Which road should you travel?
• Raising Institutional Capital:  How to do it
• Events:  Increasing the audience experience

"Workshop Day"- A unique educational/training experience held in your office 

• How to network
• How to build lasting relationships
• How to get the most out of attending an industry event
• How to leverage your trade association membership
• How to be a good panelist
• How to be an effective moderator
• How to get meetings with people who don't know you

Please reply to this email or call me at 707.260.4233 to talk about what would be valuable to you and your team. Thanks.

Steve

On the road...

Aug. 27-Sept 11:  New York

Sept:  13:  Los Angeles to host the RCA Breakfast Briefing

Sept. 14:  San Francisco to host the RCA Breakfast Briefing

Sept. 17-20:  New York

Sept. 21:  Boston to host the RCA Breakfast Briefing

Oct. 1-3:  Amsterdam to host the first Dutch/U.S. Real Estate Trade Mission

Oct.  8-12:  New York

Oct. 14-16:  Chicago to attend the NAREIM Fall Executive Meetings

Oct. 17:  DePaul University, Chicago for a discussion with real estate students called "Careers in Real Estate: Connecting the Dots."

Oct. 18:  University of Chicago for a discussion with real estate students called "Careers in Real Estate:  Connecting the Dots."

Oct. 22-24:  Los Angeles to attend the PREA Fall Conference

Oct. 25-26:  Amsterdam to attend and moderate a panel at the PERE Global Investor Forum

Oct. 29-Nov. 6: New York

Nov. 7:  Johns Hopkins University, Washington, DC for a discussion with real estate students called "Careers in Real Estate:  Connecting the Dots."

Nov. 8-9:  New York to attend and be a chair at the PERE Summit

Reinventing Your Life / Raising Institutional Capital / Dutch-U.S. Real Estate Trade Mission

"We've got a number of investors who are not only interested in our fund but tell us they've "recommended" us to their investment committee.  Then why is it taking so darn long for them to sign the subscription agreement?"  Something similar has come up in multiple conversations I've had recently.  "To us, they're either in or out."  This pragmatic statement came from another fund manager that I had breakfast with only this morning.

"We seem to be at a natural pause," a good friend said over coffee the other day.  "We're always looking forward to this or that landmark event, hoping that things will change dramatically after, for example, an election. But I believe we have been disappointed that this has not happened in recent history."

Even though this week's industry news mentions a number of fund closings, the talk is more and more about institutional investors thinking that a commingled fund is not their first choice anymore.  If that is true, and I believe it is, there may be more opportunities for solid, regional real estate operators to tap into institutional capital in more ways than they have before, which has typically been on a deal by deal basis.  Some of these regional operators have spoken with me about "How do we get some of that there pension fund money?"  The help I offer them is in the form of my one-day, soup-to-nuts session on "How to Raise Institutional Capital."  It's really to get people to understand what it takes to be seen as an institutional real estate fiduciary and also what to expect when going out to market your first fund.  

But what about the more well-established investment advisers?  "It's not easy but we are raising money.  Although, as a large firm, with a lot of mouths to feed, we need to have multiple products in the market at the same time."   We, as an industry, are clearly at an inflection point and, in the end, we should probably give up on things returning, at least in our lifetimes,  to what they were during the last go-go cycle (even though CMBS is coming back it is not the savior).  But, as I have planned, and fully expect to be around until 2068, it'll be interesting to see if I'm right.

Reinventing Your Life is the title of a great book that I'm pretty sure has been mentioned on this page before.  Having read it a couple of times, I've learned a lot and been successful, to some degree, in making some changes to myself that have benefited both myself and those close to me.  There are other things, deeply ingrained things, that are much more difficult to change.  When you read this book you'll get what I'm talking about. 

As some of you know, and others have read between the lines, my life is changing...again...as I've moved from Napa Valley to New York to start the next chapter.  There are multiple reasons behind the move, not the least of which is that New York is the capital of the commercial real estate industry.  Also, a number of my existing (11) clients are based there and because of my deep roots in the New York area, the potential for new business is considerable.

New York is also closer to Europe than California (Duh!) and I will be spending more time across the pond, something I'm looking forward to.

My first Europe trip this fall will be for my own Dutch-U.S. Real Estate Trade Mission in Amsterdam on Oct. 3-5.  Announced here last week it seems to have struck a nerve as we've had some sincere interest in attending this invitation-only event.  Stay tuned.

Later in October, I'll be back in Amsterdam again to attend and moderate a cool panel at PERE's Global Investor Forum.  

What else is new?  Early this week I shook hands (where I'm headed I don't need contracts!) on a brand new, broadcast-quality and digitally-delivered monthly interview series that I've wanted to do for a long time.  It's part of my personal commitment to advancing mentorship in the industry and providing events, tools and content to help younger people learn, grow and connect.  More details on this next week.

So, like you guys, this summer has been a busy time for me, although I'm starting to sense that people are checking out for the end of the summer holidays.  Yes, my personal life is changing but it is fairly clear that it's for the good of all involved.  That doesn't mean it's easy but at least I'm not second-guessing myself.

Song of the week:  Make A Plan To Love Me

Best donuts in a long time:  Mission Donuts, Laguna Niguel, CA (go very early).  

Congratulations:  Skip Miller on joining New York Common Fund as Director of Real Estate Investing.

Quote of the week:  When one door of happiness closes, another opens but often we look so long at the closed door that we do not see the one which has opened for us.

On the road...

Aug. 20-Sept. 5:  New York which is my new home base.
Sept. 6: Ithaca, NY-Cornell University:  Careers in Real Estate:  Connecting the Dots discussion with students.
Sept. 13:  Los Angeles to moderate the Real Capital Analytics (RCA) breakfast briefing.
Sept. 14:  San Francisco to moderate the RCA breakfast briefing.
Sept. 17-19:  New York
Sept. 21:  Boston to moderate the RCA breakfast briefing.
Sept. 25-28:  New York
Oct. 3-5:  Amsterdam for the first Dutch-U.S. Real Estate Trade Mission (Invitation only).
Oct. 8-12:  New York
Oct. 14-16:  Chicago to attend the NAREIM Fall Executive Meeting.
Oct. 17:  Chicago-DePaul University: Careers in Real Estate:  Connecting the Dots discussion with students.
Oct. 18:  Chicago-University of Chicago: Careers in Real Estate:  Connecting the Dots discussion with students.
Oct. 19:  Still in Chicago for client and prospective client meetings.
Oct. 22-24:  Los Angeles to attend the PREA conference.
Oct. 25-26:  Amsterdam to attend and moderate a panel at the PERE Global Investor Forum
Nov. 5-6:  New York
Nov. 7:  Washington, DC-Johns Hopkins University: Careers in Real Estate:  Connecting the Dots discussion with students.
Nov. 8-9:  New York to attend and chair the PERE Forum.
Jan. 23-25, 2013:  Laguna Beach, CA (Montage Hotel) to attend the 10th Annual IMN Winter Forum on Real Estate Opportunity & Private Fund Investing.

Music News: Our New CD, "Wait for Me" is now available on iTunes (search 'felix wait for me').  Thanks.

NEW: Dutch/U.S. Real Estate Trade Mission / RCA Global Capital Trends / True Joy / The Busy Trap / Moving to NYC

Exciting News:  I'm proud to announce the launch of the first Dutch/U.S. Real Estate Trade Mission.  The Felix Consulting Group in partnership with NCH (The Netherlands largest private trade and investment promotion council) and Zien-Branding will hold this private, invitation-only event in Amsterdam on October 3-5, 2012.  No more than 20 U.S. real estate companies will be sanctioned to attend this gathering where, among other benefits, they will enjoy private meetings with each of 10 Dutch capital sources.  This event was created because there is great interest from Dutch investors in U.S. real estate today. The organizers will provide a complete concierge service designed to maximize the time for both groups to get to know each other better and understand the opportunities to invest in U.S. real estate.  Invitations will go out early next week to the U.S. firms who have been hand-picked to participate based on a stringent set of criteria.  

The opening paragraph from RCA's Global Capital Trends:  Mid-Year Review published this past Wednesday:

Global transaction volumes for property increased slightly in Q2 over Q1 to total $157.0. Year-overyear, the global transaction market has slowed for three consecutive quarters and so far in 2012, both Q1 and Q2 registered 23 declines. However, while the Q1 decline resulted primarily from a sharp slowing in sales of China development sites, the Q2 decline represents a more widespread slowing across most property types and geographies. In Q2 compared to a year earlier, volumes in EMEA fell 28 while Asia Pac and the Americas were both off 21.

Reading further into the report, the only property type that showed positive is....you guessed it....apartments!  A few other snippets:  Core investors are having to broaden their geographic scope; Sales of development sites in the UK and U.S. have rebounded; Global capital, seeking both yield and safe haven status, has reversed direction considerably and is now coming west vs. going east.  

True Joy.  At .31 of this wonderful film clip scientists are celebrating the successful Mars landing early last Monday morning of NASA's Mars science rover, Curiosity.   It's great to see a team, who worked long and hard on this project, spontaneously erupt in happiness and caught on camera.  Doesn't seeing them make you feel good?  

I found these "Qualities" on an investment advisors website last week and thought they were brilliant in their simplicity, directness and ability to convey both their philosophy and culture and wanted to share it with you.  Less is always more!

Excellence

We constantly strive for excellence, especially with regard to performance, client relations, and how we do our job. 

Calculated Risk-Taking

We take calculated risks – when prudent – as a condition of winning. 

Responsibility

We place the highest importance on our responsibility to our clients, to each other, and to building for the future. 

Something Better

We strive to be unique, to set the standards for others, and to demonstrate our ability to sustain and grow.

An article this week about the grand re-opening of the legendary music venue, Capitol Theatre in Port Chester, New York brought back one vivid memory.  Three of us went there to see the band Traffic perform.  The show was great and, in no hurry to get back to New Jersey we decided to hang around what we believed to be the door that the band exited from after the show.  There were only a few people there as the band came out.  Steve Winwood, Jim Capaldi, Chris Wood...Traffic.  Just standing there a few feet away from us.  Stevie was much smaller and slighter than I had ever imagined.  I don't recall if there was any conversation, other than perhaps a nod of hello or perhaps a "Great show, man."  

The Busy Trap.  A good friend sent me a link to this article along with this excerpt: "I’ve always understood that the best investment of my limited time on earth was to spend it with people I love. I suppose it’s possible I’ll lie on my deathbed regretting that I didn’t work harder and say everything I had to say, but I think what I’ll really wish is that I could have one more beer with Chris, another long talk with Megan, one last good hard laugh with Boyd. Life is too short to be busy." Yes, this totally resonates with me and I first was exposed to this in the book Type A Behavior and Your Heart. (Type A personality:  Two main characteristics:  Free-floating hostility (Everything makes him angry) and time urgency (Someone who lives his life by a stopwatch rather than a calendar).  

Springsteen at 62.  There's a great piece in The New Yorker magazine of July 30, 2012.  A couple of quotes from Bruce:

• "For an adult, the world is constantly trying to clamp down on itself.  Routine, responsibility, decay of institutions, corruption:  this is all the world closing in.  Music, when it's really great, pries that shit back open and lets people back in, it lets light in, and air in, and energy in, and sends people home with that and sends me back to the hotel with it.  People carry that with them sometimes for a very long period of time."
• "We hope to send people out of the building we play in with a slightly more enhanced sense of what their options might be, emotionally, maybe communally.  You empower them a little bit, they empower you.  It's all a battle against the futility and the existential loneliness!  It may be that we are all huddled together around the fire and trying to fight off that sense of the inevitable.  That's what we do for one another."

Award-winning pizza of the week:  Maria's, 1591 Division Street, Morris, IL (26 miles west of Joliet). 

NYC Subway Artist

Congratulations:  

Paige Mueller who has joined RCLCO as Director of Institutional Real Estate Advisory Services.  

Justin Mallis who is joining The Bogdahn Group

Zack Fox who is leaving SNL for an investigative journalism fellowship at Harvard to explore the efficacy of bond-financed affordable housing projects.

This week I drove from Napa to relocate to New York. When you spend almost six days in a car by yourself you can only do a few things:  drive, think, listen to music, play the drums on your steering wheel (For men only?) and think some more.  Have you ever experienced this:  you hear a song you've listened to for years but now it takes on new meaning depending on what is going on in your life at the time?  Here's one, "When You Love Someone" by Bryan Adams that brought tears to my eyes...not a good thing when you're going 82 MPH and you forgot to bring tissues.  

On the road...

Aug. 13-Sept. 5:  New York.

Sept. 6: Ithaca, NY-Cornell University:  Careers in Real Estate:  Connecting the Dots discussion with students.

Sept. 13:  Los Angeles to moderate the Real Capital Analytics (RCA) breakfast briefing.

Sept. 14:  San Francisco to moderate the RCA breakfast briefing.

Sept. 17-19:  New York

Sept. 21:  Boston to moderate the RCA breakfast briefing.

Sept. 25-28:  New York

Oct. 3-5:  Amsterdam for the first Dutch-U.S. Commercial Real Estate Trade Mission (Invitation only).

Oct. 8-12:  New York

Oct. 14-16:  Chicago to attend the NAREIM Fall Executive Meeting.

Oct. 17:  Chicago-DePaul University: Careers in Real Estate:  Connecting the Dots discussion with students.

Oct. 18:  Chicago-University of Chicago: Careers in Real Estate:  Connecting the Dots discussion with students.

Oct. 19:  Still in Chicago for client and prospective client meetings.

Oct. 22-24:  Los Angeles to attend the PREA conference.

Oct. 31:  Seattle, WA-University of Washington: Careers in Real Estate:  Connecting the Dots discussion with students.

Nov. 5-6:  New York

Nov. 7:  Washington, DC-Johns Hopkins University: Careers in Real Estate:  Connecting the Dots discussion with students.

Nov. 8-9:  New York to attend and chair the PERE Forum.

How to Raise Institutional Capital / Research Jobs? / "The Mentors"

"How do we get some of that there pension fund money?"  This question has been posed to me many, many times.  Often the source is a successful regional real estate company, with a great story and track record, but that has never raised institutional capital or at most for a one-off deal.  Some of these companies have hired me to conduct a unique training session, "How to Raise Institutional Capital-A One-Day Soup-to-Nuts Introduction."  When the day is over, my client's reaction sometimes resembles,"It can't possibly take that long to raise an institutional fund, could it?" or "Boy, I'm really going to have to make a considerable investment in our reporting, compliance and risk management capabilities."  And, sometimes, they decide, "It's not worth it."  But I remind them that all the successful real estate investment managers started in the same place, more or less, and perhaps it's only a question of patience (Warning:  Serious amount of patience required, learning to accept rejection, realizing that things will not go according to your timeline and how long it takes to develop trust to the point that an institutional investor, and/or their consultant, will endorse you).  However, once you are accepted 'in the club' you have to do something get yourself thrown out.  So, maybe it is worth it!


This leads to another thought about what I believe we're going to see more of:  managers going out of business or merging (if they can get past the money aspect of what they believe their firm and they are worth).  All this basically brings us to one word:  change is afoot.  Lots of it.  And with change comes possibilities; possibilities for our companies and for ourselves.  This is not a time to be faint of heart.  We are at an inflection point and we can seize the day....if we dare to.  


Notice:  The Association of Real Estate Research Professionals, a 1000+ member group on Linkedin.com, wants to identify real estate research positions for their members.  If your firm is seeking someone with that experience (all levels) please let me know and I'll post it to the group.  Thanks.

My fall tour of university real estate programs is really coming together.  The title of my discussion with the students is, "Careers in Real Estate: Connecting the Dots." As I prepare, I'm going to use my own career as a starting point:  The job, The connecting of the dots (how I got the job) and what I learned there.  The learning part is technical learning but rather what I learned about people and about myself.  And, just like on the last college tour, I know we will all be learning from each other.  

People who are thinking:  In Asheville, NC visiting my son and his sons this week, we went to a place called "The Tree House:  A Cafe at Play."  It's a very cool idea and the only one in the U.S. (for now, anyway).  It's got an indoor treehouse and is chock full of educational toys.  In one section are a bunch of tables (the cafe) where parents (and their children if they must) can hang out, have a snack, work on their computer (shame on them), etc.  One of the very cool features is that you can order really good food that is "delivered" by a restaurant next door!  There are lot of other services that they offer like art classes, music classes and yoga for kids.  There's also a drop-off service (ages 12 months-8 years) for when a parent needs to leave their child for a bit and run some errands (or just needs some time for themselves!). Anyway, it's great to see people thinking differently and filling a need (for both the kids and their parents).  

Driving from my home in Napa Valley to southern California yesterday the diversity of the landscape allows this conclusion: each of us plays a part in the success of others.

Just as the farmer in Modesto needs workers to provide food for our tables, the analyst just beginning their career needs someone to provide guidance so they can provide food for their "table".  Each successive rung on the ladder has a similar characteristic to it.

As I continued the drive it became clearer to me that for our industry to grow there needs to be a forum for the knowledge and wisdom of a senior industry professional to be shared with younger professionals....tomorrow's industry leaders. 

So it is with great pride and excitement to announce that The Felix Consulting Group is launching an on-going series of regional events called, The Mentors.  This is something that has been on my 'to-launch' list for many years.  Stay tuned for the details. 

On the road....


Aug. 13-17:  New York for a client coaching session and meetings with prospective clients.


Sept. 3-7:  New York


Sept. 13:  Los Angeles to moderate the RCA Breakfast Briefing and introduction of their newest product.


Sept. 14:  San Francisco to moderate the RCA Breakfast Briefing and the introduction of their newest product.


Sept. 21:  Boston to moderate the RCA Breakfast Briefing and the introduction of their newest product. 


Sept. 6:  Ithaca, NY-Cornell University:  Careers in Real Estate-Connecting the Dots discussion with students and their advisors.
  
Sept. 18-19:  Chicago to attend the NAREIM H.R Council Meeting


Oct. 3-5:  Amsterdam for the launch of a very special industry event (Announcement coming next week). 

Oct. 14-16:  Chicago to attend the NAREIM Fall Executive meeting.

Oct. 14-16:  Chicago to attend the NAREIM Fall 

Oct. 17:  DePaul University:  Careers in Real Estate: Connecting the Dots 
discussion with students

Oct. 18:  University of Chicago/Booth:  Careers in Real Estate: Connecting the Dots discussion with students.

Oct. 19:  Chicago for meetings with prospective clients.

Oct. 22-24:  Los Angeles to attend the PREA conference

Oct. 31:  Seattle, WA-University of Washington-Runstad Center for Real Estate Studies-Careers in Real Estate: Connecting the Dots discussion with students and other meetings.

Nov. 7:  Washington, DC-Johns Hopkins University:  Careers in Real Estate: Connecting the Dots discussion with students. 

Nov. 8-9:  New York to attend and serve as chair at the PERE Forum



P.S.  Thanks to my long-time friend, Michael Kalmonson who acted as a sounding board for some parts of this week's column.

RCA Mid-Year Reports / Stress / A Deluxe Apartment in the Sky

RCA this week released it's U.S. Capital Trends Mid-Year Reports.  Here's what RCA says about transaction volume:

• Apartment:  Second highest quarter since 2007.  But year over year increases in transactions are slowing.
• Office:  Slight gain from prior quarter but off 10% compared to a year ago.
• Hotel:  Slowed for the third consecutive quarter.
• Industrial: Excluding an outlier deal, activity in Q2 was up 17%.  Flex properties have registered stronger gains than the warehouse sector.  
• Retail: Excluding entity transactions, activity increased 56% in Q2.

Standout markets across all property types include: Seattle, WA;  San Jose, CA;  and Austin, TX.  Other markets which appear to be gaining favor are:  Charlotte, Miami, Baltimore and Nashville. 

14 years ago I moved from New Jersey to California to take a new job. Shortly after getting there I started to get excruciating pains in my right side.  I went to a doctor who sent me for a bunch of tests (during one they forgot to strap me onto the table and when it raised, I fell, hitting my head and almost creating a real problem).  But all the tests were negative.  After getting the results, the doctor, a new one for me having just moved, asked, "Have you ever heard of stress?"  I felt like saying, "Everybody has." But instead I courteously said, "Yes."  He said that after telling me that within the past six months or so I had:  gotten married, moved cross-country and started a new job, the pain on my side was likely just stress-related from all the major things that I'd experienced recently.  I don't remember if the pain stopped as I left his office but it stopped shortly thereafter.  As I travel around I'm both observing behavior that suggests more and more people are feeling more and more stress and from hearing from people who clearly state that 'it ain't easy out there.'  

My generation grew up believing that things would get better each year.  Perhaps we weren't the only ones.  I believed it and in 1987-91 got myself into financial trouble regarding a house because I overextended myself believing that I would make more money each succeeding year.  But that didn't happen and I learned a valuable lesson.  Today, we're still a long way from recovering from many people overextending themselves.  In addition, we've got a situation where lots of people are out of work, some with little or no prospects and others taking jobs well below their ability and experience, just to pay the bills. Also, I believe that the stress we're experiencing (the "we" is probably the entire developed world in one way or another) manifests itself in the growing rudeness and lack of consideration people are showing to one another.  It's sad.  If we lose our civility toward one another we are creating an environment that far exceeds anything the "Me" generation ever believed.  Yes, we're stressed, but showing kindness to one another could be a positive that comes out of the negative.  We need to find something to believe in and, right now, it just may be each other.  

Comment from an OTR reader about my recent observation:  "It really is sad to see people so engrossed by technology. I’m amazed at how many young mothers walk around with their children while talking on the telephone.  I’m sure that they tell everyone that they just spent a few hours with their child.  How great that would be if true."  

Seems our timing is serendipitous as on Wednesday there was an article in the paper titled, "Silicon Valley Says Step Away From The Device." One Facebook exec offered a warning:  log off once in a while and put them down.  "In a place where technology is seen as an all-powerful answer, it is increasingly being seen as too powerful, even addicitve.  The concern, voiced in conferences and in recent interviews with many top executives of technology companies, is that the lure of constant stimulation-the pervasive demand of pings, rings and updates-is creating a profound physical craving that can hurt productivity and personal interactions."  OMG, and here I thought it would be years before I'd read something like this. You guys know my feelings but it'll take more than just this article to get people taking action and reducing their dependence on "constant techaction" (vs. human interaction) with each other.  Now with young grand children in my family it'll be interesting to see how their parents (i.e. my sons and their wives) handle this challenge.  

Congratulations:

• Marty Reid, Executive Vice President and CFO Chambers Street Properties 
• Jason Chiang joined the investment team at Madison International Realty

RetailMLS.com has launched it's new blog called The Retail Report.  

"A Deluxe Apartment In The Sky." I stayed in an incredible vacation rental apartment this past week.  Walking in you're immediately struck with an absolutely insane view through the floor to ceiling windows looking south and east from midtown Manhattan.  It was almost surreal.  And, the 'night light' that woke me up during the middle of one night was actually the glow from...the Empire State Building!  If you or someone you know is looking for a special place to stay in New York I strongly suggest you check this out. 

Looking Southeast

My personal nightlight

Restaurant of the week:  Degustation Wine & Tasting Bar, 239 E. 5th Street, New York (212) 979.1012.  When you walk by a restaurant and don't see any customers it gives pause.  But for some reason, when I peeked into the tiny window last Sunday night I thought, "Hey, this looks cool."  More than cool, when my friend met me, he said that this was one of the hot new places in NYC and that he had wanted to try it too.  We had a great meal; small plates; each one hand-crafted right in front of your eyes.  But make a reservation.  It was only empty because it was the first Sunday night that they were open for dinner.

The Felix Consulting Group:  Case Study

Client:  Opportunity Fund

Assignment:  Presentation skills coaching

Solution:  Staged a 'role play' session at the client's office (boy, was this fun for me!).  

Their goal:  Introduce their firm and pitch a product.

The Result:  Feedback from the client was excellent.  They have asked me to personally coach some of these individuals.

The Felix Consulting Group

If your company is at an inflection point contact me for a free phone consultation to determine if we should be working together.  

On the road...

July 30-31: Asheville, NC

Aug. 2-3:  Greater Los Angeles Area

Sept. 3-11:  New York

Sept. 6-7:  Ithaca, NY for my Careers in Real Estate-Connecting the Dots discussion with students at Cornell University.

Sept. 13:  Los Angeles to host an event for one of my clients.

Sept. 14:  San Francisco to host an event for one of my clients.

Sept. 16-18:  Chicago to attend NAREIM's Legal & Compliance Meeting and Human Resources Roundtable

Sept. 21:  Boston to host an event  for one of my clients.

Oct. 3-5:  Amsterdam for the launch of a very special event which I will be announcing shortly.

Oct. 14-16:  Chicago to attend the NAREIM Fall Executive Meeting

Oct. 17:  Chicago for my Careers in Real Estate-Connecting the Dots discussion with students at DePaul University.

Oct. 18:  Chicago for my Careers in Real Estate-Connecting the Dots discussion with students at the University of Chicago.

Oct. 22-24:  Los Angeles to attend the PREA Conference

Oct. 25:  Portland, OR for my Careers in Real Estate-Connecting the Dots discussion with students at Portland State University.

Oct. 26:  Portland, OR to facilitate a senior team strategy session with a company at an inflection point.

Nov. 7: Washington, DC for my Careers in Real Estate-Connecting the Dots discussion with students at Johns Hopkins University.

Nov. 8-9:  New York to attend & serve as chairman for the PERE Summit

New Terminology / Somewhere Over The Rainbow / New Tech Wave

"You've Got A Friend," which Carole King wrote and James Taylor had a huge hit with, has been having some significant meaning in my life lately.  As I travel around and talk with people about what I'm doing, some of you have blown me away with your interest in seeing me succeed in my consulting business.  And, while, when I was younger I didn't really take anyone's advice (because I thought I knew everything...was I the only one?), as I've gotten older I am very open to advice. Like the excerpt from the book "The Go-Giver," that I shared with you last week, "All the giving in the world won't bring success, won't create the results you want, unless you also make yourself willing and able to receive in like measure.  Because if you don't let yourself receive, you're refusing the gifts of others-and you shut down the flow."  Well people, I have been the recipient of 'the flow' of giving and it is both tremendously helpful and heart-warming.  Like any project, it's a continual work in progress, "life is an unfinishedness," as I read many years ago in a book about Type A behavior.  So, please accept my public "thank you" for your help.


While I'm on the subject of The Felix Consulting Business, here is my revised "elevator pitch" based on input from "my advisors."  


"So, Steve, what kinds of stuff are you doing?"  
1.  Moderate Senior Team Strategy Sessions
2.  Presentation Coaching/Personal Coaching
3.  Teaching people how to raise institutional capital
4.  Investor conference event enhancement and report card


Of course, there are brief case studies that go along with each of these but in testing it out in literally dozens of meetings this week, I've found that it works.  I've been able to do for myself what I've helped others do for years:  simplify their message!  

My vocabulary has been increased recently:  

• "Central Urban Core."  CBRE Econometric Advisors has taken the age-old label, CBD (Central Business District) and redefined it.  You'll be hearing more about CUC, as they call it, soon and it will have a real impact on real estate investing and site location decision making because, market by market, it expands and antiquated definition and brings it into the 21st century.  
• "Intellectual Leadership."  I'm told that it's the next step up from "Thought Leadership."
• "Executive Functioning Skills:" A set of cognitive abilities that control and regulate other abilities and behaviors.   

This week I spent time both in Boston and New York and noticed a dramatic difference about how people walk on the street.  In New York, the majority of New Yorkers are walking with their heads down, constantly looking and playing with their whatever phone/handheld device.  But not in Boston. although there is some but not to the same degree.  It struck me just how different the scene is in these two cities.  However, in thinking back to my last trip to Chicago, the people on the street, other than virtually all 'young' people, were more like Boston than New York.  But no matter where it is, it strikes me as sad all they're missing as they walk around great cities with their heads down all the time.  Oh well.  


Song of the week:  Eva Cassidy's version of "Somewhere Over The Rainbow."  It will give you chills. 


As I've reported to you, there are some terrific new commercial real estate tech companies surfacing.  I met the founder of another one last night at an industry cocktail party on the rooftop of a downtown NY building (btw, there are also a couple of things still in the garage which I'll tell you about as soon as I get permission):  


1.  RetailMLS:  A 'multiple listing service' strictly for retail properties.
2.  Compstak:  Crowd Sourced Lease Comparables
3.  Resimodel:  A web-based tool that generates institutional quality Excel models for multi-family and broken condo properties.
4.  REOL:  While one of the pioneers in the real estate technology world they continue to expand their leading edge services and products to clients (Yesterday, I got a private demo of a very cool new ap they've created).  


"Wait for Me" update:  Thanks to all of you who are telling me what your favorite song is.  Later today I'll be getting professional feedback on one of the songs, "Robot Mannequin," from someone who represents musicians and teaches songwriting skills. From the website, she has great credentials.  It costs $30 bucks so I said, "What the heck."  I also strongly believe in the concept of, "You Never Know." 


Stay tuned!


On the road...


July 23-25:  New York for a "Presentation Coaching" session with one of my clients.
July 26-31:  Asheville, NC to spend time with my grandchildren, Sean and Gavin (oh, yes, and their parents too!)
Sept. 6:  Ithaca, NY-Cornell University for a "Careers in Real Estate-Connecting the Dots" discussion with students.  
Sept. 10-12:  Paris, France to attend the GRI Europe event.
Sept. 18-19:  Chicago to attend the NAREIM H.R. Council Meeting
Oct. 3-5: Amsterdam for the launch of a very special event that I will be able to announce shortly.  
Oct. 14-16:  Chicago to attend the NAREIM Fall Executive Meeting.
Oct. 17:  Chicago for a "Careers in Real Estate-Connecting the Dots" discussion with students at DePaul University
Oct. 18:  Still in Chicago for a "Careers in Real Estate-Connecting the Dots" discussion with students at The University of Chicago
Oct. 22-24:  Los Angeles to attend the PREA Conference
Oct. 25:  Portland, Oregon for a "Careers in Real Estate-Connecting the Dots" discussion with students at Portland State University
Oct. 26: Portland, OR to moderate a senior team strategy session for a client.
Nov. 7:  Washington, DC for a "Careers in Real Estate-Connecting the Dots" discussion with students at Johns Hopkins University.
Nov. 8-9:  New York to attend the PERE Summit (Btw, both Ted Leary of Crosswater Realty Advisors and I are working closely with PERE on this event and it's exciting to see the agenda coming together).