PREA Conference / Special NY Event/ Mentorship Interview Series

"Business has always suffered from the problem of the urgent driving out the important."

The Korn Ferry Institute Briefings 

We're coming up to the 20th Annual PREA Investor  Real Estate Conference in Los Angeles on Oct. 22-24.  I've been attending PREA events since 1995 and over the years have gotten to know a number of the "regulars."  But what has been terrific is the number of new people that I've met over the years that have become industry friends and clients. In my coaching sessions about "How to Raise Institutional Capital," one of the things I suggest is which industry events to attend.  PREA fall and spring events are really 'must-attend.'  Sure, it's not going to be like going to "Cheers," where everybody knows your name, but you gotta start somewhere.  Also, you'll leave there knowing a lot more about how the pension funds and other institutional investors are thinking about real estate today.  And, for that reason alone it's worth going.  Hope to see you there.

We are way beyond the time where you can ask an audience to not use their "devices" during a presentation.  They just will not stop.  But what you can do is elevate the relevance and impact of any panel, keynote, etc. so that the audience wants to pay attention because if they don't they'll miss a good-to-great takeaway.  The Felix Consulting Group offers Event Enhancement services to help improve the attendee experience of any type event, especially annual investor conferences.  Pre-event strategy, content and people coaching and post-event "Report Card" (what went well and what could be done better next time) may be something you and I should talk about.

Some things I heard this week:  

• "Be nimble.'  Getting deals done is more complicated than ever."
• "Acceptance that things aren't going to change or get better is one of the things driving commercial real estate transactions". 
• "Development is back."
• "There is a good opportunity to buy assets at deep discount to replacement cost."
• "Some institutional investors are willing to give up return to cap leverage."
• Co-investment:  "It's funny.  We have investors that negotiate co-investment rights in their fund documents and then when we bring them a deal they say 'We're not set up for that.'  
• Club deals:  "We have to worry about creating 'Kumbaya' amongst the members of the club.
• "Social unrest is a huge risk in the world today.  It's not about keeping it down it's about understanding why they are angry."

Mentorship:  I've started lining up the first interviewees for my Commercial Real Estate Mentorship Interview and will begin publishing those interviews before the end of the year.  Yesterday, I had lunch with the guy that was my first mentor in the real estate industry, Dick Steinberg.  I worked for Dick at Mall Properties which is the diversified real estate developer/owner/operator owned by Mort Olshan.  Dick taught me a lot; about dealing fairly with tenants, about negotiating deals and about how to evaluate a deal that seemed 'too good to be true."    He has also been a friend and confident for many years.  My mentorship program is designed to help people connect and perhaps begin a mentor/mentee relationship like the one Dick and I have enjoyed for a long, long time.  Also, in the coming months I'll be announcing the launch of a series of special events built around this passion of mine.  Stay tuned!

Special Event:  New York Drink Thing/Nov. 8 (the night in-between the two days of the PERE Forum in NY).  A bunch of industry friends will gather together for a drink (buy your own but I supply the famous Joe G pizza!).  Hope to see you there.  Bring an friend!

When:  November 8, 2012

Time:    Starting from 6:30pm

Where:  Joe G Restaurant 

              244 W. 56th (bet. B'way and 8th/ downstairs at the DaVinci Hotel).

Passion and enthusiasm is what differentiates people who make presentations, give speeches, etc.  The other night, I had a chance to hear Professor Bill Wheaton, MIT Department of Economics and Urban Studies and Planning and, who along with Ray Torto, founded what is now called CBRE Econometrics.  Bill is so darn passionate about what he talks about, it's contagious.   

Jobs.

• Met Life is looking for a senior person to assist with Research responsibilities as well as oversee Valuations.  Here's the link.
• British Columbia Investment Management Corporation is looking for a Director of Real Estate Strategy and Research to build in-house capabilities.  Here's the link.

Thanks to all of you who have wished-me-well and those who have welcomed me to New York.  Having grown up here, it feels like home.  I'm comfortable with the city and the people.  Having friends who care about me is a special thing. I printed out this 'poster' called The Holstee Manifesto" and read it every morning before I leave the apartment.  It's such a great thing that, even though I may have already shared it with you,  please indulge me:

This is your LIFE.  Do what you love and do it often.  If you don't like something, change it.  If you don't like your job, quit.  If you don't have enough time, stop watching TV.  If you are looking for the love of your life, stop; they will be waiting for you when you start doing things you love.  Stop over-analyzing.  Life is simple. All emotions are beautiful.  When you eat, appreciate every last bite.  Open your mind, arms and heart to new things and people, we are united in our differences.  Ask the next person you see what their passion is, and share your inspiring dream with them.  Travel often; getting lost will help you find yourself.  Some opportunities only come once, seize them.  Life is about the people you meet and the things you create with them.  So go out and start creating.  Life is short.  Live your dream and wear your passion.  

On the road....

Oct. 9:  The Bitter End, New York to see Shannon Corey (I met here a number of years back when I bought a Yamaha digital piano from her off Craig's list.  She's a really talented singer/songwriter)
Oct. 14-16:  Chicago to attend and moderate a panel at the NAREIM Fall Executive Meetings.
Oct. 17:  DePaul University, Chicago for a keynote I call: Careers in Real Estate-Connecting the Dots
Oct. 18:  The University of Chicago for my "Careers...." keynote
Oct. 21-24:  Los Angeles for the PREA Conference
Oct. 25-26:  Amsterdam to attend and moderate a panel at the PERE Global Investor Forum
Nov. 7:  Washington, DC for my "Careers...." keynote at Johns Hopkins University
Nov. 8-9:  New York for the PERE Summit where I'll both moderate a panel and serve as the Chair for Day 2.
Nov. 8:  The Felix Consulting Group "Drink Thing."  Please join me and a bunch of your industry friends for a 'buy-your-own drink' get-together (I will supply the famous Joe G pizza).  Joe G Restaurant, 244 W. 56th Street (Bet. B'way and 8th)...downstairs in the DaVinci Hotel.


Steve Felix
Managing Partner
The Felix Consulting Group
A Global Collective of Experts in Real Estate

LP Comments / End of the Quarter / RCA Capital Trends / Jimmy Durante Sings

First up is some feedback I got in response to something in last week's OTR.  This comes from a highly-regarded institutional investor:

On your comments about how to get LPs over the line and get that close, I would add:  Get some deals done (with GP capital that will get transferred into the funds) so that people have something tangible to buy into, make the penalty for late entry meaningful (I only know of one fund that forces late entrants to pay more than the 6-8% penalty); provide meaningful incentives to first close participants; close off catch up (Blackstone does this), at some point in the future, new LPs do not get to participate in the old deals, they only participate in the deals done after their entry (this assumes that early deals in a funds' life tend to capture the early trends and get best returns which regularly is the case).  

I'm happy to publish any additional comments on this subject.

September 30, 2012.  For some, it's a time to look to see if they've "made their numbers."  To others it's the end of the third quarter of a year that has, for me anyway, simply flown by.  Retailers are not only displaying Halloween stuff but Christmas as well! Give me a break.  What's the hurry?

In the real estate business, deal-makers start turning up the heat around this time as well:  owners who have listed properties for sale want to see action before year-end.  Investors, for tax and other reasons, may want or need to invest money before the Swarovski crystal ball drops over Times Square in New York, to be witnessed by goodness knows how many revelers.  In the New York City market, the investment sales brokerage business has been going through a very interesting time.  New firms entering the market, "poaching" as it were, top producers and teams from other firms.  The competition has never been fiercer and, from what I hear, it's not over yet.  

But, moreso, perhaps turning the page of your diary and seeing that Monday is October 1, gives you pause, perhaps reflection.  Have I at least made progress towards the goals that I had set for myself or my business at the beginning of this year?  How about personal development-have I learned new things that will help me be a better me? A better consultant? A better friend?  Have I used my time wisely?  Have I taken time out for myself, to have fun, to enjoy life?  Some of these may seem like daunting questions but it's not a matter of how much of anything you did, it's that you either did it at all, or started to do it.  And we need to pat ourselves on the back every once in a while; we can't expect that others will do it but when they do, it sure feels good.  This hold especially true for parents with their children:  don't take their accomplishments for granted.  Make sure you congratulate them for a job well done.  Building self-esteem in a human being starts very, very early.  

Real Capital Analytics released their August 2012 US Capital Trends Reports this week.  They also made this announcement:  In October, RCA will launch a suite of over 160 property price indices based on the same data and methodology used in Moody’s/RCA CPPI (Commercial Property Price Index).  

With RCA's  kind permission I offer you some of their insight:

Office:  Sales of significant office properties totaled $5.3b in August, slightly below June and July levels but 6% higher than a year ago.

Industrial:  Sales of significant industrial properties totaled $2.3b in August, marking a rise from July but a small decline from a year ago.

Retail:  Sales of significant retail properties totaled $2.7b in August, marking a rise from July and a small gain from a year ago.

Apartments:  Sales of significant apartment properties totaled $6.4b in August, rivaling May and June as the most active month this year.

Hotels:  Sales of significant hotel properties totaled $1.1b in August, marking one of the lightest months this year and the largest yoy decline in sales – down 63%. Similar trends were evident in both the full and limited-service sectors.

JOB POSTING:  The San Francisco Employees Retirement System (SFERS) has both private equity and real estate analyst positions available and this single posting is designed to 'attract' both types of candidates.  

Congrats: 

• Scott Arden who recently joined Triton Pacific as their man in New York.

On my iPod I have a wide range of songs.  I have two "Walk" playlists for the walks to and from the train station.  But yesterday I listened to a few tracks for the first time in a while.  They are from an album by Jimmy Durante, a name not known to many of you.  It's a compilation of some of the greatest "standards" ever written and I encourage you to check them out and expose others to them.  These are songs that have already stood the test of time of several generations.  You don't hear them played too much but...well, see for yourself:

I'll Be Seeing You

Young At Heart

September Song

Big News:  The Felix Consulting Group proudly announces our "Mentorship Interview Series."  Starting soon, I'll be posting interviews with people who have made a difference, a significant contribution to the commercial real estate industry.  Each person will be asked the same questions, the answers to which will be helpful to younger people, on their way up.  It's all about "Learning, Growing & Connecting." This is something I've been working on for a long time and I'm very excited about it.  Stay tuned.

Just so you get an idea, here is a sample of some of the questions that I may be asking each interviewee:

1. How did you learn what you needed to know to be successful in the CRE industry?  
2. Who have been your mentors and how did they most help you?
3. What advice were you given along the way that was most meaningful?
4. How has the industry changed and if you were starting your commercial real estate career now, given what you know, what might you do differently?
5. What advice can you offer to people interested in a commercial real estate career or in advancing in the industry?

On the road...

Oct. 3:  Kirkland & Ellis Real Estate Symposium in New York

Oct. 9:  The Bitter End in New York to see Shannon Corey perform

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

Oct. 17:  Depaul University, Chicago for my "Careers in Real Estate:  Connecting the Dots keynote.

Oct. 18:  University of Chicago for the same thing.

Oct. 22-24:  Los Angeles for the 20th Annual PREA Investor Real Estate Conference

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

Nov. 7:  Washington, DC for my "Careers..." discussion with students at Johns Hopkins University

Nov. 8 & 9:  Attending, moderating a panel and serving as "Chair" for Day Two of the PERE Forum

Thanks to the DaVinci Hotel in New York for allowing me to use their computer to post this column.  

On Being Considerate / How to Raise Institutional Capital / The Lenox Hotel / Wear Your Music

Some friends of mine are seriously under consideration for new jobs.  And while each situation is unique the common thread seems to be how long it's taking for the employer to make a decision.  

When it comes to someone waiting to hear from a prospective employer (or recruiter), where there seems to be sincere interest (i.e. multiple interviews, asking someone to do a case study, etc.) I emplore you to put yourself in the shoes of the candidate and show consideration-keep them in the loop and, if it's decided that they are not the chosen one, tell them as soon as possible.  What if it was you?

"Why is it taking so long to get commitments?  When can we expect to have our first closing?  Isn't so-and-so having more success than us? What's the problem?"  To my fellow capital raisers out there-I bet you've never heard that from your boss, right?  

Don't take it personally; it's not about you.  It's about what is going on in the meeting rooms at the pension funds, endowments, foundations, consultants, rich people, very rich people, family offices, wealth management businesses, fund of funds and sovereign wealth funds (did I forget anyone?).  It's about them needing to be really, really sure that investing with you is better than, say, their money market account.  And, they're concerned about both the "now" and the "then." (I can't help inserting this piece of script from the movie Spaceballs): 

Dark Helmet: What the Hell am I looking at?! When does this happen in the movie?!

Col. Sandurz: Now! You're looking at "now," sir. Everything that happens now is happening "now."

Dark Helmet: What happened to "then?"

Col. Sandurz: We passed it.

Dark Helmet: When?

Col. Sandurz: Just now. We're at now "now."

Dark Helmet: Go back to "then."

Col. Sandurz: When?

Dark Helmet: Now.

Col. Sandurz: Now?!

Dark Helmet: Now!

Col. Sandurz: I can't.

Dark Helmet: Why?

Col. Sandurz: We missed it.

Dark Helmet: When?

Col. Sandurz: Just now.

Dark Helmet: When will "then" be "now?"

Col. Sandurz: Soon.


The "now" for your investors is current cash flow and the "then" is the 'pop' they will get when the property is sold. 

I coach my clients to never forget to put yourself in the shoes of the person across the table from them.  In addition to the other interpersonal skills necessary to be a good capital "closer" you need understanding, empathy and compassion and these traits may be needed now now than ever before.

Are there certain techniques that can be employed to hustle the process along?  Not any more.  But, if you are patient and asuming you have:

• A good reputation
• The right team
• A good demonstratable track record
• A smart strategy
• Ability to execute
• Some other investors committed 
• Willingness to commit a meaningful amount of capital yourselves
• Endorsement from one or more key consulting firms
• Belong to the right 'club'

then, you have a fighting chance.

Advertisement:  "How To Raise Institutional Capital:  Soup to Nuts in One-Day" is a service offered by The Felix Consulting Group to (a) prepare you to raise institutional capital for the first time and (b) re-educate experienced investment managers that the world has changed and they need to change as well.  

Call me.  +1 707.260.4233.  Let's spend some time on the phone.  Tell me your story and together we'll be able to determine how you can benefit from us working together.


Cyndi Lauper story: Musician/Actress/Professional Wrestler Cyndi Lauper just had her memoirs published.  I went to her book signing event the other night; but I went with an ulterior motive.  One of my songs, "I'm Just A New York City Girl" is perfect for Cyndi to record and I couldn't figure out how to get it into her hands.  Well, the other night, I asked her and she said, "Give your CD to my manager" (who was standing over her right shoulder).  I did.  Hey, you never know.  I'll let you know if I hear from her.

Word of the week:  Spasibo (Russian for "Thank You.")

One of my favorite movie lines from "Let It Ride:" You may be walking around lucky and not even know it!

"Wear Your Music" turns old guitar strings  into handcrafted charity bracelets.  100% of the net profit goes to the charity of the artist's choice.  Launched in 2006, some of the artists who have contributed guitar strings are Carlos Santana, Bonnie Raitt, Metallica and John Mayer.  Last year the company donated $60,000 to such charities as Rock Camp for Girls-LA and the Rhythm and Blues Foundation-Doc Pomus (If you're not familiar with Doc please look him up!). Bracelet prices range from $100-250.  Very cool don't you think? 

Most excellent customer service experience in quite a while:  Lenox Hotel, Boston. Yesterday, I asked if they had a piano tucked away somewhere (I don't have a piano yet where I'm living).  They said, "Yes, we can bring it out to you!" So, in a few minutes, from some back room, came a nice Kawai upright into the meeting room where we're holding the RCA Breakfast Briefing this morning.  I played for several hours, going through my 'piano bar' set but also came up with a second verse to a song called "I Just Wanted to Get You to Love Me Again," which I've been working on for a few years. This is my first stay at The Lenox.  The staff here is sincerely friendly.  I will be back.


On the road (and other things)....
Sept. 25:  Benjamin & Edie's First Birthday (my grandchildren who were born at 2.5 pounds, who are doing just fine and who had their first b'day party last week at a neighborhood bar in Brooklyn!)
Oct. 3:  Kirkland & Ellis Real Estate Symposium, New York
Oct. 9:  The Bitter End in New York to see Shannon Corey perform.  I bought a digital piano from her some years back via Craigslist and have been a fan ever since.  
Oct. 14-16:  Chicago to attend and moderate a panel at the NAREIM (National Association of Real Estate Investment Managers) Fall Executive Meetings.
Oct. 17:  DePaul University, Chicago for the second stop on my road show of U.S. university real estate programs talking about: Careers in Real Estate-Connecting The Dots.
Oct. 18:  University of Chicago for the "Careers...." discussion
Oct. 22-24:  Los Angeles to attend the 22nd Annual PREA Investor Real Estate Conference
Oct. 25-26:  Amsterdam to attend and moderate a panel at the PERE Global Investor Forum
(t) Oct. 29-Nov.2:  The Netherlands to meet with Dutch capital sources and discuss my Dutch/U.S. Real Estate Trade Mission now scheduled for 1Q2013.  Stay tuned.
Nov. 7:  Johns Hopkins University, Washington, DC for my "Careers...." discussion with students.
Nov. 8-9:  PERE Forum, New York where I will both moderate a panel and act as the 'chair' for Day 2. Maybe we should have a group drink on the night of Nov. 8.  Let me know if you plan to be at the event and/or in New York.

Sept 11 / R.E. Job Scene / The Dave Matthews Band

On September 11, 2001 I was driving to my office in California when the phone rang.  It was my wife.  "Your father called.  He wanted to know where you were."  I asked why and she said he had heard there had been some type of plane crash in New York.  I turned on the radio and heard a reporter say that a plane had flown into the, "World Trade Center tower."  I believe most New Yorkers would assume what I did:  that the plane had hit the radio tower that extended high above the roof of the buildings.  But when I got to the office, I learned quickly that I was very wrong.

Very early Wednesday morning.  It's my first airplane trip since moving to New York and I got up especially early as I was driving to the airport and parking in a lot that I had never used before.   On the way, the drawbridge was up and sitting there, with my sunroof open, I looked up at the pitch-black sky with a relatively new moon and it's North Star companion (how many miles separate them?) proudly announcing their presence.  Out my window, looking at the far off City of New York I saw a single beacon of light emminating from what I believe must have been the site of the former World Trade Center, reaching up to the sky, seemingly to touch the hands of those who were taken away so abruptly 11 years ago and letting them know they had not been forgotten. 


Yesterday I hosted the first of three Breakfast Briefings for Real Capital Analytics (RCA) in Los Angeles (in a few hours the event in San Francisco will begin). It was very-well attended by a cross-section of LA area real estate executives and research professionals.  Special guest Lee Menifee, Head of Research at American Realty Advisors, provided some terrific insight into how they use various data tools in determining investment strategy and underwriting individual and/or portfolio deals.  A lively collaboration amongst Lee and members of the audience offered a window into current thinking and philosophy of real estate investing.  There is nothing better than people getting together, in a nurturing environment, and talking openly with each other about, well, things.  

It's intriguing.  So many people changing jobs or starting their own firms?  One very good thing I heard from a leading industry executive recruiter is activity in the hiring to fill junior positions.  But we also agreed that there doesn't seem to be any real pattern in what's going on.  Some of the moves may represent 'the time' decisions when someone says to themselves, "This is the time for me to do something entrepreneurial or different in my life" or "This is the time for me to make a big change."  Perhaps the latter is a change from a company the person has been with for many years and wants to see 'what's out there.'  We've all seen people leave companies, only to return a short time later.  And, while there's a theory that sometimes you have to leave a company and then return to be able to significantly elevate your position, any job/career move contains some degree of uncertainty.  If we only had some of the same analytical tools in making real estate investment decisions available to us when we're making life decisions.  Or maybe that really is what the "Magic 8 Ball" is for!

The Felix Consulting Group (FCG)update:  

After spending most of August being rather than doing I have come up with a very clear, simple and focused menu of service offerings.  FCG's "Collective of Experts in Real Estate" is growing giving us the ability to match up our serious experience with your needs.  I have been getting wonderful feedback from my clients and terrific encouragement from everyone.  Please check out the website. 

Great store of the week:  The Ink Pad, 37 Seventh Avenue @ 13th Street, New York.  A truly unique store especially if you're looking for a thoughtful, fun and different gift for someone.

I've been listening to Jackson Browne's "Late for the Sky" for a long time but just recently his lyrics have struck a personal nerve.

The words had all been spoken
And somehow the feeling still wasn't right
And still we continued on through the night
Tracing our steps from the beginning
Until they vanished into the air
Trying to understand how our lives had led us there

Looking hard into your eyes
The was nobody I'd ever known
Such an empty surprise 
To feel so alone

Now for me some words come easy
But I know that they don't mean that much
Compared with the things that are said when lovers touch
You never knew what I loved in you
I don't know what you loved in me
Maybe the picture of somebody you were hoping I might be

Awake again, I can't pretend, and I know I'm alone and close to the end of the feeling we've known
How long have I been sleeping
How long have I been drifting alone through the night
How long have I been dreaming I could make it right
If I closed my eyes and tried with all my might
To be the one you need

Awake again, I can't pretend, and I know I'm alone and close to the end of the feeling we've known 
How long have I been sleeping
How long have I been drifting alone through the night
How long have I been running for that morning flight
Through the whispered promises and the changing light
Of the bed where we both lie
Late for the sky

Marvelous exhibition:   Who Shot Rock & Roll:  A Photographic History, 1955 to the Present.  Annenberg Space for Photography, 2000 Avenue of the Stars, Los Angeles, CA (Make sure to catch the film while you're there).  Open through October 21, 2012.

Concert of the week:  Well, it's not like I get to one every week or anything like that but via a confluence of serendipitousness on Wednesday night I got to see The Dave Matthews Band at the legendary (The Beatles performed there) Hollywood Bowl.  They are a really good band.  The "Bowl" is a unique venue and, thanks to my good friend, real estate dude and Renaissance man, Jerry Katell, I  was sitting in some very splendid seats.  Dave Matthews and his band, which is really what it is, are a tight unit.  Dave is a great singer and songwriter but what I saw that impressed me most was his leadership and encouragement of his bandmates.  Most importantly, they were all having fun; so important in all our lives, perhaps more than ever.  Thanks Jerry.  

On the road...
Sept. 21:  Boston to host the RCA (Real Capital Analytics) Breakfast briefing:  Special guest panelists:  Mike Acton, Director of Research for AEW and Josh Scoville, Senior Vice President-Research at Hines.
Oct. 14-16:  Chicago to attend and moderate a panel at NAREIM's Fall Executive Meetings.
Oct. 17:  DePaul University, Chicago to deliver my "Real Estate Careers:  Connecting the Dots" keynote to students in their real estate program.
Oct. 18:  University of Chicago-Booth School of business for the "Real Estate Careers...Connecting the Dots" discussion.
Oct. 22-24:  Los Angeles for PREA's 22nd Annual Investor Real Estate Conference
Oct. 25-26:  Amsterdam to attend and moderate a panel at PERE's Global Investor Forum
Nov. 7:  Washington, DC-Johns Hopkins University for my "Careers....Connecting the Dots" talk.
Nov. 8-9:  New York to attend and chair one of the days at the PERE Summit.

The Dave Matthews Band, LA, Sept 12, 2012

When Life Serves You Lemons / Connecting the Dots at Cornell University

Here's a terrific piece that somebody sent me recently and I want to share it with you:

When Life Serves You Lemons...

Exactly a year ago, one of my best friends received an offer from a company he has worked at for 13 years. Take a drastic cut in pay or be let go. He chose the former.  After a year, we talked about the changes this decision has made in his life, and surprisingly, most have been good.

Instead of spending money at fine restaurants, he and his wife cook special meals together and eat by candlelight at home. Instead of his kids spending time in their rooms watching TV or on the computer, they spend the majority of the time in the living room, watching the one tv he now owns, as a family. Every Friday night is either game night or movie night. He rides his bike to work more often than not, and as a result, he has lost 22 pounds. He packs his lunch, which is almost always more nutritious than what he was eating before and certainly less expensive. His family spends time hiking, camping and going to parks rather than the cineplex or the arcade.

The whole family has been reading more and they were very surprised to find out that their local library also has quite the selection of DVDs.

Instead of going out to bars with friends, he invites them over for wine and dinner. He said that they actually had better conversations since they didn't have to scream over loud music. They grow their own vegetables, and I can attest, they are more delicious than anything I can get at the market.

I asked him if it's all good, he said no. He worries about the mortgage payments and college tuition for his sons. However, he said the monthly bills are more manageable now that they have changed their lifestyle.

So when I asked him what the biggest difference was since his salary got reduced, he said he was happier.

Alzheimer's Walk:  Lynn Kehoe, of ORG Portfolio Management, is a long-time good friend and industry professional.  Her sister, Nancy, is participating in a fund-raising walk to help find a cure for Alzheimer's Disease.  If you can, please donate something.  Every little bit helps.  Here's the page.  Thanks.

An amazing story and wonderful movie. "Searching for Sugar Man."  It is a tastefully done documentary about an almost unbelievable story.  I will say no more.  Please try to find it.  If it's not at or coming to a theatre near you, at least go to this website and read the story about the musician, Rodriguez.  

Contratulations

• Dietrich Heidtmann (The D-Man) who joined AXA Real Estate Investment Managers as Global Head of Investor Relations & Capital Markets based in Paris.  
• Bob Shau who is now with Aramco, the Saudi Arabian Oil Company 
• Kiran Patel has joined Cordea Savills as Chief Investment Officer 
• Scott Dwyer sho has joined Heitman as their head of European Portfolio Management
• Douglas Kinney who has joined The Carlyle Group's fund-raising team.

Yesterday, I delivered a keynote presentation to the students at Cornell University's Baker Program in Real Estate.  The talk, which I call, "Careers in Real Estate:  Connecting the Dots" was the first one in this seasons' tour.  The global diversity of the make-up of the class of first and second year graduate students fascinating and wonderful.  I love it because the only way that we're going to understand each other better is to interact one-on-one.  We are all the same.  We may look different.  We may sound different.  But we are all human beings.  That this program is not only providing a great launching pad for people's careers in real estate but also for helping bring the world closer together, one person at a time, is something to salute.  

Okay, what were the students most interested in? Well, as you would imagine, they asked me what the job market in the commercial real estate industry was like today.  I emphasized how important it was to do something to differentiate themselves from other job candidates as it's very competitive.  But I also spent time talking about getting to know yourself as each type of job in our broad and wide commercial real estate industry is more suited to certain people more than to others.  They asked me some excellent questions that gave me insight into the mind of someone who has gone back to school, in most cases, after working a few years, to get an advanced degree which they expect will enhance their career opportunities.  These are all hard-working and deep thinking young people.  I have had the privilege of meeting many bright, focused and very enthusiastic young real estate professionals who will hopefully get the break they're looking for.  In that regard, please let me know if your company has a summer internship program so I can pass post it in this space for the benefit of all the students who read this column. 

A nice welcome at Cornell University

Last Friday, after publishing OTR, I had a great day at the U.S. Open tennis tournament. I hadn't been to that event in a gazillion years.  What a spectacle!  Amazing.  But what was really cool was that the friend who invited me to join him and his wife had some very, very good seats.     Maybe you saw me on TV :-)  I had no idea that Novak Djokovic was so tall (he's 6'2") and such a great showman.  I had planned to start playing again after a bit of a layoff but watching those matches (we also got to see Maria Sharapova) I am pumped-up to find people to play with (and, lucky for me, have my first such opportunity on Sunday!).  

Dutch/U.S. Real Estate Trade Mission Update:  My Dutch partners and I have decided to delay the launch of this event.  While we have gotten some excellent interest from U.S. firms who want to meet Dutch capital sources we realized this past week that we needed more time to make sure that the first one of these is a huge success. I'll be announcing the new dates shortly.  Thanks to all of you who reached out wanting to know more about it.  

Mentorship Thing:  I am 'this close' to announcing the launch of my Mentorship Breakfast series.  Mentorship is something close to my heart and these events are designed to  bring together mentor level people together with mentee (that's a funny word isn't it?) candidates.  I have lined up sponsors in New York and Chicago to host the breakfasts.  They will be invitation-only, 10 mentors and 10 mentees.  I will be "interviewing" a prominent industry person but because it'll be a small group it'll really be more like a facilitated discussion, sharing ideas.  This is very exciting for me as bringing people together is one of my passions and no matter how many or how few years anyone has been in the industry, we can all learn from each other.  Stay tuned!

Quote of the week:  "Life is service.  The one who progresses is the one who gives his fellow man a little more, a little better service."  E.M. Statler, Hotelier.

On the road...

Sept. 13:  Los Angeles to host the RCA Breakfast Briefing.  Special guest panelist:  Lee Menifee, Managing Director-Research & Strategy at American Realty Advisors

Sept. 14:  San Francisco to host the RCA Breakfast Briefing:  Special guest panelist: Asieh Mansour, Ph.D and Head of Research (Americas) for CBRE

Sept. 21:  Boston to host the RCA Breakfast Briefing.  Special guest panelists:  Mike Acton, Director of Research for AEW and Josh Scoville, Senior Vice President-Research at Hines.

Oct. 14-16:  Chicago to attend and moderate a panel at NAREIM's Fall Executive Meetings.

Oct. 17:  DePaul University, Chicago to deliver my "Careers in Real Estate:  Connecting the Dots" keynote presentation.

Oct. 18:  University of Chicago-Booth School of Business to deliver my "Careers in Real Estate:  Connecting the Dots" keynote presentation.

Oct. 22-24:  Los Angeles for the PREA's 22nd Annual Investor Real Estate Conference

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

Nov. 7:  Washington, DC.  Johns Hopkins University to deliver my "Careers in Real Estate:  Connecting the Dots" keynote presentation.

Nov. 8-9:  New York for the PERE Summit.

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