In memory of Sherwood

My middle name is Sherwood.  It was given to me as a memorial of sorts to a second cousin that I never met.  All I know about Sherwood is that he was from Detroit, had a brother named Lincoln and died during WWII when he was probably no older than 20.  He was a bomb specialist and died when a mine he was trying to disarm blew him up.  What a way to die.  But what got me thinking about him this week was the upcoming Memorial Day weekend.  Sherwood, like many young men, enlisted in the Army after the Japanese decimated Pearl Harbor.  And, like my Dad, Sherwood and millions of other young men and women answered the call of “Uncle Sam Wants You.”  But what I was really thinking about while walking to work yesterday was how much Sherwood and so many of his generation missed.  They missed Elvis, The Beatles, a man walking on the moon, the Internet, Skype.  But they missed a lot more.  They missed a chance to grow up, to experience life, to realize their dreams.  They missed being a parent, watching your child grow up and experience their own lives and realize their own dreams.  Tens of thousands of my peers died during the Vietnam war; countless others were injured either physically or mentally (those who don’t have a holiday reminding people of their sacrifice).  So, this Monday, no matter what is going on in your life, whether it be financial stress, career related uncertainty, some pain in your shoulder that you’ve never had before and you don’t know where it could have come from, someone taking ‘your’ parking space (right in front of your very eyes), unexpected rain on a day you were planning a picnic or your flight getting delayed or cancelled.  Take a minute to think about how minor these things are in the context of the much bigger picture of life.  Appreciate all that you have rather than all you want to have and think about all the Sherwoods and others in your own family who never had a chance to kiss their child good night and have them ask, “Dad, where does the sun go at night?” or appreciate the beauty of Mother Nature on a walk through the park or to listen to  music that gets to you or watching a movie that moves you to tears.  Think about all the little things.  Those things that we all tend to take for granted because the sum of those little things is what life and dreams are all about.  

A friend who I've never met writes a blog on Simplicity.  This is something he posted this week:

The Starfish Story

One day a young was walking along the beach when he noticed an old man picking something up and gently throwing it into the ocean. Approaching the old man, he asked,“What are you doing?”

The old man replied, “Throwing starfish back into the ocean. The surf is up and the tide is going out. The sun is shining. If I don’t throw them back, they’ll die.”

The young man said, “Don’t you realize there are hundreds of miles of beach and thousands of starfish? - You can’t make a difference!”
 

After listening politely, the old man bent down, picked up another starfish, and threw it back into the surf.

Then, smiling at the young man, he said...

“I made a difference for that one.”

Movie of the week (tissues recommended):  As It Is in Heaven 

BTW:  That beautiful building last week is The Landmark Building in St. Paul, MN

These are my views and not that of my employer.

Bouncing along on the road

Anybody know where this beautiful building is located?

I used to think I was the last to know about many things but over the years have learned that while I'm not necessarily the first, I'm also not the last.  Case in point:  This week I was introduced to the Green Building Finance Consortium (GBFC).  It's a research and education initiative founded in 2006 by industry veteran, Scott Muldavin, to assist private sector investors underwrite sustainable property investments from a financial perspective.  In checking out their site I also learned that a few other industry friends are involved with GBFC.  I think their mission, to help fill the void of information, methods, and practices for the valuation and underwriting of sustainable properties, is not only commendable, it's important for the future of our industry.  And, admirably, given the critical importance of independence, GBFC has also chosen to not accept membership or financial support from green product or green building trade organizations, and limits the individual investments of any organization in the Consortium’s work. GBFC does accept support from a select group of governments, non-governmental organizations, and real estate industry companies actively involved in energy efficiency and sustainability investment.  Sustaining members include PREA, Principal Real Estate Investors, RealFoundations and ULI.   GBFC has recently published a book "Value Beyond Cost Savings" which can be purchased on their website.  But more than that, please take a look and see if you don't feel that GBFC is something you'd like to bring to the attention of your company (I'm doing the same).  Thanks.

My brother is visiting me in New York this weekend and even though we both grew up in Forest Hills, he moved away many years ago and hasn't been back in quite a while.  Walking around the city today, it was interesting how much he noticed about buildings, etc., things that I've just taken for granted, even as observant as I believe I am.  In wide-eyed amazement, we made our way through Times Square which was literally teeming with tourists on what may be the most beautiful day so far this spring.  Hanging out with him is reminding me that keeping your eyes open, no matter where you are, will allow you to absorb sites and experiences that will make an indelible impression on the film of your mind.


Apropos of some of the comments in the Hodes/Weill white paper I excerpted last week are these from RCA's Month in Review report which was published yesterday:  While the gap in price expectations has narrowed somewhat, there is now a misalignment of the types of properties buyers want versus what sellers have chosen – or been forced – to offer for sale. Sellers are keeping most distressed assets from the market, and few are willing to part with their better assets. So far, bank lenders have taken a similar approach.  The latest Moody's/REAL CPPI also reflects a market bouncing sideways along a pricing bottom, as well as mixed signals for each of the property types.  Even the anemic pace and pricing of distressed-asset sales continue to weigh on the market. The near-term negatives do not suggest a renewed downturn, but rather indicate that the robust pricing some trophy assets are commanding has not broken through to the broader market.

In addition to there being so much pent-up capital, yearning to make deals, we're part of an industry which has a pent-up need for good things to start happening.  And yet, things are going to move along at their own pace and not any faster.  I see positive things happening in terms of attitude of institutional investors to be more seriously considering allocating money to real estate again.  While a lot of interest is in core and debt (in all shapes and sizes), other strategies are starting to get some traction as investors and consultants recognize that windows of opportunity with some strategies will be open only for so long. 





These are my views and not that of my employer. 

Hodes Weill & Associates published their May 2010 Market Commentary this week. I thought there were some poignant observations which I'd like to share with you:

• The past few weeks have given rise to a discernable change in the mood. 
• Suddenly, deal flow is improving and we continue to hear that “deals are making sense.” 
• The market for stable assets with secure income is quite frothy, with anecdotes of pre-crash pricing levels and numerous competitive bidders. 
• Every day we read about assets being acquired at prices that are surprisingly high. 
• Debt is once again becoming plentiful, and unlike before, it is now available in size. 

So....

• Sounds positively rosy. So, why is there still so much uneasiness and, certainly within our shop, the sense that this renewed wave of investment and optimism defies the cold fact that most existing US portfolios held privately remain over-leveraged, undercapitalized and illiquid?
• Closer to the ground, little has improved in the real estate market.
  From the perspective of real estate pricing fundamentals, NOIs, especially in the office sector, are poised for several more years of  declines, given the overhang of space (primary or sublet) in nearly every market, and weak tenant demand. 
• While a few property types are doing better than others (multi-family, hotels) in terms of stanching the decline in revenues, even these sectors face the challenges of sluggish economic growth and reluctance by businesses and consumers to spend. And decline in NOIs is going to be met head-on by rising debt maturities over the next 12-24 months. 
• Within institutional portfolios, in particular the real estate private funds invested in the 2004-2008 time frame, we have not seen widespread improvements. 

And what about fund managers?

• As we enter the third year of this market correction, some managers may be starting to run out of steam and we believe that 2010 will be the year that these businesses will have no alternative but to evolve. 
• With little or no new capital on the horizon, human resources and other assets will have to be stretched further.  
• The overall market has not really corrected and attractive investments remain pretty scarce today. Without indications of economic growth on the horizon, the risks of investing remain very, very high. 

But....

• there are many positive steps that can be taken now to better position businesses and teams in our rapidly changing industry. 
• To the list of “R’s” that define our industry today: Re-structuring, Re-positioning and Re-capping, let’s add a few that keep with our spring theme: Rebirth and Rejuvenation. Let’s all find ways to channel our collective energy into improving our businesses and positioning for the future, and maybe worry a little less about missing deals in a highly volatile environment.

This is clearly not the entire piece and I took the liberty of extracting these items.  But what I like about this is that, firstly, it is written by some very experienced people who have been through multiple cycles and who are able to step back from the day to day challenges to take a philosophical look at the bigger picture and have a vision for the industry.  I took some time this week just to 'think' rather than to 'do'.  About how I'm doing my job, about whether we are leveraging our 'collective energy' to move our business forward and what things I might do differently.  It's been a helpful exercise for me and as the Hodes Weill paper suggests, we're in a time of Rebirth and Rejuvenation which gives us all opportunities to rethink how we're approaching business and determine the time is right to make some changes.  It's an exciting and challenging time for us all and I believe the uncertainty of things is what is making it difficult for some of us to get a good night's sleep.  But, going back to something I wrote a while back:  we can drive ourselves crazy thinking about the past; what we might have done differently, what mistakes we made, etc.  And, likewise, we can drive ourselves crazy trying to predict the future because we don't really have any control (as much as we think we do) over the future.  What we can control is what we do today, right now and this holds true for our business as well as our personal lives.  I write this to remind myself as well that this really is a very important component of life-health and when I find myself slipping, I step out of the moment and remind myself:  Even on a heavily overcast day, the sun is still there on the other side of the clouds.

Enjoy your weekend.




These are my views and not that of my employer.

The Wild Blue Yonder

This is the first OTR that I'm publishing from the great road in the sky.  Normally, I don't work on fights but rather use the time to think, to read or to write.  But today is a workday and there is a lot going on.  Hopefully, the airlines won't get even greedier and start allowing cell phone usage.  If that happens I suggest we all either take meditation classes, drugs or martial arts classes because it's going to be a war.

Whoa!  Last week's column generated a bunch of emails from you guys about jobs.  Not only did I get a number from those of you who are looking for jobs but I learned about some job openings as well.  Here are a couple of them.  If you're interested (and qualified) please send me your resume (steve@simplicate.com) and I'll forward it on:

1.  New York Metro Area.  Top producing investment sales team is looking for associate/analyst with 3 to 5 years experience, good financial skills and the ability to write offering memorandum and proposals.

2.   New York based placement agent firm is looking to hire a sales person with 5 or more years of experience – preferably someone with institutional marketing experience with real estate private equity product who is happy to be a “road warrior

If this evolves, we can use this as a networking vehicle for everyone to collaborate in helping each other in their careers.  I've heard from a few readers who would just like to get together, either on the phone or in person and I'm totally up (or as my sons used to say 'down') with that.

Here is some very positive news from the just published Global Capital Trends from RCA:

For the first quarter in more than two years, all three global zones posted increases in transactions and declines in acquisition yields in Q1. Not only is the improvement in the property investment markets in all parts of the globe significant, but also the magnitude of the improvements over the past quarter are even more impressive. 

This is good stuff and may truly offer signs that real estate is back and headed in the direction that we all have been wishing for.   More and more investors seem focused on core, or as one of my colleagues says, 'Uber Core" type properties while many have been placing their bets on all forms of distress opportunities.  Clearly, public and corporate pension funds have different styles, appetites for real estate investing and return requirements.  And that's what makes a horse race.  Some investors are still licking their wounds and evaluating which managers to put money out to.  It seems like there's less interest in cross-border investing as investors are finding there are good opportunities closer to home.  There's a real movement towards emerging managers and I believe we'll see more and more boutique investment and advisory firms hanging out their shingle as the year progresses.  We are in the midst of a seismic shift in our industry and it's not over by a long shot.  

BTW, without attempting to recap what has been going on:  What kind of crazy world are we living in?

Special Announcement:  Clowns Without Borders is a collective of nine organizations with a universal code of conduct.  Their objective is to relieve the suffering of all persons, especially children, who live in areas of crisis including conflict zones and territories in situations of emergency.  The performers that make up the Clowns Without Borders organization are volunteers from different walks of life who give up to a month of their year to go on expeditions.  They rough it, traveling with a small per diem, and staying at local guesthouses in areas where they are going to perform.  A documentary, "Send in the Clowns", by Director/Producer Sam Lee is currently in development.  Sam is a friend of my son Kevin. The Director of Photography, Laela Kilbourn; co-producers Nancy Roth and Brooke Stevens, all have strong credentials in documentaries for, among others, A&E, PBS, The Learning Channel, ABC, NBC, CBS.  In August 2009, the team went to Haiti to follow the clowns.  Just five months later the earthquake hit!  This is a very special project.  Immediate funds are needed to support a return trip to Haiti to follow the clowns this summer. They are seeking fully tax-deductible contributions and are holding a fund-raising event in New York City on May 24 between 6:30 and 9:00pm at Le Poisson Rouge, 158 Bleeker St (Bet. Sullivan and Thompson).   There will be a silent auction and a presentation by the documentary team.  But, please remember that donations of any amount add up. You can make your donation at their website.

Last night, I had the chance to experience something for the first time that is so totally cool I wanted to share it with you:

The Grand Central Whispering Gallery

"The "whispering gallery" is located on the Grand Central Terminal dining concourse near the famous Oyster Bar Restaurant.  Here, the acoustics of the low ceramic arches can cause a whisper to sound like a shout. Sound impossible? To test it out, you and a friend will have to stand in opposite corners of the large arched entryway. Now face the corner and whisper. Your friend should be able to hear your voice as if you were right next to them, not whispering into a far-away corner.  According to experts, this happens because the whisperer’s voice follows the curve of the domed ceiling. The Whispering Gallery is a popular spot for marriage proposals – and a unique place to whisper sweet nothings to your main squeeze."

Restaurant gem of the week:  Cafe Edison; 228 W. 47th Street, Between Broadway and 8th Avenue.  It's really one of those great NYC coffee shops but has a theatre like interior.

 Photo:  Sean "Budro" Felix.  11 months.

These are my views and not that of my employer.

One for the road

There have been a lot of people announcements lately, particularly at the lofty levels of the industry.  Some of them are the result of people unhappy with internal restructuring.  Others seem to be opportunistic in nature.  But my thoughts on all of these is that people are situating themselves for the next big thing which I'm hearing suggested will not happen in 2010 but rather in 2011.  That could be a strategy, a company or just someplace that they think they'd be happier.  Of course, when you're in demand, you have a stronger negotiating position but as you would like to believe is always the case, companies need to find people who not only have the right experience but are also respected in the industry and fit in culturally.  I think this last item may be the most challenging in making a decision about hiring someone.  After all, don't you agree that you don't really know someone until you live with them?

Still on the job subject.  On a regular basis, I talk with people who are looking for jobs.  Some of them are already employed with two-five years experience and looking to step up (or over as the case may be).  Others are recent graduates who are finding it difficult to get their foot in the door.  As it seems that there aren't really any firms that are 'employee advocates' may I suggest that you contact me if you're looking for someone.  I have a pretty good track record of connecting people that end up getting hired and while I don't perform all the services of a professional recruiter I think I have a pretty good feel about people and I have a  pretty good network....(P.S. my help is free!)

Tomorrow would have been my father's 93rd birthday.  I remember, as he got older, when I'd see or talk with him and I'd ask him, "How are you doing?" many times his response would be, "Well, I'm still here."  And I'd tell him that he's going to be around for a long time.  And, compared to others, he was.  But as many of you have experienced (and shared with me) the process of letting go takes time.  It's sort of like maybe he has been on an around the world cruise and hasn't had time to write or call and that one of these days he'll be back and tell me all about it.  And maybe that is the journey he's on; maybe he's experiencing things that he always wanted to but didn't have the time or money to do them.

And that brings me to my last thought this week:  There are some things that come up in our lives that are once in a lifetime.  I'm not talking about the big things but rather the small things.  The ones where you say to yourself, "I'll do that if i have the time" or "I'll visit that friend of mine who is very sick next week" or "Well, this won't be the only time I'll get to do that."  But, you know what, sometimes it is the only chance you'll have.  Sometimes that friend won't be around next week and you'll say, "What was more important than taking some time to just do it?"  So, I guess what I'm thinking about is about priorities and making decisions about what is important because sometimes it is a once in a lifetime opportunity, for real.


On the road....
May 7-16:  California
May 17-18:  Midwest
May 20-24:  My brother and I take on NY
July 13-15:  NMS Conference at The Montage





These are my views and not that of my employer.

Two roads diverged in a yellow wood......

In line with my policy of non-attribution (except in the rare case where someone may want their name mentioned) I want to share with you some random things I heard and read this week.  But first, something of my own:  I'm going to shoot the next person on a panel who uses the phrase "Extend and Pretend."  Period.

• Surround yourself with great people - and you'll get great things." However, it isn't enough just to surround yourself, you must also take care and nurture the people that surround you.  Remember, praise is power. Invest praise you receive from your superior. Pass praise to your team where it will encourage still greater performance. When you share praise, your team will know you sincerely appreciate their value. 

• The 'snap-back' in competition for Class A, core-properties is giving the industry a false sense of "we're back in business."
• Judicious investing is still the theme with many institutional investors, however
• More investors are showing more interest in making new investments in 2010 (many with managers whom they have existing, healthy relationships with)
• There is a serious interest in investing with emerging managers
• "I don't buy the current optimism and will be trying to remain selective and demanding on pricing."
  
• "Green shoots" are mostly in apartments and industrial  (Ditto the above for the phrase "Green Shoots.)"
• Strong job growth expected by end of 2010 but not strong enough to make a difference.  2011 will be the year
• Some investors are looking at the possibility of political risk in the U.S. for the first time
• At a meeting of institutional investors and managers the main subjects of discussion were:  Lessons Learned and Best Practices with respect to risk management (Seems like I hear the term "Lessons Learned" almost as much as "Extend and Pretend").
• The US economy rebounded strongly in the second half of 2009. The the recovery could be slow and less robust (U-shaped) than the last ones.  Unemployment Still Lagging.  Cautious Consumer Spending.  Low Inflation Pressure - For Now.  Home Prices Improving.  
• When did the term 'bank' stop referring to a real bank and instead refers to an Investment Bank?
• RCA 1st Quarter in review:   Sales volume reached $15.4 billion, representing a 50% increase from Q1’09 with every property type registering higher volume. Core rather than distressed sales were primarily behind the volume gains despite the huge overhang of distressed situations. Sharp declines in cap rates were recorded for certain assets due to competition among buyers and the rapidly improving debt markets that are allowing buyers access to low interest rates.
• Performance in the non-listed property market saw a turning point in 2009, according to the results of the INREV Index. In local currencies, the INREV Index returned -7.8% in 2009 compared to -19.8% in 2008. (Still negative but dramatically less so)
  
  

The following op-ed piece was published in the New York Times this week.  I offer it to you in it's complete form as I believe the message will resonate with many of you: 

After waiting nearly a week as an Icelandic volcano spewed turbine-mangling ash into the atmosphere — thwarting flights into, out of or through Europe — the airlines are supposed to begin flying passengers again on Tuesday.

Governments, businesses and most travelers, irritated by disrupted itineraries and worried about lost productivity, are delighted to see planes back in the sky. But I, for one, wish this blessedly jet-free interlude could have continued a little longer. In the eccentric, ground-level adventures of some stranded passengers — 700-mile taxi rides through Scandinavia, for instance, perhaps a horse-drawn stagecoach over the Alps if things got really desperate — I’m reminded of the romance we trade away each time we shuffle aboard an airplane.

In the five decades or so since jets became the dominant means of long-haul travel, the world has benefited immeasurably from the speed and convenience of air travel. But as Orson Welles intoned in “The Magnificent Ambersons,” “The faster we’re carried, the less time we have to spare.” Indeed, airplanes’ accelerated pace has infected nearly every corner of our lives. Our truncated vacation days and our crammed work schedules are predicated on the assumption that everyone will fly wherever they’re going, that anyone can go great distances and back in a very short period of time.

So we are condemned to keep riding on airplanes. Which is not really traveling. Airplanes are a means of ignoring the spaces in between your point of origin and your destination. By contrast, a surface journey allows you to look out on those spaces — at eye level and on a human scale, not peering down through breaks in the clouds from 35,000 feet above — from the observation car of a rolling train or the deck of a gently bobbing ship. Surface transport can be contemplative, picturesque and even enchanting in a way that air travel never will be.

My girlfriend and I recently set out to circumnavigate the globe without the aid of any aircraft. Along the way, we took the Trans-Siberian Railway across the wilds of Russia from Moscow to Vladivostok, and drove a car through the empty doomlands of the Australian outback. These journeys take less than half a day if you go by plane. Each lasts nearly a week when you stick to the ground. But taking to the air means simply boarding, enduring the flight and getting off at another airport. Going our way meant sharing bread and cheese with kindly Russians in a shared train cabin, and drinking beers with Australian jackaroos (we’d call them cowboys) at a lonely desert roadhouse. These are warm, vivid memories that will stay with us forever.

Think of the trans-Atlantic flights you may have taken. Do you remember anything about them? (Turbulence, bad in-flight movies and screaming children don’t count.) Because flying is an empty, soulless way to traverse the planet, the best flights are in fact the ones you forget immediately after hitting the tarmac.

Now, imagine floating across the Atlantic on a ship. Do you think you might enjoy those days of transit — the joys of a starry night in the middle of the ocean, or a round of drinks with new friends as you look out across the stern railing at the glimmering water — and hold them in your memories well after your vessel made landfall?

My hope is that some travelers stranded by the volcanic eruption have been able to discover the joys of slow travel for themselves. With airplanes out of the picture over the past few days, pretty much the only form of public transport between the United States and Europe has been aboard the Queen Mary II, making one of her weeklong treks between New York and Southampton, England, or on one of the select few container ships that will rent spare cabins to civilian passengers.

I can vouch for the container ship option, having taken a nine-day-long freighter passage from Philadelphia to Antwerp as part of my globe-circling trip. You can hang out on the navigational bridge with the officers, who will teach you to chart a course. You eat your meals with the crew in the mess room. You spot broad-winged seabirds and enormous whales and pods of dolphins.

Were you to see a plane flying overhead, you’d look up at its contrail and pity those poor people shrieking through the sky in a cramped aluminum tube. They will arrive days before you, sure. But they will have missed out on the wonders of a journey where there is no choice but to sit back, relax and pleasantly ruminate, as the ship chugs steadily through the waves.

Seth Stevenson is the author of “Grounded: A Down to Earth Journey Around the World.”




On the road...
Disappointed that my Italy trip was canceled due to the volcanic ash but it was better not to start the trip and be stranded.  How many more amazing things will we see in our lifetimes? 

April 26-27:  Pennsylvania
May 6-7:  Chicago
May 8-16:  California

May 17-18:  A couple of  midwestern cities
July 13-16: Laguna Beach to attend the NMS Real Estate Roundtable

End-note:  Yesterday was the 40th Anniversary of Earth Day.  At the first one on my college campus, a small group gathered in front of a building called "The Round Building" which I guess was more environmentally efficient than "The Library" or "The Gym" which were both rectangular buildings.  After all, in a round building, doesn't the heat and air-conditioning circulate better because the air bounces off and goes towards the middle of the room?  Anyway, my thought is that while a reminder that we need to respect and protect the Earth is important, like the title of one of my new songs, "Everyday with you is Valentine's Day", every day should be Earth day...we have only one Earth and goodness knows it needs us to watch out for it's well-being lest future generations have nothing to celebrate on April 22.



Photo:  Please enlarge the photo when you have a chance and zoom in.  These guys are not statues!






















These are my views and not that of my employer.

• 
  • FaceboMixx
  • MySpace
  • Yahoo! Buzz
  • PhotoPermBy SETH STEVENPublished: ApChicago

Did you ever wonder?

Did you ever wonder? If you're doing the right thing? Is the job you're in right for you? Should you be doing something else? Where is the best use of your skills? Your talent? Your passion? Are you in a job because you have obligations ( I was for years)? Are you doing something because it pays you enough to support your habits and those that your family has gotten used to? Did you ever wonder? What would it be like to do something different? Something special? Something meaningful? Did you ever wonder how future generations will remember you? Will they remember you? Will they speak about you? What will they say? Did you ever wonder? Thinking about your life is not easy. It's something we all probably push aside because it's, well, too close to home. But did you ever wonder what is the meaning of your life? Or are you afraid to think about it? Don't be afraid to admit it because I think that most of us are afraid to think of such 'big' things in our lives. And maybe, from time to time, like when there's a tragedy like a friend dying young, or when my Dad died, or when the Polish group died in a terrible and seemingly avoidable plane crash last week, is when these thoughts resurface-when I realize that you just never know, we just don't know.


This week, thanks to the kind invitation from UBS to attend their annual investor conference in Dallas, I had another opportunity to be a detached observer of the business of institutional real estate management. One thing that struck me is that once you prove to investors that you are a prudent and trustworthy guardian of their money, they will continue to trust you. With all the talk about the problems that have occurred in our industry, it is perfectly clear to me that if we stick with the basic rules of engagement in any client/service provider relationship, we can weather any storm. To me, those include the idea of 'no surprises' and communicating regularly, whether the news be good or bad and particularly when the news is bad. I think that too often, we may forget to put ourselves in the shoes of our client and remember what they deal with in their daily jobs. And that too is one of the basics of being a successful service provider.


I've been fortunate to have seen some pretty impressive buildings including a trip to Dubai a few years back. But this week, I was awed during a visit to the Dallas Cowboy's football stadium. Statistically the stadium is the largest domed stadium in the world, has the world's largest column-free interior and the largest high definition video screen. The stadium cost $1.4Bn, has 800 concession stands, 3,000 Sony flat screen TV's and 1,600 toilets. But those are just numbers. It's not possible to describe this structure in words and even photos don't convey the enormity of the space. I'm not a football fan although my brother, Jay, adopted the Cowboys as his first team many years ago (must've been those cheerleaders!). And, while this is a monument to excess, from a structural awe standpoint you may want to take a tour if you're in the area.


On what may be the other end of the spectrum, we also got to spend time in the Dallas Arboretum which is truly a beautiful and serene property. Spring allergy symptoms aside, it's also a wonderful place to spend some 'get-away' time when you're in Dallas.


Someone who reads this column wrote me last week and said, "Can you please tell me exactly what you do?" I thought it was a fair question and here's the answer: When I first started publishing this column I was working for Institutional Real Estate, Inc (the publishers of The Institutional Real Estate Letter and producer of several industry conferences). When I left IREI in the summer of 2008 I started publishing the same column but through this site (Interestingly, not a week goes by when someone-actually this week there were a number of folks-come up to me and tell me they used to enjoy getting my weekly column and I tell them I've been publishing it all along and steer them to this site-so from a shameless self-promotional standpoint-if you know anyone who you think might be interested in this please pass it along). In the fall of 2008 I joined Aviva Investors North America as Head of Real Estate Client Relations. I'm part of the global real estate multi-manager group that has $6.3 billion in assets under management and my job is to grow that business. 

Interesting tidbit from this week's RCA report on workouts:
While modification and restructuring of existing loans remains the preferred strategy, dispositions have also increased. The growth in sales activity has been well received by investors, many of which are starved for distressed situations. Consequently, lenders have not had to discount pricing further as they ramp up dispositions.  The more than $18 billion of distressed situations resolved or restructured in just the first quarter of this year was equal to the total amount resolved in the first three quarters of 2009.

We're on the precipice of opportunity in the global institutional real estate world.  Some will play it safe; others will 'go contrarian.'  No matter what direction people choose to pursue, and even if their decision is to 'do nothing', there are no guarantees, only educated guesses and that's what makes things exciting right now.  A lot of very smart people are in a way placing bets that the path they choose will be the one that in hindsight will prove to have been the right one.  And, there are more possibilities than ever before.  It's one of those rare times when the opportunity for wealth creation exists and even some of those who were able to create wealth in the early 1990's are wondering what to do.  It's going to be a very, very interesting next few years, don't you think?


Btw:  If you woke up this morning and felt you wanted to go shopping for a loan or an REO asset you may want to check out the Carlton Exchange




On the road....

April 17-21: Vacation in Tuscany
April 22-23: Venice for the INREV annual conference
April 26-30:  New York
May 13-15: North Palm Beach, FL for the annual Homer Hoyt Institute/Hoyt Fellows conference
July 13-16: Laguna Beach to attend the NMS Real Estate Roundtable





Photos:  Dallas Arboretum










These are my views and not that of my employer.