Phipps Houses / What's going on with China real estate? / Consultant recommendations: value-add? / World smile day

Phipps Houses

Thanks to the gracious invitation from a Trustee, I attended the annual gala for Phipps Houses on October 3.

 “Phipps Houses is the oldest and largest not-for-profit developer, owner, and manager of affordable housing in New York City. Its social services affiliate, Phipps Community Development Corporation (CDC), offers more than 30 education, job-readiness, recreation and civic engagement programs to help New Yorkers build better lives for themselves, their families and their community. Together they are changing lives in New York City.” (taken directly from their website)

New York City’s Mayor Bloomberg spoke at the event.  It was the first time I had seen him in person.  His accolades about Phipps Houses clearly conveyed sincerity.  The Mayor has an appealing presentation delivery style…it’s like he’s talking with you personally.

A highlight of the evening was an update on the multiphase Hunter’s Point South project, which will be the largest affordable housing complex in New York City since the 1970s.  All 925 Residential Units of Phase I will be permanently affordable and will include resiliency features designed to mitigate the impact of severe storms (i.e. putting the utility rooms on the second floor).

Phipps involvement in helping people goes far beyond establishing partnerships to create affordable housing. Phipps Community Development Corporation prepares individuals to find work.  And in addition to job search and career development resources, they offer After School programs, Early Childhood Education, Language and Literacy classes, a Summer Camp and Teen programs. 

I encourage you to take a look at the Phipps website (http://www.phippsny.org) to learn more about how this very special organization ‘empowers New York City communities.’

What’s going on with China real estate?

I first met Robert Ciemniak in 2006 when I was roaming around Europe launching a consulting business.  He was with Thompson / Reuters at the time. 

Since that time Robert has started his own business, Real Estate Foresight, dedicated to providing deep analytical data and well-informed insight into China Real Estate markets.

On the homepage is an interesting report (http://china.realestateforesight.com) called 'China Scenarios - Conditions for Real Estate Markets in China 2013-2018'. This is a “summary of our 5 core scenarios for the macro context and conditions for Chinese real estate markets over the next 5 years, from a perspective of a foreign investor…the objective of these scenarios is to help investors stress test their assumptions and follow the principle ‘you can’t predict but you can prepare’ in the investment process.”

To share his thoughts, observations, and knowledge of the market, Robert publishes a blog called China Weekly, which includes takeaways from various conferences he attends in Asia and Europe. Curious about real estate in China? You can subscribe to Robert’s blog here (http://china.realestateforesight.com/index.php/real-estate-foresight-weekly/refweekly).

During his September visit to NYC, Robert, myself and other industry colleagues had a great time eating Pierogis at Veselka on the Lower East Side of Manhattan.  To me, there are few things that rival sharing good food and drink with friends.  The food experience was fun and we even found some time to talk business!

Consultant Recommendations:  Value-add?

“…….we find no evidence that these recommendations add value to plan sponsors.” 

Tim Jenkinson, Howard Jones, and Jose Vicente Martinez of the University of Oxford’s Saïd Business School conducted an extensive survey on the role consultants play in investing in U.S. equities.

The survey suggests that plan sponsors are engaging consultants for the hand-holding service and the shield used to defend their manager’s selection decisions. 

Quoting from the survey: 

“Investment consultants’ recommendations of funds are a function of the past performance of those funds.  But they are also heavily influenced by the two sets of non-performance factors:

1.    Soft Investment Factors (clear decision making, capable portfolio managers, and consistent investment philosophy)

2.   Service Factors (capabilities of relationship professionals, usefulness of reports prepared by the fund manager, and effective presentations).

In particular, soft investment factors have a far more powerful effect on consultants’ recommendations than past performance.  Although consultants’ recommendations to some extent reflect a return-chasing strategy, they are more heavily influenced by the consultants’ qualitative judgment of intangible factors.”

While the survey focused on U.S. equities, my take was that similar results could come from a real estate specific survey of the same type. Many in our industry are convinced that when a consultant evaluates a firm, fund or other type of real estate investment offering, the checkbox at the top of the list is directly related to track record. Is it possible we’ve been wrong in how consultants grade fund managers?

*

Now what do we do with this information??  Will it result in a shift in the number of pension funds that employ consultants?  Perhaps those who do use consultants will begin questioning the way managers and fund investment opportunities are evaluated.  And, more importantly, this report may get fund and investment managers to appreciate, more than ever, the importance of those soft factors.

When we reflect back on this study in 5 or 10 years from now, will we notice its impact?  If I were a consultant, perhaps addressing the findings of this study proactively with my clients would be a smart strategy.

Stay tuned boys and girls! We may be witness to a ‘sea change’ in the relationship between pension funds and their consultants. You never know!

You can read this 47-page report here (http://sbs.eprints.org/4785/1/TJ3.pdf#!).

World Smile Day

As I’ve received so much feedback on the recent piece about smiles, I thought you might be interested to know that Friday October 4 was World Smile Day. 

Here is a direct excerpt from an email sent by Susannah Schaefer, Executive Vice Chair and Chief Executive Officer, of SmileTrain to highlight World Smile Day:

“Smile Train has decided to celebrate the day with our student supporters. One school in the UK has already done A LOT of celebrating in preparation of today. In honor of World Smile Day®, Westinghouse Prep School, a school of 300 students in Chichester, UK, has raised enough money through various events to provide 60 children with free cleft surgery. World Smile Day® is all about bringing about smiles through kind acts and what could be kinder than giving a child a second chance, and a new smile?

Please join Smile Train in celebrating World Smile Day® by retweeting or posting to Facebook the smileygraph on this page (http://www.smiletrain.org/wsd/#) along with #smileygraph. Each share triggers a $25 donation for Smile Train. 

Also, don’t forget to wear your best smile today—I know I’ll be wearing mine!"

Warm regards,

 
Susannah Schaefer 
Executive Vice Chair and Chief Executive Officer

On the Road...

Oct. 10 – 11:  Cornell Real Estate Annual Conference, New York, NY

Oct. 16 - 18:  Client meetings, Chicago, IL

Oct. 23 – 24:  PERE (Private Equity Real Estate) Summit: New York 2013, New York, NY

Oct. 28 – 30:  PREA (Pension Real Estate Association) Annual Investor Real Estate Conference, Chicago, IL

Nov. 13 - 15:  NCREIF (National Council of Real Estate Investment Fiduciaries), Fall Meeting, Miami Beach, FL

Disclaimer 

All content in this blog is created for informational purposes only. Content, which includes all text, photos, video and graphics is not intended to malign any religion, ethnic group, club, organization, company or individual.  Steve Felix makes no representations as to the accuracy or completeness of any information on this site or other information as a result of following any featured link to or from this site.  The intention of this blog is to do no harm in regards to injury, defamation or libel. What is written or shown is not to be taken as fact or absolute.  Steve Felix will hold himself harmless for any errors or omissions in this blog’s information; including but not limited to external link information, translation or interpretation of content or incorrect grammar or punctuation. 

The wallet / The love of a brother / The cloud / Square Dancing

The Wallet

Something incredible happened this week. 

Very early Wednesday morning, for the first time in my life, I lost my wallet.  It fell out of my bag while I was riding my bike.  When the realization struck me I was beside myself and started the process of canceling my credit cards.  

Within two hours I received a call. “Mr. Felix, this is Jose.  I am a truck driver and I found your wallet.  Can we meet so I can return it to you?”  OMG!  “Thank you, thank you, Jose!!  Just tell me where and when.”  Before the morning was over, Jose drove his tractor-trailer to a meeting place actually convenient to me.  With a big smile, he handed me my wallet.  “Everything that was there when I found it is still there,” Jose said.  I didn’t even look inside, other to pull out some cash to show my appreciation. Before he went on his way Jose related a story about his own wallet loss and how it was returned by a teenager - completely intact.  

When I got back to my destination, I did check…everything was in the wallet! 

Later that day I called Jose’s supervisor.  He appreciated that the call was a compliment.  He said that Jose is a ‘good guy’ and that he would tell him about my call.  I offered to write a letter and the supervisor said, “That would be great!  I’m always getting grief from the higher-ups about something or other regarding our drivers.  This would be a good thing for me to show them.”

This still seems dreamlike. In New York City, I got lucky enough to have a man with integrity find my wallet and reach out to me and return it. The very same day.  With all its contents.  A truly noble act from Jose, which I will never forget.

Maybe there’s a lost wallet somewhere waiting for me to find and return….

The love of a brother

Central Park boasts a wonderful and vibrant tennis center.  The other morning, while having coffee at the courts, a friend and I were approached by a lovely older gentleman.  He handed us a piece of paper and said the information was about a book of poems written by his younger brother. He asked that we check out the sample, consider buying it and tell others about the book.   A few minutes later I ran into him in the men’s room. The full story came out.  His younger brother had died.  His brother’s poems including the ones that were previously unknown - even by the family - were published after his death.  I got teary.  

Later this week I did ‘check it out.’  The book is called, “Thoughts of Being.”  The author, Daniel Polsky, M.D.  

From the introduction written by his older brother (the one we met):  “This is a tribute to my brother, who always wanted to be a writer...After his death in 2008, many of Danny’s poems were found.  Some were handwritten on available pages of student spiral notebooks; many were typed on an ancient pica Underwood, some on an electric typewriter and more with a PC word processor.  Aware of the coming of the end of his life, Danny revised and made copies of the poems he loved…this selection is representative of Daniel Polsky’s lifetime endeavor.”

As I have gotten to know many of you who read this column, whether you like or connect with the poems or not, I am fairly sure you will feel the same as I do about the post-mortem publishing of this poetry.  Oh, if only Danny had been around to see this happen.  But, perhaps he knows what his family has done to memorialize his life and his writing.  

Here is the link so you too can sample Danny’s poems.  (http://www.amazon.com/Thoughts-Being-Daniel-Polsky/dp/0984054006)

The cloud

Last night, just before midnight, my friend and I were treated to a curious and wonderful light show in the clouds (Yes, the clouds in the sky.  I bet you thought I was going to share a cloud computing story...).

From a Manhattan rooftop we noticed four beams of light rising up from an unknown source hitting the clouds, forming ‘dot’ type shapes.  These lights moved, almost as if choreographed.  They moved quickly.  Then shut down, only to have more dots reappear a few brief moments later.  16 we counted, then 19, then 21.  Then gone.  Then back again, across a huge expanse of the night sky.  If it had been a clear night, this show could not have occurred as the clouds were the canvas.

Aliens?  UFO’s?  Young people at play??  We couldn’t find any mention of it anywhere on the Internet.  Perhaps we were the only audience for this spectacular and unexpected display. Could it possibly have been communication with beings on another planet?  We were not able to see any pattern or rhythm to the movement.  So, we stopped trying to figure it out and just enjoyed the show.  

Square Dancing

The sign outside the main branch of the New York Public Library on Fifth Avenue and 42 Street simply said, “Bryant Park Square Dance.”  

Bryant Park is a wonderful space behind the library which, for many years, had been neglected. It is now the home to year ‘round activities including outdoor restaurants, movies, ping pong and a wonderful ice skating rink in season. 

My friend and I looked at each other and said, “Let’s go!”  So, the next day we returned to the park at 5:30 dressed in jeans and cowboy boots to listen to the opening band, The Boston Boys.  Hundreds of people started gravitating towards the stage for the start of the dance.  For the next two plus hours we had a wonderfully fun time learning and doing a variety of square dances to the music of The Remedies.  

Funny.  The last time I square danced was many years ago at summer camp.  When the ‘caller’ started guiding us through the moves, it all came back to me.  “Bow to your partner, bow to your corner, circle right, circle left, swing your partner, swing your corner, allemande left, allemande right, do-si-do and promenade home.”

There were all different levels of dancers amongst the 500+ people.  We had an incredible free, fun New York City evening, under a beautiful early autumn sky.  We danced in the light of the Bank of America building and under the stately, watchful eye of the Empire State Building.  One of those special times where you seize the opportunity and ‘Just do it!’  Yee haw! 

Check out what’s going on in Bryant Park. (http://www.bryantpark.org).

On the Road...

Oct. 10 – 11:  Cornell Real Estate Annual Conference, New York, NY. (Note: There are still a limited number of tickets available.  I’ve previously attended and it’s a wonderful event.  You can register here.

Oct. 16 - 18: Client meetings, Chicago, IL 

Oct. 23 – 24:  PERE (Private Equity Real Estate) Summit:  New York 2013, New York, NY

Oct. 28 – 30:  PREA (Pension Real Estate Association) Annual Investor Real Estate Conference, Chicago, IL

Nov. 13 - 15:  NCREIF (National Council of Real Estate Investment Fiduciaries), Fall Meeting, Miami Beach, FL

Disclaimer 

All content in this blog is created for informational purposes only. Content, which includes all text, photos, video and graphics is not intended to malign any religion, ethnic group, club, organization, company or individual.  Steve Felix makes no representations as to the accuracy or completeness of any information on this site or other information as a result of following any featured link to or from this site.  The intention of this blog is to do no harm in regards to injury, defamation or libel. What is written or shown is not to be taken as fact or absolute.  Steve Felix will hold himself harmless for any errors or omissions in this blog’s information; including but not limited to external link information, translation or interpretation of content or incorrect grammar or punctuation. 

NAREIM EXECUTIVE OFFICERS MEETING / OTR Reader Feedback

NAREIM Executive Officers Meeting

The National Association of Real Estate Investment Managers held their Fall Executive Officer meeting this past week at Columbia in New York City. The impressive University campus, built in 1897, was designed as an urban academic village by the renowned turn-of-the-century architectural firm McKim, Mead, and White.

When entering the University’s gates, off of Broadway, the stately buildings are pretty awe-inspiring.  A red brick cobblestone path from the subway station to the library clearly designates the campus and was very cool to look at (but a little funky to walk on)! 

During the well-attended conference, as you might imagine, there were several in-depth data presentations on the subject du jour, interest rates.  While rates have inched up recently, we do not have the advantage of a fully-functioning crystal ball to truly predict the future.  For now, the commercial real estate transaction world is operating on all cylinders. 

The NAREIM group tackled some of the big picture subjects such as (a)‘What have been the most significant changes with respect to the needs and behavior of capital?’ and (b) ‘What changes have you made in response?’  These topics were discussed with the same openness and honesty that I’ve observed at similar Executive Officer meetings; the candor amongst direct competitors was very refreshing.

Thanks to NAREIM CEO Gunnar Branson and the event planning committee, we were treated to two inspiring talks not directly related to our industry.  

Sarah Miller Caldicott, the grandniece of Thomas Edison, spoke about innovation while discussing her new book, ‘Midnight Lunch.’  Joseph Kessler of The Intelligence Group presented an eye-opening presentation on Gen-Y / Millennials. 

My thoughts on these talks…

Sarah’s engaging and enthusiastic presentation focused on The 4 Phases of Team Collaboration Success from Edison's Lab.  She spoke of the importance of bringing together individuals from diverse disciplines to gather multiple perspectives and experience faster problem solving.  The “lunch” refers to Edison’s fairly regular ritual of ordering in food from a local tavern at about 9pm.  The group would relax, tell stories, sing songs and even play music together before heading back to the lab to work.  The social connection - learning more about each other as people and not just workers - was considered to be responsible for creating a more collaborative environment. 

I basked in Sarah’s presentation of Edison’s concepts.  By breaking down some of the barriers that exist between people, Edison’s brilliant strategy gave his team permission to be open with one another without fear of retribution or judgment.  And, while “Midnight Lunch’ started at 9pm and the work in the lab often continued all night, it’s the method and not the time of day that mattered.  Managers who pride themselves in thinking differently may learn something from Edison’s practice.  

And, with regard to the “L” word (lunch) - I’ve always considered ‘breaking bread’ to be a great start to building a worthwhile relationship!

What I find so interesting is that the second speaker I will share with you spoke about young people communicating while never needing to be in the same room! Joe Kessler, a passionate and animated presenter, focused on youth culture and consumer trends of those born between 1980 – 1995.

Two interesting statistics he provided from a recent survey of Millennials are:

73% said it’s important that what they buy (product / service) makes a positive impact on society.

70% would rather buy a cool experience than buy a cool product.

The first statistic suggests an admirable social consciousness.  The second perhaps reflects the belief of some that life is a series of experiences and that those, rather than a product, are where memories are made.

Joe also enlightened us to a few acronyms used by the Gen-Y / Millennial group surveyed - with the exception of one NAREIM audience member, no one had heard of these:

FOLO = fear of losing out

YOLO = you only live once

JOMO = joy of moving on 

While I don’t see myself starting to use these ’acronyms’ it’s important to understand how different generations communicate. (I would be interested to know if any readers are now saying “Ohhhhh, so that’s what that means!”)  To keep up on things, The Intelligence Group publishes the “Cassandra Report” on daily trends.  Free subscription can be found here                         

Some of Joe’s comments may have reminded the group about the importance of knowing one’s audience when developing real estate or when hiring and managing people. And, with people working well past the ‘usual’ U.S. retirement age of 65, the multi-generational make-up of the workforce creates new and different communication challenges.  

He also gave us food for thought:  think back to a job you may have had where the boss said you couldn’t make personal calls while working.  How did that make you feel and did you actually adhere to those rules?  Flash forward to the Millennials, who are constantly on their phones, texting and posting to Facebook and other social endeavors.  Joe suggested this: learn to accept this as normal behavior of this generation – let people’s productivity or results be the measurement of job performance and not the amount of time they may spend on their personal lives while at work.  

Inviting speakers like Sarah Miller Caldicott and Joe Kessler push us to think more broadly about life and the world we share.  Because the essence of success in commercial real estate is directly correlated to where people live, shop, work, go to school and play, our understanding of the behavior and habits of the population is critically important.  The future of our industry depends on it.

Feedback from OTR Readers

There are certain weeks that I receive substantially more emails than usual about something I’ve written – I always appreciate hearing from you.  Last week was one of those times.  Here is some of the feedback I received on the “Scarcity of Smiles” section:

“How sad that people avoid eye contact with each other. My recollections of New York were of friendly people, but I guess after 9/11 and the economy tanking, people have changed. I agree that the smile is our best way of connecting with people.”

“…as you have noted in earlier blogs, the best way to make a difference in your endeavors is to be passionate about what you do, and how you do it because it fuels you, and it is contagious!”

“I like your piece on smiling.  In Chicago too, I find that people are sort of conditioned not to look at each other, which is odd for me being raised by small town parents where everyone knew each other, and would smile and wave and or stop and talk as a way of life.  Though I did not grow up in that 1,200 population Wisconsin town - through my parents and grandparents I feel the connection to the place and the values).  I still try to connect with people because it makes sense to me to do so and it feels quite foreign not to.”

“I sometimes smile in amusement at my own thoughts, and catch a smile back from an unknowing bystander.”

“BTW, people smile more in the burbs than in Manhattan.”

Please keep those cards and letters coming in.  And if you know someone who would enjoy receiving OTR directly please refer them to the website (http://stevefelix.blogspot.com) where they can subscribe.  Thank you.

On the Road...

Oct. 10 – 11:  Cornell Real Estate Annual Conference, New York, NY

Oct. 16-18: Chicago, IL

Oct. 23 – 24:  PERE (Private Equity Real Estate) Summit:  New York 2013, New York, NY

Oct. 28 – 30:  PREA (Pension Real Estate Association) Annual Investor Real Estate Conference, Chicago, IL

Nov. 13 -15:  NCREIF (National Council of Real Estate Investment Fiduciaries), Fall Meeting, Miami Beach, FL

Disclaimer 

All content in this blog is created for informational purposes only. Content, which includes all text, photos, video and graphics is not intended to malign any religion, ethnic group, club, organization, company or individual.  Steve Felix makes no representations as to the accuracy or completeness of any information on this site or other information as a result of following any featured link to or from this site.  The intention of this blog is to do no harm in regards to injury, defamation or libel. What is written or shown is not to be taken as fact or absolute.  Steve Felix will hold himself harmless for any errors or omissions in this blog’s information; including but not limited to external link information, translation or interpretation of content or incorrect grammar or punctuation. 

Scarcity of smiles / Transferable skills / The day of atonement

Scarcity of smiles

For as long as I can remember I’ve enjoyed people watching.  I believe there is no better show in town than observing others - on the street, in restaurants, in stores, on subways and buses…basically everywhere.  In New York City you’re not ‘supposed to’ make eye contact with anyone on a subway car and it’s a curious phenomenon to watch people not watching each other.

But my commentary here is a sad one.  It’s about how few of the people I see actually smile these days.  Maybe it’s that everyone is in a hurry…or maybe, as my brother Jay and I were discussing, it’s a result of people just focusing on themselves…  “Whatever happened to people simply showing some consideration for each other?” Jay lamented. 

In my travels I have learned that there is seldom a more powerful communication tool than a smile.  When you are in a country where you don’t know the language and you need help finding the nearest - dare I say – Starbucks or McDonalds, it’s all about how you approach someone that makes the difference. ‘If you smile at me I will understand ‘cause that is something everybody everywhere does in the same language,’ wrote and sang David Crosby in the song Wooden Ships (Crosby, Stills & Nash).  It’s truly a beautiful concept and, in addition to a communication vehicle, a smile brings a wonderful inner feeling. 

A friend recently introduced me to an organization called Smile Train (that trains doctors to do cleft palate surgery on kids in need and more recently adults. “I’ve always felt that a smile can open doors and that these kids with cleft palates need our help,” says my friend with a million-dollar smile.  

There are many people who are not physically able to smile and yet desperately want to.  What a shame that so many who can smile don’t. 

See if you’re able to catch yourself not smiling; think about those that simply are not able to and find it within you to smile as you walk down the street, drive in traffic or wait in line at airport security.  Trust me on this one – smile, as often as you can – you’ll find it improves your day, and that your smile is contagious.

Transferable skills

Many years ago, a friend related some career advice her father gave her: “Decide what you’re good at; decide what you like to do and then go find a place to do it!”  Ah, if it were only that simple for everyone.  And, with the popularity of real estate, it’s never been more competitive for jobs at every level. Something that helped me early on was being introduced to the idea of transferable skills. This includes evaluating yourself in terms of your skill set and what you’re good at, but not defining yourself by just one job title.  

The career conversations I have these days, with both professionals (who may be unemployed or underemployed) and students (looking for internships and first jobs) have a similar tone:  some just want to find a job (understandably so) while others are searching for a place to do something they love, believe they will love in the future, or are simply good at. 

I work at helping people understand the concept of transferable skills when they are looking for new employment or a new career choice. It’s all about presenting oneself in the right way. Being able to see one’s own strengths and value in a different light will allow confidence to shine through.  People want to work with others who have that bright light to share and can bring value, often from a fresh perspective.

If people come to you looking for career advice, you may want to open their eyes to the concept of transferable skills.  They too may benefit from that holistic approach to a career.

The Day of Atonement

Tonight begins Yom Kippur, the Jewish ‘Day of Atonement.’  It’s the holiest day of the year for Jews, which features a 24-hour fast – from sundown tonight through sundown tomorrow.  As in most religions, there are different degrees of observance, depending on one’s belief system.   While not religious (and having been basically non-observant for a number of years) I have fond memories of going to a ‘synagogue’ set up at the Lost Battalion Hall on Queens Boulevard in Rego Park and, after the service ended, walking home with my Grandfather to the group of family waiting to sit down to ‘break fast’ with traditional Jewish delights. 

For years, while I didn’t attend religious services, I fasted – out of respect for my grandpa.  Then, detached from family, I began to neglect this one holiday that conceptually meant something to me – a day to reflect on the past year, atone for any ‘sins’ and start with a clean slate.  In researching the holiday I was reminded that while that’s not the exact definition, I’ve chosen to personalize the holiday to what is meaningful for me.  

Yom Kippur is an ideal time to remember what we did, forgive ourselves and move forward…it’s also a great opportunity to forgive others.  And so, tomorrow I am going to fast, go to Central Park and reflect on the past year. 

I will then ‘break my fast’ with a pumpernickel bagel with whitefish spread ready to approach the New Year with a fresh outlook.

Wishing you all a year of health, happiness, prosperity and peace.

On the Road...

Sept. 15 – 17:  NAREIM (National Association of Real Estate Investment Managers), Executive Officers Fall Meeting, New York, NY

Oct. 10 – 11:  Cornell Real Estate Annual Conference, New York, NY

Oct. 23 – 24:  PERE (Private Equity Real Estate) Summit:  New York 2013, New York, NY

Oct. 28 – 30:  PREA (Pension Real Estate Association) Annual Investor Real Estate Conference, Chicago, IL

Nov. 13 -15:  NCREIF (National Council of Real Estate Investment Fiduciaries), Fall Meeting, Miami Beach, FL

Disclaimer 

All content in this blog is created for informational purposes only. Content, which includes all text, photos, video and graphics is not intended to malign any religion, ethnic group, club, organization, company or individual.  Steve Felix makes no representations as to the accuracy or completeness of any information on this site or other information as a result of following any featured link to or from this site.  The intention of this blog is to do no harm in regards to injury, defamation or libel. What is written or shown is not to be taken as fact or absolute.  Steve Felix will hold himself harmless for any errors or omissions in this blog’s information; including but not limited to external link information, translation or interpretation of content or incorrect grammar or punctuation. 

On the Road...literally! / The emerging class

On the Road…literally! 

The 11-hour drive between New York and Asheville, North Carolina, over the Labor Day holiday weekend was pretty smooth.  Fortunately, I adopted a fairly Zen approach to driving some years back – rather than getting upset at something a driver does I simply expect that people will do the dumbest thing possible and when they prove me right I smile to myself and say, “I knew you were going to cut in front of me, across three lanes, almost missing your exit because you were talking on your phone!”

Making a last minute decision to visit my older son, his wife and their two sons (ages 4 & 2) was a great idea – for all of us.  Based on our collective schedules, I wasn’t certain when the next time a family visit would be possible.

Spending lots of time with the boys was really fantastic.  Seeing how much they had grown, even in the past few months, is remarkable (as was the increased curiosity level of of all things mechanical - especially cars - of the older brother Sean).  We played with puzzles, built a car wash with Legos and invented some new games including ‘close-your-eyes-and-when-you-open-them-see-the-magic-that-happened.’  A special treat was a visit to Splasheville (as in Asheville) …an interactive fountain where children of all ages get wet walking / crawling / running through randomly sequenced bursts of water.  Seeing the joy of the children as they watched the water spurting out of the ground and observing the smaller children get braver and braver about getting wet was a treasure.  While Sean got soaked, Gavin thoroughly enjoyed himself running around the perimeter of the fountain.  Actually, it wasn’t really about what we were doing at all - it was just the time we spent together that truly mattered.  

People have talked about the concept of ‘quality time’ with children as being important. I decided many years ago it’s also the quantity of time that is just as important with kids.  More is usually better.

Physical distance between families creates a challenge, which Skype - although making a good attempt – cannot replace.  When seeing you on a computer screen your grandson can’t climb on your lap and say, “Tell me a secret, Grandpa.”  He can’t take your hand and say, “Come out and watch me ride my bike” or “Show me the motor of your vehicle!!” (This really happened!)  Face to face interactions are precious times, and overnight visits create a dynamic that often doesn’t surface with a brief meal or a short trip to the zoo.  I think it’s important to be in the same place for evenings and mornings to create that safe environment where sharing occurs.

Being on the road alone for that 22-hour round trip experience gave me the chance to simply think, and not do.  I was able to evaluate where I’ve been investing my time wisely and where I should consider making changes.   It was a healthy process, one that is more difficult when you’re caught up in the day-to-day affairs of making a living, doing your laundry, exercising and blending healthy smoothies.  Oh, don’t forget about having some fun!  

One key decision made on the trip is that I will do whatever possible to schedule regular visits with my family (luckily my younger son, his wife and their two kids live much closer to me). 

It’s good to take a solo journey every once in a while and rediscover who you are and what is important.

The emerging class 

A term that has become more and more popular in recent years is ‘emerging manager.’  Although making a convincing case is challenging, some pension funds have distinct allocations for this breed of investment manager.  Perhaps this is one of the key driving forces behind the appearance of so many lately.

The competition in this class is fierce and the patience required is saintly.  Over the years, as ‘potential’ emerging managers approached me and asked, “Steve, how long will it take for us to raise our first fund?” my answer had been, “If you’re not prepared to invest three years of time and money just to be invited to the dance, don’t start.”  While three years may be somewhat conservative, I’ve always qualifed my answer by adding, “It could take less time… You just never know.”

One thing is certain:  when an institutional investor or their consultant (or apparently my grandson Sean), looks ‘under the hood’ of your company, they’d better see what they’re looking for…a strong engine, plenty of battery power, a clean windshield and headlights that function.  If they don’t, it’s perfectly reasonable to assume that you will be told, “Come back when we can check all the boxes on our preliminary review form.  Oh, and also when you’ve gotten some of our peers to invest with you already….we don’t favor being the first investor in any new fund, particularly one with an emerging manager.”

But almost every institutional real estate investment manager emerged at some point.  And, with some very successful and talented niche real estate operating companies gaining traction, the lure of the pot of gold at the end of the rainbow is an enticement that cannot be ignored.  A word to the wise: remember the importance of the two ‘P’ words – patience and presentation.  These concepts are inextricably linked as you navigate the waters from being a ‘submerged’ to an emerged manager.

As has been proven, the rewards can be well worth the time, effort and expense.  Here’s to the current crop of courageous firms who have said, ‘Let’s go for it!’  There may be no better time than now!

Congratulations

Justin Laub joined Metropolitan Capital Advisors

Carrie Coulson joins Park Madison Partners

On the Road...

Sept. 15 – 17:  NAREIM (National Association of Real Estate Investment Managers), Executive Officers Fall Meeting, New York, NY

Oct. 10 – 11:  Cornell Real Estate Annual Conference, New York, NY

Oct. 23 – 24:  PERE (Private Equity Real Estate) Summit:  New York 2013, New York, NY

Oct. 28 – 30:  PREA (Pension Real Estate Association) Annual Investor Real Estate Conference, Chicago, IL

Nov. 13 -15:  NCREIF (National Council of Real Estate Investment Fiduciaries), Fall Meeting, Miami Beach, FL

Disclaimer 

All content in this blog is created for informational purposes only. Content, which includes all text, photos, video and graphics is not intended to malign any religion, ethnic group, club, organization, company or individual.  Steve Felix makes no representations as to the accuracy or completeness of any information on this site or other information as a result of following any featured link to or from this site.  The intention of this blog is to do no harm in regards to injury, defamation or libel. What is written or shown is not to be taken as fact or absolute.  Steve Felix will hold himself harmless for any errors or omissions in this blog’s information; including but not limited to external link information, translation or interpretation of content or incorrect grammar or punctuation. 

Tomorrow never knows, The U.S. Open, Fire Island

Thank you for the congratulations and good wishes on the early success of our Behavioral Presentation Coaching business.  It means a lot!

Tomorrow never knows 

We often plan our ‘tomorrows’ and then wake up in the morning and follow that plan. But there’s no telling what may happen ‘tomorrow’ that could change our lives. 

Even when heading out the door to go to the same place and job that we’ve been going to for years, a magical moment may be waiting for us right around the bend.  So how do you know???  The simple answer is – you don’t.  If you’re open to what the Universe has in store for you, then you know it’s always possible … 

I believe these are not chance happenings…they are part of the master plan.  As stated in this excerpt from The Holstee Manifesto:

"Some opportunities come only once, seize them.  Life is about the people you meet, and the things you create with them so go out and start creating."

When the Universe conspires to give you the chance to seize an opportunity – just do it!  We probably all look back from time to time and say to ourselves, “shoulda, coulda, woulda,” and goodness knows I have my share of these moments.  But it’s a great feeling to ‘go for it’ when we have the chance and it’s right in front of us, within our grasp.  

The U.S. Open

This week, the U.S. Open Tennis tournament began in Flushing Meadow, New York. On Friday, some friends and I watched a day of qualifying matches - players who were competing to be in the main tournament draw.  We had a great day, saw lots of inspired tennis and couldn't wait until the next time we got on the court ourselves.

In the matches where an American was playing, even an unknown player, the New York crowd rooted for them.  The beauty of a global sport being played in NYC is the diversity of the audience. Players from different parts of the world all found local support in the stands.

Every match on Friday was singles. The players are out there – on the courts, on their own – trying to get to the big show.  It can be a lonely game; the competitors are alone, with just their racquet, skill set, and mind.  The difference between winning and losing can often be attributed to the mental game. Internal chatter can sometimes make or break the match.

Players do have supporters - family, coaches, friends - in the stands to turn to from time to time for encouragement.  We all need that to lift our spirits when we’re down ‘Love-40’ in the crucial game. People to cheer us on with a smile, a fist pump, or simply a nod.  These moments of connection can help get someone out of their own way.

I’ll be watching the U.S. Open looking for these players that we saw making their way through the tournament.  And, having observed their battle last week, I’ll be rooting for them too!

The U.S. Open runs from August 26-September 9: Here’s the link (http://www.usopen.org/index.html).  

Fire Island

Last week I was invited to Fire Island, a barrier island located off the south shore of New York’s Long Island. Taking the ferry to my destination made the short get-away seem like a real vacation.

Fire Island has been a well-known ‘summer share’ location with singles and groups, many unrelated, renting a house together and enjoying the summer beach environment.

As you might imagine, Fire Island suffered serious damage in last fall’s Hurricane Sandy.  Seeing building sites where houses once stood was difficult.  But many folks, like me, just get a glimpse of the devastation and are not living the experience on a daily basis.  Noticing boarded-up residences and commercial buildings with lots of construction going on was a vivid reminder.   The recovery and rebuilding efforts will still take years to complete.  Oh, the power of Mother Nature.

Allowing myself to shift perspectives, while standing on the sand and looking out at the ocean, it’s as if nothing had changed. The beach itself was gorgeous.

We swam, played Kadima and a little beach volleyball.  A new group approached the court after we were all warmed up. I immediately thought, ‘Gee, here come some real players intent on kicking our butts!!’  We accepted their challenge and quickly discovered they were not the hotshots they resembled but rather people playing on par with us who were just looking for some fun and friendly competition (btw, we won the best two out of three games!).

It’s funny sometimes, how the mind works.  At one moment, this new group looked like a bunch of ‘ringers’, perhaps having played competitive volleyball in college.  In life, our imagination can run wild when we let it.  Living in the moment, it’s nice when we’re pleasantly surprised!

Enjoy the Labor Day Weekend

Early Friday morning I’ll be on the road driving from New York to Asheville, NC to visit my son, his wife and their two sons. 

To all of you in the U.S., enjoy a happy and safe Labor Day weekend.

Congratulations

Jim Hime, CFO of USAA

On the Road…

Sept. 15 – 17:  NAREIM (National Association of Real Estate Investment Managers), Executive Officers Fall Meeting, New York, NY

Oct. 10 – 11:  Cornell Real Estate Annual Conference, New York, NY

Oct. 23 – 24:  PERE (Private Equity Real Estate) Summit:  New York 2013, New York, NY

Oct. 28 – 30:  PREA (Pension Real Estate Association) Annual Investor Real Estate Conference, Chicago, IL

Nov. 13 -15:  NCREIF (National Council of Real Estate Investment Fiduciaries), Fall Meeting, Miami Beach, FL

Disclaimer 

All content in this blog is created for informational purposes only. Content, which includes all text, photos, video and graphics is not intended to malign any religion, ethnic group, club, organization, company or individual.  Steve Felix makes no representations as to the accuracy or completeness of any information on this site or other information as a result of following any featured link to or from this site.  The intention of this blog is to do no harm in regards to injury, defamation or libel. What is written or shown is not to be taken as fact or absolute.  Steve Felix will hold himself harmless for any errors or omissions in this blog’s information; including but not limited to external link information, translation or interpretation of content or incorrect grammar or punctuation.