return to the peak sold out trends conference gets rave
TRANSCRIPT
Trends Conference Recap
Leads and Opportunities Forum
President’s Message
UW Program Update
Real Estate Club Update
Names in the News
Return to the Peak Sold Out Trends Conference Gets Rave Reviews
WISCONSINREAL ESTATE
ASSOCIATIONALUMNI
Gold Partners
Silver Partner
In this Issue
Vol. 25 Issue 2 Fall 2011
Newsletter oF the wIscoNsIN real estate alumNI assocIatIoN
The 2011 Wisconsin Real Estate Trends Conference Program drew nearly
250 participants to the Mid America Club in Chicago in September. The sold-out program, chaired by UW alumnus Brian Eisendrath of CBRE, was themed “Return to the Peak”, as the program planning committee thought it appropriate that the program focus on whether the market could be rapidly approaching the peak, particularly as related to multifamily and core product.
The conference led off with Adam Metz, former CEO of General Growth Properties (GGP), talking about the trials and tribulations of taking GGP through bankruptcy. Adam did a phenomenal job of discussing the benefits of having optionality
in real estate. Following Adam was a panel led by Michael Hoffman, President and Partner of Probitas Partners. This panel discussed higher yielding opportunities and proved that 20%-plus IRR’s are readily available. The next panel led by Chris Ludeman, President of Americas Brokerage and Capital Markets at CBRE, discussed the current investment market questioning the quick rebound in values from just a few years ago. At lunch we were fortunate to have Andrew Ross Sorkin, author of Too Big to Fail, discuss what “really” happened behind the scenes of the most recent economic crisis. Michael Shannon, Managing Director at KSL Partners, then gave an intriguing presentation that had everyone on the edge of their seats. Michael confirmed that it is possible to make resort investments hugely successful despite an economic downturn. The conference ended with a panel on the current state of the capital markets moderated by Jody Thornton, Executive Managing Director at HFF. While lenders are still being cautious, there is a strong appetite for quality real estate loans. The stellar line up of industry speakers and panel members generated rave reviews for this year’s Trends Conference.
The conference program led off with Adam Metz, former CEO of General Growth Properties (GGP).
the Equity Kicker is published biannually by the
wisconsin real estate alumni association, Inc. for the
benefit of its membership.
PresidentJeffrey cavanaughInvesco real estateNewport Beach, ca
executive Director and editorchristine Dicks wreaa, Inc.
Pewaukee, wI
2012 Membership RenewalIf you have not already renewed your membership for the 2012 calendar year, please do so today at the WREAA website of www.wreaa.org. Membership dues support and work toward advancing the world class UW Real Estate Alumni Network and Real Estate Program. Watch for your renewal notice to be delivered by email and by USPS mail. Call the WREAA Office at (262) 746-9030 if you need assistance in renewing your membership!
2
Minnesota Regional Director, Steven Buss
Steven Buss (MS 1994) joined the WREAA Board of Directors this Fall as the Minnesota Regional Director.
Steven has been with CB Richard Ellis since 1995 and is an Executive Vice President in the Capital Markets Institutional Group specializing in major investment transactions for single-tenant and multi-tenant industrial and office properties.
Steven has completed $4.5 billion worth of real estate sale assignments totaling 45 million square feet in Minneapolis and 39 other national markets since joining CBRE’s investment sale practice. He also successfully implemented a net leased capability within the Minneapolis Capital Markets Group and is a member of the national CB Richard Ellis Sale/Leaseback Group.
Prior to joining the Investment Properties Group, Steven opened and managed CBRE’s Financial Consulting practice in Minneapolis after relocating from the company’s Chicago office. Before joining CBRE, he held positions with the real estate development division of Wisconsin Power & Light (now Aliant Energy) and the multi-family asset management division of Freddie Mac.
Steven has consistently been one of the top sales people in the Minneapolis office and was notably the top CBRE salesperson in the Minneapolis market in 2005 and 2008. Amongst his awards, he joined the Colbert Coldwell Circle for performing in the top three percent nationally in 2005 and 2008. In recent years, he has focused on expanding the team’s industrial practice as a member of the Institutional Group’s National Industrial Team. He is a guest lecturer at the University of Minnesota and St. Thomas University, teaching seminars in investment property sales.
As a devoted Badger, Steve graduated from the University of Wisconsin with both a Master of Science in Real Estate and a Bachelor of Arts in Economics. He is a member of the Urban Land Institute (ULI).
WREAABoard of Directors
Executive CommitteePresident Jeffrey Cavanaugh (949) 222-6384
Vice PresidentRobert Perry (952) 984-3251
Secretary/Treasurer Gary Duff (310) 788-2253
Executive Director Christine Dicks (262) 746-9030
DirectorsColorado/Texas Dan Metzger (303) 953-3844
Northeast Brian Berry (202) 420-2180
Illinois Matthew Ewig (312) 845-8599
Minnesota Steven Buss (952) 924-4618
Southern California Alan Carmichael (949) 509-5006
Northern California Brandon Buza (415) 956-3100
Pacific Northwest James Geimer (206) 971-0161
Eastern Wisconsin Kristine O’Meara (414) 443-0700
Western Wisconsin Mike Hershberger (608) 240-2390
Southeast Tyler Edgarton (404) 601-9500
At-Large Director - Membership Shari Crivello (630) 250-2910
At-Large Director - Student Interface Sharon McCabe (608) 890-2493
At-Large Director - Recent Graduate Ashley Jenkins (312) 572-6397
At-Large Director Jonathan Block (212) 381-4150
Immediate Past President Gary Dreher (952) 278-0114
Administrative OfficeExecutive DirectorChristine Dicks
Member Services CoordinatorTracy Wundrow
Wisconsin Real Estate Alumni Association, Inc. P.O. Box 307 Pewaukee, Wisconsin 53072 Website: www.wreaa.org Telephone: (262) 746-9030 Fax: (262) 746-9031
Leads and Opportunities: A Forum for Every MemberWREAA continues to provide to members a forum where they may post leads and opportunities they wish to make other UW real estate alumni aware of. Post your next opportunity to the WREAA Leads and Opportunities Forum by simply logging onto the website. Here is a sampling of recent topics posted to the WREAA Forum:
• Seeking entitled, improved development land• Looking for Madison-based leasing broker• Real Estate Private Equity Manager Looking For Investments• Off-market Arizona (Tempe) Apartment for Sale• CBD Class A Office Building Acquisition Opportunity• Retail Shopping Center Financing
To subscribe to new Forum postings or to access the Forum, log in to the WREAA website (www.wreaa.org) and click on the Forums tab to post a topic or view topics that have been posted by others. The WREAA Office is pleased to offer assistance in posting new topics to the forum. Please call (262) 746-9030 for assistance.
3
Greetings
from
California.
For many of
us it has been
a very busy
fall so far with
the seasonal
ramp up in
transaction
velocity as well
as our industry’s
conference season. Having attended the
WREAA’s Real Estate Trends Conference
in Chicago, the Graaskamp Center’s fall
Board meeting in Madison and the fall
PREA Conference in Chicago, I think it’s
safe to say that the quality of our events
matches or exceeds anything that the
industry offers. The Trends Conference
this fall was our most successful to date
both in terms of attendance, the speed
with which it sold out and the quality of
the speakers and panels. Brian Eisendrath
and the conference team did a truly
spectacular job putting this event together
and continued the trend of further raising
the bar in terms of content quality. The
new venue, the Mid America Club atop
the Aon Building, literally and figuratively
took the conference to new heights. I’d
like to thank Brian Eisendrath, Chris
Dicks, Tracy Wundrow and everyone that
helped put this conference together for
your efforts, and I congratulate all of you
on a job very well done.
Planning is well underway for the 2012
Biennial Conference in Madison next
September 13-14. Please mark your
calendars now and plan to attend. The
conference chair is once again Brian
Eisendrath, and if recent history is any
guide, this Biennial will be the best ever.
As always we welcome and appreciate
your help in sourcing sponsors for the
Biennial. It is a tremendous opportunity
for your firm or others with whom you
do business to get their name in front of
a powerful real estate network while also
providing critical support to the real estate
program. If you have interest in being
a sponsor or know someone that might
be, please contact either Kris O’Meara
who is a doing a fantastic job leading
the fund raising charge on the Board, or
our Executive Director, Chris Dicks, and
they can provide detail on sponsorship
opportunities.
The Board continues to focus on providing
a consistent schedule of regional events
around the country to create opportunities
for our members to get together socially
and network professionally. On November
30th we held our first national networking
event when the Badger basketball team
went on the road to play North Carolina
in Chapel Hill. Every WREAA region in
the country hosted an event to watch the
game. Not only did alumni get to enjoy
watching the Badgers challenge one of
the top teams in the country on their home
court, it was a great opportunity to enjoy
some holiday cheer with fellow alums.
So what are we working on? The biggest
initiative that I want to share with you
is a joint effort between the Graaskamp
Center for Real Estate and the WREAA
to develop a strategy to promote and
raise the awareness level of the real
estate program, the center and the alumni
association. Working in concert with the
Center, we are in the process of issuing an
RFP to professional market research firms
to help us identify and survey our core
constituents and stakeholders to determine
each group’s level of awareness of the
strengths of the program and our services
and to identify the key dimensions that
each constituent group values most.
Jeff Cavanaugh, President
President’s Message
Constituents and stakeholders include
current and prospective students, alumni,
employers/recruiters and other industry
professionals. We anticipate engaging a
group with whom we will work before the
end of the year, kicking off the study in
January and concluding the analysis in the
spring.
Finally I would like to thank outgoing
Board Member Chris Kelly for his years
of service to the WREAA. Chris was an
engaged thought leader during his time
on the Board and was instrumental in
helping us to recruit top notch industry
professionals to participate in our
conferences. Bob Perry, who has served
for a number of years as the regional
director for Minneapolis, has been elected
as Vice President of the WREAA. Bob has
been and continues to be an outstanding
contributor on the Board and we are
grateful for his willingness to continue in
a leadership role going forward.
I’d also like to thank Matt Bertram for his
service on the Board leading the Southeast
region. Matt is relocating with Prudential
to New York and so is stepping down
from his Regional Director role in Atlanta.
I’d like to welcome new Board Members
Tyler Edgarton who will be taking over
for Matt in the southeast and Steven Buss
who has assumed the regional director
responsibilities in Minneapolis.
As always, the Board is here to serve you
and we welcome your comments and
feedback as well as your help and support.
Best wishes to you and your families for
a wonderful holiday season and a great
2012.
On Wisconsin!
4
I’m honored to have been asked by my fellow faculty, and our new Dean
François Ortalo-Magné, to once again chair the Department of Real Estate and Urban Land Economics at the Wisconsin School of Business. Together with Graaskamp Center Academic Director Morris Davis, Executive Director Michael Brennan, and all the faculty, staff, students and alumni and friends that comprise the Wisconsin Real Estate Program, we face an exciting and challenging time.
Primus inter pares among faculty, the department chair succeeds when all of us, faculty, lecturers, staff, alumni, students, and the rest of the UW and WSB, pull together. During my two decades in Madison I have observed a lot of pulling, a little pushing, mostly together, from all our stakeholders, not least our alumni; always with the greater good of the program in mind.
In some key respects, the nature of the department chair’s job is much like the CEO or other titular head of most other organizations, public or private. Even in nominally hierarchical business organizations, if the CEO has to depend primarily on her formal authority to motivate others, rather than persuasion; if she relies primarily on top-down promulgation of strategy and tactics rather than collaboration; if communication is in one direction rather than two; and if the firm’s vision is not well articulated and widely shared; then it’s likely the battle for that business’ long run success has already been lost.
Much of our real estate program’s success to date, the strength of our tradition and its continued evolution through innovation, comes about because we have pulled together so well. Now we’re pulling together especially strongly with the mother ship, the Wisconsin School of Business. As François takes up his new duties as Dean, we in real estate give up a leader who was of the first rank among department chairs, compared
to the leaders of our program or any other; an academic innovator (the Global Real Estate Master’s is only the latest example); and no less important, a truly world class scholar and teacher. But in return we get back a school leader who, building on the accomplishments of Mike Knetter and others, and with help from a wide range of faculty, staff, alumni and students, will help all of us move the entire WSB forward.
François has hit the ground sprinting. He’s already in the midst of several key initiatives on budgeting, staffing, marketing, improving the undergraduate curriculum, and further strengthening the research climate of the school, as well as the key external relations that any dean must tend to. These are not as mutually exclusive as they might appear. The key to healthy relationships with alums and other external stakeholders is to make sure the internal machine is humming, that we’re producing the best teaching and scholarship, and that all of us embody the Wisconsin Idea, taking the best of the University beyond the friendly confines of campus to the wider world.
We have lots of news, besides François’ ascension to the deanship. As you may know, Dean Ortalo-Magné retains his appointment as a professor of real estate; at Wisconsin, all deans, chancellors and other top administrators must pass muster as a full professor as well as an administrator. But naturally, given his decanal duties, François will not be able to take part in the normal life of the department. Therefore, at the moment our highest priority is the ongoing search for a new faculty member. It’s a challenge to find the right person, someone who combines the highest standards of scholarship, a deep commitment to teaching, and who embodies the Wisconsin Idea, with its emphasis on service to the community, local, national and global. But it’s a challenge we’ve met before, and I know we will do so again.
In January, Professor Abdullah Yavaş will return to Madison from the leave he took to serve as the founding president of Antalya International University in its eponymous city in Turkey. We welcome Abdullah back, and we recognize the importance of his contributions to the cause of higher education. The goal of Antalya University is to provide Turkey with a world-class institution of higher level teaching and research, that can hold its own with comparable European and North American universities. As Abdullah returns, Professor Tim Riddiough will take a leave to undertake a program of research at the University of Miami. We’re grateful to alum Mike Dubis and long-time friend of the program Adjunct Professor David Shulman, who will be taking on extra teaching responsibilities so there’s no drop-off to the AREIT program and our other finance courses during Tim’s leave. I’m especially appreciative of Tim’s work over the past year (and more) with our PhD students; on his return Abdullah will take on special responsibility for this small but key aspect of our program.
Of course with our small faculty we need to maintain a core presence here in Madison, and we owe a special thank you to Morris Davis, who has deferred his scheduled sabbatical for another year, in order to ensure continuity in the management of the Graaskamp Center and of the teaching program. The purpose of sabbaticals is not a “break” or time-out as such, but rather to give productive faculty a regular opportunity to develop research projects and teaching materials that require larger chunks of uninterrupted time. Thus there is a real cost to the department of such a deferral, as well as to the faculty member involved, but given our temporary constraints I endorse Morris’ decision. I look forward to supporting a fruitful sabbatical for him in the near future.
Our teaching is a team effort between the faculty and our terrific cadre of lecturers. We’ve recently added two alums, Mike
An Update on the Real Estate Program
5
Hershberger and Robert Schwarz, to that lineup. Hersh will focus on valuation and market analysis, and Robert on development.
We’re continuing to develop case study materials, with the dual objectives of strengthening our own curriculum, and, in due course, making these materials more broadly available, furthering our brand and giving a wider audience the benefits of “real estate the Wisconsin way.” Mike Hershberger is currently leading this effort, with a range of faculty, lecturers and alums providing input. If you have a potential case, Hersh would love to hear from you.
Speaking of case studies, under the leadership of alum Arif Qureshi, the undergraduate team of Andrew Berger, Laura Bodine, Pan Pan, Jason Udoff, Jane Van Eerden and Jimi Xie recently finished hot on the heels of host team Cornell to take second place in their annual real estate case study competition. I recently caught a recap of their outstanding presentation to Tom Landgraf’s development class. Our friend Professor Dan Quan of Cornell praised their work, and he’ll shortly put up links to our team’s presentation, as well as Cornell’s and third-place finisher Penn State.
I’d also like to thank our Faculty Associates Sharon McCabe and Joe Walsh for their many contributions. Sharon is now taking on increased responsibility for assisting our undergrads with their internships and job searches, along with her MBA duties. Joe has substantially expanded his role within the GREM, managing the relationships with our partner schools as well as overseeing
the student experience here in Madison; Assistant Professor Erwan Quintin is providing additional high level support to the GREM program.
Since the last chair’s letter, the Graaskamp Center has put on another terrific Board of Advisors meeting, with an excellent keynote address by UW Professor Jon Pevehouse on “Global Transformations in Our Decade,” and panels on a range of global and national real estate and economic issues. Congratulations to Michael Brennan and his program committee, and all the others that work hard to make these events so successful. Among other benefits, these board meetings provide high-level networking activities for our MBA students. That’s been so successful that going forward we’ll be bringing selected undergraduates to the board meetings as well.
There’s so much else to relate, as anyone who’s visited us recently can confirm. As department chair I will of course continue the tradition of writing regularly for the Equity Kicker, and I greatly appreciate the many opportunities the WREAA gives us to communicate with you directly. But don’t wait for the next letter to stay in touch. Check out our program blog, Wisconsin Real Estate Viewpoint; recent pages include several postings by current students, a link to Francois’ recent keynote to MIPIM Asia; and of course my own “Chart of the Week.” Email us with your thoughts, or even better, leave a public comment on the blog so your ideas get the widest possible dissemination. Let’s get the “sifting and winnowing” under way!
On Wisconsin!
Steve Malpezzi, Department Chair
Thank You 2011 Trends
Conference Sponsors
EvEnT SpOnSOrS
pATrOn SpOnSOrS
SAVE THE DATE ... UW Real Estate Career Fair ScheduledHire Wisconsin’s best and brightest real estate students! On Monday, January 30, 2012, the UW Real Estate Career Fair will take place at the University of Wisconsin Madison campus. Nearly 200 undergraduate and MBA students are available for internships and full-time employment. In one evening, you will be able to network with talented young real estate professionals who are ready and eager to make significant contributions to leading companies like yours at entry and mid-career levels. To get more information or to reserve a place for your company, contact Ben Schmidt at [email protected].
6
Tess Gruenstein and Eric Hansch Co-Presidents
Greetings from the Real Estate Club! The Fall ’11 semester has been
very exciting. With engaging speakers at club meetings, active involvement in the community, leadership from a mix of undergraduate and MBA students, and an exciting club trip to Denver, Colorado, the
Real Estate Club is in a strong position as we move into the holiday season. As Co-Presidents, our primary goals for the semester have been fostering a sense of community in the club through a new MBA-undergraduate mentoring program, developing future leaders in the real estate industry through networking opportunities and the club trip, and making an impact in our surrounding community with two community service days.
On behalf of the Real Estate Club, we would like to send our thanks to a number of people. First, a sincere thank you to the WREAA. Without the support of the alumni association, the Real Estate Club would not be in the position that it is today. We currently have the ability to bring reputable speakers from across the
country to Madison for club meetings and to experience many different commercial real estate markets through our club trips every semester. We could not do this without the generosity of our alums.
Next, we would like to thank the alums in Denver who were instrumental in orchestrating this Fall’s club trip, in particular Mike Komppa, Dan Metzger,
and Tyler Downs. We would also like to thank the number of alums who were able to make the networking reception on Wednesday night. Although we had a smaller group this semester, the trip was fantastic. The students had the opportunity to develop an understanding of a new market and experience assets of many different property types. The students saw a number of fascinating projects, some of which included: the Union Station redevelopment - a massive project involving a combination of infrastructure and private development designed to create a new urban hub immediately to the west of LoDo; a LEED-Platinum office building at 1800 Larimer; a brand-new high-end condo project known as Spire; and Riverfront Park, a master-planned neighborhood in downtown Denver.
Finally, we would like to thank the speakers who have taken the time to speak at our Real Estate Club meetings. This semester’s speakers have included: Michael Ashner, Chairman and CEO of Winthrop Realty Trust; Jamie Stolpestad, CEO of Allianz Real Estate America; Douglas Buck, head of the real estate practice at Foley & Lardner LLP; Colin Cassady, Senior Development Project Manager at Alexander Company; and Terrance Wall, Chairman and CEO of T. Wall Properties. The students have been able to develop an understanding of the many different facets of the real estate industry through these speakers and their time is greatly appreciated.
On behalf of the Real Estate Club, we would like to say how proud we are that we are part of the Wisconsin Real Estate tradition and hope to continue to develop relationships with many of the alums as we become future leaders of the real estate industry.
On Wisconsin!
Real Estate Club Update
SAVE THE DATE2012 Biennial
Wisconsin Real Estate ConferenceSeptember 13-15, 2012
University of Wisconsin – Madison Campus
7
Highlights from 2011 Trends Conference
A stellar line up of industry speakers and panel members generated rave reviews at this year’s Trends Conference.
Nonprofit Org.U.S. Postage
PAIDMilwaukee, WI
Permit No. 5654
WISCONSINREAL ESTATE
ASSOCIATIONALUMNI
P.o. Box 307Pewaukee, wI 53072
DEALS IN THE NEWS
In January, Geoffrey Kieffer (BBA 1971), a Principal with the J Street Companies (formerly Woodmark Commercial Services, LLC), represented Mathematica Policy Research, Inc. in a 125,000 square foot 15 year lease at 1100 1st Street, NE with Brian Berry (BBA 1989), Managing Director of Tishman Speyer. The transac-tion amount was in excess of $95,000,000.
Grandbridge Real Estate Capital recently originated and closed a $2,900,000 limited-recourse first mortgage loan secured by a medical office building. This loan refinanced an existing full-recourse bank loan. Located in Glendale, Wisconsin, the 25,044 square foot building was built in 2003 and offers great access, visibility and a strong rent roll. Grandbridge ar-ranged the financing through American Equity Investment Insurance Company. The 10-year fixed rate loan closed with an interest rate in the mid five percent range. Grandbridge Senior Analyst Dean Huber (BS 2000) assisted with the transaction.
Kristin Bertram (BBA 2006) has joined Hudson Advisors/Lone Star Funds in New York, New York and can be reached at [email protected].
Kimberly Cozza (BBA 2001) has joined Berkadia Commercial Mortgage as Vice President and can be reached at [email protected].
Adam Eisenberg (BS 2009) has joined REMAX Heritage in Las Vegas, Nevada as a Commercial Real Estate Associate and can be reached at [email protected]
Todd Jacobson (MS 1987) has joined the State Teachers Retirement System of Ohio in Columbus as a Senior Valuation Officer II, and works on the valuation (both inter-nal and review of external) of real estate assets owned by STRS Ohio. Todd can be reached at [email protected].
Ada (Xi) Chen (MBA 2010) has joined Colliers International Hong Kong as an Asst. Manager-Investment Services and can be reached at [email protected].
Jeramiah McGinnity (BBA 2004) has joined Perennial Properties as a Development Manager in Atlanta, Georgia and can be reached at jmcginnity@ perennialproperties.net
Names in the News is a regular feature of the Equity Kicker. Please submit news of your promotion, change in employer, or address change for inclusion to WREAA, Inc., P.O. Box 307, Pewaukee, WI 53072 or by email to [email protected].
Dustin Eddy (BBA 2002) has joined RED Development as a Real Estate Financial Analyst in Phoenix, Arizona and can be reached at [email protected].
Erica Wilms (BBA 2003) has joined Guggenheim Commercial Real Estate Finance as a Senior Associate in Chicago, Illinois and can be reached at [email protected].
Michael Samuel (MBA 2006) has joined Henderson Global Investors as an Asset Manager in Chicago, Illinois and can be reached at [email protected].
Josh Mesner (MBA 2010) has relocated from Los Angeles to Washington, DC and rejoined Strategic Investment Group in Arlington, Virginia. Josh can be reached at [email protected].
Rudy Rosen (BBA 2006) has joined Cohen Financial as a Senior Analyst in Chicago, Illinois and can be reached at [email protected].
Drew Breneman (BBA 2007) and Brian Hara (BBA 2009) started The Blackhawk Investment Group, LLC in Minneapolis, Minnesota and have bought $25M of real estate in the downturn. Reach Drew at [email protected] and Brian at [email protected].
Names in the News