Passco Cos. LLC appointed Larry K. Sullivan as president of the company following the resignation of former president William H. Winn, effective May 30.
With more than 30 years of experience directing real estate and syndication activities for institutional and private investors, Sullivan has served as CFO and COO of Passco Companies LLC for nearly 10 years.
NREI talked to Sullivan about how investors feel about multifamily investments and the possibility of a new commercial real estate bubble. An edited version of that interview follows:
NREI: Describe how investors' attitudes toward the multifamily sector and the commercial sector differ? Are they finding one more attractive than the other? Why or why not?
Larry Sullivan: Multifamily properties are currently the favored product type particularly since they have performed the best through the Great Recession. Even with the many job losses, people still need a place to live.
Many retail investors are concerned about the influence of Internet shopping and the current lack of income growth which negatively affects spending patterns. There is some thought that many markets are over-stored and with the exception of well-located neighborhood grocery-anchored centers, tenants continue to struggle.
NREI: There have been some rumblings of a new commercial property bubble starting. What do you think?
Larry Sullivan: There has been concern about how much rents can increase for multifamily residents in the face of anemic income growth. Interest rates are a factor in pricing real estate and most prudent buyers are locking in debt as long as possible, since rates are at historical lows.
There is some concern about the pricing of all real estate today since the investment environment is generally yield-starved given the low interest rates on treasury bonds creating a buying frenzy for high quality shopping centers and apartment communities.
NREI: Given how hot multifamily rental has been, when (or if) do you think multifamily purchase might start to come back?
Larry Sullivan: It is back. Cap rates in gateway cities are at historic lows –generally in the 4 percent to 4.5 percent range and even in secondary markets, investors compete frenetically for core assets.
NREI: How does that impact investors’ attitudes about the sector?
Larry Sullivan: There may be some investors who are concerned about the pricing of multifamily, but many argue that locking in long-term rates with the [government-sponsored entities] at 3 percent can justify 4 percent cap rates since the positive leverage along with solid rent growth provides a very strong return on investment. Also, the demographics with 80 million plus echo boomers entering the rental pool along with the slow down in new development creates a scenario that will provide significant rent growth for years to come.
Coldwell Banker Commercial Hires Principals
The New York office of Coldwell Banker Commercial Alliance welcomed Steve Pressler and Joanne Agoglia as principals with its newly launched asset management division.
Agoglia will head up owners’ representative services locally, overseeing the management of the properties, interacting with owners and tenants, initiating RFPs, reviewing contracts and participating in union negotiations.
Pressler will oversee the leasing of properties in a New York-based portfolio, interact with owners and arrange office and retail leases, as well as investment sales.
Both Pressler and Agoglia come from Promenade Real Estate Corp., where he was a co-founder and senior managing director. She was a principal and director of asset management for multiple commercial properties.
Ziff Welcomes COO
Ziff Properties Inc. appointed Christian Chamblee to COO.
Chamblee will also maintain his current role in the company as director of acquisitions. Since March of 2011 Chamblee has sourced and/or managed the acquisition of twelve commercial properties, in five states. He has also been heavily involved in mainstream branding and marketing efforts for the company.
Telos Brings on Flatt, Truszkowski
The Telos Group LLC added William “Will” R. Flatt as executive vice president and COO.
Flatt joins the Chicago-based real estate services firm after 16 years at Parkway Properties Inc. While at Parkway, a REIT, Flatt was involved in all aspects of real estate including leasing, management, financing and strategic planning. He began his career as vice president and asset manager and quickly moved to CFO and COO.
The firm also hired William “Bill” Truszkowski as senior vice president.
Truszkowski joins the the firm after nearly 14 years at The John Buck Co. Truszkowski has played a significant role in the leasing of major Chicago high rise buildings.
White Joins Ares Commercial Real Estate’s Board
Ares Commercial Real Estate Corp. appointed Brett White to its board of directors.
White was CEO of CBRE Group Inc. He joined that company in 1984, held various leadership positions beginning in 1997, and served as its CEO from 2005 until his retirement in 2012. After that time he joined Blum Capital Partners L.P., as a managing partner.
Newmark Grubb Knight Frank Hires Owen in D.C.
Brendan Owen is returning to the brokerage business by joining Newmark Grubb Knight Frank as executive vice president to bolster the company’s position in the Washington, D.C. market.
Owen comes from Vornado/Charles E. Smith, the D.C. division of Vornado Realty Trust, a fully integrated REIT, where he was chief leasing officer. For seven years he was responsible for the lease up of Vornado’s approximately 20 million-sq.-ft. portfolio in the D.C. metro area.
Morgan Named SVP at Lowe Enterprises
Peter S. Morgan joined Lowe Enterprises Real Estate Group as senior vice president to lead the firm’s expanding commercial property acquisition activities in the western U.S., with a particular focus on California, Oregon, Washington, Arizona, Texas and Colorado.
He will implement commercial investment strategies, targeting institutional quality assets ranging from $20 million to $100 million in value, and oversee all aspects of property acquisitions from sourcing and due diligence through closing.
Morgan has been in the commercial real estate industry for 29 years and has been involved in more than $900 million of acquisitions and dispositions. Previously, he was executive vice president at LaeRoc Funds Inc. where he completed $500 million of acquisitions and $350 million in financing. He also oversaw a portfolio of 1.8 million sq. ft. of commercial property in California, Oregon and Washington.
Cresa Welcomes Sattler to New York Office
The New York office of Cresa hired Robert J. Sattler as a vice president. Sattler will provide real estate advisory services for tenants locally and nationally, which include location planning, lease administration and transaction management.
Prior to Cresa New York, Sattler was a commercial real estate advisor at Newmark Grubb Knight Frank, where he served on several leasing teams, was involved with
transactions from both the landlord and tenant perspective and built a deal portfolio spanning several industries, including financial, legal, media, technology, education, healthcare and not-for-profit.
Johnson Capital Hires Barnard as VP
Johnson Capital welcomed Colin Barnard to the firm as vice president in the company’s recently opened Walnut Creek, Calif. office. Barnard will focus on arranging debt financing for income producing properties nationwide.
Prior to joining Johnson Capital, he was president of Barnard Capital Inc., a Bay Area-based commercial mortgage banker, which he co-founded in 2003. Before that, he was vice president of Sutter Commercial Capital, where he began his real estate finance career in 1995. Colin has arranged more than $600 million in bridge, permanent, and construction loans in Northern California and across the country.
Marcus & Millichap Makes Moves
Marcus & Millichap Real Estate Investment Services promoted two executives, James E. Kordell, who works in the Ontario office, and Joseph P. Thomas, who works in Fort Lauderdale, Fla., to the post of associate vice president investments.
Kordell joined the firm in October 2006 and advanced to senior associate in October 2009. He has received three sales recognition awards and is an associate director of the firm’s national multi housing group.
Thomas, also previously a senior associate, joined the firm in October 2006 and advanced to senior associate in March 2010. He is a director of the firm’s national multi housing group and an associate member of the special asset services division.
Marcus & Millichap additionally named Raj Ravi regional manager of the Orlando office. Ravi began his career with the firm in March 2012 as the sales manager in Tampa.
Marcus & Millichap Capital Corp. named Joohyun “Dennis” Bahn a director in the firm’s Manhattan’s office.
Bahn will arrange debt financing for all types of commercial real estate assets, including multifamily, retail, and office and industrial properties. Prior to joining MMCC, Bahn co-founded and was the managing partner for Artistic Cube Inc. and The Ground magazine and social networking site in New York.
Loughridge Joins CapRock
CapRock Partners, a commercial real estate investment and development company based in Irvine, Calif., has named Jake Loughridge vice president of acquisitions.
Loughridge will be responsible for expanding CapRock Partners’ acquisition efforts in addition to providing asset management support for the firm’s growing investment portfolio. He joins CapRock Partners from Mariners Cos., a Newport Beach, Calif.-based family office focused on distressed debt acquisitions throughout the United States. There, Loughridge was responsible for developing and implementing the execution strategy for all acquisitions and owned assets.
Cho New VP, Development at Thompson/Dorfman
Thompson | Dorfman Partners LLC, welcomed Gillian Sutton Cho as vice president of development.
Cho is responsible for managing project specific acquisition and entitlement activities. Previously, Cho served as vice president of development at Extell Development Co. in New York City, where she led project management initiatives for large scale mixed-use development projects in Manhattan.
Anderson Returns to Hines
The Phoenix office of Hines welcomed back Christopher “Chris” Anderson to the firm as managing director to oversee the company’s operations in Arizona and New Mexico. In that capacity, he will lead all operations including new business, development, property management and asset management.
Most recently Anderson served as vice president of development for Forest City Enterprises Inc. in Albuquerque, N.M., and was responsible for their Mesa del Sol 12,900-acre master-planned community. From 2000 to 2006 he had been with Hines in Phoenix.
Carson Welcomed as Director at Hammes Co.
Hammes Co. hired Ted Carson as national director of its real estate advisory services group.
Carson has more than 15 years’ experience providing commercial real estate advisory services, working with clients in the healthcare sector as well as other industries.
C&W Names Market Leader in L.A.; Industrial Pro in Phoenix
Cushman & Wakefield welcomed Lalo Diaz to the firm as market leader in Downtown Los Angeles.
Diaz, who worked at Cushman & Wakefield early in his career, will oversee recruitment goals, day-to-day activities, and continued growth of services for the Downtown Los Angeles office.
Diaz served as vice president, leasing at Thomas Properties Group Inc., where he managed a 3 million-sq.-ft.-portfolio in downtown Los Angeles.
Will Strong has been promoted to associate director-industrial services group in the Phoenix office of Cushman & Wakefield. Since joining the company, Strong has been involved in the sale and lease of more than 21 million sq. ft. of industrial and office properties with an aggregate value in excess of $800 million.
Enhrenberg Joins Studley’s Chicago Office
Jake Ehrenberg joined Studley’s Chicago office as an assistant director.
Ehrenberg will focus on advising public and private companies in the downtown market, counseling clients on the physical, operational and financial elements of office space decision-making and occupancy.
Prior to joining Studley, Ehrenberg was a research analyst with CBRE Group Inc.
Eastern Consolidated Brings on Associate Director
Nicole Rabinowitsch joined Eastern Consolidated as an associate director.
She will specialize in the sale and acquisition of commercial properties mainly in Brooklyn and Queens and will be working with Eastern’s director Gabriel Saffioti.
Prior to Eastern Consolidated, Rabinowitsch was an entrepreneur as the CEO and founder of a high-end retail tile and bath business with gross sales exceeding $1 million per year. She also previously worked as a real estate salesperson for the Corcoran Group, working in all areas of Brooklyn.
Cassidy Turley Names Assistant Property Manager
Cassidy Turley promoted Caroline Connor to assistant property manager in the firm’s Columbus office. Connor joined Cassidy Turley in August of 2010.
Prior to her promotion, Connor was a property administrator assisting in the management of a 25-building portfolio of industrial and office property. In her new position, Connor’s primary responsibilities include preparation of monthly financial statements, performance oversight of service contractors, leading regular property inspections and preparing lease abstracts for new tenant files. Her clients include DCT Industrial, Wells REIT and High Street Equities.
Hererra Joins Polsinelli
Polsinelli welcomes transactional real estate attorney Sandra I. Herrera to the national law firm’s Los Angeles office as an associate.
Herrera focuses her practice on real estate development, and simple and complex real estate transactions for various industries.
Davidson Hotels Hires LaCasse
Robert “Bob” LaCasse joined Davidson Hotels & Resorts’ team as general manager of the Hyatt Regency Newport in Rhode Island.
He brings with him more than 25 years’ experience in the hospitality industry. Most recently he served as regional director of operations for Interstate Hotels & Resorts where he oversaw the day-to-day operation of five hotels.
AmeridBid, KIKO Form JV
AmeriBid LLC and KIKO Auctioneers have launched a partnership to provide border-to-border real estate and personal property auction services to banks and corporate clients.
The auction process creates liquidity from these assets while eliminating the carrying costs for the seller.
AmeriBid, headquartered in Tulsa, Okla., is the premier global real estate auction leader specializing in the sale of commercial and residential real estate, land properties and other assets for lenders, servicers, receivers, bankruptcy attorneys, estates, private owners, investment companies and local, state and federal government agencies.