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									       Who’s Who
       in Real Estate
        Supplement to:

                                                                                                                                                                             Tuesday, December 8, 2009 / Vol. 124, No. 244

   Profiles Inside                        Residential prices, sales post gains in 2009
 ➤    CEO Don Ankeny has helped
                                                    Looming                         reached in August.
                                                                                                                                                       Detached Home Median Price Trends by Region and Month
                                                                                       The San Diego Metro area has had
                grow Westcore                  ‘shadow inventory’                   the highest year-over-year price                                                         $600K
                Properties — it
                                              may weaken rebound                    increase, with an 18 percent increase

                                                                                                                                            Median Price in U.S. Dollars
                now has offices                                                     in median price to $429,250 from                                                         $500K
                in Los Angles,                  By JEN LEBRON KUHNEY                $363,500 in 2008.
                San Francisco,                        The Daily Transcript             However, its prices have been the
                Denver and                   With two months of 2009 data to        most volatile of the four regions.                                                       $400K
                Switzerland.              be recorded and released, 2009 is            After a 7 percent increase in medi-
                                Page 8    shaping up to be a stronger year for      an price from January to February,                                                       $300K
                                          the detached housing market than          the price dropped 6 percent in March
                                          2008 in terms of sales and prices.        to $310,000.
 ➤    Stacey Hansen of Essex                 Year over year, the median price for      Median prices then increased                                                          $200K
                 Realty                   homes sold in San Diego County in         steadily through October, with the
                 Management cur-          October was $380,000, 4 percent           exception of a 10 percent month-to-                                                      $100K
                 rently manages           higher than the same month in 2008,       month increase from May to June,
                 850,000 square                                                                                                                                            East
                                          according to data from the North San      which was the highest month-to-                                                        Metro $0
                 feet of property in      Diego County Association of Realtors’     month percentage change for any San                                                    North    Jan    Feb     Mar    Apr May Jun         Jul   Aug    Sep    Oct
                 El Centro, San           HomeDex report.                           Diego region in 2009.                                                                  South                             Months in 2009
                 Diego and San               Year to date, sales have been higher      Despite the increases throughout
                 Marcos.                  as well. There have been nearly           the county, Leonard Baron, a San
                                Page 6    26,000 homes sold this year, a 20 per-    Diego State University real estate pro-                                                           Detached Home Sale Trends by Region and Month
                                          cent increase from 2008.                  fessor, said there are still deals out                                                    2000
                                             While the percentage changes           there for investors looking for rental                                                    1800
 ➤    San Diego attorney Robert           month to month have not been              properties, depending on the area.
                  Kolodny has                                                                                                                                                 1600
                                          extreme, the increases show signs of         Baron, who is a real estate investor
                  been running his
                                                                                                                                                   Number of Units Sold

                                          possible stabilization compared to the    outside of his academic work, said he                                                     1400
                  own boutique            wild downward spiral of the past two      is still aggressively trying to buy more
                  law firm focusing       years in terms of pricing and sales.      properties despite having purchased                                                       1200
                  on real estate             “I see us starting to enter a more     several since the beginning of the
                  work for nearly                                                                                                                                             1000
                                          normalized market,” said Rick             downturn.
                  35 years.               Hoffman, president and chief operat-         “The cash flow is phenomenal for                                                        800
                                Page 4    ing officer of the Coldwell Banker        buyers who can put down 20 percent
                                          Residential Brokerage in San Diego,       or more on some of these properties,”
                                          Temecula Valley and desert regions.       Baron said.                                                                                400
 ➤    William McLennan’s specialty           The story has been similar for all        Investors, however, are being pitted
                 as executive vice        four regions of San Diego County.         against first-time buyers as well.                                      South 200
                 president and               Since the beginning of the year,          Some aggressively priced homes are                                   North
                 chief real estate        median prices have increased.                                                                                                              Jan    Feb     Mar    Apr  May Jun       Jul    Aug    Sep   Oct
                 officer of Torrey           However, each area is seeing medi-               See Residential on 2                                                                                          Months in 2009
                 Pines Bank is in         an prices increase at different paces.
                 construction                NSDCAR’s data for East County

   estate arena.
                 and term financ-
                 ing in the real
                                          showed the October 2009 median
                                          price of $321,000 posting a 17 percent
                                          increase from January. However, it
                                                                                    Private equity and sale leasebacks
                                Page 7    was a 1.5 percent decrease from

 ➤    Daniel J. Ryan, principal of
                                          October 2008.
                                             South County was similar, with its
                                          flat median price of a detached home
                                                                                    — everybody’s doing it
                  Veralliance             sold in October $342,000 in both                     By BARBARA KREIS                           minuscule compared to the total                                         percent of the property’s value. The
                  Properties Inc.,        2008 and 2009, and a 2 percent            San Diego County Commercial Association of Realtors   costs of their occupancy. A compa-                                      sale leaseback provides for the effec-
                  focuses on the          increase since January.                     From Wall Street’s major players                    ny’s real estate should be viewed as                                    tive depreciation of land, allowing
                  company’s four             This year South County has not had     to Main Street’s family-owned busi-                   an operating asset, not an invest-                                      for the total lease payment to be
                  pillars of design:      month-to-month changes higher than        nesses, companies are using some-                     ment asset.                                                             deductible as an expense for tax pur-
                  livability, respon-     a 5 percent increase or lower than a 2    one else’s relatively cheap money to                     There are many reasons for con-                                      poses. And expensed lease payments
                  sibility, productivi-   percent decrease.                         own their corporate real estate. The                  sidering a sale leaseback, including                                    increase book income, especially in
                  ty and artistry.           The North County HomeDex               company then can grow its core                        capital needs, loans/mortgages com-                                     the early years of the lease.
                                Page 5    region has had a 5 percent median         business with the net proceeds from                   ing due, creating positive leverage,                                       Additionally, as the seller of the
                                          price increase year over year, while      the sale.                                             enhancing the sale of the operating                                     real estate, the opportunity exists to
                                          having the steadiest upward trend           Real estate is usually the largest                  company, enabling buyout of owner-                                      tailor the lease to provide assurance
 ➤    Ed Smith Jr. serves as current      since January.                            asset group on a company’s balance                    ship interests or even being able to                                    of occupancy.
                  president of               North County’s median price of         sheet, and the cost related to occu-                  take advantage of acquisition oppor-                                       There is considerable discussion
                  the statewide           $430,000 in October was $22,000           pancy of the real estate typically its                tunities.                                                               about attempting to make real estate
                  organization            higher than the median price of a         second largest cost of doing busi-                       Just as the reasons are numerous,                                    and its financing a commodity.
                  California              home sold in the same region in 2008.     ness. Yet, most companies pay less                    so are the advantages. A few to con-                                    However, unlike any other asset
                  Association of             The region has watched its median      attention to maximizing its real                      sider include changing the real                                         class, every building is unique. The
                  Mortgage                price increase monthly except for         estate effectiveness than the enor-                   estate from an investment asset to an                                   uses to which a building can be
                  Brokers, one of         March, September and October.             mous effort they expend in reducing                   operating asset, which makes eco-                                       placed, and the methods of using its
                  the largest trade          October’s median price was 8 per-      the operating expenses of their core                  nomic sense in most cases and                                           financial power, are almost limitless.
   organizations in California.           cent lower than this year’s median        business. Often, many of the well-                    allows the cash to be reinvested into                                   To generalize is a mistake. Not to
                                Page 3    price peak for the area of $465,000,      attended-to operating costs are                       the relatively higher returns of the                                    explore the possibilities is a larger
                                                                                                                                          core business — and which can often                                     mistake.

Poway commercial real estate market                                                                                                       be quite significant. A sale leaseback
                                                                                                                                          converts the company’s real estate
                                                                                                                                          into cash. This cash can be used as
                                                                                                                                                                                                                    Kreis is senior vice president/team
                                                                                                                                                                                                                  leader of Sperry Van Ness/Guardian,
                                                                                                                                          working capital, for debt retirement,                                   a full-service real estate firm in San
presents opportunities for savvy tenants                                                                                                  a new investment or it can provide a
                                                                                                                                          “cost efficient” financing alternative.
                                                                                                                                                                                                                  Diego. She is on the board of direc-
                                                                                                                                                                                                                  tors of the San Diego County
      By GREG THORNBURGH                  they expand their operations,             the property’s landlord to the table                  Additionally, only this vehicle pro-                                    Commercial Association of Realtors
             CB Richard Ellis             employ more people and, finally,          and achieve a reduction in lease rate,                vides 100 percent financing — in                                        and a 2010 state delegate for the
  The stock market is reaching highs      lease more space,” Ellis said.            a significant tenant improvement                      contrast to most conventional loans,                                    California Association of Realtors.
not seen in over a year, federal stim-       Markets that cater to smaller, less    allowance, free rent and a right to                   which are generally 60 percent to 80                                              Source Code: 20091208crb
ulus funds are flowing and Goldman        mature firms (B markets) like Poway       terminate the lease early.
Sachs just issued the first CMBS deal     are the last markets to feel the bene-       “We went from a boiler plate offer
in over nine months — so is the           fits of an economic rebound.              by the landlord to renew our client
economy and, consequently, the               “So what we have, particularly in      early at the same lease rate, to hun-
commercial real estate market truly
on the rebound?
                                          these B markets, is a window of
                                          opportunity for businesses to make
                                                                                    dreds of thousands of dollars of con-
                                                                                    cessions,” Ellis said. “This was a win-
                                                                                                                                                                      The Daily Transcript’s 2009
  “Landlords would have you think
so,” according to Matt Ellis of CB
                                          strategic moves to lower real estate
                                          costs and position themselves for the
                                                                                    win for the landlord and the tenant, as
                                                                                    the landlord prevented vacancy and                                                    Deals of the Week
Richard Ellis (NYSE: CBG). “But the       rebound,” Ellis said.                     we positioned our client for better eco-
reality is that the commercial real          Brian Klepacki, also of CB Richard     nomics and flexibility going forward.”                                           In 2002, The Daily Transcript began publishing
estate market lags other economics        Ellis, advises his clients that now is       Serving clients including Johnson
indicators.”                              the time to create a strategic lease.     Consulting Engineers, Hydro-                                                   the biggest real estate deals of the week —
  Consider that after the residential     “Tenants are in a position to leverage    Scientific West and SpitzLift, Ellis                                           Commercial/Leasing and Commercial/Sales — in
housing bust in May 2007 that ignit-      the opportunities in the market and       and Klepacki have completed more
ed the recession, the commercial real     secure concessions from their land-       than 35,000 square feet of lease                                               its Real Estate section. Real Estate Editor
estate market didn’t start declining      lords like fixed rate options, termina-   transactions in Poway since                                                    Richard Spaulding continues to select the most
for over a year, Ellis said.              tion rights and free rent.”               September.
  “So suppose for a moment that the          Ellis and Klepacki both exclusively       “There are opportunities for any                                            newsworthy deals, which are published every
market truly is coming back and a         represent tenants in the leasing and      company willing to take the time to                                            Tuesday and Friday. Throughout this special
survey of economists shows there is a     purchase of commercial real estate.       look at its lease and assess the mar-
lot of concern that this recovery         They recently completed a deal in         ket, no matter when the company’s                                              report, The Daily Transcript presents a selection
could be both weak and temporary,         Poway for Environmental Control           lease expires,” Klepacki said.                                                 of some of the biggest transactions of 2009. For
then we can expect the commercial         Systems where the tenant still had
real estate market to take a year or      more than a year and a half on its          Thornburgh is a communications                                               a complete listing, visit our Web site at
more to feel the effects of any recov-    lease. Despite the term conditions,       specialist with CB Richard Ellis.
ery as money flows back into firms,       Ellis and Klepacki were able to bring               Source Code: 20091208crc
2                                       TUESDAY, DECEMBER 8, 2009 •      Who’s Who in Real Estate • THE DAILY TRANSCRIPT                                    ®

Renee Savage honored with IREM’s Presidential Achievement Award
       Source: Institute of    has worked in the property      butions to the real estate         for the past seven years on the   the IREM Key Award three
     Real Estate Management
                               management industry since       industry and for demonstrat-       chapter’s Executive Council.      times, CPM Candidate of the
  Renee Savage is the senior   1989 and has been a certified   ing an exceptional level of pro-     Savage has spent many years     Year Award and the CPM of
vice president of property     property manager (CPM) since    fessionalism and leadership.       as an industry volunteer and      the Year Award. Savage also
management for       Capital   2002.                             “Renee is a true professional.   leader. She was the 2008 pres-    serves as an IREM Governing
Growth Properties Inc. , an      Savage was awarded the        She tackles every project with     ident of the San Diego Chapter    Councilor at the national level
accredited     management      prestigious      Presidential   passion and dedication,” said      of IREM and has served in         and was appointed to serve on
organization through the       Achievement Award of the San    Nicole Baker, IREM San Diego       other leadership roles with       IREM National’s Student and
Institute of Real Estate       Diego Chapter of IREM for       Chapter’s executive director,      IREM San Diego over the           Academic Outreach Advisory
Management (IREM). Savage      making extraordinary contri-    who has worked with Savage         years. She has been awarded       Board.
                                                                                                                                       Savage is also a past presi-
                                                                                                                                    dent of the San Diego County
                                                                                                                                    Apartment Association and
                                                                                                                                    has served in other leadership
                                                                                                                                    and chair positions for the
                                                                                                                                    organization. She served a
                                                                                                                                    seven-year term on SDCAA’s
                                                                                                                                    board of directors. She cur-                        Savage
                                                                                                                                    rently serves on SDCAA’s
                                                                                                                                    Budget & Finance and                    finance to strategic analysis to
                                                                                                                                    Strategic Planning commit-              problem solving and mentor-
                                                                                                                                    tees. The SDCAA has present-            ing and leading a team. She
                                                                                                                                    ed Savage with the Regional             said the thing she loves most
                                                                                                                                    Property Manager of the Year            about her career is that every
                                                                                                                                    Award, President Award and              day is different, and she loves a
                                                                                                                                    most recently in 2007 the pres-         challenge. Being a member of
                                                                                                                                    tigious Industry Achievement            the IREM organization has
                                                                                                                                    Award — Savage was the                  given Savage the support and
                                                                                                                                    youngest recipient to ever              network to realize that a solu-
                                                                                                                                    receive this award.                     tion to any problem is only a
                                                                                                                                       Savage has brought her pas-          call or e-mail away. Through
                                                                                                                                    sion of real estate to under-           the IREM educational pro-
                                                                                                                                    graduate and graduate stu-              grams, Savage has been able to
                                                                                                                                    dents at many San Diego col-            involve many of her industry
                                                                                                                                    leges and universities. Her goal        peers in both teaching and
                                                                                                                                    is to get the word out to young         attaining designations.
                                                                                                                                    people about opportunities in              For more information about
                                                                                                                                    real estate and property man-           IREM, visit
                                                                                                                                    agement. Her love of the                    Source Code: 20091208crj
                                                                                                                                    industry has many facets, from
                                                                                                                                                                                  Continued from Page 1
                                                                                                                                         The Daily                          getting dozens of offers within
                                                                                                                                         Transcript                ®        days of being listed, which is
                                                                                                                                                                            helping to stabilize prices,
                                                                                                                                           Founded April 3, 1886            according to San Diego indus-
                                                                                                                                                      try observers.
                                                                                                                                    ROBERT L. LOOMIS, Publisher               But the question looms
                                                                                                                                           George Chamberlin,               about “shadow inventory”
                                                                                                                                            Executive Editor                banks may be holding on to.
                                                                                                                                            Joseph Guerin, Editor             Despite having the highest
                                                                                                                                    Richard Spaulding, Real Estate Editor
                                                                                                                                                                            number of notices of default on
                                                                                                                                           Jennifer Chung Klam,
                                                                                                                                           Special Sections Editor          record, 2009 has had fewer
                                                                                                                                         Tracye Grimes, Web Editor          actual foreclosures than 2008,
                                                                                                                                    Ellen C. Revelle, Publisher Emerita
                                                                                                                                                                            leading some to think a new
                                                                                                                                        July 31, 1910 - May 6, 2009         wave of inventory could hit the
                                                                                                                                                                            market, while others said
                                                                                                                                          San Diego Daily Transcript        banks will release it slowly in
                                                                                                                                               P.O. Box 85469               order to keep demand — and
                                                                                                                                          San Diego, CA 92186–5469          prices — up.
                                                                                                                                               (619) 232-4381
                                                                                                                                           Web site:
                                                                                                                                                                               Source Code: 20091208cra
                                                TUESDAY, DECEMBER 8, 2009 •        Who’s Who in Real Estate • THE DAILY TRANSCRIPT                                   ®

Close-up: Ed Smith Jr.

CAMB statewide president pursues American Dream with passion, drive
  By JEN LEBRON KUHNEY                America by the CQ Press in                                            clients’ trust to help them        fessional life when he became         Association of Mortgage
         The Daily Transcript         2008, Smith remembers                                                 make what would likely be the      involved with the California          Brokers (NAMB) and has been
   Ed Smith Jr. has talked pol-       Compton of the 1950s and ‘60s                                         biggest purchase of their lives.   Association of Mortgage               racking up frequent flyer miles
icy with Congress. He’s con-          as a close-knit neighborhood                                             The “awesome responsibili-      Brokers’ San Diego Chapter.           to Washington, D.C., in recent
sidered an expert witness for         where people looked out for                                           ty” of helping people obtain          Initially, he joined for educa-    years.
finance law. He has been on           one another and kids could                                            the financing they needed          tion purposes, but the more he          So much so that he is con-
YMCA boards and been pres-            play on the streets without                                           resonated      with     Smith’s    became involved with CAMB,            templating running for the
ident of the California               worrying about violence or                                            upbringing that a home, not a      the more he realized how being        NAMB presidency when is
Association of Mortgage               gang activity.                                                        house, becomes the hub of a        a part of it could help the           term is up.
Brokers, one of the largest              His father was a music                                             family.                            industry as a whole, and in             “I got the bug. I’ve got an
trade     organizations      in       teacher who dabbled in real                                              While he was growing his        turn, help average homebuy-           interest and I love the policy
California. He’s seriously con-       estate while his mother, the                                          business, he was also growing a    ers.                                  side,” he said.
sidering running for presi-           “rock” of his family, stayed at                                       family of his own.                    It’s no secret the housing           While Smith acknowledged
dent     of    the    national        home to raise Smith and his                                              Smith married and started a     industry has been in turmoil          there are more struggles ahead
Association of Mortgage               four younger siblings.                                                new family, while keeping in       the past few years, and while         for the mortgage industry, he
Brokers after he’s helped hun-           His father and mother’s hard                                       touch with his daughter who        the mortgage industry took a          said he is prepared to lobby for
dreds of people buy homes             work to raise their family in a                                       was growing up in Los Angeles.     downturn, Smith rose through          the industry he is so passionate
during the past 27 years.             home they owned resonated                                                While he was able to leave      the ranks.                            about.
   And he did it without ever         with Smith, though he didn’t                                          behind his old neighborhood,          After being the president of         Smith has an associate of
obtaining a bachelor’s degree.        realize it until he was older.                 Smith                  his ex-girlfriend and her          the local CAMB chapter and            arts degree and is just a few
   “The real estate business             One thing he did realize                                           daughter could not.                serving on boards, Smith was          units short of obtaining a bach-
allows people to pursue the           though, was that working hard      Pendleton with no desire to           His daughter was spending       elected by fellow members as          elor’s degree, but he has not let
true American Dream,” he said.        could lead to a nice little bun-   return home to Los Angeles.        time with what Smith               Broker of the Year in 2007            his education hold him back.
“You don’t have to be a brain         dle of spending money.               He knew his neighborhood         described as “the wrong crowd”     and was nominated for the               “I chose a different path than
surgeon to do well, but if you           From an early age, Smith        was transforming into a dan-       and became part of a danger-       award the following year. In          most,” he said. “But it’s part of
have the passion and the drive,       was entrepreneurial. When he       gerous and challenging place       ous world.                         2008, Smith was elected               the reason I want to protect the
even someone with a high              was 13, he would find broken       for a young African-American          On June 15, 1992, Smith got     president of the statewide            industry. ... Success in this
school education can make             television sets and radios, fix    man like himself.                  a phone call no parent ever        organization and will fill his        business comes down to per-
something of themselves.              them in his garage and sell          He felt San Diego offered        wants to receive.                  term through 2010.                    sonality and your desire to
   “This business gives you           them for a profit.                 him new opportunities and             His daughter was murdered.         He currently sits on the           carve out your niche.”
opportunity based on your                Smith was encouraged in his     stayed with a buddy until he          She and four other people       Government                  Affairs
efforts, and that drives me           studies and was a hard worker,     could get his feet on the          were found dead in her apart-      Committee for the National               Source Code: 20091208crd
every day.”                           but any possible plans for edu-    ground.                            ment. Police have yet to name a
   Despite his success in his         cation were put on hold when         By 1982, Smith started buy-      suspect in the case.

                                                                                                                                               Wishing You Happy Holidays
industry, the road he took to         his high school sweetheart         ing and selling houses. Soon          “That was devastating for
get to where he is now has not        gave birth to his eldest daugh-    after, he hopped into the mort-    me,” Smith said. “I vowed to
always been easy.                     ter when he was 18.                gage business doing FHA and        change my whole life after that.
   Smitty (as friends call him)          At 19, Smith left home and      VA loans under a man named         I wanted to help at-risk kids.”
grew up in a “humble” home            joined the Marine Corps.           John Gardella, someone Smith          Smith became involved with
the heart of Compton in East             After serving in Vietnam,       credits with “giving (him) a       the YMCA and eventually sat
Los Angeles.                          Smith hopped in his little yel-    career.”                           on its board.
   Though it was named 17th           low Baja Volkswagon and              Smith fell in love with real        His desire to serve the com-
most dangerous city in                headed south from Camp             estate and the idea of building    munity carried over to his pro-

San Diego’s ever-changing real estate market
    By MATT BATTIATA                  start lending money again, or      tors of the economy as well?       modify borrower’s loans in
    Special to The Daily Transcript   would the credit markets stay         My predictions were as fol-     order to prevent foreclosures.
  At the end of 2008, I               tight? Would the nation’s          lows: Left to their own voli-      The real estate market would
appeared on various TV and            large lenders make a real,         tion, the banks would not          continue to drop, and fore-
radio news programs to                meaningful effort to stem the      make a good faith effort to        closures and defaults would
make predictions about what           tide of foreclosures, or would     modify loans or lend out           skyrocket in San Diego
2009 would mean for the               the number of mortgage             their newfound money, but          County. 2009 would be the
San Diego real estate market.         defaults and foreclosures          would instead hang onto it to      Year of the Short Sale, and                                                  2550 Fifth Avenue • Suite 1050
Would real estate prices con-         continue to rise? And finally,     brace for the coming wave of       the pain would no longer be                                                      San Diego, CA 92103
tinue to drop, or were we at          what effect would the finan-       foreclosures. In other words,      restricted to the subprime
the bottom? How would the             cial crisis have on the rest of    the bailout would do very lit-     and first-time buyer markets,          Phone (619) 814-1688 • Fax (619) 814-1690
$700 billion government               the economy? Would the             tle to help the real estate
bailout affect the market?            pain be limited to the resi-       market, homeowners and                  See RE market on 5                      
Would it trickle down to              dential real estate market         businesses unless the banks
homeowners and local busi-            and the stock market, or           were forced — forced — to
nesses? Would the banks               would it spread to other sec-      start lending again and to

Residential builders announced for
Carlsbad master-planned community
Brookfield Homes, William             rooms, the one- and two-story      nic area with barbecues, pad-
                                      homes are expected to be           dle courts, grass playing areas
Lyon Homes, D.R. Horton to            priced      from     the    low    and a yoga exercise circle.
 build new neighborhoods              $600,000s.                            Along with recreation center
                                         According to Brookfield         and neighborhood construc-
      By JAN PERCIVAL                 Homes, Rockrose at The             tion, Brookfield Homes will
    Special to the Daily Transcript   Foothills will offer 101 new       build several neighborhood
   Three residential builders         homes ranging from 2,116 to        pocket parks and a trail system
have new homes coming soon            3,167 square feet. The single-     at The Foothills. Across the
at the first master-planned           family detached homes will         street from the community, the
community to be built in              have three to four bedrooms        Carlsbad Unified School
Carlsbad       since     2006.        and two to 4.5 bathrooms.          District plans to break ground
Construction continues on             With a sales center expected to    in 2010 on a new high school
schedule toward a 2010 grand          open in January 2010,              campus to open in fall 2013.
opening for new homes within          Rockrose pricing is anticipated    Future phases are expected to
the neighborhoods at The              to start in the low $600,000s.     include a fourth single-family
Foothills.                               With an information center      new home neighborhood, a
   Builders Brookfield Homes          planned to open in January         commercial office building
(NYSE: BHS) and William               2010, Alcéa at The Foothills by    and an RV storage facility.
Lyon Homes are framing                D.R Horton features 84             Another future amenity is a
model homes within the new            detached          condominium      new 13.5-acre city of Carlsbad
master-planned community              homes with 1,747 to 2,052          community park, planned as a
located off Cannon Road, just         square feet, three to four bed-    lighted, multi-field soccer
east of El Camino Real in             rooms and 2.5 to three bath-       complex.
Carlsbad.                             rooms. Pricing is expected to         Nearly half of the property
   D.R. Horton plans to begin         start in the low $500,000s.        at The Foothills master
construction in December for             For information on new          planned      community        in
its model home complex.               homes for sale at The Foothills    Carlsbad will be preserved as
   Expected to open in                at         Carlsbad,       visit   permanent open space, pro-
February 2010 is Blossom             viding a key connection to the
Grove at The Foothills by                When completed, The             city’s habitat management
William Lyon Homes. Offering          Foothills will have 404 homes      program.
110 single-family Carlsbad            on 157 acres. A 2.6-acre resi-
homes with 1,992 to 2,840             dents-only Swim Club will            Percival is owner of Scribe
square feet, three to five bed-       include a resort-style swim-       Communications.
rooms, and two to three bath-         ming pool, children’s pool, pic-    Source Code: 20091208crm

Framing is under way at Blossom Grove at The Foothills in Carlsbad by William Lyon Homes.
4                                                TUESDAY, DECEMBER 8, 2009 •         Who’s Who in Real Estate • THE DAILY TRANSCRIPT                                 ®

Close-up: Robert Kolodny

Boutique law firm builds loyal client base
      By DOUG SHERWIN                 friends opening a restaurant in     developer while Pressman                                              and private companies and           tions and helping to negotiate
         The Daily Transcript         Del Mar called Dini’s. The          joined the bench in 2002. He                                          individual investors in all phas-   transactions.”
   San Diego attorney Robert          fledging foodies, however, did-     currently is the supervising                                          es of the real estate transaction      It is that involvement that
Kolodny has been running his          n’t have any money for legal        judge of San Diego Superior                                           process, from acquisition to        has kept him invigorated after
own law firm — a boutique             fees. Since Kolodny, who had        Court’s North County division                                         leasing or sale.                    more than three decades of
shop focusing on real estate          just passed the bar exam after      in Vista.                                                                The firm also works with sev-    practicing law.
work — for nearly 35 years.           graduating from California             Many of the firm’s original                                        eral banks, escrow companies,          “I thought that in practicing
   Not bad for a self-described       Western School of Law, didn’t       clients have stayed with                                              brokers and title companies         law after many years it might be
“un-employable” law school            have any clients, he took them      Kolodny & Pressman through                                            and has assisted large land-        something that I grew tired of,”
graduate whose first legal fee        on, agreeing on a meal for his      the years as they have grown                                          holding companies in the enti-      he said. “But I find that I’m still
came in the form of food.             initial payment.                    into some of San Diego’s lead-                                        tlement process, negotiation        one of those lawyers who thor-
   Today, Kolodny & Pressman             His friends later opened         ing builders and developers.                                          and sale of some of their larger    oughly enjoys most aspects of
isn’t much bigger than the one-       three other establishments,            “We realize that the type of                                       parcels of real estate.             the practice of law.”
man operation Kolodny opened          including one that still operates   clients we represent obviously                                           The firm represents some of         He particularly likes being
in 1975. But the firm is as           in Carlsbad, and Kolodny con-       could go to any law firm they                                         the larger car dealers in town as   able to take a difficult set of
strong as ever, maintaining a         tinues to represent restaurants     want,” Kolodny said. “We’re for-                                      well.                               facts, analyze it and develop a
loyal client base and constantly      and restaurant chains as part of    tunate to have an opportunity                                            “We provide an alternative to    successful strategy for his
receiving referrals.                  his practice.                       to represent them and have                                            larger firms in that we are very    clients.
   “I just decided that I wanted         Kolodny took on a partner,       (built) meaningful relation-                                          focused on what we do,”                “I feel fortunate in that my
to go out and see if I could start    Howard Katkov, in 1976. Then,       ships.                                         Kolodny                Kolodny said. “And our clients      clients have afforded me the
a law practice and do it on my        in the mid-’80s, litigator Joel        “And when you have long-                                           have afforded us the opportuni-     opportunity to be a cog in the
own,” Kolodny said. “I just           Pressman joined the duo to          term relationships with princi-     sense of what their goals are,    ty to take on a role with their     wheel of their success,” he said.
thought it was a challenge and        form Kolodny, Katkov &              pals and presidents of success-     and hopefully you can be a part   businesses. We are not just act-       Throughout his lengthy
decided I would see if it would       Pressman.                           ful companies, you get a sense      of that team in a meaningful      ing as scriveners, drafting docu-   career, Kolodny has experi-
work.”                                   Katkov eventually left to        as to what they’re looking for in   way.”                             ments, but (have) a pretty active   enced the many booms and
   His first clients were a pair of   become a major real estate          terms of your role. You get a         Kolodny represents public       role in both analyzing transac-     busts of the real estate market.
                                                                                                                                                                                    He’s lived through various
                                                                                                                                                                                    financial crises, including the
                                                                                                                                                                                    savings and loan collapse of the
                                                                                                                                                                                    late ‘80s and early ‘90s and the
                                                                                                                                                                                    burst of the dot-com bubble a
                                                                                                                                                                                    decade ago.
                                                                                                                                                                                       Overall, he’s handled more
                                                                                                                                                                                    than $1 billion in loan workouts
                                                                                                                                                                                    and restructuring.
                                                                                                                                                                                       The experience has given him
                                                                                                                                                                                    a unique insight to deal with
                                                                                                                                                                                    the current recession, caused in
                                                                                                                                                                                    part by one of the worst hous-
                                                                                                                                                                                    ing markets ever.
                                                                                                                                                                                       Kolodny feels the current
                                                                                                                                                                                    downturn could be much deep-
                                                                                                                                                                                    er than any of the previous
                                                                                                                                                                                       “Not only are we facing all of
                                                                                                                                                                                    the problems on the residential
                                                                                                                                                                                    side, but the amount of com-
                                                                                                                                                                                    mercial loans that have not yet
                                                                                                                                                                                    been acknowledged to be as
                                                                                                                                                                                    problematic as they are will
                                                                                                                                                                                    make this a longer, deeper and
                                                                                                                                                                                    more problematic cycle to get
                                                                                                                                                                                    through,” he said. “And (it) will
                                                                                                                                                                                    take a lot of creativity on both
                                                                                                                                                                                    behalf of the borrowers, the
                                                                                                                                                                                    guarantors and the lenders.”
                                                                                                                                                                                       Kolodny said the crisis is par-
                                                                                                                                                                                    ticularly troubling because
                                                                                                                                                                                    everyone is feeling its effects.
                                                                                                                                                                                       “It’s very, very difficult
                                                                                                                                                                                    because I have a lot of clients
                                                                                                                                                                                    who are wonderful developers,”
                                                                                                                                                                                    he said. “They didn’t do any-
                                                                                                                                                                                    thing wrong, but the market
                                                                                                                                                                                    turned and values dropped and,
                                                                                                                                                                                    in many cases, the loans exceed-
                                                                                                                                                                                    ed the value of the real estate
                                                                                                                                                                                    and that created problems.”
                                                                                                                                                                                       These days, Kolodny &
                                                                                                                                                                                    Pressman receives numerous
                                                                                                                                                                                    calls from borrowers and guar-
                                                                                                                                                                                    antors who need help restruc-
                                                                                                                                                                                    turing loans.
                                                                                                                                                                                       Even banks have come to the
                                                                                                                                                                                    firm asking for help “in trying
                                                                                                                                                                                    to assess from a business per-
                                                                                                                                                                                    spective how best to represent
                                                                                                                                                                                    their interests in deciding
                                                                                                                                                                                    whether to foreclosure or to do
                                                                                                                                                                                    some sort of loan restructure
                                                                                                                                                                                    with borrowers or guarantors,”
                                                                                                                                                                                    he said.
                                                                                                                                                                                       But through all the gloom,
                                                                                                                                                                                    the firm is still handling some
                                                                                                                                                                                    positive transactions.
                                                                                                                                                                                       “We’re fortunate in that,
                                                                                                                                                                                    because of the long-term rela-
                                                                                                                                                                                    tionships we’ve had with a
                                                                                                                                                                                    number of both public and pri-
                                                                                                                                                                                    vate builders, we’re still actively
                                                                                                                                                                                    involved in the sale of various
                                                                                                                                                                                    properties and subdivisions,”
                                                                                                                                                                                    Kolodny said.
                                                                                                                                                                                        Source Code: 20091208cre

                                                                                                                                                                                    EastLake’s Atrium
                                                                                                                                                                                    wins award for
                                                                                                                                                                                          By JAN PERCIVAL
                                                                                                                                                                                         Special to the Daily Transcript
                                                                                                                                                                                      The best in sales and mar-
                                                                                                                                                                                    keting achievements by
                                                                                                                                                                                    Southern California home-
                                                                                                                                                                                    builders were celebrated
                                                                                                                                                                                    recently in Anaheim, and
                                                                                                                                                                                    Atrium at EastLake Vistas by
                                                                                                                                                                                    Davidson Communities was
                                                                                                                                                                                    awarded     Best     Interior
                                                                                                                                                                                    Merchandising of a Model
                                                                                                                                                                                      Building new homes in San
                                                                                                                                                                                    Diego since 1978, Davidson
                                                                                                                                                                                    Communities won top honors
                                                                                                                                                                                    for Atrium’s Plan 2 model
                                                                                                                                                                                    home in the city of Chula
                                                                                                                                                                                    Vista. Design Lines Interiors
                                                                                                                                                                                    of San Diego shared the
                                                                                                                                                                                    award for its Palm Beach-
                                                                                                                                                                                    inspired merchandising.
                                                                                                                                                                                      The SoCal Awards program
                                                                                                                                                                                    was presented this year by the

                                                                                                                                                                                            See Atrium on 7
                                                 TUESDAY, DECEMBER 8, 2009 •         Who’s Who in Real Estate • THE DAILY TRANSCRIPT                                    ®

Close-up: Daniel Ryan

Veralliance Properties holds steady through economic battering
 By MICHAEL CHUNG KLAM                   The reuse of Campus              stuck in Miramar.
     Special to the Daily Transcript   Pointe exemplifies what              “We’re trying to not only
   On Nov. 4, Daniel J. Ryan,          Ryan calls VPI’s four pillars      create a great place for the
principal of Veralliance               of design, “livability, respon-    employer and the employees,
Properties Inc. stood next to          sibility, productivity and         but also to incorporate the
San Diego Mayor Jerry                  artistry,” he said.                artistry for the community.”
Sanders with scissors in                 The company strives to             The Heights @ Del Mar,
hand.                                  “make our projects as livable      for example, includes water
   Ryan and Tom Bumol, vice            as possible, the best product      features and landscaping
president of biotechnology             we can with the idea being         through its courtyard and
discovery research for Eli             that real people actually live     amphitheater. Acquired by
Lilly (NYSE: ELI), cut the             in here and this is their life,”   VPI in December 2007 the
ribbon together for the grand          Ryan said.                         4.2-acre parcel comprises
opening of Lilly’s new state-            “We attempt to provide a         two three-story buildings
of-the-art      Biotechnology          high degree of service and         totaling 219,447 square feet,
Center at 10300 Campus                 amenity for people at our          and also includes an on-site
Pointe Drive near UCSD. The            projects,” he added, which         café/bistro and fitness center.
pharmaceutical giant signed            encourages          “productive    It is located in the Del Mar
a 10-year lease on 125,000             employees who are on site          Heights submarket and is
square feet of space at the            more, and who are going to         home        to     Neurocrine
facility.                              be able to be more productive      Biosciences (Nasdaq: NBIX).
   Veralliance      Properties         for our tenants.”                    VPI acquired Sorrento
(VPI) focuses on real estate             Part of VPI’s livability and     Summit in 2004, with ten-
acquisitions, development              productivity mantra is to          ants     including    Helicon
and management, particu-               offer better buildings, which      Therapeutics and NuVasive
larly in the life sciences sec-        “means less sick days and          (Nasdaq:       NUVA).     The
tor. The firm acquired the             happier employees,” Ryan           222,330-square-foot, two-
42-acre Campus Pointe                  said.                              building campus features a
property in July 1997. Tucker            On-site fitness centers and      courtyard, ocean views and
Sadler Architects designed             food service are specifically      freeway proximity.                                                                                            Photo courtesy Veralliance Properties
the ultra-modern renova-               designed so that people can          Other VPI properties                 Veralliance principal Daniel Ryan stands in front of Eli Lilly's new Biotechnology Center at
tions that now accommodate             exercise and eat well at the       include Sorrento Research              Campus Pointe. The real estate firm acquired and oversaw the renovation of the approximately
Kyocera Wireless Corp. in              facility without having to         Facility, Oberlin Science              450,000-square-foot facility.
addition to Lilly.                     drive      elsewhere,    which     Center and Carroll Tech
   The 450,114-square-foot             reduces emissions.                 Center in the Sorrento                 realizing that the commercial       efficiency for commercial           and 2010 is still going to be
Campus Pointe features a                 Ryan described VPI’s             Valley/Sorrento Mesa area,             industry is probably the            buildings. Of the 11 LEED-          on pretty wobbly feet,” he
3,207-square-foot confer-              artistry pillar as “basically      along with various business            largest consumer of energy,”        certified Core and Shell            said.
ence center, a 6,891-square-           trying to have a little fun        parks and self-storage real            according to Ryan. “It’s all        Platinum projects world-               “A lot of people will be
foot fitness studio, a 10,818-         along the way.”                    estate.                                these things, just being a lit-     wide, none of them are in           changing their platforms,” he
square-foot café/bistro, a               “We’re trying to make the          VPI’s      philosophy     of         tle more thoughtful of all the      California.                         added. “We have certainly
two-story glass structure              market in a way that we’re         responsibility is about “basi-         activities in terms of energy          Ryan said sustainable            battened down the hatches in
with grand entrance, and a             proud to present it to the         cally trying to have as little         consumption and traffic, and        design is not just about the        terms of not pursuing new
central walkway with high-             community,” he added. “It’s        impact as we can on the                providing transportation and        money that everybody saves,         acquisitions, at least for the
end tile, glass and plants.            not just some warehouse            earth with our projects and            hybrid parking.”                    but the fact that people are        moment, and don’t expect to
                                                                                                                    The Lilly facility at            consuming less.                     do a whole lot of that proba-
RE market                                                                                                        Campus Pointe, for example,
                                                                                                                 uses solar arrays to produce
                                                                                                                                                        “We just have to be more
                                                                                                                                                     thoughtful about the way all
                                                                                                                                                                                         bly until the middle of next
      Continued from Page 3            to 90 percent of the proper-       Finally, we will see more and          renewable energy, low-flow          these things are done,” he             VPI will proceed with cau-
but would instead spread to            ty’s appraised value. The          more commercial foreclo-               fixtures, and reclaimed water       explained.                          tion.
the middle and high-end                government predicted this          sures, as vacancies hit record         for use in landscaping and             “We’re viewing every proj-          “We really all need to see if
echelons of the real estate            would save 400,000 homes           high levels and more com-              the building’s cooling system.      ect we’re working on and say-       this foreclosure tsunami
market. Finally, it would hit          from foreclosure. As of my         mercial property owners are            Recycled materials were used        ing, ‘How can we make this          starts to take hold, because
the commercial real estate             arrival in Washington D.C.,        forced to default on their             to refurbish the existing           better; how can we do this a        why would you be buying
market as well, as office              almost five months later,          loans.                                 building, and organic pro-          little smarter?’” Ryan said.        something in today’s market
buildings, industrial space            only 451 applications had            I will be traveling back to          duce, grown in an onsite gar-       “Can we use reclaimed               when that could be happen-
and retail would start to go           been processed and 25 loans        Washington,        D.C.,    in         den, is served in its bistro.       water? Can we use skylights         ing?” Ryan said.
empty and eventually go to             had been modified. The             January. My message will be               The project, in partnership      instead of electric lighting?          Still, the VPI principal
foreclosure as landlords               House Finance Committee            the same — reduce interest             with Prudential Real Estate,        Can we do certain things to         reaffirmed that the organiza-
became unable to continue              scheduled hearings to deter-       rates down to 3 percent for            is considered a model of            balance the consumption of          tion is heading in the right
making their payments.                 mine the problem, but the          buyers and existing home-              environmental design with           our world’s resources?”             direction with its model
   That was December 2008.             problem was obvious — the          owners, allow upside down              the most efficient energy              While Ryan is optimistic         LEED work; and that the
In January 2009, I traveled            banks were not participat-         borrowers to refinance to the          usage, the top indoor envi-         about the ecological side of        responsibility pillar is key.
to Washington, D.C., to lobby          ing. It was a voluntary pro-       lower rates (and turn their            ronmental quality and mate-         the industry, he is concerned          “Although we’re going
the U.S. House and Senate.             gram.                              loans into recourse loans in           rial utilization, and the high-     about the economy.                  through some very difficult
My perspective was one from               Fast forward to December        order to encourage responsi-           est levels of environmentally          “There’s definitely a major      economic times,” he said, “it’s
the front lines of the                 2009. Unfortunately for San        bility), force the banks to            sustainable water efficiency.       constriction of capital avail-      also very exciting because
Southern California real               Diego, 2009 played out pret-       increase their loss mitigation            “Campus Pointe could             able to life sciences tenants,”     we’re really seeing the corpo-
estate crisis. I told our elect-       ty much as I had predicted.        staffing for short sales, and          become the first Platinum           he said. “It’s the most chal-       rate and real estate commu-
ed representatives what the            The only real difference was       finally, force the banks to            Core and Shell project in           lenging market we’ve had            nities begin to awaken to the
banks were doing — and                 the passage of four consecu-       start lending again.                   California, and would be one        across the spectrum.”               fact that we can’t just keep
more importantly, not doing            tive foreclosure moratori-           Our real estate market and           of only eight in the United            Ryan used a boxing               doing what we’ve been
— to stem the tide of foreclo-         ums, the last of which             our economy depend on it.              States,” according to Tom           metaphor to explain the cur-        doing.”
sures and help people stay in          expired in September, that                                                Lunneberg, principal of             rent economic situation:
their homes. I expressed my            effectively stopped banks           Battiata is CEO of Battiata           Innovative Energy Solutions,        “2008 was the uppercut and            Chung Klam is a San Diego-
frustration at how disorgan-           from foreclosing on delin-         Real Estate Group.                     a Carlsbad-based consulting         landing on the mat. 2009,           based freelance writer.
ized and overwhelmed the               quent homeowners. The pur-           Source Code: 20091208crk             firm specializing in energy         you’re climbing up the ropes,          Source Code: 20091208crf
mortgage lenders’ loss miti-           pose of these moratoriums
gation departments were,               was ostensibly to give banks
how the lenders were uni-              time to modify borrowers’
formly unwilling to modify             loans to avoid foreclosure.
borrowers loans and how dif-
ficult it was to get a short sale
approved and closed, despite
                                       The moratorium temporarily
                                       stopped foreclosures, causing
                                       housing inventory levels to
                                                                                                                                             IREM’s 22nd Annual
the fact that, in the majority
of cases, it was in the best
interest of the bank and its
                                       drop dramatically in San
                                       Diego County, but it did not
                                       force the banks to modify
                                                                                                                                      Economic Forecast Breakfast
shareholders.                          loans to any meaningful                                                                                       Presented by Pacific Building Group
   I told Congress that the way        degree.
to revive the real estate mar-            The result: A huge backlog                                                                                     Friday, December 11th at Hyatt Aventine, La Jolla
ket was not to reduce mort-            of foreclosures — homes that         Moderator:                   Headline Speaker:                       registration/breakfast at 7 a.m., program 8 to 9:30 a.m.
gage balances (Massachusetts           could not be foreclosed on
                                                                                                         Robert Sarver

                                                                                                                                      Survivor San Diego
Rep. Barney Frank’s proposal           because of the government            Dennis Cruzan
at the time) but rather to             moratoriums — that will be           Cruzan/Monroe                Western Alliance Bancorp,
reduce interest rates for buy-         hitting the market in 2010,                                       Torrey Pines Bank,
ers and existing homeowners            now that the moratoriums                                          Owner of Phoenix Suns
(down to 3 percent), and to            have ended.
let upside down borrowers                 Which brings us to what           PANELISTS
refinance to the low rates.            2010 will bring for the San
Finally, because I knew that           Diego real estate market.
the new administration                    If 2009 was the year of the
would be drafting new legis-           short sale, 2010 will unfortu-
lation, I strongly urged the           nately be more of the same,
House Finance Committee to             but the market will be pep-                             Eric Kremer                           Burl East                                                              Ted Jones
attach conditions to the               pered with a much higher
                                                                                               Pillsbury Winthrop                    Silver Portal                  Perry Dealy                             Stewart Title
TARP bailout that would                number of foreclosures. The                                                                                                                                          Chief Economist
force the banks to lend out            banks have a tremendous                                 Shaw Pittman                          Real Estate                    Dealy Development
the taxpayer money they were           number of homes they will be
being given, to adequately             foreclosing on in 2010 —                                                                                                                             Presented by:
staff their loss mitigation and        homes they could not take
                                       back in 2009 due to the
                                                                                               $95 a person
customer service depart-
ments and to make a mean-
ingful effort to help modify
                                       moratoriums. They also have
                                       a huge number of homes that
                                                                                            $750 for Table of 10
borrowers loans and stop               they have already foreclosed
foreclosures.                          on — known in the real estate           Register online:
   “If you make it voluntary,” I       industry as “shadow” or
said to the chief counsel to           “phantom” inventory. These
                                                                            Contributing Sponsors:
the        House        Finance        are homes the banks have
Committee, “the banks are              foreclosed on but have held
not going to do it.”                   onto in an effort to make
   I knew this because we              themselves look more solvent
had already seen how the               than they actually are. These
banks responded to The                 homes are sitting vacant at a
Bush administration’s Hope             huge expense to the banks,
for Homeowners Act of                  need to be sold and will begin
2008. This bill went into              to hit the market in 2010. All
effect in October 2008 and             of this means more deprecia-
allocated $300 billion of              tion for the San Diego hous-
taxpayer money to lenders if           ing market in 2010, and                                                                                                   , San Diego Chapter Chapter #18
they wrote down mortgages              unfortunately, no bottom.
6                                                  TUESDAY, DECEMBER 8, 2009 •          Who’s Who in Real Estate • THE DAILY TRANSCRIPT                                 ®

Close-up: Stacey Hansen

Accounting background an advantage to senior property manager
     By PADMA NAGAPPAN                  ager before transferring to          the additional responsibility       in Mission Valley and a two-                                            The month of November,
      Special to the Daily Transcript   Portland, Ore., as an account-       of its El Centro office as well.    building industrial condo-                                            however, is reckoning time.
  Stacey Hansen is that rare            ing manager with Harsch                “All of my career moves           minium on the border in                                               She was neck-deep in budg-
breed, a native Californian,            Investment Group.                    have been through network-          Otay Mesa.                                                            ets, providing owners with
who grew up in the Midwest                She worked her way up to           ing,” said Hansen, who man-           In San Marcos, she man-                                             reports on rents, utility
and     Northwest      before           property manager before              ages 850,000 square feet of         ages a recently renovated                                             charges, operating expenses,
returning to the state in the           moving to Burnham Pacific,           property in El Centro, San          seven-building      industrial                                        tax and accounting fees and
mid-’80s. She lives in                  a real estate investment trust       Diego and San Marcos.               park with warehouses that                                             tax dues when she spoke with
Escondido and works out of              (REIT) which outsourced her            She also runs commercial          back up to offices.                                                   the Transcript. Also on the
the San Marcos office of                to Grubb & Ellis, where she          associations such as industri-        “Right now, most of North                                           agenda were reports on capi-
Essex Realty Management ,               took over management of an           al parks, office condomini-         County is highly saturated                                            tal improvement projects
one of the largest commercial           entire portfolio of shopping         ums and shopping center             with vacancies. We haven’t                                            such as tenant improvements,
property management firms               centers.                             associations. This involves         seen much activity,” Hansen                                           re-roofing, painting, pave-
in the western region.                                                       responsibility for the com-         said. She explained that in                                           ments and landscape renova-
  In 1985, armed with a                 Diverse portfolio of properties      mon areas, parking lots,            order to get new tenants,                                             tion projects, which would
bachelor’s in finance, she                She joined Essex four years        landscaping and building            concessions are being hand-                                           give owners a handle on their
began her first job in                  ago, as senior property man-         exteriors.                          ed out such as rent-free peri-                                        cash flow.
accounting for a shopping               ager overseeing 400,000                Her portfolio in San Diego        ods, tenant improvements
center developer in Irvine.             square feet of commercial            consists of two office build-       and discounted rental rates.                                             Challenges and troubling
She moved up to asset man-              property in San Diego, with          ings in Sorrento Valley, one                                                      Hansen                        times in the industry
                                                                                                                           High points                                                    “This is the deepest hole

Commerical properties to soon be                                                                                   Among the significant
                                                                                                                 milestones she has achieved
                                                                                                                 at Essex, Hansen counts
                                                                                                                                                    changes, children and moving
                                                                                                                                                    out of state.
                                                                                                                                                       Hansen has persisted in
                                                                                                                                                                                       I’ve seen since I’ve been
                                                                                                                                                                                       involved in the industry. The
                                                                                                                                                                                       deepest and longest,” said
                                                                                                                                                    picking up where she left off,     Hansen, who is working on
labeled Energy Stars or ‘wasters’                                                                                helping tenants through hard
                                                                                                                 times, working on reducing
                                                                                                                 operating expenses and
                                                                                                                                                    and is currently a candidate
                                                                                                                                                    for the certified property
                                                                                                                                                                                       keeping the value of her
                                                                                                                                                                                       properties as high as she can,
      By MONICA UNHOLD                  greater can apply for the            will    soon    take     effect,    implementing energy conser-        manager certificate through        which is a tough challenge.
           The Daily Transcript         Energy Star, and will receive a      Scheidlinger said.                  vation measures.                   the Institute of Real Estate       “We are hoping that things
   Companies purchasing or              plaque. Industrial plants that          “We want to make sure our          While in Oregon, she             Management.                        will start to vastly improve in
leasing commercial real estate          score within the top 25 per-         clients are aware of this and       gained deep insight about             Aside from mentors at           mid-2010, that rents will sta-
will soon have more informa-            cent for energy efficiency           can make changes ahead of           multiuse projects through          work, her father, a retired        bilize and tenants will start
tion about the energy efficien-         within their industry nation-        time,” Scheidlinger said.           her involvement with the           electronics sales manager, has     leasing,”
cy of prospective properties.           wide also are eligible for the          Many commercial real             International Council of           been a major source of sup-           At the same time, she said
Under state Assembly Bill               Energy Star.                         estate brokers are not yet          Shopping Centers (ICSC)            port for Hansen.                   the challenges and the variety
1103, brokers selling or leas-            Once Energy Star ratings           aware of the upcoming legis-        when she served as the                “My father has always been      are what she loves best about
ing commercial buildings                become public, they are likely       lation.                             Oregon state operations            the biggest promoter and my        the industry. The worst part is
after Jan. 1, 2010 must obtain          to become yet another layer of          “Even commercial brokers         chairwoman.                        backup. He’s always believed       having to play babysitter,
and disclose the building’s             competition,      said    Eric       don’t know until we send out          “I observed a brewery            in my goals and that I could       checking to see if vendors
Energy Star Rating.                     Scheidlinger, manager of effi-       rounds and rounds of e-mails        building      in     downtown      do it. He is a huge influence,”    such as janitors, heating, ven-
   Energy Star is an energy             cient sustainable practices for      because they’re so busy trying      Portland that was spread           she said.                          tilation and air conditioning
efficiency rating available             Reno Contracting.                    to make a living right now,”        across a number of blocks.            Hansen raised three chil-       (HVAC) contractors, land-
through          the       U.S.           “Consumers will prefer             said Jim Taylor, president-         Now it’s got retail, under-        dren while working six-day         scapers, plumbers and general
Environmental        Protection         more efficient buildings,”           elect of the Commercial             ground parking, offices, resi-     weeks and long hours. She          contractors have done what
Agency. Unlike other rating             Scheidlinger said.                   Realtors Association San            dential lofts and restaurants,”    credits her support system,        they billed her for.
systems, such as the U.S.                 To help owners obtain bet-         Diego Chapter and senior vice       she said.                          comprising nannies and fami-          Looking ahead, she said
Green Building Council’s                ter Energy Star ratings, con-        president of Sperry Van Ness.         Since most of her mentors        ly, with helping her balance       Essex is always looking to
Leadership        in    Energy          tractors such as Reno                   Due to the poor state of the     and bosses have been women,        work and family life.              manage commercial associa-
Efficiency Design (LEED),               Contracting have begun offer-        economy,           commercial       Hansen said she never came                                            tions that have had poor man-
there is no cost associated             ing consulting services. Reno        Realtors are in survival mode,      up against the proverbial                 Flair for numbers           agement in the past.
with Energy Star. Also unlike           gauges efficiency under the          Taylor said.                        glass ceiling. Also, there are a      Hansen credits her back-           Asked for any nuggets of
LEED, Energy Star is only               Energy Star system and rec-             AB 1103 applies only to          lot more women in retail           ground in finance and              wisdom for women in com-
available for existing build-           ommends renovations and              commercial properties being         commercial real estate, where      accounting for providing an        mercial real estate, Hansen
ings. Applicants must provide           upgrades to bolster the build-       bought or leased, however it is     she first started, than in the     advantage in her career — she      strongly recommended get-
data on the building’s per-             ing’s rating.                        likely that in the future           industrial sector.                 can look at different sets of      ting involved in organiza-
formance during 12 months of              Thus far, Reno has complet-        Energy Star ratings will be                                            books and explain it to an         tions such as the IREM
operation.                              ed five Energy Star ratings for      required for all commercial          Mentors and support system        owner or manager in a way          (Institute of Real Estate
   The Energy Star system               existing clients. The majority       properties, including hotels,         “I treat people the way I        they understand.                   Management), ICSC and
provides each building with a           of Reno’s clients are in the         Scheidlinger said.                  want to be treated. I have a          “I have an affinity for num-    BOMA (Building and Office
ranking between one and 100.            large-scale commercial sector            great deal of respect for those    bers, so I am able to grasp        Managers’ Association) as
Buildings that score 75 or              and most are unaware the bill            Source Code: 20091125cyb        I work with. Definitely have       complex financial statements       key to advancement, along
                                                                                                                 an open door; I believe the        and narrow it down to an           with seeking excellent men-
                                                                                                                                                    executive summary. You’ve          tors.
San Diego CCIM chapter, CCIM                                                                                     more questions the better. I
                                                                                                                 am here to teach people how
                                                                                                                 to do my job. I’ve had great
                                                                                                                                                    got to be able to analyze finan-
                                                                                                                                                    cials for potential tenants,
                                                                                                                                                                                          “When you meet people
                                                                                                                                                                                       from different disciplines,
                                                                                                                 mentors, and I am trying to be     too,” Hansen explained.            such as engineers and archi-
Education Foundation award scholarships                                                                          one as well,” she said.
                                                                                                                   Hansen’s first mentor — her
                                                                                                                                                       A typical day involves fol-
                                                                                                                                                    lowing up on projects at spe-
                                                                                                                                                                                       tects, you gain big-picture
                                                                                                                                                                                       perspectives. And being a
    By GARY M. CORNELSSEN               viduals who complete a pre-          Diego from Feb. 1-5, 2010.          boss at her first job in Irvine    cific properties; pending          good person helps, since it’s a
        CCIM San Diego Chapter          scribed series of university-        Greg Spounias of Retail             — made the time to teach her       items such as tenant com-          small world. So don’t burn
  The Education Foundation              level courses and advanced           Insite, Everardo Gutierrez of       any thing she wanted to learn,     plaints; spot checks on fin-       your bridges,” she said.
of the CCIM Institute is a              concepts and techniques in           La Jolla Capital Group and          and encouraged her to take         ished and ongoing projects;
nonprofit entity that works to          commercial real estate. The          Dawn Baker will receive par-        classes. She enrolled in real      creating, negotiating and            Nagappan is a San Diego-
advance knowledge and pro-              growing CCIM network has             tial scholarships for the CI        estate classes 14 years ago, but   amending leases; and review-       based freelance business
fessionalism in the field of            nearly 20,000 members in             101 course.                         had to discontinue when life       ing bids and contracts from        writer.
commercial investment real              more than 1,000 market-                 The San Diego chapter con-       intruded in the form of job        vendors.                             Source Code: 20091208crg
estate. The foundation’s mis-           places and 30 countries              ducts business and educa-
sion is to create and adminis-          worldwide.                           tional programs for local pro-
ter an endowment to provide                The San Diego chapter is          fessionals in commercial real
the best vision, and vehicles           pleased to announce that             estate. Call the chapter
to ensure the development of            Chris Williams of Colliers           administrator at 858-366-
the highest quality commer-             International, Joshua Smith          0379 for additional informa-
cial/investment real estate             of    Commercial       Realty        tion on the chapter.
education.                              Advisers      and      Austin
  The CCIM Institute pro-               McDonald       of    Harman            Cornelssen, CCIM, is with
vides educational programs              Realtors Inc. will receive full      Marcor           Investment
and services for professionals          tuition scholarships for the         Properties Inc. and is the
in commercial and invest-               CI 101 course, Financial             2009 chair of the CCIM San
ment real estate, as well as            Analysis for Commercial              Diego Chapter Scholarship
allied industries. It awards            Investment Real Estate, to be        Committee.
the CCIM designation to indi-           held at the University of San          Source Code: 20091208crn

State launches program to aid
businesses in site selection
       Daily Transcript staff report    the Business, Transportation         Redding, Apple Valley and
   Commercial and industrial            and Housing Agency in a              Riverside County.
building projects in California         statement. “By streamlining             “By working together over
will get under way more                 and facilitating the site-selec-     the past year, state and local
quickly than in the past,               tion process in California, we       stakeholders have developed
thanks to a new program                 can help stimulate regional          a statewide program that will
announced Wednesday by the              business expansion and               help local governments show-
state Business, Transportation          attract new investment as the        case     opportunities       for
and Housing Agency.                     current economic situation           employers looking to expand
   The Site Certification               improves in communities              or relocate to California as the
Program allows local govern-            large and small.”                    economy continues to recov-
ments to register “project                 The California Department         er,” Bonner said. “In return for
ready” commercial or indus-
trial sites and market them as
locations for new business
                                        of Real Estate will certify each
                                        site, checking on the avail-
                                        ability of utilities, site access,
                                                                             the modest up front costs of
                                                                             preparing sites for certifica-
                                                                             tion, local governments can
                                                                                                                  Alliant Techsystems signs lease in Miramar
investment and expansion.               environmental concerns, land         now take the guess work out             Alliant Techsystems Inc. (ATK) signed a 10-year lease for approximately 114,150 square
   The program was devel-               use conformance and poten-           of the site location process         feet of warehouse space in the Miramar Commerce Park at 7130 Miramar Road, Suite 100B,
oped to assist businesses with          tial site development costs.         thereby reducing relocation          San Diego 92126. The lease is valued at approximately $14.1 million. The lessor is Walton
the site selection, planning            The DRE will work with local         and expansion costs for busi-        CWCA Miramar Distribution 78, LLC. Jay Alexander, Ryan Grove and Arnie Friedman, of
and development process.                and regional economic devel-         ness and accelerating the            Colliers International represented the lessor. Mike Christian, of UGL Equis represented the
   “As California faces increas-        opment agencies, utilities and       time it takes to generate            lessee.
ing competition from other              commercial real estate agents        much-needed jobs and tax               Alliant Techsystems is an aerospace and defense company. The space will be used to man -
states for new or relocating            to maintain an inventory of          revenue.”                            ufacture aircraft parts and auxiliary equipment.
businesses, we must work                commercial and industrial               Criteria for the Site               Miramar Commerce Park is a distribution facility with a more than 120-foot turning
together in finding new ways            sites available for purchase or      Certification Program and a          radius, concrete driveway and aprons, dock high and grade level loading doors. The proper -
to reduce business costs and            lease in the hopes of expedit-       list of certified sites is avail-    ty was sold in June 2007 for $70 million. Other tenants include Mission Imprintables early
ease the process of expanding           ing the process for compa-           able at:       this year with 60,800 square feet at 7130 Miramar for 60 months at $1,753,956; and Legacy
or relocating to California,”           nies. Thus far, the agency has       fied_sites.html.                     Fibers International Inc. this summer with a 10-year lease for approximately 24,837 square
said Dale Bonner, secretary of          identified certified sites in            Source Code: 20091125cya         feet at 7170 Miramar for approximately $2.3 million.
                                                  TUESDAY, DECEMBER 8, 2009 •         Who’s Who in Real Estate • THE DAILY TRANSCRIPT                                    ®

Close-up: Will McLennan

Leading real estate banking executive sees value in relationship lending
     By JILL BLACKFORD                 Diego.                              our capital rations are strong —    with decision-makers who can                                                “There are challenges, yes,
     Special to the Daily Transcript      “In the first couple of years    14 percent strong,” McLennan        make decisions quickly and                                               but I am thankful to be work-
   William McLennan, execu-            we were smaller than what we        said. “And because we are           provide solutions like under-                                            ing in San Diego come
tive vice president and chief          can do now. While the number        healthy and have funds to lend,     writing to withstand the ups                                             Thanksgiving time,” he said.
real estate officer of Torrey          of institutions that can lend has   we are getting the opportunity      and downs of the market.                                                 “San Diego is a great place to
Pines Bank, got his real estate        gotten smaller, now our range       with quality customers who             Looking ahead, McLennan                                               live, lots of people continue to
start in college, then parlayed        as a bank has gotten bigger,”       were too small in the past.”        sees this type of relationship                                           want to live here and busi-
those skills to banking — and          McLennan said. “Our deals              In facing not only market        building as a key not only to                                            nesses want to locate here.
he’s now been a banker for 25          started out at $1 (million) to $2   challenges, but also competi-       banks being successful, but also                                         Between the standard of living
years.                                 million, and now we look at         tive ones, Torrey Pines Bank        for those seeking loans to effec-                                        and the natural environment,
   “I was born and raised in San       new deals in the $10 (million)      focuses on its core strength:       tively obtain the financing they                                         as well as opportunities to
Diego County, and my father            to $15 million range. Our           building relationships.             need.                                                                    work in biotech or military or
was a real estate broker,”             breadth and capacity is much           “We could compete on price,         “There’s expected to be a                                             university, there are lots of
McLennan said. “Real estate            greater.”                           but we choose to compete on         scarcity of capital in the market                                        employment opportunities. I
was something I grew up with.             While the soft market has        relationship and making that        over the next couple of years,”                                          expect our marketplace will
Then I worked in construction          impacted        the     industry,   not transactional,” McLennan        McLennan said. “Our position                                             recover quicker than other
for a period of time going to          McLennan highlights the             said. “For instance, with banks     is that if someone comes in and                                          markets.
college. So when I got out, a          opportunities the downturn          like Wells Fargo, we will out-      needs a loan and they have the                                              “We’re already beginning to
number of institutions were            has presented for Torrey Pines      compete on service; we’ll           relationship, we’ll find a way to                                        see that the low end of the
looking for people who could           Bank.                               respond quicker and close           help them. It’s important for                                            housing market has hit bottom,
be lenders, and I had an advan-           “The market is not as active     quicker. We’re building our         investors, developers and con-                 McLennan                  I believe, and is beginning to
tage because I understood how          as it was two years ago, and        bank on the ability to do that,     tractors to find that relation-                                          come back out.”
construction worked.”                  we’re seeing adjustments in         and this goes hand in hand          ship, whether with us or with          As for looking forward for
   McLennan worked for a               prices and rates,” he said. “But    with senior management’s            someone else, because that will      the San Diego market in partic-       Blackford is a Los Angeles-
number of small and mid-               we’re seeing more opportunity       desire to meet with customers       be crucial to their success over     ular, McLennan is optimistic        based freelance writer.
sized banks before putting his         in income-producing proper-         in their workplace.”                the next couple of years.”           about his hometown.                   Source Code: 20091208crh
real estate lending skills to use      ties — retail centers, industrial      Even in his senior role,
at Torrey Pines Bank. He was
one of the initial 12 people
Torrey Pines brought together
                                       buildings and commercial
                                       properties, where the tenants
                                       are renters not owners.”
                                                                           McLennan is not only behind
                                                                           the scenes looking at deals, but
                                                                           is also out calling on customers
                                                                                                               Printing money with a real
to start the bank about six
years ago. His specialty there
is in construction and term
                                          Even in this market,
                                       McLennan reports that Torrey
                                       Pines Bank is making money
                                                                           and talking to them with his
                                                                           colleagues. He estimates that
                                                                           he spends about 60 percent of
                                                                                                               estate brokerage license
financing across multiple              and is healthy. And, because of     his time assisting with under-          By CURTIS GABHART                properties, others of buyers.       in your own properties.
product types in the real estate       its size, he said the bank can      writing and management inter-              Gabhart Investments Inc.      Some will help you save money,         On the other hand, suppose
arena. McLennan said Torrey            approach many different levels      nally and the remainder on             How do most people start          while others will allow you to      when you started out in real
Pines Bank is a good place to          of customers to service their       calls. This reinforces the bank’s   investing in real estate? They       make money. All these assets        estate on your own, you
put his real estate expertise to       borrowing and financing             emphasis on the importance of       save money, they borrow from         can be created without any sig-     bought an industrial property.
use because the bank is a sig-         requests.                           the customer relationship — at      friends and family, and they         nificant monetary investment.       Suppose you quickly find that
nificant player in the real               “We see this as an opportuni-    all levels. That means cus-         risk taking credit. Or they try      On the other hand, building a       the industrial segment isn’t for
estate finance market in San           ty for us, as we are healthy and    tomers get to speak directly        sophisticated techniques like no     chain of properties requires a      you — now you must go
                                                                                                               money down deals, which even         significant amount of funds to      through the process of dispos-
                                                                                                               the experienced real estate          be invested. While we may wish      ing of that property and again
                                                                                                               investor may find difficult to       otherwise, that’s often not pos-    finding another property in
                                                                                                               succeed with.                        sible.                              another segment you wish to
                                                                                                                  People new to investing who          Learn from the masters, but      work in. This not only makes
                                                                                                               start with friends and families’     maintain more accurate infor-       you lose time, but may also
                                                                                                               money without experience do          mation than they do. With your      cause you to lose interest, and
                                                                                                               not see rewards for their time       real estate license you will have   eventually, lose opportunities.
                                                                                                               and efforts until their first buy    the opportunity to work with        And, after all, it is better to
                                                                                                               sells for a profit later. Or they    and learn from the most sophis-     lose a commission than to lose
                                                                                                               may try to bird dog, which is        ticated investors. These are the    your credit.
                                                                                                               finding and tying a property,        best type of people to work            Choose how far you want to
                                                                                                               often with their own money,          with, as they know exactly what     go, not how far you can go. Real
                                                                                                               then trying to flip it to another    they want. You will learn to look   estate is such a vast market that
                                                                                                               investor. This, technically, could   for what they have learned to       irrespective of the niche you
                                                                                                               require a real estate license any-   look for. However, you will be      decide to work in, the opportu-
                                                                                                               way — particularly if not done       the one calling sellers and buy-    nities are many and deep. If you
                                                                                                               correctly — and if the investor      ers every day, and you will be      are persistent and systematic,
                                                                                                               doesn’t buy the property, you        helping others make deals.          you will certainly build wealth
                                                                                                               are stuck.                           Thus, you will have a better        beyond your expectations. Of
                                                                                                                  If you had a real estate          handle on the price and other       course, it is important that you
                                                                                                               license, you could enjoy the fol-    metrics of the properties in        set specific goals, and these may
                                                                                                               lowing benefits:                     which you specialize than the       be set in terms of an annual
                                                                                                                  Lock the property, not your       investors do, even if they are      amount of positive cash flow —
                                                                                                               money. Instead of using your         full-time real estate investors.    say $100,000 — or in the value
                                                                                                               money to make a down pay-            You will gain the best of both      of wealth built at the end of a
                                                                                                               ment and lock the property,          worlds.                             period — for example, $30 mil-
                                                                                                               use your license and lock the           Follow your interests, not       lion in assets.
                                                                                                               property by getting a listing on     your burdens. It is common             Get started when you want;
                                                                                                               it. In this way, you can tie up      knowledge that a person will        don’t wait to build resources. If
                                                                                                               any number of properties and         do something much better if         you are trying to enter the real

 Canyon Ridge Apartments in Clairemont on Cowley sold                                                          will not be limited by the
                                                                                                               amount of funds at your dis-
                                                                                                               posal. You can use the listings
                                                                                                                                                    they have a passion for it.
                                                                                                                                                    Similarly, with a real estate
                                                                                                                                                    license, you can select and start
                                                                                                                                                                                        estate business, you will need
                                                                                                                                                                                        to build a certain amount of
                                                                                                                                                                                        capital before you can get
     The 162-unit Canyon Ridge Apartments complex in Clairemont at 3101-3187 Cowley Way,                       to sell to anyone who may be         working in any niche that           started. If you take the real
  San Diego 92117, has been sold for $26.1 million.                                                            suited for that investment.          interests you. If you feel retail   estate brokerage route, there is
     The buyer was Hidden Lake Associates, L.P., a California limited partnership, Two North                   Also, your listings are general-     is right for you, then work on      nothing you need to wait for.
  Riverside Plaza, Suite 400, Chicago 60606. Hidden Lake G.P. Corp. is the buyer’s general                     ly for six to 12 months — that       brokering retail property. If          What — you’re still here
  partner, and Robert Garechana is a vice president of the general partner. The acquisition was                means you have six to 12             you feel multifamily is the way     reading? Shouldn’t you be at
  financed with a loan of $15,165,000 from Fannie Mae (NYSE: FNM).                                             months to sell the property          to go, then go ahead. Start talk-   the Department of Real Estate?
     The property seller was Evan Withycombe Residential L.P., headed by Equity Residential,                   and are not pushed to sell for       ing to appropriate buyers and
  a Maryland real estate investment trust.                                                                     undue consideration.                 sellers and understand the            Gabhart is CEO of Gabhart
     The two-story apartment complex was constructed in 1990 on 7.97 acres. Its one- and two-                     Gain wisdom, not knowl -          advantages and disadvantages        Investments Inc., the presi-
  bedroom units range from 650 to 950 square feet, each with a private patio or balcony.                       edge. You may have read dozens       of working in that segment.         dent of the San Diego
                                                                                                               of books about investing in real     You will also be introduced to      Commercial          Realtors
                                                                                                               estate. You may have even            other specialists who work in       Association and a board
Gov’t increases pressure on mortgage industry                                                                  attended a couple of courses,
                                                                                                               and now think you are ready to
                                                                                                                                                    your niche, so you will come
                                                                                                                                                    across appraisers, contractors,
                                                                                                                                                                                        member of the CCIM San
                                                                                                                                                                                        Diego Chapter. He is also a
         By ALAN ZIBEL                 their completed paperwork in        borrowers they have signed          part with your precious money.       lawyers and a wide assortment       member of the Policy
         The Associated Press          so they do not miss out on the      up for trial modifications,         Think again. Just as you would-      of other professionals who are      Advisory Board at the
   WASHINGTON (AP) —                   opportunity for more afford-        other companies like Ocwen          n’t run off to Las Vegas and         knowledgeable about your            University of San Diego
Faced with sluggish progress           able mortgage payments,”            Financial (NYSE: OCN) and           marry someone after a few e-         niche. These are people who         Burnham-Moores Center for
in its foreclosure-prevention          said Phyllis Caldwell, who          American Home Mortgage              mail exchanges, you shouldn’t        can immediately work with           Real Estate.
effort, the Obama adminis-             recently was named to lead          Servicing have only increased       invest in real estate without        you when you decide to invest         Source Code: 20091208cro
tration will spend the com-            the Treasury Department’s           their borrower participation        some live experience.
ing weeks cracking down on
mortgage companies that
                                       homeownership preservation
                                                                           by 6 percentage points or less
                                                                           since July.
                                                                                                                  If you have a real estate bro-
                                                                                                               kerage license, you will typically
aren’t doing enough to help               The program, announced              Paul Koches, executive vice      work through five to 30 deals a           Continued from Page 4          cation, boasting great appeal
borrowers at risk of losing            by President Barack Obama           president       of     Ocwen        year. You will gain practical and    sales and marketing councils        to the affluent buyer.” The
their homes.                           in February, allows home-           Financial Corp., said his           live experience of the mechan-       of three Southern California        entry explains further: “A
   Treasury Department offi-           owners to have their mort-          company had already saved           ics of negotiating and the pur-      Building             Industry       breathtaking, detailed floor
cials said recently they will          gage interest rate reduced to       90,000 of its roughly               chase of a property. You will        Associations      —        Los      of rich wood inlaid with
step up pressure on the 71             as low as 2 percent for five        370,000 distressed home-            have access to Multiple Listing      Angeles/Ventura,        Inland      marble makes a memorable
companies participating in             years.                              owners from foreclosure             Services (MLS) and will also         Empire       and    Southern        statement upon stepping
the government’s $75 billion              The administration is feel-      before the government pro-          start building relationships         California. The event was           into this home. Dark furni-
effort to stem the foreclosure         ing intense pressure from           gram began. As of October,          with other real estate brokers       attended by more than 500           ture with clean, graceful
crisis. The will start this week       lawmakers and consumer              Ocwen had started trial             and agents. The only aspect you      industry professionals.             lines and mirrored accents
by sending three person                advocates to speed up               modifications for 11 percent        will not be directly exposed to is      Encompassing all facets of       portray       a     glamorous
“SWAT teams” to monitor the            progress. As of early               of its borrowers, up from 5         the actual operations and man-       new-home marketing and              lifestyle. The bedrooms are
eight largest companies’ work          September, only about 1,700         percent in July.                    agement of the property. But         merchandising, the competi-         stylish, with luxurious tonal
and requesting twice-daily             homeowners had finished all            American Home Mortgage           you can gain insight in that, too,   tion attracted more than 300        fabrics, creating an effect
reports on their progress.             the paperwork and received          didn’t have an immediate            just by talking with your buyers.    entries in categories that          that is richly layered and ele-
   The mortgage companies,             a new permanent loan.               comment.                            Not only do you build relation-      include: product design,            gant. This home evokes the
also known as loan servicers,          About one-third of borrow-             The participating mort-          ships, you also gain valuable        model complex landscaping,          feeling of success and appre-
have had a hard time getting           ers who have submitted com-         gage companies signed con-          insight without paying for it        interior merchandising, sales       ciation for the finer things in
borrowers to complete the              plete applications are still        tracts earlier this year that       through your own mistakes.           office design, logo design,         life.”
needed paperwork for the               waiting for a decision.             give the government the                Build a network of assets,        graphics, brochures, signage,          Now sold out, Atrium at
administration’s loan modifi-             In an effort to shame the        right to withhold incentive         instead of buying a chain of         advertisements, overall ad          EastLake Vistas features
cation program. Nearly 60              companies into doing a better       payments or end their con-          properties. If you have a real       campaigns, special or limited       estate-like residences ranging
percent of the 375,000 bor-            job, Treasury will publish a        tracts with Treasury.               estate license you can gain          time sales promotions and           from 3,750 to 4,281 square
rowers who qualify to have             list next week of the mort-            But consumer advocates           access to innumerable people.        Web sites.                          feet and with four to five bed-
their loan modifications               gage companies that are lag-        say the program has a key           You can start developing and            According to Design Line         rooms, 4.5 baths and up to
completed by year-end have             ging. While big lenders like        flaw. Since participation was       maintaining relationships with       Interiors President Dawn            three-car garages.
either submitted incomplete            Citigroup (NYSE: C) and             voluntary, the government           them. If you nurture these rela-     Davidson, Atrium’s Plan 2
paperwork or none at all.              Wells Fargo (NYSE: WFC)             has little it can do besides        tionships, each of these con-        model home showcased a                Percival is owner of Scribe
   “Borrowers must under-              have made double-digit gains                                            tacts can become invaluable          “Villa de Moderne” theme, “a        Communications.
stand the urgency of getting           in the percentage of eligible             See Pressure on 9             assets. Some will bring leads of     look of streamlined sophisti-         Source Code: 20091208crp
8                                                  TUESDAY, DECEMBER 8, 2009 •       Who’s Who in Real Estate • THE DAILY TRANSCRIPT                                 ®

Close-up: Don Ankeny

Westcore CEO takes the long view, conducts strategic hiring
    By JEN LEBRON KUHNEY                                                  much of his early career in         opposite of the norm.               and CEO of PhatPipe, a now        beneficial for Ankeny and
            The Daily Transcript                                          the San Francisco Bay area,            Ankeny answered the bell         defunct      company      that    Westcore.
   Don Ankeny knows how to                                                one of the largest commercial       and found himself in the fast-      focused on bringing voice            “There’s a lot of talent out
deal with tough challenges.                                               real estate markets in the          paced world of the dot-com          and data services to industri-    there,” he said. “There’s a
   He grew up with four                                                   country.                            boom.                               al properties.                    book by Jim Collins called
younger siblings. He graduat-                                                “I’d say it wasn’t real estate      Twenty-two-hour        days         Unfortunately            for   ‘Good to Great’ that says a
ed      cum        laude   from                                           itself, per say, as much as the     became the norm. Money was          PhatPipe, the dot-com bub-        good organization gets the
Dartmouth College with a                                                  company I was working for,”         flowing freely.                     ble burst and Ankeny left the     right people on the bus.
degree in economics. Years                                                said Ankeny about how he               “It was a very fun place to      company in 2002.                     “Maybe you don’t know
ago, he used to compete in                                                made real estate his career.        be,” Ankeny said.                      It was then that Westcore      what seat they need to sit in
triathlons and more recently,                                                He said the Bay area was            Things started changing,         founder Marc Brutten tapped       right away, but if they have
he’s taken part in a bicycle                                              teeming with entrepreneurs          though, after Bank of               Ankeny to join his company.       the core values we espouse,
ride for the Challenged                                                   in the early ‘80s. Before           America      (NYSE:      BAC)          By 2005, Ankeny was the        we’ll train them and know
Athletes Foundation.                                                      entering the real estate            acquired his investment             CEO.                              they’ll be great.”
   So when the commercial                                                 world,       Ankeny      almost     banking company.                       Since joining, he’s helped        Over the years, Ankeny
real estate market took a                                                 worked at Apple (Nasdaq:               Bank of America already          grow the company. It now has      said he learned he should not
downturn within the past                                                  AAPL), but instead found            had an investment banking           offices in Los Angles, San        be afraid to hire the brightest
year, the CEO of Westcore                                                 himself at the Trammell             arm and tried to merge the          Francisco,     Denver      and    and the best, even if it means
Properties knew what to do                                                Crow Co.                            Robert Stephens team with           Switzerland.                      he feels like they are smarter
when adversity struck: He                                                    Ankeny thrived on the            it, somewhat unsuccessfully.           While the company is           than he is.
would make the most of it                           Ankeny                company’s entrepreneurial              After Ankeny’s company           spread out, Ankeny said hav-         It’s a part of his competitive
and find ways to come out on                                              culture. He enjoyed the thrill      was sold to Bank Boston,            ing all of the corporate lead-    nature that knows when the
top.                                      Westcore, or practically any    of making deals and new con-        things improved, but due to         ers located in San Diego is       team takes priority.
   “We were fortunate we sold             other commercial real estate    nections.                           several     other     merger,       crucial to achieving team suc-       Though the commercial
a lot of properties in ‘06 and            firm for that matter, Ankeny       By the early ‘90s, Ankeny        Ankeny and his team of              cess.                             markets are difficult, Ankeny
‘07,” he said. “We saw prices             is not twiddling his thumbs.    seized the opportunity to           investment bankers found               But getting that team          said he’s looking to the future
going up quickly and we                      While other companies are    combine his interest in tech-       themselves owned by Bank            together hasn’t always been       for better days.
started getting nervous.”                 laying off long-time employ-    nology with his real estate         of America once more by the         easy. San Diego has a relative-      For now, he’s sitting back
   However, he added no one               ees, Ankeny has started         savvy.                              late ‘90s.                          ly small pool of real estate      and building a team he is con-
in his industry knew how far              strategically hiring — some-       Robert Stephens and Co.             Ankeny left his position as      professionals, said Ankeny.       fident can come out on top.
the market would fall.                    thing he’d found somewhat       was teaming up with Yahoo!          managing director in 2000              However, layoffs through- 
   “Anybody who says they did             challenging in the San Diego    (Nasdaq: YHOO) in 1993              and became the president            out the industry have proven          Source Code: 20091208cri
is full of (it),” he said.                real estate world.              and was looking for someone
   Though times are not the                  After obtaining his MBA      who knew real estate to teach
easiest they have been at                 from Stanford, Ankeny spent     investment banking to; the

                                                                                                               Deloitte signs lease in Advanced Equities Plaza
San Diego County Commercial                                                                                                                                                           Deloitte LLP leased
                                                                                                                                                                                    approximately            30,000

Association of Realtors                                                                                                                                                             square feet of office space at
                                                                                                                                                                                    Advanced Equities Plaza,
                                                                                                                                                                                    655 West Broadway, San

recognizes 2009 board members                                                                                                                                                       Diego 92101, for a 10-year
                                                                                                                                                                                    term. Deloitte will occupy
                                                                                                                                                                                    the entire seventh floor and
    Source: San Diego County Commercial   mittee included Mark Brady,        Slated to serve the associa-                                                                           a portion of the sixth floor
           Association of Realtors
                                          Jed Weinberg, Esq., Kent        tion effective in January 2010                                                                            in the 23-story, 380,000
   The San Diego County                   Twomey of Ironstone Bank        are: Jim Taylor, Sperry Van                                                                               square foot office tower.
Commercial Association of                 and    Brian    Lukacz     of   Ness, as president; Aaron                                                                                 Deloitte will occupy in
Realtors (CRA-SD) recog-                  Commercial Realty Advisers.     Bove, Marcus & Millichap, as                                                                              December 2009. Kraig
nizes and thanks its board of             The Membership committee        vice-president, Jim Tostado,                                                                              Kristofferson and Stacy
directors for 2009.                       included Barbara Kreis and      CPM, CCIM, Hibiscus Real                                                                                  Meronoff of CB Richard
   2009 president Curtis                  Rick Hardy of Sperry Van        Estate, as secretary, and Steve                                                                           Ellis ( N Y S E : C B G ) a l o n g
Gabhart, of ACI Commercial,               Ness; Lee Homer, CCIM, of       Miller, The Daily Transcript,                                                                             with Ed Muna of Lankford
acknowledges the contribu-                Kensington Properties Inc.      as treasurer. Curtis Gabhart                                                                              & Associates represented
tions made this year by his               and Mark McDonald. The          is immediate past-president.                                                                              the lessor, Wereldhave
officers and board members:               Property          Marketing        The 2010 board will be                                                                                 USA . D o n F i n k e l s t e i n o f
Jay Diskin, CCIM, SIOR,                   Committee included Vince        rounded out by: Gary                                                                                      Finkelstein & Associates
Sperry Van Ness , as past-                Andreuccetti     of   Pacific   Anderson,       West     Coast                                                                            represented            Deloitte.
president; Steve Malley,                  Capital Exchanges Services      Commercial ;           Vincent                                                                            Wereldhave purchased the
Sperry Van Ness, as vice-pres-            and Aaron Bove of Marcus &      Andreuccetti, Pacific Capital                                                                             office tower in 2007 for
ident; Jim Tostado, CCIM,                 Millichap. The Networking       Exchange Services LLC ;                                                                                   approximately $210 million
CPM, Hibiscus Real Estate,                Committee of Jill Morton, CB    Mark Brady; Jodi Duva, Cox                                                                                cash. CBRE represented
as secretary; and Steve Miller,           Richard Ellis; Steve Miller,    Business ; Barbara Kreis,                                                                                 Wereldhave.
The Daily Transcript, as                  The Daily Transcript, Brian     Sperry Van Ness; Mark                                                                                       Other tenants in the
treasurer. As advocates for               Nelson, ACI Apartments Inc.     McDonald; Brian Nelson,                                                                                   office tower include Bank of
San Diego’s commercial real               and Dottie Surdi, Sperry Van    South Coast Commercial ;                                                                                  America (NYSE: BAC) with
estate industry, board mem-               Ness, provided the network-     Dottie Surdi, Sperry Van                                                                                  a 10-year, $2.48 million
bers contributed in many                  ing event in September.         Ness; and Jed L. Weinberg,                                                                                lease for 5,092 square feet
ways this year to provide pro-            Government Affairs was han-     Law Office of Jed L.                                                                                      of ground floor retail space
grams, resources, networking              dled by Jim Taylor of Sperry    Weinberg APC.                                                                                             in early 2008. Another early
opportunities and education               Van Ness. Kevin Farrell of         For more information                                                                                   2008 ground floor tenant is
to the association’s members              Cushman & Wakefield and         about San Diego County                                                                                    Crescent Heights Kitchen &
and other professionals in                Krista Berger of Sperry Van     Commercial Association of                                                                                 Lounge with nearly 7,000
commercial real estate.                   Ness also served on the         Realtors, visit                                                                                square feet for 10 years at
   The 2009 Programs com-                 board.                              Source Code: 20091208crl                                                                              $2.5 million. Bruegger’s
                                                                                                                                                                                    Bagels t o o k 2 , 3 2 7 s q u a r e
                                                                                                                                                                                    feet of ground level space
                                                                                                                                                                                    for 120-months at $975,944
                                                                                                                                                                                    in late 2007. The building
                                                                                                                                                                                    was known as Broadway
                                                                                                                                                                                    655 when completed in

                                                                                                              Tribes seek urban, off-reservation casinos
                                                                                                                By SUDHIN THANAWALA               California proposal, say casi-    Community wants to build a
                                                                                                                      The Associated Press        nos hold the promise of jobs      gambling hall in a city 20
                                                                                                                 RICHMOND, Calif. — An            and a better future for their     miles outside Detroit and 457
                                                                                                              Indian tribe wants to build a       members.                          driving miles from the group’s
                                                                                                              grand, $1.5 billion, Las Vegas-        “We have a responsibility to   reservation in the Upper
                                                                                                              style casino resort on a swath      try to make lives better,” said   Peninsula.
                                                                                                              of land overlooking San             Donald Duncan, a top tribal          Other cities proposed for
                                                                                                              Francisco Bay — a spot more         official.                         such casinos include Portland,
                                                                                                              than 100 miles from its tribal         The vast majority of the       Ore.; Phoenix; El Paso, Texas;
                                                                                                              lands.                              hundreds of Indian casinos in     and Oklahoma City.
                                                                                                                 Across the country, in fact, a   the United States are on tribal      For many of these Indian
                                                                                                              number of Indian tribes are         land — often, well-removed        tribes, the problem is this:
                                                                                                              seeking to construct casinos        from big cities — as envi-        Last year, the Bush adminis-
                                                                                                              well away from their reserva-       sioned under the 1988 federal     tration decided that Indian
                                                                                                              tions or other tribal lands.        law that created the $26 bil-     casinos must be within com-
                                                                                                                 And the trend may be about       lion Indian gambling industry.    muting distance of reserva-
                                                                                                              to accelerate: the Obama               But the law has exceptions,    tions.
                                                                                                              administration is expected to       including ones for tribes such       It rejected applications
                                                                                                              decide soon whether to loosen       as Guidiville that have           from more than 20 tribes,
                                                                                                              the rules on some of these          regained federal recognition      including one for a casino
                                                                                                              projects.                           in recent decades and are         1,400 miles from the reserva-
                                                                                                                 Gambling          opponents      looking to establish a reserva-   tion.
                                                                                                              deplore the trend and com-          tion.                                The U.S. Bureau of Indian

    Copley sells La Jolla building and other properties                                                       plain that Indian tribes are           Off-reservation      casinos   Affairs is now reassessing the
                                                                                                              trying to game the system to        already exist in Milwaukee        commuting-distance        rule.
                                                                                                              expand their operations and         and Spokane, Wash., having        And many tribes are opti-
      The 10,236-square-foot vacant Class B office building at 7701 Herschel Ave. in La Jolla                 get closer to lucrative big-city    been approved in the 1990s.       mistic.
    92037, (above) has been sold for $4.75 million by The Copley Press.                                       markets.                               An Associated Press exami-        BIA     spokesman      Gary
      The buyer was 7701 Herschel, LLC. The property seller (assessor’s parcel 350-332-28) was                   They fear that more gam-         nation of federal records has     Garrison said isolated tribes
    represented by Mike Slattery and Robert Kuzman, of Grubb & Ellis|BRE Commercial. The                      bling will bring more crime         found about a dozen tribes        should be allowed to run gam-
    building was constructed in 1982 on a 17,500-square-foot lot. The property was formerly                   and other social ills.              have filed applications to set    bling operations off the reser-
    occupied by Copley Information Systems.                                                                      “These are all casinos com-      up casinos on distant pieces of   vation.
      At the same time, Copley Press sold several other properties to The San Diego Union-                    ing to a highway ramp near          land, close to population cen-       But he added, “We’re also
    Tribune LLC: its five-story headquarters on 13 acres in Mission Valley at 350 Camino de la                you,” said Cheryl Schmit,           ters.                             very conscious of whether the
    Reina for $35.5 million, the 72,121-square-foot building on 2.32 acres 5258-60 Anna Ave. in               director of a nonprofit group          In six cases, including the    communities approve or dis-
    San Diego for $6.5 million, and the approximately 7,800-square-foot industrial condomini -                that opposes Indian gam-            Guidiville    proposal,     the   approve. We don’t want tribes
    um at 5130 Avenida Encinas in Carlsbad. The approximately 44,000-square-foot building on                  bling.                              resorts are slated for land       willy-nilly going off reserva-
    three acres at 1152 Armorlite Drive in San Marcos for sold for $2.75 million to 1152 Armorlite               Tribes such as the Guidiville    more than 100 miles away.         tion.”
    Drive LLC.                                                                                                Band of Pomo Indians, which            In      Michigan,        the
                                                                                                              is leading the Northern             Hannahville              Indian           See Tribes on 10
                                            TUESDAY, DECEMBER 8, 2009 •         Who’s Who in Real Estate • THE DAILY TRANSCRIPT                                ®

Investment exec: Apartment price drop could continue
By THOR KAMBAN BIBERMAN           Diego, 92015 — sold for               Assad, whose firm has            great locations, people will      rents continuing to soften and     they are apartments, land,
        The Daily Transcript      $690,000 in January 2007 —         financial interests in 35 com-      stretch to buy them,” Marinos     vacancies edging upward, the       retail, industrial or office
  Some apartment properties       was also sold for $318,000         mercial properties including        said, adding that even in         apartment market will remain       buildings, have been in
in San Diego County have lost     within the past month.             3,500      apartment      units,    downturns, apartments have        in this minimal state for          extremely short supply during
more than half their value          Although most of the recent      warned prices could keep            tended to be a resilient asset    another year.                      the past year, but Lynn
since 2006, leaving some to       price drops the Transcript         going down for a while.             class.                               Other reasons apartments        LaChapelle, a Jones Lang
wonder when the bottom will       tracked weren’t quite so pre-         “My personal opinion is             Resilient or not over the      may be in the doldrums for a       LaSalle (NYSE: JLL) Capital
be reached.                       cipitous, they were significant.   that prices have not bottomed       long-term, apartments con-        while, Zorbas said, are all the    Markets managing director,
  If the Daily Transcript’s         For example, a four-unit         out yet,” Assad said.               tinue to be hammered right        “broken” condominium proj-         said she is starting to see
examinations of County            apartment property at 185             Assad, who has many of his       now. Ray Adams, an apart-         ects that are being marketed       activity.
Recorder’s documents are any      Stonyhurst Court in Vista that     units near San Diego State          ment specialist with Grubb &      as apartments.                       LaChapelle declined to pro-
indication, the vast majority     sold for $545,000 had previ-       University, said as recently as     Ellis|BRE Commercial, cited          In addition, he said specu-     vide details, but said she
of “commercial” sales these       ously sold for $860,000 in         the middle part of this decade,     a CoStar (Nasdaq: CSGP)           lators are buying small sin-       expects a major office build-
days are apartment properties     July 2006.                         they were at or near 100 per-       report that tallied $2.75 bil-    gle-family homes and renting       ing in Mission Valley to close
of five units or less.              When asked how long it           cent occupied.                      lion in apartment transac-        them out. That too softens         escrow in the first quarter of
  A three-unit apartment          might be before larger trans-         “At that time, 27 percent of     tions in the county in 2005. It   apartment demand, pushes           next year.
property      at     5429-5433    actions become the norm            the students were coming            will be a fraction of that in     rents down and lowers                “Another       building      in
Lauretta St. in San Diego,        rather than the exception, and     from the county. Today, 60          2009.                             prices.                            Mission Valley is getting ready
92110, was sold for $375,000      how much longer multifamily        percent of the students are            “It will be under $500 mil-       Although small apartment        to launch (go on the market),
within the past few weeks.        prices will keep declining, Al     coming from the county and          lion this year,” Adams said.      properties, many with precip-      and an industrial building is
The property had sold for         Assad, a principal with the        the apartments are 70 percent          Adams said he has also         itous price drops in recent        being purchased by an occupi-
$800,000 in May 2007.             investment firm of Hanken          full. The students are living at    noticed that the prices for       years, would appear to consti-     er in Poway.”
  A four-unit apartment prop-     Cono Assad, wasn’t encourag-       home,” Assad said.                  apartment properties with         tute most of the sales here,         LaChapelle added that a
erty at 3373 Orange Ave. in       ing.                                  Savvas Marinos, a Colliers       four units or less have been      there have been other              major office building is in the
San Diego, 92104, was sold for      “You’re not going to see a       International senior vice pres-     cut in half and the cost of       instances of declines in other     process of being acquired in
$330,000 this fall. The prop-     normal market sooner than          ident, said whether or not          projects larger than that have    asset classes.                     the Sorrento Mesa area, and
erty had previously sold for      2012 ... The problem is there      apartment prices will keep          been diminished by about 30          For example, a 14.3-acre        another such project is being
$795,000 in October 2005.         isn’t a lot of nongovernmental     falling also depends on where       percent since 2005.               agriculturally zoned parcel at     marketed in that same sub-
  A four-unit apartment at        funding anywhere for any           they are in the county.                When asked how long he         818 Gem Lane in Ramona             market.
3244-3246 Menlo Ave. in San       asset class,” Assad said.             “If you have properties in       thought the apartment prices      sold for $150,000 within the         “It’s been difficult, but there
                                                                                                         will continue to decline,         past month. The property had       is a pulse out there,”

Rising delinquencies follow                                                                              Christopher J. Zorbas, a
                                                                                                         Marcus & Millichap vice pres-
                                                                                                         ident of investment, said with
                                                                                                                                           previously sold for $399,000
                                                                                                                                           in July 2006.
                                                                                                                                              Large transactions, whether
                                                                                                                                                                              LaChapelle said.
                                                                                                                                                                                  Source Code: 20091125tbd

church construction boom                                                                                 Pressure
      By MILES WEISS              on churches and religious          foreclosures and bank-pres-              Continued from Page 7          Industry           executives    understand exactly what is
         Bloomberg News           schools 83 percent of its total    sured sales, if you will, in this   shaming the industry into         acknowledge there have             being asked of them.”
   Mark Holbrook helped fuel      assets.                            last year than we have seen in      doing better.                     been problems.                       Analysts, meanwhile, say
a church construction boom          Now, the Brea, Calif.-based      20 years,” said Matthew               “There’s no meaningful            “The documents were con-         the foreclosure crisis is likely
by making more than $3 bil-       company’s delinquency rate is      Messier, a principal at CNL         accountability,” said Diane       fusing. Borrowers did not          to persist well into next year
lion of mortgages in the past     more than double what it was       Specialty Real Estate Services      Thompson, counsel at the          understand the process was-        as rising unemployment
decade.                           at the end of 2007 and mort-       Corp., a broker in Orlando,         National Consumer Law             n’t closed until the docu-         pushes more people out of
   He transformed a $2 mil-       gage      originations    have     Fla., that caters to religious      Center. “If you just aren’t       ments came in,” Sanjiv Das,        their homes.
lion credit union he joined       slumped because of a decline       and educational clients. “A lot     doing the loan mods, so           chief executive of Citigroup’s       About 14 percent of home-
after Bible college into the      in financing.                      of people think commercial is       what?”                            mortgage unit, said earlier        owners with mortgages were
largest    U.S.    evangelical      Commercial church mort-          going to get worse before it          And then there’s lender         this month. “Even when the         either behind on payments
lender.                           gages are coming due with so-      gets better, and it could be the    limbo. About one-third of         documents came in, they            or in foreclosure at the end of
   Evangelical       Christian    called balloon payments,           same for many churches.”            borrowers have submitted          were not always complete.”         September, a record level for
Credit Union , run by             replacement loans have disap-         Rising delinquencies have        complete applications but           Mortgage finance compa-          the ninth straight quarter,
Holbrook since 1979, was the      peared and the highest unem-       led to speculation about            haven’t received a decision.      ny Freddie Mac has hired an        according to the Mortgage
leading force behind the pop-     ployment rate in 26 years has      ECCU’s financial health, the          “In our judgment, ser-          outside company, Titanium          Bankers Association.
ularity of five-year commer-      cut congregant donations.          company said.                       vicers to date have not done a    Solutions Inc., to send real         Homeowners who may be
cial mortgages that had mini-       About 145 churches have             Chief Financial Officer          good enough job” of making        estate agents around the           eligible for assistance can
mal monthly payments and          gone into bankruptcy since         Brian Scharkey, appearing in        the modifications perma-          country to knock on borrow-        call 888-995-HOPE, or visit
lower initial costs than bond     the credit crunch accelerated      a video discussing the compa-       nent, said Michael Barr, an       ers’ doors and help them 
sales.                            in 2008, an upheaval in a          ny’s third-quarter finances,        assistant Treasury secretary.     complete the paperwork.
   Unlike the banks that          lending niche that bankers         said there were “some unset-        Companies, he said, “that           “It can be a little bit intim-     AP Real Estate writer
joined the trend, ECCU            once ranked among the safest       tling rumors floating around”       don’t meet their obligations      idating,” said Patrick Carey,      Adrian Sainz contributed to
catered exclusively to evangel-   in real estate.                                                        under the program are going       Titanium’s chief executive.        this report.
ical ministries, making loans       “We have seen more church          See Delinquencies on 10           to suffer consequences.”          “They don’t, in many cases,             Source Code: 20091130fh
10                                         TUESDAY, DECEMBER 8, 2009 •      Who’s Who in Real Estate • THE DAILY TRANSCRIPT                               ®

 Intuit to sell real estate                                           Continued from Page 9
                                                                 among ministry leaders,
                                                                                                     West, a unit of France’s BNP
                                                                                                     Paribas SA with $1.2 billion of
                                                                                                                                       months of this year.
                                                                                                                                          That equals about 0.39 per-
                                                                                                                                                                         to $6.3 billion in 2007 from
                                                                                                                                                                         $3.8 billion in 1997, according
                                                                 including the possibility that      church loans, has a 30-day        cent of average loans, com-       to estimates by the U.S.

 software business                                               ECCU might go bankrupt.
                                                                    “ECCU is one of the health-
                                                                 iest institutions in the coun-
                                                                                                     delinquency rate of less than 1
                                                                                                     percent,       according
                                                                                                     spokesman John Stafford.
                                                                                                                                       pared with a charge-off rate of
                                                                                                                                       2.24 percent for commercial
                                                                                                                                       lenders overall, according to

                                                                                                                                                                            Holbrook in 1987 shifted

    MOUNTAIN           VIEW,     ings by 10 to 12 cents a        try,” Holbrook said in the             The delinquency rate for       Federal Reserve data for the      ECCU’s lending to evangelical
 Calif. (AP) — Software          share.                          video on ECCU’s Web site, cit-      commercial real estate loans      end of June.                      ministries from individual
 maker Intuit Inc. (Nasdaq:         The company said it still    ing a capital ratio of 11 percent   held by all U.S. banks was 7.7       “These churches are broadly    customers, and in 1998 hired
 INTU) said recently that it     expects its revenue to grow     that he called among the            percent at the end of June,       and significantly keeping their   the lobbying firm William D.
 will sell Intuit Real Estate    4 percent to 8 percent in       highest in the industry.            according to data from the        commitments,” Johnson said        Harris & Associates to suc-
 Solutions to private equity     2010, even excluding               “We don’t see any even           Federal Reserve.                  in an interview.                  cessfully obtain an exemption
 firm Vista Equity Partners      Intuit      Real       Estate   remote possibility of bank-            The rising delinquencies          ECCU works with congre-        from legislation that bars
 for $128 million in cash.       Solutions revenue.              ruptcy on the horizon,” he          haven’t resulted in substantial   gations to restructure their      credit unions from having
    Intuit    Real     Estate       The     business      con-   said.                               write-offs, in part because       finances and avoid foreclo-       more than 12.25 percent of
 Solutions, which used to        tributed $74 million to            Still, some ministries are       ECCU loans on average equal       sure, Holbrook said in the        assets in business loans.
 be known as Management          Intuit’s overall fiscal 2009    having trouble repaying             58 percent of underlying          video.                               At the end of 2008, about
 Reports Inc., offers soft-      revenue and was expected        ECCU.                               property values, providing a         Holbrook, 59, landed a job     123 credit unions had been
 ware and services to real       to contribute $80 million          As of Sept. 30, about 10.7       buffer against potential losses   at ECCU’s predecessor credit      granted the exemption, which
 estate management and           in fiscal 2010. Intuit          percent of the $943 million of      on the sale of foreclosed mort-   union in 1975, about a year       allows ECCU to write more
 investment companies.           reported total revenues in      first mortgages held by ECCU        gages, according to Mark          after graduating from Biola       loans for churches.
    The business is based in     fiscal 2009 of $3.18 bil-       were more than 30 days over-        Johnson, an ECCU vice presi-      University, formerly known as        There are about 7,770 cred-
 Highland Hills, Ohio, and       lion.                           due, according to a filing with     dent.                             the Bible Institute of Los        it unions in the U.S.
 has 340 employees.                 Intuit shares fell 3 cents   the National Credit Union              The company, which had         Angeles.                             “We are a ministry struc-
    The deal is expected to      in after-hours trading, after   Association.                        never charged off a church           He was running the compa-      tured as a credit union that
 close by the end of             finishing regular trading up       That’s an increase from 6.9      mortgage prior to 2007, has       ny within four years, and posi-   functions as a commercial
 January, and Intuit said        24 cents at $29.45.             percent a year earlier and 4.2      since had about $4.3 million      tioned it to feed an expansion    bank” said Jac La Tour, a
 the sale will boost its earn-    Source Code: 20091201fbd       percent at the end of 2007.         in losses, including $3.14 mil-   in which annual spending on       spokesman for ECCU.
                                                                    In comparison, Bank of the       lion during the first nine        houses of worship would rise         At ECCU, whose mission is
                                                                                                                                                                         to “increase the effectiveness
                                                                                                                                                                         of evangelical ministries,”
                                                                                                                                                                         first-mortgage originations
                                                                                                                                                                         soared to $661 million in
                                                                                                                                                                         2008 from $50 million in
                                                                                                                                                                         2000, according to company
                                                                                                                                                                         filings with the credit union
                                                                                                                                                                         administration in Alexandria,
                                                                                                                                                                            That’s more than half of the
                                                                                                                                                                         combined $1 billion in mort-
                                                                                                                                                                         gages written annually by the
                                                                                                                                                                         top 10 church lenders, includ-
                                                                                                                                                                         ing Bank of the West in San
                                                                                                                                                                         Francisco and Bank of
                                                                                                                                                                         America Corp. (NYSE: BAC)
                                                                                                                                                                         in Charlotte, N.C., said David
                                                                                                                                                                         Dennison,        principal    at
                                                                                                                                                                         Church Mortgage Solutions, a
                                                                                                                                                                         Colorado Springs, Col., com-
                                                                                                                                                                         pany that helps ministries
                                                                                                                                                                         obtain financing.
                                                                                                                                                                            The rising U.S. jobless rate,
                                                                                                                                                                         which hit 10.2 percent in
                                                                                                                                                                         October, is crimping dona-
                                                                                                                                                                         tions, the main source of
                                                                                                                                                                         income for many churches.
                                                                                                                                                                            Still, the borrowing binge of
                                                                                                                                                                         the past decade is a bigger fac-
                                                                                                                                                                         tor in the rising number of
                                                                                                                                                                         religious foreclosures and
                                                                                                                                                                         delinquencies, said Dan
                                                                                                                                                                         Mikes, national manager of
                                                                                                                                                                         the church-and school-loan
                                                                                                                                                                         division at Bank of the West,
                                                                                                                                                                         which has recorded one loss in
                                                                                                                                                                         almost 20 years of lending to
                                                                                                                                                                            “The reason ministries are
                                                                                                                                                                         losing buildings is that they
                                                                                                                                                                         got into way too much debt to
                                                                                                                                                                         begin with,” Mikes said.
                                                                                                                                                                             Source Code: 20091125tde

                                                                                                                                                                              Continued from Page 8
                                                                                                                                                                            In Richmond, the Guidiville
                                                                                                                                                                         tribe hopes to get the govern-
                                                                                                                                                                         ment to declare as sovereign
                                                                                                                                                                         tribal land a 413-acre tract
                                                                                                                                                                         near the San Francisco Bay so
                                                                                                                                                                         the Indians can build a casino
                                                                                                                                                                         resort with more than 1,000
                                                                                                                                                                         hotel rooms, shops, tribal
                                                                                                                                                                         housing and a shoreline park.
                                                                                                                                                                            Also, the Scotts Valley Band
                                                                                                                                                                         of Pomo Indians is proposing
                                                                                                                                                                         a more modest casino nearby,
                                                                                                                                                                         113 miles from their land near
                                                                                                                                                                         Clear Lake.
                                                                                                                                                                            Both tribes say that their
                                                                                                                                                                         ancestral lands were in the
                                                                                                                                                                         Bay area and that they were
                                                                                                                                                                         forced to retreat when white
                                                                                                                                                                         settlers arrived.
                                                                                                                                                                            The land they now occupy
                                                                                                                                                                         was bought with federal
                                                                                                                                                                         grants but is not a reservation
                                                                                                                                                                         and is not suitable for their
                                                                                                                                                                         casino projects, they say.
                                                                                                                                                                            The non-Indian casino
                                                                                                                                                                         industry is split over the move
                                                                                                                                                                         by the nation’s Indian tribes to
                                                                                                                                                                         expand gambling.
                                                                                                                                                                            Some casino companies
                                                                                                                                                                         stand to gain by getting hired
                                                                                                                                                                         to run the new gambling halls,
                                                                                                                                                                         while others say the expansion
                                                                                                                                                                         encroaches on their territory.
                                                                                                                                                                            The Guidiville tribe, which
                                                                                                                                                                         has more than 100 members
                                                                                                                                                                         on land near Ukiah, has
                                                                                                                                                                         agreed to pay the city of
                                                                                                                                                                         Richmond $20 million a year
                                                                                                                                                                         for two decades and to hire
                                                                                                                                                                         nearly half its work force
                                                                                                                                                                            Richmond officials hope the
                                                                                                                                                                         resorts will help revitalize the
                                                                                                                                                                         crime-ridden city of 104,000
                                                                                                                                                                         where unemployment stands
                                                                                                                                                                         at nearly 18 percent.
                                                                                                                                                                            Some have their doubts.
                                                                                                                                                                            “No family achieved eco-
                                                                                                                                                                         nomic stability through gam-
                                                                                                                                                                         bling,” said state Sen. Loni
                                                                                                                                                                         Hancock, a former Berkeley
                                                                                                                                                                         mayor whose district includes
                                                                                                                                                                         Richmond. “I don’t believe
                                                                                                                                                                         any community will either.”
                                                                                                                                                                             Source Code: 20091125tdh

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