Organization - Taconic Investment Partners

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Organization - Taconic Investment Partners Powered By Docstoc
					Organization

Since 1997 Taconic Investment Partners has acquired, redeveloped and repositioned over 12 mil-
lion square feet of commercial office and mixed-use space and more than 3,000 units of luxury
and workforce housing in the New York metropolitan area as well as in Chicago, Washington, D.C.
and Atlanta.

As a fully-integrated real estate operating company with a keen eye for uncovering value, its di-
verse capabilities are evidenced by its multifaceted success with luxury properties as well as
adaptive reuse and urban revitalization projects.

The Taconic team, under the leadership of Paul Pariser and Charles Bendit, includes highly skilled,
seasoned real estate asset and property managers, along with leasing, financing, development,
acquisitions and financial administration professionals.
               Paul E. Pariser                                   Charles R. Bendit
         Co-Chief Executive Officer                          Co-Chief Executive Officer


Mr. Pariser is co-founder/co-chief executive        Mr. Bendit is co-founder/co-chief executive
officer of Taconic Investment Partners. He          officer of Taconic Investment Partners. He and
and Charles Bendit seek out investment,             Paul Pariser seek out investment, repositioning
repositioning and workout opportunities and         and workout opportunities and lead all capital
lead all capital market relationships. The pair     market relationships. The pair are directly
are directly involved in all aspects of the five    involved in all aspects of the five million-square-
million-square-foot commercial and 3,000 unit       foot commercial and 3,000 unit residential
residential portfolio. They have successfully       portfolio. They have successfully directed the
directed    the    sponsorship,     acquisition,    sponsorship, acquisition, repositioning and/
repositioning and/or redevelopment of key           or redevelopment of key properties in both
properties in both established and emerging         established and emerging markets.
markets.
                                                    Prior to forming Taconic, Mr. Bendit founded CBC
Prior to founding Taconic, Mr. Pariser was          Properties, where he acquired, repositioned and
president and CEO of Balfour Holdings, a national   managed more than one million square feet of
investment and development company that             office properties in New York and Washington,
acquired assets through the Resolution Trust        D.C., as well as several hundred apartment units
Corporation and other distressed sellers and        in the New York metropolitan area. Earlier in his
focused on the acquisition and redevelopment        career he was a managing director at Jones
of master planned communities. Ultimately, Mr.      Lang Wootton, where he was responsible for
Pariser directed the sale of Balfour Holdings to    property acquisitions, sales and financing for
Blackstone.                                         the firm’s international clientele, with a focus
                                                    on New York, Washington, D.C., and Toronto.
Mr. Pariser has been active in the real estate      In these latter two cities he established JLW’s
industry since 1978, when he joined Jones           regional offices and business platforms.
Lang Wootton as one of the firm’s first U.S.-
based employees. During his tenure he               A graduate of George Washington University,
concentrated on investment and finance and          Mr. Bendit is actively involved in the educational
was named a co-managing partner, directing          community serving as a Regent of the New
JLW’s nationwide operations.                        York State Board of Education and as a board
                                                    member of PENCIL, including participation in
A graduate of Washington University of St.          its annual Principal for a Day program.
Louis, he was awarded a Master of Business
Administration from Columbia University
School of Business.
Capabilities

The future of any individual asset, particularly a troubled asset, is closely tied to its operator whose
ability to envision, plan and execute can instill vitality into bricks and mortar. Throughout its history
Taconic’s ability to successfully reposition real estate has been rooted in its deep capacity in these
interrelated areas. For more than a decade it has infused an array of diverse properties with new
energy that, in turn, has driven above-average returns and financial success.

Acquisition & Financing
The ability to quickly and accurately analyze complicated financial structures distinguishes
Taconic’s acquisition and finance teams. Utilizing real estate acumen, creativity and long-term
relationships with lenders, agents and sellers, these professionals carefully manage each aspect
of the acquisition process including sourcing, underwriting complex financial structures and due
diligence. Senior level attention to underwriting, market research, operating expense analysis and
coordination of third party consultants adds value to the process and ultimately to the asset.

Asset Management
Taconic’s asset management team is focused on maximizing the value of each investment. Working
closely with its property management, leasing and development teams, these professionals ensure
each asset is operating in accordance with its annual business plan. Taconic’s hands-on approach
insures high level asset performance relative to the marketplace and submarket, effectively realizing
the full potential of each investment.

Leasing
The market insights gained as an owner/sponsor/operator enable Taconic to craft leasing
strategies that address challenging circumstances and enhance long-term value. The leasing team
continuously cultivates successful tenant relationships, increasing retention rates and ensuring
that all space achieves or exceeds current market terms while managing the need to reinvest
capital. The team actively maintains strong relationships with all major brokerage firms so that all
appropriate prospects are presented to Taconic properties. Senior executives are directly involved
in every lease, responding to market conditions, setting asking rents and negotiating lease terms,
commission agreements and construction costs. This attention to detail maximizes the long-term
benefit of each lease and positively contributes to the bottom line of every property.

Property Management
Taconic Management Company, a wholly owned subsidiary, is devoted exclusively to the Taconic
portfolio. Over 33 property management professionals work in conjunction with asset managers to
ensure each property is operating in the most efficient and cost-effective manner. Quick responses,
thoughtful decisions and attention to detail, along with durable working relationships with tenants,
vendors and local authorities have garnered a best-in-class reputation, making Taconic buildings
sought-after locations and adding value to every property.

Development & Construction Management
Taconic has a proven track record of effectively identifying ground-up development, redevelopment
and adaptive re-use opportunities. The construction management team successfully implements
each of these strategies by closely managing and monitoring day-to-day and long-term progress
including construction cost budgeting, value engineering, coordinating construction-related
activity and supervising general and sub-contractors.
Investment Strategy

Overview
Our investment success is rooted in intensive market selection, broad sourcing capabilities,
comprehensive due diligence, detailed financial management and timely property dispositions.
These characteristics are particularly suited to workout and distressed situations where our
reputation, acumen and longstanding and extensive relationships within the real estate community
lend credence to difficult circumstances.

Philosophy
Taconic’s entrepreneurial culture maximizes value in every facet of acquisition, redevelopment and
management. From scrutinizing a property’s financial underpinnings and legal structure to value
engineering its physical plant and operating systems, every building is enhanced by the Taconic
touch to improve its profitability and its competitive position within the market.

Strategy
Taconic’s disciplined investment approach focuses on repositioning assets with significant value
- add potential - particularly those in need of capital improvements (ranging from minor cosmetic
alterations to significant interior and exterior renovations including structural enhancements,
major system renovations, common area upgrades and new construction), those where existing
tenancies impede value, and those with complex financial challenges.

The shifting real estate landscape and capital markets disruption are likely to provide opportunities
for significant long-term upside potential. Taconic is poised to capitalize on these through a broad,
scalable internal platform coupled with access to capital sources.

Track Record
Since 1997 Taconic has acquired in excess of $2.5 billion of office, residential and mixed-use
properties amassing a proven track record of generating superior risk-adjusted returns. Our
widely recognized and highly regarded success in disposing or recapitalizing 13 of these assets is
attributable to a detailed investment approach coupled with veteran experience through multiple
real estate cycles.
Investment Portfolio                                              Operating Buildings


                                                            111 Eighth Avenue
                            Property Overview
                            111 Eighth Avenue is a 2.9-million-square-foot property located at
                            the apex of the Chelsea and Meatpacking Districts of Manhattan.
                            The property, originally developed as the headquarters of the
                            Port Authority of New York, occupies an entire square block
                            between Eighth and Ninth Avenues and 15th and 16th Streets.
                            As the second largest building in New York City it is home to a
                            diverse tenant base including healthcare, advertising, fashion,
                            publishing and telecom companies.

                            Investment Strategy
                            Taconic acquired 111 Eighth Avenue in January 1998 as part of
                            a portfolio of assets that also included 95 and 99 Wall Street and
                            100 William Street. Two initial challenges confronted ownership
                            - numerous warehouse tenants occupied much of the property,
                            and the Midtown South market (of which Chelsea was a sub-
                            district) was not considered a viable office location. Recognizing
                            this asset’s strategic location within an emerging market, Taconic
                            implemented a complete repositioning plan including vacating
                            the printing and warehouse tenants to assemble large blocks of
                            space. A $50 million base building renovation overhauled vertical
                            transportation, lobbies, common corridors, power plants and fuel
        Address             delivery systems transforming 111 Eighth Avenue into a leading,
     111 Eighth Ave,        first class office building. Under Taconic’s stewardship, the rent
      New York, NY          roll was substantially increased and the credit tenant roster today
                            includes some of the world’s most recognized brands.
       Submarket
 Midtown South/Chelsea/     Building Amenities
  Meatpacking District      Access to Transportation: 111 Eighth Avenue is served by
                            the A, C, E & L subway lines that connect to the property via
      Square Feet           an underground concourse and provide direct access to New
       2,950,000            York City’s major transportation hubs - Penn Station, the Port
                            Authority Bus Terminal and Grand Central Station.
     Date Acquired
     January 1998           Unique Infrastructure: An average floor size of 200,000 square
                            feet and typical ceiling height of 15 feet combine to provide
    Property Website        tenants design flexibility and operating efficiency.
     111Eighth.com
                            Power & Connectivity: Extensive electric capacity, heavy floor
   Taconic Value Add        loads, redundant power, vertical risers and efficient column
   $50 Million Capital      spacing all cater to the specific needs of leading tenants
 Improvement Program;       throughout the telecommunications sector.
Repositioning and Leasing
Campaign; Upgraded Rent     Representative Tenants
  Roll to Include World-    Google, Nike, Sprint, WebMD, CCH Legal, Deutsch Advertising
  Class Credit Tenants      and Armani Exchange.
Investment Portfolio                                                        Adaptive Reuse


                                                          401 West 14th Street
                              Property Overview
                              401 West 14th Street is a 60,000 square foot building located
                              at the prime corner of 14th Street and 9th Avenue, the gateway
                              to Manhattan’s Meatpacking District (also known as the
                              Gansevoort Market Historic District following its designation by
                              the Landmarks Preservation Commission in 2003).

                              Investment Strategy
                              Taconic acquired the property in December 2005 in an off-market
                              transaction but the climb to greater value was steep - an anchor
                              ground floor supermarket had a long-term, substantially below
                              market lease, a securitized first mortgage prohibited payoff or
                              defeasance, and the building was situated within a designated
                              historic district. Recognizing the asset’s higher potential, Taconic
                              successfully addressed and navigated each of these challenges.
                              Immediately upon placing the property under contract, Taconic
                              commenced its redevelopment and repositioning plan which
                              included replacing all building systems, constructing a new lobby
                              and building core with two passenger elevators, and redesigning
                              and replacing all windows and retail storefronts. Significant
                              value was also added when Taconic received approval from
                              the New York City Landmarks Preservation Commission for the
                              construction of a penthouse addition.
        Address
                              Building Amenities
   401 West 14th Street
                              Prime Corner Location: This highly visible corner sits at the
      New York, NY
                              gateway to Manhattan’s Meatpacking District that has emerged
                              as a prominent destination for retail, restaurant, showroom and
       Submarket
                              office tenants
   Meatpacking District

                              Efficient Floor Plates: The property’s efficient floor plates provide
       Square Feet
                              flexibility for either single tenant or multi-tenant use.
         60,000

                              Proximity to Area Amenities: This area is home to high-end
     Date Acquired
                              retail, boutique hotels, fine dining, luxury residential buildings
     December 2005
                              and public parks, including the newly opened High Line and
                              Hudson River Parks.
    Taconic Value Add
Complete Redevelopment
                              Representative Tenants
   including Penthouse
                              Retail: Apple, Inc., Hugo Boss Retail, Inc., Moschino
 Addition, New Core, and
                              Office: Apple, Inc., Tudor Investment Corporation
State-of-the-Art Amenities;
    Repositioning Plan;
 Financial Restructuring;
100% Lease Up Including
        Apple Store
Investment Portfolio                                                           Residential


                                                MeadowWood at Gateway
                              Property Overview
                               In August 2006 Taconic acquired Fairfield Towers, a 19-building
                              apartment complex in Brooklyn, New York containing 1,152 units.
                              The acquisition resulted from a failed auction and the closing
                              involved the resolution of several complex ownership, legal, and
                              financial challenges. The complex was constructed between
                              1964 and 1966 and in 1991 a condominium plan was enacted.
                              At the time of the initial conversion, individuals purchased 167
                              units, and two were purchased by the condominium association
                              for superintendent use; the remaining 983 units, which were
                              operated as rentals, comprised the Taconic acquisition.

                              Investment Strategy
        Address               A $40 million capital improvement plan, including the renaming
 1019 Van Siclen Avenue       and repositioning of the property as MeadowWood at Gateway,
      Brooklyn, NY            has been implemented. Property-wide renovations have resulted
                              in the replacement of roofs, all new windows and terrace doors,
       Submarket              installation of new elevators, upgrades to entrance lobbies and
      East New York           common corridors, renovated laundry facilities, landscaping
                              redesign, improved parking, a new playground, enhanced lighting,
        Square Feet           additional security cameras, and removal of past building code
 791,000; 1,152 units in 19   violations. As units become available for sale each receives a
 buildings on 2 campuses;     kitchen, bath and flooring upgrade to create modern, attractive
     7-story buildings &      apartments. Sales commenced in 2007, and to date more than
        townhouses            250 units have been sold, and the property has been stabilized
                              as attractive workforce housing for middle-income families. In
      Date Acquired           August 2009 the complex was named the top selling Brooklyn
       August 2006            condominium by The Real Deal. A sellout of all available units is
                              estimated by early 2011.
     Property Website
 MeadowWoodatGateway.com      Building Amenities
                              Area Amenities: MeadowWood at Gateway is within 1/4 mile of
    Taconic Value Add         the new 640,000-square-foot Gateway Center retail development,
Acquisition Resulting from    which includes a Home Depot, BJ’s Wholesale Club, Target,
Failed Auction; Resolution    Marshall’s and Bed, Bath & Beyond, and across from a new park
 of Complex Ownership,        scheduled to open in 2010.
Legal and Financial issues;
$40 Million Comprehensive     Transportation Access: Six subway lines including the A, C
   Capital Improvement        and 3 are in close proximity to the property. In addition, one of
 Program; Repositioning,      only three Long Island Rail Road stations in Brooklyn is located
    Sales & Marketing         nearby, providing residents an attractive commuting option both
 Campaign; Named 2009         to Manhattan and points throughout Long Island.
   Top Selling Brooklyn
Condominium by The Real       Parking: More than 1,000 parking spaces are available for
   Deal in August 2009        residents.
Investment Portfolio                                                          Development


                             Coney Island North and South Venture
                              Property Overview
                              Recognizing the local government’s comprehensive planning
                              strategy to foster the resurgence of New York City’s waterfront
                              through a major master plan and rezoning initiative, Taconic
                              acquired significant property along Surf Avenue in Coney
                              Island.

                              The two holdings comprise Coney Island North Venture and
                              Coney Island South Venture. The North Venture consists of
                              three city blocks on the North side of Surf Avenue totaling
                              nearly 109,000 square feet. One block from the beach, these
                              parcels include vacant or under-improved land. Coney Island
                              South Venture encompasses 5.5 acres on the south side of Surf
                              Avenue, interspersed over four blocks along the beachfront,
                              and is also comprised of vacant or under-improved land totaling
                              nearly 240,000 square feet. Most of the south parcels are owned
                              outright and one is controlled through a long-term leasehold.

                              In September 2003 the City of New York formed the Coney
                              Island Development Corporation to oversee master planning
                              and redevelopment of Coney Island. It was charged with
                              spearheading and implementing a comprehensive planning
                              process and creating a coordinated economic development
                              strategy for the area, led by the New York City Economic
        Address
                              Development Corporation.
      Coney Island,
      Brooklyn, NY
                              Since 2006, Taconic has been working on its plan to revitalize the
                              area in conjunction with the Economic Development Corporation,
     Date Acquired
                              the Department of City Planning, and other government agencies
      June 2005
                              to rezone the parcels to permit residential and retail uses as well
                              as parking.
  Potential Building Area:
  Between 1.8 million and
                              On July 31, 2009 the New York City Council adopted City
  2.4 million square feet,
                              Planning’s Comprehensive Zoning Plan for Coney Island. The
   creating nearly 2,000
                              new zoning significantly increased buildable floor areas for
residential units and more
                              mixed-use residential and retail projects on our land to between
 than 200,000 square feet
                              1.8 million and 2.4 million square feet. The rezoning has the
           of retail
                              potential to create nearly 2,000 residential units, and more than
                              200,000 square feet of retail.

                              Taconic is in the process of evaluating the economics of a
                              planned development for some or all of our holdings.
Contact Us

Address
111 Eight Avenue
Suite 1500
New York, NY 10011

Phone
212.220.9945

Fax
212.220.9949

TaconicInvestments.com

				
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