Posted by admin on May 3, 2011
This list in 2009 and 2010 reflected a recessionary New York, one thoroughly upended by economic maelstroms like high unemployment and the odd major bank collapse. No one had need of more office space; no one had financing for investments; no one had much to do save get on the blower and commiserate, or, on the odd workday, try to set up sit-downs or walk-throughs. The president of the United States was No. 1 in 2009, because everyone looked to the government for help. Toss me some TALF!
Then, inevitably, as these things seem to go in New York and not in places like Vegas or Mobile, a thaw began. The first inklings came amid the end of landlord concessions, whether for office tenants or those in apartments. Then, round about the summer of 2010, the news of major leases trickled out—foremost, perhaps, that of Si Newhouse (No. 51) intending to park his Condé Nast publishing engine in 1 World Trade, where the development has been organized by the Port Authority, led by Chris Ward (No. 70), and where Douglas and Jody Durst (No. 1) have the big private stake. (And simply that there is a 1 World Trade, more than halfway to its 1,776 feet now, is itself a sign of recovery.)
Then, the statistics across the board began to validate the gratingly chipper chatter as office leasing and investment sales picked up, and the housing market steered well clear of an assumed double dip. Suddenly, by the close of 2010, it wasn’t all so much bullshit; the recovery was happening. The list now is meant to reflect that. Three big things about it: Not since our inaugural Power 100 in 2008 has the upper echelon been so dominated by the familiar moguls, but not all are patronymically so. There’s a rustling at the top.
There are the Durst cousins, yes, and Anthony Malkin (No. 12), Donald Trump (No. 14), the Speyers (No. 15) and Richard LeFrak (No. 20)—and, for that matter, Andrew Cuomo (No. 2)—but also the boot-strappy likes of Mort Zuckerman (No. 5) and Andrew Farkas (No. 11), and our very own Richest Guy in Town, Michael Bloomberg (No. 7). We also have relative newcomers, like the benignly voracious Gary Barnett (No. 6); the seemingly ruthless Mikhail Prokhorov (No. 24); and the oddly familiar Scott Rechler (No. 19), back in Manhattan in a big way.
Check out #11 on the Observer slideshow to see Andrew Farkas.
Click here to view the full original article from the Observer.
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Posted by admin on Mar 14, 2011
Keep an eye on National Real Estate Investor’s 10 picks for people shaking up the commercial real estate industry in 2011. Each of the leaders profiled has made a bold move, and over the coming year time will tell whether their instincts and the risks they have taken pay off. The 10 are selected from across the spectrum of property types and financial interests. They reflect the impact of the recession, from the investments made by a private equity fund to the credit strategies of a retail REIT in the aftermath of bankruptcy. One profiled executive left the industry after selling a major apartment portfolio in 1998, and returned to launch an international real estate merchant bank.
Andrew Farkas was among the top 10 listed on the National Real Estate Investor’s picks.
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Posted by admin on Mar 8, 2010
NEW YORK, NY–(BUSINESS WIRE) March 8, 2010– Island Capital Group LLC (“Island Capital”), a private real estate oriented merchant banking firm controlled by Andrew L. Farkas, and Centerline Holding Company (“Centerline”) announced today that through its affiliate C-III Capital Partners (“C-III”), Island had acquired 100% of Centerline’s institutional real estate debt fund management and commercial mortgage loan servicing businesses. This transaction immediately makes the newly created private company one of the largest special servicers of CMBS in the United States, as it is presently the named special servicer for approximately $110 billion of loans in 81 CMBS securitizations.
In connection with the acquisition, Island Capital along with Centerline also announced that Island had completed a total restructuring of Centerline’s financial structure and core business operations by eliminating approximately $1.6 billion of debt, contingent liabilities and preferred equity, providing a much needed injection of equity and liquidity and permitting the company to emerge as one of the healthiest and now most stable companies in its industry. Island Capital affiliates provided in excess of $100 million of new cash equity in connection with the acquisition and restructuring, and C-III will also own approximately 40% of Centerline, which will remain as a public company.
Subsidiaries of Anubis Advisors, which is a wholly-owned subsidiary of Island Capital, have been retained as the exclusive external managers for C-III and Centerline. In such capacity, Anubis will provide strategic planning, corporate management, restructuring, M&A and other financial services to both companies.
Island Capital’s strategy in acquiring the CMBS fund management and real estate loan servicing businesses from Centerline is all but identical to the strategy successfully deployed in connection with the creation and building of Insignia Financial Group, Inc. Insignia, founded by Mr. Farkas in 1990, consolidated much of the then distressed real estate syndication industry, ultimately growing to become one of the largest owners and operators of real estate in the world, including 350,000 units of multi-family residential housing and in excess of 250 million square feet of office, retail and industrial space. Insignia’s growth was a function of the aggregation, restructuring and management of complex real estate oriented equity derivatives. Mr. Farkas, now Chairman and CEO of Island Capital, said “The creation of C-III represents the adaptation and implementation of the Insignia strategic and operating model to the present environment. Back in 1990 we started acquiring real estate oriented equity derivatives and building a property and asset management business to service the assets controlled by the derivatives. With C-III we are seeking to acquire real estate oriented debt derivatives and to build special servicing and ancillary businesses to manage those.”
C-III will operate as special servicer for CMBS through its wholly-owned subsidiary Centerline Servicing (which will continue to operate under that name during a transition period), which is currently the named special servicer for approximately $110 billion of loan in 81 CMBS securitizations. Other C-III subsidiaries also control real estate debt investments that have a face value of approximately $3.1 billion. Under Anubis’s management, C-III’s intention is to integrate a principal capital deployment and M&A strategy within its operations to acquire incremental CMBS, CMBS fund managers and other servicing operations. C-III also intends to pursue institutional third-party servicing relationships and to expand into business lines complementary to those in which it presently operates.
Anubis also plans to apply the Insignia strategy to the operation of Centerline. Centerline will continue to operate in its core businesses of Low Income Housing Tax Credit origination, affordable housing asset management and agency lending. Centerline has historically been one of the largest syndicators of low income housing tax credits in the U.S., placing in excess of $1 billion in its peak year. It also provides asset management services to approximately 1,400 multi-family residential properties. Centerline’s agency lending platform has originated and manages in excess of $9 billion of agency loans. Anubis intends to assist Centerline in the acquisition of other companies in businesses similar or ancillary to those in which Centerline presently operates. It will also assist Centerline in expanding its existing operations into businesses that are complementary to its present portfolio. These may include the acquisition and/or creation of additional asset management companies, controlling interests in real estate limited partnerships and similar investment vehicles, other agency lenders and an affordable housing property management business.
Anubis’s and Island’s management teams are comprised of many of the same professionals responsible for having built Insignia’s businesses from 1991-2003. The team was also responsible for the monetization of Insignia’s platform, selling the businesses (with a portfolio of in excess of $12 billion) in three transactions between 1999 and 2003 — its apartment portfolio was sold to AIMCO (NYSE: AIV) in 1999; and in 2003 Insignia sold its New York City residential brokerage and management business (Douglas Elliman) to Prudential and then merged its global commercial real estate businesses into CB Richard Ellis (NYSE: CBG) to create the largest commercial real estate services company in the world.
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Click here to view the full original article from the Observer.