Posts Tagged ‘transaction’
eHarmony: Is JV Equity a “Dating Game?”
February 8th, 2010 | 
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Editor’s Note: With Valentine’s Day coming up this weekend (order your flowers ASAP!), we figured, why not start off the week with a Cupid-esque topic? We can’t wait to hear your feedback on this one….
When a joint venture partnership occurs in real estate, the term “getting into bed” is often tossed around. And despite the fact that real estate is an industry dominated by men (and therefore subject to more coarse, perverted analogies), this phrase is somewhat appropriate. When you sleep with someone, you want to make sure you are protected (from exactly what, I will leave to the reader’s imagination), right? Well the same goes for your equity partner in a real estate transaction. Yet, while all real estate transaction involve some form of due diligence, JV equity partnerships involve an entirely different level of due diligence.
Rather than scoping out the salient facts of the deal, examining the borrowers track record, and crossing all the “t’s” and dotting all the “i’s” of a particular transaction (like a bank might do), an equity partner has to get extremely comfortable with the sponsor’s style and personality in addition to the aforementioned due diligence. For this reason vetting a JV equity partner has become a lot more like eHarmony than a one night stand. Read the rest of this entry »
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Money in (and from) the Bank
Stanley Bing, an often insightful contributor to Fortune Magazine, wrote a very interesting blog post last week in regards to banking compensation. He cites an article in the NY Times that said, “Roughly 90 cents out of every dollar that these banks earned in 2009 — and sometimes more — is going toward employee salaries, bonuses and benefits, according to company filings.” The paper also notes that Citigroup “paid its employees so much in 2009 –$24.9 billion — that the company more than wiped out every penny of profit.” There has been a lot of outrage over banking institutions who took TARP money paying such exorbitant salaries and bonuses…but is it really a bad thing? Read the rest of this entry »
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Are Many Services a Conflict of Interests?
For years, tenant representation firms like Studley argued during their pitches to clients that by representing tenants and tenants only, they truly had their clients’ best interests at heart…there was no conflict of interests. National giant firms like CBRE, Grubb & Ellis, and Cushman & Wakefield, who often represented both landlords and tenants, would always make the counterpoint that because they represented so many landlords, their data was better, and therefore they could provide their tenant clients with the most accurate and up to date information in the marketplace, and therefore provide the best deals in the marketplace. This is a psychological battle that continues today, with no clear winner. The victor usually is the one who can convince the client that their line of thinking is the logical one. Read the rest of this entry »
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