CPN - January 2009 - (Page 21) DEVELOPMENT INDUSTRY PULSE square feet of office space and 2 million square feet of industrial space in Mexico. But it wanted to enter the U.S. market and contacted the partner of 396 Alhambra principal Eduardo Avila about potential opportunities. Many developers have adjusted their business plans to account for the new reality. Beginning this month, for instance, office and industrial developer KDC will increase its acquisition activity, having added staff members who have expertise in acquisitions and the capital markets, said CEO Steve Van Amburgh. “In the past, our split has been 80 percent development and 20 percent acquisition. For the next 36 months, we see the split as being from 50 to 60 percent acquisition and from 40 to 50 percent development.” As office prices fall, often below replacement cost, and many companies freeze hiring or even cut jobs, Van Amburgh expects many a company to consider housing all its employees in one existing, efficiently designed building. KDC plans to focus on buying and owning office and industrial buildings long term, he said. It will also work with corporations that want to execute saleleaseback transactions as they seek new ways to access capital (see “Frustrated Market” on page 17 for the limitations such companies face). MOTHER OF INVENTION Some developers are identifying deals born out of necessity. In late November 2008, National Realty & Development Corp. hosted a groundbreaking ceremony for a 385,000-square-foot greyfield project to rehabilitate a shopping center in Somerdale, N.J., that was 70 percent vacant. Plans for the redeveloped CooperTowne Center feature a new, 220,000-squarefoot Wal-Mart Supercenter and a 100-unit residential community on adjacent land. As important as reviving this Visit www.cpnonline.com/search and enter key word “infrastructureimprovement” in quotation marks for more on prospects for development in 2009. dormant asset was, the community wanted the shopping center to serve an additional purpose, said National Realty president John Orrico. “They wanted a center that has a sense of place, something with a downtown look and feel,” he said. Scheduled to open in 2010, it will include a plaza that can accommodate public ceremonies, as well as extended pedestrian-friendly sidewalks and parallel parking to enhance the urban feel. Key factors sat in National Realty’s favor when it sought financing. The developer locked up its construction loan with M&T Bank in April and closed in October, receiving funding at a time when retail projects hardly topped many lenders’ lists.“We’re well capitalized, we have a good Continued on page 24 ® “Every market has its opportunities.” THE NYU SCHACK INSTITUTE OF REAL ESTATE Credit is tighter, uncertainty is greater, and preparing for a career in real estate or construction management has never been more important. The market has changed, but not for the first time. When taken in context, the current real estate environment is not so much an example of the inherent uncertainty of the industry, but rather an underscoring of the cyclical nature of the business. For those with the expertise to meet the challenges, the result will inevitably be an entirely new set of opportunities. Over the last 40 years, the NYU Schack Institute of Real Estate has become one of the most respected institutions of higher learning in the real estate industry. We offer a wide range of exceptional educational opportunities, including graduate and certificate programs, national conferences, and over 500 courses, many of which fill New York State continuing education requirements. Our faculty consists of leading industry authorities, drawn from one of the world’s most sophisticated real estate markets. Experts in both construction and real estate will provide you with the insight, perspective, and connections necessary to achieve the highest level of success in these dynamic and increasingly complex fields. DEGREE OFFERINGS: CERTIFICATE PROGRAMS include: PROFESSIONAL LICENSING PROGRAMS: and over 500 industry courses. Continuing Education Information Sessions take place January 12 and January 13. Visit scps.nyu.edu/sessions. Contact us for the current Bulletin. scps.nyu.edu/x633 New York University is an affirmative action/equal opportunity institution. ©2009 New York University School of Continuing and Professional Studies www.cpnonline.com • January 2009 • COMMERCIAL PROPERTY NEWS 21 http://scps.nyu.edu/sessions http://scps.nyu.edu/sessions http://scps.nyu.edu/x633 http://www.cpnonline.com/search http://www.cpnonline.com
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