Moving Forward

I started my career in real estate in 1987. I was a freshman in college and was hired as an accounting intern for a shopping center developer. For the first 6 months of my employment it looked like this company could do no wrong. The company grew quickly, making deals all over the east coast and banks were lending 110% of each deal. But by the end of my six month internship everything had changed. Tax laws changed, lender liquidity issues arose, retailers declared bankruptcy and the economy contracted. This was the start of a real estate downturn that lasted 10 years.

The year 2007 and 2008 are very similar to the late 80s. Lenders stopped lending, tax laws are about to change, retailers are declaring bankruptcy left and right, and the economy has slowed to a trickle. This makes for some pretty tight times going forward in the next few years. In the 80s and 90s only the well run and financed companies were able to continue and that's going to be the same going forward now.

In the last few years many investors bought apartment buildings because they thought the market was going to keep going up; easy money. Well, now those investors are seeing that this business is not that simple.

See link to Stuyvesant deal ----
http://seekingalpha.com/article/94321-manhattan-real-estate-is-teetering-barron-s

I feel that we have positioned our company well for the coming years. We have one of the best management teams in the Multifamily business. We have a solid team and group of contractors to stabilize new projects. We have financed more than Half a Billion in debt and continue to attract some of the best lenders in the industry. We have created a differentiating factor for ourselves with our Signature Community brand that continues to lead the industry in innovation and customer service for our residents. And we have one of the largest most aggressive acquisitions group in the industry.

The upcoming year 2009 thru 2012 are going to be difficult years but with our team and our focus on the NWJ/Signature Model we will turn adversity into opportunity. The times are going to make us into the Billion dollar company we have been striving for.

"You buy when the blood is in the street. That little formula has worked miracles. It's just the opposite of what the average guy does. You want to buy [when there is] 'panic' and sell [when there is] 'euphoria.' It's all market psychology. It's all fear and greed." - J.P Morgan

Thanks for Making It Happen.
Nick