IREM holds 3rd Annual Asset & Property Management Symposium

The Greater New York Chapter of the Institute of Real Estate Management held their Third Annual Asset & Property Management Symposium last week. The event, sponsored by Related Management; R.Y. Management Co., Inc., Jones Lang LaSalle; Stark & Stark and Kismet Construction, featured various panel sessions conducted by well known professionals in the industry. The day kicked off with the Industry Leader's Round Table, with David Kuperberg, CPM & chief executive officer, Cooper Square Realty; Bob Knakal, chairman, Massey Knakal & Richard Conniff, chief Operating officer, RXR Realty. The session was well balanced and the audience enjoyed the smooth and congenial discussion among some of the industry's biggest personalities. Kuperberg stressed the need to return to the solid fundamentals in property management, especially if we hope to turn poor performers into valuable assets. And although there is a current glut of units and space, the shut down of new development will create a lack of inventory in the future. Conniff is convinced that there is a lot of money waiting on the sidelines, but buyers and investors are waiting for good, stable assets before dipping their toes back in the water. He reminded the rapt audience that New York City is resilient and is not suffering as much as most of the rest of the country. In fact, he observed that the City appears to be recovering already. Among Knakal's concerns is the shortfall that will occur when the "blend and extend," "kick the can down the street" approach to the overhang in loans comes to an end and properties need to be re-financed. Even though the negative equity prevalent in the market is causing concern, he doesn't see a "tsunami" of losses, but the market will have to work through its problems as it has done in past downturns. While no panelist was prepared to peer into his crystal ball to predict who will blink first, sellers or buyers, all agreed that one side will need to make a move to determine the new equilibrium. In addition, the uncertainty over the fate of the capital gains tax adds to the discomfort of investors and stability will come faster when greater certainty about regulations and taxes are established. In addition, investors must grapple with an increase in government regulations - a hidden tax on real estate operations and investments. "It was certainly my privilege and honor to share the stage with such astute professionals. The energy radiating from them as they commented, counseled, discussed and yes, on rare occasion disagreed, was palpable," said panel moderator Nicholas Stolatis, CPM, IREM Greater N.Y. chapter treasurer. A vendor showcase, five educational sessions and special keynote speaker Robert Stuckey, managing director and head of U.S. Real Estate Funds, The Carlyle Group, a private equity firm, discussed real estate fundamental trends and capital market trends rounded out the day of education and networking for real estate asset and property management professionals.