When the music stopped during the first several months of the recession, commercial real estate professionals across the board found themselves scrambling for the remaining jobs.
People with years of experience suddenly couldn’t find an open door.
Some went into business for themselves. Others set their sights on different aspects of the business that evolved out of the economic downturn. At the same time, recent college graduates discovered that a degree did not earn them automatic employment.
The Phoenix Business Journal talked with several commercial real estate people who have discovered how to survive and thrive in a different world.
Office condo bust
Ross Guttler was brokering office condos at
“The market was still really good then, but residential sales had slowed. I realized then that the office condo craze could not continue,” said Guttler, who now handles commercial acquisitions and dispositions for
The connection between residential and office condos was obvious to Guttler. Buyers were financing their office condos with home equity loans. The residential market was retracting, prices were falling and office condo sales suffered as a result.
“I realized I couldn’t stay (at
But while he was still there, Guttler took on some side deals working with banks that had taken back real estate as a result of loan defaults. That was 2008, which Guttler describes as “my worst year.”
Through a get-together sponsored by the Urban Land Institute’s Arizona Chapter, Guttler met up with Beth Jo Zeitzer, president of ROI, which specialized in bank-owned properties long before it was fashionable.
“She thought I’d be a good fit. I knew she already had a great platform set up,” Guttler said.
He started in June 2009, and he’s on track for the best year of his career.
Terri Tobey also specialized in office condos as senior vice president of marketing at
“Everything was going gangbusters when I started in September 2006,” she said. “A year into it, I realized we were having to get more aggressive. Then the banks stopped lending in 2008, and the party was over.”
Tobey left Utaz in April 2009 and was recruited by CB Richard Ellis for its health care team. A few months later, she left to start her own business, Arizona Development & Consulting Brokerage Service.
“I was too pigeonholed with all my contacts to just do health care. I tell people I specialize in whatever’s hot,” Tobey said.
Now she works seven days a week, and recently spent a day showing a developer from
Adventures in retail
Marc Grayson and Summer Katzenbach were firmly entrenched in the retail development business with one of the Valley’s largest shopping center developers,
Both were closely involved in one of Vestar’s premier projects, Tempe Marketplace, which opened in September 2007. Both were laid off in late 2008 when the economy cratered
Wells Fargo Bank NA filed a notice of trustee sale on two subdivisions being developed by Phoenix-based
Both properties are scheduled to be sold at auction April 15.
Wells Fargo loaned Cachet $37.2 million for the Gilbert property and $15.8 million for the
“We cannot comment about this matter because our customer relationships are confidential,” said Wells Fargo spokeswoman Marjorie Rice.
Cachet is one of the few private home builders in
These are not the first Cachet properties that have encountered problems.
Wells Fargo foreclosed on a 16-acre property in the Buckeye master-planned community of Verrado in February 2008. The bank took back the land from Cachet and sold it to Meritage Homes in November 2009, according to Zach Bowers, a real estate analyst with
Two other properties — subdivisions in the Vistancia master-planned community in
Even though its
“There may be other builders in similar situations to (Cachet’s), but none come to mind at this moment,” said Jim Belfiore, founder of Phoenix-based
Ben Sage, director of
Get Connected
Cachet Homes: www.cachethomes.net
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