Goldman Sachs exec talks of 'opportunity after storm'.Buying distressed real estate and securitized securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. investment vehicles were among the "opportunities after the storm" described by Michael D. Fascitelli at a recent meeting of the Young Men's/ Women's Real Estate Association. Fascitelli, vice president and co-head of Real Estate for Goldman-Sachs & Co., said his company is doing a considerable amount of purchasing from the Resolution Trust Corporation (RTC See real time clock. ). With an Alexandria, Virginia Alexandria is an independent city in the Commonwealth of Virginia. As of the 2000 census, the city had a total population of 128,284. Located along the Western bank of the Potomac River, Alexandria is approximately 6 miles (9.6 kilometers) south of downtown Washington, DC. company doing the due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. , asset and property management, the firm has purchased apartment units for about $11,000 to $12,000 each and they expect a sale price of $18,000 to $20,000. They are also buying office "junk", he said, that can be acquired for $5 to $10 a foot and has a market value of $20 to $40 per square foot. Goldman Sachs The Goldman Sachs Group, Inc., or simply Goldman Sachs (NYSE: GS) is one of the world's largest global investment banks. Goldman Sachs was founded in 1869, and is headquartered in the Lower Manhattan area of New York City at 85 Broad Street. , he said, is pursuing these deals with $200 million of its own capital and $1 billion from pension funds. The RTC sales, Fascitelli said, are even more advantageous for smaller pools of investors and capital as the RTC is offering reduced cash discounts and allow 85 percent financing. "There's going to be a huge opportunity here in the principalling of those deals," he said. In the area of securitized investment devices, Fascitelli said there are three new Real Estate Investment Trusts or "REITs" due to come on line. One is to be issued by Goldman Sachs, another by Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. , and Morgan's Taubman-REIT. In 1985, Goldman Sachs released one of the largest REITs - Rockefeller Center Rockefeller Center, complex of buildings in central Manhattan, New York City, between 48th and 51st streets and Fifth Ave. and the Ave. of the Americas (Sixth Ave.). The project was sponsored by John D. Rockefeller, Jr. Properties. While it came out at $20 per share, it is down to $10 per share today. While the underlying real estate is strong, Fascitelli said, cash flow and cash flow growth are tantamount. As for tenant rep, Fascitelli said, they are disappointed in the fee pressure. In pitching to search for 250,000 square feet of prime midtown Manhattan recently, he said, Goldman Sachs was undercut by $1 million. "We are prepared to match fees to a certain point," he said, "and then we will walk away from that business. "When faced with buying or service, buy." While Downtown is still suffering, Fascitelli said, he believes the outlook for Midtown is stable. "We think Midtown is firming," he said. "We are urging tenants to sign leases and go longer." |
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