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Your company's address can attract more investors.

It is hard for investors to distinguish which hedge funds are bona fide, well-managed and established companies, and which are just another zealous group of up-starts wanting to jump on the ever popular hedge fund bandwagon.

When an investor looks at a hedge fund, one thing her or she must look for is consistent performance--a consistency that adds some sort of balance to this high-flying, high-risk industry.

It goes without saying, though, that while the rate of return is of primary importance to investors, of secondary interest is the hedge fund's image. Nothing complements performance better than presentation.

That is accomplished most notably by the hedge fund's physical address--location, building, and quality of the other tenants in situe. In other words, an address that by virtue of its prominent and tasteful physicality sends the message 'we're strong, we're here to stay, we care about our clients and we are committed to helping them become successful.'

This is the mantra of both myself and my partner, Paige Menner, as well as one of our clients, The Davenport Group. "A good address brings with it a commitment to the business.

It sends an appeasing message to investors that this is not a fly-by-night operation," says Hrant Tosbath, President of The Davenport Group, which specializes in hedge fund investment and marketing.

Hedge funds in Manhattan typically desire to be located in the Plaza District somewhere north of 50thStreet and either on Park, Madison or Fifth Avenues. Often hedge funds prefer to be in a building that houses other hedge funds, such as 711, 712 or 745 Fifth Avenue. Another option is the hedge fund hotel situation, such as offered by Pali Capital at its superb state-of-the-art premises at 650 Fifth Avenue.

"Flexibility is also a key issue as some start-ups often only want to commit to a lease of one to three years, which is considerably less then the standard five to ten year leases that most landlords require.

The broker needs to know which buildings and owners will accept the shorter lease terms. In addition, most hedge funds prefer a large open area for trading, a conference room, several private offices and a warm reception area for greeting clients. Good signage and high-speed Internet connection are also prerequisites. How do you find the best space? Both Paige and I agree that forward planning is 'de rigueur.' As you know, a real estate transaction is a major financial consideration. We, as brokers, act as a fiduciary. It is our responsibility to have broad market knowledge, understand requirements, and prepare long-term real estate plans.

Among our clients, some of the most sophisticated are corporations, and even they depend on our expertise.

When you allow us to represent you, and it is brought to a landlord's attention, it undoubtedly results in better terms for the prospective tenant. Thus the deal is reduced to its rock bottom terms. It's never too early to have someone looking at your current circumstances in the marketplace on your behalf.

As real estate professionals, Paige and I realize how painful it can be for a hedge fund to face this task alone. We represent clients on a local, national and global level.

We have developed a niche expertise in assisting hedge funds earmark office space in Manhattan that complements their high-end nature of their business, because the two really do go hand in hand.

MONICA WOLFSON, VICE PRESIDENT,

& PAIGE MENNER, ASSOCIATE,

CB RICHARD ELLIS
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Title Annotation:mutual fund industry
Author:Menner, Paige
Publication:Real Estate Weekly
Geographic Code:1U2NY
Date:Feb 9, 2005
Words:574
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