![]() In 1968, at the age of 28, he founded LaSalle Partners, today one of the largest asset managers in the country, building it into a prominent real estate advisory and asset-management firm that catered to institutional investors. degree in agriculture from Cornell University, made his fortune in Chicago. He further agreed to acquire no more than 32 percent of the REIT over the next two years, during which time he would vote his shares with management. At the same time, Sanders reached an agreement with Property Trust on an option to purchase 600,000 new nonvoting, convertible preferred shares. The matter finally came to a close in February 1990 when Sizeler gave up and sold off its shares of Property Trust to SWRT Inc., a company created by Sanders for the purpose. Over the next several months Sizeler sweetened its tender offer in a bid to gain a controlling 55 percent stake, but was rebuffed. Beginning in July 1989 the REIT became the target of a solicited takeover by Sizeler Property Investors Inc., a Kenner, Louisiana, REIT that owned nearly 10 percent of Property Trust. Property Trust would attain focus, namely the apartment market in the Southwest, when it became involved with real estate mogul William D. Although the REIT was diversified, it also was difficult for investors to evaluate, since its assets were spread across various sectors performing at different levels. It became involved in a wide range of real estate investments, in the 1980s investing in everything from shopping malls to a Holiday Inn located in San Francisco ’s Fisherman ’s Wharf. With real estate available at distressed prices in the early 1990s REITs finally became an attractive mainstream investment option.Įl Paso Real Estate changed its name to Property Trust of America in 1970. That period also witnessed overbuilding and a glutted marketplace, leading to a shakeout in the marketplace. ![]() In the latter half of the 1980s the banks, insurance companies, pension funds, and foreign investors (in particular, the Japanese) provided the lion ’s share of real estate investment funds. Despite these major changes in law, REITs were still not fully utilized. The Act also permitted REITs to provide customary services for property, in effect allowing the trusts to operate and manage the properties they owned. Tax shelter schemes that had drained potential investments were shut down: Interest and depreciation deductions were greatly reduced so that taxpayers could not generate paper losses in order to lower their tax liabilities. ![]() Not until the Tax Reform Act of 1986 changed the nature of real estate investment did REITs begin to gain widespread usage. Third parties had to be contracted to manage the properties. During the first 25 years of existence, REITs were allowed only to own real estate, a situation that hindered their growth. Unlike stocks, however, REITs were required by law to pay out at least 95 percent of their taxable income to shareholders each year, a provision that severely limited the ability of REITs to raise funds internally. They were also subject to regulation by the Securities and Exchange Commission. REITs could be taken public and their shares traded just like stock. ![]() REITs were a new creation, established by Congress in 1960 as a way for small investors to become involved in real estate in a manner similar to mutual funds. The lineage of Archstone-Smith can be traced back to the 1963 formation of a Texas REIT named El Paso Real Estate Investment Trust. Origins of Archstone-Smith Dating Back to 1963 More recently it has staked a claim in the highly competitive New York City market, becoming the first multifamily REIT to purchase an operating apartment property in Manhattan. The core markets for Archstone-Smith are California, southeast Florida, Boston, Chicago, Seattle, and Washington, D.C. Smith brand is dedicated to high-rise properties. Its Archstone Communities brand operates garden-style units, and the Charles E. The REIT owns nearly 80,000 apartments, representing a total market capitalization of approximately $10 billion. Public Company Incorporated: 1963 as El Paso Real Estate Investment Trust Employees: 3,300 Sales: $829.2 million (2001) Stock Exchanges: New York Ticker Symbol: ASN NAIC: 525930 Real Estate Investment TrustsĪrchstone-Smith Trust, with headquarters in Englewood, Colorado, is the third largest apartment real estate investment trust (REIT) in the United States. Panorama Circle, Suite 400 Englewood, Colorado 80112 U.S.A.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |