Heading Towards Default, an Update on the Commercial Real Estate Outlook...
The first in a series of profiles of Chandan Economics' Board Members and their paths to leadership in industry, academia, and policymaking.
As a real estate syndicator early in his career, Ronald Johnsey had watched the institutional management firms that oversaw large funds pile on fees for their services. And in the strong real estate market of the mid 1980s, the rewards seemed justified. But by the early 1990s, many of those investments had sunk into financial distress under the weight of an economic recession. Johnsey saw a bright side.
The situation presented an opportunity to buy up portfolios of apartment buildings at a substantial discount, reinvest in them, and eventually lease them at a profit.
Johnsey urged the firm he was working with to consider such a strategy but found the company disinterested in the idea. After all, it was still collecting a steady stream of charges for administering the funds it managed, despite the fact that many now had assets underwater. Because the firm was essentially in a fee business, it received its compensation both in good times and in bad. The losses were to be borne by the investors.
Download the complete profile of Axiometrics Founder and President Ron Johnsey.
Chandan Economics' Academic and Industry Advisory Boards are comprised of eminent academic researchers and commercial real estate industry leaders, representing an extraordinary depth and breadth of experience and insight. These individuals provide Chandan Economics with access to unique and fully independent perspectives on policy and regulatory issues as well as current and prospective trends in the real estate industry.