David Lichtenstein is an American real estate entrepreneur and investor. He is the founder and CEO of The Lightstone Group, which he founded in 1988. During the early years of the Lightstone Group, Lichtenstein focused on investing in multi-family properties. He quickly developed his portfolio in the 1990s, before diversifying his portfolio and moving to retail. Lichtenstein in 2003 bought Prime Retail for $ 638 million, seen as one of the largest retail purchases in the United States at the time.
Since 2007, Lichtenstein is responsible for some of the largest acquisitions and sales in the retail and hospitality sectors. In 2007, The Lightstone Group acquired Extended Stay Hotels for $ 8.1 billion and sold Prime Retail in 2010 for $ 2.1 billion, generating substantial profits in the outlet mall group. Lichtenstein has recently been involved in New York City real estate and played a major role in the rebuilding of Brooklyn and the Gowanus Canal region in the borough.
Lichtenstein was appointed to the board of directors of the Economic Development Company NYC in 2015 by Bill de Blasio and resides on the board of governors of the New York Real Estate Council.
Video David Lichtenstein
Kehidupan awal
Lichtenstein was born in 1960 to a Jewish family in New York City, USA. He had a great interest in property during his twenties and launched his real estate career after buying a building. At that time, Lichtenstein lived in a house of two families in New Jersey.
He bought his first property with a $ 12,000 down payment in the mid-1980s, which was funded by maximizing credit cards and using some funds from small savings. Over a three-year period, Lichtenstein reinvested capital from his property to fund down payments on more properties. The new property was then used with a loan, allowing Lichtenstein to continue to increase its portfolio.
Maps David Lichtenstein
Careers
Lightstone Foundation (1988-2003)
Following the successful running of a small real estate business during the early to mid-1980s, Lichtenstein founded The Lightstone Group in 1988. The company was founded in Lakewood, New Jersey, and grew rapidly during the early years of company history. The initial focus for the first few years was to purchase a multi-family property in the New Jersey area.
In the 1990s, Lichtenstein cultivated The Lightstone Group's portfolio to more than 20,000 apartments in 28 states. The company is recognized in the top 30 apartment owners across the United States at the same time. From 1997 onwards, there was a boom in housing prices in the United States, which lasted for almost a decade. The explosion was good for Lichtenstein's existing portfolio, but it made it harder to find affordable properties to buy.
The housing bubble that began in 1997 caused Lichtenstein to look elsewhere in other real estate opportunities, which included properties outside the United States for the first time. In 2000, Lightstone began investing in retail strips, before moving to the mall. His first major purchase in retail took place in 2002, when he acquired a Prime Retail-run mall for $ 36.5 million. This outlet mall is based in Puerto Rico and is one of many major Retail developments that require redevelopment at the time of purchase. Lichtenstein stated in an interview that the outlet mall at that time had become "an unlikable stock in an unprofitable industry".
After seeing the potential of a single mall in Puerto Rico, Lichtenstein made his first major deal in the real estate market in 2003. He bought all of the $ 638 million Prime Retail portfolio. Its portfolio consists of 37 properties and spread across several US states. The company was founded as a subsidiary of The Lightstone Group and made Lichtenstein the owner of the second largest outlet in the national center after Simon Property. In 2003, Lichtenstein signed an agreement that would later become one of his most recognized successes - the purchase of an entire Prime Retail portfolio for approximately $ 638 million, attracting 37 properties from places like Pleasant Prairie, Wis., Odessa, Mo., and Gaffney , SC This acquisition makes Lightstone the second largest mall owner in the country after Chelsea Premium Outlets, owned by Simon Property Group Inc., the owner of the largest mall in the country. This acquisition made Lichtenstein the owner of a number of well-known buildings and spaces in Chicago, where Prime Retail was previously based. They include IBM Plaza, 208 South LaSalle Street and United Building. With the purchase of Prime, Lightstone also took over some of Chicago's famous commercial spaces, including world-renowned buildings such as Mies van der Rohe designed by IBM Plaza, 208 South LaSalle Street and United Building.
By the end of 2003, Lightstone was recognized as one of the largest and most active property buyers in the United States. They are estimated to be worth $ 1-2 billion at that time.
REIT and further investments (2004-2010)
Lichtenstein announced in 2006 that it would launch a real estate investment trust (REIT), which allows Lightstone to raise capital from outside investors. The launch of REIT, called Lightstone Value Plus, has a value of $ 300 million and aims to invest in a mix of offices, retail and other commercial properties. According to The New York Times , many developers at that time concentrated on "trophy buildings" in major cities of the United States. His strategy is different from many big investors at the time, as he says, "do you want to go to a fishing hole where there are plenty of other people fishing, or do you want to be where you're the only person with a hook in the water "We will concentrate on the place where the big boys do not."
During the same year, Lichtenstein re-invested in housing with a number of large investments in affordable housing. He bought 5,000 units at 19 multifamily rental properties in Detroit. It was reported that the entire deal was a total of $ 200 million. The second housing deal this year is in Birmingham, Alabama, where he spent a total of $ 303 million on a number of apartments. While expanding the diversity of investments, he also moved to hospitality in 2007 with his biggest deal to date. Lightstone acquired Extended Stay Hotels for a total of $ 8.1 billion, making Lightstone the parent company of one of the largest mid-priced hotel brands in the United States. At that time, it said the hotel group has 683 hotels in 44 US and Canadian states.
Lichtenstein sold Prime Retail in 2010 to Simon Property Group, which is already the owner of the largest mall outlet in the United States. The $ 2.3 billion deal frees cash for further investments.
Recent investment (2011-present)
Lichtenstein Lightstone Value Plus is one of a number of REITs that attract the attention of investors, due to market instability. By the end of 2010, REIT generated approximately $ 9 billion, with an annual yield of 6.5 percent. Lightstone Value Plus is the largest REIT based in the United States that is not traded, with a 7 percent dividend. The percentage was much higher than that of many other non-traded REITs during that period. Following the success of Lightstone Value Plus, Lichtenstein launched a second non-traded REIT. Lightstone Plus II values ​​follow the same strategy with initial funding, with a focus on investing in a number of markets.
Retail Prime Sales and both REITs gave Lichtenstein substantial funds to invest throughout 2011. According to reports, there are approximately $ 350 million left over from Retail Prime sales, which are reinvested into new transactions. In 2011, they purchased the Florida Bay Festival Mall for $ 25 million, the $ 10 million Crown Plaza Boston North Shore hotel and the housing development on Long Island City, New York, for $ 19.3 million.
Lichtenstein and Lightstone Group announced the launch of Phoenix Development Partners, which aims to develop large-scale rental opportunities in New York City. Despite the focus on moving to a New York City-based investment, Lichtenstein continues to expand its portfolio in other locations across the United States. In September 2012, Lightstone Group announced that it will buy a $ 51 million housing development in Long Island City.
In 2013, Lichtenstein and Marriott completed their first transaction, purchasing three Marriott-branded hotels in Iowa and Ohio for $ 21 million. Later that year, Lichtenstein went to Israel, to discuss entering the debt market of Israel. Borrowing from Israel is used to bear a number of developments in the Brooklyn Gowanus Canal area.
Investment
The Lichtenstein strategy has evolved over the years, but the bottom line remains a willingness to look for properties that offer high return prospects and have challenges or complexities that limit their appeal to other investors, including property with depressed capital structures. Although the risk of this strategy is often publicly documented, its return is quietly bagged: Lightstone held tightly has averaged over 30% annual returns for most of its existence.
Lichtenstein has publicly said that he made risky investments in the past. He even shares some of his business tactics by saying that it is smart to buy land, not the house built on it. Lichtenstein has publicly spoken of risks and predictions in Commercial Real Estate on CNBC and Bloomberg.
Lightstone continues to seek new acquisitions across the country in urban and suburban locations and across a wide variety of properties, including industry, offices, retail, multifamily and hospitality.
Board role
Bill de Blasio appointed Lichtenstein to the Board of Directors of the NYC Economic Development Company in 2015. Lichtenstein is the Board of Governors of the New York Real Estate Council. Lichtenstein is the guardian of the Citizens' Budget Commission, and is a Member of the Real Estate Round Chair and the Joint Advisory Committee on Real Estate Capital Policy. Mr. Lichtenstein is a member of The Economic Club of New York. As part of his involvement in New York City real estate, he also became the Board of Governors of the New York Real Estate Council.
Lichtenstein is the guardian of the Supervisory Committee for The New York Medical College; he is also the guardian of The Touro College and University System and sits on the Board. Lichtenstein is also a member of the Board of Economic Studies at the Brookings Institution.
Lichtenstein supports a number of social causes. Lichtenstein made regular contributions to the New York chapter of the Special Olympics and New York Peduli. He also supports the work of the Memorial Sloan-Kettering Cancer Center; and he and Lightstone Group gave to Matt's Promise and Hospice of Virginia.
In September 2005, Lightstone Group donated 50 Memphis apartments to help victims of Hurricane Katrina in need of housing after the storm, offering free rental apartments for six months. "We are fortunate to have the ability to house families affected by this traumatic event and can only hope that in some small way, those affected by this tragedy will be able to take some comfort in receiving this temporary shelter," Lichtenstein said. Lichtenstein himself matched contributions to the dollar-for-dollar aid effort of all employees in the group of companies The Lightstone Group: The Lightstone Group, Prime Retail Inc., Realty Trust Main Group (PGRT), Park Avenue Funding LLC, Park Avenue Bank, Lightstone Securities and Lightstone Value Plus, Real Estate Investment Trust.
After Hurricane Sandy in November 2012, Lightstone Group donated more than 11,000 square feet of office space at 1407 Broadway to help businesses affected by the storm. More than 17 million square feet of office space in lower Manhattan has been closed after Sandy. Donations - in collaboration with the city's Economic Development Company - allow businesses to remain in the Manhattan office for six months. Lichtenstein is the founder of Friendship House, an organization that provides housing near hospitals to families who want to be near loved ones when needed. <53> [54]
Books and radio shows
Lichtenstein is the author of two books on halakha views on recent events such as terrorism, gay marriage, abortion, missionary activities, madness, genetics and vaccinations, published by OU Press: Headlines and Headlines2. He also has a weekly radio show on topics related to his books at several stations in the New York-New Jersey area. Podcasts are available at http://podcast.headlinesbook.com/
References
External links
- Lightstone's old page design, About David Lichtenstein Page
- Crunchbase, David Lichtenstein's page
Source of the article : Wikipedia
0 Comments