PRINT THIS STORY:

CHANGE TEXT SIZE:

CAPITAL MARKETPLACE TO SPOTLIGHT MIXED-USE FINANCING

By Molly Knight

Mixed-use development is likely to be widely discussed at this year’s ICSC Commercial Real Estate Capital MarketPlace Conference in New York City later this month. “Mixed-use development is obviously a very, very hot topic right now,” said Marvin Morrison, ICSC’s senior vice president of programs and services. “The main thing that will be discussed is the perception of these developments in the marketplace.”

The one-day meeting, titled “Tapping into Capital Flows,” will take place Sept. 21 at the Marriott Marquis Times Square. The National Association of Industrial and Office Properties will be co-host, which may be another indication of the growing importance of the mixed-use format.

Retail developers started taking an interest in mixed-use projects in the late 1990s, and the trend has accelerated as REITs try to squeeze revenue out of malls by adding uses.

Bruce Macleod, president of Rye, N.Y.-based BMac Real Estate, will moderate a discussion on how mixed-use projects are being financed. Morrison says he anticipates the session will generate a great deal of interest. “We also expect a lot of buzz around shopping center developments in general,” he said. Retail real estate values and returns continue to outperform other sectors, Morrison says. He expects thousands to show up.

The luncheon speaker will be Michael D. Fascitelli, president of New York City-based REIT Vornado Realty Trust, which specializes in mixed-use development. A reception in the afternoon will give participants a chance to make deals and exchange ideas. “Each lending institution will have a table,” said Morrison. “They will each have representatives ready to meet with owners, investors, and developers of office, industrial, mixed-use and mall developments, and focus on making deals.”

There is no better place to put borrowers in touch with financiers, Morrison says. “This event is ideal for anyone in retail real estate looking for competitive financing,” he said. “It’s designed for providers of capital to meet with interested, qualified borrowers.”

The co-chairmen of the conference are Adam Ifshin, president of Tarrytown, N.Y.-based DLC Management Corp., and Simon Ziff, president of Ackerman-Ziff Real Estate Group, based in New York City. They, along with Michael P. Kercheval, ICSC’s president; and Thomas J. Bisacquino, president of the industrial and office properties trade group, will offer the opening remarks. Mark Dotzour, chief economist and research director at Texas A&M University will present an economic forecast for 2006.

Ziff will lead a panel about the state of private equity markets, specifically examining desired equity structures and attractive regions.

Morrison says participants will talk about options and terms associated with different types of financing: bridge, conventional, mezzanine and preferred equity loans, among others.

“This is an exciting event,” Morrison said, “because not only is there a great dialogue between industry people about all of these issues, but also it’s a great opportunity for lenders of capital to meet with qualified borrowers and make things happen."