Ziman Center Chancellor's Board Meeting 2012

2013

Former Supreme Court Justice Sandra Day O'Connor Addresses UCLA Ziman Center Guests at Winter Board Forum

ZC Winter Board Forum 2013 - Sandra Day O'ConnorHundreds of distinguished alumni, faculty and students gathered for the UCLA Ziman Center for Real Estate's 2013 Winter Forum, giving attendees the unique opportunity to hear from former Supreme Court Justice Sandra Day O'Connor.

In addition to reflecting on her life, from growing up on a ranch on the Arizona-New Mexico border to attending Stanford Law School and experiencing sexual discrimination while finding employment in her chosen field, the former justice discussed judicial challenges presented by areas of particular interest to the real estate business, ranging from the financial crisis to regulatory regimes, and how they figure in the docket of the federal courts. A question-and-answer period followed featuring questions from the audience.

President Ronald Reagan appointed O'Connor to the US Supreme court in 1981, making her the first woman in U.S. history to hold this prestigious position.

The Ziman Center's twice-yearly forums feature talks or panels on important real estate, law or business topics.


UCLA Ziman Center Lunchtime Speaker Series: Dr. Frank E. Nothaft, Vice President and Chief Economist at Freddie Mac

Frank E. NothaftThe Ziman Center welcomed Vice President and Chief Economist at Freddie Mac, Dr. Frank E. Nothaft, on September 30, 2013 to share insights on the future of the housing market through his presentation, Housing & Mortgage Market Outlook: The Emerging Purchase Market.  Dr. Nothaft spoke to an audience of over 70 UCLA students and alumni, discussing the rental and single family markets.  Nothaft began by indicating that single family originations will likely drop down 25% in 2014 as the refinancing boom dissipates.  Nothaft's multifamily market outlook suggested an oncoming compression, rather than an increase, in cap rates throughout 2014.  Nothaft explained that while the cap rate spread is wide down, a tapering will be announced in early 2014.  In the meantime, cap rates are expected to hold steady.

Students from various disciplines were able to attend the Nothaft speaking engagement, representing the UCLA Anderson School of Management, Luskin School of Public Affairs, and School of Law.  One attendee inquired about how the increasing cost of education will impact the housing market.  Nothaft replied that a limitation will be placed in January 2014 allowing no more than 43% of one's income to go toward servicing different debt obligations.  Nothaft went on to say that young people have the same desire for homeownership as their predecessors, but that they also have the recognition that first-time home ownership must be delayed.  Future buyers will be in their 30s to mid-30s, which will cause a slow decline in the national home ownership rates over time.

Nothaft was appointed to the position of chief economist in December 2001 and vice president in March 2004.  In his roles at Freddie Mac, Dr. Nothaft is responsible for forecasts, research and analysis of the macroeconomy, housing and mortgage markets.  Nothaft is also involved in affordable lending analysis and policy issues affecting the housing finance industry.

UCLA Anderson students, faculty and staff can watch the full Mediasite recording here (UCLA Anderson login required).


Allen Matkins/UCLA Anderson California Commercial Real Estate Survey Sees Continued Optimism
Supply and demand in most sectors reaching equilibrium; Industrial space the exception


LOS ANGELES, July 10, 2013 -- Developers expressed evident optimism regarding commercial real estate market conditions in the latest Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey. The biannual survey projects a three-year ahead outlook for the state's commercial real estate industry and forecasts potential opportunities and challenges affecting office, industrial and multi-family sectors. 

AM-UCLA 2013 RE SurveyThe May 2013 results signify a continued recovery with an acceleration of growth in non-residential building until 2016 or 2017, when growth will continue, but likely at a somewhat decelerated rate. Surveyed industry leaders anticipate a stabilization to occur between vacancy and rental rates as new office space is absorbed into the market. Multi-family markets will experience increases in development and demand, especially with those located near transportation hubs. Industrial markets are expected to remain healthy, but with limited growth due to lack of increased exports.

View Highlights of the forecast report Real Estate Outlook - Allen Matkins/UCLA Anderson Forecast - Summer/Fall 2013

Office Development Sentiment Positive Amid Some Projected Dips in Occupancy Rates

Optimism remains strongest in the Bay Area, with surveyed real estate developers viewing 2016 as a year in which rental rates are expected to be superior to 2013.  Though occupancy rates may dip slightly relative to today, sentiment remains positive for non-residential construction in 2016 and 2017, as the expectation is for new office space to be absorbed. 

In the Bay Area, half of the surveyed developers responded that they will begin a new project in the coming year, and inSouthern California, one third of those expected to do the same.  The Survey points to continued growth in office space construction at the same or higher rates as today over the next three years. 

Multi-family Sector Looking Robust

In the three markets, Los Angeles, San Francisco and Silicon Valley, Survey participants continued to be confident about the outlook for multi-family housing between now and 2016.  More than half of the developers surveyed expect to begin new multi-family projects in the coming 12 months.

Double-digit rent increases and declining vacancies in San Francisco have driven a number of new building projects currently under construction.  Development activity is also strong in Los Angeles in response to declining vacancy rates in the Downtown area and the opening of a new light rail line that promises to spur a building boom in the county.  These projects, along with the survey results, support continued growth in multi-family housing through the survey horizon of 2016.

The Industrial Sector moves into equilibrium

Survey results show that the pace of new additions for industrial space has moderated over the past six months.  The survey panel judged that from last summer Survey, the pace of new additions to industrial space was met and absorbed by the market. While conditions are expected to improve through 2016, an acceleration of new development is less likely.  Consequently, only one third of those surveyed in Southern California and two thirds from the Bay Area expect to be engaged in developing projects during the next year, with planned additions expecting to meet demand by 2016.

About the Survey
For a copy of the latest Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey and Index Research Project, please visit www.allenmatkins.com or www.uclaforecast.com.

The Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey and Index Research Project polled a panel of California real estate professionals in the development and investment markets, on various aspects of the commercial real estate market.  The survey is designed to capture incipient activity by commercial real estate developers.  To achieve this goal, the panel looks at the markets three years in the future, and building conditions over the three-year period. The survey was initiated by Allen Matkins and the UCLA Anderson Forecast in 2006, furtherance of their interest in improving the quality of current information and forecasts of commercial real estate.

About Allen Matkins
Allen Matkins, founded in 1977, is a California-based law firm with approximately 220 attorneys in four major metropolitan areas of California:  Los Angeles, San Francisco, Orange County  and San Diego.  The firm's core specialties include real estate, real estate and commercial finance, bankruptcy and creditors' rights, construction, land use, natural resources, environmental, corporate and securities, intellectual property, joint ventures, taxation, employment and labor law, and dispute resolution and litigation in all these matters.  For more than 35 years, Allen Matkins has helped clients turn opportunity and challenge into success by providing practical advice, innovative solutions and valuable business opportunities.  When clients' challenges require experienced trial counsel, Allen Matkins has a proven track record of successful litigation before juries, judges and arbitrators. Allen Matkins is located on the Web at www.allenmatkins.com.

About UCLA Anderson Forecast
UCLA Anderson Forecast is one of the most widely watched and often-cited economic outlooks for California and the nation and was unique in predicting both the seriousness of the early-1990s downturn in California and the strength of the state's rebound since 1993. More recently, the Forecast was credited as the first major U.S. economic forecasting group to declare the recession of 2001. Visit UCLA Anderson Forecast on the Web at http://www.uclaforecast.com.

About UCLA Anderson School of Management
UCLA Anderson School of Management is among the leading business schools in the world. UCLA Anderson faculty members are globally renowned for their teaching excellence and research in advancing management thinking. Each year, UCLA Anderson provides a distinctive approach to management education to more than 1,800 students enrolled in its MBA, Fully-Employed MBA, Executive MBA, Global Executive MBA for Asia Pacific, Global Executive MBA for the Americas, Master of Financial Engineering, doctoral and executive education programs. Combining selective admissions, varied and innovative learning programs, and a worldwide network of 35,000 alumni, UCLA Anderson develops and prepares global leaders.

Follow UCLA Anderson on Twitter at http://twitter.com/UCLAAnderson, or on Facebook at http://www.facebook.com/uclaanderson

Contact Information:
UCLA Anderson Office of Media Relations, (310) 206-7707, Media.relations@anderson.ucla.edu


2013 John S. Long Outstanding Student in Real Estate Award
Tim Kawahara, Executive Director, UCLA Ziman Center for Real Estate

Alex Valente, 2013 John S. Long Award RecipientThe Ziman Center is pleased to announce that the 2013 recipient of the John S. Long Outstanding Student in Real Estate Award is Alexander J. Valente. Alex, UCLA Anderson FEMBA '13, has enthusiastically tackled every realm of the real estate program and student experience at Anderson. He has been a tireless champion of Anderson, Ziman Center programs and AREA's real estate student constituents.

Alex was the first FEMBA student to be elected as Board President of the Anderson Real Estate Association (AREA). In addition to his AREA 2012/2013 presidency, he participated in the Anderson Student Council as a FEMBA liaison, created a FEMBA student tutoring bank and was chosen as FEMBA's distinguished student commencement speaker at the June 14, 2013 UCLA Anderson FEMBA graduation ceremony. In 2013, Alex also joined the Trammell Crow Company as a Senior Associate in their Development and Investment Group. Alex's dedication and accomplishments perfectly embody the spirit of the John S. Long Outstanding Student in Real Estate Award, and we wish him continued success in his post-Anderson ventures.

About the John Long Outstanding Student in Real Estate Award
This award recognizes the UCLA Anderson MBA candidate in each class who has demonstrated and exercised the qualities required to become an influential leader in the industry. The award is not based purely on Academic performance or industry involvement, but on the student's commitment and contribution to the strength and the reputation of the UCLA Real Estate Program at Anderson and throughout the University. The recipient is recognized by the committee, as well as his or her peers, as someone whose Anderson career has been distinguished by action, commitment, and the pursuit of excellence, both in individual endeavors and on behalf of the Anderson Real Estate Program.

This prestigious award is named for John S. Long, the Founding Chairman of the Ziman Center's Board. The criteria by which the winner is selected are designed to reflect John's own leadership style.  John Long is President and CEO of Highridge Partners, Inc., which he founded in 1978. The company has been so successful that John's views are seen as a bellwether of the real estate industry to this day. Notwithstanding his tremendous success, John is known as someone who flies largely under the radar, relying upon fundamental principles, rigorous analysis, and investing discipline, and avoiding the public notoriety that seems to follow other large players in the industry.

UCLA Anderson and Peter M. Bren Launch Capstone Real Estate Course
By Christopher J. Brandt, UCLA Anderson MBA Class of 2013, Peter Bren 2012/2013 Distinguished Fellow in Entrepreneurial Real Estate; and Alexander J. Valente, UCLA Anderson FEMBA Class of 2013

Peter Bren Classroom 1Months of planning came to fruition on the evening of Tuesday, April 2nd with the launch of UCLA Anderson's capstone real estate course: Advanced Cases in Real Estate Entrepreneurship.  This advanced MBA course is the newest addition to UCLA Anderson's rapidly expanding real estate curriculum, and was made possible thanks to the Peter Bren Initiative for Real Estate Entrepreneurial Studies at UCLA.

UCLA Anderson Professor Eric Sussman and his MBA students were honored to have Peter M. Bren, Chairman and President of KBS Realty and Ziman Center Founding Board member, introduce and kick-off the first session with distinguished guest speakers Rick J. Caruso, Founder and CEO of Caruso Affiliated, and Paul J. Kurzawa, Caruso's COO.

Mr. Caruso shared his personal story of real estate entrepreneurship, from sale-leasebacks of rental car parking lots in the early days, to some of the most high-profile retail, mixed-use, and hospitality projects in the country today.  Paul Kurzawa presented a summary of Caruso Affiliated's holdings and an overview of their value-proposition.  Paul noted that Caruso Affiliated places a large emphasis on "time" - as in conserving and valuing time for all guests - by offering a one-stop shopping experience with full amenities and concierge services.

Caruso_Bren Real Estate Entrepreneurship 2013Both Mr. Caruso and Mr. Kurzawa answered questions from the students regarding their corporate strategy.  Marisa Levi, UCLA Anderson MBA '13, asked Rick what he paid the most attention to as his company continues to expand and his time and energy become more spread out.  Rick answered that he continues to stay very involved with issues pertaining to entitlements, financing, and leasing.  Rick also added that he loves staying connected to the "vision-side" of each development.  The Friday immediately following the class, Mr. Caruso and Mr. Kurzawa arranged a behind-the-scenes guided tour of their Americana at Brand project in Glendale.

Professor Sussman and his UCLA Anderson MBA students are energized by the quality of the Advanced Cases in Real Estate Entrepreneurship course syllabus, and eager to learn more from top real estate industry entrepreneurs over the coming months.


KBS' Peter M. Bren Will Address UCLA Anderson 2013 EMBA Graduating Class

Peter M. BrenLOS ANGELES (April 10, 2013) - UCLA Anderson School of Management announced that Peter M. Bren, Chairman and President of KBS Realty Advisors and its affiliate KBS Capital Advisors, will deliver the commencement address to this year's EMBA graduates. The ceremony will take place on July 27, 2013, at 3:00 pm in Royce Hall.

Mr. Bren has been involved exclusively in real estate development, management, acquisition, disposition and financing for more than 40 years. In his current position, he oversees all KBS operations, including the acquisition and management of individual investments and portfolios of income-producing real estate assets. He directs all facets of the company's business activities, maintains responsibility for investor relationships, and serves as a member of the KBS Investment Committee, which evaluates and authorizes new investment opportunities for the firm. KBS was recently ranked the largest office investor in the nation by Commercial Property Executive, and the fifth largest office owner globally by National Real Estate Investor. KBS, with transactional volume of approximately $30 billion, operates numerous institutional and sovereign wealth funds as well as five non-traded REITs.

Mr. Bren is president of KBS REIT, KBS REIT II and KBS REIT III - all public, non-listed real estate investment trusts. Additionally, he is involved with the management of two additional REITs - KBS Strategic Opportunity REIT, targeting opportunistic investments, and KBS Legacy Partners Apartment REIT, which focuses on the multifamily sector.

Mr. Bren previously served as the president of The Bren Company, was a former regional partner of Lincoln Property Company and was president of Lincoln Property Company, Europe. He is a member of the UCLA Anderson Board of Visitors and a founding member of The Richard S. Ziman Center for Real Estate at the UCLA Anderson School of Management, where he has also created and funded The Peter M. Bren Real Estate Entrepreneurship Studies Initiative. Additionally, Mr. Bren is a member of the Real Estate Roundtable, Washington, DC, which addresses key national policy issues affecting real estate and the overall economy.

"As one of the icons of the real estate industry, Peter demonstrates his entrepreneurial flair and accomplishments every day," said Judy Olian, Dean and John E. Anderson Chair of UCLA Anderson School of Management.  "He has also been a creative force in driving real estate curricula here at Anderson, as a member of our Board of Visitors, a benefactor, and a mentor to many of our students."


UCLA Anderson Announces 2013-2014 AMR Program

Since 1967, UCLA Anderson's Applied Management Research (AMR) Program has partnered MBA student teams with executives from more than 3,000 organizations around the world. These teams deliver strategic solutions to companies through an experiential learning process with the quality of professional consultants. Various clients have included Fortune 500 companies, nonprofits, microfinance institutions, and start-up companies located in our Southern California backyard or as far away as Santiago or Prague.

AMR serves as the capstone course for Anderson's second-year MBA students. Each year, 75 teams of five students spend 20 weeks completing an in-depth strategic study in partnership with an organization's management. Each team works closely with a faculty advisor who coaches and guides the students in their work with the organization. The final product is a written and oral strategic implementation recommendation. UCLA Anderson's AMR teams have helped organizations prepare a comprehensive business plan, explore new business opportunities, launch new products, explore new markets for existing products, develop pricing strategies, improve managerial effectiveness, create effective marketing campaigns, and much more, including:

  • Risk assessment
  • Operations analysis
  • Financial modeling
  • Strategic human resource planning
  • Valuation strategy and structure
  • New product development
  • New market entry strategy
  • Distribution channel analysis

UCLA Anderson faculty and students take pride in this important partnership with the business community and invite you to take a closer look at the extraordinary benefits available to your organization through UCLA Anderson's 2013-2014 AMR Program. For more information or to apply, click here or download the flyer (PDF).


UCLA Ziman Center and UCLA Anderson Annual 2013 Real Estate Industry Night
By Alexander J. Valente, UCLA Anderson FEMBA Class of 2013

AREA Industry Night 2013_CovelUCLA Anderson Real Estate Association's (AREA) annual Industry Night was held on the evening of February 27th, 2013, at the Grand Horizon Ballroom in Covel Commons on UCLA's campus. This year's event marks the most successful and well-attended Industry Night for AREA.  Nearly, 100 company representatives were in attendance to network and potentially hire students from the various programs at UCLA Anderson (full-time MBA, FEMBA and EMBA) as well as the UCLA Law School.
 
AREA Industry Night 2013_RatkovichSpecial guest, Wayne Ratkovich, President and CEO of The Ratkovich Company, a Los Angeles-based real estate developer, served as the keynote speaker and shared inspiring words with the audience about his start in real estate and some of the projects that he is currently working on.  Additionally, he spoke at length about the importance of integrity and fighting for one's reputation to have a successful career in commercial real estate.  Wayne highlighted the amazing tools available to today's MBA graduates in terms of financial modeling, but he cautioned that successful developers must also rely on their instincts and not simply look backwards to see what has been done, but look forward to see what can be done.

AREA Industry Night 2013_Ratkovich-DZ-NVAREA sincerely thanks Wayne Ratkovich for his generosity, and all of the UCLA Anderson students, alumni, UCLA Ziman Center for Real Estate staff, and companies that sponsored and participated in Industry Night. The event was a tremendous success, and the AREA student organization is excited about the achievements and growth of the UCLA real estate program.


Team Victory for UCLA at the 2013 UNC Real Estate Development Challenge
By Elizabeth E. Jensen, UCLA Anderson MBA Class of 2014

UCLA UNC 2013 RE ChallengeOn February 14-15, four first-year MBA students represented the UCLA Ziman Center for Real Estate and the UCLA Anderson School of Management at the 2013 UNC Real Estate Challenge case competition in Chapel Hill, North Carolina. UCLA Anderson students Elizabeth Jensen, Michael Machado, Jonathan Paul, and Daniel Nagel brought home 3rd place in a tough competition with 15 of the top-20 business schools around world, including UNC Kenan Flagler, Columbia, Tuck, USC, Cornell, LBS, Vanderbilt, Kellogg, Booth, UT McCombs and Duke.

Student teams were given one week to create and present an acquisition and development plan for a 130+ Acre site in the East-End Neighborhood of Houston along the Buffalo Bayou waterfront. The UCLA team's proposal consisted of purchasing and developing the property in two phases. The first stage of the development focused on walkable urbanism by creating a mixed-use environment consisting of market-rate and affordable multi-family, new retail including a grocery anchored shopping center and YMCA. The second phase of the development focused on Commercial Office space, as well as building a park along the water with an Amphitheater to provide a destination space in the urban community.


Pircher, Nichols & Meeks 2013 Real Estate Transactions Competition
By Evan P. Grant, UCLA Law Class of 2013

RELA 2013 Case Comp -1st Place TeamStudents from the UCLA School of Law and the UCLA Anderson School of Management teamed up to complete a simulated joint venture real estate deal prepared by Phillip G. Nichols, a founder of Pircher, Nichols & Meeks. Each team answered numerous questions posed by a hypothetical general counsel and investment partner, and worked through both legal and business issues to prepare a final professional memorandum. After working through the fact pattern, the teams submitted their responses for review by Nichols and Kevork Zoryan, Managing Director at Morgan Stanley.

On February 8th, Nichols and Zoryan presented a model answer to students and announced the winners of first, second, and third prize based on the most comprehensive and correct answers to the questions presented.  During the presentation, Nichols and Zoryan shared their knowledge of the field and provided insights applicable to the hypothetical deal and beyond.  

RELA 2013 Case Comp -2nd Place TeamThe Pircher, Nichols & Meeks Real Estate Transactions Competition was organized by the UCLA Real Estate Law Association (RELA) and co-sponsored by the UCLA Ziman Center for Real Estate and the Lowell Milken Institute for Business Law and Policy at UCLA School of Law. The competition provided an opportunity for law and business students to gain valuable experience working together. The students were also exposed to the complex nature of joint venture transactions and the many issues that must be addressed either as an attorney or businessperson when evaluating such a deal.

First Place - Team 7:
Daniel Nagel, UCLA Anderson MBA, 2014
Nathan Davis, UCLA Law, 2013
Sarot Srisitinam, UCLA Anderson MBA, 2014

Second Place - Team 4:
Tim Najera, UCLA Law, JD/MBA, 2013
Alex Valente, UCLA Anderson, FEMBA, 2013
Amir Sadr, UCLA Law, 2014
Aaron Eshaghian, UCLA Law, 2013

Third Place - Team 10:
Ross Giglio, UCLA Anderson MBA, 2014
Josh Zierton, UCLA Anderson MBA, 2014
Blake Lawless, UCLA Law, 2014