In the current climate, Hollander tells GlobeSt.com, "adevelopment deal typically is losing value if it isn't being dealtwith, so whether it's on the principal side or the lender's side,there's a lot of help needed and it's happening right now." He sayshe's "already working on a number of these deals, and I expect 2010will bring many more. As foreclosures get through the process, morelenders begin to get a handle on what the value of their assetreally is and become more willing to act on it."

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A 20-year commercial real estate veteran, Hollander announcedthe launch of DHA last week. Among other things, it's focused onstrategic advisory, fee development, fractured condominiumworkouts, market and financial analyses and real estateinvestment.

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Before forming DHA, Hollander spent six years as senior managingdirector of the Clarett Group, where he acquired or developedresidential, commercial and mixed-use properties totaling 2.5million square feet and valued at more than $2 billion. He alsohelped the company expand its investment platform bothgeographically—branching out from the New York metro area toCalifornia and Washington, DC—and strategically, from residentialto commercial office properties. Hollander also raised significantamounts of debt and equity capital for the company's projects andjoint venture relationships.

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With that kind of track record, "I could've joined another firm"after leaving Clarett, Hollander says. "But when I looked at whatwas going on in the marketplace, I thought I could add much morevalue as a principal."

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A great deal of DHA's client base to date has been lenders, andHollander says they're "divided pretty evenly" between those thatwant to bring their own capital to bear in dealing with theprojects and "those that want to rescue capital from the outside."Many lenders, he says, "are going through that debate internally,and that's why 2010 will be the year that many of those decisionswill get made and the projects will get recapitalized."

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Whatever side of the divide they're on, Hollander says client'sexit strategies are all pretty similar: "to recoup as much of theirproceeds as they can, as quickly as possible. On a brokendevelopment deal, some lenders will feel that executing the projecton their own, with their own capital, will get them a higher levelof proceeds even if it exposes them to more risk. Some of them aredeciding that those risks aren't worth it and are willing to takemore of a discount in order to bring other people's money. Both ofthose things are happening; this year we'll see which is theprevailing trend."

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Hollander predicts that the menu of development deals willbroaden from the busted condo deals that predominate at the moment."As loans begin to come due, and there's a need to recapitalizeprojects, there will be much more varied product type," hesays.

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He also sees his own practice evolving along with the marketthis year and next. "I'm extremely well set up right now to dealwith the development issues that are most prevalent in themarketplace, just because of my background," Hollander says. As theyear goes on into 2011," there will be more assets coming to marketthat don't require development skills but are more of a pureinvestment play. I certainly am planning to expand the firm andshift its focus over that time period as those assets begin to cometo market. But we have to see that happen first."

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.