We (Doesn’t) Work

The big news of the week is the downward spiral of WeWork and its founder Adam Neumann. The biggest loser is SoftBank, which invested in the company based on a $47 billion valuation that looks today to have been wildly overblown. Not only that, the company burned through $2 billion in 2018 and by most estimates, they will run through what cash is on hand sometime this year. Topping off the news of the week, many of the shareholders of WeWork want to sack Neumann and strip him of his CEO role.

Aside from the financial challenges the company faces, Neumann has been exposed this week for eccentric behavior, self-dealing, and drug use. Last week the Wall Street Journal reported that Neumann took marijuana on a flight from NYC to Israel, and the plane owner ordered it to turn around.

Of course all of this makes for interesting news, but the real news will probably play out in the hundreds of office buildings where WeWork has leased large blocks of space. I am quite sure that there are thousands of financial reports and analysis being prepared that catalogue the impact of the potential demise of WeWork. According to some reports, at the end of 2018 WeWork had about $34 billion in lease obligations up from $18.2 billion a year earlier. However you want to slice it, there is a mess ahead, and let’s hope it’s not a train wreck.

Job Listings

SVN-RIG Retail Investment Sales Advisor (PASADENA, CA) Company specializing in retail investment sales based in Pasadena, CA seeks qualified real estate professionals passionate about reaching their professional and personal objectives. The SVN-RIG platform offers strong leadership, local expertise, regional and national network of professionals, effective tools, in-house mapping and demography, land use and development expertise, leasing and property management support.  

ALEXANDRIA REAL ESTATE EQUITIES Analyst (SEATTLE, WA) Analyst will be responsible for supporting the investment team in all aspects of real estate market analysis, asset underwriting, transaction due diligence, and on-going execution of ground-up development projects.  

TRUAMERICA MULTIFAMILY, LLC Acquisitions Analyst (ARLINGTON, VA) Duties include: underwriting potential multifamily acquisitions by analyzing historical financial statements and performing market research and analysis; coordinating due diligence efforts with third parties and consultants; and reviewing due diligence results and compare results to transaction underwriting.  

TRIMONT REAL ESTATE ADVISORS Asset Manager (ATLANTA, GA) Manager will be responsible for managing a portfolio of complex debt and equity investments in both ground-up developments and transitional / value-add operating properties. This is a client-facing position involving real-time assessment of risk profiles of real estate loans and equity investments, coordination and monitoring of interest billing and collection, oversight of the construction draw administration workflow and client reporting.  

EASTDIL SECURED Real Estate Vice President/Debt (SAN FRANCISCO, CA) Responsibilities include: financial underwriting, due diligence review and transaction execution; mentoring Associates, Analysts, and other subordinates in the tools and methods required to effectively procure, underwrite, and transact or otherwise execute their responsibilities; and preparing presentation materials to prospective clients.  

PORT OF PORTLAND Senior Property Manager (PORTLAND, OR) Property Manager will be responsible for property management, negotiating and administering real estate transactions, including leases and amendments and providing support for development projects related to the Port’s marine terminals, industrial parks and aviation related properties, with an emphasis on marine and industrial properties.  

AMERICAN REALTY ADVISORS Vice President Retail Asset Manager (CHICAGO, IL) Position will be responsible for assisting with the overall asset management of a portfolio of retail real estate assets, which are a part of the firm’s core and value-added separate accounts and commingled funds. Based in ARA’s Chicago office, the successful incumbent will work on assets located throughout the country.  

S2 ACQUISITIONS Director of Acquisitions (NEW YORK, NY) S2 is seeking a Director of Acquisitions to source opportunities using either a collaborative or self-created competitive advantage. A creative approach apart from traditional real estate norms is vital and will include leveraging modern-day disrupters such as charter schools, co-living, social clubs and other various dislocations in the market.  

REALTY INCOME CORP. Head of Real Estate Research (SAN DIEGO, CA) Position will be responsible for overseeing all valuation related matters in relation to pre-acquisition, disposition, and financial reporting of all properties; assist in the property related due diligence efforts for all potential acquisitions, expansions, and developments; and oversee general market research, replacement costs, reserve estimates, immediate repairs, and construction deficiencies.  

FORE PROPERTY CO. Development Director (TAMPA, FL) Director will participate in all aspects of development including site selection, due diligence exploration, financial analysis, budgeting, contract negotiation, development consultant management, site acquisition, investment package creation, coordination of the permitting process, execution of the construction documents, and general contractor management.