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Speaker 1: Broadcasting live to New York, Bloomberg eleven, Rio to Washington,

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Speaker 1: d C, Bloomberg to Boston, Bloomberg twelve, Undige to San Francisco,

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Speaker 1: Bloomberg nine six to the Country Series Exam General one

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Speaker 1: nine Team, and around the globe the Bloomberg Radio Plus

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Speaker 1: athen Bloomberg dot com. This is taking Stock. I'm Kathleen

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Speaker 1: Hayes along with pim Fox, continuing our very special live

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Speaker 1: broadcast today from the midtown Manhattan offices of Eisener Amper,

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Speaker 1: one of the leading tax and advisory companies in the city.

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Speaker 1: And now we're gonna be talking, in fact to one

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Speaker 1: of the most prominent women in the New York City

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Speaker 1: real estate industry. She's become one of New York's most

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Speaker 1: active owners, having accumulated a substantial portfolio PIM of commercial

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Speaker 1: real estate holdings valued in excess of one billion dollars.

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Speaker 1: How was the number of one, Leslie Himmel, managing partner

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Speaker 1: Himmel and maron golf properties. But right now let's go

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Speaker 1: to Charlie Parks Bird Business Flash and I thank you

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Speaker 1: very much pim Fox, and thank you Kathleen Hayes. It

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Speaker 1: is a down day on Wall Street twenty nine minutes

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Speaker 1: to go ahead of that closing bell on this Monday.

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Speaker 1: Final trading week for the month of September, SMP five

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Speaker 1: hundred index now down fifteen. That's a decline of seven

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Speaker 1: tenths of one percent. Banks financials declining today. Deutsche Bank

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Speaker 1: is down six point nine percent the down down one

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Speaker 1: hundred thirty four points off of session lows, but down

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Speaker 1: seven tenths of one percent. Nas Stank is down eight

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Speaker 1: tenths of one percent. A federal appeals court has ruled

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Speaker 1: that American Express can provide can prohibit merchants from steering

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Speaker 1: customers to credit cards with lower transaction fees. That case

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Speaker 1: involves about fifty billion dollars of merchant fees annually. American

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Speaker 1: Express down today by four tenths of one percent. Deutsche

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Speaker 1: Bank shares falling to a record low amid concerns the

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Speaker 1: German government will not stop a step in to back

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Speaker 1: the lender. Deutsche Bank down now by six point nine percent.

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Speaker 1: Oil producing nations have been considering limiting an output to

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Speaker 1: counter a global glut that has made cut crewde prices

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Speaker 1: by more than half from their peak. Saudi Arabia and

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Speaker 1: other OPEC members are meeting in Algeria this week and

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Speaker 1: may consider freezing production in an effort to shore up prices.

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Speaker 1: Crewde advancing today up two point six percent. West Texas

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Speaker 1: Intermediate of a dollar eighteen of barrel to forty five

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Speaker 1: dollars and sixty five cents Gold up to climbing two

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Speaker 1: tents of one percent to thirty nine and at three

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Speaker 1: thirty two on Wall Street. Now, let's take a look

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Speaker 1: at other news from around the world on Bloomberg Radio.

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Speaker 1: Thank you, Charlie from the Bloomberg News Room. I'm Jill Schneider.

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Speaker 1: This news update is brought to you by the Jeep

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Speaker 1: Jeep dealer today. Donald Trump and Hillary Clinton will face

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Speaker 1: off in the first of three debates tonight, and a

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Speaker 1: new Bloomberg Politics national poll finds them any dead heat.

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Speaker 1: But the candidates won't be the only ones under scrutiny

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Speaker 1: this evening. Bloomberg Washington Bureau Chief Megan Murphy says the

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Speaker 1: moderator will also be watched closely. Lester holt role as

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Speaker 1: a moderate and particular as a fact checker has come

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Speaker 1: really to the forefront, particularly in the wake of the

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Speaker 1: Commander in Chief appearance they both had on The Trepid

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Speaker 1: in New York few weeks earlier, where Matt Lauer, who

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Speaker 1: was hosting that form, was accused of not sufficiently coming

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Speaker 1: back at Donald Trump on a few of the statements.

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Speaker 1: In particular, Donald Trump frequently says that he was against

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Speaker 1: the Iraq war. Matt Lower didn't challenge that, and he

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Speaker 1: attracts a lot of criticism. So I expect Luster holl

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Speaker 1: It to be a forceful presence in this debate, particularly

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Speaker 1: on fact checking. And you can join us tonight for

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Speaker 1: live coverage and analysis of the presidential debate beginning at

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Speaker 1: seven pm Wall Street Time on Bloomberg Radio and eight

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Speaker 1: thirty pm on Bloomberg Television. The family of Arnold Palmer

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Speaker 1: is waiting until after the Ryder Cup this week for

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Speaker 1: a public farewell. A family spokesperson says the saying Palmer

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Speaker 1: would want is for a golf schedule to be interrupted.

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Speaker 1: He died last night at the age of eight seven.

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Speaker 1: The government star witness in the George Washington Bridge case

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Speaker 1: was back on the witness stand today, telling jurors it

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Speaker 1: was his idea to close access lanes in Former Port

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Speaker 1: Authority official David Wildstein pleaded guilty last year to orchestrating

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Speaker 1: the traffic jams near the bridge. Global News twenty four

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Speaker 1: hours a day, powered by more than journalists and analysts

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Speaker 1: in more than one twenty countries. I'm Jill Schneider. This

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Speaker 1: is Bloomberg, Charlie, and we thank you. And we're brought

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Speaker 1: to you by National Realty Managers of New York City

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Speaker 1: cash Flow real Estate, providing you twelve percent annualized returns

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Speaker 1: with immediate monthly distributions. See them at n r I

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Speaker 1: a dot net recapping SMP down fifteen, a drop of

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Speaker 1: seven tenths of one percent. I'm Charlie Pellock. That's a

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Speaker 1: Bloomberg business flash. You're listening to Taking Stock with Kathleen

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Speaker 1: and Pim Fox on Bloomberg Radio. This is a very

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Speaker 1: special addition of taking Stock. Today, we're coming to you

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Speaker 1: from the offices of accounting and advisory firm Eisner Amper

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Speaker 1: as they prepare for their annual real estate Private Equity

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Speaker 1: Summit this Wednesday. Down appear sixty and there's going to

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Speaker 1: be hundreds of private equity investors, real estate developers and

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Speaker 1: more talking about the real estate investment environment. So how

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Speaker 1: perfect that we have with us today one of the

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Speaker 1: most prominent women in New York City's real estate industry.

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Speaker 1: Leslie Himmel, managing partner, founder at Himmel Amerngolf Properties. Welcome.

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Speaker 1: Let's say, it's great to meet you. Thank you for

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Speaker 1: having me. So tell us a bit about your company,

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Speaker 1: what part of the real estate industry you specifically fit into.

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Speaker 1: Stephen Marengolf and myself formed Himmel and Marengolf Properties about

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Speaker 1: thirty two years ago, and through the past three decades

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Speaker 1: have accumulated a privately held portfolio of secondary office buildings.

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Speaker 1: Were known for buying an emerging neighborhoods like Times Square

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Speaker 1: before before it became popular, Park Avenue South Back actually

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Speaker 1: in nineteen seventy nine, Uh down on no Ho soho.

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Speaker 1: Everything now has a name. We purchased something out in

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Speaker 1: Long Island City in six So we've been known for

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Speaker 1: buying properties emerging neighborhoods, renovating, repositioning and retending and then

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Speaker 1: holding them for the long term. We have continued in

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Speaker 1: this market we have a few billion dollars worth of

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Speaker 1: secondary office buildings. We are continuing to spend a lot

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Speaker 1: of time on renovating our properties, financing as much as

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Speaker 1: we can in the lowest interest rate environment that we've

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Speaker 1: ever seen, and getting ready for what we think is

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Speaker 1: going to be a change of a cycle. We've been

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Speaker 1: delighted that sum If I have had a fantastic partnership.

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Speaker 1: Very unusual two individuals have a masked portfolio and stayed

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Speaker 1: partners for so long. UM. Steve Maradas probably my my

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Speaker 1: best friend and challenges me every day, is an engineer

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Speaker 1: and training. We have our own management and leasing company

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Speaker 1: that helps us keep those buildings full. The effort to

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Speaker 1: put together this whole portfolio, as you mentioned more than

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Speaker 1: thirty years. What would you do now if you were

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Speaker 1: just getting into the business, where would you be looking? Well?

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Speaker 1: I wake up every learning feeling like I am just

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Speaker 1: getting back into the business, as I wake up saying

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Speaker 1: what can I do today to increase my portfolio? UM,

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Speaker 1: my son's over at Jamestown Properties. I guess he's just

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Speaker 1: starting in the business. You can't really find properties as

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Speaker 1: much off market like we used to. UM, but I

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Speaker 1: think you're asking a really good question, because Steve Maronoff

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Speaker 1: and I have been asking how do we reposition ourselves

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Speaker 1: this year after building a war chest of a few

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Speaker 1: hundred million dollars of cash to go and buy as

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Speaker 1: the cycle starts to change, and where will those opportunities exist?

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Speaker 1: And I'll tell you where we think it's going to

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Speaker 1: happen is the last few years we've had a rising

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Speaker 1: tide and an a rising tide. The operator is almost

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Speaker 1: like a janitor or a custodian, and it's they're important.

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Speaker 1: But asset values keep going up as interest rates change,

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Speaker 1: and I think the twenty million square feet of property

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Speaker 1: gets added to the commercial stock in New York, we

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Speaker 1: believe that they'll be a little bit of a tide

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Speaker 1: going down. And that's when the operator becomes so important

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Speaker 1: than we become the captain of the ship and very

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Speaker 1: very important. So I would keep going at the same

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Speaker 1: thing in a slightly different energy level. So changes SoC

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Speaker 1: you're talking about the interest rate credit cycle, I imagine

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Speaker 1: it isn't aside Eric Rosingrand, president of Boston FED, who

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Speaker 1: I had a chance to speak to a couple of

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Speaker 1: times out of the Jackson Whole FED conference in August

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Speaker 1: has given a couple of speeches lately his worry about

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Speaker 1: a commercial real estate bubble. Do you see anything like that?

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Speaker 1: And are you then kind of girding for this change

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Speaker 1: from pools of liquidity everywhere, very low rates around the world.

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Speaker 1: Is something less generous? That's a great question, and the

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Speaker 1: answer to that is yes. Trees do not grow to heaven.

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Speaker 1: Interest rates don't stay at zero forever. Uh. I saw

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Speaker 1: a chart last week at M and T s board

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Speaker 1: meeting where I'm on their board, where we had a

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Speaker 1: chart of all the negative yield bonds that are being

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Speaker 1: held in Europe. Um. We know this will change. And

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Speaker 1: what my concern is in real estate when you have

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Speaker 1: a zero interest rate environment, we just we just borrowed

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Speaker 1: for at fourteen sixty Broadway at three point six percent

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Speaker 1: interest only ten years. It's record lows. We love it,

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Speaker 1: but that might be causing an asset bubble, which, for

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Speaker 1: operators like ourselves, will create an opportunity to buy again.

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Speaker 1: That opportunity assumes that you've got the cash or the

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Speaker 1: wherewithal in order to execute. Are most people prepared for

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Speaker 1: that or is that an outlier? Do you find yourself

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Speaker 1: having to explain why you're holding money on the side.

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Speaker 1: I think Warren Buffett was a market timer and would

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Speaker 1: hold cash when he really thought it was president to

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Speaker 1: do so. Oh, and we're similar. A lot of our

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Speaker 1: competitors will finance. Maybe you don't want to have as

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Speaker 1: much cash on the sidelines. That's been our philosophy. We've

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Speaker 1: been frozen in the eighth inning for quite a while,

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Speaker 1: and uh, perhaps we have some extra innings to go.

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Speaker 1: But we're ready to pounce when that market changes. Well pounds, indeed,

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Speaker 1: we're we're looking forward to say how it goes it

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Speaker 1: Pouncings work pretty well for you so far. Great, Thank

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Speaker 1: you very much. Leslie Himmel is a managing partner and

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Speaker 1: the founder of Himmel and Maringough Properties based in New

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Speaker 1: York City. Talking about the future of New York City

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Speaker 1: real estate. Thank you very much for being in anticipation

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Speaker 1: of the fourth annual Yes Eisner and for Real Estate

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Speaker 1: Private Equity Summit taking place at Pier sixty on Wednesday.

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Speaker 1: This is Bloomberg. Thank you a changing credocycle. If had

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Speaker 1: a preserve that's ready to raise interest rates. Very important

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Speaker 1: for the real estate market is our continue our special

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Speaker 1: live broadcast here at Eisner Emper. We're gonna look at

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Speaker 1: the bond market with Dan Fuss of BLOOMA. Blumas sales

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Speaker 1: on Bloomberg Radio