Speaker 1: Broadcasting live to New York, Bloomberg eleven, Rio to Washington,
Speaker 1: d C, Bloomberg to Boston, Bloomberg twelve, Undige to San Francisco,
Speaker 1: Bloomberg nine six to the Country Series Exam General one
Speaker 1: nine Team, and around the globe the Bloomberg Radio Plus
Speaker 1: athen Bloomberg dot com. This is taking Stock. I'm Kathleen
Speaker 1: Hayes along with pim Fox, continuing our very special live
Speaker 1: broadcast today from the midtown Manhattan offices of Eisener Amper,
Speaker 1: one of the leading tax and advisory companies in the city.
Speaker 1: And now we're gonna be talking, in fact to one
Speaker 1: of the most prominent women in the New York City
Speaker 1: real estate industry. She's become one of New York's most
Speaker 1: active owners, having accumulated a substantial portfolio PIM of commercial
Speaker 1: real estate holdings valued in excess of one billion dollars.
Speaker 1: How was the number of one, Leslie Himmel, managing partner
Speaker 1: Himmel and maron golf properties. But right now let's go
Speaker 1: to Charlie Parks Bird Business Flash and I thank you
Speaker 1: very much pim Fox, and thank you Kathleen Hayes. It
Speaker 1: is a down day on Wall Street twenty nine minutes
Speaker 1: to go ahead of that closing bell on this Monday.
Speaker 1: Final trading week for the month of September, SMP five
Speaker 1: hundred index now down fifteen. That's a decline of seven
Speaker 1: tenths of one percent. Banks financials declining today. Deutsche Bank
Speaker 1: is down six point nine percent the down down one
Speaker 1: hundred thirty four points off of session lows, but down
Speaker 1: seven tenths of one percent. Nas Stank is down eight
Speaker 1: tenths of one percent. A federal appeals court has ruled
Speaker 1: that American Express can provide can prohibit merchants from steering
Speaker 1: customers to credit cards with lower transaction fees. That case
Speaker 1: involves about fifty billion dollars of merchant fees annually. American
Speaker 1: Express down today by four tenths of one percent. Deutsche
Speaker 1: Bank shares falling to a record low amid concerns the
Speaker 1: German government will not stop a step in to back
Speaker 1: the lender. Deutsche Bank down now by six point nine percent.
Speaker 1: Oil producing nations have been considering limiting an output to
Speaker 1: counter a global glut that has made cut crewde prices
Speaker 1: by more than half from their peak. Saudi Arabia and
Speaker 1: other OPEC members are meeting in Algeria this week and
Speaker 1: may consider freezing production in an effort to shore up prices.
Speaker 1: Crewde advancing today up two point six percent. West Texas
Speaker 1: Intermediate of a dollar eighteen of barrel to forty five
Speaker 1: dollars and sixty five cents Gold up to climbing two
Speaker 1: tents of one percent to thirty nine and at three
Speaker 1: thirty two on Wall Street. Now, let's take a look
Speaker 1: at other news from around the world on Bloomberg Radio.
Speaker 1: Thank you, Charlie from the Bloomberg News Room. I'm Jill Schneider.
Speaker 1: This news update is brought to you by the Jeep
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Speaker 1: continues to raise the bar with its luxurious interior and
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Speaker 1: Jeep dealer today. Donald Trump and Hillary Clinton will face
Speaker 1: off in the first of three debates tonight, and a
Speaker 1: new Bloomberg Politics national poll finds them any dead heat.
Speaker 1: But the candidates won't be the only ones under scrutiny
Speaker 1: this evening. Bloomberg Washington Bureau Chief Megan Murphy says the
Speaker 1: moderator will also be watched closely. Lester holt role as
Speaker 1: a moderate and particular as a fact checker has come
Speaker 1: really to the forefront, particularly in the wake of the
Speaker 1: Commander in Chief appearance they both had on The Trepid
Speaker 1: in New York few weeks earlier, where Matt Lauer, who
Speaker 1: was hosting that form, was accused of not sufficiently coming
Speaker 1: back at Donald Trump on a few of the statements.
Speaker 1: In particular, Donald Trump frequently says that he was against
Speaker 1: the Iraq war. Matt Lower didn't challenge that, and he
Speaker 1: attracts a lot of criticism. So I expect Luster holl
Speaker 1: It to be a forceful presence in this debate, particularly
Speaker 1: on fact checking. And you can join us tonight for
Speaker 1: live coverage and analysis of the presidential debate beginning at
Speaker 1: seven pm Wall Street Time on Bloomberg Radio and eight
Speaker 1: thirty pm on Bloomberg Television. The family of Arnold Palmer
Speaker 1: is waiting until after the Ryder Cup this week for
Speaker 1: a public farewell. A family spokesperson says the saying Palmer
Speaker 1: would want is for a golf schedule to be interrupted.
Speaker 1: He died last night at the age of eight seven.
Speaker 1: The government star witness in the George Washington Bridge case
Speaker 1: was back on the witness stand today, telling jurors it
Speaker 1: was his idea to close access lanes in Former Port
Speaker 1: Authority official David Wildstein pleaded guilty last year to orchestrating
Speaker 1: the traffic jams near the bridge. Global News twenty four
Speaker 1: hours a day, powered by more than journalists and analysts
Speaker 1: in more than one twenty countries. I'm Jill Schneider. This
Speaker 1: is Bloomberg, Charlie, and we thank you. And we're brought
Speaker 1: to you by National Realty Managers of New York City
Speaker 1: cash Flow real Estate, providing you twelve percent annualized returns
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Speaker 1: a dot net recapping SMP down fifteen, a drop of
Speaker 1: seven tenths of one percent. I'm Charlie Pellock. That's a
Speaker 1: Bloomberg business flash. You're listening to Taking Stock with Kathleen
Speaker 1: and Pim Fox on Bloomberg Radio. This is a very
Speaker 1: special addition of taking Stock. Today, we're coming to you
Speaker 1: from the offices of accounting and advisory firm Eisner Amper
Speaker 1: as they prepare for their annual real estate Private Equity
Speaker 1: Summit this Wednesday. Down appear sixty and there's going to
Speaker 1: be hundreds of private equity investors, real estate developers and
Speaker 1: more talking about the real estate investment environment. So how
Speaker 1: perfect that we have with us today one of the
Speaker 1: most prominent women in New York City's real estate industry.
Speaker 1: Leslie Himmel, managing partner, founder at Himmel Amerngolf Properties. Welcome.
Speaker 1: Let's say, it's great to meet you. Thank you for
Speaker 1: having me. So tell us a bit about your company,
Speaker 1: what part of the real estate industry you specifically fit into.
Speaker 1: Stephen Marengolf and myself formed Himmel and Marengolf Properties about
Speaker 1: thirty two years ago, and through the past three decades
Speaker 1: have accumulated a privately held portfolio of secondary office buildings.
Speaker 1: Were known for buying an emerging neighborhoods like Times Square
Speaker 1: before before it became popular, Park Avenue South Back actually
Speaker 1: in nineteen seventy nine, Uh down on no Ho soho.
Speaker 1: Everything now has a name. We purchased something out in
Speaker 1: Long Island City in six So we've been known for
Speaker 1: buying properties emerging neighborhoods, renovating, repositioning and retending and then
Speaker 1: holding them for the long term. We have continued in
Speaker 1: this market we have a few billion dollars worth of
Speaker 1: secondary office buildings. We are continuing to spend a lot
Speaker 1: of time on renovating our properties, financing as much as
Speaker 1: we can in the lowest interest rate environment that we've
Speaker 1: ever seen, and getting ready for what we think is
Speaker 1: going to be a change of a cycle. We've been
Speaker 1: delighted that sum If I have had a fantastic partnership.
Speaker 1: Very unusual two individuals have a masked portfolio and stayed
Speaker 1: partners for so long. UM. Steve Maradas probably my my
Speaker 1: best friend and challenges me every day, is an engineer
Speaker 1: and training. We have our own management and leasing company
Speaker 1: that helps us keep those buildings full. The effort to
Speaker 1: put together this whole portfolio, as you mentioned more than
Speaker 1: thirty years. What would you do now if you were
Speaker 1: just getting into the business, where would you be looking? Well?
Speaker 1: I wake up every learning feeling like I am just
Speaker 1: getting back into the business, as I wake up saying
Speaker 1: what can I do today to increase my portfolio? UM,
Speaker 1: my son's over at Jamestown Properties. I guess he's just
Speaker 1: starting in the business. You can't really find properties as
Speaker 1: much off market like we used to. UM, but I
Speaker 1: think you're asking a really good question, because Steve Maronoff
Speaker 1: and I have been asking how do we reposition ourselves
Speaker 1: this year after building a war chest of a few
Speaker 1: hundred million dollars of cash to go and buy as
Speaker 1: the cycle starts to change, and where will those opportunities exist?
Speaker 1: And I'll tell you where we think it's going to
Speaker 1: happen is the last few years we've had a rising
Speaker 1: tide and an a rising tide. The operator is almost
Speaker 1: like a janitor or a custodian, and it's they're important.
Speaker 1: But asset values keep going up as interest rates change,
Speaker 1: and I think the twenty million square feet of property
Speaker 1: gets added to the commercial stock in New York, we
Speaker 1: believe that they'll be a little bit of a tide
Speaker 1: going down. And that's when the operator becomes so important
Speaker 1: than we become the captain of the ship and very
Speaker 1: very important. So I would keep going at the same
Speaker 1: thing in a slightly different energy level. So changes SoC
Speaker 1: you're talking about the interest rate credit cycle, I imagine
Speaker 1: it isn't aside Eric Rosingrand, president of Boston FED, who
Speaker 1: I had a chance to speak to a couple of
Speaker 1: times out of the Jackson Whole FED conference in August
Speaker 1: has given a couple of speeches lately his worry about
Speaker 1: a commercial real estate bubble. Do you see anything like that?
Speaker 1: And are you then kind of girding for this change
Speaker 1: from pools of liquidity everywhere, very low rates around the world.
Speaker 1: Is something less generous? That's a great question, and the
Speaker 1: answer to that is yes. Trees do not grow to heaven.
Speaker 1: Interest rates don't stay at zero forever. Uh. I saw
Speaker 1: a chart last week at M and T s board
Speaker 1: meeting where I'm on their board, where we had a
Speaker 1: chart of all the negative yield bonds that are being
Speaker 1: held in Europe. Um. We know this will change. And
Speaker 1: what my concern is in real estate when you have
Speaker 1: a zero interest rate environment, we just we just borrowed
Speaker 1: for at fourteen sixty Broadway at three point six percent
Speaker 1: interest only ten years. It's record lows. We love it,
Speaker 1: but that might be causing an asset bubble, which, for
Speaker 1: operators like ourselves, will create an opportunity to buy again.
Speaker 1: That opportunity assumes that you've got the cash or the
Speaker 1: wherewithal in order to execute. Are most people prepared for
Speaker 1: that or is that an outlier? Do you find yourself
Speaker 1: having to explain why you're holding money on the side.
Speaker 1: I think Warren Buffett was a market timer and would
Speaker 1: hold cash when he really thought it was president to
Speaker 1: do so. Oh, and we're similar. A lot of our
Speaker 1: competitors will finance. Maybe you don't want to have as
Speaker 1: much cash on the sidelines. That's been our philosophy. We've
Speaker 1: been frozen in the eighth inning for quite a while,
Speaker 1: and uh, perhaps we have some extra innings to go.
Speaker 1: But we're ready to pounce when that market changes. Well pounds, indeed,
Speaker 1: we're we're looking forward to say how it goes it
Speaker 1: Pouncings work pretty well for you so far. Great, Thank
Speaker 1: you very much. Leslie Himmel is a managing partner and
Speaker 1: the founder of Himmel and Maringough Properties based in New
Speaker 1: York City. Talking about the future of New York City
Speaker 1: real estate. Thank you very much for being in anticipation
Speaker 1: of the fourth annual Yes Eisner and for Real Estate
Speaker 1: Private Equity Summit taking place at Pier sixty on Wednesday.
Speaker 1: This is Bloomberg. Thank you a changing credocycle. If had
Speaker 1: a preserve that's ready to raise interest rates. Very important
Speaker 1: for the real estate market is our continue our special
Speaker 1: live broadcast here at Eisner Emper. We're gonna look at
Speaker 1: the bond market with Dan Fuss of BLOOMA. Blumas sales
Speaker 1: on Bloomberg Radio