Summary
Mr. Baker, CEO of NRDC, (the company who showed such bargain hunting skills when they paid top dollar for the now defunct Linen'n Things and the rapidly declining Lord & TTaylor) plans to start a new REIT.
Does anyone think he can really do a better job of buying distressed shopping centers than the pros like The Weingarten Co. or DDR?
Analysis
While Mr. Baker should be applauded for hiring Stuart Tanz, the former CEO of Pan Pacific Retail Properties (whose major claim to fame was convincing Kimco to pay top dollar at the height of the feeding frenzy for Pan Pacific) I seriously doubt that this will make them competitive to the real pros who are already scouting each of the troubled shopping center owners and know exactly how much each of their properties are worth.
It seems to me that this is simply another indication of the arrogance and desperation of many of the "financial genius' " who think they can outsmart the industry pros, most of which have spent their entire lives evaluating shopping center values. I predict that the only centers Mr. Baker and his like will obtain are the ones the pros have determined are either overpriced or have no future due to competition from stronger nearby centers.
It is my strong opinion that I would trust the judgement of the successful REIT owners to know which of the distressed shopping center properties to buy long before I would trust the acumen of Messrs. Baker and Tanz.
Kenneth Leonard consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
