Mack of Area Property Partners speaker at LIREG meeting

Richard Mack, North American chief executive of Area Property Partners, told a meeting of the Long Island Real Estate Group New Generation that his company considers multifamily housing in metropolitan areas other than New York good investments. Speaking at an Oct. 25 breakfast meeting attended by about 50 group members at the Cold Spring Country Club, Mack said that people need places to live and multifamily buildings make sense as the cost of home ownership becomes unaffordable. He said baby boomers and echo boomers would be coming into the rental market in high volumes. Area, he noted, has interests in multifamily housing in Texas, South Florida and Arizona. Mack said Area is focused on acquiring distressed assets, but noted that the difficulty in obtaining these assets at a true discount has resulted in very few deals thus far. He said by the time one weighs the risks of the foreclosure process, bankruptcy, time and inherent costs, the prices that these properties and notes are commanding do not necessarily make sense in the end, he added. Nonetheless, he said Area would continue to seek the right distressed opportunities. Mack said new development remains a component of Area's business, but the company has been moving in a more institutional, less entrepreneurial direction due to availability of less risky opportunities and the difficulties of the development process. He cited several successes, including the Arches on Long Island, an outlet center jointly owned with Blumenfeld Development Group and Tanger Outlet Centers. He noted that Blumenfeld and Area had been competing for the former AIL site in Deer Park but ended up partnering to creating a one of a kind development in one of the most difficult regions to get such things accomplished. Speaking to the young people in his audience - members of the New Gen group are 35 or younger - he recommended they seek jobs that will expand "your knowledge and experience at least as much as your bank account." He also urged the young people to trust their intuition He noted that AREA became involved in the Delano property in Florida's South Beach because he used to visit there in his early 20's. At the time South Beach was run down and nothing like it is today. He said that while his partners had no knowledge or understanding of the market, he knew first hand that South Beach offered great growth potential. Shown (from left) are: Allison Brennan of Einbinder & Co.; A.J. Johnston of King Kullen Grocery Co.; Sean Cronin of Cronin, Cronin & Harris; Scott Burfus of Newmark Knight-Frank; Mack; Scott Burman of Engel Burman Group; Bram Weber of Weber Law Group; Lee Passavia of Domus Group; and Mark Brennan of Blumenfeld Develoment Group.