Changes are under way at Irvine-based Sperry Van Ness, one of the larger commercial real estate investment brokerages in the country.
David Frosh, the company’s president since April 2001, resigned earlier this month, citing differences with the company’s founders over the direction of the company.
No replacement for Frosh has been named. Company cofounders Mark Van Ness and Rand Sperry and the firm’s senior management team will continue to lead the company through the transition.
Frosh said he plans to remain with the company as long as necessary to ensure a smooth transition.
Under Frosh, Sperry Van Ness saw business grow six times its size in 2001, Sperry said. Last year the firm did about $10 billion in deals, with roughly 800 brokers in 36 states.
Frosh is a former president for Fountain Valley-based software company Cam Commerce Solutions Inc., and also was an executive with Automatic Data Processing and Optima Retail Systems.
He brought a technology focus to Sperry Van Ness. He helped introduce software that the company believes does the best job in marketing property listings to brokers.
Frosh hasn’t announced a new job yet. One position that seems unlikely: Working at a tenant-in-common company.
A recent white paper he authored on the growing investment method,where wealthy investors pool their money together for buys,suggests that the industry could be ready for a shakeout.
The “risks involved with investments like (tenant-in-commons) are far more dangerous than most investors realize,” Frosh said in the report.
These types of investments have increased by more than 700% in the past four years.
Investors should “not consider this type of investment to be low risk,” Frosh said. “A ‘no-headache or passive investment’ does not equal lower risk. It could actually be higher risk and much less liquid than you ever imagined.”
Heslin’s Expansion Plan
Newport Beach-based Heslin Holdings Inc., a commercial real estate acquisition and development company, is looking to double its properties in the next year, and expand beyond Southern California.
Heslin Holdings has invested nearly $100 million in Southern California so far, primarily shopping centers. It was formed in 2003.
The company is looking to make retail buys in some new markets, including Central and Northern California, Arizona, Nevada, Idaho and New Mexico, according to President Matthew Heslin.
The firm plans to do $100 million in buys in 2007, Heslin said.
To help manage the growth, the company just brought on Casey McKeon as its director of acquisitions. McKeon is set to oversee all retail acquisitions and development opportunities in the new areas.
McKeon previously was director of development at Aliso Viejo-based Southland Development Inc., where he oversaw retail development and handled acquisitions, entitlements, permitting and construction management.
Heslin Holdings recently bought two Albertsons buildings in Orange County,one on Katella Avenue in Stanton and the other on Orangethorpe Avenue in Fullerton,as part of a $68 million buy with Retail Holdings LLC of San Diego. Heslin Holdings since has leased those two properties to Kroger Co.’s Food 4 Less.
Cushman Exec Promotion
Joe Vargas, senior managing director for the OC office of Cushman & Wakefield Inc., recently was promoted to executive managing director/area manager for Southern California.
In addition to OC operations, he’ll also be responsible for Los Angeles, San Diego and the Inland Empire for Los Angeles-based Cushman & Wakefield, a commercial real estate services company.
One of Vargas’ first priorities: Work with management and brokers on growing the industrial service group, focusing on possible deals in Southern California, according to the company.
Vargas has been a branch manager in Irvine for the past seven years. He’s played a big part in a number of acquisitions for Cushman & Wakefield, including Matlow-Kennedy in Long Beach and San Diego Corporate Real Estate Advisors. He also played a big role in the company’s combination with Cushman Realty Corp.
Vargas also is a two-time water polo U.S. Olympian. He was a silver medalist in the 1984 Games, losing the gold medal to Yugoslavia.
Wholesale Lender Sold
Mortgage lender Diablo Funding Group of San Ramon acquired the OC wholesale division of Wausau Mortgage Corp., also known as Broad Street Mortgage Co.
The OC group has funded more than $25 million in loans monthly and will be known as Bay Bancorp. The branch, on North Tustin Avenue in Orange, is managed by Pamela Sullivan, who leads a staff of five account executives.
Diablo’s Southern California operations should reach about $100 million in monthly loans following the latest acquisition, the company said.