Fall 2009 (pdf) - Alumni - University of St. Thomas

The UST REAA had a successful year in 2009 overall, despite the current economy
and real estate market. This year’s highlights include our End of the Year Banquet,
7th Annual Golf Tournament, UST Alumni partnership, UST Real Estate Advisor
Committee participation, and social events. Even though we had lower attendance then
we hoped for at some of these events, we still had fun to network and reconnect with
each other. Earlier this month, I created a LinkedIn group for the UST REAA, click here
to join this group and to stay connected.
Additionally, please allow me to extend my gratitude to our Board of Directors and
Executive Committee who did a great job and made 2009 a blast.
As President, the 2009 year was personally rewarding, creating new industry relationships
and strengthening existing ones, as well as growing participation made donating my time
to the UST REAA well worth it. The UST REAA is in good hands for 2010; I wish Peter
Tanis, incoming President, the Board of Directors and Executive Committee the best of
luck on a productive and successful year!
Have a safe and enjoyable Holiday Season!
Ben Bastian ‘05
UST REAA President
Cushman & Wakefi eld
RE CAPFall
2009
The Official Newsletter of the St. Thomas Real Estate Alumni Association
Contents
President’s
Corner | 1
St. Thomas
Alumni in Real
Estate | 2
7th Annual
UST REAA Golf
Tournament | 3
2010 Board
of Directors | 4
Executive
Committee | 4
Faculty
Advisors | 4
2009 End of the
Year Banquet | 4
D.C. &
Vegas | 5
2009 Annual
Sponsors | 6
Commercial RE
MarketWatch | 7
News from the
UST Real Estate
Programs | 8
Tommie
Spotlight | 9
UST Real Estate
Society | 11
The Doc’s Final
Thoughts | 11
President’s Corner
BOARD OF DIRECTORS
Vice President
Pete Tanis
Treasurer
Matt Larson
Secretary
Dan Brown
EXECUTIVE COMMITTEE
Events Chair
Joe Mahoney
Website Co-Chairs
Brad Moore and Shawn Smith
Golf Tournament Co-Chairs
Grant Campbell and Mike Doyle
End of the Year Banquet Chair
Ben Bastian
Student Liaison
Chad Commers
UST REAA RE CAP | Fall 2009 | 1

St. Thomas Alumni in Real Estate
The University of St. Thomas has produced several outstanding professionals that work in the real estate
industry. Below are 202 individuals on our distribution list that went to UST for undergrad, graduate, mini-
MBA or law school. Take a look at the list and see who you know. We are always looking to expand our
distribution list, please email any additions to Ben Bastian at benjamin.bastian@cushwake.com and make
sure to join the UST REAA group on LinkedIn. Click here to view the group.
Jesse Amundson ....2008
Scott Anderson ......2003
Markus Anderson ...2006
Nick Anderson .......2007
Ben Applebaum .....2004
Peter Austin ..........1982
Aaron Barnard .......1992
Dave Barr ............. 1995
Ben Bastian ..........2005
Luigi Bernardi .......1985
Dominic
Berntson .............. 1997
Mike Bisanz ......... 2010
Alex Broderick ...... 2008
Angela Brown ........2004
Dan Brown ............2006
Will Buckley ..........2006
Tom Burton ...........1986
Kristin Bush ......... 2009
Grant Campbell .... 2006
Chuck Caturia .......1973
Andy Chana.......... 2001
John Chirhart ....... 1994
Jim Clifford ...........1977
Keith Collins .........1989
Eric Colmark .........2008
Chuck
Commerford ..........2001
Chad Commers ......2009
Bill Cosgriff ...........2008
Chris Courneya ..... 2006
Courtney Cove .......2003
Adam Cozine .........2006
Bill Crawford .........1975
David Daly ............2006
Katie Demko ........ 2008
Joe Dixon ..............2010
Andy Donahue .......2005
Mike Doyle ............2007
Gerald Driessen .....1985
Vishal Dutt ....................
Mike Dwyer ...........1977
2 | UST REAA RE CAP | Fall 2009
Stephen Eggert ..... 1982
Jon Engel ..............2007
Garrett Farmer ...... 2000
Jon Farnsworth ......2008
Ben Fazendin ........2004
John Flaherty ........1974
Mike Galvin Jr. ......2007
Jim Gearen ...........1983
Joe Gearen ............1992
Shannon Gherty .....2008
Michael Gifford .... 2009
David Glass ...........2009
Dan Gleason ..........1988
Ben Glover ............2003
Lucas Goring .........2002
Chris Grabek .........2000
Natalie Gregoire ....2006
Kelsey Gregory.......2008
Max Grinberg.........2010
Tom Hildman ....... 2005
Tom Hamilton....... 2000
Alyssa Hamilton.....2009
Tim Hassett ...........1976
Tim Haugen ......... 2003
Brandon Hedges
Chad Heer............ 1995
Jen Helm ..............2002
Erik Heltne ...........2008
Jake Hendricks ......2008
Greg Hennes ........ 1985
Bill Herber ............1975
Chris Hickok .........1987
Andrea Hilgren ......2001
Mike Honsa ...........2000
Emily Howell .........2007
Tina Hoye ..............1980
Chris Huntley ........1999
Tom Immen ...........1986
Frank Jermusek .....1998
Katie Jetland .........2007
Rory Johnson.........2001
Cory Judge ............2003
Mike Julius ...........1975
Jon Just ................2004
Matt Karl ..............1987
Katie Kieffer .........2005
Rob Kimball ..........1983
Terry Kingston .......1973
Tim Kleiman..........2009
Jessi Klein ............2006
Paul Knapp ...........1981
Michael Krediet .....2001
Brian Kruesi ..........2002
Rick Kunkel ..........1980
Dustin LaFavre ......2005
Becky Landon .......2002
Frank Lang ............2009
Tony Lang .............2007
Matt Larson...........2006
Danielle Loffl er ......2006
Steve Lysen ...........1991
Joe Mahoney .........2006
Kelsey Malecha .....2007
SaraBeth Mantia ....2004
Tim Mardell ...........1971
Mike Marinovich ....1993
Luke Maupin .........2006
Ryan Maurer ........ 1999
Rob McCready .......1990
Mike McEllistrem ...1979
Kelcey McKean .....2007
Moraghan
McKenna ..............2007
Amy Melchior ........1983
Steve Miller.......... 2006
Jeff Minea.............1983
Tommy Moe ........ 1998
Steph Molloy .........2001
Brad Moore ...........2003
Shawn Moore ........2004
Peter Mork ............1994
Dan Mossey...........2006
Matt Mullins ........ 2005
Tim Murnane .........1981
Tom Musil .............1980
Marc Nanne ......... 1986
Adam Nathe ......... 1993
Tony Navarro .........1969
Nate Nelson ..........2006
Dennis Nesser .......1965
Steve Nilsson ....... 1995
Brett Olson .......... 2005
Dave Olson ........... 2006
Chris Olson .......... 2008
Jill Olson ..............2009
William Ostlund .....1994
Kate Ostlund .........2003
Joe Owen ..............2005
Alexandra Paige
Trapper .................2009
Chelsea
Parenteau .............2007
Ron Peltier ........... 1973
Tim Peters ............1988
Brad Pfaff ............ 1987
Matt Pike ..............2007
Rick Plessner ........1973
Russ Popp ............2003
Rome Poppler .......2003
Michael Ramme ....2003
Matt Rauenhorst ....2002
Nick Reynolds .......1998
Andy Richards .......2002
Jon Riley...............1994
Derek Rizzo ...........2003
Colin Ryan ............2005
John Ryden ...........1983
Tim Rye ................2003
Mike Salmen ........ 1987
Rick Sand .............2006
Dick Schadegg ......1974
Tom Schrump ....... 2001
Skye Schwing ....... 2008
Jon Segner ........... 1997
Paul Sevenich .......1984
Matt Shapiro .........2005
Tom Shaver ...........1984
Pat Sheehan .........2007
Frank Sherwood .....1983
Clay Shultz .......... 2002
Aaron Sillanpa .......2006
Stuart Simek ........ 1992
Doug Simek ..........1995
Phil Simonet .........1980
Charlie Smoot .......2005
Jim Soderberg .......1986
Joe Springer ......... 1987
David Stalsberg .....2005
Barbara Stassart ....2007
Linsey Stender ......2002
Mike Stetz ............2003
Chris Stockness .....2002
Bob Strachota .......1975
Jase Stumph .........2006
Louis Suarez .........1997
Peter Tanis ............2006
Kelly Theis ............1985
Jack Tornquist .......1999
Herb Tousley .........2002
Herb Tousley IV .....2001
Leah Truax ............2005
Teresa Tschida .......2007
Vik Uppal ..............2006
Bryan Van Hoof .....1992
Tim Venne ............ 2008
Nate Voss ............. 2005
Peter Wehseler ......2006
Casey Weiss ..........2006
Dan Wicker .......... 1990
Jenny Wietecki ..... 2001
Adam Wilford ........2001
Justin Wing ...........2006
Jon Yanta ..............1985
Ben Yarbrough .......2009
Joe Zimmerman .....1999

Grant Campbell ‘06
Golf Tournament Co-Chair
WelshInvest
7 TH Annual
UST REAA
Golf
Tournament
On Tuesday, September 15th, over 45 business professionals
and University of St. Thomas alumni participated in the 7th
Annual St. Thomas Real Estate Alumni Golf Tournament held
at Braemar Golf Course in Edina, MN. An 18-hole scramble golf
event was followed by a short program and dinner which highlighted
on-going events and developments within the Real Estate Alumni
Association and the University of St. Thomas. The event provided
a great opportunity for attendees to reconnect with old friends and
expand their professional network by meeting fellow supporters of
the St. Thomas Real Estate Program.
In addition, through the generosity of our supporters, the University of
St. Thomas Real Estate Alumni Association was able to raise proceeds
for two memorial scholarship funds set up on the behalf of Mr. Jon
Just (’04) and Mr. Tom Hildman (’05).
Mike Doyle ‘07, Rob Lunz, Brad Moore ‘03, Doug Wageman
and Grant Campbell ’06, Ev Strand (not pictured)
Congratulations to Brad Moore, Rob Lunz, Ev Strand
(not pictured) and Doug Wageman who placed fi rst in the
golf event and thank you to all those in attendance who
helped make this year’s event truly a great experience.
Your support allows the University of St. Thomas Real
Estate Alumni Association to continue in its goal of
bringing together students, alumni, friends and partners
of the University.
Derek Engler ‘09, Erika Englebrecht ‘09,
Jill Olson ‘09, David Glass ‘09
We would like to give a special thank
you to our sponsors who helped make
this event possible:
MINNESOTA REAL ESTATE JOURNAL
BRIGGS AND MORGAN
WELSH COMPANIES
ROSEVILLE PROPERTIES
OAK GROVE CAPITAL
UST MS REAL ESTATE
FIRST NATIONAL BANK BUILDING
SHENEHON COMPANY
DOMINIUM DEVELOPMENT &
ACQUISITION
OPUS
UST REAA RE CAP | Fall 2009 | 3

2009 End of the Year
Banquet
Mike Salmen ‘87, Chris Simmons, Danny Commers and Tim Murnane ‘81
Since 2005, our End of the Year Banquet has been held
at Interlachen Country Club, and similar to years past
we had a great night. On April 29, 2009 we had our
7th annual event with approximately 65 attendees. Mike
Salmen of Transwestern moderated the panel discussion.
Panelists included Tim Murnane ’81 (Peak Partners), Danny
Commers (Roseville Properties) and Chris Simmons (Welsh
Companies). Discussions included industry trends and
recommendations for students and young professionals.
Two students from the undergraduate real estate program
were presented scholarship checks from funds the UST
REAA has helped raise money for over the years. The Tom
Hildman Memorial Scholarship recipient was Jeff Zicarelli
and the USTREAA Jon Just Memorial Scholarship recipient
was Mitch Irvin.
Ben Bastian ‘05
End of the Year Banquet Chair
Cushman & Wakefi eld
4 | UST REAA RE CAP | Fall 2009
2010 Board of Directors
PRESIDENT
Pete Tanis | The C. Chase Company
ptanis@cchaseco.com
VICE PRESIDENT
Grant Campbell | WelshInvest, LLC
gcampbell@welshco.com
TREASURER
Mike Stetz | Jones Lang LaSalle
mike.stetz@am.jll.com
SECRETARY
Alyssa Hamilton | Mardell Partners
ahamilton@mardellpartners.com
IMMEDIATE PAST PRESIDENT
Ben Bastian | Cushman & Wakefi eld
Benjamin.bastian@cushwake.com
Executive Committee
GOLF COMMITTEE CO-CHAIRS
Grant Campbell | WelshInvest, LLC
gcampbell@welshco.com
Tim Kleiman | Cushman & Wakefi eld
tkleiman@fnbbuilding.com
EVENTS CHAIR
Brett Olson | Grandbridge Real Estate Capital
bolson@gbrecap.com
END OF THE YEAR BANQUET
CO-CHAIRS
Ben Bastian | Cushman & Wakefi eld
Benjamin.bastian@cushwake.com
Kelsey Malecha | Mardell Partners
kmalecha@mardellpartners.com
NEWSLETTER CHAIR
Dan Brown | CBRE
daniel.brown@cbre.com
Kelsey Gregory | WelshInvest, LLC
kgregory@welshco.com
COMMUNICATION CHAIR
Ryan Maurer | CBBurnet Realty
ryanmaurer@hotmail.com
UST REAA WEBSITE CHAIR
Shawn Smith | WelshInvest, LLC
srsmith@welshco.com
STUDENT LIAISON
Joe Dixon
UST Real Estate Society President
jsdixon@stthomas.edu
Faculty Advisors
PROFESSOR OF REAL ESTATE
Tom Hamilton, Ph.D, CRE, FRICS
twhamilton@stthomas.edu
PROFESSOR OF REAL ESTATE
Tom Musil, DPA
tamusil@stthomas.edu
DIRECTOR, SHENEHON
CENTER FOR REAL ESTATE
AND MS IN REAL ESTATE
Herb Tousley
hwtousley1@stthomas.edu
DISTINGUISHED CHAIR
OF REAL ESTATE
George Karvel, Ph.D, CRE
gkarvel@stthomas.edu

D.C. & Vegas: Listen to young people,
voting with pocketbooks
Sheldon Adelson, Chair of the Las Vegas Sands Corp.,
is the perfect poster boy for Las Vegas’ fi nancial
meltdown. The 76-year-old who was third on Forbes’
list of the 400 Richest Americans in both 2007 &
2008 has lost $36.5 billion dollars (91.25% of his net
worth) – more than anyone else in the world has lost during
this recession. While most retailers across the country are
changing their tune, listening to their customers and providing
products and services at lower prices while marketing their
value, Adelson is staying the course.
He may have achieved success through a combination of hard
work, luck and persistence, but his stubborn insistence on
sticking with the same strategy is killing his bottom line. On
Aug. 24, 2009, TIME magazine columnist, Joel Stein, shared
his interviews with Adelson and other Vegas casino moguls: ‘he’s
(Adelson’s) not changing his strategy of using high-end dining,
giant suites and plush convention spaces to attract customers.
He does not believe that America is going to fundamentally
change its values from extravagance to thrift. “There’s no way
this world will change. There’s no way people are going to stop
doing things they want to do…,”’ he quotes Adelson.
Adelson borrowed as much as he could as fast as he could
and built, built, built. He added a micro-version of the Vegas
Strip to his successful hotel and casino in Macao, China and
also added 100% more space to the Venetian with the Palazzo
addition. This aggressive borrowing and building strategy
helped him rack up massive amounts of debt, and as Stein
reports: “…he has accumulated a debt-to-earnings ratio of 6.8
to 1 in the U.S. Then the loans stopped coming, and his stock
price sank from $144 to $1.42 in March.”
photo courtesy: http://www.workingworld.com/articles/Sheldon-Adelson-and-Las-Vegas-Sands
I think Adelson is right in assuming that human nature isn’t
going to change – people are always going to want certain
pleasures. Las Vegas feeds and satisfi es many basic pleasures
and desires for: attention, sex, the thrill of risk-taking and
gambling, socializing and a euphoric sense of getting away
from it all. Where I think Adelson goes wrong, is in assuming
that Las Vegas is the only place where people can and will go
to satisfy these pleasures.
Most of the aforementioned human desires can be fulfi lled in
much less expensive ways. With the exception of gambling,
they can all be fulfi lled for the attractive price tag of $0.00.
Gambling is exciting because it’s about taking risks and
potentially reaping large rewards. There are other ways to
satisfy this desire to take risks, which are less expensive than
throwing hundred dollar bills at the craps table, such as cliffjumping
or sky-diving. Really, you could have your own Vegasstyle
party in your own basement for free if you wanted to. (I’m
not necessarily recommending you do this, I’m just stating
the obvious.) Adelson doesn’t think you will, so he’s going to
keep furnishing his rooms with the biggest and the best for
you to purchase, even though you and your friends may now be
unemployed, thanks to the recession.
Adelson’s “build it and they will come” strategy is a great
example of how to lose touch with your customer and build
your own grave as an entrepreneur. Yes, success is about taking
risks. But right now, Sands is acting like a child. He wants to
play by his rules and refuses to adjust his business strategy to
his market.
CONTINUED ON PAGE 6
UST REAA RE CAP | Fall 2009 | 5

As David Kelley writes in The New
Individualist’s Summer 2009 edition:
‘There can be no “rule” that one’s
job – or even the company one works
for – will exist forever. There can be no
“rule” that a job or an investment, or
the real estate market will continue to
offer the opportunities and returns they
have in the past. As every investment
prospectus says, “Past performance
is no guarantee of future returns.”
If entrepreneurs and leaders in our
country look to investors like Sands as
their role models, we will be doomed to
further economic stress.
Whether you are a business leader or a
politician, you are only as successful as
the people who got you there. President
Obama can not assume that because
66 percent of young people elected him
into offi ce based on the hope that he
would offer positive change and ideas
for growth that he’s locked in. There
6 | UST REAA RE CAP | Fall 2009
D.C. & VEGAS CONTINUED FROM PAGE 5
are no rules other than the people’s
rules. President Obama’s approval
ratings have been falling on issues
because, while he did an excellent job
of marketing “change” and “hope,”
he hasn’t provided us with reasons to
jump on-board with his healthcare plan
or economic stimulus proposals.
According to a Sept. 10, 2009 article
by Beth Jinks on Bloomberg.com,
“Las Vegas Strip gambling revenue fell
11 percent in July, the 19th straight
decline, and Atlantic City’s dropped 16
percent in August as the two biggest
U.S. gambling centers grapple with
the worst slump on record.” Clearly,
the people Adelson is counting on to
support his fl amboyant casinos are
making a lifestyle change: They are
fi nding other ways to have fun beyond
throwing money at his luxurious table
games and hotel rooms.
Meanwhile throngs of American people
have gathered on Capital hill for
protests, as Michelle Malkin exposed
in her September 12th blog post, they
are forming their own tea parties and
participating in Town Hall meetings. All
these citizen gatherings send a clear
message to our elected offi cials: We
want you to listen to us – we are the
consumers, the constituents and the
voters. And if I haven’t made it clear,
we vote with our pocketbooks.
I’m sure our leaders in Washington
don’t want to lose their constituents in
the way Las Vegas is – by obstinately
pushing forward with their own business
model and ignoring the voice of the
marketplace.
Katie Kieffer ‘05
www.katiekieffer.com
Thank You to Our 2009 Annual Sponsors!
FOUNDER LEVEL PRESIDENT LEVEL
BENEFACTOR LEVEL

Commercial RE MarketWatch:
New IRS Regulations Might Contain CMBS Defaults,
but Won’t End the Commercial Real Estate Crisis
As property owners holding commercial mortgagebacked
securities (CMBS) funded loans have
attempted to address fi nancing concerns over the
past 12 months, many have complained of the
impossibility of getting special servicers on the phone.
Constrained by tax regulations that dictated real estate
mortgage investment conduits (REMICs) could not allow
modifi cations to their mortgage pools without incurring tax
penalties and the possible loss of REMIC status, servicers told
borrowers to wait until they were in default to contact them.
That’s lead to frustration and a lot of inaction.
As a result, there is now a lot of buzz being generated by the
move last week from the Internal Revenue Service and the
U.S. Department of the Treasury to loosen the rules to allow for
loan modifi cations and extensions. If all goes well, the relaxed
rules will get servicers to work with borrowers on potentially
distressed situations earlier in the game, and might stave off a
signifi cant number of mortgage defaults, according to market
analysts. The measure might even lessen potential losses from
defaulting loans, giving servicers the opportunity to hold on
to distressed assets until conditions in the investment sales
market improve somewhat.
But like the banks’ strategy to “pretend and extend” on
traditional mortgages, the new CMBS regulations might only
be effective in delaying the problem, not solving it, says
Clint Myers, strategist with Property & Portfolio Research, a
Boston-based real estate research fi rm. Plus, analysts remain
concerned about the possibility of unnecessary modifi cations
and loss of value for holders of highest rated CMBS securities
if the new regulations allow for the forgiveness of principal
debt or long-term extensions.
“It doesn’t make problems go away, it delays them for another
day with the hope that things will get better in the meantime,”
says Myers. “This will give servicers slightly more fl exibility
and lengthen out the cycle, making less clear what values are
and delaying the bottom.”
The changes, effective as of Sept. 16, will cover loans
modifi ed on or after Jan. 1, 2008. They will allow for
modifi cations to the loans’ collateral and guarantees, as
well as giving servicers the power to switch non-recourse
mortgages to recourse. As a result of the new regulations,
servicers will now also have greater discretion in deciding
which loans might need modifi cation, enabling them to step
into those situations where a loan that’s still performing today
has a high likelihood of defaulting in the future.
Overall, according to Federal Reserve data there is $900
billion in outstanding CMBS debt accounting for 25.7
percent of the $3.5 trillion in commercial real estate debt
outstanding. In 2010, there will be somewhere about $39
billion in CMBS debt coming due and about $150 billion
coming due by the end of 2012. In July, the delinquency rate
for CMBS loans reached 3.1 percent, according to Realpoint
LLC, a Horsham, Pa.-based credit rating agency. By the end
of the year, the fi rm predicts the delinquency rate will move
past 6 percent.
“It’s defi nitely a positive move, as it will temper the level of
distress that we otherwise would project for the securitization
market and will indirectly benefi t the larger pool of
commercial mortgages,” says Sam Chandan, president and
chief economist with Real Estate Econometrics, a New York
City-based research fi rm. “But this program will be most
effective in cases in which some reasonable modifi cation will
allow the mortgage to perform. Some of the most egregiously
underwritten mortgages from the peak of the market will not
benefi t from this program.”
In addition, the new regulations might turn out to be more
beneficial for holders of lower rated CMBS bonds than
for those who invested in AAA-rated securities. Because
AAA-rated bonds are, in theory, backed by highest quality
properties, those investors expect to see full repayment
of loans at maturity date, says Frank Innaurato, managing
director of analytical services with Realpoint. They tend
to hold the bonds for the short term and, for them, more
modifications might mean lower yields. For investors in
AA-rated and A-rated securities, on the other hand, who
tend to hold the bonds for a longer-term and who incur
most of the penalties in default cases, more modifications
mean smaller losses.
“If too much fl exibility is granted, you are going to have
investors losing money because what is good for the borrower
might not necessarily be good for the investor. The position
we are taking is that it can be a double-edged sword—it
may preclude balloon defaults, but it will increase the risk
of extension and modifi cation,” says Innaurato. “Will there
be any type of debt forgiveness that will lead to a loss for
the Trust? And one of the biggest concerns is how many
borrowers with otherwise performing properties and stable
cash fl ows will be in line for this?”
Andrew Chana ‘01
CHANA Investment Group
UST REAA RE CAP | Fall 2009 | 7

News from the University of St. Thomas
Real Estate Programs
As alumni of the University of St. Thomas, many of you
have, in one way or another, worked with real estate
program staff and faculty. We want to take this
opportunity to introduce you to the real estate team as well as
to highlight some of the new and exciting things planned for
the spring semester and beyond, and how all of these plans
will affect you as alumni.
This academic year has included the addition of familiar
faces to full-time staff and faculty within the University of
St. Thomas real estate programs team. These additions
allow for expanded program offerings, real estate community
involvement and further development of the Shenehon Center
for Real Estate, the UST BS Degree in Real Estate, the
UST MS Degree in Real Estate and real estate professional
development programs.
8 | UST REAA RE CAP | Fall 2009
New Full-time Real Estate
Faculty Member
Many of you may know Dr. Tom
Musil as the former director
of the Shenehon Center for
Real Estate and the UST MS
Degree in Real Estate. As of
September, Tom has accepted
a faculty position teaching both
undergraduate and graduate
real estate courses in the Opus
College of Business. Tom will
be teaching the Advanced Topics
in Real Estate course, Real Estate Decision Making, Real
Estate Development, Real Estate Property Management and
Real Estate Appraisal. Tom is working on a major research
paper addressing how the mortgage foreclosure crisis differs
among the largest 200 Metropolitan Statistical Areas in the
U.S. and how government solutions to the crisis should refl ect
community social and economic characteristics.
New Director of the Shenehon
Center for Real Estate and the
MS Degree in Real Estate
Herb Tousley has been a member
of the UST real estate team
since 2004 as an adjunct faculty
member teaching undergraduate
and graduate real estate courses.
He has more recently accepted
the director position to join the
team on a full-time basis.
Herb comes to St. Thomas from Griffi n Companies, where he
was a senior vide president handling acquisitions and client
services with an emphasis on property tax appeals. In this
new position, Herb plans to add programs that are timely and
relevant to today’s rapidly changing real estate environment
and continue to build strong relationships within the real
estate community. In the UST MSRE program, he plans to
allow candidates the opportunity to tailor their courses of
study to provide more opportunities to specialize in areas that
best fi t their interests and career situations. In addition, he
would like to develop more robust internship and mentorship
programs for students in the MSRE program. These changes
will enable MSRE graduates to enter positions with relevant
work experience, making them even more marketable to
potential employers
Transition from Undergraduate
to Graduate Courses
Dr. Tom Hamilton teaches in both
the undergraduate and graduate
programs in real estate, as well
as in professional development
programs. As the “new” MSRE
program is growing and evolving
to meet ever-changing market
demands, Tom has transitioned to
teaching more graduate courses
at UST. Taking the successes
achieved from developing the
undergraduate program from a handful of students in 2000
to more than 70 majors today, he is working to develop
similar strategies and promotions to give graduate students
(MSRE and MBA-Real Estate) a similar advantage in the
marketplace. Using his experience and background (coming
from the Wisconsin Real Estate program), he hopes to recreate
the successes of the “Big Red Machine” at UST to develop
the best, well-rounded real estate “thinkers and doers” in
the world. The goal of the UST real estate programs is to
develop the best prepared, equipped and trained real estate
professionals in the world—second to none.
In addition to teaching, Tom has also been working on
researching numerous real estate-related issues in the
marketplace, including inequitable property tax assessment
and valuation practices. The current standards used and
applied by assessors are oftentimes misinterpreted by local
and state assessment districts and state agencies, especially
the use of nonparametric statistics to test for valuation
uniformity within and between classes of property.
CONTINUED ON PAGE 9

CONTINUED FROM PAGE 8
Even though the international
standards are statistically
sound and well documented,
their application is oftentimes
misused by government,
resulting in adjustments in
valuations that are not supported
by sales data. The improper
application of statistics can
result in inequitable and
improper valuation and tax
liabilities for property owners.
Research issues like this are
frequently brought into the
classroom to enhance student/
graduate advancement in the
workplace.
Recruiting, Admissions and
Student Life for the MS
Degree in Real Estate
Susie Eckstein works with the
recruiting, admissions and
student life for the UST MS
Degree in Real Estate, and
also works with projects for
the Shenehon Center for Real
Estate. In addition to working
for UST, Susie earned a B.A.
in Marketing from UST in
2003 and will complete the
Evening UST MBA program this
December. With knowledge
of and experience with all of
the Opus College of Business
graduate programs along
with real estate professional
development programs, Susie
can help you to fi nd educational
opportunities that best fi t your
needs.
Peter Tanis sat down with St. Thomas alum,
Dan Gleason of NorthMarq. Dan is a well
known offi ce broker specializing in leasing
and sales in the Twin Cities market.
Dan has distinguished himself as a leading
broker in the brokerage industry and has been
recognized each year as a member of the
NorthMarq Offshore Club. Dan is known for
his strategic viewpoint and problem-solving
capabilities along with his knowledge and
relationships throughout the Minneapolis/St.
Paul marketplace. He has been responsible for
representing a variety of owners in obtaining
their real estate objectives. Throughout his
career, Dan has been responsible for the
marketing, leasing and sales of numerous
projects consisting of more than eight
million square feet. He has leased more than
four million square feet of offi ce and been
involved in numerous commercial property
acquisitions and disposition projects. He
has completed numerous large transactions
involving companies like Blue Cross Blue
Shield, Seagate, ADC and CH Robinson.
Q: Dan, what year did you
graduate from UST and
what was your focus?
A: I graduated in 1988 with a BA in
Accounting.
Q: Dan, tell me a little about
your family and home life?
A: My wife and I met at UST, and we have
been married for 19 years. We live
in Highland Park, St. Paul, with our
four children.
Q: What were you doing
before your current position
and NorthMarq?
A: Before joining NorthMarq, I was a
senior associate with the Koll/Shelard
Group for about fi ve years specializing
in offi ce leasing and sales.
Tommie Spotlight
DAN GLEASON
OF NORTHMARQ
Q: Dan, what is your favorite
aspect of the business?
A: I really enjoy the people. Our business
allows us to develop relationships with
our customers, our competition, and
our co-workers. I feel blessed to be able
to work with so many great people.
Q: What groups are you
involved with within the
industry and community?
A: I am a past president of the Minnesota
Commercial Association of Realtors and
try to stay active in the industry.
Additionally, I participate with various
non-profi t organizations and spend time
coaching the various sports activities of
my kids.
Q: What keeps you motivated?
A: The challenge, the deal, and
troubleshooting for clients. I love
collaborating with other individuals and
working hard to meet my client’s needs
and expectations.
Q: What is your favorite Sport or hobby?
A: Golf.
Q: This market has been diffi cult for
many people in the business
especially the younger professionals;
what advice do you have for new or
younger real estate professionals?
A: A: First of all, maintain an attitude of
gratitude. Ask yourself; do I have to
be here or do I get to be here? A
grateful perspective will make all of
the difference. Negativity is just noise;
don’t let it zap your energy and
enthusiasm. Secondly, manage your
expectations. Be patient and let
things play themselves out. Thirdly,
embrace change, it is the gift that
keeps on giving, and those who can
adjust will be the winners. Finally,
appreciate every relationship and let it
shape who you become.
Peter Tanis ‘06
UST REAA Vice President
The C. Chase Company
UST REAA RE CAP | Fall 2009 | 9

THE UNIVERSITY OF ST. THOMAS
and
OPUS COLLEGE OF BUSINESS
are pleased to introduce the inaugural members of the university’s
REAL ESTATE ADVISORY BOARD
Stephen Baker Ramsey County Assessor
Bill Beard Beard Group
Luigi Bernardi Aurora Investments
Thomas Burke TOLD Development Company
Colleen Carey The Cornerstone Group
Charles Caturia CB Richard Ellis
Richard Collins Ryan Companies
Daniel Commers Roseville Properties
Management Company
Thomas Crowley Dougherty Funding LLC
Robert Cunningham TOLD Development Company
Michael Dwyer Opus Northwest L.L.C.
Daniel Engelsma Kraus-Anderson
Joseph Finley Leonard, Street & Deinard
James Gearen Zeller Realty Corporation
Kyle Hansen U.S. Bancorp
Gene Haugland Haugland Company
David Jellison Liberty Property Trust
John Johannson Welsh Companies
Terrence Kingston Cushman & Wakefield
10 | UST REAA RE CAP | Fall 2009
Frank Lang Lang-Nelson Associates Inc.
Timothy Murnane Opus Northwest L.L.C.
Russell Nelson Nelson Tietz & Hoye
Kathleen Nye-Reiling Silver Cliff Properties
Edward Padilla NorthMarq Capital
Ronald Peltier HomeServices of America, Inc.
Christopher Puto Opus College of Business
Mark Reiling Colliers Turley Martin & Tucker
Howard Roston Malkerson Gilliland & Martin
Mike Salmen Transwestern
Jerome Sand Kraus-Anderson
Richard Schadegg CB Richard Ellis
Jeffrey Schoenwetter JMS Companies
John Seidel John P. Seidel, Bank Consultant
Boyd Stofer United Properties
Robert Strachota Shenehon Company
Paul Sween Dominium Group, Inc.
Scott Tankenoff Hillcrest Development
William Tobin CRESA Partners
Vikram Uppal Uppal Enterprises
UST Alumni: Please feel free to contact the above members of the UST Real
Estate Advisory Board with industry questions. For individual contact information,
call Bob Strachota at (612) 333-6533.
Email
Address
Updates
Needed
The UST REAA
utilizes email as
our main line of
communication to
inform members
of important
information.
To update your
contact information
please email
changes to
benjamin.bastian@
cushwake.com.

UST Real
Estate
Society
The Real Estate Society at the University
of St. Thomas is one of only ten clubs
currently recognized by the OPUS College
of Business. The organization is a group of
undergraduate business students with an
interest in real estate; though is not exclusive
to students in the real estate program at St.
Thomas. Joe Dixon is the current President of
the Real Estate Society and is assisted through
the help of Carissa Steuck (Vice President),
LJ Stead (Treasurer), Nick Armstrong (Social
Chair) and Sierra Hamilton (Secretary).
Over the course of the academic year, the Real
Estate Society hosts guest speakers who are
currently working in the real estate industry
over the lunch hour. Typically, the guest
speakers hold a senior management role and
discuss things such as: their career path, how
they are directly or indirectly involved with real
estate, opportunities in the fi eld and share any
advice they have for current students.
Throughout the 2009-2010 academic year,
the Real Estate Society at St. Thomas will host
speakers from companies including: Target
Corporation, Express Scripts, Supervalu,
Northmarq, OPUS, Ryan Companies, and
other fi rms located in the Twin Cities with a
real estate presence.
In the spring of 2010, members of the Real
Estate Society will work together with the
students taking the Development class (REAL
470) at St. Thomas to participate in the
annual NAIOP Real Estate Challenge. This
challenge puts students to the test of creating
a development plan which is then judged by a
group of panelists who decide on a winner. At
the end of the academic year, the Real Estate
Society joins with fellow alumni to attend the
End of the Year Banquet hosted by the UST
REAA. The Real Estate Society is always open
to new ideas and involvement with the local
community so please contact us with any
suggestions!
Joe Dixon ‘10
UST RES President
Shenehon Company
Tom Hamilton
THE DOC’S
FINAL
THOUGHTS
Real Estate Markets
2009 and Beyond
November 2009
Introduction (Remember When Supply and
Demand Mattered?)
The past three months have been “better” than the rapid deterioration
in the housing market over the prior 15 months. Researchers have
started to look beyond the “almighty” Case-Shiller index and have
found that bifurcated markets exist. This does not mean that “two”
housing markets exist, but rather two distinct groups of transactions.
Median housing prices for “traditional” home sales (those not
mediated by lending institutions) have fallen only about 8-10% below
their peak prices in 2006. On the other hand, mediated properties
have fallen drastically—on the order of 35-45%. Even though these
properties “compete” with each other, the two groups are quite
different in quality. Often, purchasers of mediated properties must
make signifi cant cash outlays after acquisition to get them up to the
same quality as traditional properties. As such, the total price paid
for these mediated properties brings the total cost of acquisition more
in-line with traditional properties.
In the commercial marketplace capital is still fairly limited, bid/ask
spreads are wide, and prices have not yet fallen to the point to justify
investment. From about 2004 to early 2008, there was a signifi cant
oversupply of cheap capital pushing prices upward. With cashladen
coffers piling up at the entrances to banks, lenders ignored
fundamental asset valuation and eagerly supplied unrealistically
inexpensive sources of capital into the marketplace. That was the
beginning of a “perfect storm”, and the hurricane is yet to come as
these spreads are now starting to narrow.
CONTINUED ON PAGE 12
UST REAA RE CAP | Fall 2009 | 11

Overall Capital Markets: Liquidity
Crunch and Risk-based Lending/
Investing
Global equity capital has been for over a year (and still is)
sitting on the sidelines waiting for assets to re-price downward
to risk-adjusted levels that warrant investment. Traditional
lending institutions are now sitting on cash, waiting for the
right time to start making investments—they are the vultures
circling overhead. The time will come when these commercial
real estate assets adjust to the new reality of signifi cantly
higher cap rates, and the vultures will swoop down to feast on
the dead and weary prey below. This will result in a massive
deleveraging of assets from abnormally and unsustainably
high LTVs underwritten by the “creative fi nance promoting
Wizards of Oz” a few years ago. But in 6-12 years’ time—as
history tends to repeat itself—the progeny of Oz will rise and
create yet another bubble as they preach to the masses that
underlying fundamental valuation (DCRs, LTVs and other risk
ratios) no longer matter in the “new economy”.
When we think of our overall GDP, we are seeing “Consumer
Savings”. As such, no spending = contracting GDP. Earlier
this year some economists were saying that this was going to
be a protracted and deep recession. The deep part is correct,
but by the end of the year, GDP should show slow growth,
much less than the ~3% growth recorded in the third quarter
(gimmicks only work for so long). Overall, the current fi nancial
and economic situation is like a dam without an outlet,
and the question remains, “When will the dam burst and
capital start fl owing again?” The answer, like with residential
property, is when prices reset to a more reasonable level and
a sustainable, natural growth rate.
For residential property purchases, fundamental purchasing
ability (income/expense ratios and down payments) will
produce stable and slightly rising housing prices as the region’s
population continues to increase. The region’s economy
will also start to grow, relieving some of the stress felt by
current owners and future purchasers regarding their homes.
Nationally, we should see unemployment stay relatively high,
but that too will wane over the next three years as GDP grows
slowly, business capacity is eventually reached and real net
employment occurs.
Who is at Fault?
THE DOC’S FINAL THOUGHTS CONTINUED FROM PAGE 11
Passing the buck, which means “IT IS NOT MY FAULT”,
is not the answer. Some participants might say that the
market changed—or, did they really do their homework? How
different would the world be today if all past residential loans
were conforming loans (prime loans)? With a minimum of
20% down, conforming loans have a reasonable buffer for
temporary asset value reductions. It also requires investors
to have some “skin in the game”. It also helps to limit overly
leveraged deals. Overall, the Fannie/Freddie issue would be
much different than what we are dealing with today. Ditto for
commercial mortgage debt market.
12 | UST REAA RE CAP | Fall 2009
Appraisers (the Gatekeepers) and appraisal reports require
a complete market analysis to be valid. Historical data
and performance are only PART of the process—it tells us
where we were (with 100% accuracy by the way). In reality,
prospective (future) market conditions are what matter to
investors. Understanding that change is ever present, a good
market analysis will help us to better estimate what we should
expect. With better analysis (by strengthening and enforcing
USPAP requirements—no more “preferred appraisers”), the
incentives would be better pay for better work because, in the
long-run, better work pays dividends for everyone. Changes in
the appraisal process are necessary because current methods
haven’t worked well and are part of the blame for our current
situation. I say “part” because cities are also to blame. In the
past decade, building permits (and their associated fees—
$$$) went wild to fund local government operations and was
seen as a cheap and easy source of money—until it is gone.
The Future of Real Estate Markets
and Closing Statements
Regarding real estate capital markets, everyone is waiting
for prices to reset lower. When prices reset to realistic levels,
capital will again start to fl ow. Right now there is an imbalance
between sellers and buyers, and these new, future (lower)
prices will refl ect reality. Once prices fall, on average 30-
40% THEN, AND ONLY THEN, will capital markets recover
and investment activity start to improve. On a positive note,
real estate markets have had some needed down time from
the frenzy of the early part of this decade. Everyone needs
to evaluate alternatives wisely because opportunities do exist
today and more will become apparent once prices reset to
realistic levels: 8% cap rate for Apartments; 10% cap rate
for offi ce; and 10-11% for industrial/warehouse. But also
realize that it will take about 9 to 12 more months before any
signifi cant transaction volume will resume (say, to 2003 or
2004 levels).
Lastly, we want to welcome Herb Tousley as the new Director
of the Shenehon Center for Real Estate and Director of the
MS in Real Estate program at UST. Please feel free to contact
Herb and welcome him to the UST real estate programs! His
contact information is:
Herb Tousley, CCIM
Director, Shenehon Center for Real Estate and
MS in Real Estate
1000 LaSalle Avenue, TMH 551F
Minneapolis, MN 55403
hwtousley1@stthomas.edu
651-962-4263
Thoughts of Tom Hamilton, PhD, CRE, FRICS
UST Professor of Real Estate