President's Corner - University of St. Thomas Alumni Association

Summer 2010
RE CAP
The Official Newsletter of the St. Thomas Real Estate Alumni Association
Contents
President’s
Corner | 1
St. Thomas Alumni
in Real Estate | 2
2010 Board
of Directors | 3
Executive
Committee | 3
Faculty
Advisors | 3
8th Annual UST
REAA Golf
Tournament | 3
2010 End of the
Year Banquet | 4
UST Real Estate
Society | 5
Summer Social
Event | 5
Congratulations
to New UST MSRE
and UST MBA Real
Estate Alumni | 5
Hedging Interest
Rates | 6
2010 Annual
Sponsors | 7
UST Real Estate
Executive Insight
Series | 7
News from the
UST Real Estate
Programs | 8
Tommie Spotlight –
Jim Gearen | 9
Tom Hamilton -
The Doc’s Final
Thoughts | 11
President’s Corner
Over the last several months the University of St. Thomas
Real Estate Alumni Association, the St. Thomas Alumni
Association and the Development Offi ce with the Opus
School of Business have been working hand in hand to collaborate
our congruent organizations. In the past the Real Estate Alumni
Association operated completely independent of the University. In
late 2009 it was agreed that all parties would benefi t by combining
forces; through many meetings, phone calls and emails, the UST
REAA has become an offi cial Alumni group within the UST Alumni
Community. As part of this conversion we will be invited to attend and participate; as a
group and independently in all of the UST Alumni events. Such events include “Take a
Tommie to Lunch,” “First Friday’s” and other larger annual Alumni events. The UST REAA
started with a small group of individuals and over the last 11 years, this “grass roots”
organization has evolved into much more than just a few friends meeting up for happy
hours. We should all be proud of the advances that our organization has made since its
inception and I want to thank all of those involved with this exciting process; Dean Puto,
Ben Bastian, Paige Von Bank, Nadine Friederichs, Katie Spangler, Chip Connelly, the
Real Estate Board of Advisors, the USTREAA Board of Directors, Dr. Thomas Hamilton
and many others within the University of St. Thomas and UST REAA communities. This
is a time of growth and unlimited potential for our organization. From this point on,
our website and marketing will all be run through the University of St. Thomas Alumni
forum and we are pleased to have this assistance moving forward. Please stay tuned for
upcoming events and volunteer opportunities.
I also want to take the time to welcome the following students into our alumni group:
Kevin Anderson, Nicholas Armstrong, Kevin Blake, Michael Bowen, Hudson Brothen,
Matthew Day, Joseph Dixon, Trevor Engebretson, Mox Gunderson, Jared Johnson, Ryan
Koch, Douglas LoPinto, Derek Maddox, Dan Mueller, Henry Ndawula, Brett Peterson,
Matthew Rich, Macie Schonning, Carissa Steuck, Cameron Voss, and Brett Wieber.
Congratulations to our graduates, we look forward to seeing you at alumni events!
Peter Tanis ‘06
UST REAA President
C. Chase Company
Petert@MasterMN.com
UST REAA RE CAP | Summer 2010 | 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 220 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
Marty Bechman .....1962
Tim Becker............1982
Luigi Bernardi .......1985
Dominic Berntson ..1997
Mike Bisanz ..........2010
Mike Bowen ..........2010
Alex Broderick .......2008
Angela Brown ........2004
Dan Brown ............2006
Will Buckley ..........2006
Ryan Burke ...................
Alyssa Burke .........2008
Tom Burton ...........1986
Kristin Bush ..........2009
Grant Campbell .....2006
Chuck Caturia .......1973
Andy Chana...........2001
John Chirhart ........1994
Mike Claassen .......2008
Jim Clifford ...........1977
Keith Collins .........1989
Eric Colmark .........2008
Chuck Commerford ...2001
Chad Commers ......2009
Bill Cosgriff ...........1963
Chris Courneya ......2006
Courtney Cove .......2003
Adam Cozine .........2006
Bill Crawford .........1975
Russ Crawford .......1985
David Daly ............2006
Katie Demko .........2008
Joe Dixon ..............2010
Andy Donahue .......2005
Mike Doyle ............2007
Vince Driessen ......1982
Gerald Driessen .....1985
Jill Dumeland ........2002
Mike Dwyer ...........1977
Stephen Eggert ......1982
Jon Engel ..............2007
Erika Engelbrecht ...2009
Garrett Farmer .......2000
Jon Farnsworth ......2008
Ben Fazendin ........2004
John Flaherty ........1974
Mike Galvin Jr. ......1952
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
Ryan Gregory .........2005
Kelsey Gregory.......2008
Max Grinberg.........2010
Tom Hamilton........2006
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
Tom Hildman ........2005
Andrea Hilgren ......2001
Mike Honsa ...........2000
Emily Howell .........2007
Tina Hoye ..............1980
Chris Huntley ........1999
Tom Immen ...........1986
2 | UST REAA RE CAP | Summer 2010
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
Michael Krediet .....2001
Brian Kruesi ..........2002
Rick Kunkel ..........1980
Becky Landon .......2002
Frank Lang ............1965
Tony Lang .............2007
Matt Larson...........2006
Alexander Leuthner ...2008
Paul Linstroth .......1975
Danielle Loffl er ......2006
Steve Lysen ...........1991
Joe Mahoney .........2006
Kelsey Malecha .....2007
Phil Mantia ...........2004
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
Scott Miller ..................
Cory Miller ............1981
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
Henry Ndawula ......2009
Nate Nelson ..........2006
Dennis Nesser .......1965
Steve Nilsson ........1995
Brett Olson ...........2005
Dave Olson ............2006
Chris Olson ...........2008
Jill Olson ..............2009
William Ostlund .....1994
Dave Ostlund.........2003
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
Pat Ryan ...............1975
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
Shawn Smith ................
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
Jim Volp ...............1994
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

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 CO-CHAIRS
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
8 TH Annual
UST REAA
Golf
Tournament
Join fellow Tommies for this year’s 8th annual Real Estate Alumni
Golf Tournament to be held at Braemar Golf Course in Edina on
Tuesday, September 21st. An 18-hole scramble golf event will
be followed by a short program and dinner which highlights the ongoing
events and developments within the UST Real Estate Alumni
Association and the University of St. Thomas. This event provides
a great opportunity for attendees to reconnect with old friends and
classmates and expand their professional network by meeting fellow
supporters of the St. Thomas Real Estate Program. Gather your
classmates and work colleagues to form a foursome. We look forward
to seeing you at the tournament!
In addition, we will be hosting a silent auction to raise funds for two
memorial scholarships set up on the behalf of Mr. Jon Just (’04) and
Mr. Tom Hildman (’05). If you or your company would like to donate
auction items for the golf tournament or you have any questions, please
contact one of the golf committee members:
Grant Campbell ‘06
Golf Committee Co-Chair
WelshInvest, LLC
gcampbell@welshco.com
Tim Kleiman ‘09
Golf Committee Co-Chair
Cushman & Wakefi eld
tkleiman@fnbbuilding.com
**Registration for this event will be sent out in August.
UST REAA RE CAP | Summer 2010 | 3

2010 End of the Year Banquet
At the 7th Annual Real Estate Society Year-End Banquet,
attendees gained knowledge about the current real estate
market and trends, tips for enhancing their business
network and perspectives from qualifi ed leaders in the Twin
Cities real estate market about what it takes to persevere in
a real estate career and become a success. The panel of
speakers was moderated by Mike Doyle (Welsh Companies)
and included Jen Hem (NorthMarq Real Estate Services),
Frank Lang (Lang-Nelson & Associates), Mike Julius (Hines)
and Steve Lysen (CBRE).
The fi rst topic pertained to how the recession has impacted the
current market and day-to-day activities for each of the panel
speakers. One of the key points was that excellent property
management is more important than ever. Expenses need to
be managed closely to ensure that the property is running
effi ciently in order for maximum net operating incomes to
be achieved. Along with managing the physical attributes of
properties, everyday, emphasis is put on customer service and
catering to tenants’ needs to keep them in the building. When
trying to close a deal, everything is taking longer and there is
more negotiating in the leasing and selling process. Jen Helm’s
winning strategy and tip is to work longer and harder right now,
so you are stronger and better than your competition, when the
market fi nally picks up.
When is market recovery expected? A range of answers were
revealed amongst the panel. Some believe it is starting to
pick up right now, others think it will be 2012 – 2013 before
the retail market starts to strengthen. Some even think 2014
– 2015 will be the timeframe of the market and economy
to become stable. Mike Julius mentioned that about 60%
of architects are currently unemployed and every job sector
has a signifi cant percentage of unemployed individuals.
Noticeable stability in the market will not be achieved until
every industry becomes stronger and is able to contribute jobs
to the marketplace.
A recurring theme throughout the discussion was for current
University of St. Thomas students and the alumni to utilize
and take advantage of our network of professionals that is
being built. The best advice for graduating seniors was to get
out, polish up your interview skills and become comfortable
talking to people. Schedule an informational interview,
allowing the opportunity to put yourself in front of a potential
employer to learn a little bit about their job duties and any
opportunities that might arise in the future. In a declined real
estate market, fi nding good real estate jobs can be a challenge,
which is why job-seekers need to be creative to become
employed — meaning, intern with a company, work for free,
create opportunities that allow you to show and expand your
skill set so you will get hired. By taking this advice, you will
be one step ahead of other job seekers. The panel-of-experts
agreed that an employer will not want to lose you if you fi nd a
way to set yourself apart from the crowd. As Frank Lang said,
“fi nding qualifi ed, educated people who are appropriate for the
job is not easy.”
4 | UST REAA RE CAP | Summer 2010
Steve Lysen ‘91, Jen Helm ’02, Mike Julius ‘75
and Frank Lang ’65, Mike Doyle ‘07
Finally, the panel wrapped-up the discussion with the best
advice for everybody; good communication skills are essential
in this industry. It is not only important to become comfortable
with having diffi cult conversations everyday on the job, but
to also know when to talk and add value to a conversation.
Why talk just to talk when so much can be learned by being
a great listener and observer? Aside from developing superior
communication skills and constantly striving for a stronger
professional network, Steve Lysen left a lasting piece of advice
for everybody…fi nd what you are passionate about, pick
something that you can be the best at – something that is
small enough to specialize in. The question that helped him
develop his career was, “what are you famous for?” Through
career-exploration, networking and education, fi nd what you
want to be famous for.
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 Dan Mueller ’10 and the
USTREAA Jon Just Memorial Scholarship recipient was Sierra
Hamilton ’10. Congratulations to both of you and keep up the
hard work!
Kelsey Malecha ‘07
End of the Year Banquet Chair
Mardell Partners
Kmalecha@mardellpartners.com

UST Real Estate
Society
The Real Estate Society had a very successful year as
we hosted various speakers, social events, volunteer
opportunities, and attended off-site conventions
and site tours. Joe Dixon is wrapping up as President of
the Real Estate Society for the 2009-2010 school years
and has been assisted by the help of Carissa Steuck (Vice
President), LJ Stead (Treasurer), Nick Armstrong (Social
Chair) and Sierra Hamilton (Secretary). Elections for the
new executive board are currently under way. We are
looking forward to welcoming our new leaders within the
next few weeks.
This year we were able to host some big names within the
industry from all areas of commercial real estate ranging
from retail site location to brokerage to franchising. Some
of our guest speakers included; the Senior Vice President
of Real Estate from Target Corporation; the Director of
Real Estate from Supervalu Inc.; the Senior Vice President
of Brokerage Services for NorthMarq; the Executive Vice
President of Brokerage Services and Associates from
Welsh Companies; Vice President of Real Estate at
Express Scripts; Real Estate Manager from Culvers, Inc.;
Vice President of Real Estate at Holiday Companies; and
the Senior Vice President of Property Management at
Zeller Realty Group. We thank all of our guest speakers for
donating their time to speak with the young professionals
in the Real Estate Society and for their continued
involvement with the University of St. Thomas.
This year was an exciting year for students in the Real Estate
Society. In January, many of the members completed a
Market Analysis course in Grand Cayman, offered through
the University. In this class, they were able to complete
a Market Analysis of the island to assist the government
with the issue of limited low-income housing options. It
was a great opportunity for members to gain fi rst hand
experience and insight to an international market. Then,
in April, members 21 and older once again traveled to Las
Vegas where we were able to see what continues to drive
local markets. It allowed us to identify what made this
location so successful throughout its history. Though real
estate activity may be currently depressed, the persistent
development activity observed in these locations was a
positive indicator of the abundant opportunity available to
us in the near future.
The executive board is very appreciative of everyone who
elected us to our positions and for the active participation
from our members throughout the year. We look forward to
continued involvement with the Real Estate Society in the
future and wish all of this year’s graduates all the best in
their new careers or other future endeavors.
Joe Dixon ‘10
UST RES President
Shenehon Company
Jsdixon@stthomas.edu
Summer
Social Event
Join us on Monday, August 9th as the Saint Paul Saints take
on the Sioux City Explorers! The UST-REAA has reserved an
area for a pre-game picnic from 6-7pm and will have seating
at the game in the General Admission area. Cost for the event
is $25 per person and includes the game ticket as well as a
ballpark meal (includes your choice of a chicken sandwich,
hamburger and/or 2 hotdogs and a soda). Beer is $1 prior to
the 1st pitch and then will be full price for the duration of the
game. Look for registration information mid-July and come
out and enjoy the weather with fellow real estate alumni!!
For more information contact:
Brett Olson ‘05
Events Chair
Grandbridge Real Estate Capital
bolson@gbrecap.com
Congratulations to New
UST MSRE and UST MBA
Real Estate Alumni
The UST MSRE program would like to congratulate fall and
spring graduates of the MSRE and MBA Real Estate Track.
Chris Adams, Solomon Akanki, Max Grinberg, Kevan Hanson
and Marc Hanson are our newest MSRE alumni. Chris
Weirens and Jeff Winngatz from the Evening and Full-time
UST MBA programs have also completed the real estate
elective track; Congratulations to all of the new UST alumni.
Susan Eckstein ‘03
Admissions and Student Life for the
MS Degree in Real Estate
Sceckstein@stthomas.edu
UST REAA RE CAP | Summer 2010 | 5

HEDGING INTEREST RATES
With fi nancial overhaul legislation currently in
debate and legislators trying to fi nd the reason
behind The Great Recession, much attention is
being focused on complex fi nancial products. One term
specifi cally targeted is “derivatives.” Reading the headlines
of late would make it appear that derivatives are found
only on Wall Street. While we all know of someone who is
a professional in the markets (or claims to be), the bulk of
us reading this article work in the Twin Cities commercial
real estate industry and may very well be involved with
a building affected by a derivative. Two common forms
of a derivative are interest rate swaps and interest rate
caps, both of which are typically pegged to either LIBOR
or Prime, the index rates banks use to price loans.
In an Interest rate swap typically three parties are
involved: the payer, receiver (known in relation to the
fi xed rate stream of payments) and an intermediary
institution. The swap enables the payer and receiver to
“swap,” or exchange, positions from a fl oating rate to a
fi xed or fi xed rate to fl oating. The term of the swap can be
as brief as six months or less and extend to fi fteen years
or more, depending on the underlying agreement.
In an example familiar to me, party A (the payer)
acquired a property with a one year fl oating rate for
specifi c reasons at that time. When the time came to
refi nance at maturity, A looked for a fi ve-year term loan
at both fi xed and variable rates. With LIBOR rates near
record lows, they found that a fl oating 30-day LIBOR rate
swapped out would be lower than the fi xed rates that
were offered at that time. After deciding on the swap, A
worked with the bank (the intermediary) to facilitate the
loan terms and the swap. The bank found a client, party
B – typically a large, credit-worthy institution - willing to
be the receiver of the swap.
In the end, A (the payer) had a fi ve year, fi xed rate loan
that was comprised of a 2.6% fi ve-year swap rate (30day
LIBOR) with a constant loan spread of 2.9% for an
all-in fi xed rate of 5.5% paid to the bank. The benefi t
of the swap for either A or B lies in the actual fl oating
30-day LIBOR. If it stays below the fi ve-year swap rate
(2.6%), B profi ts the spread. If the actual 30-day LIBOR
exceeds the fi ve year swap rate over the remaining
term, then A profi ts the spread. The profi ting party is
known to be “in the money.” To settle on profi ts and
losses, the bank will usually set up a separate account
and distribute accordingly. Banks and intermediaries
that execute swap contracts are normally compensated
through a small increase in the quoted swap rate. Rarely
6 | UST REAA RE CAP | Summer 2010
does money change hands between parties at a swap
contract execution/closing.
“Banks and intermediaries that
execute swap contracts are normally
compensated through a small
increase in the quoted swap rate.”
Interest rate caps accomplish the same goal with regards
to hedging but work in a different way. In this example, the
same three parties are involved. Party A has a purchase
agreement on a “value-add” property and is working with
a lender for fi nancing. A lease-up schedule is in place,
and at the time the property reaches stabilization A
would like to refi nance the property with long term debt.
To get to stabilization, A needs a short term loan. Again,
with LIBOR rates at record lows, they decide on a 30day
LIBOR rate loan with a loan spread of 3%. The bank
underwrites the loan to a certain debt coverage ratio,
and to hedge against lease-up and LIBOR risk, the bank
forces A to enter into an interest rate cap agreement of
5.5%. The bank, again, has a client willing to agree on
the cap at a certain price.
In the end, A pays 3% over a fl oating, 30-day LIBOR rate
that, together, cannot exceed 5.5%. To acquire a LIBOR
cap, the payer normally purchases the cap up front from a
bank or other fi nancial entity. The price A pays is based on
how tight the current spread is between the requested cap
rate and the current index rate. The smaller the spread,
the higher the price, as B perceives more payout risk. A
benefi t for A is not only the hedge, but also a credit from
party B if the 30-day LIBOR rate pushes the all-in rate
above 5.5%. In this event, A profi ts the spread over 5.5%.
The benefi t for B is the price charged to A up front (in
contrast to the swap paid over the life of the term).
Both swaps and caps are priced on a “spread” which is
based on the risk or uncertainty the receiver holds by
having the fl oating rate position. Spreads are priced on
a market-rate based “swap curve”
readily found on various fi nancial
reporting resources. In this case
a fi ve-year swap spread was used,
based on the maturity of the swap.
Shawn Smith ‘07
WelshInvest, LLC
srsmith@welshco.com

UST REAL ESTATE EXECUTIVE INSIGHT SERIES
On every second and fourth Tuesday of the month during
the spring semester, about 25-35 UST MSRE students
and alumni and others interested in the real estate
industry spent some time learning from industry experts
during the Real Estate Executive Insight Series. This program
was sponsored by the UST Master of Science Degree in Real
Estate.
The Real Estate Executive Insight Series began with a
presentation led by Dave Rasmussen from Grandbridge Real
Estate Capital. Dave talked about fi nancing commercial real
estate in today’s market, how capital markets have changed
and creative ways in which deals are being fi nanced now.
Mary Bujold of Maxfi eld Research came in at the end of
February to talk with the audience about how changes in
demographics, economics and the job market are affecting
real estate development, acquisitions and fi nancing in the
Twin Cities market.
In early March, Jim Gearen of Zeller Realty shared his
observations about the Twin Cities offi ce market. From the
perspective of an owner, he discussed how the changes in
commercial real estate have affected offi ce property operations
and values.
Negotiation skills are critical in real estate. Jim Hilbert of
William Mitchell College of Law spent an evening talking
with our students and alumni about strategies and tools to
use in problem solving and promotion of mutually benefi cial
agreements.
In April, we heard from Skip Wyer of Oppidan Asset
Management. Skip talked about how real estate investment
management solutions can help fi nancial institutions and
investors wishing to invest in new real estate opportunities or
dispose of surplus commercial real estate assets.
Today’s market has created an increased need for creative ways
to fi nance or refi nance properties. Tony Navarro of StoneArch
Funds talked to the group about how these changes in the
market have impacted the process of raising equity for real
estate transactions.
Following the theme of real estate fi nancing in challenging
economic times, Lloyd Kepple of Oppenheimer Law discussed
the three questions that need to be answered in putting
together a successful joint venture. Joint ventures between a
sponsor and a developer are helping to provide ways to fi nance
development in today’s market.
Watch for more information about the fall Real Estate
Executive Insight Series. Details will be posted on the UST
MSRE website: www.stthomas.edu/
realestate and on the UST Real Estate
Linked In group page. These events are
free and open to the public. We invite
all UST Real Estate alumni to attend.
Herb Tousley ‘02
Director, Shenehon Center
for Real Estate and
MS in Real Estate
Thank You to Our 2010 Annual Sponsors!
PRESIDENT LEVEL
BENEFACTOR LEVEL
PARTNER LEVEL
UST REAA RE CAP | Summer 2010 | 7

News from the University of St. Thomas
Real Estate Programs
The staff and faculty of the UST real estate programs
have been busy this spring. We’ve launched new social
networking sites, refreshed the MSRE curriculum,
added an accelerated 16 month MSRE option, and created a
student mentorship program. In addition to these initiatives,
six students completed their Master of Science Degree in Real
Estate this semester.
Social Networking and Blog
Interested in reading more about what is going on with
the UST real estate programs? Follow, read and add
UST real estate to your Twitter, RSS Feed and LinkedIn
networks. Twitter@USTrealestate, Real Estate Matters Blog:
http://blogs.stthomas.edu/realestate; LinkedIn: UST Real
Estate Group.
New MSRE Curriculum
For those of you who are not familiar with the program, we
offer a 36-credit Master of Science Degree in Real Estate at
UST. Courses are offered in the evenings to allow our students
to continue to work while they complete their degree. The
program typically takes about two years to complete on a parttime
basis.
Since launching the UST MSRE program in the fall of 2007,
the program has grown steadily, with about 25 students and
six graduates this spring. Our students come from a variety
of different backgrounds, including property management,
investment, commercial and residential brokerage, real estate
development, engineering, appraisal, landscape architecture,
corporate real estate and lending. Because students have a
variety of different backgrounds, a lot of collaborative learning
goes on in the classroom.
As the UST MSRE program evolved, we began to see a need
for additional coursework to create more options for students
in the program. As of this fall, the UST MS Degree in Real
Estate (MSRE) program curriculum will include additional
real estate courses and elective options. Throughout this
spring semester, real estate faculty and staff have worked
to develop additional coursework and revamp the required
curriculum. With additional faculty and a growing student
base, these new courses can be offered on a regular basis for
both UST MSRE and UST MBA students. New students will
follow this program and current students have several options
for including new coursework into their current degree plan.
The required 10 core UST MSRE courses include:
• Real Estate Decision Making
• Statistical Methods for Decision Making
• Urban Land Economics
• Market Analysis and Feasibility Studies
8 | UST REAA RE CAP | Summer 2010
• *Commercial Real Estate Valuation
• Investment Property Analysis
• *Real Estate Development
• Business Ethics
• Geography for Business and Planning
• Legal Issues in Real Estate
Students in the UST MSRE program complete their degree
with a capstone option of either the MS Thesis or two Capstone
elective courses. The MS Thesis is an in-depth project related
to the student’s area of interest with the guidance of a faculty
advisor. Those who choose to take two capstone elective
options are able to tailor their degree with courses that fi t their
area of interest. Popular elective courses include:
• *Corporate Real Estate
• Negotiation Skills Management
• Financial Management
• Financial Accounting
• Project Management
• Marketing Management
• Leadership
• Economics of Organizations & Management
• New Venture Strategy
*denotes new courses
Accelerated MSRE
The MSRE program has launched an alternative to the parttime
evening program by allowing students to complete the
program in an accelerated 16-month format. Rather than
taking one or two courses per semester, those interested in the
accelerated format will take three to four courses per semester.
Students begin the program during the fall semester and will
graduate after the following fall term. During this time, we
will assist students in fi nding a part-time internship to help
them gain exposure to the real estate industry and acquire
experience to add to classroom discussions.
MSRE Mentorship Program
This fall, the MSRE program is launching an optional
mentorship program for current students. Although many of
the current students are working in the real estate industry,
the goal of the mentorship program is to help these students
increase their network and give them a chance to meet those
in different areas of the real estate industry.
Do you know of anyone with signifi cant real estate experience
(10+ years) who would be a good mentor? If so, please let
us know by contacting Herb Tousley at (651) 962-4263 or
hwtousley1@stthomas.edu.

Tommie Spotlight
JIM GEAREN OF
ZELLER REALTY GROUP
Mike Claassen sat down with St. Thomas alum, Jim Gearen ’83 of Zeller Realty.
In the Twin Cities, Zeller has been involved in the acquisition of
nearly 4,000,000 square feet. Much of that portfolio was sold
during the highpoint of the market between 2005 and 2007.
The partnership currently owns LaSalle Plaza in Minneapolis
and continues to be involved in the leasing and/or management of
most of the property formerly owned by Zeller. Jim Gearen heads up
all marketing and leasing for Zeller Realty Group as well as oversees
the operations of the Twin Cities offi ces of the company. Jim is a
founding principal, co-investor / general partner in the fi rm and its
properties. He is a 28 year veteran in commercial real estate, and
has successfully closed over 800 transactions totaling over 6 million
square feet since arriving in the Twin Cities in 1991. Some of the
major Twin Cities projects initiated by Jim include the acquisition
and re-positioning of Wells Fargo Plaza in Bloomington, Wells Fargo
Place in Saint Paul, One Financial Plaza in Minneapolis, and LaSalle
Plaza in Minneapolis. Jim also represented Wells Fargo Bank in
its acquisition of the Honeywell headquarters campus on 35W just
south of the Minneapolis CBD. In 2000, Jim was named to the
Business Journal’s list of 40 under 40. Jim is a member of UST’s
1983 graduating class, and currently serves as a Trustee for the
University of St. Thomas and Chair for the UST’s Catholic Studies
program. He is a husband and father, an active member of his parish
community, and an avid sailor and cyclist.
Q: Why did you choose to go to the University of St. Thomas?
A: My dad asked me to look at UST because he, his two brothers
and his dad were all alumni. While on that visit I got hooked on the
atmosphere, teachers and several of the programs I was interested in.
Q: What clubs, activities and/or sports did you participate in
while you were in college?
A: Now you’re testing my memory. Let’s see, Intramural Sports
(football and tennis), Student Government, Liturgical Choir, Young
Republicans (it was the end of the Carter era and the beginning of
the Reagan era).
Q: You have a degree in political science, how did you get into
real estate?
A: When I fi rst got out of college, I had been pursuing a career in
advertising; however I had held a summer internship in commercial
real estate with CBRE in the Twin Cities during college. As a result
of that, I was offered a job in Chicago doing commercial real estate,
whereas the Advertising job I was pursuing would have required me
to move to New York. I decided to stay closer to home.
Q: What made you decide to become a partner in Zeller Realty?
A: I don’t believe any one person can master all of the disciplines
necessary to be successful in the real estate industry especially on
the scale Zeller Realty has chosen. I chose to be one of the four
founding partners at Zeller Realty, because of the business plan
Paul Zeller had in mind, his personal commitment to a fl at corporate
structure and belief in the value of the partnership model.
Q: What does your “boutique” fi rm have to offer vs. some of
the larger fi rms in the Twin Cities?
A: We’re not really competing with the large commercial real estate
fi rms in town. We are focused on real estate investment opportunities,
as opposed to brokerage. Our fi rm does do some brokerage and
consulting work, but for a group of long-time clients upon request.
Q: Zeller has owned signifi cant properties in Bloomington,
St. Paul and Minneapolis. What activity have you seen in
these areas and how do the markets differ?
A: Every sub-market has its own dynamic and each property operates
differently in its respective sub-market. We try to pick properties that
will perform better than average within their specifi c sub-market.
This is something we refer to as Micro-Market Dynamics.
Q: How does this downturn compare with other down cycles
you have seen?
A: In many ways, this downturn is not terribly different from other
market downturns in the past, more sever in some ways yes, but still
fairly similar. What is different is that the government is changing
the rules under which lenders must account for real estate losses.
Therefore, we have a slower unfolding of opportunities.
Q: They say the market peaked some time in 2007, when do
you think the market will reach those levels?
A: I don’t know if we’ll ever reach the levels we were at in 2007.
Much will depend upon how long it takes the market to work through
the backlog of under-performing assets. The changes in accounting
rules could very well have the same effect that they did in Japan, and
our “rebound” could be more akin to the downturn we saw in Japan
over the last decade, or the “lost decade”, where property values
remained fl at for 10 years.
Q: What advice would you give a young professional trying to
stand out in this industry?
A: Work hard. Work smart. Put in a lot of time; the work world is far
more intense than college ever could be. Be proactive and creative.
Think outside of the box, yet be practical. Work on your writing
skills. Realize the work world is much more formal than the college
world. A graduate degree may well make the climb a bit easier.
Desire to win more than your competitor. ALWAYS be fair, honest
and truthful. It will pay off over the long-haul.
Mike Claassen ‘08
Zeller Realty Group
Mclaasen@zellerrealty.com
JIM GEAREN ‘83
EVP, PORTFOLIO DIRECTOR-
MARKETING & LEASING
UST REAA RE CAP | Summer 2010 | 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 | Summer 2010
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.

Tom Hamilton
THE DOC’S FINAL THOUGHTS
Bottom Feeding:
Feasting on the Impending Recovery
July 2010
Let the Feast Begin!
Those are the famous words spoken by the fi ctitious Professor
Albus Percival Wulfric Brian Dumbledore at the beginning of
each school year at the Hogwarts School of Witchcraft and
Wizardry. This could just as easily be the catch phrase for
the next year or two as the economic recovery continues to
produce jobs, capital starts to move into the marketplace and
properties with weak operating margins become available as
their existing debt fi nancing comes due. The feasting will be
strategically focused and the “value menu” will not be across
the board. But if you are not too fussy, there should be plenty
of opportunities in which to indulge—provided you have the
necessary equity to capitalize on bargain properties. For a more
“scientifi c” analysis of the local real estate market, read on . . .
Commercial Real Estate Sentiment
Survey
The University of St. Thomas Shenehon Center for Real Estate
has just completed the initial Minnesota Commercial Real
Estate Survey and Index. The Minnesota Commercial Real
Estate Survey and Index are designed to be a forecasting
tool for the commercial real estate market in the Twin Cities.
The survey posed questions to real estate leaders on their
expectations of future vacancy and rental growth rates, on land
and building development costs, and on new project fi nancing.
This is an aggregate survey and does not separate offi ce, retail,
and industrial properties in the Twin Cities market, and it
focuses on the supply side of commercial real estate. Our
participant panel consists of 50 individuals who are leaders
in their respective fi elds, and who are actively engaged in
studying both the demand for and supply side of commercial
real estate. In the aggregate, these participants are involved
in leasing space and adjusting supply to meet demand
conditions. The survey asked these participants their informed
opinions on changes in supply and demand conditions looking
forward two to three years into the future and then to reveal
their intentions toward future investment decisions based on
their opinions. By understanding the current and future views
of these participants, we will better understand the evolution
of the commercial real estate market in the Twin Cities.
“According to the UST Minnesota
Commercial Real Estate Survey,
the market for offi ce, retail, and
industrial sectors of the Twin Cities
market is expected to show signs of
recovery over the next two years.”
The UST Minnesota Commercial Real Estate Survey is a
Forward Looking Survey, and it will be conducted twice a
year—in the spring and fall of each year. This survey seeks
to elicit information about decisions being made today which
will affect economic events in the future, and it is patterned
after the UCLA Anderson California Commercial Real Estate
Survey which was initiated in 2006. The survey consists of
six questions around future markets and the participant’s
expectations. The participant is asked to reveal his or her
view of changing market conditions between now and 2012.
Each question was scaled to yield a value from 0 to 100 with
higher values corresponding to answers consistent with a more
favorable outlook for commercial real estate. Lower values
indicate a more pessimistic view of what is expected to happen
in the real estate market over the next two years. A midpoint
value of 50 is neutral, indicating that no change is expected.
Since this is the fi rst survey it will provide a benchmark
for future surveys. The responses to these questions are
summarized below, and they provide some interesting insights
into the market.
It appears that there is light at the end of the tunnel for
commercial real estate in the Twin cities market. According
to the UST Minnesota Commercial Real Estate Survey, the
market for offi ce, retail, and industrial sectors of the Twin Cities
market is expected to show signs of recovery over the next two
years. The composite index for this initial survey was 53.5,
indicating a slight amount of optimism by the participants that
general real estate market conditions are going to improve over
the next two years. This would be good news for an industry
that has been signifi cantly battered for the last two years.
CONTINUED ON PAGE 12
UST REAA RE CAP | Summer 2010 | 11

THE DOC’S FINAL THOUGHTS CONTINUED FROM PAGE 11
Market conditions are best
described by price (rental rates) and
excess supply (vacancy rate). The
participants were strong in their belief
that occupancy rates in particular
and rental rates would be increasing
over the next two years. The index for
occupancy was at 69.4 and the index
for rental rates was 60.2. Both of
these fi gures refl ect a strong opinion by
the participants that these two areas
would be showing strong improvement
over the next two years with increasing
rents and occupancies contributing
to higher net operating incomes. As
the existing vacant space is absorbed,
developers will start to contemplate
new development that would come on
line in 2 to 3 years to take advantage
of the anticipated increase in demand
and values.
The potential higher net incomes
(and values) will have to contend
with rising land and building costs,
and any new development will be
tempered—per the participant’s
opinions—by these rising land values
12 | UST REAA RE CAP | Summer 2010
and building costs. The survey’s
indices for land prices and the cost
of building materials were 42.9 and
33.7 respectively. These fi gures
indicate increased development costs
and reduce developer returns. This
increase in production would be of
particular concern if rents do not
rise at least as fast as development
infl ation. On a positive development
note, the participants were optimistic
that investors return on investment
requirements will moderate and that
the amount of allowable fi nancial
leverage will increase from where we
are today. The index for investors
expected returns was 56.6 and for the
amount of equity required 59.2. These
fi gures indicate that the amount of
available fi nancing will improve and
that more development projects will
be undertaken.
In summary, the participants were
optimistic about expected increasing
rents, higher occupancies, and the
fact that they feel that fi nancing will
be easier to obtain on better terms.
However, the expectation of increasing
land prices and a strong opinion that
the cost of building materials will
increase over the next two years was
a cause for concern that somewhat
tempered the composite index to just
over 50 (the midpoint). While the
participant group was not predicting
boom times ahead, there was a
defi nite feeling that commercial real
estate is starting to turn the corner in
the Twin Cities.
Tom Hamilton, PhD, CRE, FRICS
UST Professor of Real Estate
twhamilton@stthomas.edu

Attend an Information Session.
Waive the Application Fee.
Learn More about the MSRE Program.
Have you been considering the UST MSRE program and would like more information? Attend an
information session to learn more about the University of St. Thomas, Opus College of Business,
and the MSRE program curriculum, faculty, admissions and student experience.
Waive the Application Fee.
Join the MSRE program for an information session this summer and fall and receive a waiver of the
application fee for either the Fall 2010 or Spring 2011 terms.
Upcoming Information Sessions.
Monday, June 7 from 5:15-6:15 p.m.
Wednesday, June 23 from 12 – 1 p.m.
Wednesday, July 14 from 5:15 – 6:15 p.m.
Wednesday, July 28 from 12 – 1 p.m.
Wednesday, August 11 from 5:15 – 6:15 p.m.
RSVP for an information session at www.stthomas.edu/realestate.
Monday, September 20 from 5:15 – 6:15 p.m.
Monday, October 18 from 5:15 – 6:15 p.m.
Monday, November 15 from 5:15 – 6:15 p.m.
Monday, December 13 from 5:15 – 6:15 p.m.
Or, contact us to set up an individual meeting to learn more. We will waive the application fee for
individual meetings, as well.
Herb Tousley, CCIM Susie Eckstein ‘09 M.B.A.
Director Program Manager
Phone: (651) 962-4263 Phone: (651) 962-4279
hwtousley1@stthomas.edu sceckstein@stthomas.edu