Gunz 'n Apollo

Gunz 'n Apollo 2006-02-01 Staff Writer How far has gentrification come in New York? A neighborhood once “shouted out” in a classic gangsta rap track is now the site of a major deal led by Apollo Real Estate Advisors (see p.14). Last month, the New York private investment biggie announced it would lead an inv

How far has gentrification come in New York? A neighborhood once “shouted out” in a classic gangsta rap track is now the site of a major deal led by Apollo Real Estate Advisors (see p.14). Last month, the New York private investment biggie announced it would lead an investor group in the $100 million acquisition of the Lafayette Morrison and Lafayette Boynton public housing complexes, a cluster of apartment buildings located in the Soundview section of the Bronx.

The Bronx in general, and Soundview in particular, hasn't always enjoyed such a positive outlook. In the 1997 hit “Déjà Vu (Uptown Baby),” rappers Lord Tariq and Peter Gunz warn of being “Bronx most wanted” and having “guns out, from dusk till dawn.” Those pretenders interested in a confrontation are advised: “Whatever have you, I'm from Soundview.” In the meantime, the residents of the Lafayette complex have exhibited a more progressive kind of toughness. After 12 years of working to stabilize and improve the properties, the low- and middle-income families that live in the complex's 1,895 units will now get the opportunity to buy their apartments. A New York housing services official called the deal a “model for the rest of the city.” No word yet on whether Tariq and Gunz will get a finder's fee.

QUOTABLES
“I've made more money in real estate than I've ever made in movies.”

Woody Allen, in an interview with Vanity Fair

“We are definitely slowing down and charging a lot more for it. We are out of Las Vegas. We are very much out of Miami, and we are hesitant in New York City.”

Brian Harris, global head of commercial real estate at UBS, talking to the Wall Street Journal about his company's tighter lending practices

“Nothing shocks me anymore. This market is absolutely crazy.”

Daniel Sciannameo, an appraiser at the Albert Valuation Group, taking to the New York Times about the record price recently paid for air rights in Manhattan

“You're only as good as your dumbest competitor.”

Ed Linde, president and chief executive officer of Boston Properties, speaking at a Bear Stearns real estate conference

“I think the real estate business is, was and always will be a fascinating business. The fact that real estate has the kind of leverage available to it, it's no accident that entrepreneurs have been attracted to it since the beginning of time.”

Sam Zell, in an interview with PERE

“There is no doubt in my mind that the start of this century will be remembered as the decade of real estate scandals.”

Ralph Roberts, self-proclaimed real estate expert and creator of www.flippingfrenzy.com

“The leading private equity firms are handing out first year compensation packages of more than $400,000. The banks and consulting firms are on a feeding frenzy. Anyone with Chinese on their CV is in hot demand. Next to private equity, the most coveted sector appears to be real estate.”

Philip Delves Broughton, student at Harvard Business School, writing in the Financial Times

“It takes 52 different signatures to get development approval in Moscow from different government officials. And there's no way you get 52 signatures without doing something you don't want to do.”

Prologis CEO Jeffrey Schwartz, at a recent conference hosted by Bear Stearns, discussing corruption in Russia

“It made very logical sense both as a real estate asset and an ongoing business to own the club.”

Peter Feinstein, in the Las-Vegas Review Journal, referring to his business partner Michael Talla's $80 million bid for The Sapphire, once billed as Las Vegas' biggest strip club