Show Notes
Bio
Robert “Bob” Cohen recently retired from Perseus-TDC (now known as Transwestern Development Company). Bob founded Perseus in 2004 after leaving Insignia ESG, a large commercial brokerage firm that was acquired at that time by CBRE. Perseus, now Transwestern, is a significant development company that has produced over 20 projects in the region totaling about 3.8MM s.f. in office, apartment, hotel and industrial space. Their most recent delivery was the Revel Apartments, a 500 unit high rise project in conjunction with a full service Marriott Hotel in NOMA. Bob began his career in 1971 with Barnes, Morris and Pardoe as a commercial broker and eventually became President of the company in 1982. Subsequently, the company acquired Long & Foster’s Commercial Division. In 1998, the company was acquired by Insignia, ESG. In 2003, CBRE acquired Insignia, ESG. Bob decided to start Perseus the next year.
Bob graduated from George Washington University with a B.A. in 1967. He currently serves as a member of the Federal City Council. He is a past member of the Board of the Public Policy School at Duke University.
Show Notes
Current Situation, Origins and Education
- “Retired” is a strange word- He has a number of projects ongoing (5:30)
- Just got a call about an opportunity in Arlington and a “deal junkie” (6:30)
- Pivoting from brokerage to a Principal (7:00)
- Grew up in Long Meadow, MA near Springfield, MA (7:30)
- Interested in sports, but not academics (7:45)
- Guidance counselor recommended that he goes to trade school (8:10)
- Attended Kent State University prior to the tragedy there (8:15)
- Subsequently attended George Washington University (8:50)
- Worked while he was in college (9:30)
- Liked urban environment (10:00)
- 1965-1967 there (10:10)
- Met two guys from Seattle- got jobs on Capitol Hill (10:30)
- Met Sam Ervin, Senator from North Carolina (11:10)
- Worked on Capitol Hill running an elevator in a Senate Office Building (12:00)
- Worked in two bars and a liquor store while in school (12:30)
IBM
- Interviewed with technology companies for sales (13:00)
- Joined IBM and had great sales training in Dallas and White Plains (13:15)
- Beneficial training
- Office equipment sales
- Qualified for Golden Circle at IBM (14:30)
- Event where spouses were to attend
- Brought his fiance to the event, which was not “proper” and he was fired for this faux pas (15:00)
Brokerage- Barnes Morris Pardoe
- Looked for real estate brokerage jobs
- Went initially to Shannon & Luchs and was told to go over to Barnes Morris & Pardoe (16:00)
- Joined Barnes, Morris & Pardoe (16:30)
- Became top salesmen for about 10 yrs. (17:45)
- Before CB
- Became President in 1982 and stepped away from deal making (18:40)
- Reference to Vernon Knarr and John Kyle (18:50)
- David Carpenter was his mentor there in 1971 when he started (19:50)
- Know more about a client’s property than he did (20:30)
- Worked with Chip Akridge when he began in development (20:50)
- Worked with Oliver Carr, Ben Jacobs, Mel Lenkin and Nick Antonelli (21:15)
- Never work with people without money (21:50)
- If it doesn’t work on a yellow pad, it doesn’t work (22:30)
- Creative activities (23:00)
- He and Chip Akridge assembled a map of all sites east of 15th St. to pitch to Penn Mutual to acquire the sites and did not get approved (24:30)
- National Place site- Quadrangle won it, but he and Akridge competed for the site
- Quadrangle assembled it for the JW Marriott, retail with the Rouse Co. and the office building (25:15)
- Tells story about a site across from there with the Loew’s Corporation (27:20)
Merger- Long & Foster Commercial
- Merged with Long & Foster’s Commercial Real Estate division in the early 1990s (29:00)
- Acquired Kaempfer Property Management (29:50)
- Wes Foster was the best partner he ever had (30:50)
Sale- Insignia ESG and CBRE
- Insignia ESG approached Barnes Morris Pardoe & Foster at the time (32:15)
- Consulting firm recommended selling the company (32:45)
- More resources to compete with CBRE, JLL and Cushman & Wakefield (33:15)
- Koll Company approached them at first and they were then acquired by CBRE and he then was courted by Jim Didion, President at the time (34:00)
- Wanted to go with Insignia ESG because they “needed” them (35:45)
- Steve Siegal was the leader (36:20)
- Team stayed after the merger (37:00)
- A bit too bureaucratic for him and he wanted to leave (37:20)
Becoming a Principal- Perseus Realty
- Formed Perseus Realty initially (38:15)
- Had been through three recessions and didn’t want to keep running a brokerage firm and do brokerage deals (38:30)
- Decided to become a principal and own properties
- First project was 4733 Bethesda Ave. in Bethesda (40:00)
- Small building and it was financed with GE Capital (41:00)
- Leased up the building and sold it to JBG (42:30)
- Bought 2440 M St. and 1110 Vermont Ave. subsequently (42:45)
- Building in Tysons from TA Associates (43:30)
- Prices became too high and then went into development (44:45)
- 350,000 s.f. office project- Redland Corporate Center in Rockville, MD with Prudential (45:00)
- Leased first building to BAE Systems (45:30)
- First Potomac came into partnership (46:00)
- 14th & W St. was next development project- YMCA & 235 apartments (46:30)
- Anthony Bowen was partner and owner of YMCA
- Brokerage is rewarding and then realized that risk and operations of ownership was challenging (48:10)
- Financing risk can be uncontrollable (48:45)
- Criteria changes
- Had 350 people at Barnes Morris Pardoe and only had 10 people at Perseus (52:00)
- Built 3.8M s.f. with less than 10 people (52:30)
- Over 20 projects- office, residential, hotels, industrial (52:45)
- Bought a site in Bethesda for redevelopment (54:15)
Washington DC Office Market & Pandemic Influence
- On the Federal City Council and interested in rejuvenating the Downtown area (54:50)
- DC Initiatives (55:15)
- NOMA resurgence (57:00)
- 1200 1st St.– Steven Goldberg and him (57:20)
- Ballpark Area evolved into a great market (58:00)
- COVID market impact (59:00)
- Changed the culture- Work from home is a staple (59:30)
- Federal Government not returning to the office (1:00:00)
- Transition from office to residential is the biggest thrust yet only 10% of buildings work for the transition (1:01:00)
- Most apartments in DC are full yet there are not apartments in the CBD (1:02:20)
- Cited building at the intersection of 20th and L St. being redeveloped by Willco (Richard Cohen’s property) (1:04:00)
- Highest price for land maybe $180/s.f. (1:06:00)
- Bethesda market (1:07:45)
- Questions 5th St. site that the building (1:08:45)
- Psychological change (1:10:00)
- Delete the estate tax to retain wealthy residents (1:10:15)
- People leaving to go to Florida (1:11:15)
- Gun violence in DC has gone up (1:12:00)
- Four problems
- Commute time is challenging with construction going on during rush hour (1:12:30)
- Taxes (1:13:00)
- Crime
- Regulations
Northern Virginia Markets
- Walkability for tenants/people (1:15:30)
- Reston Town Center taken 40 years to get there (1:16:00)
- Tysons Corner getting better (1:16:10)
- National Landing
- Older suburban office buildings are deteriorating (1:17:20)
- Spring Hill Road
- Old Courthouse Road
- C Buildings are redevelopment plays (1:19:00)
- Citation of Reston Station with Chris Clemente (1:20:00)
- Land value cyclicality (1:25:00)
- Demand analysis is crucial today (1:25:30)
- Reference to RCRBX (1:26:30)
- Parking analysis is difficult (1:27:15)
- WMATA discussion (1:28:00)
- Rosslyn- Monday Properties buildings are in default (1:29:45)
- NOVA most likely to succeed (1:30:45)
Suburban Maryland Markets
- Maryland is “medically driven” (1:31:30)
- Land available in the I-270 Corridor
- Prince Georges will do better than many people think (1:32:15)
- 300 unit project in Hyattsville (1:33:00)
Hiring
- Brokerage hiring stories
- Rob Faktorow– Installs high end stereo system in cars- good salesman (1:35:45)
- Dulles Toll Road market expert
- Aggressive and polite
- Bill Kent– Retail brokerage success (1:38:00)
- Mike Curtis– Linebacker Baltimore Colts (1:39:30)
- Talk football and you will win the business
- Good brokers are smart and have to build a business (1:42:15)
- Need a good mentor
- Rob Faktorow– Installs high end stereo system in cars- good salesman (1:35:45)
Inspirations & Clients
- Inspirations (1:44:45)
- Oliver Carr, Jr.- Once a month meeting and he would get business (1:45:15)
- Chip Akridge- Took a chance with him (1:45:00)
- 1627 K St.- First deal
- 1015 15th St.
- Ben Jacobs
- Mel Lenkin
- Reference to Steve Lustgarten at Blake
- Sale of Psychiatric Hospital to JBG Co.
- Bob Kettler‘s first deal at American University
Personal Philosophies
- Life Priorities (1:50:30)
- Family
- Give back to Washington DC in a meaningful way
- Alzheimer’s Association
- YPO forum
- Wins, Losses and Surprising Events (1:54:00)
- Loss- Build To Suit Warehouse for Kane Company (1:54:30)
- Disappointment- Money people are taking advantage of him
- Partnered with Dave Pollin
- Debt structure is stressful
- Surprise- Sale to Insignia didn’t give him the management role he expected (1:59:00)
- IBM firing may have been one of the best things that ever happened (2:00:00)
- He never received his bonus and his old boss wrote him a check
- Advice to 25 yr. old self (2:02:00)
- Have done more in the education world
- Computer Learning for Dummies (2:03:00)
- Billboard Statement
- Go Back to Work, It’s Good for the Soul”
Postscript
- Rameez Munawar takeaways
- Believe in yourself and bet on oneself
- Surround oneself with the right people and mentors
- Confidence built at IBM though their sales programs
- Brokerage relationships and then management
- Wes Foster reference
- Cyclical nature of industry
- Economic climate today different including the work from home challenge
- Interesting time to predict what’s going to happen
- Major shift in value ahead
- Land value might drop
- Crime is also an issue
- Suburban office challenges
- CBD challenges
- Surprising to see large footprint office buildings with atriums
