HOW REAL ESTATE GOT REDEVELOPED
Cydney C. Donnell was a construction loan officer with Republic Bank, formerly headquartered in Texas. She moved to New York in 1986 to invest in REITs at European Investors Inc. with $100 million raised from wealthy European families. She now oversees $1.5 billion in real estate assets.
ON THE BIG SECULAR CHANGE
The secular changes in real estate are far more powerful than the cyclical recovery. This was an industry in the backwaters, run by deal-focused entrepreneurs. Now we have the advent of the superregionals such as Spieker Properties and supernationals like Sam Zell's Equity Residential and Rainwater's Crescent. They have great access to capital, economies of scale, and they serve the tenant. Private real estate guys will continue to sell out.
HOW SHE PLAYS THE SECTORS
Office space still has a long way to run. Retail is overdeveloped, but there is a big opportunity to restructure the country's malls. In apartments, we buy in no-development-in-my-backyard markets, like Georgetown, the Bay Area, and Connecticut.
JUST ONE REIT TO OWN?
Richard Rainwater's Crescent. He spots macro trends and bets on oil, health care, and real estate restructuring.
ONE LITTLE-KNOWN PLAY
FF Corp. of America, the biggest underwriter of fast-food restaurant leases. They have that business to themselves.
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