Episode 026: Norman Sturner and David Sturner

Introduction:


As part of the theme of today’s podcast my real estate brethren,
we are initially going to channel that 1970’s disco classic “We
Are Family,” a song which among other things helped inspire the
1979 Pittsburgh Pirates to be World Series champions that year.
Just as that ’79 Pirates team was a close knit family, the same
can be said of today’s dynamic duo, namely that of commercial
real estate owners and developers Norman Sturner, and his son
David Sturner, of Murray Hill Properties. Norman, the Co-Founder
and Chairman of MHP - which has acquired and sold more than 150
properties over the past 30 plus years - has been heard to say on
more than one occasion when conveying his passion for New York
City that it “is an island which cannot be moved anywhere nor
lose its value.” David Sturner is the President and CEO of MHP,
who among his many contributions to the growth of Murray Hill
Properties, oversaw the merger of MHP with the investment and
management firm Banyan Street Capital out of Miami, who together
now own and manage over 15 million square feet of property in the
eastern region of the United States.


 


On a personal note, I have known Norman and David for over 30
years, back to the days when I worked for MHP during the
Resolution Trust Corporation days. Back in the day, among the
myriad of services MHP provided, the most enjoyable and
satisfying was that of being turn-around specialists. We
essentially were a M*A*S*H unit, performing the equivalent of
real estate triage on the buildings which were included in
distressed mortgage portfolios that our clients - such as Lehman
Brothers and Lennar Partners - had purchased in such then
distressed areas of SoHo, TriBeCa and downtown Greenwich,
Connecticut.



Episode Notes:


At 3:03, David Sturner speaks about information being essential
in the real estate industry, and suggests that the more one has
at its disposal to analyze, the better the conclusion it can draw
up. At 3:43, David advises how MHP adds value to properties in
which they own, and also how they determine which investments
they make. At 4:37, David discusses beginning his career in the
construction business. At 6:35, Norman Sturner points out that
MHP’s focus is on adding value, but notes the current difficulty
due to competition and the influx of capital from overseas. At
8:08, Norman informs us of MHP’s recent partnership with Banyan
Street Capital. At 11:02, David shares growing up with a passion
for the real estate industry, as well as that of performing due
diligence. At 13:10, Norman touches upon giving back and making a
difference in the community. At 14:07, David makes known of his
gratitude to his father for the head start in which he provided.
At 16:55, Norman shares that 98% of the time MHP “buys bricks,”
as it is hard to find a cap rate that makes sense in the current
landscape. At 18:47, David highlights the culture at MHP, and the
importance of those who work at MHP. At 20:52, David defines risk
in the past versus that of risk today, and speaks of MHP’s
confidence in its due diligence. At 23:28, Norman revisits a
mistake MHP made in 2007/2008. At 26:51, Norman strongly believes
that everybody has to walk away from the negotiating table
feeling like they got something during a negotiation. At 28:16,
David advises that one should figure out their passion during the
early stages of its career, and once that passion is found,
pursue it. At 31:21, Norman touches upon why MHP believes that it
must always leave something on the table for its partners, as
well as leave some meat on the bone for a new buyer when selling
a property. At 32:33, Norman provides a few pointers for those
interviewing and pitching business. At 34:24, David and Norman
impart their thoughts on Amazon’s recent withdrawal from Long
Island City. At 36:47, Norman closes the podcast with a message
about Manhattan being an island at the center of the world.