Kanbar Properties

[johrasephoenix]

Can anyone tell me what the deal is with Kanbar Properties?  From what I understand its a California investor who bought at the height of the real estate bubble as a speculator and got hammered.  He has put $0 into his properties, which includes huge chunks of downtown, and apparently accounts for 57% of all office vacancy in the CBD.

Was there ever an idea about putting money into these properties and turning them into something useful?  I think what we're seeing with other developments downtown shows that you can fill a good project with tenants pretty easily.  Was he just a straight speculator banking on the rise of downtown and cashing in down the road? 

Just trying to find out if he is just an incompetent landlord or should be loathed as a parasite.

[Gaspar]

Can anyone tell me what the deal is with Kanbar Properties?  From what I understand its a California investor who bought at the height of the real estate bubble as a speculator and got hammered.  He has put $0 into his properties, which includes huge chunks of downtown, and apparently accounts for 57% of all office vacancy in the CBD.

Was there ever an idea about putting money into these properties and turning them into something useful?  I think what we're seeing with other developments downtown shows that you can fill a good project with tenants pretty easily.  Was he just a straight speculator banking on the rise of downtown and cashing in down the road?  

Just trying to find out if he is just an incompetent landlord or should be loathed as a parasite.

http://en.wikipedia.org/wiki/Maurice_Kanbar
The properties in question were purchased as a tax shelter.  Doubtful they will ever be sold.  To my knowledge they are still tied up in legal issues between Kanbar, Koffman, and the Snyder family (though I don't know what that involvement is).  I believe Kanbar and Koffman were an item before they had a falling out.

[heironymouspasparagus]

http://en.wikipedia.org/wiki/Maurice_Kanbar
The properties in question were purchased as a tax shelter.  Doubtful they will ever be sold.  To my knowledge they are still tied up in legal issues between Kanbar, Koffman, and the Snyder family (though I don't know what that involvement is).  I believe Kanbar and Koffman were an item before they had a falling out.

Looks like a serious "overachiever"....

Sounds like it would be fun to live in your own 8 story tower building in Pacific Heights (San Francisco) area!

[Conan71]

 I believe Kanbar and Koffman were an item before they had a falling out.

So I guess that answers the question that he was not a "straight" speculator.

[sgrizzle]

Kanbar bought the properties at the suggestion of local business partner Kaufman, who dropped out shortly after the acquisition. This left Kanbar holding the bag so to speak. He created a local property management company and brought in security to maintain and secure his properties. He has sold a few and made some light stabs at development, but financing to redevelop downtown properties is near-impossible to come by. He would have to invest more straight cash in to projects he only intended to be an investor in.

Now two local brothers have partnered with Kanbar to invigorate things. They have spent $8M in improvements so far and raised their occupancy rate by 20%
http://www.tulsaworld.com/business/realestate/downtown-development-price-brothers-make-progress-with-kanbar-portfolio/article_d6b19fab-f832-5475-9126-92684f6cac6f.html?_dc=651175410486.7578


So I believe he is neither incompetent nor parasite.

[TheArtist]

I was in the city permit center about a month ago and ran into Price and some of his people.  They said that work should be getting underway this fall or winter on the first loft/retail project in the TransOk building. Then I believe the plan is such that once say the sheet rockers are done with that building they would then move right into the Pythian, then on to the Adams building.  Each succeeding construction crew would finish at the first building then move on to the next. 

[LandArchPoke]

Digging this up from the grave a bit...

I saw on Costar that they are planning on turning Philcade into residential as well. Anyone heard about this?

Kanbar Properties attributed to about 65% of all downtown vacancy. They really need to get their act together, and either lease the properties (there's plenty of demand) or they need to start converting to residential. They are really holding back downtown from any new office construction which is desperately needed. They is essentially 0% vacancy in Class A space (if you don't count First Place Tower as Class A).

Fun fact. About 5 years ago the vacancy in their portfolio was about 30%, it now stands around 70%...

[TheArtist]

Rumor on the street is that everything is on ice and they may be selling or trying to sell the portfolio.