Commercial Property Executive February 2011 : Page 24

Feature ing existing space in an adjacent building, Regeneron saved another $14 Concerned that the project’s contractor had inadequate bonding ca-million in capital costs. pacity, Studley recommended that Time Warner ask construction man-On his way to a brokerage career, Colacino took a somewhat roundabout ager Bovis Lend Lease to step into the general contractor’s role. Bovis route. After earning his degree from Harvard in 1981, he made stops at carried out the project on budget and on schedule. Environmental Research and Development and then its real estate software Colacino’s persuasiveness and ability to grasp multiple sides of an issue spinoff, Resource Dynamics, where he rose to become its president. He then came to the fore in the meetings among the project’s high-powered play-continued to pursue his interest in real estate in 1989 when he joined De-ers, often taking the discussions in an unexpected direction. “We’d be sign Technologies Inc., a Manhattan-based consulting firm. As a principal, arguing with Related to try to convince them to do something,” recalled he advised commercial real estate clients on strategy, programming studies, T.J. Gottesdiener of Skidmore, Owings & Merrill, the project’s architect. relocation plans, occupancy cost evaluations and management systems. “By the time the conversation was over, he’d be arguing for us, instead In 1989, he was recruited to Studley to work with Ira Schuman, one of for the developer.” of the firm’s top brokers. Colacino advised clients on strategic and con-As Time Warner Center moved toward completion, Studley was ap-sulting issues and learned the brokerage ropes. He eventually teamed proaching its own milestone. After half a century at the helm, Julien with Mitchell Steir, now Studley’s chairman, and Matt Barlow, now an Studley had decided to step down. A 45-member group of brokers and executive vice president, to form one of New York City’s most prolific managers completed a buyout in December 2002. leasing teams. Time Warner Center was a hard act for any-In the mid-1990s, a consulting contract one to follow, yet in the years following his ap-morphed into a career-making involve-“Our tenant rep brokers pointment as president, Colacino balanced ex-ment with one of the era’s landmark proj-ecutive responsibilities with regular high-profile have become mini-invest-ects. Time Warner had asked Studley to dealmaking. He had already built up a strong ment bankers. We’re help develop a long-range plan for its New following among New York City’s white-shoe York City portfolio. That plan eventually law firms, such as Cadwalader, Wickersham & now required to under-took the epic shape of Time Warner Cen-Taft L.L.P., New York City’s oldest law firm, stand CMBS ... REITs ter, the 2.8 million-square-foot mixed-use whose roots extend back to 1792. In early 2003, (and) ... special servicing.” complex on Manhattan’s Upper West Side. Cadwalader’s partners decided to sell its head-As anchor tenant, the media giant occupies quarters building, located at 100 Maiden Lane a 1 million-square-foot office condominium, in Downtown Manhattan. part of a two-tower complex across from Central Park that includes ho-Studley found a suitable space for Cadwalader at One World Finan-tel, residential and retail components. cial Center, a 1.7 million-square-foot trophy tower near the World From 1998 through the project’s grand opening in Feb. 2004, Colacino Trade Center site. At the time, Lehman Brothers occupied the space, had a hand in dealing with myriad knotty challenges: negotiating the ac-so Colacino led complex negotiations among Lehman, Cadwalader and quisition of the site; structuring the complex deal between Time Warner the property’s owner, Brookfield Financial Properties. and project developer The Related Cos.; securing construction financ-Lehman ultimately ended its lease early, allowing Cadwalader and ing; handling issues with the city government; and preparing the build-Studley to negotiate directly with Brookfield. Studley arranged a ing for occupancy by Time Warner. Among many other duties, Colacino 520,000-square-foot lease at below-market rates, plus options for more adroitly handled the interchange between his client and Related and its than 300,000 square feet of expansions. Significant as it was in its own partner, Apollo Real Estate Advisors, recalled Stephen Lefkowitz, the right, the Cadwalader lease had a resonance that extended beyond the Fried Frank partner who served as Time Warner’s attorney. “Mediating real estate and legal worlds: In the years immediately following the Sept. between the needs of these two parties, fulfilling (and where necessary) 11, 2001, terrorist attacks, it was the largest lease in the area around the adjusting their expectations, and resolving differences where their inter-World Trade Center. ests diverged was a role that Michael played throughout the lengthy de-Along with the many other hats he wears, colleagues say that Co-velopment process with poise and determination,” recounted Lefkowitz, lacino enjoys his role as a mentor to junior and senior colleagues alike. who spent thousands of hours working closely with Colacino. “His door is always open, whether it’s personal or professional,” said Colacino, together with Steir and Barlow, influenced the project’s di-Barlow. “There’s a feeling (that) if you ever need to talk to him, he’s rection on multiple fronts. By helping to bring Time Warner on board as available,” even though, as Barlow notes, “he’s 20 times busier than the anchor tenant, Colacino contributed to The Related Cos.’ selection you’ll ever be.” by New York City as developer of the parcel then occupied by the New Colacino sees part of his responsibility as preparing the next genera-York Coliseum. The team arranged low-cost, short-term debt for Time tion for the time that the current ownership passes the baton. That day Warner, and helped to draw up a development agreement that protected is likely still far off, but for the science-fiction enthusiast in Colacino, the media company against possible cost overruns. thinking a decade or two ahead is all in a day’s work. 24 February 2011 | Commercial Property Executive

Previous Page  Next Page


Publication List
Using a screen reader? Click Here