And it will be the last company that steps up to the plate for this space if Staff has anything to do with it. It will be the last if Paul Snitkin of Anderson and Carr has anything to do with it. You see, Johnny Longboats called him about leasing in the Casino, not the other way around. The real estate broker did not have to do one thing to earn this big commission. He admitted that he didn't even have to advertise; it was basically word of mouth.
Here we are, having to have some defined tenants by September at the latest so that Morganti can start planning the build-out. Last minute stuff is typical so why am I surprised? I am though because I always expect someone to do the job that we hired them to do. In a way Snitkin did perform; a possible tenant found him.
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The broker concentrated on local and regional tenants per the RFP and I would make a bet that there are plenty on that list who NEVER HEARD OF HIM. Just a gut feeling. What ever happened to national chains? If things were so difficult for this guy, why did he not get permission and concentrate on big corporations or at least make some phone calls? We talked about that several months ago and the Commission did not object if it were going to be difficult to find a local tenant. He might have had to split the commission if he found a national chain because most of them have or use their own exclusive real estate firm for all their developments.
The Mayor wanted fairness and worried about the fact that some of the possible clients might not have been "pitched." Commissioner Maxwell even said that he agreed with Waterman and was not prepared to make a decision.
What happened as they kicked the can down the road during the two hour meeting? As one resident put it, it was "a la Retha Lowe all over again." Objections and concerns by Waterman and Maxwell (particularly that they had NO other restaurants from which to choose) were plenty and all highly legitimate, were all at the end, discarded by them.
Nothing was said or asked about Anderson and Carr working on finding any other signature tenant. What happens if this one strikes out at the plate? Snitkin didn't have to present any back-up of his work, his contacts, his follow-up, the comments, anything. The Commission was backed into a corner and the only thing left to do was to bunt. And let's get the Dodgers back in Brooklyn.
22 comments:
Mr. Snitkin, while a good broker is not a leasing specialist. Did anyone ask him his experience in retail leasing as compared to oh lets see a dozen other firms that specialize in this type of leasing and work daily with high quality bankable tenants whether they are local, regional or national. It takes many years to establish those contacts. From what I see he mainly has been involved with general commercial sales and dabbles in leasing.
That said a broker earns his commission whether a tenant comes to him or vice versa. There should be a list of 100 prospects that at least 50% would submit LOI's and compete for this project. Then again submitting an LOI is maybe 10% of the work and negotiations that go into a Retail Lease. Also the City should have a very set build out plan and the Tenant takes it as is after that and has X amount of days after delivery of the premises to complete build out and open for business. If this is not specific and adhered to these tenant build outs and last minute negotiations will taint this project.
Good luck to us all for a successful and viable project. We will need it!
A WPB real estate firm was hired first, that specializes in leasing retail space. I believe they walked away from the job when LW said that they wouldn't have an exclusive listing.
Any real estate agent worth their salt would have walked out. A LOT of work goes into soliciting clients and the last thing you would want is for numerous agents to go after the same client. It just does not work that way.
So there LW did have a very professional and successful firm to find tenants....but LW made it impossible for them to work for us.
Now come the complaints about the agent who was willing to work on this....
Please correct me if I've not got all the facts about this...
But if I've got them straight, how can LW possibly complain about both scenarios?
It was never more obvious to me that Susan Stanton runs the show in Lake Worth. She gave the commission every which way to approve the letters of intent. And after all the rangling by Golden, Waterman and even Maxwell,about the lack of vetting, they all lock stepped with the city manager. No one wants to vote no on anything to do with the casino at election time. Even Maxwell went so much as to change his vote for Longboats with an amended vote.As far as national chains go it was determined a while ago that there would be none.
I answered this on some other blog the other day-
The first firm failed to communicate. They were not interested in co-oprating with other brokers. They did not answer phone calls or e-mails and totally ignored the City...thus the change. It was not Lake Worth's fault at all.
P.M.M.--It was always the commission's desire to have small boutiques and local or regional restaurants in the Casino. They never, said, however, that national chains were out of the equation when all was said and done.
I am disappointed that we won't have more to choose from and our tenant base is now reduced to five stores that include 2 restaurants, the anchor slot and NY Pizza. I would have liked to have seen another Lorraine's Treasure Chest there and another store like Dot Pickett's for women. I would have liked to have seen fine dining on the 2nd level of our casino. Instead, it will cater to an entirely different clientele.
Watch them put in a kava bar next.
How exactly did Andercon Carr and Mr. "I am so Great!" Snitkin get involved in this project any way? I kept hearing that no one responded to the RFPs, but then suddenly we have Snitkin the Magnificent. Oh, that's right he was recommended by REG.
Can SOMEONE please ask to see the proof that SNIT did SHI#?Can we see the businesses that he supposidly contacted? Snit and Stanton both smell more fishy than a Tuna boat !!SCREWED AGAIN !THANKS FOR NOTHING,JELLYFISH COMMISSION!!!!
Anderson & Carr has been around for over 60 years and has an excellent reputation as commercial brokers. Anonymous above, can you provide a link to any Minutes that suggest that REG recommended them? Thanks.
This Snit should have come to the city and told them he was having trouble finding someone locally. then he should have put out and announcement somehow on a national level and advertised. He did not serve the city.
Again it goes back to experience. None of our commissioners has the experience of leasing a large commercial space. They need to rely on others. They are given one name and told it's good. So they take it. This property has a great deal of value and it needed to be marketed to everyone out there to get the best deal for the city. I can't believe that only one large restaurant was interested in this space. Sounds bad and probably is.
You really need somebody who knows what they are doing to oversee anything.
Didn't this tenant say he went looking for the broker? So, what seems to have happened is that the real estate agent didn't have any existing tenants that were interested, so he took the first tenant that came through the door.
The Rent of $25 per sq ft seems very low, but there may be other mitigating factors: high common area maintenance charges; short term of lease; low base for per centage rent; status of building at delivery to tenant; limited hours of operation. As none of these questions were asked, it is hard to say if the rent was appropriate, high or low.
Well we have tenants for substantially all of the space so we can get out from under the requirement of funding it ourselves and get a loan.
The parking lot and green areas can always have the costs reduced before contracts are signed.
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Next step is get back on the construction schedule. We seem to be about 2 weeks behind.
Are there any commercial leasing agents living in Lake Worth? How was Anderson & Carr selected to represent the City on this project? when was their selection submitted to the Commission and approved?
On March 1, 2011, the commission terminated the contract with WG Compass Realty. It then went out on an RFP. Staff then determined the best and voila, Anderson & Carr.
Actually Lynn, REG recommended A&C when the 2nd RFP was answered only by a person who offered to do it part time. Only in evenings if memory serves
That is what all the IG to do is all about. The building inspector from West Palm Beach was recommended by REG. Evidently REG recommended them to Stanton after working with them on the project REG had so much cost overruns on.
What 2nd RFP? Compass Realty did not go out on an RFP--it was picked by the CM. Was it not?
Anderson & Carr have been around for a very long time as appraisers. Occasionally they have have agents like Snitkin who handle sales and/or leasing. That can make a tricky situation as appraisers in the same office as broker can create a conflict of interest. Or at least appear to create a conflict. One does not want their appraisal company also vying for a listing to sell or lease on the same property being appraised. Just is not a comfy situation. Do you get a low appraisal and a broker has an easy sale within the same firm. I am not accusing but those two real estate services should be separate in my opinion and by unrelated firms.
Lynn, you are correct. Stanton picked Compass after the first RFQ had no responses. After Compass resigned, the second RFQ had only 1 response, the part time offer. Stanton then took REQ's recommendation of Anderson and Carr.
One thing about this, Compass did NOT resign--they were terminated. I have asked Ms. Stanton to respond. If I get a reply, will post. Thanks.
The BCE terminated Compass because they did not want national chains.
You sure do like to argue. The BCE terminated Compass for exactly the reasons I have stated. True, they wanted local/regional tenants in the Casino.
As promised--the explanation from the city manager:
Not sure who REQ is …. But this is what happened. We did not get any response to our second effort to find a commercial agent the second time out. Anderson Carr did say they would be submitting and …their proposal never got to the City. So, like the first time, we called up firms we had spoken to who said they were interested ..and asked if they did not submit for any reason. Paul said he was interested, had developed a letter of interest in response to the proposal….but it was never dropped off. So, since we had no response from anyone, we called him in the office and he was very passionate about the project. His credentials were presented to the Commission with my recommendation for selection ….and after an interview, he was hired by the City Commission.
Susan A. Stanton, ICMA--CM
City Manager
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