Home Back Issues January 2013 The real deal: Jordan Schnitzer's strategy

The real deal: Jordan Schnitzer's strategy

| Print |  Email
Articles - January 2013
Monday, December 10, 2012
Article Index
The real deal: Jordan Schnitzer's strategy
Page 2

 

Harsch Investment Properties
President: Jordan D. Schnitzer
Founded: 1950
Headquarters: Portland
Employees: 220
Fact: 20 million square feet under management

Strong relationships with banks have been another stabilizing force. “The banks know I’m there,” says Schnitzer, who refinances about $500 million worth of property annually. “We’re very honest, transparent and open.”

About that blocking and tackling: When the housing collapse hit, regional managers were empowered to give “more specials, free rent, more tenant-improvement dollars — anything to get the space full,” Schnitzer says. In 2011 he sold a signature property, the Alameda Towne Centre in the Bay Area, for $181 million. Harsch had purchased the shopping center in 1979 for $13 million, then invested another $75 million in upgrades in 2002. The sale helped Harsch maintain cash flow and pay off short-term debt, says Schnitzer, who also has written down tens of millions of dollars in internal asset values.

The past few years have been tough personally as well as professionally, says Schnitzer, who divorced a few years ago and recently lost his father. Along with the economic downturn, these family trials may help explain why such a powerful and admired member of Oregon’s business community seems a bit equivocal about the future. On the one hand, occupancy rates are up in a couple of cities, and this past October, Harsch made its first postrecession acquisition: an 18,000-square-foot warehouse in Sacramento purchased for $875,000. “We’re doing our best to lead the market up,” says Schnitzer, who recently instituted a program to raise rents by a penny per square foot, an increase that would generate an additional $200,000.

On the other hand, despite the positive indicators, Schnitzer says one big issue still haunts him: the idea that “this was not just another recession” and that the real-estate market may not return to “normal.” In the civic arena, meeting a fundraising goal is cause for celebration, says Schnitzer, who has served on more than 30 boards and, this year, received the 2012 Simon Benson Award for philanthropy. But the business world — you guessed it — requires a little more humility.

“The best deal you’ve done,” Schnitzer says, “is always the next one.”



 

More Articles

The Scott Kveton affair

News
Wednesday, July 09, 2014
ScottKvetonBY LINDA BAKER | OB EDITOR

Scott Kveton, the CEO of Urban Airship is taking a leave of absence from the company. As the story continues to unfold, here’s our perspective on a few of the key players.


Read more...

Q&A: David Lively of Organically Grown Co.

News
Tuesday, July 01, 2014
OGCLogoBY HANNAH WALLACE | OB BLOGGER

Demand for organic food continues to soar: Last year, sales of organic food rose to $32.3 billion — up 10% from 2012. In Oregon, organic produce wholesaler Organically Grown Co. has been championing organic growing methods for four decades.


Read more...

Updated: Disrupting innovation

News
Tuesday, July 08, 2014
070814 thumb disputive-innovationBY LINDA BAKER  | OB EDITOR

The New Yorker recently published a sharply worded critique of “disruptive innovation,” one of the most widely cited theories in the business world today. The article raises questions about the descriptive value of disruption and innovation  — whether the terms are mere buzzwords or actually explain today's extraordinarily complex and fast changing business environment. 

Update: We caught up with Portland's Thomas Thurston, who shared his data driven take on the disruption controversy.


Read more...

OB Video: Oregon MESA

News
Thursday, June 26, 2014

ThumbOregon Business hosts an informal roundtable discussion about the Oregon MESA (Mathematics, Engineering, Science Achievement) program.


Read more...

Green Endeavor cleans up

News
Wednesday, August 06, 2014
080614 ULnew greenendeavorBY LINDA BAKER | OB EDITOR

Portland startup Green Endeavor strikes gold, inking a partnership with Underwriters Laboratories, an Illinois-based consulting and certification company with offices in 46 countries.


Read more...

Is this employee right?

Contributed Blogs
Wednesday, August 13, 2014
081314 thumb employeefeelingsBY TOM COX | OB BLOGGER

When I say, “Your Employee is Always Right,” I do not mean “right about the facts,” but rather “right about how they feel” and “right about how they want to be led.”


Read more...

South Waterfront's revenge

News
Thursday, July 24, 2014
MoodyAveBY LINDA BAKER | OB EDITOR

Remember the naysayers?  Those who called the South Waterfront aerial tram a boondoggle?  Those who rejoiced at the massive sell off of luxury condos at the John Ross and Atwater Place?


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS