Article outlining Davidson Gill's services and approach to the current commercial real - featured in San Antonio Business Journal on April 16, 2010.

1. APRIL 16, 2010
Real estate firm plans to help lenders manage troubled assets
that his firm will take on the task of manag- Too good?
ing, repositioning and, if need be, ultimately According to the latest chain-store sales
selling the real estate on behalf of the lender. report by the New York-based Internation-
Game change al Council of Shopping Centers (ICSC),
Three years ago, forming a business with a retail sales nationally for the month of
focus on distressed real estate assets probably
would not have crossed Davdison’s mind.
But the game, he says, has changed. “We
are not in the same (real estate) environment
we were in 24 to 36 months ago,” he says.
“Things are radically different.”
Even down markets have their upside, says And while San Antonio has not been hit as
Marshall Davidson. hard as other markets so far, it too will take
True to that philosophy, Davidson has some blows on the commercial real estate
joined forces with Christoper Gill to create front, he adds.
Davidson Gill — a full-service commercial The current state of the real estate market
real estate brokerage, management and coun- requires that firms be flexible and nimble to
seling firm. respond to the changes in the industry.
Davidson Gill is seeking to tap into a niche That is why Davidson Gill is also market-
CATHERINE DOMINGUEZ / SAN ANTONIO BUSINESS JOURNAL
that is likely to keep them busy for quarters to ing its brokerage services. Indeed, even in
Marshall Davidson says new venture David-
come: Distressed real estate. these tough economic times, some companies
son Gill is about finding opportunities in a
The firm brings together Davidson’s back- are still growing — and thus still have opera- challenging market.
ground as a transaction specialist with the tional requirements.
financial acumen of his father-in-law Gill — Case in point is a medical user that David- March were up 9 percent, compared to
who has more than 40 years of experience in son recently represented. The company inked March 2009 figures. The figure marks the
such industries as real estate, finance, oil and a lease for 10,000 square feet in what is cur- strongest retail sales increase since March
gas and manufacturing. rently a 14,000-square-foot, vacant retail site 1999 — when sales improved 9.3 percent on
The banking background of the firm is along Loop 410 and Blanco Road in North a year-over-year basis.
significant given its focus on helping lenders Central San Antonio. While the sales increase is good news,
come up with a plan of action for troubled Davidson declined to divulge the name of ICSC is also quick to point out that the recent
real estate. the tenant, citing confidentiality agreements. figures have been “inflated” by the date on
While San Antonio has not seen the deluge He does add, however, that it is a physican which Easter fell this year.
of distressed real estate holdings that other group — one that is new to San Antonio, and “March sales posted a healthy, albeit inflat-
markets have in the last two-plus years, it is one that is opting to keep a low profile until ed increase,” notes Michael P. Niemira, chief
inevitable that San Antonio will see a grow- its opening date is a little closer. economist and director of research for ICSC.
ing number of troubled assets come to mar- Bryan Ottmers, a partner in locally based “The earlier Easter, April 4, 2010, versus
ket, says Davidson. Rohde Ottmers Siegel Commercial & Invest- April 12, 2009, was a boon to March sales,
Many borrowers and lenders have put ment Realtors, represented the owner on the worth an estimated 4 to 5 percentage points
off the so-called day of reckoning thus far, lease. in terms of year-over-year growth.
Davidson continues. But there will come a The lease is representative of some new “While this calendar shift certainly
time when many lenders will have to make tactics that firms are taking when it comes to helped to aggrandize sales, the month’s
the tough choices when it comes to cash- their space needs, says Davidson. With con- performance was still very strong,...”
strapped borrowers — which could mean tak- struction loans harder to come by, many firms Niemira concludes.
ing ownership of loan collateral. are opting to lease vacant existing buildings
And that is where Davidson Gill can add to build out to their own specifications, rather TRICIA LYNN SILVA’s Real Estate Round-
some value. than purchase outright. up column appears weekly. Silva can be
“We can act as, or augment, the real estate “There is a real need to be flexible in this reached via e-mail at tsilva@bizjournals.
arm for these lenders,” says Davidson, adding marketplace,” says Davidson. com, or by phone at 210-477-0849.
Reprinted for web use with permission from the San Antonio Business Journal. ©2010, all rights reserved.
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