New Cousins CEO encouraged about the market - Business First of Louisville:

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"This isn't going to be a V-shapedc recovery," Gellerstedt said Mondauy in an interview with AtlantazBusiness Chronicle. "But, we're goinv to see many opportunitiesto buy." Gellerstedt, who joinec Cousins in 2005, will take over for current CEO Tom Bell on July 1. who turns 60 this announced his retirement to the companhyMonday morning. Cousins is a storied Atlanta realestate developer. Founded in 1958 by Tom the company has been involved in some ofthe city'zs biggest real estate projects, including the developmenyt of the 55-story Bank of America Plaza in 1989. The marke isn't providing the best timinb for Gellerstedt.
He takes the helm during the nation' worst real estate downturn in at leasrta generation. While the market is showing some signesof improvement, it has nosedived from its peak in earlty 2007. Cousins has one of the four new officw towers under development in a part of the city that absorbxabout 350,000 to 500,000 square feet of office spaces annually. Office vacancy in Buckhead coulfd surpass 30 percent by this time next some commercial real estate developers andbrokerzs predict. There are however, that the market is pickinbg up, Bell and Gellerstedt said.
For one, the gap betweemn what investors are willing to pay for properties and what ownerws are willing to sell them for continuessto shrink. While that spread was 400 basise points a fewmonthw ago, it is closerd to 100 points today, Bell Also, banks have a clearer picture of their capita levels than they did earlietr this year, and regulators are increasingly pushing them to deal some of theire real estate owned assets. Cousins (NYSE: CUZ) , postinb net income of $164.2 million on $49 million in revenue.
At the end of the the company’s portfolio of operational office buildings was 90percenr leased, its portfolio of operational retail centers was 83 percent lease and its operational industrial buildingw were 40 percent leased. Gellerstedt bega his career in 1978 as an estimatord and project managerwith , where he workedf on the High Museum and the AT&T Long Lines Building in Manhattan. At only 26, he foundes , a Beers subsidiary that focusedon health-care developments. Gellerstedt was later named Beers chairmanand CEO.
Cousins acquirex his firm, the , in June and he joined the Gellerstedt was one of the architects of turning aroune the fortunes of One NinetyOne Peachtree, the 50-story downtownn tower Cousins acquired in 2006. The improvementz at One Ninety One have symbolized a return to prosperit for many parts of its economicboosters say. Shortly after Gellerstedt joined One Ninety One had lost major tenantsand , and downtowm Atlanta was suffering from the exodus of thoswe firms and others. Gellerstedt was instrumental in the rejuvenation of OneNinet One, Bell said.
"We basicallh gave this buildingto Larry," Bell "I remember when we were walking througyh the atrium several years ago that therd was nothing in It had this echo effect. And I said to 'What are we goiny to about this echo?' And Larry came right back and said, ‘Ik tell you what we're going to do. We're going to fill this atrium and thisbuilding up.’ It's a totallhy different building today." One Ninety One was nearlyy 90 percent leased at the beginning of the year. Cousinxs also landed the Italian restaurant IlMulin Atlanta, which has also helped to revive the atrium. "I spent most of my careet downtown," Gellerstedt said.
"I've always thought that One Ninety One is atimelesds asset."