Leadership Roundtable: the real estate industry & the CRE organization.

As my reputation grew as an expert witness, the attorney general's office requested offices of the Highway Department to engage my services for cases in many parts of the state. More and more I was asked to involve myself in reviewing the other appraisals and advise the attorneys about weaknesses and errors in them. I was also asked to help prepare other witnesses to testify. Through that process, I become more of a consultant than an appraiser, although I was very careful to remain objective in performing my appraisals.

PASQUARELLA: For my firm, developmental approval processes in many municipalities are becoming more cumbersome, more expensive and very, very time consuming. There's more study required, and in some respects, of course, I understand. Interestingly, that ties back to what I said in talking about going green. These days we often ask, "Can we add amenities--such as retail or a hotel, or both, on an office complex site--to make it more attractive in today's environment?" If I can't get the threesome of live, work and play, can I get two of the three? That still sets my project apart from the projects competing with me and fits in with the green movement.

COCHRAN: How do you see CRE helping its members meet today's challenges?

SCHWETHELM: There is a great opportunity for Counselors in eminent domain. I sincerely believe that attorneys should be engaging Counselors solely for the purpose of providing consulting services instead of using the appraisers who appear as witnesses. I do not contend that appraisers necessarily become advocates by providing these ancillary services, but there is that appearance to judges, juries and commissioners.

I believe the CRE organization should make a concerted effort to illustrate the importance of these services on a very frequent basis. This can be done through our members who specialize in eminent domain and Counselors who are also attorneys. When appropriate, Counselors can assist the attorney in helping the client understand the case, the likelihood of prevailing and the probable range of compensation, which can result in the settlement of cases at considerable savings. When settlement is not accomplished, the services Counselors provide can assist in trial preparation and during trial.

PASQUARELLA: To some degree, I see the CRE organization helping its members just as it has in the past. There is tremendous value and high gain to be had from simply associating with the best people working in our business, and CRE provides many networking opportunities, both formal and casual.

In my 16 years as a Counselor, the professional makeup of the CRE membership has become more diverse, as has the real estate industry in general. Years ago, the real estate community was made up of lenders, appraisers and brokers. Today, you have all sorts of specialty groups, and we have Wall Street involved in real estate in a big way. CRE includes developers, investment fund managers such as myself, tenant specialists, consultants, investment consultants, etc. It's a very broad membership base, which I think is fabulous. The skill set of the organization has expanded to meet today's needs very, very well.

HANSON: I believe the CRE organization can best help its members through education. The whole concept is that we're an organization of professionals, that we and our fellow CREs are leading-edge thinkers and will bring best practices to one another's discussions. That, in summary, is why I like CRE. I like going to meetings and conventions, and networking in general, because I think the people here are incredibly smart and the conversations you have make the difference.

About the Roundtable Participants

Richard A. Hanson, CRE, is principal of Mesa Development, LLC, a Chicago-based national real estate developer and investor committed to developing significant residential and mixed-use developments in major cities and urban areas. His work is grounded by his belief in creating architecturally stunning urban settings located near civic and cultural centers, allowing individuals greater opportunity to contribute to society and enhance their lives.

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A.C. Schwethelm, CRE, is president of A.C. Schwethelm Associates, Inc., of Comfort, Texas, a firm which specializes in counseling government entities and others on litigation strategy, eminent domain and taxes. Schwethelm is retained by state agencies, city and county governments, and attorneys for property owners for his appraisal expertise. Schwethelm is a past recipient of CRE's highest honor, the Landauer/White Award, which is presented annually to an individual who has furthered the ideals of The Counselors of Real Estate organization, who has advanced the position of the "CRE" designation and who has demonstrated outstanding professionalism in real estate.

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Arthur P. Pasquarella, CRE, is a principal and chief operating officer of Philadelphia, Pa.-based BPG Properties, Ltd., a private equity value-added fund manager directly operating a diversified national property portfolio. Pasquarella oversees all of the firm's real estate investment and property activities. He holds a master's degree in real estate and investment analysis from the University of Wisconsin-Madison and a bachelor's degree in finance from The Pennsylvania State University.

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