Bio
Stephen F. Lustgarten is the Chief Executive Officer of Blake Real Estate, Inc. (www.blakereal.com)
Stephen joined Blake Real Estate right out of college in 1971. With approximately 47 years of professional experience in leasing, development, property management, and construction, he is responsible for consummating in excess of $5 billion in commercial lease, purchase and sale transactions and has negotiated numerous construction and permanent loans and joint ventures on behalf of Blake Real Estate, Inc. Stephen has acquired, developed, constructed, renovated and/or sold land, office buildings, hotels, and shopping centers, mobile home parks, and manages the portfolio of various real estate partnerships valued in excess of $1 Billion . He also supervises the day-to-day operations of the company. He is a co-founder and Executive Vice President of Superior Building Services, Inc., a multi-disciplined company that performs commercial construction, commercial contract cleaning, plumbing, and heating/air conditioning services.
His years of experience and historical knowledge make Stephen a valuable member of the Blake organization. He feels his passion for excellence and leadership/management skills help to motivate team leaders and members of our various operating businesses. Stephen recognizes that the company’s most valuable asset is the firm’s employees and as such strives to foster a supportive, collegial work environment.
Shownotes
For Episode #2 my guest, Steve Lustgarten, is among the most knowledgeable people I have met in the commercial real estate industry. He is a voracious compiler of nuanced market information and has a phenomenal memory for details. We have known each other for over 25 years which began when I helped him refinance three of Blake’s “core portfolio” buildings at 1800 G St., NW, 2100 K St. NW, and 1150 Connecticut Ave. NW. We discuss Steve’s early life in New York raised by his widowed mother in a “tough” neighborhood in the Bronx, his coming to George Washington U. as a student in the late 1960s and his finding his passion in commercial real estate by joining Blake while finishing his degree at GWU in 1971. Here are a few highlights of our conversation:
- His early career as a leasing agent at Blake where he was given a “10 minute training program” which was: “Here’s a phone, a list of vacant space and all the paper and pencils you need. Let us know when you find an interested user.” (11:10)
- He describes his system for managing his contacts and how he learned about and compiled leasing strategies and client service (14:10)
- Blake Construction (Blake Real Estate’s predecessor) and its leadership in the DC area general contracting business in the 1960s, 1970s and 1980s. Built many significant buildings in DC (Walter Reed Hospital, FBI Headquarters, Forrestal Building, etc.) (“Above Washington”) (22:38)
- Evolution of Blake from a major construction company into a vertically integrated real estate company beginning in the early 1980s finally consummating with its official change in 1997. (27:00)
- Philosophical change from “construction” mentality in client relations to “real estate” customer oriented relationships driven by “concierge” movement in tenant relationships (35:30) (45:10)
- Steve talks about two of his mentors, Stanley Bender (the eldest of three brothers that owned Blake) and Robert H. (Bob) Smith of the Charles E. Smith Co. (now JBG Smith) and the relationships among the Benders and the Smiths in investments and philanthropy (38:38)
- Describes Blake’s relationship with the American Banker’s Association since 1970. (45:44)
- Addressing the question about hospitality in the office building business, Steve suggests that: “The secret is speed to address problems for tenants as quickly as if they were a hotel guest.” Blake has asked Ritz Carlton to provide training to their management staff. (55:50)
- Bender family (and partners) philosophy of holding and not selling core portfolio. (1:00:00)
- Story about 425 Eye St. NW acquisition (1:04:00)
- Unsecured debt fueled deal activity in the 1980s that were not core deals, but offered Blake the opportunity to expand its portfolio and services. This changed with the 1990-91 crash that caused Steve to lose 50 lbs. due to stress (1:11:12)
- Steve shares is personal philosophy about hiring people (1:14:45)
- Story about customer service with a misunderstanding and keeping his word (1:16:17)
- Story expanding on 425 Eye St. NW purchase being the most surprising and perhaps amazing financing story about a closing (1:19:43)
- Steve’s commitment to philanthropy via the American Heart Association (1:25:50)
- His answer to the “billboard” question (1:28:48)
Links
More information about Blake Real Estate and how to reach Steve:
Corporate Website: www.blakereal.com
Corporate LinkedIn Page: https://www.linkedin.com/company/blake-real-estate-inc/
Steve’s Contact: Through his Assistant, Rachel Haywood (rhaywood@blakereal.com)
