The Developers
Gordon Group Holdings, LLC & Morgan Stanley Real Estate
Gordon Group Holdings - Changing The Face Of Retail Development
In the hands of this Greenwich, CT–based developer, shopping malls have been transformed. The pioneer of the entertainment retail concept, Gordon Group creates destinations that are about much more than just shopping.
Established in 1982 by Chairman Sheldon Gordon, Gordon Group is an extension of the Phillip Lyon Gordon Company, a partnership with E. Phillip Lyon that endured for 18 years. Under both monikers, the property developer is credited with changing the face of retail complexes. The best examples appear in Las Vegas (The Forum Shops at Caesars Palace), New York City (Bridgemarket), Los Angeles (The Beverly Center), and San Francisco (The San Francisco Center). In 2006, another project brought this concept to the Jersey Shore when The Pier Shops at Caesars opened in Atlantic City.
Similar to The Forum Shops, The Pier Shops at Caesars reflects the vision of Gordon Group in partnership with Caesars Entertainment. In 1992, when Las Vegas was a gamblers-only travel destination, Mr. Gordon was in town for a shopping center trade show. While meeting with former chairman of Caesars World, Henry Gluck, Mr. Gordon was presented with the challenge — what to do with an unused piece of land adjacent to the casino. His suggestion was to create a retail complex complete with entertainment. Mr. Gluck trusted his longtime friend’s instincts, but retailers and others in Las Vegas were skeptical, expressing conventional wisdom of the time: No one shops where they gamble. Mr. Gordon was convinced he was onto a winning proposition — so much so, he was willing to put his own assets on the line. The resulting Forum Shops at Caesars is the top producing retail center in the world, averaging volume sales of $1,300 per square foot.
While The Forum Shops at Caesars has become the new model in retail development, it is not the only example of Gordon Group’s innovative approach. Since 1972 with the development of The Pearlridge Mall in Hawaii, the company has created distinctive properties that prove that any physical obstacle can be overcome with a little inspired thinking. In the case of Pearlridge, a protected watercress farm sits between the mall’s two halves; to link them, the company installed the first-ever monorail system used in a shopping center. An eight-lane highway seemed an insurmountable challenge when building Vallco Park in Cupertino, CA; the solution was to build the merchandise bridge over the highway — something that had never been done before.
This understanding of each property’s location and its unique qualities has become the backbone of Gordon Group’s approach to every project.
Morgan Stanley Real Estate
Morgan Stanley is one of the largest global real estate investment managers with $94.4 billion of private real estate equity assets under management. Morgan Stanley’s primary objective is to provide clients superior investment performance and first-class service. To better serve our clients, Morgan Stanley has developed a full array of products and strategies to match their diverse investment needs.
Morgan Stanley Real Estate’s investing business has one of the largest client bases in the real estate investment management industry. Morgan Stanley Real Estate leverages the expertise, relationships and franchise of Morgan Stanley and has professionals strategically located around the world providing acquisition, finance and asset management services. Since 1991, Morgan Stanley Real Estate has been one of the most active real estate investors in the world acquiring $165.0 billion of assets globally, $52.4 billion in 2007 alone. Morgan Stanley Real Estate manages investments across the risk/return and geographic spectrums, including class A core buildings in major metropolitan areas, residential development properties, and real estate management and operating companies in emerging and developed markets. In 2007, Morgan Stanley Real Estate completed $37.0 billion of financing transactions and, as an active seller of real estate assets, completed dispositions totaling $13.7 billion. Morgan Stanley Real Estate also pursues mezzanine investments on behalf of clients via separate accounts.
Morgan Stanley is also one of the largest investment managers of publicly traded real estate equities with $21.0 billion of assets under management in both commingled funds and separate accounts. Morgan Stanley’s Institutional U.S. Real Estate fund has been one of the best performing real estate mutual funds since its inception in 1995, consistently outperforming its benchmark.