In this new series, we ask industry leaders in the CRE market how they entered the business and what they have learned along the way.
Bob Sonnenblick has more than 30 years of experience across multiple facets of CRE. Over the course of his career, he has personally structured the financing for notable projects including the Beaudry Center in Los Angeles, the Ritz‑Carlton Pasadena, Calif., One Waterfront Plaza in Honolulu and the Los Angeles World Trade Center. As chairman of Sonnenblick Development, he leads the development of major office, retail and hotel projects across the U.S. He will be a speaker at The Crittenden Report Finance Conference in May.
How did you get your start in CRE finance?
My family has been in CRE since 1893. This is our 133rd year in business. I am the fourth-generation chairman of our family office, so I grew up in the industry and joined our company right out of college.
What types of deals are you focused on right now?
Today, we are concentrating on developing waterfront hotel projects in California and Florida. The projects are about $200M each. There is a limited amount of beachfront left in the entire U.S., and hotel guests pay a premium for those rooms with water-front views.
What do you enjoy most about working in this business?
My favorite thing about being a real estate developer is taking a vacant piece of land and designing and master-planning the entire project in my head. I close my eyes and envision what it’s going to look like. It’s extra special to me once it is finally completed.
What are you watching most closely in the year ahead?
I am focused on the attempted conversions of older office buildings into new residential buildings. That is a much more difficult task than most people believe. I am not sure it is going to turn out as profitable as many people in our industry have predicted.
What is the best advice you have received in your career?
Without question, the best advice came from my father. He told me that having a good foundation in finance was the key to success in all forms of real estate. I followed that advice, and I credit my success in real estate to his good advice.
