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Doug Shorenstein

If you look at real estate as just a financial tool, you're going to get hurt.

By Katie Hinderer | Updated on November 17, 2006

In August, Shorenstein Properties LLC closed its Fund Eight. It took the company less than four months to raise the targeted $1.1 billion, with the Shorenstein family contributing $100 million. In fact, subscriptions were received for more than the targeted number, but the fund remained at $1 billion because that was the number company directors felt comfortable investing in the current market. Already, the fund is investing but given Shorenstein’s activities on both the buy and sell sides, CEO Doug Shorenstein doesn’t see the firm’s total portfolio fluctuating beyond much from the current 15 million sf on which he currently sits. “In today’s day and age, funds will announce they’re going to raise $750 million, and that means $1.2 billion,” says Shorenstein “There’s just no discipline. It’s more a game of how much you can raise and get invested quickly so you can raise bigger funds, investing as little of your own money as possible.” Shorenstein sat down with GlobeSt.com recently to discuss Fund Eight and his ongoing faith in fundamentals.

GlobeSt.com: Where are you in terms of investing Fund Eight?

Shorenstein: We actually have two properties under contract. Fund Eight really is just a follow-up of Seven and a continuation of what we’ve done in the past. The strategy hasn’t changed; the investors haven’t changed; and the amount of money we invest, proportionally, is about the same.

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