Nevadan at Work: Real estate executive moves properties, solves problems

Tom Naseef watches a steady lunch crowd stream into the Sourdough Eatery at Mammoth Commercial Center in Henderson, a 75,000-square-foot office and retail development that's gone back to the bank.

All the tables are taken and only a few counter seats are available on a weekday afternoon.

The place would do killer business if the center were 80 percent occupied, instead of half that, said Naseef, president of Distinct Real Estate Advisors.

It's his job to manage, lease and list the commercial property for sale on behalf of US Bank. He has it in escrow for $11.2 million, significantly lower than the $12.5 million appraised value in November. If the deal falls through, he has five cash offers lined up, including a biotech company that wants to be the primary occupant.

"This thing is so nice and fully built out with all the tenant improvements," said Naseef, a Las Vegas native who spent 10 years with Coldwell Banker before starting his own company. "Investors are calling me all day getting office for $100 a square foot for a shell building. This building is complete, all fitted. That makes this building more valuable because it's less money the investor has to put into it and it does have a revenue stream."

Naseef said he founded Distinct Real Estate Advisors to focus primarily on office and industrial properties. He worked with US Bank as a consultant long before the bank decided to foreclose on Mammoth Commercial Center, advising the owners on a variety of issues from leasing and day-to-day management to valuing the property for sale.

Question: Why did you leave Coldwell Banker to start your own business?

Answer: In 1999 our company signed a 10-year franchise agreement with Coldwell Banker Commercial. When it expired we decided to drop the brand because CBC was not fully committed to the commercial real estate business. CBC is owned by Realogy, which is the franchisor of Century 21, Coldwell Banker, ERA and Sotheby's. At the end of the day, residential was driving the bus. Today's business climate requires doing business outside of the box. We needed the freedom to be as nimble as our clients need us to be.

Question: What is Distinct Real Estate Advisors' business model?

Answer: Commercial investment real estate. We service owners and users and team up with other consultants to provide resolutions for our client's needs.

Question: Who are your clients and where to you get them?

Answer: Our clients are primarily investors and users of commercial real estate. We've developed a strong referral network over three decades. We track transactions and know that most properties change hands on some level over its useful life. Owners sell, buyers buy and tenants move. We know when tenant leases expire and when a property is most logical to sell and we focus our marketing accordingly.

Question: It seems everyone has lost hope for Las Vegas. What about you?

Answer: I've lived in Las Vegas my whole life and I've done business through three recessions here and Las Vegas has always bounced back. I think folks forget why our boom was so strong outside of the resort corridor. Location, location, location.

In my opinion, the start of the boom was due to three main things: climate, value and jobs. We had too much emphasis on construction employment, which is temporary, and eventually we were overpriced and overbuilt. We still have the climate and it's obvious to me that Las Vegas is now below value.

Once we figure out how to create jobs outside of the resort corridor, the Las Vegas economy will come back over time. There is a lot of activity in the commercial real estate market here right now. Investors are buying and tenants are taking advantage of value. Absorption is the problem and it has created a very competitive environment.

Question: How have you been able to survive the commercial collapse in Las Vegas?

Answer: Like most everyone else that has survived -- adapt and reposition to meet the needs in the marketplace. I realized a long time ago what my role is as a commercial real estate service provider. I solve problems, always working towards a solution.

Question: How did you tweak your business?

Answer: We expanded our consulting business to include expert witness and receivership services with attorneys and other professionals. Real estate transactions require expertise and diligence in order to close. People need our services more than ever now, especially with what technology is today. Anybody can get on the Internet and find out how much something costs and get a lot of detail about a property. But experience and innovation are what makes transactions work. I never stopped working (on) the basics. I am always networking and sourcing for new business opportunities.

Question: What advice do you give clients today?

Answer: It depends on the client's objectives. If they're an investor, we think now's a great time to buy, but you have to buy strategically. There's a lot of junk out there that wasn't located well land wasn't constructed efficiently.

Now if you're a user, tenants are coming to us when leases are coming up to expire and they ask us what's going on in the market. They want to relocate to higher-end space paying less rent than they're paying. Now from the asset manager's perspective, the bank calls me and says, "What should I do on lease reduction?"

Question: Is there a worse commercial market in the country than Las Vegas? If so, where?

Answer: No, not to my knowledge. The bottom line is we're all experiencing the same thing, the same challenges. The difference will be the recovery period. We all had our tails kicked in commercial real estate. Some are better, some worse. Las Vegas is the worst as far as the amount of stuff that needs to be absorbed.

I will tell you this, though. Investors will make more over the next 10 years than they did in the last 10 years.

Question: If you hadn't gone into commercial real estate, what else might you have done?

Answer: I'd be a lawyer. I like to see different angles. That probably helps me in commercial real estate because I don't look at things as always traditional. It shows in my technical skills of putting together contracts and leases. I work with a lot of lawyers and I have a good understanding of the business.

Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.