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<a href="http://www.ocbj.com/industry_article_pay.asp?aID=01627028.9344801.1748890.1212844.241963.274&aID2=134521">Story on OC Business Journal</a>
<em>Grubb Pay Cuts
Santa Ana-based Grubb & Ellis Co. is trying to save some money by cutting pay for some of its top executives.
The real estate brokerage and investor said this month that its interim chief executive, Gary Hunt, has cut his monthly salary in half, to $50,000.
That reduced salary is what Hunt?former political adviser for Irvine Company?was paid when he took the top spot last summer.
His salary doubled earlier this year, to the consternation of former chairman Tony Thompson, who has accused Grubb of being wasteful during the down market.
Meanwhile Grubb?s current chairman and largest shareholder, C. Michael Kojaian, said that he has decided to forego his full compensation and expense allowance.
As chairman, Kojaian was entitled to a retainer fee of $80,000, $140,000 worth of restricted stock and an expense allowance of $25,000 every year.
The reduction in executive pay is just one of the cost-cutting measures the company?s enacted of late. Like most brokerages struggling with slower leasing and sales, Grubb?s been reducing staff during the past few months.</em>
Also:
Don?t expect to see anyone moving in, conversion to apartments or ownership changes at Santa Ana?s Skyline MacArthur Place condominium towers until midyear at the earliest.
The twin 25-story towers?Orange County?s tallest condo buildings?are likely to remain empty and off the market for the next three to six months, according to real estate sources.
That much time is needed to give the project?s main financier, New York-based iStar Financial Inc., a better sense of where the local market stands, sources familiar with the situation said earlier this month.
Prospective buyers have been asking about acquiring the condos from iStar, which contrary to speculation hasn?t officially taken the property back from developer Nexus Cos. of Santa Ana, according to sources.
Right now, a distressed sale of the buildings along the Costa Mesa (55) Freeway in Hutton Centre seems unlikely. IStar appears to think any sale now would be at too steep of a discount, sources were told this month by the finance company.
Resuming sales of the condos hasn?t happened either, because of the tough market for home sales. The sales office for the project has been closed since last fall.
Meanwhile, iStar isn?t convinced that converting some or all of the 349 condos to apartments is the best decision either, in part because the units are too large.
Nexus last year filed an amendment to its development agreement with the Santa Ana Planning Commission that would allow leasing of some or all of the two towers. It withdrew that request shortly after.
Right now, the only company making some money off the project is Nexus, sources said. Nexus still is wrapping up some construction at the mostly completed buildings and likely is getting paid management fees for its efforts.
<em>Grubb Pay Cuts
Santa Ana-based Grubb & Ellis Co. is trying to save some money by cutting pay for some of its top executives.
The real estate brokerage and investor said this month that its interim chief executive, Gary Hunt, has cut his monthly salary in half, to $50,000.
That reduced salary is what Hunt?former political adviser for Irvine Company?was paid when he took the top spot last summer.
His salary doubled earlier this year, to the consternation of former chairman Tony Thompson, who has accused Grubb of being wasteful during the down market.
Meanwhile Grubb?s current chairman and largest shareholder, C. Michael Kojaian, said that he has decided to forego his full compensation and expense allowance.
As chairman, Kojaian was entitled to a retainer fee of $80,000, $140,000 worth of restricted stock and an expense allowance of $25,000 every year.
The reduction in executive pay is just one of the cost-cutting measures the company?s enacted of late. Like most brokerages struggling with slower leasing and sales, Grubb?s been reducing staff during the past few months.</em>
Also:
Don?t expect to see anyone moving in, conversion to apartments or ownership changes at Santa Ana?s Skyline MacArthur Place condominium towers until midyear at the earliest.
The twin 25-story towers?Orange County?s tallest condo buildings?are likely to remain empty and off the market for the next three to six months, according to real estate sources.
That much time is needed to give the project?s main financier, New York-based iStar Financial Inc., a better sense of where the local market stands, sources familiar with the situation said earlier this month.
Prospective buyers have been asking about acquiring the condos from iStar, which contrary to speculation hasn?t officially taken the property back from developer Nexus Cos. of Santa Ana, according to sources.
Right now, a distressed sale of the buildings along the Costa Mesa (55) Freeway in Hutton Centre seems unlikely. IStar appears to think any sale now would be at too steep of a discount, sources were told this month by the finance company.
Resuming sales of the condos hasn?t happened either, because of the tough market for home sales. The sales office for the project has been closed since last fall.
Meanwhile, iStar isn?t convinced that converting some or all of the 349 condos to apartments is the best decision either, in part because the units are too large.
Nexus last year filed an amendment to its development agreement with the Santa Ana Planning Commission that would allow leasing of some or all of the two towers. It withdrew that request shortly after.
Right now, the only company making some money off the project is Nexus, sources said. Nexus still is wrapping up some construction at the mostly completed buildings and likely is getting paid management fees for its efforts.
