Another tiny birdie emailed us with some of the costs that the consultants hired by the Feds are projecting for restoring the Admiral’s Row houses. As you can see from the chart, there were some later additions to the original 19th Century houses that are generally in worse condition and not considered worth saving, hence the two square footage numbers. The Rehabilitation numbers refer to restoring what’s currently there, bringing existing details back to life and replicating missing portions; The Reconstruction numbers refer to a scenario in which remaining details are salvaged and incorporated into newly-constructed replicas. In addition to being cheaper, the Rehab approach sounds preferable to us. How do these numbers look to you?
Admiral’s Row: “Extremely High Level of Historic Integrity” [Brownstoner]
Officers’ Row: Let’s Have Our Cake and Eat It Too [Brownstoner]
Officers’ Row Preservation Coming to a Contentious Head [Brownstoner]
For Officer’s Row, Supermarket All But Certain [Brownstoner]
Admiral’s Row Fixup to Cost $20M [NY Daily News]
Real Estate Round-Up [Brooklyn Eagle]
Archive for December 15th, 2007
15
12
2007
 
Time to try on American Apparel? Perhaps, but watch out for the CEOPosted by: in Marketing and AdvertisingFiled under: Management, Marketing and advertising, Entrepreneurs
First a little bit of background: American Apparel was founded in 1997 by Dov Charney, and is known for its easy, high-quality clothing, and its unique practice of not plastering its logo on everything it sells. Browse through their merchandise on the company’s website. The company also avoids outsourcing, manufacturing its clothing in Los Angeles where it is headquartered. In 2006, the company had revenue of just over $264 million, an increase of 37.7%. The increase was driven by the opening of 41 new stores, but the company still reported a loss just about $1.6 million as SG&A expenses climbed. Sales are growing quickly and the company turned a profit in its most current quarter. American Apparel certainly has the potential to turn into a very hot retail growth stock — it’s already up large over the past few months. But there are a couple things to worry about. First, saying that founder and CEO Dov Charney is uninhibited is like saying that Alan Greenspan can ramble a bit. In 2005, the New York Times did a story on Charney’s — er … one-of-a-kind management style. Here’s a swift sampling: “Mr. Charney decorates stores with covers of Penthouse and Oui magazines from the ’70s, admits in interviews to engaging in sexual relationships with women who work for him, and once exposed himself for an ad in a gay magazine, all in the name of personal freedom. “In two separate sexual harassment lawsuits, three plaintiffs who worked on American Apparel’s administrative and sales staffs charge that they endured sexual misconduct and innuendo and an environment in which women did not feel safe … Among the allegations: using crude language and gestures, conducting job interviews in his underwear, ordering the hiring of women in whom he had a sexual interest and giving one of the plaintiffs a vibrator.” Wow. In an article in Jane a couple years ago, Mr. Charney was described as having masturbated in front of the writer, and also having engaged in oral sex with an employee in the writer’s presence. How Mr. Charney, who seems to personify the phrase “brilliantly eccentric entrepreneur” will adapt to a world of quarterly conference calls with Wall Street analysts remains to be seen: He could actually give Patrick Byrne a run for his money in the eccentric department. Whether he will be able to deliver growth and earnings better than Byrne has remains to be seen. Another concern that I’ve, as someone who has shopped in American Apparel stores, is that the clothing is really not particularly one-of-a-kind, and could be very vulnerable to lower cost competitors as it expands its footprint. This is definitely a stock to keep an eye on, if only for entertainment value. I don’t really have an view on whether it’s a purchase or a sell, but I’m certainly looking forward to watching Mr. Charney Goes to Wall Street.
15
12
2007
Time to try on American Apparel? Perhaps, but watch out for the CEOPosted by: in Marketing and AdvertisingFiled under: Management, Marketing and advertising, Entrepreneurs
First a little bit of background: American Apparel was founded in 1997 by Dov Charney, and is known for its easy, high-quality clothing, and its unique practice of not plastering its logo on everything it sells. Browse through their merchandise on the company’s website. The company also avoids outsourcing, manufacturing its clothing in Los Angeles where it is headquartered. In 2006, the company had revenue of just over $264 million, an increase of 37.7%. The increase was driven by the opening of 41 new stores, but the company still reported a loss just about $1.6 million as SG&A expenses climbed. Sales are growing quickly and the company turned a profit in its most recent quarter. American Apparel certainly has the potential to turn into a very hot retail growth stock — it’s already up big over the past few months. But there are a couple things to worry about. First, saying that founder and CEO Dov Charney is uninhibited is like saying that Alan Greenspan can ramble a bit. In 2005, the New York Times did a story on Charney’s — er … very special management style. Here’s a quick sampling: “Mr. Charney decorates stores with covers of Penthouse and Oui magazines from the ’70s, admits in interviews to engaging in sexual relationships with women who work for him, and once exposed himself for an ad in a gay magazine, all in the name of personal freedom. “In two separate sexual harassment lawsuits, three plaintiffs who worked on American Apparel’s administrative and sales staffs charge that they endured sexual misconduct and innuendo and an environment in which women didn’t feel safe … Among the allegations: using crude language and gestures, conducting job interviews in his underwear, ordering the hiring of women in whom he had a sexual interest and giving one of the plaintiffs a vibrator.” Wow. In an article in Jane a couple years ago, Mr. Charney was described as having masturbated in front of the writer, and also having engaged in oral sex with an employee in the writer’s presence. How Mr. Charney, who seems to personify the phrase “brilliantly eccentric entrepreneur” will adapt to a world of quarterly conference calls with Wall Street analysts remains to be seen: He could actually give Patrick Byrne a run for his money in the eccentric department. Whether he’ll be able to deliver growth and earnings superior than Byrne has remains to be seen. Another concern that I’ve, as someone who has shopped in American Apparel stores, is that the clothing is really not particularly unique, and could be very vulnerable to lower cost competitors as it expands its footprint. This is definitely a stock to keep an eye on, if only for entertainment value. I don’t really have an view on whether it’s a buy or a sell, but I’m certainly looking forward to watching Mr. Charney Goes to Wall Street. Filed under: Marketing and advertising, Next massive thing
This week, eMarketer published a study that forecasts that social networking advertising is expected to reach $4 billion by 2011 (on a global basis). Keep in mind, though, that research firms don’t have clear-cut crystal balls. It’s not uncommon for them to get too aggressive on these estimates. Also, in the realm of the frothy World wide web, the $4 billion figure does seem a bit muted — especially in light of some of the current valuations. Something else: eMarketer thinks that about half of all on the internet adults will be on social networks by 2011. Really? I can certainly understand that teens will remain avid. But, adults have other things to do besides social networking (such as making a living, taking care of children, and so on). In other words, if eMarketer is counting on adults for social networking riches, it might want to think again. Tom Taulli is the author of various books, including The Complete M&A Handbook Filed under: Coca-Cola (KO), PepsiCo (PEP), Marketing and advertising The cola wars between Coca-Cola (NYSE: KO) and Pepsi (NYSE: PEP) that consisted of a high-profile battle for carbonated supremacy are quiet for now and, according to some experts, it’s hurting the industry. Some industry experts predict that soda sales will decline 1% per year for the next ten years. The accuracy of such a forward-looking prediction aside, it puts a lot of pressure on the soda companies. Coke responded with its high-profile acquisition of Glaceau, the maker of VitaminWater, and Pepsi is preparing the launch of Tava, “An Inspired Sparkling Beverage” promising “Zero Calories. Zero Caffeine. Zero Worries.” The packaging looks slick and the flavors — Tahitian Tamure, Mediterranean Fiesta, and Brazilian Samba — certainly sound enticing. The product will launch in the first half of 2008, but Pepsi investors should be wary of putting too much faith in it. A big percentage of new beverages fail to catch on with consumers — Remember Crystal Pepsi, Pepsi Blue, and New Coke? Maybe they’ll be able to compensate for the decline in categories like energy drinks and vitamin-enhanced water — but investing in Coca-Cola when you think Coke is headed for a long decline seems silly — especially given that the stock hit a multi-year high on Friday. With the decline — and expected continuation of the decline — in soft drink sales, you also have to wonder about Jones Soda’s (NASDAQ: JSDA) prospects. The company has its own serious internal problems, and trying to make a comeback in a declining industry could prove too much for it to handle. Perhaps big new marketing campaigns and a rebirth of the cola wars can help brighten soda’s prospects — but if the decline is caused by factors like increasing health-consciousness and a preference for noncarbonated drinks, it might just be a massive waste of money. Filed under: Marketing and advertising, Next huge thing
This week, eMarketer published a study that forecasts that social networking advertising is expected to reach $4 billion by 2011 (on a global basis). Keep in mind, though, that research firms don’t have clear-cut crystal balls. It’s not unusual for them to get too aggressive on these estimates. Also, in the realm of the frothy Internet, the $4 billion figure does seem a bit muted — especially in light of some of the current valuations. Something else: eMarketer thinks that about half of all on the web adults will be on social networks by 2011. Really? I can certainly comprehend that teens will remain avid. But, adults have other things to do besides social networking (such as making a living, taking care of kids, and so on). In other words, if eMarketer is counting on adults for social networking riches, it might want to think again. Tom Taulli is the author of various books, including The Complete M&A Handbook Filed under: Coca-Cola (KO), PepsiCo (PEP), Marketing and advertising The cola wars between Coca-Cola (NYSE: KO) and Pepsi (NYSE: PEP) that consisted of a high-profile battle for carbonated supremacy are quiet for now and, according to some experts, it’s hurting the industry. Some industry experts predict that soda sales will decline 1% per year for the next ten years. The accuracy of such a forward-looking prediction aside, it puts a lot of pressure on the soda companies. Coke responded with its high-profile acquisition of Glaceau, the maker of VitaminWater, and Pepsi is preparing the launch of Tava, “An Inspired Sparkling Beverage” promising “Zero Calories. Zero Caffeine. Zero Worries.” The packaging looks slick and the flavors — Tahitian Tamure, Mediterranean Fiesta, and Brazilian Samba — certainly sound enticing. The product will launch in the first half of 2008, but Pepsi investors should be wary of putting too much faith in it. A large percentage of new beverages fail to catch on with consumers — Remember Crystal Pepsi, Pepsi Blue, and New Coke? Maybe they’ll be able to compensate for the decline in categories like energy drinks and vitamin-enhanced water — but investing in Coca-Cola when you think Coke is headed for a long decline seems silly — especially given that the stock hit a multi-year high on Friday. With the decline — and expected continuation of the decline — in soft drink sales, you also have to wonder about Jones Soda’s (NASDAQ: JSDA) prospects. The company has its own serious internal problems, and trying to make a comeback in a declining industry could prove too much for it to handle. Perhaps big new marketing campaigns and a rebirth of the cola wars can help brighten soda’s prospects — but if the decline is caused by factors like increasing health-consciousness and a preference for noncarbonated drinks, it might just be a big waste of money.
15
12
2007
Money Winners of 2007: David Beckham takes over the GalaxyPosted by: in Marketing and AdvertisingFiled under: Deals, PepsiCo (PEP), Marketing and advertising, Business of sports
Beckham’s former team, Real Madrid, had paid him almost $32 million annually. So, why the move for less money? Beckham is not just an athlete, but a fairly successful pitchman. His biggest endorsement, Gillette, pays him an estimated $9 million for three years, and he also lends his image to Pepsico (NYSE: PEP) products, Vodafone (NYSE: VOD), Adidas and — yep — Brylcream. Playing around the United Says will give him a higher profile in the only market he hasn’t conquered yet: ours. B. Brandon Barker is the author of the novel Operation EMU. Be sure to check out more Money Winners of 2007.
15
12
2007
Closing Bell: Avalon Myrtle Demo Beginning, Ever So SlowlyPosted by: admin in Real Estate News
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Several friends have asked me for my view of 
With a $15 billion valuation for 
and 
. He also operates 
English soccer star 
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