Giuliani Enters the Race – Just Not the One You Think

Since his bid for the presidential nomination did not work out as expected Giuliani is trying his hand at the Real Estate Market.

By James R. Lindamood

Say what you want about the former mayor of New York City, but his timing is impeccable. Giuliani Partners, who made their name as a management and consulting company after Rudy left office in 2002, is planning to develop an investment fund, based on the real estate market in NYC and Washington, D.C.

Mr. Giuliani and his company do have some expertise in providing investment advice in the real estate market, and they plan to turn that experience into a lure for foreign investment capital. With the continuing weakness of both the dollar, and the real estate market in New York and Washington, Mr. Giuliani hopes to attract wealthy buyers to help bolster the real estate market of those two cities.

Giuliani Partners doesn't plan on running the real estate business by themselves, or to go into it blindly. They have partnered with industry veteran Berman Enterprises, which will help them with the day to day operations of the fund. The partnership between the two will couple the real estate expertise of Berman Enterprises with the political and social connections of Mr. Giuliani's company. The goal is to raise 500 and 750 million dollars, all of which will go toward high-value real estate purchases in NY and DC. Giuliani Partners will be responsible for raising over ninety percent of that capital themselves.

The Berman Enterprises Opportunity Fund, as it will be called, will have a minimum buy-in of 25 million dollars. The fund will primarily seek undervalued properties in established neighborhoods. The partnership hopes to maneuver the current market, and emerge with a strong portfolio, and very little overall debt.