Kenneth Heebner’s CGM Realty Fund is liquidating its positions in SL Green Realty Corp – Manhattan’s largest office landlord.
“You’re seeing a retrenchment in the private-equity, hedge-fund and brokerage businesses, and there could be a lot of layoffs,” Heebner, 66 told Bloomberg in a recent interview. “That could have a devastating impact on high-end residential real estate in New York. Appetite for office space will also decline.”
More from the Heebner after after the jump.
SL Green Realty
SL Green Realty
Nepotism has a long and storied tradition on Wall Street. From John Pierpont Morgan to Sanford I. Weill, handing jobs and entire businesses to immediate family members is as much a part of working at the highest levels of American business as wearing monogrammed French cuffs and having at least three layers of administrative assistants answer your phones before people get to speak to you. It is the erosion of that nepotism–that hallowed institution–that has contributed to the painful decline of this country’s once-thriving plutocracy. But we’re relieved to see that at least one New Yorker is doing his part to uphold the tradition. As Footnoted.org points out, SL Green Realty chairman Stephen Green has been dishing out $11 million worth of business to his son Gary’s various business projects:
In the proxy it filed recently, the company added up just how much business Gary’s various companies — a cleaning service, a messenger service, a security service and a restoration company (which is included in the proxy for the first time) — have with SL Green. The $11 million in business last year is a nearly 25% increase from 2004. As the proxy notes, that doesn’t include any additional contracts that Gary’s companies have with SL Green tenants.
Daddy Dearest [Footnoted.org]