By Susan C. Walsh

 

With real estate a booming industry in New York City and around the country, it is no surprise that MBA students are increasingly entering the field. Few, however, can boast of the prize that Sonny Bazbaz (MBA ’04) lays claim to: a dream job in real estate. Bazbaz landed a coveted position at legendary Fisher Brothers prior to graduation thanks to a unique relationship forged with Richard L. Fisher.

Bazbaz has an eye for opportunity. When he graduated from the University of Texas with a degree in business economics in 1998, Bazbaz thought he would follow the same path most of his peers were seeking: a job on Wall Street. But before interviewing with financial firms, he assisted his father, who owned a plastic packaging business based in Houston, by drawing up a business plan for a new project.

The Bazbaz family is from Mexico, and Sonny was born and lived there until the family moved to Houston when he was seven. And because he was familiar with Mexico, he saw the need for a similar packaging operation there. His father was so impressed with his son’s plan that he suggested that Sonny handle the project personally. Deciding that starting his own company would provide a broad experience, Bazbaz accepted the challenge.

He moved to Monterrey and established Superbag de Mexico in 1998. He was involved in all aspects of getting the business off the ground – building warehouses, buying machinery, meeting potential customers, and personally interviewing the first employees. Not one to tackle a challenge half-heartedly, Bazbaz devoted all of his waking hours to the company, literally living in the warehouse for the first nine months. Although this entailed daily altercations with snakes and scorpions, Bazbaz made the commitment because, “if I wanted the company to be successful, I had to be there 24 hours a day.”

All that hard work paid off. With the help of a large account in the early stages, Superbag de Mexico soon established itself as a major player, supplying polyethylene bags for the grocery and retail business. The company enjoyed prosperity while Monterrey was undergoing a period of economic expansion. Within two years, Bazbaz had repaid all debt involved in starting costs. As the number of clients rose, his duties shifted from project management to running the company. And they still kept him busy from morning until night.

During his five years at Superbag de Mexico, Bazbaz discovered the hidden value in real estate. After a few years, economic conditions became less favorable for the company. The exchange rate in Mexico shifted, raising operating costs. And as the demand for labor increased rapidly in Monterrey, fueled in large part by a torrid economic expansion, higher labor costs cut into margins as well. But as his company’s profit margins fell, the value of its real estate surged. By 2002 the warehouses were more valuable than the company itself. This turn of events inadvertently sparked an interest in real estate, and Bazbaz made the decision to switch gears and start a new career. After training an MBA graduate from Mexico to take over the reigns, he focused on the next phase in his life.

The realization that real estate is heavily driven by finance solidified his desire to get an MBA. He set his sights on New York because “Manhattan is home to the kings of real estate.” Sonny Bazbaz (left) joins Richard Fisher (right) during their class' tour of Rockefeller Plaza.

With solid experience at Superbag de Mexico under his belt, Bazbaz felt confident in his project management, operations, and construction skills. The realization that real estate is heavily driven by finance solidified his desire to get an MBA. He set his sights on New York because “Manhattan is home to the kings of real estate,” and chose to attend NYU Stern. But he never imagined that he would be working as a student side by side with one of those kings.

Once on campus in the fall of 2002, Bazbaz became friendly with Jeremy Wiesen, associate professor of business law and accounting. Wiesen, in turn, is friends with Richard L. Fisher, a senior partner at the Manhattan-based Fisher Brothers, a multigenerational family business that is one of New York City’s preeminent builders and managers of commercial real estate.

Fisher had committed to teaching a real estate course at NYU Stern in the spring of 2004. Professor Wiesen’s rave review of his student’s capabilities convinced Fisher to appoint Bazbaz as his teaching assistant (TA). As Fisher puts it, Bazbaz came in “on clouds of glory.” And Bazbaz was eager to learn from a real estate expert.

Few people possess the depth of knowledge about real estate that Richard Fisher does. Founded in 1915 by Martin Fisher, his family’s firm owns, manages and successfully leases over 6 million feet to major corporate tenants. Fisher Brothers’ portfolio of office space includes Park Avenue Plaza, 299 Park Avenue, 1345 Avenue of the Americas, and 605 Third Avenue. The firm, in partnership with Morgan Stanley & Co., co-sponsors the City Investment Fund, an investment vehicle created to pursue opportunistic real estate investments within the five boroughs of New York City. And Richard Fisher is primarily responsible for real estate acquisitions and finance for the Fisher Brothers portfolio, which has more than $4 billion in assets.

During a five month period, the teacher and the teacher’s assistant met once a week to design the course that became Real Estate Finance. Now one of the most popular classes in the MBA program, the course emphasizes “real world” issues, and guest speakers are brought in to present case studies. With a roster that includes prominent real estate executives like Jerry Speyer, president and chief executive officer of Tishman Speyer Properties, Larry Silverstein, president of Silverstein Properties, Inc., and Sam Zell, chairman of Equity Group Investments, L.L.C., the course offers insider information about the New York City real estate market. Bazbaz believes that real estate professionals would “pay thousands of dollars for the chance to sit in on this course.” For their part, students jump at the chance to add Real Estate Finance to their schedule. “I would have felt lucky to simply have [Fisher] as a guest lecturer for one class session,” says Dan Poehling (MBA ’05). “But to have the opportunity to learn from him for an entire semester was an invaluable experience.”

The job description also includes one other non-negotiable task: Bazbaz had to continue working with Fisher on Real Estate Finance. Not that he minds. “I told Richard, you can't fire me from being a TA.” Bazbaz (back row, second from right) and members of the Real Estate Finance class after they admired the views from high above Rockefeller Plaza (above).

Fisher describes the course as “real world real estate in 12 weeks.” The course culminates in a case study of Rockefeller Center. A four-week process, the case study attempts to replicate a real-world scenario in an acquisition where students must negotiate, underwrite, and ultimately present a bid to “sellers.” The project, which Fisher refers to as the “jewel” of his course, includes a talk with the president of Rockefeller Center and a property tour. Fisher is refreshingly honest, openly discussing his firm’s failed attempt to purchase the property in 2001. Fisher Brothers was ultimately outbid by a partnership between Tishman Speyer and the Chicago-based Crown family. Fisher’s eagerness to invite Jerry Speyer to be a guest speaker in the class – and Speyer's willingness to accept – speaks volumes of the level of professional respect he enjoys.

Today, Bazbaz has a lot on his plate. Before he graduated from NYU Stern, Fisher offered him a full time position in acquisitions and development at Fisher Brothers. Although Bazbaz humbly says that Fisher “just popped the question,” Fisher says he realized what a tremendous asset Bazbaz would be to the organization. Bazbaz, 30, does not have an official title – probably because he handles so many different tasks. He has responsibility for expanding Fisher Brothers’ activities outside of the New York area and travels frequently to Washington, DC, South Florida, Boston, and Las Vegas. When not traveling, Bazbaz commutes from the Tribeca apartment he shares with his wife and 11-month old daughter to Fisher Brothers’ Park Avenue building. On any given day his responsibilities include sourcing opportunities, financial analysis, marketing strategy, and project management.

The job description also includes one other non-negotiable task: Bazbaz had to continue working with Fisher on Real Estate Finance. Not that he minds. “I told Richard, you can’t fire me from being a TA.” Bazbaz catches up with the course on weekends, grading papers and fielding phone calls and e-mails from students. Knowing that Fisher remains dedicated to the course even with his busy schedule strengthens Bazbaz’s commitment. He enjoys staying connected to Stern, and believes that as a recent graduate, he is a good resource for students. Recognizing how fortunate he was to find a mentor in Fisher, Bazbaz is happy to share his experience with current students. “Understanding the [real estate] landscape can be a challenge without a guide,” he says.

Fisher cites “intellectual stimulation” as his reason for adding teaching duties to his hectic schedule. He takes the course very seriously, and was intent on designing a rigorous curriculum. “There is a misconception in business schools that practical advice from the business world is always less rigorous an intellectual experience than the work of pure academicians,” said Professor Wiesen. “In Richard Fisher’s case this is not true because the quantitative and qualitative analysis he performs before committing significant sums of his own money and that of others is very rigorous indeed. And that is why Stern students have fought to get into his course.”

Despite the intellectual rigor, students should not enroll in the class thinking that it will be a theoretical exercise. As Fisher says, “I don't even know what ‘theory’ is in real estate.” He warns students to avoid “paralysis through analysis,” an admonition Bazbaz has taken to heart. “Quantitative analysis is, of course, useful and necessary in this industry,” he says. “But it is also about managing people and, ultimately, trusting your instincts.”

Bazbaz’s experience starting a company and now working at a top real estate firm has convinced him that communication skills should not be underestimated. “There are a lot of ‘smart’ people in the city,” he says, but “street smarts” are often overlooked in today’s market, where space is often leased before it is built. As a result, Bazbaz believes that the essential skill for success is the ability to convey a vision to others and promote that vision with confidence. He notes: “communication is critical.”

When asked if he has any advice for current MBA students, Bazbaz emphasizes taking the initiative. “Don’t think anything will be handed to you. Start to hustle. You have to find opportunities for yourself.” At the same time, he stresses the importance of acknowledging a powerful factor in life: luck. So far, looks like luck is on his side.