Business Management Corporate Profiles
Sept 1, 2007
By: Eugene Gilligan, Senior Editor
Mount Everest. K2. Mount Kilimanjaro. He has climbed them all. And then there was the time he explored the wreckage of the Titanic in a submersible vessel.
Those globetrotting adventures aside, Majestic Realty Co. chairman CEO Ed Roski Jr. said real estate development offers its own brand of excitement, a segment of the industry that only becomes more sophisticated and competitive as the years go by. "There are a lot of great developers," he said. "It's a great business, and I'm amazed at the quality of individuals entering it."
Roski says no complicated formula explains Majestic Realty's or his own success. "You have to have passion for the business and a passion to learn and to stay current," he said. "I like what John F. Kennedy said: 'Leadership and learning are indispensable.' You have to always learn and evolve."
Headquartered in the City of Industry, Calif., and operating offices in Dallas, Atlanta, Las Vegas, Salt Lake City, Jacksonville, Fla., and Aurora, Colo., the company is a developer and owner of 73 million square feet of industrial, office and retail space, and it is gearing up for a milestone. In 2008, it will celebrate its 60th anniversary, so there is even more to smile about. Roski said Majestic Realty's business structure provides a leg up on the competition. "We are privately held, and that gives us a solid foundation," he noted. "We are able to pounce on opportunities. We are a family organization, and we have people who have worked here a long time and who work together well. That longevity really helps."/////These are good days for Majestic Realty, Roski said, though he would not name the deal that excites him most. "I am excited about all of our deals. All of our offices are very active and are working on really good projects."
Making Things Happen Beyond development and travel, Roski also has a passion for sports that gave birth to a Los Angeles landmark: STAPLES Center. Majestic Realty led L.A. Arena Co.'s efforts to create the arena, which opened Downtown in 1999.
Roski, a co-owner of the National Hockey League's Los Angeles Kings and National Basketball Association's Los Angeles Lakers, admitted that he faced some resistance to the idea of a Downtown sports arena. But he saw STAPLES Center as a key to the area's rebirth. He was also inspired by childhood memories. "Downtown Los Angeles had everything, from a lot of shopping to offices," he said. His business travels to other cities that used Downtown arenas to spur urban renewal, such as Cleveland and Buffalo, N.Y., convinced him that Los Angeles could reap similar rewards. He said sports franchises provide intangible local benefits. "They can be a unifying force for a city. You have people getting together and rooting for the same thing, whether they are sitting in the upper deck or courtside."
Roski is pleased that such a large amount of development has grown around the arena. Notable is L.A. Live, the 4 million-square-foot entertainment center that he is developing with lead developer AEG. "When you get 15,000 to 20,000 people visiting an area 300 nights a year, things are going to happen" he said.
According to Matthew Toledo, president publisher of the Los Angeles Business Journal, which inducted Roski into its Business Hall of Fame this year, "Before STAPLES Center, Downtown Los Angeles wasn't an event. It was very much a 9-to-5 community." Toledo credited Roski's patience and willingness to stand firm while some Los Angeles City Council members resisted the idea of a Downtown arena. "Ed hung in there until the project got done," Toledo said. "Now, Downtown Los Angeles is seeing billions of dollars of investment, and there's more to come. That wouldn't have happened without Ed."
Roski is still applying that diligence to his own company, exploring such growth opportunities as green development and international expansion.
Boom Years
Roski's father a World War II veteran founded Majestic Realty in 1948 after leaving the Navy and moving his family from Oklahoma. "Southern California was the place to be. The boom was just starting," Roski Jr. said. He had always been involved in the family business, joking that anything else simply was "not an option." He graduated from the University of Southern California with a degree in finance and real estate in 1962 and served as a Marine for four years, winning two Purple Hearts. Roski Jr. took over the company in January 1994.
By the late 1970s, Majestic Realty had grown into one of the largest brokerage firms in Southern California, branched out into development and then switched to make development its sole focus. "It was increasingly hard to do both," Roski said. And as the United States and Southern California have changed, so have the company's projects. "We are doing less and less manufacturing facilities and more warehouse development as the level of imports to the U.S. has grown."
Philanthropy also forms a central part of Roski's life. In 2002, he formed the Majestic Realty Foundation, which focuses on charitable giving and community outreach for youth, family, education, health and violence prevention issues. The organization grants more than $2 million annually. He has also made a large contribution to his alma mater. Thus the USC Gayle Garner Roski School of Fine Arts is named after his wife, who also studied at USC.
The fact that he endowed the fine arts school, rather than the business school, and that "Edward" does not appear in the name speaks volumes about what Roski is all about, said Ruth Weisberg, dean of the fine arts school. "He is sending a message that the arts are important," she said. According to Roski, "I personally have the resources, and I want to use those resources to make a difference."
Los Angeles Mayor Antonio Villaraigosa had his own praise for Roski: "Ed is a proven leader of the city of Los Angeles. His vision for the future and commitment to philanthropy have transformed this city in ways that are unparalleled. His contribution to the cultural growth of this city with the development of the STAPLES Center and his commitment to supporting countless civic organizations make him one of the most generous citizens this city has seen."
Staying the Course
Today's stricter zoning regulations have made development more challenging, Roski noted, predicting that commercial real estate will remain strong in the short term. Still, he offered words of caution. "We're going to see a little downshift, so it will pay to check the brakes," he said. "Times should be good, but developers tend to get overenthused. We have to make sure we are doing deals in accordance with strict underwriting principles."
Roski plans to keep his adventurous spirit fully engaged. "I want to keep working as long as I can get from my home to my office," he said. "I'm not a good golfer, so I have no plans to retire."
By: Eugene Gilligan, Senior Editor
Mount Everest. K2. Mount Kilimanjaro. He has climbed them all. And then there was the time he explored the wreckage of the Titanic in a submersible vessel.
Those globetrotting adventures aside, Majestic Realty Co. chairman CEO Ed Roski Jr. said real estate development offers its own brand of excitement, a segment of the industry that only becomes more sophisticated and competitive as the years go by. "There are a lot of great developers," he said. "It's a great business, and I'm amazed at the quality of individuals entering it."
Roski says no complicated formula explains Majestic Realty's or his own success. "You have to have passion for the business and a passion to learn and to stay current," he said. "I like what John F. Kennedy said: 'Leadership and learning are indispensable.' You have to always learn and evolve."
Headquartered in the City of Industry, Calif., and operating offices in Dallas, Atlanta, Las Vegas, Salt Lake City, Jacksonville, Fla., and Aurora, Colo., the company is a developer and owner of 73 million square feet of industrial, office and retail space, and it is gearing up for a milestone. In 2008, it will celebrate its 60th anniversary, so there is even more to smile about. Roski said Majestic Realty's business structure provides a leg up on the competition. "We are privately held, and that gives us a solid foundation," he noted. "We are able to pounce on opportunities. We are a family organization, and we have people who have worked here a long time and who work together well. That longevity really helps."/////These are good days for Majestic Realty, Roski said, though he would not name the deal that excites him most. "I am excited about all of our deals. All of our offices are very active and are working on really good projects."
Making Things Happen Beyond development and travel, Roski also has a passion for sports that gave birth to a Los Angeles landmark: STAPLES Center. Majestic Realty led L.A. Arena Co.'s efforts to create the arena, which opened Downtown in 1999.
Roski, a co-owner of the National Hockey League's Los Angeles Kings and National Basketball Association's Los Angeles Lakers, admitted that he faced some resistance to the idea of a Downtown sports arena. But he saw STAPLES Center as a key to the area's rebirth. He was also inspired by childhood memories. "Downtown Los Angeles had everything, from a lot of shopping to offices," he said. His business travels to other cities that used Downtown arenas to spur urban renewal, such as Cleveland and Buffalo, N.Y., convinced him that Los Angeles could reap similar rewards. He said sports franchises provide intangible local benefits. "They can be a unifying force for a city. You have people getting together and rooting for the same thing, whether they are sitting in the upper deck or courtside."
Roski is pleased that such a large amount of development has grown around the arena. Notable is L.A. Live, the 4 million-square-foot entertainment center that he is developing with lead developer AEG. "When you get 15,000 to 20,000 people visiting an area 300 nights a year, things are going to happen" he said.
According to Matthew Toledo, president publisher of the Los Angeles Business Journal, which inducted Roski into its Business Hall of Fame this year, "Before STAPLES Center, Downtown Los Angeles wasn't an event. It was very much a 9-to-5 community." Toledo credited Roski's patience and willingness to stand firm while some Los Angeles City Council members resisted the idea of a Downtown arena. "Ed hung in there until the project got done," Toledo said. "Now, Downtown Los Angeles is seeing billions of dollars of investment, and there's more to come. That wouldn't have happened without Ed."
Roski is still applying that diligence to his own company, exploring such growth opportunities as green development and international expansion.
Boom Years
Roski's father a World War II veteran founded Majestic Realty in 1948 after leaving the Navy and moving his family from Oklahoma. "Southern California was the place to be. The boom was just starting," Roski Jr. said. He had always been involved in the family business, joking that anything else simply was "not an option." He graduated from the University of Southern California with a degree in finance and real estate in 1962 and served as a Marine for four years, winning two Purple Hearts. Roski Jr. took over the company in January 1994.
By the late 1970s, Majestic Realty had grown into one of the largest brokerage firms in Southern California, branched out into development and then switched to make development its sole focus. "It was increasingly hard to do both," Roski said. And as the United States and Southern California have changed, so have the company's projects. "We are doing less and less manufacturing facilities and more warehouse development as the level of imports to the U.S. has grown."
Philanthropy also forms a central part of Roski's life. In 2002, he formed the Majestic Realty Foundation, which focuses on charitable giving and community outreach for youth, family, education, health and violence prevention issues. The organization grants more than $2 million annually. He has also made a large contribution to his alma mater. Thus the USC Gayle Garner Roski School of Fine Arts is named after his wife, who also studied at USC.
The fact that he endowed the fine arts school, rather than the business school, and that "Edward" does not appear in the name speaks volumes about what Roski is all about, said Ruth Weisberg, dean of the fine arts school. "He is sending a message that the arts are important," she said. According to Roski, "I personally have the resources, and I want to use those resources to make a difference."
Los Angeles Mayor Antonio Villaraigosa had his own praise for Roski: "Ed is a proven leader of the city of Los Angeles. His vision for the future and commitment to philanthropy have transformed this city in ways that are unparalleled. His contribution to the cultural growth of this city with the development of the STAPLES Center and his commitment to supporting countless civic organizations make him one of the most generous citizens this city has seen."
Staying the Course
Today's stricter zoning regulations have made development more challenging, Roski noted, predicting that commercial real estate will remain strong in the short term. Still, he offered words of caution. "We're going to see a little downshift, so it will pay to check the brakes," he said. "Times should be good, but developers tend to get overenthused. We have to make sure we are doing deals in accordance with strict underwriting principles."
Roski plans to keep his adventurous spirit fully engaged. "I want to keep working as long as I can get from my home to my office," he said. "I'm not a good golfer, so I have no plans to retire."
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