Editors’ Note

Prior to joining Related in 2001, Susan de Franca served as Executive Vice President of Development and Marketing for Davis and Partners, LLC, and as Executive Vice President and Managing Director of The Sunshine Group Ltd. She began her now more than 25-year-long career in real estate at M. J. Raynes Development Corporation, where she presided over the firm’s residential portfolio of co-op and condominium conversion properties. A member of the Association for Real Estate Women, de Franca earned a BS in business management and marketing from St. Francis College (New York) and studied real estate appraisal, finance, and investment at Marymount Manhattan College.

Company Brief

Related Sales LLC is the exclusive marketing and sales division of Related, (www.related.com), a fully integrated, privately owned firm with further divisions in development, acquisitions, financial services, and property management, and headquarters in New York. Related oversees a nationwide real estate portfolio valued in excess of $15 billion, and has significant developments, partners, and affiliates throughout the U.S., including Miami, Chicago, Boston, Los Angeles, and San Francisco. Over the past six years, Related has made its mark on the super-luxury condominium market by developing properties that have achieved record-breaking sales statistics in each of their submarkets.

2007 was a strong year for the luxury market in New York. Are you optimistic for growth in 2008?

We experienced a very strong year evidenced by the success of three new properties: one on the Upper East Side, one on the Upper West Side, and one in the coveted West Village. All of the properties were designed by Robert A.M. Stern Architects, whose solid reputation – along with Related’s – have elevated both firms throughout the past ten years. We take pride at Related in the fact that we were the first company to commission a celebrity “star-chitect” by selecting Robert Stern in 1997 to design The Chatham. With the huge success of 15 Central Park West, as well as other Stern-designed properties, we remain confident that our properties deliver value. We deliver upon our brand promise. People feel as though they’re buying into a solid financial property and a secure and comfortable environment.

We’ve experienced a very strong market measured by the rapid pace of sales in a short period of time.

As we go into 2008, based on the level of interest and the demand for housing in New York City and the growing number of young families, we see a tremendous demand to absorb these apartments.

The hybrid, or condo-rental mix, was originally considered by some to be a trend, and yet it seems likely to stay. Do you see continuing opportunities within that segment?

We have achieved continued success with the business model that was born on 96th Street in New York three years ago, where we had 400-plus units coming into the marketplace.

At the time, we decided to go hybrid, as many of our rental residents wanted to take advantage of the low-interest-rate environment that existed during that time. We realized that 90 percent turnover in our rental properties was due to our residents wishing to take advantage of the purchasing opportunities that were out there. Often, they would come back and remark, “We cannot find the quality of lifestyle that Related has in its rental properties in the buildings that we’re considering buying into.” We realized that we had an opportunity to fulfill a need in the market. We experienced tremendous success, and many of our buyers were first-time purchasers.

Which niche markets are you focusing on?

Our niche market is super luxury. However, one of the strengths of Related continues to be Steve Ross’s [Chairman and CEO, The Related Companies] foundation in affordable housing, which continues to be a core part of our business throughout the country. We are committed to providing quality housing from affordable to super-luxury properties, such as Time Warner Center, Superior Ink, and The Century in Los Angeles where we are defining the evolution of estate living. We take pride in being at the top of each of our submarkets.

Are you focused on particular geographic areas for Related’s growth?

We see growth throughout the entire country. We have a development company in Chicago called Related Midwest, where we’re developing a luxury high-rise, Canyon Ranch Living, on the Magnificent Mile. In addition, we have developments in Snowmass, Colorado; Century City and Los Angeles, California; and in Arizona. We’ve engaged Frank Gehry to design a mixed-use development directly across from Disney Hall in Los Angeles, where we are also developing The Century, which will be designed by Robert A.M. Stern Architects. We definitely see a trend for vertical luxury living given the convenience it offers in terms of time-value – living close to where you work and play. We see this as a growing trend throughout the country.

Is environmental consciousness affecting the way buildings are developed today?

Related is committed to building green. We are making strides to protect the environment for our children and subsequent generations. Our customers want this and appreciate it.

All of Related’s newest properties are LEED-certified, and registered with the U.S. Green Building Council with anticipated LEED Silver Certification. We were one of the first developers to build a green building: Tribeca Green in Battery Park City. In fact, our development in Snowmass, Colorado, is one of the first entirely green communities.

Is there opportunity for international development?

Absolutely. Recently, we have been aggressively pursued by several U.K. developers to codevelop properties in Europe. Steve Ross and Related were selected among a group of international developers to compete for the development of a very high-profile property in Europe.