John Jacobsson is a partner with Area Property Partners, formerly Apollo Real Estate Advisors, a private equity fund manager based in Midtown. He has been associated with the company since it was founded in 1993. Area has invested more than $11 billion in properties such as 1290 Avenue of the Americas, which the company purchased in foreclosure in 1993 together with partner Georgia-based Jamestown and sold in 2006 for $1.25 billion. Its current investments include the Apthorp condominium conversion and a portfolio of 47 Queens apartment buildings. It
was also a development partner at the Time Warner Center. Its current
investments include the Apthorp condominium conversion and a portfolio
of 47 Queens apartment buildings. Jacobsson spoke with The Real Deal about the firm and how he viewed buying in a down market.
 
What is different between the early 1990s downturn when Area was founded and the current recession?
There are two big differences. First off is an obvious one, which is
[that] most of the debt on commercial real estate in this country that
was originated over the last 10 years is tied up in [commercial
mortgage backed securities]. The second big difference… was the
creation of the Resolution Trust Corporation [that] took whole loans
owned by thrifts and banks that had failed and simply sold those off in
big portfolios. [more]