REAL ESTATE NEWS

Two well-known figures in commercial real estate are testing their chances in politics, with veteran investor Ethan Penner seeking California’s governorship and Transwestern executive Clark Dean entering the race to lead Georgia.

Penner, best known in real estate circles for pioneering commercial mortgage-backed securities in the 1990s, launched a campaign aimed at voters frustrated with Democratic leadership but hesitant to identify as Republican. Bloomberg described his bid as a “long shot,” noting that while Penner holds stature in finance, he remains far from a household name.

According to California state filings, Penner’s campaign had raised just under $490,000 as of late July. About a quarter of that came directly from the candidate, who has contributed more than $115,000, while his wife, Marisol Penner, has also pledged financial support. Public records detail a past donation she made to a gubernatorial candidate two decades ago, though regulators have yet to update databases with contributions tied to her for the current race. Penner told Bloomberg that he and his wife together have provided more than $160,000 to his candidacy.

Dean, an executive managing director of Transaction Sciences at Transwestern, announced his candidacy only this week. Reporting from the Atlanta Business Chronicle described him as a recognizable name in Atlanta’s real estate world, but The Atlanta Journal-Constitution noted that Dean is “largely unknown in statewide political circles.” That lack of visibility could present a steep challenge as he attempts to emerge in a crowded Republican primary.

Executives leaving high-profile business careers for public office is not without precedent, though success has been uneven. Former American Motors president George Romney served as Michigan’s governor in the 1960s, and his son, former Bain Capital co-founder Mitt Romney, led Massachusetts four decades later. Jon Corzine carried experience as a Goldman Sachs partner and chief executive into New Jersey politics, serving as governor from 2006 to 2010. Herbert Hoover, who worked in mining and international business before turning to government, eventually became president, as did Donald Trump, a longtime real estate developer elected twice to the White House.

But the record also highlights cautionary examples. Meg Whitman, the former eBay and Hewlett-Packard chief executive, spent heavily on her 2010 run for California governor but lost decisively to Jerry Brown. Ross Perot, who amassed a fortune in the tech services sector, mounted a third-party presidential campaign in 1992 but withdrew amid falling support. Former New York City mayor Michael Bloomberg, once the head of the financial data giant that bears his name, proved successful locally but unable to translate his fortune and business legacy into a viable presidential campaign.

Source: GlobeSt/ALM