David Walentas’ Two Trees Management Company There are many entrepreneurial characteristics that define Walentas, all of which have contributed to his success. A successful entrepreneur must have vision and intuition, as well as the confidence and determination to act upon these qualities and make them a reality. Next, the entrepreneur must be willing to take risks, be focused, resourceful, and be able to make it through difficult times. Through the gentrification of DUMBO, Walentas has demonstrated each of these traits and has reaped the benefits of his efforts many times over. He has made a stunning profit by creating something where there was nothing and exemplifies the perfect example of the entrepreneurial spirit.
Throughout this project Walentas faced adversity in the form of politicized opposition, economic down turns, and undertaking a project that many would have viewed as impossible. However, these adversities did not stop him, he believed in his idea and in himself. This confidence in no uncertain terms enabled him to reach the top of his industry and become known as a real estate mogul. He had a vision and was determined to carry it out to successful completion.
Through his perseverance he was able to turn a run down, abandoned neighborhood into a vibrant and flourishing area that has attracted many businesses and residents. Walentas’ plan incorporated various different ways to add value to his properties. First, he took the deteriorated buildings that he purchased and converted them into offices and high end condos. He did not just go in there and frame up offices as some developers would do either. The strategy that he played out was to construct offices that were fully equipped, ready to move into, and get down to business.
Also, he deliberately attracted businesses that would add to the culture of the neighborhood and that could work together. Doing this has helped to create a tight nit business community which is a great value for any business tenant occupying space in DUMBO. In addition to his efforts to facilitate a networking friendly business environment, Walentas also went the extra mile to add value to the neighborhood by organizing events, working toward developing a park, and creating a hometown feeling.
The culture that he created has attracted business and restaurants and produced quite a demand for space in DUMBO. Given the success that Two Trees Management Company has had with this project it would seem natural that they would continue to pursue real estate rehabilitation and development. However, for a company of this size and net worth it would be a good idea for them to diversify into other areas as well. It seems that Walentas has a passion for making things better and I would speculate that he should continue fulfilling that passion.
The suggestion that the company branches out into areas that are related to real estate development, such as interior design and maintenance, makes sense. Doing this would give the company additional streams of income while eliminating the need to contract certain work out to other companies when they are in the development stage of a project. Considering the vision and determination that Walentas has to make a difference, Two Trees Management Company is certain to enjoy continued success and make a positive impact on the communities that they serve.
There is no doubt that Walentas has created a competitive advantage with the DUMBO project. He has produced a high quality product that has generated above average profits to say the least. In fact, the gains are quite astounding. However, the fact that Walentas’ holdings at the time of this case study are finite, meaning that once each space is leased or sold he cannot produce anymore, it would not be possible for him to sustain a completive advantage over others in the industry.
While there may continue to be a strong demand for space in DUMBO the resources (property) that Walentas has available are inelastic on the supply side of the equation. He cannot simply produce more space to meet the demand, therefore without acquiring more property or branching out into other areas of business his company would cease to experience any growth and therefore lose its competitive advantage.