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THE HEART OF THE MATTER evolving. There's a good chance that neither you, nor your partner, will handle one deal in the exact same way you handle the next. We learn, we grow and we adapt to new roles – deal after deal, year after year. Robert Shemin, bestselling author of "Successful Real Estate Investing," makes this point: "It should never be a 50-50 partnership; someone has to be in control and make decisions, and that person should be you. Make sure you work with silent partners who do not interfere [with day-to-day decision making]. About 70 percent of real estate partnerships fail because two equal part- ners cannot agree on anything." Commercial development is volatile In an industry that inherently involves big risk – you have to expect the occasional loss. And – once again – people are people. There's no tell- ing how principles and standards might change in the face of adversity. Take the case of Stan Kroenke and Michael Staenberg, longtime partners turned legal combatants. For two decades, Kroenke and Staenberg were partners in building one of the country's biggest developers of shopping centers. They became two of the richest men in Missouri. But after a sudden string of events, Kroenke sued his longtime colleague, seeking $20.2 million he said Staenberg re- neged on paying him as part of the unwinding of their complex web of real estate holdings, and fighting to block repayment of a $1.2 million loan Staenberg had made to their company. That was three years ago. Then, in November of 2015, the dispute spilled over into the St. Louis Rams owner's potential plans for a Maryland Heights retail development. Staenberg accused Kroenke of going behind his back to acquire land in Maryland Heights. This legal feud is a prime example of what could – and likely will – go wrong when big money and bigger risk is involved. When each partner has different expectations and a different idea of what is fair, the road to recovery is a long one. Two is not better than one Having multiple "faces" of a company can be dangerous for several reasons. Commercial development is built on trusted relationship and a trust in the potential of a mutually beneficial outcome. This faith is built on consistent messaging and confidence in one person; it cannot be replicated with a second company figurehead. Consistent, trustworthy messaging is not only essential to rela- tionship-building, but also to building a solid public reputation. If media were to catch wind of a statement your partner made, and you don't agree with it, your brand's credibility is on the line. I know firsthand that it's tough to operate a business while constantly worrying about what someone else is saying and doing. When more than one person is in charge of a brand – each making their own decisions and stating their own opinions – the results can be disastrous, especially in commercial real estate development. Having been involved in commercial real estate development for more than two decades, I've experimented with several differ- ent business models and partnership structures. The takeaway I want to share with you? Don't waste your time on experimenta- tion; general partnerships in this industry do not work. CCR In an industry that inherently involves big risk – you have to expect the occasional loss. There's no telling how principles and standards might change in the face of adversity. 40 COMMERCIAL CONSTRUCTION & RENOVATION — JULY : AUGUST 2016 As CEO of Missouri Land Company, Matt Burgess has been developing commercial and residential real estate for more than two decades. For more, www.molandcompany.com or call 573.701.0972.