Lance Armstrong switches gears into real estate

When seven-time Tour de France winner Lance Armstrong sets out to do something, success usually follows. So his recent foray into the world of real estate could very likely result in success not only for the company, CSE Realty Partners, but also for the future of real estate.

The privately held investment company, based in Austin, Texas, is setting its sights on central Texas, with a focus on buying and developing office, industrial, retail, hotel and multifamily commercial real estate.

Which means it also has location working in its favor. In the most recent home price indexes from Standard & Poor's/Case-Shiller, Dallas is one of only two cities whose annual losses in home prices have nearly leveled out. Not to mention that Austin itself recently was one of the top cities to which people still were relocating.

CSE Realty says that Armstrong is joined by longtime collaborators Bill Stapleton, his agent, and business manager Bart Knaggs. The new venture will be led by Lance Sallis, a 20-year real-estate veteran, who told The Austin American-Statesman that now is a great time to buy commercial real estate because it's "out of favor."

Sallis said that the window to buy will be open during the next three years, as prices drop.

"It's becoming a buyer's market," he said.

I realize we're comparing apples and oranges here. Obviously, Armstrong's wealth cannot be compared with that of the average American, and the Statesman said he and his partners already have invested a "substantial" amount of their own money into this new venture.

But I'm still holding out hope that Armstrong's celebrity status may bring attention back to the idea of entrepreneurship and investing, especially as real-estate prices remain near their bottom around the nation. 

It sounds like some of us already are hearing the message loud and clear, since the economy finally picked up its pace in the third quarter with a little help from the Cash for Clunkers program and the first-time homebuyers tax credit. But a little more confidence right now sure won't hurt.

CSE probably is banking on Armstrong's celebrity status also attracting investors, but it didn't stop there. Also on board is Patrick Jeffers, a former NFL player who previously worked with Sallis and will be overseeing the new venture's investment strategy, according to the Statesman.

• Thanks to BusinessWeek for its post