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EDITOR-in-chief Jim Potter jpotter@ddcjournal.com Vice President OF SALES Chris Broadbent cbroadbent@ddcjournal.com Vice President of development April Larson alarson@ddcjournal.com CREATIVE DIRECTOR Silvia Ortiz sortiz@ddcjournal.com production DIRECTOR Joel Fohrman jfohrman@ddcjournal.com ASSOCIATE Editors Steve Bailey, Doug Straka, Aaron Bollwahn, Andrea Tarrell, Joe Camp, Kyle Danowski, Tim Backes, Michelle Tomczak, Alyssa Connolly, Dan Gross, Richard Lyons, Jared Halverson, Crystal Rennicke marketing managers Natalie Bartolozzi nbartolozzi@ddcjournal.com Selena S. Lengsavath slengsavath@ddcjournal.com EDITORIAL CO-ORDINATORS Jordan Armstrong jarmstrong@ddcjournal.com Evan A. Chadick echadick@ddcjournal.com Teagan M. Clark tclark@ddcjournal.com Chris DeMarchi cdemarchi@ddcjournal.com Kinsey Johnson kjohnson@ddcjournal.com Colleen E. Kiel ckiel@ddcjournal.com Joe Marton jmarton@ddcjournal.com Emelia Tan Gim Seet etan@ddcjournal.com Brent Sherman bsherman@ddcjournal.com Lauren Stanwyck lstanwyck@ddcjournal.com Clare Zammitt czammitt@ddcjournal.com ADVERTISING SALES manager Anthony Franklin afranklin@ddcjournal.com

In the fall 2012 issue, we have sourced some wonderful

slow and (arguably) steady road to recovery. A great

content for you. It was a real privilege to discover more

many within the industry are crying out for the oft-

about the work that several notable companies are in-

pledged infrastructure investment, in the face of in-

ADVERTISING SALES executives Eddie Bonilla ebonilla@ddcjournal.com

volved with at the Barrick Gold Pueblo Viejo mine in the

creasing public concern.

Troy Brehmer tbrehmer@ddcjournal.com

ThyssenKrupp Polysius, Chemithon and Geocivil have collaborated with a forward-thinking C-suite at Barrick

number of Americans express skepticism about the

Monica J. Burton mburton@ddcjournal.com

to ensure a project of significant achievements during

activist role of government (that) Obama espouses; 61

Bradley Cain bcain@ddcjournal.com

Dominican Republic. Entities such as W. W. Grainger,

the construction and remediation process so far.

A recent USA Today / Gallup poll found that a “record

percent say the government is trying to do too many things that should be left to individuals and businesses.

Steve Reenders sreenders@ddcjournal.com

The commercial section also generated great interviews

That’s the highest number since Gallup began asking

from a number of people, notably Jack McKinney and

the question in 1992.”

contributing writers Phil Warner, Sarah Avallone

Brian Kozak, giving us perspective from core metropoli-

Copywriting associate Dennis Hart

tan markets either side of the border and Bell Helicopter’s

Is it not incumbent on us then, as an industry, to ensure

Steve Lehr introduced us to a prime example of corpo-

the public understands the difference between critical

rate investment for the future strength of their business.

investment and entitlement spending?

The coming Presidential election is thus starting to take To advertise or for inquires for this publication please call 312.577.7200 or e-mail contact@avenirpublishing.com

on increased importance as we head further along the

Jim Potter Editor-In-Chief

Publisher’s Note: The opinions expressed by interviewees, contributors and advertisers within this publication do not necessarily coincide with those of the editor and publisher. Every reasonable effort is made to ensure that the information published is accurate, but no legal responsibility for loss occasioned by the use of such information can be accepted by the publisher. All rights reserved. The contents of the magazine are strictly copyright, the property of Avenir Publishing, and may not be copied, stored in a retrieval system, or reproduced without the prior written permission of the publisher.


vol. 5 - issue 3

FALL 2012

10 08 A Test Of Patience Construction Forecast

30 Cawley Chicago Growing A Specifically Focused Commercial Real Estate Company

46 Midwest Realty Group A Corporate-Oriented Strategy Helps Establish A Formidable Reputation

17 Bell Helicopter Textron Consolidating Space at Bell Helicopter Textron

32 Founders Properties Strategic Risks And Strong Partnerships Provide Attractive Investment Opportunities

48 The Douglas Allred Company Creating Attractive Yet Efficient Designs For A Long Term Hold

20 The Smith Center for the Performing Arts A Performance Center Befitting Of Las Vegas

34 Bridge Development Partners Specializing In Healthcare Real Estate Building Success In Industrial Real Estate

50 Moses Tucker Real Estate A Local Real Estate Firm Is Playing A Key Role In Little Rock’s Transformation

36 Phillips Edison-ARC High-Performing Grocery-Anchored Shopping Centers

52 MPI – Mall Properties Inc. An Opportunistic Approach To Commercial Real Estate Creates A Market Leader

commercial 28 J.F. McKinney and Associates Developing High-End Downtown Real Estate

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Barrick Pueblo Viejo

Island’s Largest Private Economic Investment In Mining Project Focuses On Best Practice

DDC JOURNAL | FALL 2012

40 First Capital Realty Inc. Steady Growth in Urban Shopping Centers

54 Champion Partners A Focus On Tenant Relations Creates A Champion Partnership


US LBM Holdings 56 Orchard Commercial Local Knowledge And A Streamlined Process Yields Results For Clients And Community

Strategic Growth In The Building Supplies Industry

22

58 RealtyLink A Fully Integrated Real Estate Development Firm government 62 3CDC Revitalizing The Historic Areas Of Cincinnati 64 City of Calgary Enhancing Infrastructure in the City of Calgary 68 Administrative Office of the Courts Updated Court Facilities For San Bernardino County infrastructure 72 Sonoma-Marin Area Rail Transit (SMART) A SMART Transit Option For California Receives A Warm Reception 74 RTD FasTracks A Commuter Rail Line For Denver Sets A New Precedent mixed-use 78 Poe Companies River Park Place Sports The Best Of All Worlds 81 The Mandel Group, Inc. Reinvigorating Milwaukee’s Park East Neighborhood 84 Briarwood Organization Concrete Partnerships And A Passion For Its Business Earns A Solid Reputation 86 MC Companies A Focus On The Client’s Bottom Line Ensures A Specialization In Multifamily Housing 88 Elad Canada Building A Foundation For Success multifamily 94 The Joseph Group Embarking On Efforts In Senior Housing 96 Insight Property Group Experts In Multifamily Development Opportunities

98

NorSouth Developments Senior living for an aging population in the Atlanta area

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184

Fairfield Homes High-Quality Construction For Long-Term Property Management

100 Preface Group Leading The Way In Urban Revitalization 102 O’Shanter Development Developing Multi-Residential Properties in Toronto 105 Abbey Residential Creating a Profitable Company through Strategic Development and Repositioning of Apartments 108 Thor Equities Thor Equities Flourishes With Investments In History 110 GableS Residential All Aspects Of Multifamily Communities Improved By Conscientious Developer 112 Schottenstein Real Estate Group Award-Winning, Resident-Focused Development 114 DEI Communities Strategic Investment In Smaller United States Markets design build

136 6

Treasure Homes Building Affordable, Practical Homes With Residents In Mind

DDC JOURNAL | FALL 2012

118 Proctor Construction Company Leveraging Local Expertise For Solid Growth 120 Manley Design & Construction Management Industry Knowledge And Best Practice In Construction Management

healthcare 124 College Street Partners Specializing In Healthcare Real Estate Development 126 HealthSouth Corporation Attention To Detail Underscores Reputation As A Leading Healthcare Developer 130 Development Solutions Group Top-Notch Development Solutions For The Healthcare Industry green building 133 MP Lundy Construction History Of Respect, Green For The Future 138 Pheasant Hill Homes Pheasant Hill Home’s Focus On Green Building Starts Local Movement affordable housing 142 Housing Authority of Columbus, Georgia Taking A More Active Role In Development Yields Huge Results For Housing Authority 145 Topeka Housing Authority New Developments For The Topeka Housing Authority 148 New Hampshire Housing Finance Authority Creating Affordable Housing To Benefit Residents, Employers And Businesses 150 The Whitsett Group, LLC The Whitsett Group’s Focus On Urban Development Leads To Growth


152 Pioneer Housing Foundation Meeting A Need For Affordable Senior Housing

176 The Partnership Helping People, Changing Lives And Creating Partners One Development At A Time

154 Meta Housing Corporation Affordable Senior Housing For Southern California

178 Bridge Street Development Corporation Affordable Housing For All In Central Brooklyn

158 Region of Peel Affordable Housing With A Sense Of Community

181 PIRHL Building For Immediate Need And Long-Term Flexibility

161 San Antonio Housing Authority Housing For San Antonio Residents In Need

189 Millennia Housing Development Quality Development For Distressed Properties And Communities

164 Delaware Valley Development Company Creating Affordable Housing In The Mid-Atlantic Region

education

166 Seawall Development A National Model For Community Revitalization 168 Rural Neighborhoods High-Quality Housing For Farm Workers

194 Washington University School of Medicine A New Cancer Center For Washington University School Of Medicine and Barnes-Jewish Hospital 199 Liberty University Striving For Academic Excellence At The Nation’s Largest Nonprofit University

170 Omni Housing Development LLC Omni Housing Establishing Affordable Housing In The Empire State

202 Southern Methodist University Fulfilling A Strategic Campus Master Plan

172 Chinatown CDC Affordable Housing For The Whole Chinatown Community

204 Campus Apartments Helping Universities Achieve The Best In Student Housing

174 Rea Ventures Group Expanding To New Markets In Order To Grow Their Business

206 dck pacific Building New Futures At The Crossroads Of The Pacific

property management 209 MetCap Living A Full-Service Approach To Real Estate Management 211 Armadale Property Management Integrated Operations And Carefully Managed Growth Remain Critical 214 Atlantis Realty Services A Proactive Approach Reaps Dividends For Asset Manager 216 The Kislak Organization Over A Century Of Experience Across The Country 218 Ontario Property Management Group Top-Quality Property Management For The Ontario Region 220 LumaCorp Real Estate Strategies For The Long Term 223 Lee & Associates NYC In New York‌Anything Is Possible For James Wacht 226 Cassidy Turley Steady Growth in the D.C. Market 228 Urban American Management Improving Buildings With A Keen Eye And A Hands-on Approach

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A Test Of Patience Construction Forecast

It is a test of patience and endurance isn’t it, patience (and a “All politics is local.” Realizing politics cannot — and probably little faith) that the economy will recover and find the endur- should not — be ignored in the current political-economic ance to keep moving ahead. Lack of patience and endurance environment, we asked panelists to give their opinions of imis taking its toll on the construction industry as we hear about portant issues both global and domestic. On the global issues failures and bankruptcies in the news. When we asked pan- list, the potential impact of increasing inflation as the result of elists this quarter which global economic issues would have U.S. monetary policy and the collapse of the European Union the highest potential negative impact on their U.S. market topped the list. Other issues, like debt default in Greece or strategy, one executive remarked; “We need a recovery from Spain, were important, but much lower on the list of concerns. the recovery.” The slow national economic recovery has been Topping the list of domestic election-year issues was the need even slower for construction markets. However, signs of grow- to reduce spending on entitlement programs and to reduce ing confidence from NRCI panelists inched the index further the national debt. It is hard to ignore global issues, but this into expansion territory with a score of 59.8, the highest since election, like all politics, will be about national/local issues with its inception at the end of 2007. That is going on five years of foreign policy riding in the back seat. recovery. Will our patience and endurance wear out, or will something happen to either pump up the economy or take the Since NRCI panelists are all presidents and top executives of air out of a slow recovery, setting us back another five years? construction firms, we thought it would be interesting to see Stay tuned, it is an election year. what they might do if elected president of the United States. Tax reform, balanced budgets, cost cutting, entitlement reform More market factors tracked by the NRCI are up rather than and collaboration rather than confrontation were among the down. Even education, lodging and office construction have most mentioned action items from our panelists. In the meanimproved slightly since last quarter. Despite some signs of time, things are improving in spite of this being an election year. weakening, the healthcare component index is maintaining relatively solid performance. Manufacturing construction, on Global Economic Issues the other hand, is looking like the comeback kid with a steady Tracking global economic trends and political issues around improvement since the depth of the recession. The “other” the world and in the U.S. has never been the focal point of category, a catchall that includes water/wastewater, power and the NRCI. Rather, we generally want to provide a reading on federal projects, is expected to be weaker in the near term, domestic markets and market challenges as it affects contracrecovering next year, as hopefully, federal and municipal bud- tors’ strategy and business planning. However, given the curgets for construction improve. rent state of political and economic affairs domestically and around the world, these issues cannot and should not be igGlobal Economic Issues: Politics and Construc- nored. While we note that panelists’ responses and concerns tion were more “local,” they expressed moderate to high concern A couple of panelists commented that the presidential election that a number of issues could have a negative impact on their of 2012 was one of the biggest, potentially negative factors that markets and strategies. For instance, collapse of the European could affect their domestic market strategies. It did not seem Union (EU) ranked second on the list of concerns, behind the to be a matter of who won the election, just the fact that this threat of increasing U.S. inflation. In a recent global poll of is an election year was enough disruption. Continued uncer- Bloomberg customers, “The financial crisis in Europe is seen tainty caused by global and domestic issues was the concern as a ‘high threat’ to the global economy over the next year, acof many panelists realizing the fragility of the recovery. “Tip” cording to more than half of those polled.” Additionally, “More O’Neill, Speaker of the House 1977-1987, famously remarked, than three in five investors identify the European Union as 8

DDC JOURNAL | FALL 2012


among the worst-performing markets over the next year” according to Bloomberg poll results, May 10, 2012. While it may be that many of the potential European crises have already been factored into U.S. markets, these concerns still make headlines and affect stock values. The interconnectedness of global banking and trade can affect political and local market decisions in minutes, thanks to modern telecommunications. Selected comments: Anything that negatively affects job growth will impact how our industry evolves and therefore will impact our business. • As a mechanical/electrical subcontractor in a regional market, we do not see fluctuations in these issues as things that we cannot react to in pricing, and we do not see an economic ebb and flow in our commercial/institutional markets related to these factors. • Cancellation of the Keystone Pipeline and continuing legal challenge by the environmentalists to all coal generation; refusal to allow drilling to occur. • China’s cheap products, both in price and quality, are affecting the U.S. construction industry dramatically, (example: Chinese drywall.) There should be an embargo on ALL Chinese building products until they agree to pay the cost of replacing all such drywall and reimbursing the citizens of the U.S.A. for their losses. • If we don’t control our spending at home, the other global issues won’t matter in comparison. • Our markets are not dramatically affected by specific global issues. It is more an issue of confidence in the economy. With unrest in many parts of the globe, foreign money is returning to the U.S. as a safer place to be. • Partnerships and cooperation agreements with other than United States-based companies are more difficult. Weakness in the dollar can affect our purchasing power on contracts already in place.

The U.S. economy is improving slowly as evidenced by realtors, car dealerships and retail. However, capital expenditures will take a while to follow suit. If, for any reason, the economy stalls in the meantime, capital expenditures may not increase much at all.

were prevalent in their responses. While it is clear that there are some strong opinions in the responses to the open-ended questions, most have the tone of business leaders frustrated with inaction, indecision, poor planning and uncertainty caused by partisan politics and political agendas. “What we need is predictability,” says one executive echoing the opinion of many of his peers. “Do what is right for the country, and get rid of partisan politics,” says another. Many panelists exhibit what they have learned as business leaders, that inaction stifles business and collaboration and compromise can make projects and even governments run smoother. Selected comments: A new Congress might help. After the failed government stimulus program, it should be evident to those who can be objective that the private sector is the only sector that can drive lasting and impactful growth. • As it usually happens with government, once the horse is out of the barn, they respond with over regulation. Lending is still not anywhere it needs to be, and the lenders are still afraid of doing so. • Educate the public that there is a big difference between investing with infrastructure in the future of the country compared to spending on entitlement programs. Investing is not the same as spending! • Fostering an environment of collaboration instead of intractable positioning. • Growth and financial responsibility for the country. • Make it wise to invest in infrastructure and to hold real estate assets for the long term. Severely penalize and tax the brokerage industry. They add no value to the process. • Questions beg for answers that wind up being counterintuitive. For example, “cut, cap and balance” necessarily results in reduced commitment of funds to build a fed lab in Kansas, so the issue could have large impact, but the issue lacks direction as to which outcome you “rank.” On the other hand, typically rating increased taxes as negative to construction objects to the notion that increased federal income funds increased fed spending on projects!

• •

Reduce influence of unions on construction procurement, PLA, Davis-Bacon, etc. • Reversing the decline in education in this country. • We need a good energy policy that will enable our Presidential Election Issues and the Future utilities to plan, spend and build. Our current leadof the Construction Industry ership has no policy, which is even worse than bad Reducing the deficit and balancing the budget along with policy! harnessing union or “big labor” powers were political is- • What we need is predictability. sues mentioned with some frequency as being important While there are many differences in opinions, there seem to the construction industry in the upcoming election. In to be agreement that the government would benefit from their comments and additions to the list of election year a better business management and leadership model. In issues, panelists noted a number of concerns important the meantime, growth in nonresidential construction will to business and the construction industry. Reducing red continue but at a slow growth rate until we can get the tape and regulations that stifle investment and lending banking system and the election sorted out.

about the author Name

Philip Warner is a research consultant with FMI, management consultants to the construction industry. He specializes in construction industry market research and manages FMI’s Nonresidential Construction Index survey. The survey is conducted and published quarterly for the U.S. nonresidential construction market. If you are an executive for a construction firm in nonresidential building markets and would like to become a panelist for the FMI Nonresidential Construction Index, please send your information or questions about this survey to Phil Warner at pwarner@fminet.com

FALL 2012 | DDC JOURNAL

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The Barrick Gold Standard Island’s largest private economic investment in mining project focuses on best practice

When one thinks of mining, the word “sustainable” usually doesn’t come to mind immediately. After all, how can something be considered sustainable when its main focus is to extract a substance from the earth? While public opinion tends to lean toward less illustrious adjectives to describe mining, Barrick Gold is working to instill a new perspective on the age-old practice, thanks to its new project at the Pueblo Viejo Mine.

Barrick Pueblo Viejo President Manuel E. Bonilla Location Pueblo Viejo, Dominican Republic

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DDC JOURNAL | FALL 2012

was for the reclamation of a mining operation that was left previously unfinished and caused significant impact to the environment around it for many years. The project was essentially born as an environmental initiative.” Without the proper steps taken to close the mine by its previous operators, the environmental damage attributed to Pueblo Viejo was substantial. Soil and water pollution, the erosion of earth around the mine and the continued affliction of plants and wildlife all stemmed from the poor practices undertaken when the mine was previously open, as well as the inability to properly clean up after its closure. As a result, phenomenon like acid rock drainage in the area has been traced back to the mine.

The company has undertaken the reclamation project put forth by the Dominican Republic government in order to fulfill three main focuses that previous incarnations failed to properly execute: environmental soundness, regional economic development and proper communication with local authoritative bodies. Through these initiatives, Barrick hopes to reclaim Pueblo Viejo not only in an “Our main goals regarding the environment around industrial sense, but also as a reinvention of the Pueblo Viejo are simple: clean up the area, solve Dominican Republic’s approach to best practice. the acid rock drainage issue by eliminating low PH levels in the water supply and maintain and en“Pueblo Viejo is a project that started as an interna- hance the air, soil and water quality,” Bonilla says. tional tender from the Dominican Republic govern- “The previous operator did not perform a satisfacment in 2001,” says Manuel E. Bonilla, President tory mine closure, to which all of the negative effor Barrick Pueblo Viejo. “The basis of this tender fects that we are seeing today are attributed. The


government has this legacy of poor operations to deal with, so the chief concern of this project is an environmental one.” SUSTAINABLE ETHOS This is where Barrick Gold’s sustainability philosophy plays into the mining process. Though the concept of mining is old, the company’s methods and techniques for creating a safe, environmentally friendly mine are part of a new-age way of thinking. The company will combine methodology with technology in order to execute a mining practice that’s far beyond people’s expectations for what safe quarrying should look like.

When we do mine closure, we will plant vegetation for reforestation, including 57 types of native flora,” Bonilla says. “In fact, about 17 of the plants that we’ve discovered to be indigenous to this area have very little scientific research, which means we will be taking the responsible route in doing our own

EPSA-LABCO EPSA-LABCO, Consulting Engineers, a local firm, was awarded the bid to engineer and manage the construction process of providing roadway clearances and adequate structural support over 125 kilometers and 27 bridges, four (4) autoclaves with 1050+ tons each, and 120+ equipment parts for industrial machinery of oversized dimension and weights. Each transport exceeds by as much as 10 times the official country codes for standard vehicles loadings on bridges and roads. After completing the design, the Ministries of the Environment and Public Works issued the corresponding permit licenses.

One of these innovations will be the use of sophisticated autoclave technology, which will process the sulfur rich material which today is a major component to acid rock drainage. The great advantage of this is that through the autoclaves, by-products that are created are dealt with completely, and nothing goes out to the atmosphere, the water or the soil. Through the autoclave, Barrick Pueblo Viejo will be able to extract sulfuric acid and neutralize it with lime rock to form gypsum, a neutral, inert compound. “While we process our ore, we’ll be neutralizing acid-forming sulfurs,” Bonilla says. “Simultaneously, the effluents treatment plant will be a key element of our plan. It will handle the water run-off, cleaning up residuals that have plagued this water supply for years. The result will be a significant improvement made to the quality of water, air and soil.” Part of Barrick’s quest for continued sustainability during mine operations over the next 25 years is to also focus on the vegetation in the area. The area has been void of much of its natural foliage and has seen the overall number of plants reduced to a minimum. A goal outlined in Barrick Pueblo Viejo’s sustainability plan specifically targets plant life in the area for rejuvenation through responsible replanting. “We have given the area around Pueblo Viejo a biodiversity review. FALL 2012 | DDC JOURNAL

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Pueblo Viejo Plant

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Page 2 of 2

research and determining how best to grow our plants, while documenting it for future generations and the scientific community.” COMMUNITY FOCUS Independent research has not only benefitted the plant life in the Pueblo Viejo area, but also the people. With such a large project and a history of poor results at the former operation of the mine, Barrick Pueblo Viejo was determined to overcome the previous failures of mining in the area and instill hope in local communities by engaging in a positive form of market research before starting the project.

ning the support of local entities through involvement on a direct level. “Pueblo Viejo has been in operation since 1505, when the Spaniards opened it,” Bonilla says. “Despite havGeocivil Geocivil is a well-established exploration company with deep coredrilling capability (over 1,200 m), ample experience and updated equipment for geotechnical and mineral exploration, as well as for ground improvement and remediation. Over 2,700 projects throughout the island, 100 employees, 18 drill rigs and almost 60 years of continuous work confirm our capabilities. Geocivil has been working at Pueblo Viejo since 1969 and periodically throughout the following decades, and recently since 2002 providing geotechnical, environmental, hydrological and mineral exploration services for Barrick’s state-of-the-art mining project construction. We congratulate Barrick for this extraordinary project and appreciate the trust placed in us.

“Many things have been challenging us since the project started to take shape. The first obstacle, and the largest of them all, definitely concerned the people of the area who had already lived through a devastating 25-year project,” Bonilla says. “So, we took a proactive approach to addressing concerns. Instead of telling people what we were going to do, we asked them what they wanted to see from the project.” The transition between projects has not been quick, either. With such big issues to deal with after the last mine venture, both the Dominican Republic government and its people have been reluctant to allow the reclamation to be undertaken. Even after Barrick’s accepted bid on the project, the process was slow coming to fruition, taking years to be detailed into an action plan. “A major challenge of this project was the eight-year process involving designs and contract negotiation and renegotiation,” Bonilla says. “People began to have doubts about the process because it took so long, but many people don’t realize the ramifications of starting a project of the magnitude of the Pueblo Viejo Mine.” By taking the direct approach to involving local communities and governing principalities, Barrick Pueblo Viejo’s objective is to instill confidence in the Pueblo Viejo mining project that will last through the duration of the initiative. With new technology, better business practices and a foremost knowledge on previous mistakes, the company is win-

• Deep Core Drillining (1,000+ m) • Geotechnical Core Drilling • Specialized In Situ Testing: - Undisturbed Sampling - Ground Permeability Testing - Vane Shear Testing

• Geotechnical Instrumentation: - Monitoring Wells - Piezometers - Inclinometers - Extensometers

• Ground Improvement/ Remediation: - Micropiles - Auger-Cast Piles - Anchors - Pressure Grouting

FALL 2012 | DDC JOURNAL

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DDC JOURNAL | FALL 2012


ing extensive mining projects for five centuries, the country is still inexperienced in mining and mining contracts. People are also unaware of the environmental issues that come with mining, making it harder for them to understand what we are trying to do to preserve it in this current project. We sat down with municipal authorities to explain to them and talk to them about new mining laws, standard operating procedures and how they apply to Pueblo Viejo.” ECONOMIC DEVELOPMENT With such a high potential for growth, yet a long history of lackluster results, the Dominican Republic is also looking toward Barrick Gold to help burnish its reputation in the world’s mining industry. Economic growth, new commerce and a new cash flow to supplement the GDP are all chief concerns of the country, which have been built into the company’s project planning.

many industrious nations around the world, bringing attention and prospecting interests to this new marketplace. “The revenue that the Dominican Republic will receive as a result of the Pueblo Viejo Mine will impact its Gross National Product significantly,” Bonilla says. “The country will see an influx of wealth like it has never experienced before, and approximately five percent of the state’s revenue from the mine will be returned to the regional governments in order to improve the quality of life for their people. Year by year, this will be more money than they have ever seen.”

Communities and principalities surrounding Pueblo Viejo have experienced a significant unemployment rate for decades. Part of Barrick Gold’s plan for the rehabilitation of the job market includes infusing money into local entrepreneurs so that they can begin to bring new commerce into surrounding areas. With new businesses and growing job opportunities, the company’s goal is to create a thriving industry that is completely independent of the Pueblo Viejo Mine so that even after the mine’s closure, the economy of the Dominican Republic and specially in the influence area will continue to function fluidly. “These businesses are expanding thanks to growth from the mine, but they are not dependent on the mine to survive,” Bonilla says. “What we’ve helped to create are sustainable businesses. We start them and they keep growing on their own, independent of our involvement at Pueblo Viejo.” With both new businesses and mine operations to supplement the nation, the Dominican Republic is looking at huge returns on what started out as a reclamation project with an environmental emphasis. The country will experience steady income and sustainable growth comparable to FALL 2012 | DDC JOURNAL

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STEADFAST APPROACH With a steadfast focus on environmental practices, economic development and proper communication, Barrick Gold’s anticipated 25-year venture at Pueblo Viejo appears to be a fledgling projection of success to come. Responsible business practices and environmental concerns are giving way to a new approach to commerce that the Dominican people have never seen, while also contributing themselves to the company’s market-leading portfolio of operation.

Visit:

Email: chemoffice@chemithon.com

Thanks to Barrick Gold’s internationally renowned name, 26 operating mines across five continents and large land acquisitions on some of the world’s most sought-after sites, the company is bringing more than just money into the Dominican Republic— it’s bringing a stellar reputation of success.

Call:

“This is the largest investment in the history of the Dominican Republic,” Bonilla says. “We owe the Dominican government and its people a successful project, in order to show the world that this is a place that businesses can grow and flourish. It’s not just about success in the mining industry, but also across all industries.” The Chemithon Corporation The Chemithon Corporation has over 58 years of experience in providing chemical process technology, R&D, engineering, process equipment manufacturing and a full range of services to its customers. Chemithon is honored to have been selected by the Barrick Gold team to supply the sulfur burning SO2 gas plant for use in gold mining at Pueblo Viejo.

Grainger For 85 years, Grainger has been helping the North American business communities get their jobs done right and on time. Now, with an expanding presence in Latin America, we are bringing you the products you need to our new branch in the Dominican Republic. With local stock and a will-call counter, you’ll be amazed how fast you can get whatever you need in hand. We stand ready as the perfect partner for the ones who get it done. Visit Grainger Dominicana. Calle J, Nave #4, Zona Industrial Herrera, Santo Domingo, Dominican Republic Tel: 809-518-5245 Email: sucursal.dominicana@grainger.com

www.chemithon.com (206) 937-9954

Pressurized Sulfur Burners for use in: 

Cyanide Destruction in Gold Mines

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2015 Initiative

Consolidating space at Bell Helicopter Textron

Bell Helicopter Employee Center

Founded back in 1935, Bell Helicopter Textron continues to make industry advancements to this day. Focused on company-wide efficiency, Bell is currently building and consolidating its central headquarters in Fort Worth, Texas in a project that will centralize its facilities and bring together thousands of employees who currently work in different locations.

The $235 million project is part of a larger $1 billion company improvement initiative aimed at developing the machines and technologies necessary for a successful future. The 20,000 square-foot first phase of the project wrapped up in February 2012 and included an employee center, cafeteria, Starbucks, meeting room and wireless connections.

Merriman Associates is the company credited with “In order to consolidate the square footage that we the strength of the architectural design for the fourwanted to, we realized that we had to build some phase project, combining a sustainable sensitivity square footage to consolidate into,” says Steve with the aggregation of the above facilities. Lehr, EAM Business Manager for Bell Helicopter Textron. “Over the years, we’ve developed a num- The second phase of the project will focus on the ber of facilities, but as you do that you kind of leave consolidation of warehousing and other redesign a facility trail and despite the best intentions, you work. Scheduled to break ground in late 2012, Bell don’t use them as effectively and efficiently as you will create a 200,000 square-foot, four-story headdid when you first had the plan to implement them. quarters and administration building. We did an evaluation and we realized that we had quite a bit of extra space that we are now going “We are essentially consolidating our intellectual to consolidate into our main facility in Fort Worth.” property into one central location and getting ev-

Bell Helicopter Employee Center

Bell Helicopter Textron EAM Business Manager Steve Lehr Location Fort Worth, Texas

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Bell Helicopter Employee Center group meeting

We have a world-class training facility now, and we are not going to jeopardize that. Anything we do in the training world will be to make it as good as or better than what we have today. -Steve Lehr

erything back to home base,” Lehr says. “We are doing it with the thought of everybody being able to work together and meet in a more collaborative space. We are going to have over two-thirds of our professional and technical staff located within a three to four-minute walk of each other.”

SUSTAINABLE EFFORTS Environmental sustainability will also play a large role in the project, and Bell is strongly committed to green initiatives. The company’s employee center received a LEED Silver certification and joins only a handful of other LEED Silver buildings in the region.

The Fort Worth consolidation project will also in- “In all of the pre-design meetings, the sustainability clude improvements to the Bell Training Academy team is right there helping to make the decisions with a 50,000 square-foot training center. on the buildings,” Lehr says. “The things that we are looking at are the implementation costs and the “We have a world-class training facility now, and we lifecycle costs of any of the decisions that we might are not going to jeopardize that,” Lehr says. “Any- make. Also, we are looking at the perception both to thing we do in the training world will be to make it our community and our people about what we are as good as or better than what we have today. The doing to have a more sustainable work environment.” fact of the matter is that in the Dallas-Fort Worth Metroplex, we have done many studies, and the As a defense contractor producing aircraft, Bell is whole area is one of the fastest-growing places in not part of an industry known for green initiatives. the country. When you have the intensity of flight Despite the challenges, the company has pushed operations that we have, we have to consider for environmentally friendly practices, and has things not only today, but also 10 years from now.” even been recognized for its work in this arena.

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“The work that we are doing is paying off,” Lehr says. “Textron had been ranked 399 or 400 out of the top 500 sustainable companies in Newsweek, and I believe that we’ve now moved up into the top 200. A lot of that has to do with the efforts that we are putting forth and the things that we are doing today that will make us even more sustainable.”

the engineers and the young people who are coming in have to want to come to work at Bell. When they come in, we want them to have an environment that is contemporary and that meets their expectation in today’s world.”

Merriman Associates/Architects, Inc.

These efforts are not only confined to the headquarters project, however, as they are part of a larger Bell initiative called “2015.” In this plan, the company has set goals for reducing energy, waste and greenhouse gas production by 20 percent by 2015, and it has already done so by 10 percent over the past several years. This saves about 22 million kilowatt hours annually.

Merriman Associates/Architects, Inc. (maa) is a Dallas-based Architecture Interior Design and Planning Firm offering Programming, Urban Planning, Architectural Design, Space Planning, Interior Architecture/Design, Graphic Design, LEED®/Sustainable Design, Construction Document Production, BIM/REVIT Design, Construction Observation, 3-D Visualization Services, Graphic Design, Branding Design, TPM (Total Project Management), FEMAT (Facility Employee Mapping and Asset Tracking) and Facilities Move Coordination. This year, maa celebrates our twenty-fifth year of operation, and continues to provide services to clients on a national and international basis, emphasizing repeat clients as the heart of our practice.

In addition, Bell now diverts nearly 50 percent of its waste, compared to the five or six percent it did previously. While the company’s team feels a strong sense of moral obligation to engage in these green practices, it has also found a way to make them profitable. “We’re doing the sustainability and the green effort for two balanced reasons,” says Bill Schroeder, Public Relations Manager for Bell. “It is not just because it’s good corporate citizenship but also because it makes good business sense. We are making our green and sustainability initiatives pay off from a business perspective because of the cost and operational savings that will pay off down the road.” Moving forward, the Bell Helicopter Textron team hopes that the projects will also help make the company more efficient and attractive to top talent in the industry. “We are going to make our space and the facilities that we use more efficient, but it’s also about revitalization,” Lehr says. “As we position ourselves for the 21st century, one of the things that we have to do is attract the top talent in the industry, and FALL 2012 | DDC JOURNAL

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ReynoldsHall ©GeriKodey

A LEED Role A performance center befitting of Las Vegas

Cabaret Jazz ©GeriKodey

The Smith Center for the Performing Arts Vice President & COO Paul Beard Location Las Vegas, Nevada

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Located in Las Vegas, Nevada, The Smith Center for the Performing Arts offers a unique performing arts facility with a variety of performance spaces.

and give them an enlightened approach to the arts. Those are the audiences of the future, so there’s a lot of emphasis on that.”

“It’s a new kind of institution for Las Vegas,” says Paul Beard, The Smith Center’s Vice President and COO. “It’s a fully/fledged performing arts center with multiple venues, and it’s the kind of facility that can accommodate all of the performing arts disciplines with a high level of excellence.”

The Smith Center is the new home of both the Las Vegas Philharmonic and the Nevada Ballet Theatre. The center also offers a series of Broadway performances as well as music, dance and theatre performances from around the world, Beard says.

The Smith Center consists of two buildings and a 1.7 acre outdoor green space, which is also used as a performance area. The larger hall has a 232,000 square-foot auditorium with a founder’s room and grand lobby. The second building houses a 70,000 square-foot education center, as well as two additional venues.

“We have a very robust Broadway series that we are developing, called Broadway Las Vegas,” he says. “We had over 10,000 subscribers going into the first show, which was in early April. We opened with The Color Purple and then have Mary Poppins, Million Dollar Quartet and Memphis, as well as eight more titles and two more specials for the next full season.”

“The best component that we have is our education and outreach program,” Beard says. “We’re working on some programs that take artists into the schools and train teachers to work with kids

The project got underway in May of 2009 and opened its doors this past March. It proceeded as expected, and a special star-studded performance celebrated The Smith Center’s opening.


“It’s pretty much what we had hoped it would be up to this point. We opened March 10 with a one-off spectacular assemblage of icons, artists that are very highly regarded in the industry,” Beard says. “It was a very eclectic mix with people like Willie Nelson, Joshua Bell, Brian Stokes Mitchell and Jennifer Hudson. It was a tremendous lineup and sold out, and it was very well received and it got lots of national interest.” Local residents have shown strong support for the new performing arts venue.

If we want to make the Troesh Studio Theater a black box, we can do that, but at the same time if we open it to outdoor light, not only do we gain the LEED points on that, but we also enhance the ambiance in the room.” Other green features include high-efficiency lighting, highly efficient HVAC systems, space for bike racks and low-emission parking spaces in the parking garage. Beard hopes that as the years go by, the center will continue to bring the highest caliber of performing acts for Las Vegas residents to enjoy.

“So far, the public has received it very well and people are coming to the performances that we are presenting in droves,” Beard says. “Our “We are here for the indigenous people, the local attendance has been terrific coming out of the box.” population that is here,” he says. “The population of the valley is around two million. That is our QUALITY TEAM primary market, and we want to be able to reach The Smith Center had a total project value of $470 out and provide something for everyone over the million, with $240 million in hard construction course of a season. We now have the building to costs. To produce such an impressive facility, the support that mission.” project required a skilled and experienced team of Helix Electric experts. David M. Schwarz Architects worked with Helix Electric was founded in 1985 based on the idea of creating a team-oriented and employee-empowered corporate culture. It Fisher Dachs Associates theater consultants and was that unique vision combined with consistent, competitive performance that fueled Helix’s rapid rise. Today, Helix Electric is Paul Scarbrough, acoustical designer, to perfect one of the most successful electrical contractors in the nation. With branch offices throughout Arizona, California, Guam, Hawaii, Texas the spaces. and Nevada, Helix Electric has expanded to a full spectrum electrical subcontracting company serving the entire country.

“Typically, you look at the marriage of those three disciplines, architectural design, theater consulting and acoustical design, pulling an integrated piece of work together,” Beard says. “They worked very, very well on this project.” According to Beard, the rest of the team also performed at high levels.

Smith Center for the Performing Arts

“HKS was the production architect, and WhitingTurner was our general contractor and they did a miraculous job of keeping the project on time and on budget,” Beard says. “I cannot say enough good things about Whiting-Turner. They made a believer out of me.” The Smith Center is currently the first performing arts center of its size and scope to achieve a Silver LEED certification, and Beard says that the design and development team made a great effort to maximize green initiatives. “It was very important and it’s not customary for performing arts centers to even contemplate doing it because they are not inherently efficient,” he says. “A great many initiatives were taken. We have daylight coming into the building in places that you normally wouldn’t really see in a theatrical setting.

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Emerging Force

Strategic growth in the building supplies industry

With more than 40 locations in eight states, US LBM Holdings is made up of seven individual companies serving the homebuilding and remodeling industries with products and services like lumber, building materials and supplies.

US LBM Holdings CEO L.T. Gibson Location Green Bay, Wisconsin

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Started in fall 2009 by BlackEagle Partners, US LBM Holdings is a company that first and foremost maintains a focus on customer interaction at the local level. In its short history, the holdings company, based in Green Bay, Wisconsin, has become one of the fastest growing organizations in the industry, and it is now the 15th largest lumber and building materials distributor in the United States.

“I think that we are unique in the industry in that we approach the market a little differently,” says L.T. Gibson, CEO of US LBM Holdings. “We do have some corporate strategies and we gain some back- “We have a good amount of diversity among our end synergy, but our structure allows our operating customers and our products, and that’s a focus in units to have autonomy when it comes to custom- how we go to market.” Gibson says. “We cross the ers and customer service. We offer the benefits of a lines of what some people may like to call specialty larger company, but also still keep that local focus distributors and commodity distributors. We will that keeps the guys in the market to make quick sell a lot of lumber and windows and doors, but decisions and react to customer changes and cus- we will also sell a lot of roofing and siding. Some of tomer needs.” that might traditionally be thought of as specialty


New Cabinetry Showroom Egg Harbor Township 2

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New Cabinetry Showroom - Egg Harbor Township

distribution, but I think we have a different focus on our product mix. We also focus on a wider variety of customers, including the remodeler, the custom builder, the regional builder and the national builder.”

THRIVING THROUGH FOCUS Launching during the worst part of the economic downturn, US LBM has managed to grow through its laser-like focus on the right products and right customers. According to Gibson, addressing key decisions and direction for the company early on has allowed the company to thrive, despite economic challenges.

The organizations within US LBM Holdings all have strong customer bases, and the holdings company has a number of firms in different markets to protect against dips in the marketplace. Stressing “For us, it is about recognizing what reality is versus strong relationships with clients, the individual or- what you would like the market or the industry to ganizations and the holdings group place a heavy be,” he says. “Realizing where we were and where emphasis on not centralizing customer service or client relations. Masonite “The customers don’t deal with the holdings group as a whole. That’s the fantastic part,” says Bryan Tolles, Director of US LBM Holdings. “They get to deal with the local managers who are making local decisions, but that local manager has the resources of a much larger organization. To me, US LBM is unique in that it is the only company in the building product supply business that is operating autonomously in the individual markets in this way. There is nobody else in the market that is doing what we are doing.”

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DDC JOURNAL | FALL 2012

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we were going earlier and making some really “We are actively looking for good partners in new tough choices early on to restructure the business markets and some of our existing markets, which and focus on the right products and the right prod- again really sets us apart from any other lumber ucts mix allowed us to tell our customers that we’re yard out there,” he says. going to be able to make it through this downturn. That has helped us.” As US LBM Holdings grows older, the company plans to continue to focus on what has led to its The team at US LBM Holdings believes that it has early success. created a strong business model and that it is an attractive organization for established businesses. “I really think that the future for us is to concentrate on getting better, growing each of our product cat“If I am an independent who is thinking about sell- egories and staying focused to what has made us ing my business or wanting to join a strong organi- successful and who we are,” Gibson says. “We’ll zation, I like the idea of joining new companies like continue to be disciplined and make good deciUS LBM,” Gibson says. “That would allow me to sions about where to grow and what products to continue what has made me successful over the carry. I see a lot of growth in our future.” years, but still bring some resources on the buying side and the administrative side. I think that certainly helps us with acquisitions.” ITW Instinct According to Tolles, US LBM Holdings had a successful 2011, opening several new locations. The company expects to continue this trend in 2012.

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pg 28-60

commercial

P28 J.F. McKinney and Associates P30 Cawley Chicago P32 Founders Properties P34 Bridge Development Partners P36 Phillips Edison-ARC

P48 The Douglas Allred Company P50 Moses Tucker Real Estate P52 MPI – Mall Properties Inc. P54 Champion Partners P56 Orchard Commercial P58 RealtyLink

P40 First Capital Realty Inc. P46 Midwest Realty Group

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Flawless Positioning

123 N. Wacker

Developing high-end downtown real estate

Prudential Plaza

Established in 1990 as a corporate real estate services firm, J.F. McKinney and Associates has grown into one of the largest provider of office leasing services in downtown Chicago.

J.F. McKinney and Associates Founder and President Jack McKinney Location Chicago, Illinois

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“What separates us from most of the other firms is the quality, experience and knowledge of the people that we employ,” says Jack McKinney, Founder of J.F. McKinney and Associates. “Most or all of our people are former sales executives from other corporate firms, whether it be with IBM like myself or Equity Office Properties. We really know how to create product differentiation for our clients’ buildings so that we can work successfully to sell those attributes and assets.”

311 S. Wacker

nix, Arizona. The firm’s tenured staff maximizes value for properties and earmarks the problem areas that require upgrades and attention. “We take it upon ourselves to identify and mitigate marketing deficiencies in buildings so that they really do capture both the physical attributes that tenants need and the workplace or productivity aspects that go into successful buildings,” McKinney says. PROJECT MARKETING J.F. McKinney’s key strength lies in its project marketing and leasing services. This division of the company currently provides marketing and leasing services for seventeen major office buildings in downtown Chicago.

About 80 percent of J.F. McKinney’s portfolio consists of buildings in downtown Chicago, but the company also has 10 percent of its properties in “You have to produce results for clients,” McKinney the Chicago suburbs and another 10 percent in of- says. “What reinforces the strength of our marketfice developments in Washington, D.C. and Phoe- ing programs in terms of their uniqueness to create


successful results are that we are able to execute them flawlessly. What has really helped us to get those results is investing upfront a lot of time to evaluate each project in depth, then develop a comprehensive marketing plan.

Above all, J.F. McKinney justifies the rental value to tenants.

“We have some properties in the very highest profile in Chicago that require a proactive rationale for why you would pay the highest market rent for office McKinney says that most of the buildings the firm space,” McKinney says. “Then we have taken on takes on have physical or market perception issues, other ones that have been struggling, that we can and the company creates a marketing plan to repo- reposition and create added value for our clients sition properties to maximize their value. but also convince the tenants they have a bargain.” The firm also oversees over 1.5 million square feet “Tenants are buying value,” he says. “It can be the of space in Phoenix, the D.C. area and the Chicago value of the rents, the value of the location or it can suburbs, and McKinney says he’s seeking even be the value of the amenities in the building. Every further expansion. building is somewhat unique, but our job is to take the scope of what the inherent advantages are and “I would really like to take what we do, our passion, aggregate those into tangible benefits that translate our programs and our execution strategy on the road, to real value.” and take it to other cities,” he says. “We have been so successful and focused downtown - and we’ve done DEVELOPMENT ADVISORS selective work in the suburbs - but I’d like to really Although not the primary focus of J.F. McKinney, expand our focus and offer that same level of support, the firm also develops and redevelops commercial service and talent level outside of Chicago.” property for institutions and private corporations both on an advisory basis and as a principal. The Clune Construction Company Clune Construction Company, one of the largest interior construction company’s development specialists have expertise companies in the Midwest, is national in scope with full-service ofin four major U.S. cities plus satellite office in most regions to in management of land evaluation, zoning, entitle- fice serve your needs. Clune brings you exceptional quality across a broad range of expertise that spans from corporate interiors, to smaller rement, design and construction management. tail spaces to intensely demanding projects such as data centers and healthcare.

“We really backed into the development process,” McKinney says. “We were a leasing agent for developers and became intensely involved on the front end requirements for these projects when they were in their conceptual stage. We started guiding clients on the key property attributes, like the floor plan size, amenities offered, lobby and curtain wall finishes, etc., which would appeal to and capture the needs of the targeted tenant markets. This added capability offered to clients successfully grew into a development manager role. J.F. McKinney’s downtown Chicago properties total over 19 million square feet, with two of the company’s newest developments totaling 2.4 million square feet. The firm also has some very high-profile downtown properties in its portfolio, including JP Morgan Chase Tower, 311 S. Wacker and 303 E. Wacker Drive. “We have had some of the best-known properties in Chicago on the marketing/leasing side, including the Prudential Plaza building,” McKinney says. “That was our first assignment ever, where we leased a 35 percent occupied building to 100 percent in a couple of years. We also won the assignment from the Pritzkers for the Hyatt Center, which is one of Chicago’s most recognized new ‘trophy’ office buildings.”

Clune Construction Company is proud to be affiliated with J.F. McKinney & Associates 10 south lasalle suite 300 chicago illinois 60603 phone (312) 726-6103 www.clunegc.com los angeles

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washington dc FALL 2012 | DDC JOURNAL

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The Service Element Growing a specifically focused commercial real estate company

Established over 14 years ago, commercial real estate company Cawley Chicago offers high quality, value-added real estate services to underserved business and property owners, and midsized transactions in the Chicagoland area.

Cawley Chicago’s business lines are; Brokerage, Asset /Receivership and property Management, Investment Sales and Acquisitions and Equity placement and Consulting on the financial strategies of real estate transactions.

“We’re a full-service real estate company and serve With only 14 people working for the firm, it has asour clients as: Strategist to develop the vision; Am- sembled an impressive portfolio of clients during bassador in building personal relationships; Invest- its existence. Currently marketing and managing ed in every financial aspect; Inventor of custom- just under three million total square feet, Cawley ized solutions, Coach through practical application Chicago’s portfolio involves properties that average of our experience and expertise and Student con- less than 250,000 square feet. stantly seeking new knowledge and functionality,” says Dan Cawley, Cawley Chicago President, CEO “Over 70 percent of our clients are institutional and Founder. “Basically, what that means is we owners,” Cawley says. “These are people that are seek to understand and lead our clients through involved everyday in the business of owning real the transaction process by integrating the entire estate for a living. For a firm of our size, that is a organization and their skill sets. remarkable statistic.” When we first launched the

Cawley Chicago President, CEO and Founder Dan Cawley Location Chicago, Illinois

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company in 1998 the goal was to bring a high level of service to the local owners that typically are overlooked by the large national real estate firms. “As the national and international real estate brokerage companies became larger and their overhead expanded, their focus moved to larger, more profitable transactions and on national relationships. As a consequence, the resulting midsized deals received less and less attention from the experienced brokers,” Cawley says. “The result was an opportunity to service the institutional owners on their midsized space with increased service and expertise.” Servicing any and all needs Cawley Chicago designed each business line so they could offer additional services to their client base. For example, their advisory and valuation services include insurance appraisals; material handling and logistic management services allow requirements to be determined from the inside out. These areas of the company will address management plans, tenant relations, accounting, maintenance, budgeting, capital plans, contracts, emergency plans and insurance and property taxes. The firm hopes to grow its property management line significantly in the coming years as the same logic offered on the brokerage side applies to the management side. “We are confident that we can grow this to 10-15 million square feet over the next 3 years,” Cawley says. “The top four property management companies in Chicago each manage over 90 million square feet, and we offer better service. As a result, we may end up with a 5-6 million square foot institutional owner who recognizes the importance of great tenant service. When you look at the market today, property management probably has the single largest impact on a tenants’ decision to stay or move to another space. What is the value of that to owners when you look at the extended lease up timelines in today’s market?”

In their continuing effort to broaden their range of solutions to the existing client base, Cawley created new lines of business in 2010. “In front of all of our services we now have the ability to make valuation and appraisal recommendations to strategy. We feel the value of the real estate market out there and believe we can provide our clients opportunities for understanding, creating, maximizing and maintaining those values.” In addition, Cawley says that the company will soon add a capital markets business line to provide lending and workouts for the consulting business. As Cawley Chicago moves forward and continues to grow, the firm plans to take on more skilled professionals. “We plan to add 4-8 new associates over the next 2 years. Our team hopes to continue to broker and manage more square footage, and extend our reach through the Society of Industrial Office Realtors Global Independent Brokers Network to grow our inbound and outbound referral business.” Active Roofing For over 4 decades, Active Roofing has been driven to be the most dependable commercial/industrial roofing company in the Chicagoland area. We promote a proactive, preventative maintenance approach that can add years to the life of your roof. We help save thousands in expenses and maximize your investment. We also stay ready 24 hours a day, 7 days a week to be there for the unexpected emergencies.

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Following the overall lead of the company and commitment to quality and satisfaction, the construction management division aims to offer superior service for property owners. “There are a lot of construction management companies out there,” Cawley says. “Again, what we are trying to do is bring that service level to our properties and the owners of the properties to have existing tenants stay and attract new tenants. It is really all about providing a difference making level of service to all of our clients.”

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Airwest IX

Potent Rewards Strategic risks and strong partnerships provide attractive investment opportunities

5995 Parkway

Founders Properties President Andy Deckas Location Minneapolis, Minnesota

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Founded in 1997, Minneapolis, Minnesota-based “We have a platform that is national in scope with Founders Properties offers acquisition, financing, a local presence,” Deckas says. “We leverage off asset management and investment services for relationships that we have with developers and high net worth real estate investors. brokers and commercial real estate executives in major markets across the United States. If a poten“We have a team of people that has worked to- tial project comes up, we’ve got a wide network in gether for 15 years,” says Andy Deckas, President terms of relationships, potential service providers, of Founders Properties. “Within that team, there partners and research and knowledge sources to are several of us who have had almost 25 years help us underwrite and get transactions completed of experience. We have experienced literally hun- in multiple markets across the country.” dreds of transactions, primarily in the office and industrial acquisition and finance and disposition SOUND UNDERWRITING business, across the United States.” Founders Properties uses sound underwriting, asset management and execution of thorough busiOver the years, Founders Properties has estab- ness plans to enhance property values. The comlished relationships with a variety of partners to pany seeks out properties with steady incomes, but help in growing its portfolio. These nationwide rela- will also take on a property that other traditional tionships have allowed the company to broaden its core investors might not. scope and focus on multiple markets.


“We are looking at those situations where we have sary was one that we were able to get comfortable some predictability, but we are unlike a traditional with that many others wouldn’t be able to,” he says. true core investor where you need to have all the “That’s where the risk comes in and that’s where we boxes checked; such as long-term lease, major see the potential reward.” market, major location and investment grade credits,” Deckas says. “While we look to have many of Looking to the future, the team at Founders Propthose boxes checked, we don’t have to have all of erties believes that the market will bode well for them checked. We may be willing to take a little bit commercial real estate investment and that the more risk in terms of where we go, and we don’t company’s expertise will lead to continued success. have to be in the biggest markets. Places like Min- “Our goal is to continue the path that we’ve proven neapolis, Denver, Nashville or those types of mar- that we’ve done well for the last 15 years,” Deckas kets would be acceptable to us, as we’re not just says. “Clearly, it’s always nice to expand your invesfocused on the largest markets.” tor universe and get some other people involved in investing in commercial real estate. Given where Founders is also willing to accept a lease of less we are in the overall economy and various alternathan ten years with less than investment-grade tives to investing, for those looking for income and credit sources. Deckas says that this philosophy predictable cash flow, commercial real estate right brings a little more variety and less competition, now is a pretty attractive alternative to low-yielding and the company will not shy away from potential treasuries or low yielding bonds. It’s somewhat of improvements and upgrades. an education process for those who have not invested in the past.” “We have the requisite knowledge in all the necesCushman & Wakefield/NorthMarq sary disciplines across the spectrum of commercial Cushman & Wakefield/NorthMarq manages more than 50 million sq. ft. of retail, industrial and office assets, completes more than $1 billion in real estate that are available quickly to us,” Deckas transactions annually and employs more 500 professionals. Through says. its partnership with Cushman & Wakefield, the company provides inFollowing this acquisition model, Founders Properties recently purchased an office building for $23 million in Minnetonka, Minnesota. The location and features of the building attracted Founders, but Deckas says that the property did not appeal to everyone. “That’s a great example of a building that is well located,” he says. “It’s a suburban Minneapolis location, so while we like that a lot, there are certain institutions that might view that as too small of a property and too small of a market. It is very well built and well maintained, but certainly not brand new. There is some vacancy, which provides a little bit of upward potential.” The property is also anchored by solid credit and a reliable tenant. “It has a very predictable credit tenant with a fairly lengthy lease term left,” Deckas says. “A decent percentage of the building is leased on a shorterterm lease. It’s good credit, but a shorter term lease.”

novative solutions to its occupier and investor clients within the Minneapolis/St. Paul region and around the world, offering Transaction Services, Capital Markets Services, Occupier and Investor Services and Real Estate Advisory. A recognized leader in real estate research, the firm publishes a broad array of proprietary reports available at www.cushwakenm.com.

CoNNeCtiNg More ClieNts to More solUtioNs As the largest commercial real estate services firm in the Upper Midwest, Cushman & Wakefield/ NorthMarq offers the deepest expertise in the region with integrated connections to services available globally. Call or visit our website to learn more...and get connected to the right real estate solutions for your business.

Deckas stresses that taking a risk on a property like the one in Minnetonka has yielded success in the past for the company. “Knowing that tenant, knowing that market and being comfortable with our ability to re-lease if neces-

952.831.1000 • cushwakenm.com FALL 2012 | DDC JOURNAL

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Infill Focus

Building success in industrial real estate

Bridge Point Woodridge

As a privately owned firm, Bridge Development Partners focuses on the development and acquisition of industrial and office real estate in Class A investment-grade submarkets and business parks in the Chicago area.

Bridge Development Partners Principal Tony Pricco Location Chicago, Illinois

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cago is a very broker-controlled town, so having access to that network and being able to pick up the phone and call pretty much any broker in Chicago means we are getting the best real-time information. I think that’s a huge asset for us.”

“We have many years of experience within the in- According to Pricco, Bridge Development Partners dustry starting with Ron Frain, our founding part- does not seek out large distribution facilities but ner,” says Tony Pricco, Bridge Development Part- remains focused on infill multi-tenant industrial ners Principal. “He has been involved in Chicago building/sites. commercial real estate for 40-plus years. Of the four partners, I’m the least experienced with 17 “Many of the larger institutions shy away from smallyears of experience in Chicago real estate.” er projects,” Pricco says. “These transactions take the same amount of time whether it is a $10 million Founded in 2000, the firm looks to develop Class A, or a $100 million deal, and so the big institutions multi-tenant buildings and to acquire and add val- that need to keep the capital flowing tend to focus ue to Class A and B buildings through redevelop- their time on bigger projects. We try to fly under ment or repositioning. It operates with a variety of the radar a bit and not compete with these large debt and equity sources, including pension funds, institutions.” banks, high net-worth individuals and private organizations. The experience within the firm has led to RECENT PROJECTS a number of valuable partnerships. Following this philosophy, the firm has two recently completed projects. 555 Corporate Center is a It has also led to a number of valuable industry re- 162,739 square-foot, four-story, Class A, LEED Gold lationships. “We spend a tremendous amount of certified office building located on Aptakisic Road in time growing our relationships,” Pricco says. “Chi- Lincolnshire, Illinois. The building is a half-mile west


of Milwaukee Avenue near the Lincolnshire Corporate Center and minutes from the Route 22, Deerfield Road and the Lake Cook Road Interchanges. The facility features an above-average parking ratio as well as numerous green design elements.

providers. It’s more about image and flexibility, it’s more about location and it’s more about where the owner lives and where the employees are coming from. They need a building where they can run their business effectively.”

“We have always liked southern Lake County for both industrial and office,” Pricco says. “About 85 to 90 percent of what we do is industrial, and the other 10 or 15 percent is opportunistic office. This project is an example of opportunistic office.”

In the end, good, well located projects that are properly capitalized will eventually be successful. These projects are examples if that. The key is to have the right partners.

From about 1995 to 2008, the Lake County submarket experienced at least two or three large user transactions per year because of the abundance of corporate headquarters in the area. Bridge Development Partners began 555 Corporate Center in 2008 in order to capture this demand, and found success with a large corporate user on a long term lease despite the economic downturn. “We like the site and we like the submarket,” Pricco says. “At the end of the day, it worked out exactly how we planned it. We had a large corporate user that was in the area and expanding rapidly, outgrowing their current space and wanting to upgrade. It just took a little longer than we originally thought.”

“In the past, Bridge Development first found deals and then sought funding, but the current economy has forced the firm to adjust for the future”, Pricco says. “Now we’re seeing that if you can align yourself with a really good capital partner, both on the operating side as well as the transaction side, it makes life a lot easier. In today’s environment, surety of close is as important as paying the highest price, and in some situations, it’s more important. Having a capital partner that can respond quickly is critical.” PREMIER Design + Build Group, LLC PREMIER Design + Build Group, LLC, is your full-service design and construction firm, emphasizing in industrial, medical, commercial and adaptive re-use projects. PREMIER is your builder for life. PREMIER incorporates competitive pricing, efficient construction and scheduling, along with unparalleled customer service for all of your due diligence, design, and construction demands. PREMIER Design + Build Group: the intelligent choice for your construction needs. PREMIER Design + Build Group, LLC P. 847.297.4200 WEB: PDBGroup.com

Started in summer 2008 and completed one year later, Bridge Development also developed Bridge Point Woodridge in Woodridge, Illinois. Located on 19.21 acres in the eastern Interstate 55 corridor, the facility features a 264,183 square-foot and a 119,122 square-foot building. “We look at I-55 as two very different markets,” Pricco says. “The eastern side of the market is more multi-tenant, smaller buildings, with much less vacancy. It’s a very land-constrained market and a much tighter market than the western portion of the market. Route 53 west to Weber Road and down to I-80 is more of a big box market. We try not to play in that area.” The buildings are 30’ clear and feature precast concrete wall panels and steel construction, as well as a TPO fully adhered roof system with ESFR sprinklers. The larger building has 24 exterior docks, with the smaller offering 16. “It checks all the boxes from the institutional perspective, but it really targets the smaller 10,000 to 100,000 square-foot user,” Pricco says. “That user tends to be less price conscious. They still want to get a good deal, but they are not worried about every nickel and dime like the third-party logistics FALL 2012 | DDC JOURNAL

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Lakeside Plaza

Retail Prowess

Phillips Edison-ARC COO Mark Addy Location Cincinnati, Ohio

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High-performing groceryanchored shopping centers

Combing the strengths of two highly reputable lio that consists of more than 250 assets and 26 organizations, the Phillips Edison-ARC Shopping million square feet across 35 states. Center Real Estate Investment Trust (REIT) specializes in acquiring successful grocery-anchored “At Phillips Edison, we have been acquiring groceryshopping centers. The company is the largest pri- anchored shopping centers for 20 years, and our vate owner and operator of these types of centers, reputation in the industry is that of a fully integrated and American Realty Capital (ARC) is a leading real estate operator who is best in-class at what we sponsor and equity raiser. do because we use our own associates from due diligence through acquisitions to leasing to propThe partnership represented an opportunity for the erty management,” the company says. “We use our company to go in with the best in class operator as own team for all of that.” far as fundraising went and to combine that with a leading real estate operator. Combining in this According to the company, much of the company’s fashion allowed both parties to truly focus on the first two decades have focused more on value-add core competence that each one had developed a space, providing its team with hands-on experireputation for. ence in turning around assets. The partnership with American Realty Capital has allowed Phillips Phillips Edison has invested more than $1.8 billion Edison to acquire the financing it needs. Through in shopping centers since 1991, creating a portfo- its broker dealer, Realty Capital Securities, ARC has


Centerpoint

raised more than $3.4 billion of equity for direct investment programs. Together, Phillips Edison-ARC has built a portfolio of shopping centers totaling 702,891 square feet in seven states. SCREENING MECHANISMS Phillips Edison has set screening mechanisms for all of its acquisitions. The properties must be grocery-anchored shopping centers with the num-

ber one or number two grocer in the market. The company also looks for grocery locations in the top 50 percent in sales in a specific market area. “The reason we set that screening mechanism is because we know the traffic that is drawn to these top performing grocery-anchored shopping centers,” the company opines. “Most people shop for groceries two to three times a week, and they shop

Burwood Village Center

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St. Charles Plaza

two to three miles from their home. Everybody has to eat, and whether it is good times, bad times or anything in between, you are going to take care of the day-in and day-out necessities. That’s really the driver for the grocery-anchored model.” The company recently acquired two North Carolina shopping centers anchored by Food Lion. The 66,890 square-foot Westin Center in Fayetteville is 100 percent occupied and features a recently remodeled anchor store. The 62,362 square-foot Tramway Crossing center in Sanford, North Carolina is also anchored by a remodeled Food Lion. The center is 95.5 percent occupied, and the prosperous community includes employers like 3M, Caterpillar Inc. and Pfizer.

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The property is only a few years old and the previous developer lost the property in a foreclosure. This was not an under-performing property however; the former owner had other properties that were not performing, and was forced to seek bankruptcy protection. That allowed Phillips Edison to go in and buy a very attractive asset with a lot of lease term left on it in a very good buying situation. According to the company, the partnership with ARC will allow Phillips Edison to continue to grow and make more acquisitions.

Both had extremely attractive benefits in terms of customer demographic and strongly-performing tenants, respectively.

Through this initiative, it is probable the company will contemplate buying anywhere from 200 to 250 grocery-anchored shopping centers located all across the United States. The existing footprint for Phillips Edison is across 36 states, so by expanding and using the strategies already have out on the streets, the company will have the opportunity to obtain a diverse portfolio with diverse grocers in diverse geographic areas.

Focusing not on distressed properties, but rather distressed property owners, the company recently acquired the St. Charles Plaza in Haines City, Florida. The center is relatively new and is anchored by Publix, the state’s leading grocer.

We are proud of our long standing relationship and honored to partner with Phillips Edison-ARC for all of their insurance and risk management needs. At Neace Lukens there are no off-the-shelf solutions.  We develop insurance, risk management and financial protection strategies that fit today’s complex financial environment and your unique needs.

DDC JOURNAL | FALL 2012

NEACE LUKENS    


Neace Lukens is a proud Insurance and Risk Management partner for:

Richard Lonneman, Managing Director 4000 Smith Road, Suite 400 Cincinnati, OH 45209 P 513.333.0700 F 513.333.0071 FALL 2012 | DDC JOURNAL

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The Right Track Steady Growth in Urban Shopping Centers

Broadmoor

First Capital Realty Inc. is Canada’s leading owner, developer and operator of supermarket and drugstore-anchored community shopping centers located primarily in Canadian urban areas.

First Capital Realty Inc. Senior Vice President of Western Canada Brian Kozak Location Calgary, Alberta

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“Our shoppers are in communities,” says Brian Kozak, Senior Vice President of Western Canada for First Capital Realty Inc. That really simplifies things, and as we become more urbanized that becomes our focus. Given the size of our portfolio, the relationships we have with food stores, drug stores, banks and everyday use type retailers, it makes it much easier for us to conduct business with them.”

functions are handled by experienced professionals within the firm. The Company currently owns interests in 164 properties, including seven under Greenfield development, totaling approximately 22.8 million square feet of gross leasable area and three sites in the planning stage for future retail development. First Capital Realty Inc. receives 90 percent of its annual minimum rent from the primary Canadian urban markets, which it specifically targets. Within these core urban markets, the company identifies well-located properties. Its team examines demographic trends, potential for competitive retail space and existing and potential tenants in the market before moving into a new area.

Established in 1993, First Capital Realty Inc. operates solely in Canada and divides its portfolio among the eastern, central and western parts of the country. The company is fully internalized, as all development management, leasing, property “We are in the seven major metropolitan cities in management, lease administration, legal, con- Canada, which are Vancouver, Calgary, Edmonstruction management and tenant coordination ton, Toronto, Montreal, Quebec City and Ottawa,”


Broadmoor

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Broadmoor under construction

Broadmoor under construction

Kozak says. “Generally speaking, our centers are surrounded by either single-family or multifamily developments. More often than not recently, there has been a focus in terms of the densification in cities of medium and high populations. We find that our locations are benefiting not only from the initial traffic that is generated from those developments or properties, but in fact there is the opportunity to increase the density at some of our properties too.”

of commercial piece. It’s not a huge development, but I think it l demonstrates our niche, which is developing commercial properties in urban areas and benefiting from the additional traffic from those residents and other new condominiums, rental properties or developments in the area.” First Capital Realty Inc. has had a positive experience with the mixed-use project. Kozak says that the company’s focus remains on retail, but it will certainly entertain future residential and mixed-use projects and opportunities.

FLYING SOLO First Capital Realty Inc. undertakes selective development and redevelopment projects. The company typically undertakes these projects using joint ven- “I would say that future mixed-use development ture partners. Marking a milestone for First Capital is possible, but it really isn’t our focus,” he says. Realty Inc., the Broadmoor Shopping Centre in “We are a retail company first and foremost, to the Richmond, British Columbia has become the com- extent that if we can densify sites with retail, our pany’s first solo mixed-use project. The develop- preference is to do that. If the opportunity does exment consists of 47,000 square feet of space, and ist to do residential, we will consider it. We would its major tenants are Royal Bank of Canada, Coast Capital Savings and Safeway. ISLAND WEST COAST DEVELOPMENTS LTD. “Broadmoor is a bit different because it’s the first mixed-use development we completed without a partner,” Kozak says. “We don’t have a lot of residential there, and we are building 68 units on top

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Island West Coast Developments (IWCD) has worked together with First Capital Realty on several projects on Vancouver Island - First Capital and their chosen design groups are a pleasure to work with on all aspects of the project and their team approach has led to many successful projects. IWCD is proud to be part of that team and congratulates First Capital on their continued successes! IWCD is located in Nanaimo, BC and provides general contracting, design/build and construction management services on a variety of commercial, institutional, automotive and retail construction projects.


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Broadmoor is a bit different because it’s the first mixeduse development we completed without a partner. -Brian Kozak

consider selling off a portion or consider a joint venture, because there are additional customers onsite. The other thing to consider is doing rental residential.” UNDER DEVELOPMENT Currently under development, Mount Royal Village is an 118,000 square-foot development located in Alberta. The center’s tenants will include London Drugs, Coast Capital Savings, Oasis Wellness and Met Grill. First Capital Realty Inc. already owns a number of properties in the area, and the addition of the retail development will complement the company’s existing properties.

day necessities or non-discretionary expenditures for people in the community. About 80 percent of the company’s revenue comes from tenants that offer these everyday necessities and products. Common First Capital Realty Inc. tenants include supermarkets, drugstores, banks, liquor stores, national discount retailers, quick service restaurants, fitness centers, medical and other personal services. Taking a long-term view, the company chooses to house tenants that offer products less sensitive to economic cycles non-discretionary good and services that provide consistent growth and sales.

“We are looking to develop a food store in a ma- “We view that as a pretty defensive asset class,” he jor urban retail node,” Kozak says. “It’s similar to says. “It’s not something that is going to see a lot Broadmoor in that it exemplifies the urbanization of variation in terms of swings up or down, but ofof our business. We’re looking at developing a mul- fers an opportunity for steady increases as areas tilevel project, with about 100,000 square feet of continue to grow and steady increases in sales for new retail in addition to the 100,000 square feet things that people are not going to do without.” of retail and office we already own in the area. It’s putting our money to work in an area and bringing In the future, First Capital Realty Inc. plans to cona quality of tenants, structure and traffic to benefit tinue on its current path and add more retail propthe properties we already own.” erties throughout the core Canadian urban areas. In Nanaimo, British Columbia, First Capital Realty “We would like to continue more of the same,” KoInc. is currently developing 72,000 of the 95,000 zak says. “We would certainly like to see more square feet at the Port Place Shopping Centre. downtown, or a denser format of project. We would Some of the development’s major tenants include like to make sure that we can improve our size and Thrifty Foods, London Drugs, BC Liquor Store and our holdings in Vancouver and probably Victoria, at CIBC. At Port Place Shopping Centre, the company least in terms of western Canada. I think we are on purchased an underperforming interior mall and is the right track on a lot of metrics.” developing it into a street-front retail environment. Urban Design Group Architects Ltd.

“Port Place is really a continuation of the story in terms of taking a portion of the site and rezoning it, or for some of the properties, having a residential focus,” Kozak says. “The key development initiative there, which is similar to other projects we’ve undertaken across Canada, is that we demolished an existing interior mall to reformat the center for a better application and everyday use. When we bought underperforming interior malls in the past, we focused on doing exactly that: creating a streetfront retail environment.” In general, First Capital Realty Inc. properties focus on providing spaces for tenants that deliver every44

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Urban Design Group Architects Ltd. (since 1976), provides a full spectrum of professional Architectural and Design Services to the public and private sectors across Canada. Our team includes LEED Accredited Professionals and Sustainable Building Advisors, providing prompt, efficient, professional services with the knowledge and understanding necessary to bring our clients’ visions to reality. Registered Professionals with AIBC, AAA, SAA, MAA, OAA, OAQ, RAIC, AIA, and IDI of BC.

Eton-West construction For over 20 years, Eton-West has been providing front-line service to our valued clients. Strong, reliable relationships with our subcontractors and personal service from senior management provides our clients with quality work, competitive pricing and timely project completion.

Alto Construction Alto Construction is proud of our affiliation with First Capital, an industry leader in the development of neighbourhood and community shopping centres and mixed use developments. We are a full service construction firm whose passion and dedication is to deliver each project as if it were our own. Our focus on planning, attention to detail and creative ‘out of box’ solutions are the foundation for the higher standards that we set for ourselves. This approach has proven to help our clients successfully achieve their goals.


                             

     

Higher Standards.

720-999 West Broadway Vancouver, BC V5Z 1K5 | Tel 604.738.4455 | Fax 604.738.4466

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Real Midwestern Charm A corporate-oriented strategy helps establish a formidable reputation

Midwest Realty Group Principal Rick DeKam, CCIM Location Portage, Michigan

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Word of mouth travels far, especially when it comes to service and quality property management.

proach by not revealing the names of their clients and allowing their results to speak for themselves.

Winning over its clients with exceptional insight and unparalleled expertise is exactly how Midwest Realty Group has made a name for itself, a name that hasn’t lost its value as it continues to spread through the grapevine as a leader in corporate real estate services.

“Most of our clients don’t want to be disclosed, so we are careful about protecting their privacy,” DeKam says. “When we’re working for most of our clients, it’s usually on a confidential basis, which is a big part of the reason we have been able to see so much repeat business.”

“I formed Midwest Realty on January 1, 1998, with a focus on corporate buyer and tenant representation,” says Rick DeKam, CCIM, Founder of Midwest Realty Group. “At that time, I didn’t feel that there was a good solution in the Midwest region to assist corporate users achieve their commercial property objectives, and so the company was created almost out of a necessity.”

Based in Portage, Michigan, Midwest Realty Group serves a wide market across several states. Michigan, Ohio, Indiana and Illinois have all felt the touch of our corporate services through the company’s unique partnerships, property management services, site selection and land tract assemblages and development projects. Midwest Realty Group has executed successful projects over a growing number of areas and looks to continue its expansion in a positive way.

Now, over 14 years later, Midwest Realty Group has built a returning clientele that makes up nearly 95 percent of its business. Corporate clients and big box retail chains have invested their trust in the firm with nothing but good returns and profound results. Even though this growth and polished results may give some companies bragging rights, Midwest Realty Group prefers a more modest ap-

Quality from the beginning At its inception, Midwest Realty Group was unlike any other real estate firm in the region. Many smaller companies had previously made attempts to satisfy the need for a commercial liaison in the real estate industry, but fell short due to unfamiliar-


ity with their clients’ needs, processes and thought processes. Midwest’s approach changed the style of thinking to reflect a more corporate-oriented thought process, oftentimes planning within their clients’ own offices as a collaborating consultant or on an advisory basis.

Group is working to satisfy their client demands that could grow exponentially over the next few years.

“The longer we wait for an upturn in the market, the more the demand increases,” DeKam says. “Until capital becomes more readily available, we’ll conBy working directly with its clients on the same lev- tinue to watch demand increase and out-pace supel, DeKam and his team at Midwest Realty Group ply. If this demand continues as expected, then I have been able to create a unique bond with a think that we’ll begin to start seeing some select number of Midwestern organizations that need to new construction to meet that demand.” develop new locations or relocate existing ones. As the firm continues to experience mostly repeat Until the days of true market prosperity return, business, Midwest continues to hone its skills to Midwest Realty Group will be content in servicing improve their delivery method and improve their the client base that it has grown from its incepclients’ experience further. tion. As a one-of-a-kind realty solution for its small to big box retail clients, the firm is servicing more “Midwest Realty Group is trusted so much that than just its clients; it’s satisfying a base industry we’re often invited into the planning process of big- requirement. DeKam expresses his excitement at ger projects because we’re considered an integral not only Midwest Realty’s growth and reputation, part of a multifaceted solution,” DeKam says. “We but also its unique existence and continued focus are always striving to improve. ‘How do we stack- on excellence. up better against our primary competitor?’ It’s a question that we’re constantly asking ourselves. society of environmentally responsible facilities Rick DeKam and his team at Midwest Realty Group were early When it comes down to a selection or land tract adopters of SERF certification. After endless resources devoted to assemblage process for clients, what is going to seeking LEED certification, they saved time and money by certifying three office buildings and implementing SERF standards in future make them continually disqualify everyone else in renovations of their entire portfolio. Moreover, SERF Profiles are an integral part of their marketing program. favor of us?” Often, business-to-business solutions require countless hours of vetting, strategic planning across multiple challenges and endless project revisions before a successful plan comes to fruition. Midwest Realty Group has been praised for its tailored solutions to address unique and project or client-specific demands. The approach is simple and fits the needs of an industry that is slowly picking itself up after a tough economic decline and the aftermath of a depressed market. “The industry as a whole has been extremely stifled,” DeKam says. “There’s a significant amount of pentup demand, but it’s still largely not being acted on. Developers are still very cautious, while retailers and other users don’t want to stick their necks out yet and expose themselves to any potential wrong moves. Everyone is therefore trying to process much more work than ever before with much less personnel than in previous times.” However, Midwest Realty Group is looking toward the future. With years of experience and the skill to perceive the recovering economy, the company is preparing itself for the coming years of real estate prosperity. While the first signs of healing are making themselves apparent in 2012, Midwest Realty

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Park Place

Nimble Operator Creating attractive yet efficient designs for a long term hold

Park Place Lobby

The Douglas Allred Company Executive Vice President David Allred Location Chandler, Arizona

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Founded in 1970, the Douglas Allred Company is variety of strong relationships, which have yielded a real estate development, investment and asset mutual respect and loyalty and led to great success management firm that works hard to develop prop- for the company. erties that enhance communities and have lasting value. “From the tenant standpoint, relationships are immensely important,” Allred says. It’s much easier “We have a strong balance sheet and very little to keep a tenant than it is to replace one. The rebureaucracy,” says David Allred, Executive Vice lationships that we have with our service providers, President of Douglas Allred Company. “We have general contractors and attorneys are very strong. no committees. We are able to make decisions on It is a team effort. Loyalty goes both ways, and the the spot. We are very nimble in our processes and partnerships that we have developed over time can make deals without having to talk to financial have made us a relationship driven business.” partners or committees. Time can kill deals, so the ability to make decisions instantaneously is a big PARK PLACE PROJECT advantage.” Located in Chandler, Arizona, the Park Place development is situated near many notable employThe Douglas Allred Company engages in land ac- ers and technology industry organizations. It’s also quisition, construction and property management close to several freeways for easy commuting. Like in the Orange County and San Diego, California; all Douglas Allred projects, the company worked to Austin, Texas; Phoenix, Arizona and Jacksonville, create an attractive, yet efficient, design that will Florida markets. The company traditionally takes provide a lifetime of service. on large, ground up, new build projects for office, industrial, retail, multifamily and recreational as- “The Park Place project in Chandler has been very sets. Over the years, the company has formed a well received in the market,” Allred says. “We re-


ally look at how the product matches not only the current environment, but also how it will function 20 years from now.” Allred stresses the importance of a conservative footprint and always keeping a building’s functionality in mind. “There are a lot of properties and buildings that appear interesting and attractive from the exterior, but in terms of trying to get the space laid out and efficient, it gets more challenging with some of the more creative architectural designs,” he says.

anything about data centers, you can’t shut them down, and they are very expensive to operate. We had to replace all the damaged beams while the data center was operating. We would take out one section of the roof at a time and replace it. Every night we’d seal it back up,” Allred said. “This process went on for about a year, but it was the right thing to do.” As the Douglas Allred Company moves forward and continues to grow, its management team hopes to continue to provide opportunities for current and future employees.

The Douglas Allred Company is currently in the second phase of construction on Park Place and has made efficiency a top priority.

“Our company is a very tight group of people, and the number one priority is giving our employees a great place to work and the ability to provide for their families,” Allred says. “Everybody in our office “For every company in America, from the smallest is very dedicated and hardworking. I want to make companies to the largest companies, efficiency is sure they feel that their efforts are valued by the job one,” Allred says. “We try to keep our buildings company and we provide them with opportunities efficient. In our common areas, we stage them very, to grow and succeed.” very nicely, but we don’t let the scale and size get so large that you have inefficient load factors on Phoenix Design One For over 27 years, PDO has been one of the Valley’s leading your buildings.” innovative design studios producing unique and timeless work The second phase of Park Place includes a 92,109 square-foot, two-story office building. The building is the first speculative office construction project to be completed in the Phoenix area since 2009.

environments. Through collaboration with developers such as the Douglas Allred Company, PDO creates practical design solutions that balance aesthetic, economic and functional aspects of interior space. The featured project was designed, permitted and constructed in approximately 90 days.

“Park Place is a multi-year project,” Allred says. “We’ll develop it over the next 12 to 15 years. When completely built out, the total size of the project could be upwards of two million square feet. As tenant demand increases, we will speed up the construction process. The Douglas Allred Company also recently completed a redevelopment project at the acquired Foothills Tech Center. The two-building complex totals 180,000 square feet. One building is 100 percent leased to a data center, and the larger of the two buildings is 98 percent leased with multitenant space. During the extensive renovation process, the company uncovered some unexpected structural issues. “We got into the data center and we were going to reroof it, but we discovered that moisture had gotten into the beams underneath,” Allred says. “The additional structural repairs were not in the budget, but there was not a chance in the world we were going to let people work under a roof that might not be safe.” According to Allred, working around the existing data center created some challenges. “If you know FALL 2012 | DDC JOURNAL

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Driving Downtown Revitalization A local real estate firm is playing a key role in little rock’s transformation

Rainwater Building

Moses Tucker Real Estate Location Little Rock, Arkansas

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Rainwater Building

Different from all of the other commercial real estate companies in the Little Rock, Arkansas market, Moses Tucker Real Estate is a dynamic organization with a sincere, high level of enthusiasm and passion for its projects. Since its founding back in 1984, the firm has strived to make Little Rock a more livable city by offering a full range of commercial real estate services in-house in order to cater to every need that exists in the local market. When managing a property, Moses Tucker Real Estate assumes all of the responsibilities, tasks and challenges associated with ownership for a client. The company’s team has more than 35 years of combined experience in every aspect of the management process, and it currently manages a wide

variety of properties ranging from high-end commercial buildings to affordable tax-to-credit and Section 8 multifamily development properties. The company also offers property management services, in addition to administering maintenance, financial management and accounting services that encompass property performance with controlled spending asset preservation and timely collections. Its team also employs a state-of-the-art property management software for owners and investors to quickly and conveniently track their investments’ performance at all times. Participating in all areas of the commercial and residential market, Moses Tucker Real Estate has


taken a leadership role in downtown Little Rock’s $1 billion revitalization and renaissance efforts. The overall transformation has a focus on urban infill and renewal projects to improve the city as a whole. The company originally developed the idea for the revitalization and the River Market District, and is now responsible for $200 million of investment in the area with projects such as retail shops, restaurants, loft apartments in historic warehouses, upscale condominium properties, first-class hotels and office space and highly desirable residential rentals.

When leased, Moses Tucker Real Estate will assume all management and leasing operations for the property.

The real estate company also has two million square feet currently under management, which is a total that will dramatically expand to over three million square feet when all of the projects in the effort are complete.

Finally, breaking ground in spring 2012, Moses Tucker is also working on a Residence Inn Hotel. The project will cost an estimated $10 million and offer 120 rooms for guests of the area.

RIVER MARKET PROJECTS Little Rock, which is both the capital and largest city in Arkansas, has experienced a great deal of support in recent years from both officials and community members for revitalization efforts in the River Market District. The district is a cultural center of the city and home to a number of art galleries, theaters, museums and other entertainment opportunities, as well as the William J. Clinton Presidential Center and Park. As part of its efforts in the River Market District, Moses Tucker Real Estate is working on the Blass Building project. Built in 1906, the building is on the National Register of Historic Places and is one of the city’s most architecturally significant buildings. The structure, located at 317 Main Street, was originally built as the flagship of Blass Department Stores, and Moses Tucker will transform the building into first-class office space, ground-floor retail and loft-style multifamily residential units.

Moses Tucker Real Estate also recently broke ground on the Arcade Building on Clinton Avenue in Little Rock in spring 2012. The four-level building consists of 80,000 square feet and will house residential space, as well as an auditorium and theater. The project is being developed in conjunction with the public library in a public-private partnership.

Known for its ability and experience in supervising every step of the development process, Moses Tucker Real Estate oversees site acquisition, economic modeling, design, construction and financing, sales, leasing and management and more. Moving forward, the firm will continue its real estate efforts to help transform Little Rock’s downtown, as well as pursue projects and properties in other areas in the state and region.

QUATTLEBAUM, GROOMS, TULL & BURROW PLLC

The $20 million Blass Building project began in February 2011 and is expected to reach completion by the middle of 2013. A 300-car parking garage will be built at the site to serve the restored seven-story building, and much of the financial backing for the project comes from new market tax credits through the Heartland Renaissance Fund of Little Rock. Also available to the market are the Rainwater Lofts. The $750,000 renovation of the building includes 12 multifamily one- and two-bedroom apartment units, which range in size from 800 square feet to 960 square feet. The project concluded in late summer 2012 and was financed by a local lender, being eligible for both state and historic tax credits. FALL 2012 | DDC JOURNAL

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Paramus

Winning Assets An opportunistic approach to commercial real estate creates a market leader

As a privately owned real estate firm, MPI specializes in the development, acquisition and management of commercial real estate. For more than 45 years, the firm has built its reputation as one of the leading owners of commercial real estate with its opportunistic investment platform, operating in 11 states across a broad geographic area.

MPI – Mall Properties Inc. Senior Vice President of Asset Management Ryan Guheen Location New York, New York

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“While our strategy allows us to concentrate capital in winning assets, the resulting operating portfolio is anything but concentrated,” says Ryan Guheen, Senior Vice President of Asset Management for MPI. “In order to operate efficiently, our leasing executive’s office is located near their home market, usually within a short flight of their properties. We also leverage local brokerage talent for certain properties that require significant lease-up.” MPI’s diverse portfolio totals approximately 29 million square feet, with 11 million square feet of retail that includes regional malls, suburban strip centers, urban street retail, and town centers. MPI also owns substantial multifamily units within urban high-rises, suburban garden-style apartments and townhome properties.

Rounding out its portfolio, the company also owns 1,395 hotel rooms and five million square feet of office space. Each retail property type requires different operational approaches, but MPI manages to cover it all. “On the operations side, we have two internal property management executives who own the strategic operating plans for each of our assets,” Guheen says. “For our mixed-use Town Center portfolio, one property management executive oversees a professional onsite management team dedicated to effectively executing the day-to-day operation of each project. For the balance of our shopping center portfolio, another dedicated property management executive oversees a Total Facility Services vendor, who has the resources within each market to execute our strategic plans and to support our leasing efforts.” A FOCUS ON THE INVESTMENT MPI focuses on investment opportunity rather than the asset class, and goes through a comprehensive evaluation process prior to making acquisitions.


“Each asset class operates on a cycle, and rare is the time that all of these cycles are aligned, so we like the investment diversity provided by owning a mix of assets,” Guheen says. “We also like having the ability to stay active, either acquiring and developing or disposing, throughout each asset class’s individual cycle.” Above all, the MPI team considers all of its real estate as long-term investments, no matter what hold period or asset-level investment strategy. “If we can’t get comfortable with a 10-plus year return profile, we probably won’t buy,” Guheen says. “We have adopted this philosophy as a fundamental hedge on our downside risk in light of real estate and capital market cyclicality.” MPI has a practice of seeking talented professionals in the industry, and Guheen says that his past experience working at a large REIT has helped to shape his personal approach to real estate development. “Kimco is incredible just for its sheer size and diversity within the open air shopping center world. It’s the only place that you can see over 1,000 shopping centers in almost every market and class. I worked for a small group of executives that focused almost exclusively on adding value to properties through aggressive asset management and redevelopment.” says Guheen.

With green building gaining more prominence in the industry, MPI has embraced the movement and focused on reusing existing spaces. “We think that the reuse of existing space is really the ‘greenest’ form of development, especially given the amount of waste involved with new construction,” Guheen says. “MPI has a strong legacy of creatively reusing spaces, in some cases entire buildings.” At 99 Hudson Street in New York City, MPI converted a building that was formerly used for printing into Class A loft offices and creative suites. There is also its Parkchester project, a 1940s structure in which the company has converted an unused basement into usable space. “Our property management department has also installed web-based, computer-controlled parking lot lighting in order to boost energy efficiency across the portfolio,” Guheen says. O2 Facilities Congratulations to the leasing, development, and property management teams at Mall Properties, Inc., for your recognition of excellence in the Shopping Center industry. O2 Facilities is proud to be a strategic partner, and has become the choice for retailers and shopping center owners desiring to leverage maintenance and facilities teams to get the most out of their R&M budgets.

ADDING VALUE MPI has several current projects in redevelopment or reinvestment. With projects taking place in Baton Rouge and Hampton, Louisiana, Guheen says there is no single typical MPI property, but the firm consistently looks to incorporate value-add components. “Even though it’s difficult to describe our typical property, our operating philosophy is consistently centered on value creation through a combination of tactics, including income acceleration, expense contraction, credit top grading, densification and aggressive reinvestment at incremental returns on investment greater than 1.5-2 times a property’s underlying cap rate,” he says. As an example of this approach, MPI recently added a Toys R Us/Babies R Us store at Siegen Lane Marketplace in Baton Rouge, and is in the process of adding a major grocer and health club to Mercury Plaza in Hampton, Virginia.

www.o2facilities.com

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Champion Partners Founder Ricky Lyons Location Scottsdale, Arizona

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Founded in 1999, Champion Partners, a Scotts- “If we see tenants having some potential difficulties, dale, Arizona-based real estate development com- then we will be looking at the market plans deeply pany, strives to offer clients, investors and partners to make sure that they have the right number of a superior experience focused on strong leadership people coming in the door and getting the right and an advocacy-driven partnership. amount of revenue so that they can afford to pay the rent,” Lyons says. “It’s never an issue of rent; “We deal with our tenants, and therefore everybody it’s an issue of revenue. Lowering rents does not else, in a totally different way,” says Ricky Lyons, solve anybody’s problems, and all it does is delay Founder of Champion Partners. “Our company has the problem. We think of them in those terms.” a trademark process that we call ‘The Tenant Advocacy Experience’. It is most important that we care As part of this process, Champion Partners has deeply about our tenants.” specific staff members, referred to as ‘advocates’, who work with tenants to solve any challenges they According to Lyons, this focus includes pressing its may be facing. team members to ensure that all tenants at Champion Partners’ properties are happy with their ex- “The advocates are members of Champion’s team, periences. but they advocate the tenant’s position back to us so that we are sure we are getting the best informa“We are simply not successful unless the tenants tion and can help those tenants in the best possible are happy, and we pay attention to that,” he says. way,” Lyons says. “If we don’t pay attention to that with an extraordinary degree, we would not be in business. We MARKETPLACE AT FULTON RANCH worry about them and we spend time with them. Among the scope of its work, Champion Partners deIt’s not just getting a lease done and being in busi- velops shopping centers, office locations and educaness with them, but it’s also about ensuring that tional institutions, and has extensive experience in they are content and in business long-term.” those areas. Arizona has a large number of charter schools, and the firm’s experience with past schools With the experience and staff capable of identifying has proved particularly beneficial while working on and solving complicated real estate issues, Cham- the charter school in Marketplace at Fulton Ranch. pion Partners is dedicated to its clients and tenants, offering services and expertise to provide a variety “We have been really fortunate with what we are doof different solutions. ing,” Lyons says. “That is a school that we need


a transaction for the sale of a 70,020 square-foot land parcel to QuikTrip in the spring. According to Lyons, Marley Park Square has an ideal location in Surprise, in close proximity to the most desirable residential areas, neighborhood retail and employment centers. Plus, its location is expected to become more desirable as the economy improves. “The location is at the confluence of the best neighborhood retail and the best employment center,” Lyons says. “As we move forward through this recession, this corner will have the best of all worlds. Everything that any retailer or office building could want will all be in one place.” Moving forward, Lyons says that Champion Partners will continue to follow its client and tenant-oriented focus and expand its development work with charter schools and commercial developments. “We expect to do two or three more charter schools a year, and we expect to be able to get back into a to work with for a set of reasons, and was delayed position where we are putting in place somewhere in getting started for various development reasons. in the neighborhood of 200,000 square feet a year, We started construction on that school because we in addition to the charter schools,” he says. understood their background and their needs.” The company started the project in early April, and had to finish a building that was only a shell by the end of the month. Working under pressure and with a limited amount of time, Champion Partners had to remove two of the corners of the existing building and construct an addition. The team encountered complicated structural issues, but completed the project in just 22 days. “We did that because we understood what they needed and our contractor has done enough work with them and other schools,” Lyons says. Champion Partners also had a relatively limited amount of time to complete the remainder of the 26,000 square-foot project and the exterior site work, but past experience on similar charter schools enabled the firm to make great progress. “The experiences have been ones that have helped us do things within a time constraint that is rarely done,” Lyons says. MARLEY PARK SQUARE Champion Partners currently has 10 commercial or office projects in the planning or development stages. One of these includes Marley Park Square in Surprise, Arizona, where the company completed

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Stand Out Management Local knowledge and a streamlined process yields results for clients and community Started as a development firm in 1973, Orchard Commercial has grown into one of Silicon Valley’s most successful property management companies. “Quality and integrity are the hallmarks of the company,” says Joe Lewis, President of Orchard Commercial. “Over time, we have developed a much more service-oriented company. We mostly manage properties for financial institutions, such as Morgan Stanley, JP Morgan, Wells Fargo, ING and Prudential. We have about 30 clients; 20 of those are institutional in nature, and the others are smaller, high net-worth individuals.”

Covering all facets of the business, Orchard also offers accounting, construction, mechanical, maintenance, leasing and marketing services. To do all this, the company has auxiliary businesses that support the property management organization, including Orchard Construction and Orchard Services. “Orchard employs about 80 team members,” Lewis says. “About 40 are in-house and 40 of them work out in the field.” ONE STOP SHOP As an organization, Orchard believes that its variety of in-house services makes it a much stronger and more desirable company. Instead of adding time to the lease negotiations by seeking answers to tenant questions, Orchard has the knowledge and capabilities to meet their needs quickly.

Focusing exclusively on commercial properties, Orchard Commercial manages research and development, office warehouse and industrial space in California’s Silicon Valley region, with 10 million square feet in 185 buildings with 500 tenants. Over the years, the company has protected and grown real estate investments in addition to “In our view, those are the critical components of providing tenants with superior service. operating a commercial property,” Lewis says. “In

Orchard Commercial President Joe Lewis Location San Jose, California

Lobby Interior

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every lease deal that is made, there is some tenant improvement and there is some construction that goes on. We are able to know how best to satisfy that need; what that is going to cost, how quickly we can get that done and what the best way is to design that.” The company’s in-house team exudes expertise in space planning, design and construction, which means that it can work closely with clients and be upfront with costs during the lease negotiation process. “Because of our ‘one-stop shop’ and in-house team of experts we can expedite the transaction process,” Lewis says. “Our clients gain confidence in us because time is always of the essence.” Lewis opines that timeliness is of great importance in Silicon Valley, and Orchard’s business model has been specifically designed to expedite deals. “The Silicon Valley is a fast-moving place,” he says. “We’re engaging people’s wish lists, bringing their expectations to light, and then getting it done for them. If you sign a lease with us, our clients know that we are going to deliver the space on time as promised, and they’ll know the people who are going to do the work. That really matters.”

community in which it works. The firm contributes 10 percent of its net income to the Orchard Commercial Foundation, which supports a number of local charities, organizations and institutions. “There is incredible wealth in commercial real estate,” Lewis says. “Meanwhile, there are other people in our community who are really struggling with housing and other things. It has always seemed to us that a big part of good business is giving a portion of what we make away in a way that will make a real difference.” As Orchard Commercial looks to the future, Lewis says the firm plans to continue to grow and improve. “We really want to be bigger and better,” he says. “Our goal is to provide the best service possible and grow to be the largest commercial operating firm in the Silicon Valley. I think that we offer a valuable service with excellent people in a very unique hands-on approach.”

CRANE PEST CONTROL Crane specializes in designing environmentally sensitive pest management programs to assist property management in meeting LEED requirements. As members of BOMA San Francisco, BOMA Silicon Valley, BOMA Oakland/East Bay and BOMA Sacramento, Crane provides these green pest management programs for LEED-certified buildings throughout San Francisco and the Greater Bay Area.

Orchard Commercial has received a number of awards throughout the years, including being named the 2010 Property Management Firm of the Year by the Silicon Valley/San Jose Business Journal. Serving both as a motivator for future success, the company’s accolades also reinforce its quality work. “Property management and operating is only fun if you really do it well,” Lewis says. “We often say to ourselves that our job is to make the world a better place. We have 500 tenants and how we take care of those folks has quite a bit to do with how well their lives go. Striving to be the best is really fun.” The firm also prides itself on its ability to match the experience provided by the industry’s top organizations. “We compete with the largest real estate companies in the world,” Lewis says. “We are a regional firm. We personally know all of these buildings. I’ve been to all of these buildings. We are very engaged, and that’s what really matters.”

LEED Certification consultation and compliance.

The team at Orchard Commercial also believes strongly in supporting and giving back to the

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The Strongest Link A fully integrated real estate development firm

A full-service commercial real estate development company, RealtyLink, LLC specializes in the retail and restaurant industry and offers in-house services for each step of the development process.

RealtyLink Principal Phil Wilson Location Greenville, South Carolina

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SKILLED TEAM RealtyLink has a skilled team of professionals in each of its divisions to successfully complete each development project. The company’s paralegal, Maude Davis, coordinates all of the real estate transactions for both purchases and sales, and she also makes closing preparations.

“I think that our greatest strength is that we are a full-service shop,” says Phil Wilson, Principal of RealtyLink. “We have in-house legal, in-house finance, in-house architectural, in-house engineer- “We work with a third-party attorney for the actual ing, in-house marketing and in-house investment closing of a title,” Wilson says. “[Davis] works with sales. Essentially, we have all of the services re- the engineering division and coordinates surveys, quired from A to Z to complete any development.” phases one and two and makes sure all the title Based in Greenville, South Carolina, RealtyLink work matches the surveys and makes sure we get has a regional office in Birmingham, Alabama and all the documents we need for closing, whether it’s a leasing office in Charlotte, North Carolina. The easements or any kind of variances. She works company has developed more than 350 projects hand-in-hand with the engineering company to and completed site selection for more than 1,000 make sure everything fits together prior to closing.” nationally known restaurants and retailers through- On the financial side, RealtyLink sets up a new line out the Southeast and Midwest. of single asset Limited Liability Company (LLC) or


single asset LLC for each particular project with its “We have three engineers in-house,” Wilson says. own members, bank loans and checking account. “They are assigned each project and have the reThe company’s financial director, Starla Revels sponsibility to manage that project from beginning manages all of the financial needs of those com- preliminary planning to site-specific planning. They panies. engage a different party engineer to do the actual permit process. Then, they put bid packages to“She puts together finance statements on a monthly gether and go for bids and manage the project all basis,” Wilson says. “As of today, I would say we the way to completion.” have about 70 different LLCs. Essentially, she manages 70 different companies, and then at year-end RealtyLink has a vertically integrated architectural she consolidates all 70 of these entities in one company called COR 3 that works closely with its statement so that our lenders can review and un- engineers. derstand where we are globally.” “We have five architects in COR 3,” Wilson says. RealtyLink’s in-house engineers oversee all third “We reached a size in our company where we were party engineering companies as well as construction spending so much on outside sources that we demanagement. The division also manages cost esti- cided to vertically integrate with COR 3, and it has mates, schedules, contractor selection, job site visits, worked out extremely well. They do our work as progress reports and follow-up punch list items. well as outside companies.” FALL 2012 | DDC JOURNAL

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RealtyLink also has in-house marketing and investment property sales. The marketing division develops comprehensive marketing reports with demographics and competitive positioning. Investment sales represent both buyers and sellers of real estate assets, with a transaction volume that annually exceeds $100 million. CURRENT PROJECT RealtyLink’s current project in Columbia, South Carolina with Columbia Harbison showcases its divisions at work. The Harbison trade area in Columbia has limited development space and is one of the strongest retail areas in South Carolina.

and difficult to find something in the area. We did a ground lease to McDonald’s on one parcel and did a ground lease to Firestone Corporate for another parcel. In the back, we did leases with Ulta Beauty, Home Goods, DSW and Staples.” RealtyLink had to overcome some site work challenges by raising the site 20 feet, but the project is scheduled for full completion in the fourth quarter of 2012. Overall, RealtyLink takes pride in the fact that it was able to retain its full staff during the recent economic downturn, and the company hopes to continue to grow and expand in the future.

According to Wilson, the Columbian Mall is located “I think we will do some vertical integration on the in the same corridor and boasts the second-high- engineering side for 2012,” Wilson says. “We’ve est sales per square foot for a mall in the state. A been fortunate to keep all of our staff and not lay former medical office building, RealtyLink capital- off any employees. I believe that our development ized on the available property. pipeline is probably approaching close to $300 million in new developments scheduled for 2012 and “We found out about it and went in as part of our 2013.” Staples relocation program and negotiated a purchase price for eight acres,” Wilson says. “Essen- BNC Bank BNC Bank is proud to count RealtyLink as a valued client and tially, we took that medical office building that was congratulates the company on the quality of their real estate projects. Walter Gayle, Senior Vice President with BNC, says “there are no finer three floors and 30,000 square feet, and we had a developers than the staff at RealtyLink.” BNC Bank, a division of Bank of North Carolina, serves upstate South Carolina through its Greenville, waiting list for tenants wanting to be property part SC office and 31 full-service banking offices in North and South Carolina. of the development just because it is very desirable BNC Bank is insured by the FDIC and is an equal housing lender.

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Promoting Downtown Revitalizing the historic areas of Cincinnati

Committed to redeveloping and investing in Cincinnati’s urban core, Cincinnati Center City Development Corporation (3CDC) is a developer, asset manager and lender in partnership with the City of Cincinnati, the State of Ohio and members of Cincinnati’s corporate community.

3CDC Senior Development Officer Jeff Martin Location Cincinnati, Ohio

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lieve in good civic spaces. We’re trying to bring people to Over-the-Rhine to live here, to work here and to hang out here, and having strong civic spaces is a part of that plan.” The park will have a number of unique features, including a 450-space underground parking garage with a design that allows it to blend in to its surroundings.

“We’re a development agency,” says Jeff Martin, 3CDC Senior Development Officer. “We develop specifically downtown Cincinnati, and our focus area is the central business district around Foun- “The parking garage will serve Music Hall across the tain Square and north of the city in Over-the-Rhine. street, the residents and some of the businesses We are particularly proud of the downtown renais- that are opening up,” Martin says. “I think the sance we’ve undertaken with the city and a num- designers did a great job integrating that parking ber of other groups. We’ve been fortunate to have garage seamlessly into the park. It’s really hard to great partners in the city and a number of our other tell that the garage is there, but the garage itself will developers. It’s really a team effort.” actually be a tremendous asset to the area, and it’s great that it really doesn’t impact the park design.” The company has over $200 million in active projects and is currently involved in a public/private LOCAL INFLUENCES partnership with the city, Cincinnati Parks and the With the Classical Music Hall of Fame located in Cincinnati corporate and philanthropic community Cincinnati, the park design incorporates classical to transform Washington Park into an urban sanc- music and information into its unique interactive tuary. The $50 million project in the historic Over- water system and fountains. the-Rhine neighborhood will expand the park from six to eight acres. “The fountain will have, in real time, the interactive component where users of the park will use their “We feel that it will transform the overall develop- mobile devices and other pieces of technology to ment of the area,” Martin says. “We strongly be- essentially control the fountain and learn a little bit


Our goal is really to try to keep our head down and work hard and promote great spaces and home ownership. -Jeff Martin

more about some of the individuals in the Classical Music Hall of Fame,” Martin says. “That’s a pretty neat feature. We are unaware of anything else like that in the world, and certainly in the United States.” For children, Washington Park will include an 18,000 square-foot playground with a design that mimics some of Cincinnati’s historic structures. “There are references to a canal system that used to be here in Cincinnati,” Martin says. “The city has a number of water towers, and we were able to design a custom slide that resembles some of the local architecture and the history of the water towers and buildings in the area.” A large civic lawn about the size of a football field includes a stage on one end with all of the power and lighting necessary to host a variety of concerts, movie nights and other activities. Covering three acres and 19 buildings, 3CDC is also working on Mercer Commons, which includes a mix of historic rehab and new construction. According to Martin, the project is a great opportunity for infill construction in the area. “If you look at our focus area, there are not a lot of sites to do new construction,” he says. “We’ve been able implement a parking garage that’s above ground, and we were able to conceal it quite nicely with the construction and tuck it behind some of the old historic buildings. You really won’t know it’s there and it doesn’t hurt the integrity of any of the historic buildings, but it does allow for a 340-space parking garage.” Martin says that historic renovation always has the potential for difficulties, but the Mercer Commons project has progressed smoothly so far. “Historic renovation is a challenge in that you always try to maintain the character of the building,” he says.

artistic component integrated throughout the design, and a restaurant component as well.” Moving forward, Martin says that the company plans to press forward with its mission to revitalize and attract more people to Cincinnati. “Our goal is really to try to keep our head down and work hard and promote great spaces and home ownership,” he says. “We want to continue to revitalize Over-the-Rhine and the downtown, and attract local businesses and promote downtown activities.”

KLH Engineers KLH Engineers is an established consulting engineering firm providing MEP engineering services, communication technology, and energy solutions. From offices in Kentucky, Ohio, and New York, KLH is licensed to practice in all 50 states. With their first geothermal project in 1985, their certified energy and LEED Accredited Professionals, KLH made a major commitment to sustainable design. They continue to redefine engineering by stepping out from behind the desk, humanizing building design, and building lasting relationships with their clients.

“The leadership that 3CDC is providing toward the revitalization of downtown Cincinnati is key to the long term vitality of the entire Greater Cincinnati region.” — Bob Heil, Senior Principal, KLH Engineers

redefining engineering

Another historic building renovation, the 21 C Museum Hotel in the central business district is another exciting project underway. “It’s a modern art boutique hotel,” Martin says. “There will be an art museum component and an

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Organic Growth Enhancing infrastructure in the City of Calgary

Platform

NW LRT, Tuscany Station

Focused on providing efficient and modern transportation systems for the citizens of Calgary, Alberta, the city has updated its transportation plan and has a number of improvement projects underway.

City of Calgary Director of Transportation Infrastructure Gordon Stewart Location Calgary, Alberta

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Rail Transit (LRT) facility from the 1980s. The LRT line is the central east-to-west spine for transit service. The $120 million project completed its first phase in 2005, and the city worked on the design and construction of six stations for the second phase from 2007 to 2011.

“The city has just recently updated its transportation plan and it has a focus on improving transportation in a number of our modes, including LRT [Light “There are a couple of reasons that we decided to Rail Transit], cycling and pedestrians,” says Gor- upgrade Seventh Avenue,” Stewart says. “The origdon Stewart, Director of Transportation Infrastruc- inal construction was built just under 30 years ago, ture. “It’s one of the major focuses of the city.” and it was starting to get tired and it was not creating the experience for the riders that we wanted. With several rail and road projects currently under From an efficiency point of view, we are extending construction, Calgary’s Transportation Infrastruc- all parts of Seventh Avenue to accommodate fourture Department is balancing project improve- car trains. Previously, we could only accommodate ments with keeping facilities operating and open to three-car trains, so that will increase capacity of the public. Started in 2010 after years of planning, the system by 33 percent per four-car train.” the West LRT project will consist of six stations and eight kilometers of track. Scheduled for completion The additional stations have significantly upgraded in spring 2013, the $1.4 billion project will include the line, but working in and around operating staan elevated station in Sunalta and a subway-style tions and rail lines has created some challenges. station at Westbrook. “The big challenge at Seventh Avenue is that we SEVENTH AVENUE had to do all this construction at the same time Divided into five construction phases, the Seventh we were continuing full transit service,” Stewart Avenue refurbishment project will upgrade a Light says. “We had LRT trains running at times every


three minutes, and meanwhile we were trying to complete the construction on time and on budget. It’s very challenging to work in that kind of an environment, but there have not been any significant safety concerns at all.” To meet the needs of the growing population, the Northeast LRT will extend to Saddle Ridge. The extension project will bring CTrain service from the McKnight-Westwinds station to Saddletowne Circle, and will support an estimated 8,000 daily passengers. The $100 million project will wrap up in the fall. “This is part of the organic growth of the system,” Stewart says. “As the communities in northeast Calgary develop, we are extending service to meet their needs.”

a new storm sewer system, deep utilities relocation, relocation of pipelines, electrical distribution and transmission lines and a new digested sludge crossing under the canal. “Fifty-Second Street has been a major project on the east side. What we are doing is providing an alternate route, which is one of the priorities under the transportation plan,” Stewart says. “It has been a difficult area because there were some existing utilities and we had the railway to cross. It has been closed since last summer, but it should be open by fall of this year. We are looking forward to opening that to the public.” Construction on Elbow Drive is another important roadway improvement for the city. According to Stewart, the roadway sees high volumes of traffic, and the improvements will ensure safety for years to come.

Also catering to the needs of higher traffic counts and the growing population, the City of Calgary is widening 52nd Street. Currently working on the “Of particular note on Elbow drive is that we are project’s third phase, it has constructed two new working where there is residential,” he says. “It’s bridges over the Western Headworks Canal and a very confined space. It’s a rebuild of the existthe Canadian Pacific Railway tracks. The improve- ing roadway, so we don’t have a lot of options. Our ments will widen the road to six lanes and install concern is to make sure that we have traffic slowed FALL 2012 | DDC JOURNAL

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down and it can be accommodated, and all this is happening safely for the workers and the public.”

This is part of the organic growth of the system. As the communities in northeast Calgary develop, we are extending service to meet their needs. -Gordon Stewart

Looking to the future, the City of Calgary has multiple projects in the planning stages, including a $2 billion Southeast Transitway effort. However, before the city can proceed with future major projects, it must first locate the necessary funding. “The big issue for the City of Calgary is funding sources,” Stewart says. “For these major projects to develop, we need to work with the higher levels of government in order to obtain the funds to start construction.” SNC-Lavalin Inc. SNC-Lavalin’s international transportation infrastructure expertise and local execution is instrumental in delivering the Calgary West LRT system, the City’s largest design-build project, and Calgary Transit’s first design-build project in the sector, including the first underground and elevated stations. SNC-Lavalin and its joint-venture partners are proud to work with the City of Calgary to expand its sustainable transportation infrastructure network.

Hatch Mott MacDonald Hatch Mott MacDonald is grateful to be The City of Calgary’s partner in delivering Calgary Transit’s West LRT Design-Build Project. Our light rail transit professionals enjoy the experience of applying our world class transit expertise to Calgary’s unique operating requirements and community expectations.

Patching Associates Acoustical Engineering Ltd. Noise is often a major concern for residences living near existing and proposed transportation routes. These potential impacts are effectively managed through 3D noise modelling, noise and vibration monitoring, and noise policy development. Incorporating acoustical engineering science throughout a project’s life cycle enables transportation planners to anticipate noise control costs as well as community impacts. Patching Associates is proud to have worked alongside The City of Calgary over the past 20 years to proactively manage noise impacts in the City.

Volker Stevin Contracting Ltd. Volker Stevin is very proud to have been the General Contractor for The City of Calgary’s Phases 1 & 2 of the 52nd Street SE refurbishment project, which consisted of reconstruction from Glenmore Trail to 90th Ave SE & 114th to 130th Ave SE. Our portion of the project involved road widening, storm sewer upgrade, landscaping, electrical, street lighting & fencing.

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Photo courtesy of The City of Calgary

ON-TRACK FOR A GREENER TOMORROW SNC-Lavalin and its joint-venture partners designed and built the Calgary West Light Rail Transit (LRT) system, one of the city's largest infrastructure projects to date. Our team is proud to work with the City of Calgary to expand its CTrain network and provide a historical and sustainable transportation solution for Calgarians.

Proud to be Owner’s Engineer for The City of Calgary’s West LRT Project planning engineering project & construction management airports & aviation buildings & facilities highways & bridges life-safety & security ports & harbours rail & transit commuter rail high speed rail heavy rail light rail rail systems tunnels water & wastewater

Source: City of Calgary

SNC-Lavalin, one of the world's largest engineering and construction companies and a leader in mass transit, partnered with Graham Infrastructure Ltd., Cana Construction Ltd., Enmax Power Services Corporation and A&B Rail Services Ltd. to deliver a legacy transportation system built for a greener tomorrow.

Thank you, Calgary, for your support during the construction period.

www.snclavalin.com

w w w.h atchm o t tSolutions .co m Delivering

Volker Stevin ENGINEERED SILENCE

Proud to Have Been The General Contractor for Phases 1 & 2 of 52nd Street SE

3000 Projects 100 years experience 20 years in business

Acoustical Engineers for the City of Calgary LRT since 1981

+ Special Projects * UG Utilities * Road Construction Asphalt Paving * Highway Maintenance * Project Mgmt Asphalt & Aggregate Sales * Hydrovac * Power Flushing CCTV * Equipment

With more than 100 years of bench strength and 20 years of experience, Patching Associates have been the trusted acoustical engineers for the City of Calgary on projects like the North East Light Rail Transit Line and the West LRT Project. www.patchingassociates.com

Mail:

Box 5850, Stn A / Calgary, AB T2H 1Y3

Courier: 7175 – 12th St SE / Calgary, AB T2H 2S6 403.571.5800

www.volkerstevin.ca

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A Case In Point Updated court facilities for San Bernardino County

San Bernardino groundbreaking

Administrative Office of the Courts Senior Project Manager S. Pearl Freeman Location San Bernardino, California

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In order to consolidate courthouse facilities and “The historic courthouse will be used for civil cases provide a modern upgrade for the Superior Court and the new courthouse primarily for criminal. It of San Bernardino County, the California Adminis- will also house family law, traffic and juvenile delintrative Office of the Courts, which has responsibility quency cases,” Freeman says. for courthouses statewide, has initiated construction of the new San Bernardino Justice Center. The new facility will replace seven current and former court facilities and in addition to updating the “Basically it was programmed to consolidate the outdated layouts, it will also remediate a number of court facilities in the downtown and close by down- security issues. town into a single courthouse to be near, a halfblock away from, the historic central courthouse,” “The old courthouse was built in 1929 and, needsays S. Pearl Freeman, Senior Project Manager. “In less to say, it was not designed to modern secuessence, it creates a campus for the courts.” rity standards,” Freeman says. “Currently, they do have criminal cases in the central courthouse and The Justice Center will be the largest civic building have to clear the corridor to walk those in custody constructed in downtown San Bernardino in half a into the courtroom; meaning that people have to century. Construction of 383,000 square-foot cen- leave the hallway, sometimes even leave the buildter is taking place on a 7.1 acre site close to the ing to have movement of people in custody. That is existing historic courthouse. a security issue in the existing building.”


San Bernardino

The existing facilities have an unwanted reputation as some of the worst and most outdated courtrooms in the state, so not only will the new Justice Center offer an updated building, it will also ensure an efficient and central location.

laboration. The City of Bernardino and the San Bernardino County Board of Supervisors both committed to making contributions to the project in 2006. The City donated the land and the County contributed a portion of funds it had available for seismic upgrades of the historic courthouse, a project that was also recently completed. Other funds for the $340 million project came from court fees, assessments and penalties collected statewide.

Similar to other court facilities that we are replacing, San Bernardino’s existing court facilities “have inadequate mechanical systems, outdated systems and security issues,” Freeman says. “The idea was to consolidate, bring most of the court functions “This is a state project,” says Teresa Ruano, Comto downtown, create a presence and provide a munications Specialist for the Administrative Office modern high-functioning, sustainable and secure of the Courts. “In California, with the Court Facilities building that meets the approved court standards.” Act of 2002, courthouses were transferred from the county to the state. That legislation actually enabled SUBSTANTIAL COLLABORATION us in the judicial branch to collect a portion of cerThe San Bernardino Justice Center project has re- tain court fees to set aside for court facilities, and quired a great deal of state, county and city col- that is the majority of the funding for this building.

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The Justice Center will have 12 levels and 35 courtrooms, two hearing rooms, 36 judges’ chambers, office areas, and a spacious entrance lobby and multi-story atrium. The project is seeking a LEED Silver certification and will include a green roof, low water use in the building and on site, recycled materials and other green components. The project got underway in November 2011 and is scheduled for completion in spring 2014. Despite some challenges brought on by the weather, the general contractor Rudolph and Sletten, has kept it on schedule.

LET’S BUILD CALIFORNIA’S JUSTICE CENTERS

Rudolph and Sletten - building California’s justice centers to fit the growing needs of the community.

“We are doing this work during the wet season, so we did have to overcome a couple of rain events, but we were able to maintain our schedule,” says Matt Bennett, Project Manager with Rudolph and Sletten. “We had a 7,000 cubic-yard unit pour and had the structural engineer from SOM, down from San Francisco. They walked all the rebar and the forms and just confirmed everything.”

AOC San Bernardino Courthouse

Communities rely on the successful operation of courthouses such as AOC San Bernardino and AOC San Diego.

The Justice Center is located near three fault lines, and to protect against seismic activity, the structure will rest on base isolators. “There are 69 of the base isolators,” Bennett says. “They are like bearings that the columns sit on, and we coordinated with the architects, SOM, and the manufacturer to form the design and testing of these isolators. It’s an innovative design used throughout the world. They are using this technology on hospitals in the Bay Area, so it is really cutting-edge technology.”

REDWOOD CITY • ROSEVILLE • IRVINE • SAN DIEGO rsconstruction.com

Collaboration has helped the project progress to this point, and the group hopes to continue this effort as construction on the Justice Center moves forward. “From the general contractor standpoint, R&S was brought on board early with the design team, SOM and the court system, and we were able to work together toward a final plan that has so far gone very well,” says John Theis of R&S Construction. “We would like to continue that close collaboration between all parts of the team to make sure that we stay on schedule and deliver the highest quality project possible.”

Rudolph and Sletten, Inc. Rudolph and Sletten, Inc. specializes in general contracting and construction management services for biotech/pharmaceutical, healthcare, technology, commercial office/corporate campuses, justice, education, gaming and hospitality facilities. Among our newest of justice projects, the San Bernardino County Courthouse, in addition to the security, durability and logistic elements associated with a justice facility, will meet sustainable design goals to achieve LEED Silver NC.

SOM is pleased to partner with the AOC / OCCM to support their court facilities program.

SOM SOM is one of the leading architecture, interior design, engineering, and urbanplanning firms in the world, with a reputation for design excellence and a portfolio that includes some of the most important architectural accomplishments of the 20th and 21st centuries. Since its inception, SOM has been a leader in the research and development of specialized technologies, new processes and innovative ideas, many of which have had a palpable and lasting impact on the design profession and the physical environment.

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Project: San Bernardino Justice Center San Bernardino, California Owner: Judicial Council of California © Skidmore, Owings & Merrill LLP

License #198069

AOC San Diego Courthouse


pg 72-76

infrastructure P72 Sonoma-Marin Area Rail Transit (SMART) P74 RTD FasTracks

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Opening Up Possibilities

A SMART transit option for California receives a warm reception

Connecting urban and rural residents of Sonoma and Marin Counties in California to jobs, educational institutions and healthcare services, the Sonoma-Marin Area Rail Transit (SMART) system will create 70 miles of rail service along the historic Northwestern Pacific Railroad alignment.

SonomaMarin Area Rail Transit (SMART) Chief Engineer Bill Gamlen Location Santa Rosa, California

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rail transportation service from Cloverdale in North Sonoma County to a ferry connection at Larkspur Landing in Marin County. Due to the size of the project, the SMART system will be constructed in multiple phases, with the first phase consisting of 38.5 miles of track extending from North Santa Rosa to downtown San Rafael. Phase one construction began in March 2012, and is scheduled to serve 70-80 percent of total initial ridership. This phase is scheduled to be operational by early 2016.

“Some of our design goals were about trying to be as efficient as possible because we have a limited budget to work with, but still design a current, reliable transit system,” says Bill Gamlen, Chief Engineer of SMART. “This operating segment is going to connect the two major city centers, Santa Rosa and Rafael, in the initial operating segment. It’s re- “One of the key milestones is going to be constructally important that we get it right coming out of the ing the backbone track system in the timeframe gate.” that we have laid out,” Gamlen says. “That is going to establish a test track for us for receiving our The project combines a publicly owned right-of- operating vehicles, which will then give us suffiway rail service and a bicycle/pedestrian pathway. cient time to test that and test the vehicles and test As a public agency, SMART will ultimately provide the system, and essentially do simulated service.


When we get to day one operations, we’ll have a fair amount of hours under our belt and will be comfortable operating throughout the system.”

The project also incorporates a multiuse bike and walking path. This element of the SMART system allows rail riders to bring bicycles on the trains and offers more flexible transportation options.

Looking to construction beyond the first phase, Gamlen says that the SMART system will extend “I think it will be a tremendous addition to the north to Cloverdale as well as south to Larkspur train,” Gamlen says. “It’s a pretty active, outdoorwhere it connects to a regional ferry system which conscious community in this area, and I think that includes San Francisco. “We plan to continue to when the people discover the ability to ride their push to expand the system both to Windsor in the bike to work or for pleasure and take the train, the north and Larkspur in the south.” he says. “Lark- combination of the two will really open up transporspur is our ultimate southern terminus.” tation possibilities in the North Bay.” CREATIVE DESIGN A project of such magnitude naturally involves a number of challenges, and the terrain the rail system must pass in the first phase required some creative design elements. “We pass through quite a variety of different terrains,” Gamlen says. “We go through the Santa Rosa Plain, which is very flat and has very technical drainage challenges. We go from a lot of wetlands as we go south into Marin County, which gives us a lot of unstable soil conditions and makes constructing and long-term maintenance a concern. Then, coming south into San Rafael at the terminus of the initial operating segment, we have a tunnel that is a challenge there and different geological conditions we need to manage.”

As the SMART project moves forward, the agency’s team hopes that the construction and coordinating continues smoothly and the project remains on budget. “We also want to see if we can do a little bit more than we are planning to do and maybe stretch our limit a little bit,” Gamlen says.

J.L. Patterson & Associates J.L. Patterson & Associates is a full-service transportation engineering consultant providing rail and transit design, environmental, construction management and staff augmentation services for commuter, high-speed, light, heavy, short line and freight rail lines, ports and transportation agencies. JLP is proud to be chosen by SMART to provide specialty on-call bridge and railroad engineering services to assist with bringing passenger rail service to San Francisco’s North Bay area.

Operating with a tight budget, the SMART project team has had to pay close attention to finances and try to spend efficiently. It also needs to closely observe federal railroad mandates and regulations. “We’re running at about $10 million a mile, including vehicles and everything, which is really on the low side for this type of project,” Gamlen says. “We are trying to spend our dollars very wisely. We’re trying to find the most economical way to apply the [Federal Railroad Administration] laws and requirements to the current alignment.” The project has created about 1,000 new construction jobs in the area, and more positions are likely to open as the project progresses in the coming years. In addition, those not involved in the construction industry have expressed interest in the project and the alternative form of transportation that will be available for the North Bay area. “We did have one public outreach meeting to let the first area know that we are coming, and overall the region is pretty supportive of the project,” Gamlen says. “It provides an alternative to the freeway congestion. Generally, it is a welcomed addition.”

www.jlpatterson.com

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Leveraging The Private Sector A commuter rail line for Denver sets a new precedent

Construction of drainage, alignment walls and footers and other improvements for the trackway

The Denver Transit Partners, an innovative publicprivate partnership, is hard at work developing a new commuter rail system in the Denver, Colorado area.

“I think the unique feature is the partnership that has been formed,” Middleton says. “Obviously, this is a first in the U.S. for transit projects. That component is going extremely well. We were very happy when we received a federal grant this last year. Once the funding and financing were in place, we have not had any problems associated with that.” “We are to build a new 36-mile commuter rail According to Middleton, the Eagle P3 project may system,” says Brian Middleton, Eagle P3 Project pave the way for financing possibilities for similar Manager. “When we say commuter rail, this is dif- transit projects throughout the United States. ferent from the rail we have at the moment that runs along the side of the freight railroad tracks. “With the challenges we face as a country in terms The Eagle Project will connect downtown Denver of financing infrastructure projects, clearly the abilwith the Denver International Airport, with Wheat ity to bring in some private financing and get things Ridge and Arvada to the west and Westminster to done has a lot of benefits,” he says. “Over the last the north. It’s a new mode of transportation in the 10 years, there has been lots of talk about doing a area, so we have a new maintenance facility and P3. The fact that we have now executed one and control center, as well.” it is going successfully I think will demonstrate the ability to close the deal successfully and bring The Eagle Project will include work in the East Cor- some of the innovation into the project that the priridor, the Gold Line, Commuter Rail Maintenance vate sector can bring.” Facility and an initial segment of the Northwest Rail The Eagle P3 project will link downtown with the Denver International Airport and the city’s outlying areas. It’s part of the voter-approved FasTracks program, which is being spearheaded by the Denver Regional Transportation District (RTD).

RTD FasTracks Project Manager Brian Middleton Location Denver, Colorado

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Corridor. The project has taken a unique financing approach by creating the public-private partnership.


Setting of girders for the first Commuter Rail bridge

will be assembled and tested there, and then disPHASED DELIVERY mantled, shipped to the U.S. and reassembled beThe Eagle Project is divided into two phases and is scheduled for completion in 2016. Phase I has in- fore a final testing period. The remaining car shells cluded property acquisition, the East Corridor con- will be fabricated in South Korea and shipped to struction, Maintenance and Control Center con- Philadelphia for final assembly. struction, the purchase of Electric Multiple Unit rail OVERCOMING CHALLENGES vehicles and some Denver Union Station electrical With the early construction work, the team has had systems. The project’s second phase will feature the Gold Line and Northwest portions of the project. to overcome some scheduling and time constraints. “We are on full notice to proceed,” Middleton says. A portion of the new rail line runs through the Coors “The contractor is rapidly coming through the de- Field parking lot in Denver, which meant construction had to take place during the winter baseball sign phase. We have done a lot of the preliminary off-season. pre-construction work relocating facilities, and we initially did full construction in October last year.” As the project gets closer to more extensive con- “During the Colorado Rockies off-season, we had a significant amount of work that had to occur in and struction, its design nears finalization, Middleton next to the Coors Field parking lot,” says Kevin Flysays. nn, the Eagle Project’s Public Information Manager. “The design is going very well,” he says. “There a “It was about a one-mile long construction site, and lot of issues to resolve, but the contractor is work- there were challenges with doing that over the winter. The Denver Transit Partners were able to wrap ing through those and the same with next couple that up early and get it ready for opening day. of months when we will be almost completely done with design.” The trains for the new commuter line are being built in South Korea. The first four of 50 total vehicles

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first bridge across Broadway at the Coors Filed parking lot. The bridge structure has been completed and it awaiting direct-fixation trackwork.

Celebrating 50 Years!

“We will be starting construction on a number of bridges almost simultaneously and opening up the section of construction work out near the airport,” Middleton says. “The other part of the project is more problematic because it’s close to residences, and we have to squeeze it in between existing train tracks and adjacent roadways. Out near the airport, we have pretty much free reign.”

Ames Construction Inc. Ames Construction Inc. is working on the Eagle P3 Joint Venture with Flour and Balfour Beatty. This 40 miles of new commuter rail will run through seven separate jurisdictions, including the Denver International Airport. With the design phase nearly completed, the construction phase is set to begin in earnest after Memorial Day and expected to be completed in early 2016.

VINE Laboratories, Inc. We specialize in transportation systems, including roadways, highways, streets, structures, bridges, airfields and mass transit projects. VINE performs comprehensive field services, including wire line coring, hollow stem and solid stem drilling, sampling services, instrument installation and monitoring.

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Middleton says that he is looking forward to beginning significant construction work. Bridge construction will take place early on, and the partners are working to overcome the challenges associated with building the new line in congested areas of the city.

Ames Construction, currently working on Eagle P3, has been successfully providing comprehensive heavy civil and general contracting services to clients for over 50 years. Ames is an experienced self-performer in markets, including: • Transportation

• Mining

• Water Resources

• Commerical

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To learn more about Ames Construction visit us online

Ames Construction, True Confidence in Your Project.

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pg 78-92

mixed-use

P78 Poe Companies P81 The Mandel Group, Inc. P84 Briarwood Organization P86 MC Companies P88 Elad Canada

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A Waterside Escape River Park Place sports the best of all worlds

Poe Companies Owner Steve Poe Location Louisville, Kentucky

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With 22 years of planning, two failed building attempts and even a three-year shelving of the project, the RiverPark Place initiative on the banks of the Ohio River in Louisville, Kentucky will finally come to fruition through the expertise and building zeal of Poe Companies LLC. What started as a residential project so very long ago has evolved to become a much-anticipated mixture of residential and commercial space, located in a premier area that merges the best of urban, rural and natural worlds. “People love to live on the water, next to parks and near downtown, which is something that’s hard to find in a single site. We feel this makes this a premier location because the site incorporates all three, it’s a highly sought-after development area

right on the Ohio River,” says Steve Poe, Owner of Poe Companies LLC. CONVERGENCE POINT Because of its prime location as a convergence point for so many different styles of living, the RiverPark Place building initiative has already begun to attract both private and commercial interests. The project features a 150-boat slip marina, in which nearly 40 slips have already sold for between $30,000 and $80,000 each, showing an overwhelmingly positive response to a project that is only just getting started. With the first of five buildings scheduled to be complete by early 2013, Poe Companies has brought to life its vision of a true mixed use project


I think this project really exemplifies our tenacity and our ability to take on complex projects. We take great pride in being able to plan complicated mixeduse projects and ultimately execute on them. -Steve Poe

RiverPark Place

that will encompass over 2,000 residential units, multiple restaurants, office, commercial space and a state-of-art marina. In the process, approximately 300 construction jobs will be created for area residents, bolstering not only the local economy, but providing opportunities for commercial businesses as well.

LONG DEVELOPMENT PROCESS Poe started working on the project in 2004 and spent the first year working with the city and Waterfront Development Corporation in developing a master plan. They studied other cities with urban, waterfront developments to see what worked and what didn’t. Because the site is along the river and in the flood plain, it then took over two years to get permits and approvals to start construction. By that time, the economy started its downturn and after investing $16 million in infrastructure costs, Poe decided to shelve the project until the economy righted itself.

“I think that RiverPark Place really showcases our ability to work on large public-private partnerships,” Poe says. “The city has had a dream to develop this site since the mid-1980s. In 2004 we were able to work with the city to create a win-win scenario to make the project a reality. This project says a lot about our company and our ability to create “I think this project really exemplifies our tenacity opportunities.” and our ability to take on complex projects,” Poe

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says. “We take great pride in being able to plan complicated mixed-use projects and ultimately execute on them. We believed this project would take approximately ten years to build out and we always knew a downturn would occur during that time, we just didn’t anticipate the downturn coming before we actually went vertical with buildings.” Poe said. “This project has certainly tested our resolve but I believe it’s like a fine bottle of wine, the longer you wait to open it, the better it gets.” “Every development has its problems, whether it’s at the planning, construction or execution phase,” Poe says. “Right now, the economy is our biggest challenge. With the economy coming out of a recession, we are hopeful to gain velocity in both sales and leasing.” Despite the long development process and aggregated stages of planning that date back to the conception of the project, Poe Companies remains positive about the value of its investment. According to Poe, real estate is all about location and quality and this project has both. “We excel at working on complicated, long-term projects,” he says. “More specifically, we welcome

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the challenge of projects that require long-term planning, creative vision and precise execution.” Along with the inspiring resolve to deliver on a longstanding project, Poe Companies is also looking ahead at the future development of RiverPark Place. While green building initiatives were not prevalent in the initial designs of the project, future buildings on the site will strive for LEED certification through varying degrees of eco-friendly building techniques. Poe says they are looking into techniques like green roofs, innovative mechanical systems and other eco-friendly building systems. As Poe Companies works diligently to fuse the styles of the big city and the tranquility of a waterside escape, residents can look forward to a new residential hotspot taking shape in the coming years. With the first rental units to be completed in early 2013, it’s only just the beginning of the city’s next great site and the affirmation that good things come to those who wait.

The Underwriters Group The Underwriters Group congratulates Steve Poe and the Poe Companies for their many accomplishments and successful projects. We are proud to have provided risk management and insurance services for the Poe Companies. The Underwriters Group appreciates being part of the Poe team and wish them many more future successes.


Nimble Revitalization Reinvigorating Milwaukee’s Park East neighborhood

Until 2001, an underused freeway spur off Inter- “These kinds of urban infill and brownfield sites are state 43 ran horizontally across the City of Milwau- something that our company has sought out and kee, forming an inconvenient barrier between the specialized in over the past 20 years,” says Richard Park East neighborhood and the downtown area. Lincoln, Senior Vice President of the Mandel Group. That year, the city demolished the spur, and al- “Our approach has been to work particularly closely though since then developments have spurted up with the City of Milwaukee in the master planning, in the area, there are still a number of vacant lots which has spanned two different mayors.” that dot the landscape. The Mandel Group has a long track record of sucMandel Group, Inc., a Wisconsin-based integrated cessfully working with various governmental agenreal estate services firm, is helping to change that. cies in its projects, which is partly why the North In the past few years, the company wrapped up End has done so well thus far. The current phase work on phase one of its North End development, has been funded largely by the sale of $34.6 milwhich offers both apartments and commercial lion of tax exempt Midwest Disaster Area Bonds to space. Now, it’s embarking on phase two of the private investors, a benefit extended to Milwaukee project, which will further advance an effort the due to severe flooding that occurred in the region Mandel Group started nearly a decade ago. in the spring of 2008. When complete, the city esti-

North End

The Mandel Group, Inc. Senior Vice President Richard Lincoln Location Milwaukee, Wisconsin

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North End

As the downtown area continues to grow, the North End will have proximity to the entertainment districts of the city. It really begins to fill in the gaps in the residential development of the north edge of downtown. -Richard Lincoln

mates that the entire North End development could attract up to 1,000 new residents to Milwaukee. In order to fully utilize the federal revitalization funds, the Mandel Group partnered with the Wisconsin Housing and Economic Development Authority (WHEDA).

sion over the last several years, but the city and Milwaukee County, which owns a lot of the land in Park East, have entered into a much more cooperative relationship in recent years. I think that has helped to promote and develop that area.” In total, the North End development will be a $175$200 million project. The Mandel Group has approached it in stages, and is currently building phase two of five phases planned for completion.

“We had an excellent relationship with WHEDA, and we found their leadership and senior staff to be very helpful and creative in helping us to work through the complexities of this deal, as well as an- “By adding the second phase to our North End deother one in the area that we were doing simultane- velopment, which is another 155 apartments to the ously,” Lincoln says. 83 that are already there, we will really start to let the area be viewed as a neighborhood,” Lincoln PROJECT EMBRACED says. The North End project has truly changed the look of the northern end of downtown, and the apartments Construction will be completed in the next two to have been built along the riverfront. The commu- three years, adding 500 units by the time it’s all nity has enthusiastically embraced this project, as done. Twenty percent of the apartments in phase it plays a crucial role in revitalizing the area. two will be reserved for affordable housing, and beyond the residential units, the project will include “The potential for that area is tremendous,” Lincoln about 2,500 square feet of additional retail space says. “It has obviously been slowed by the reces- to draw tenants in.

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“The high quality of the residences that will be there will attract people to the area,” Lincoln says. “It will be a mixed-use development with a lot of public space and about a quarter of a mile of river frontage. It will also have a connection to the city’s very extensive Riverwalk system.” Within walking distance of several of the busiest areas of Milwaukee, including Brady Street, Water Street, Brewer’s Hill and the Third Ward, the North End development is truly in the heart of the city. This location will make it highly desirable to residents, especially young professionals who want to experience all that the city has to offer. “As the downtown area continues to grow, the North End will have proximity to the entertainment districts of the city,” Lincoln says. “It really begins to fill in the gaps in the residential development of the north edge of downtown.” Like many development projects undertaken during these challenging economic times, the Mandel Group had to reconsider its plans more than once. Its team cites its ability to adjust as a key part of the company’s success.

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“We’ve had to be flexible and creative as we have proceeded,” Lincoln says. “At one point, we thought that there would likely be a large component of the North End that would be condominiums, and as that market collapsed, we shifted to a focus that is almost exclusively apartments. Attracting retail in this environment has been difficult, but that is improving, as well.” Another project for the firm is LightHorse 4041, a smaller development in nearby Shorewood, Wisconsin that will include 84 apartments. As with North End, 20 percent of the units will be offered at affordable rates. There will also be retail space, including an 18,000 square-foot Walgreens, as well as 204 stalls for public parking. With its nimbleness and ability to adjust to changing market conditions, the Mandel Group is driving growth for the company, the job market and Milwaukee as a whole. Its work, both current and planned, promises to deliver major benefits for the city.

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Lady of Loreto

A Century Of Success Concrete partnerships and a passion for its business earns a solid reputation

120th Street

Briarwood Organization President & Managing Partner Vincent L. Riso Location Bayside, New York

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Melrose Commons

Founded in 1912, the Briarwood Organization fo- “We started both as developers and general concuses on commercial, residential, affordable hous- tractors,” Riso says. “We do our own general coning and office developments, establishing a trust- tracting work and we do contracting work for others. worthy reputation over its 100-year history. One of the biggest advantages of working with us as a general contractor is that we vet out all pos“The company has been in business for 100 years, sible changes or extras in a job due to the archiand we have the trust of our clients,” says Vincent tectural drawings before we start the job. Therefore, L. Riso, President and Managing Partner of the Bri- we have very, very few extras that get to our clients.” arwood Organization. “We have been referred from one to another over the years.” CURRENT PROJECTS Having just broken ground in March, the company The family-owned company, led by Riso’s brothers, is in the process of constructing the Briarwood Plaza Vincent and Raymond, Howard Goodman, and II, a three-story office building in Bayside, New York. Vincent’s nephew, James, makes up the third and With multiple properties in the area, Briarwood Plaza fourth generation of the Briarwood Organization. In will add to the company’s presence on Bell Boulevard. addition to developing services, the company operates its own general contracting division under the “We are expanding 24,000 square feet of office name L. Riso and Sons Co., Inc. and medical space, including on-site parking, and


15-year ICAP tax abatement. Its construction and design are bolstered by environmentally forward features,” Riso says. “Briarwood also owns a number of retail and mixed-use properties on Bell Boulevard where this building is being built.”

projects. The $49.3 million project was part of the Five Borough Economic Opportunity Plan to spur long-term economic growth in the city. The development features 160 one- and two-bedroom units. Some of the building features include Energy Star appliances, onsite open space, parking, a gym and a laundry room.

Working as the general contractor, Briarwood has another project underway in Brownsville, New York. In conjunction with the Community Preservation “The Solara was an affordable housing project built Corporation (CPC), the company is constructing in the Bronx on Grant Avenue,” Riso says. “The site 64 units of low-income housing at the site of the had been awarded to two other developers before former school and convent of Our Lady of Loreto it was awarded to us, and none of them could work Church, as well as on some adjacent vacant land. out the difficulties on the site. We installed a 540The $18 million project will include eight four-story foot retaining wall, and this particular project was buildings, and half of the total units will be made the first homeownership project in that community up of one-bedroom apartments, with the other half over the last 30 years. It is completely sold out.” will consisting of two-bedroom units. As the Briarwood Organization celebrates its 100“It is owned by the Brooklyn Diocese,” Riso says. year anniversary, the company also looks forward “We’re working with the CPC, which is a major to the future and points to the strength of the curfunder of affordable housing both in New York City rent management and potential of future generaand throughout the country.” tions. The Briarwood Organization has successfully worked with the CPC before and has plans to begin another project with the nonprofit organization in 2013, according to Riso. “It’s one of a number of jobs we’ve had, and most of them have been completed with the CPC,” he says. “We have a joint venture with the CPC for a 260-unit rental building in the Melrose section of the Bronx that we will probably start in 2013.”

MARKS PANETH & SHRON LLP Marks Paneth & Shron LLP has served the real estate industry for more than 100 years. We have built a solid track record assisting many of the industry’s premier commercial and residential real estate owners, builders, developers, investors, general contractors and property managers in making smart financial decisions. We are proud to be a trusted advisor to the Briarwood Organization.

CITYWIDE PRESENCE Over the course of the company’s history, the Briarwood Organization has developed and built a number of successful properties. The company still has buildings from the 1920s in some of New York City’s oldest neighborhoods. More recently, Briarwood has produced a number of projects in the New York City area. “We have built over 300 units of affordable housing in the Rockaways,” Riso says. “I call it the Hamptons West. We’re right on the beach across from the boardwalk, and we’ve finished those homes and the last few units are still for sale. We built in the city, in Manhattan on the upper west side in 1985 and we built 110 units and condominiums along with some retail stores. At the time, that was the Upper West Side urban renewal area. Sale prices for our condominium units went for about $200 a foot in 1985, and they are selling for $1,150 to $1,200 a foot today.” Completed in 2009, the Solara project in the Bronx marks one of Briarwood’s most successful recent FALL 2012 | DDC JOURNAL

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Places To Be

Creekside Construction

MC Companies Principal Ross McCallister Location Tucson, Arizona

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A focus on the client’s bottom line ensures a specialization in multifamily housing

Since 1985, MC Companies, a full-service real estate investment and property management company, has developed, built and managed a wide range of multifamily housing communities. “We really take pride in our customer service and how that customer service translates into an improved bottom line through less turnover and lower expenses,” says Ross McCallister, Principal of MC Companies. “With our market knowledge and our construction partner, MC Clark Wayland Builders, longevity of 28 years building and managing in Arizona, give us many advantages. After construction, our quality control and the fact that we build for the long term translates into reduced operating expenses and reduced capital improvement needs in the future.”

MC Corporate Housing has switched to BeeKind Products and looks for ways to maximize energy efficiency and bring energy savings to residents. “We are a LEED-certified contractor,” McCallister says. “While we are sensitive to the cost impact of green technology, we are sensitive also to what that means for our residents in terms of energy efficiency. We are doing everything we can do to maximize energy efficiency and how that translates into our residents’ pockets.” THE PLACE AT CANYON RIDGE Located in urban Tucson, The Place at Canyon Ridge sits on a 7.12-acre lot and includes 10 twostory buildings. The location offers easy access to employment centers, downtown and recreational areas.

MC Companies owns and manages approximately 7,000 units throughout Arizona, Oklahoma and “It’s an infill site,” McCallister says. “It has excellent Texas. The firm plans to focus on multifamily hous- access to the employment centers in downtown ing construction and increase its development Tucson, and has access to Interstate 10, which and construction capabilities with garden-style, takes you to the employment centers located at the mid-rise and high-rise developments. Making an airport and northwest Tucson. It is also within 10 effort to become more environmentally conscious, minutes of the University of Arizona.”


MC Companies has developed the project and MC Clark-Wayland Construction is building the community. The $12 million project will offer 116 units, including 48 one-bedroom/one-bath units, two one-bedroom/one-bath plus den and 56 twobedroom/two-bath units. Some of the unit features include private balconies, upgraded kitchens with stainless steel appliances, a pantry, breakfast bar, designer cabinets, tile and carpet flooring, washers and dryers, bay windows and central air conditioning and heating.

MC Companies opened the recreation center and the first two of 13 buildings in summer 2012, and the rest of the project will wrap up in November. While the firm will not receive much tenant feedback until the spring, according to McCallister, the reaction thus far has been overwhelmingly positive. In the coming years, MC Companies plans to focus on multifamily construction, and McCallister says that the Place projects at Canyon Ridge and Creekside and the future Presidio Trails project mark the first in a number of multifamily projects for the company down the line.

“I think the open floor plan, the nine-foot ceilings and the desert ambiance really set the units apart,” McCallister says. “We think that these properties are very well placed in the market and that they are filling a need,” he The Canyon Ridge community will feature pictur- says. “We’ve hardly had any new construction over esque views, resort landscaping, a luxury pool and the last couple of years. This is the first part of our spa, a fitness center and a clubhouse. It’s sched- planned expansion over the next three to five years, uled to open in late spring 2012. and the Place projects are the first two developments. We have put extra emphasis on construction THE PLACE AT CREEKSIDE in multifamily over the next several years.” Located in northeast Tucson, the firm also has The ACORN ASSOCIATES ARCHITECTURE LTD. Place at Creekside currently under construction. For over 30 years, a primary focus of Acorn Associates Architecture Ltd., has been our service to the development sector. Through a Built on a 31.67 acre piece of property, the devel- process of creative collaboration, our Multi-Family architecture expresses the client’s development vision, while simultaneously opment will consist of 13 two-story buildings. In the meeting prospective user lifestyle requirements. Past projects include some of the most enduring and successful apartment heart of this desirable residential area, Creekside community projects in southern Arizona. also has convenient access to employment centers, shopping, a variety of restaurants, local schools and the major arterials, as well as tremendous views of the Catalina Mountains. “Creekside is more residential and suburban, whereas Canyon Ridge is a more urban location,” McCallister says. “It has great mountain views, and is located in the northeast part of Tucson, which is one of the more desirable parts of the city.” The Place at Creekside will eventually feature 352 units. Phase one, currently under construction, includes 208 units made up 50 one-bedroom/onebath units, 10 one-bedroom/one-bath plus den units, 116 two-bedroom/two-bath units and 10 three-bedroom/two-bath units. Like Canyon Ridge, the Creekside apartments will feature all-electric gourmet kitchens with pantries, breakfast bars, stainless steel appliances, tile and carpet flooring, washers and dryers, private balconies or patios, bay windows and central air conditioning and heating. Residents will have access to a resort-style pool and space, fitness center and clubhouse. MC Companies is also the developer of this project, with MC Clark-Wayland Construction building the community.

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Top Of Their Game Building a foundation for success

Spanning a territory that includes Ontario, Quebec and far into Eastern Canada, Elad Canada is no small player when it comes to real estate development on a grand scale. The company proudly boasts more than 55 holdings altogether, with no plans to slow down as it continues its quest to acquire new and interesting projects.

Elad Canada President Shay Braverman Vice President of Development Netanel Ben-Or Location Toronto, Ontario

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sive features, incredible architectural competency and unique, cohesive themes that will leverage the properties to attract new market shares and diverse consumers in each area. High-end condos in Montréal Being developed on a site that’s adjacent to the Olympic Village pyramids in Montréal, Cité Nature, Phase 3 will stand as an 14-floor building, housing 162 gorgeous condominium units. The structure will include units with one to four bedrooms, as well as ground-level duplexes.

In fact, with eyes on larger, more competitive markets, Elad Canada is bringing its reputation for success and its stellar business model to Greater Toronto and Montréal, thanks to three new projects that will bolster the company’s already exceptional portfolio. “Our Cité Nature initiative is located in a beautiful place that residents are truly going to love,” says Cité Nature, Emerald City and the New York-style Shay Braverman, President of Elad Canada. “This loft office spaces of the Nordelec building are all is truly an investment that has it all, including modinitiatives that Elad Canada is currently crafting as ern amenities and a gorgeous view. It’s situated in it continues to further the standard for exceptional an area that’s already established, but at the same property development. Each site showcases exten- time still developing rapidly.”


Cité Nature will be completed in stages, with the first phase focusing on building the condo units themselves, which will overlook De Maisonneuve Park and the Botanical Gardens of Montréal. Due to the scenic view and expansive landscape, this undertaking is slated to be constructed as a concrete and glass development, which will offer a spectacular vista to residents living at all levels. The entire process has been seamless and this is in no small part to the involvement of EBC, who have a longstanding reputation as one of the standout general contractors in the Province of Quebec.

Impressive Condominium Towers in Toronto The largest of Elad Canada’s upcoming developments will be the Emerald City Condominiums, located in Toronto’s Parkway Forest property area. These spaces will bring elegance and modernism to the Toronto housing market in an effort to expand the horizon of options available to potential residents.. Emerald City will incorporate a visionary architecture plan that accentuates a plentiful assortment of fine recreational amenities included with the design. Ultimately, the project will include six towers, with the first tower spanning 36 floors with an impressive 479 suites.

“The construction approach to Cité Nature was unique in itself,” Braverman says. “Our goal was to preserve the integrity of the landscape in such a way that the building would not detract from its natural beauty. By creating a majority concrete and glass “This development is absolutely huge and required structure, we are able to prevent this development extensive planning to conceptualize,” Braverman from interfering with people’s perception of the site, says. “We’re constructing the Emerald City towers while also establishing an impressive structure.” in phases so that each tower is given the primary

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Emerald City

focus of our team, instead of trying to delegate work around six individual jobs. This approach also allows us to virtually eliminate communication confusion and ensure a seamless development.” In an effort to encompass both living requirements, as well as lifestyle needs outside of the complex itself, Emerald City will provide easy underground access to the nearby Fairview Mall and subway station. Thanks to its stellar location, the complex will also offer residents the convenience of being situated near the Toronto subway system and Ontario Highway 401 and 404.

Loft spaces in Montréal However, Elad Canada’s portfolio is not just based around new establishments, as Cité Nature and Emerald City so elegantly illustrate. The company also specializes in renovation and expansion, as highlighted by the third project being undertaken by the company. The Nordelec building is a historical structure in Montréal that offers New York-style loft office, condominium and retail spaces, making it a highly sought-after business location. Elad Canada has undertaken renovations and expansion plans in order to restore the building’s distinctive neo-industrial brilliance, while upgrading the facilities to reflect modern necessities as well.

“The site for Emerald City is perfect because it’s a central hub for many different outlets,” Braverman says. “Residents will have direct access to public transportation and can even enjoy local shopping “Businesses admire the Nordelec building for its thanks to the connecting tunnel from this estab- uniqueness and classically beautiful style of arlishment to the Fairview Mall.” chitecture,” Braverman says. “Right now, we are

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The site for Emerald City is perfect because it’s a central hub for many different outlets. Residents will have direct access to public transportation and can even enjoy local shopping thanks to the connecting tunnel from this establishment to the Fairview Mall. -Shay Braverman

working to preserve this style while adding more space and upgrading the building to include more modern features. It’s difficult to merge the two worlds, but we’re confident that we can blend them together well.”

With these three new projects, Cité Nature, Emerald City and the Nordelec building, Elad Canada stands poised to continue its ascent to the top of the real estate market. Each initiative brings a new challenge to the table, allowing Elad Canada to ultimately prove itself.

Focused on growth Targeting cities with large growth potential like To- “We appreciate opportunities that allow us to hone ronto and Montréal has proven strategically impor- our skills and prove that we’re always at the top of tant for Elad Canada since its inception in 1998. Af- our game,” Braverman says. “By continually taking ter purchasing its opening portfolio developments, on projects that pose new challenges, we are able the company has been notable in identifying areas to confirm that our process works and our methods with great potential, as well as prospective areas for are sound.” development. This strategy of identification, acquisition and development has grown the company to impressive levels in just over a decade. Moreover, sites like Cité Nature and Emerald City especially offer Elad Canada the ability to conquer an emerging market before the market becomes saturated. These crucial acquisitions also give the company a niche in the market because it allows them to define the scope of the development to come. “When you’re the first developer in a new market, you’re able to watch how that market evolves and where it will go as it grows,” Braverman says. “We’re continuing to move into markets where our projects can gain a unique foothold. From there, we are continually making moves to understand how the market will grow so that we can be a major player as it matures.” By working on properties that have an established reputation like the ever-popular Olympic Village or the recently acquired Nordelec building, Elad Canada is also able to bolster its repertoire of experiences to better showcase its talent for growth and adaptation. The company’s portfolio has also included work on sites such as Westmount Square in Montréal, Jardins Interieur on the southern shore of Montréal Island and Marieville Seniors Residence, located in the countryside of Marieville in Quebec.

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EBC is proud to team with ELAD for Cite Nature Development in Montreal Olympic Village EBC delivers construction services for Building, Civil Engineering & Mining www.ebcinc.qc.ca


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multifamily

P94 The Joseph Group

P105 Abbey Residential

P96 Insight Property Group

P108 Thor Equities

P98 NorSouth Developments

P110 Gables Residential

P100 Preface Group

P112 Schottenstein Real Estate Group

P102 O’Shanter Development

P114 DEI Communities

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Moving Forward

Embarking on efforts in senior housing

they are accustomed to providing rather than worrying about financing and development.” The $30 million Ashgrove Woods senior living development will offer 36 assisted living and 36 memory care units. It will include amenities like a cafeteria, dining room, post office, salon, library, recreation center and rehab clinic, and its location in Nicholasville offers convenient access to restaurants and retail. With a long history in retail and commercial develASHGROVE WOODS ASSISTED LIVING AND MEMORY CARE

The Joseph Group Owner Charbel Joseph Location Lexington, Kentucky

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opment, The Joseph Group of Lexington, Kentucky “What we tried to do was not put the campus out in the middle of a farm, on the outskirts of town or has partnered with Christian Care Communities somewhere that is typical of assisted living camto enter into the senior housing market and bring puses,” Joseph says. “We actually wanted the resia unique community to the area with Ashgrove dences to be a part of the community. The piece of Woods. Recognized as one of the most innovaproperty that I chose is basically on the south side tive and active real estate companies in central of Lexington, which is one of the highest per-capita Kentucky, The Joseph Group felt the largest nonincome areas of Lexington. It has all of the ameniprofit senior housing provider in Kentucky and their ties and shopping that the residents deserve and legacy and level of care was a perfect partner for would desire.” Ashgrove Woods.

“We have extensive residential and retail experience, In addition to the activity nearby, the area’s existand what we were able to do was bring a build-to- ing infrastructure helped decide where Ashgrove Woods would be located. suit model and partner with a nonprofit organization and aid them with the development and financing aspects,” says Charbel Joseph, Owner of the Joseph “Another component that made this project feasible Group. “We used our strengths from the commer- was that the land was already developed,” Joseph says. “The roads and infrastructure were already cial world to do just that, and allowed Christian Care in place. In today’s lending environment, it made Communities to focus on providing the care that


the project much more interesting to be able to buy a piece of property and literally hit the ground running, as opposed to spending millions of dollars upfront on the infrastructure.”

“Ashgrove Woods so far has exceeded our expectations,” Joseph says. “We are ahead of our sales projections on the homes. We hope to fill up ahead of expectation, which is based on a four-year model.”

CUSTOMER FIRST Ashgrove Woods will also offer independent living op- This early success has also prompted the Joseph tions for residents 55 and older, with 30 duplexes and Group to focus on senior living in the future as the 40 homes. Those living in the independent homes company looks to take on more projects. and duplexes may receive medical assistance from Christian Care Communities while still retaining their “We are moving the Joseph Group into senior housindependence. Joseph says that the unique develop- ing,” Joseph says. “We are getting known and want ment will allow spouses to remain closer together. to be known as a premier senior housing developer throughout the entire state and even throughout “For example, if the husband has dementia and the the Southeast. We really see the need, and it has wife is healthy, she can stay in one of the homes become our goal to develop senior housing and and he can stay in assisted living, but they are ad- move more toward that. We intend on providing jacent to one another so she doesn’t have to drive the senior adults with the types of communities across town or to another town to visit,” Joseph they deserve by exercising our development and says. “She can literally walk across the street and construction expertise in achieving that goal.” spend all day with him, all the while knowing he is being cared for 24 hours a day.” Qk4

The independent homes will offer maintenancefree living with access to a spacious clubhouse separate from the assisted living clubhouse and facility. Ashgrove Woods also provides Baby Boomers with a desirable community in which to live, while remaining close to their aging parents. “The other trend about bringing the families closer together is targeting the Baby Boomer generation,” Joseph says. “You have a lot of adult children that are in the 55 to 70 year-old range, and they don’t need any medical assistance. However their parents sometimes do. Instead of mom and dad living in their basement or above the garage, they can live next door. Everyone still has their independence, but everyone is still close together.”

Qk4 is a multi–disciplinary firm providing an array of services to both the public and private sectors including, Transportation, Site and Structural Engineering, Water and Wastewater/Reclaimed Water Services, Drainage/Stormwater Design, Surveying Services, Environmental Studies, Planning Services and Architecture Services. Qk4 offers unique design solutions and practices sustainability principles in all areas of service.

Architecture Engineering Planning

Groundbreaking by Design. According to Joseph, residents of Ashgrove Woods will be part of the community, with access to a variety of amenities and quality medical care from Kentucky’s largest faith-based, nonprofit senior living and long-term care organizations. “It’s a community, and with Christian Care Communities you have one provider that will meet all the needs and demands of the residents, whether you are in the independent living, the assisted living or the memory care part of the assisted living building.” The Joseph Group just recently broke ground on the project. The first homes are scheduled for completion in summer 2012, and the assisted living complex will wrap up in spring 2013. Future owners have already reserved lots. FALL 2012 | DDC JOURNAL

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Grayson Flats Apartment Homes

Prime Mover Experts in multifamily development opportunities

Insight Property Group Location Washington, DC

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Operating in the greater Washington, DC metropolitan area, Insight Property Group acquires, repositions and develops well-located multifamily and mixed-use properties. The company was formed in 2009, and since that time has assembled a talented and skilled group of senior team members. At this time, Insight Property Group’s portfolio consists of existing and to-be-developed multifamily assets totaling more than 1,200 units. The company is led by two principals and a senior leadership team of industry veterans. As such, the company has a vast amount of past industry experience in the Washington, DC real estate marketplace. The company’s two principals, Richard Hausler and Michael Blum, have over 50 years of combined industry experience, and together have acquired and developed more than 14,000 apartment and condominium units throughout the DC

area. Their efforts have also resulted in a number of award-winning planned communities, as well as the development of large-scale, mixed-use and office properties. Formed using strong and sound investment and underwriting principles, market discipline and relationship building, Insight Property Group has plans to continue to grow and experience the success it has encountered in recent years. The company currently has four sites under development, with one under construction and another scheduled to begin in the fourth quarter of 2012. There are also two more developments slated to break ground in 2013. The Grayson Flats Located in Arlington, Virginia, Insight Property Group broke ground on the Grayson Flats in fall


2011. The company acquired the 42-unit apartment project property at 1200 N. Rolfe in 2010 with intentions to build a 67-unit luxury residential community. The Grayson Flats have a scheduled completion date of December 2012 and boast an extremely desirable location in the RosslynBallston Corridor of Arlington County, Virginia. Whether traveling by foot, car or public transportation, the Grayson Flats offer a convenient location. The development is within walking distance of the downtown Rosslyn-Courthouse core, the Rosslyn Metro Station, the Courthouse Metro Station, Key Bridge and Georgetown. It also has convenient access to Route 50, Route 66, the George Washington Parkway, the Rosslyn Ballston Corridor and the city of Washington, DC. The new $26 million development will feature wood-framed residential construction and four stories located above a one-level concrete parking structure. Following the luxurious vision for the property, the Grayson Flats will be a high-end, Class A residential community. In addition, the units will also feature a number of high-quality finishes and amenities. All will include stainless steel appliances, granite countertops, full-size washer and dryers, balconies and terraces, hardwood flooring and high-end cabinets, fixtures, and lighting. Besides the structured parking with elevator access to all levels of the development, the Grayson Flats will offer a fitness center, resident lounge with kitchen, bar and billiards, outdoor terrace complete with fireplace, gathering spaces and rooftop terraces.

ro Station, the development is also in close proximity to downtown Washington DC, Rockville and Bethesda, Maryland. Scheduled to begin delivering units in early 2014, Silver Spring will provide a unique urban living experience in a six-story development with a twostory underground parking structure. Its range of amenities include a resident lounge and clubroom with billiards, a business center, wireless Internet connectivity, an outdoor pool, a state-of-the-art fitness center, yoga room, a guest suite and beautifully landscaped courtyards and grounds. The Silver Spring community continues a transformation of the area that has drawn renters far and wide. This shift and revitalization began several years ago with the redevelopment of a portion of the downtown core. The area continues to evolve as time goes on, and Insight Property Group takes pride in having a hand in the transformation.

SK&I Architectural Design Group, LLC SK&I Architectural Design Group, (SK&I) is a recognized leader in the Washington DC Metro Region in designing complex residential and mixed-use projects, with extensive experience in urban in-fill multi-family mixed-use design. Since 1999, SK&I has designed and planned over 11 million square feet of projects. These projects include residential condominium and rental mixed-use communities along with retail and office spaces.

As Insight Property Group nears completion on the Grayson Flats, the company is working to complete the civil plans and the construction documents for the project. Silver Spring Metro Located in the central business district of Silver Spring, Maryland, Insight Property Group plans to break ground on the Silver Spring Metro Property in the fourth quarter of 2012. Located on a 1.75acre site, the Silver Spring Metro will consist of 310 Class A luxury apartments, also offering easy access to highways, public transportation attractions, a variety of shopping and dining options, cultural attractions and several employment centers. The Silver Spring Metro was designed by SK&I Architects, and the attractive design complements the convenient and desirable location of the units. Located just two blocks from the Silver Spring MetFALL 2012 | DDC JOURNAL

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HearthSide Johns Creek

Understanding Your Brand Senior living for an aging population in the Atlanta area

After designing its first senior living project in 2004, NorSouth Development of Atlanta, Georgia has focused on senior living developments, creating the HearthSide brand to deliver a unique living environment for residents ages 62 and older. “Our HearthSide senior living brand was really conceived around the philosophy that we are providing a lifestyle for our residents,” says Brendan Barr, Vice President of Development for NorSouth Development. “For us, it extends beyond the physical side of the property, the bricks and mortar, and we focus more on the lifestyle that we are trying to deliver. Really what we are trying to promote to our residents is a lifestyle that is full of physical activity, intellectual challenge and social engagement or enrichment.”

NorSouth Developments Vice President of Development Brendan Barr Location Atlanta, Georgia

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whether it’s retail shopping, restaurants, medical service providers and parks and recreation areas—those types of things. Then, it’s about how we design our communities with our amenities space. Whether it’s our community room or our library, which is supporting that social enrichment aspect, verses our fitness center, our walking trails and our resident gardens, which promote that physical activity.” The HearthSide communities have seen a great deal of success, and Barr says that consistency in the team has contributed to that success. The firm has its own construction division, called NorSouth Constructs, which works on all of its projects, and the company uses the same interior designer, CC Design for all the HearthSide projects. However, NorSouth Development’s relationship with architect Foley Design Associates Architects, Inc. of East Point, Georgia has made the greatest impact on the projects.

With four HearthSide locations in place or in development in the Atlanta area, NorSouth Development seeks out amenity-rich locations and incorporates a variety of amenities in its communities in order to promote both social and physical health and “I think that first and foremost, the evolution of the wellbeing. developments through our relationship with Foley Design has been very critical, and I think we are at “We see value in mixed-use developments,” Barr a point now where we are completely on the same says. “We try to locate our communities in the page as to what this brand is to both companies,” broader context of the surrounding land uses, Barr says.


HearthSide Brookleigh has received a positive iniJOHNS CREEK tial reception. As part of a master-planned community called Johns Creek Walk, the HearthSide Johns Creek location offers residents a vast variety of retail, din- “The reception has been very, very strong, but it is quite early for us,” Barr says. “That location on ing and entertainment options. The first affordable development in Johns Creek, the $13.7 million Johnson Ferry Road has very high visibility. We get strong traffic counts, and we are ingrained in a project will fill a great need for senior housing in very established residential community there. That the area, with a gated community that contains 90 units. HearthSide Johns Creek will include a resi- works to our benefit.” dent lounge, fitness center, salon, computer cenNorSouth Development plans to break ground on ter, library, outdoor fireplace, patio with grills and a HearthSide Peachtree City this summer, the first courtyard with a fountain. HearthSide community south of Atlanta. Looking at the bigger picture, the company hopes to expand According to Barr, residents come to the area to be beyond the Atlanta area and into more communinear adult children and grandchildren. NorSouth ties in the southeastern United States. Development has identified this demographic as the 35-54 year-old age group, and the company attempts to locate its communities within high con- “We want to take this concept out of state,” Barr says. “There’s no question that independent secentrations of this demographic. niors is the fastest-growing segment of our country’s “We are on a daily commuter pattern,” Barr says. population. The southeast has grown so much over “We’re less than a mile from the Johns Creek cam- the last 10-20 years, and a lot of that growth is compus for Emory Hospital and all those ancillary medi- prised of those 35-54 year-old households, where one or both partners might have an older parent cal office providers that locate themselves adjacent to hospitals. They are right up the road from us, who would like to live independent nearby.” and we’re across the street from Technology Park, which is a business park. That’s a major employment center, which translates to those adult kids being in close proximity to it, and HearthSide Johns Creek.

CC Design Our congratulations to NorSouth Development on another successful project! We are proud to have developed the custom interior for John’s Creek and look forward to future projects with this great company.

BROOKLEIGH Opened in March, HearthSide Brookleigh is the first senior living development under the HearthSide brand within the Atlanta City limits, and is nearly 50 percent leased. The $15.4 million development, which will be the third phase of the master-planned community, will offer 121 units. The project represents a collaboration with the Housing Authority of DeKalb County, a partnership that has garnered a glowing review from Executive Director, Pete Walker. “We try to provide a pathway out of poverty and to the American Dream. For many low and middle-income Americans, a little bit of help can make all the difference,” he says, “Public-private partnerships like this are one of the greatest ways I know to bring the best minds together to help grow communities and help our seniors and families achieve their goals.” When completed, the community as a whole will consist of 378 senior apartments, a 70,000 squarefoot retail village, 94 single-family homes and 205 luxury apartments constructed around a central park. While NorSouth Development has just begun to show potential residents the new community,

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Divide And Conquer

Preface Group Principal Bryan Coggins Location Newport Beach, California

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Leading the way in urban revitalization

Operating in dense urban areas in southern Cali- “The people in our firm, much like the urban home fornia, real estate development firm Preface Group buyer, are in their twenties, thirties and forties and looks to add value to the land and community with have an environmental focus,” Coggins says. “We each project. take pride in the fact that our projects are mostly adaptive re-use. We tear down an apartment build“I think our business model is very unique,” says ing or old industrial building, and we’re not conBryan Coggins, Principal of Preface Group. “It has tinuing the urban sprawl. We like that, and it makes been in place for about 10 years, and we get posi- us feel good and certainly the cities that we work tive feedback from the homebuilders. We’re one of in appreciate it.” the few firms in California that solely focuses on land development. We get a lot of calls every week Preface Group also noticed a trend of people movfrom builders who are looking for lots.” ing back into cities compared to the growth of suburbs over the past few decades. The firm’s land The firm concentrates on urban areas with projects development provides people the opportunity to that draw high-value residents and add worth to live in the city, close to jobs, entertainment and neighborhoods. While past development has fo- restaurants, and avoid the commuting associated cused on extending the boundaries of cities, Preface with suburban life, Coggins says. Group specializes in adaptive re-use within cities.


“In the 60s, 70s and 80s, everybody wanted to get “It was the first detached live/work project in the out into the suburbs, and I think we’re kind of see- state of California, and I believe in the United ing the switch, especially over the last ten years,” States,” Coggins says. “It was targeted to lawyers, he says. “Now you see a lot more people focused accountants and entrepreneurs with a real light use. on living back in the city and not commuting hours You actually have three different floors you can live and hours on freeways and trying to live close to on, but the ground floor is an office you could have their work. We provide subdivisions and lots for your clients come in to without fully coming into builders to get involved in cities and urban infill your house, and that was received very, very well.” areas.” Preface Group has experienced a great deal of LIMITED FOOTPRINT success in southern California, but the company The company also promotes efficiency and sustain- believes that its strong business plan has the poability, and tries to limit its footprint as best it can. tential to succeed and thrive in other urban areas The redevelopment of existing urban sites coupled throughout the United States, as well. with creating high density properties is the core of Preface Group’s environmental efforts. “Our business model has worked well in southern California and we have significant business here, “We like to operate in the A, A-minus and B-plus but we would certainly like to grow throughout markets,” Coggins says. “We like to do three-story other urban core areas,” Coggins says. “It doesn’t detached homes because our buyers are young. work in rural areas, but it certainly works in urban What that allows us to do is raise the density and cities. We are knocking out about 12 projects per put more lots on a given space, which means ob- year just in California, and we will probably get that viously fewer homes that have to be built up in up to about 20 projects a year soon.” hillsides, mountains and suburbs. We do adaptive Urban Infill Development re-use, higher density developments that are built Due to proximity to employment and amenities, efficient land usage and lack of mello roos taxes there is strong demand for single in urban cores, and at a macro level they are very family housing on urban infill sites. Each infill property presents unique challenges and constraints that must be navigated by green.” Preface Group developments often use materials like aluminum, steel, bamboo and fiber cement. The company also minimizes energy usage with solar panels, skylights and high efficiency HVAC systems. Plus, smaller grass areas help to cut down on water usage. “We like to do roof decks and balconies, and almost all the homes have a small yard,” Coggins says. “We don’t use a lot of grass. You’re living on decks, you’re living on balconies and we have a lot of pavers. We have a very minimal water use on all of our developments.” According to Coggins, the green efforts also cut down on pollutants running into local waterways. “Instead of using asphalt, on every project we’ve ever done, we use pervious pavers. This allows water to filtrate naturally through the ground instead of flowing down the asphalt, collecting pollutants and debris, and eventually settling in our oceans and streams,” he says. BEING FIRST The company currently has eight projects underway and has sold three. One of its recent showcase projects was a 34-unit live/work development.

experienced professionals. The Preface Group, LLC and Hamilton Land Development, Inc. have a proven track record of successful infill developments.

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Eyes On The Prize O’Shanter Development Company of Toronto is a family owned and managed development firm, which was founded in 1955. Since then, the company has continued to be respected within the property management industry, overseeing a variety of multi-residential properties. Currently, the development firm employs more than 50 staff members across 24 sites. Its portfolio exceeds 1.65 million square feet and 2,500 units. “It’s nice to have knowledgeable principals,” said Bill Scott, director of maintenance operations. “The immediacy of being able to talk to the owners at any time is helpful. Though Scott and other managers have been a part of the O’Shanter team for many years, they still appreciate the involvement and support of the principals.

O’Shanter Development Manager of Development Jilan Balbaa Location Toronto, Ontario

O’Shanter Development takes pride in its variety of services and high standards. Being the first property management company in Canada to achieve ISO 9001 Quality Management and ISO 14001 Environmental Management certifications, it has continued to follow these high standards. But it’s more than preserving O’Shanter’s reputation; the daily goal lies in maintaining the value of the properties and the satisfaction of its customers. “We try to do our best to maintain and keep the intent created when these buildings were first

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Developing multi-residential properties in Toronto

designed,” said Balbaa. “At the same time, we try to modernize these buildings in a way that meets current energy consumption standards and to meet environmental criteria, economic criteria, and still satisfy the tenants who call our buildings home.” IN-HOUSE KNOWLEDGE O’Shanter Development is justly known for its positive client and tenant relationships. Paul Wilson, O’Shanter’s senior maintenance supervisor, attributes much of this relationship to its highly skilled in-house staff and minimal use of outside contractors. “One of the advantages that we have is our positive client relationship with the tenants in the buildings,” Wilson explained. “We don’t outsource a lot of our contractors. We have a lot of skilled in-house staff such as: plumbers, electricians and carpenters. They get to be recognized and known by the tenants in the buildings, and a lot of times the tradesmen actually get to know the tenants. That is a huge advantage because they can communicate with them and explain to them whatever the situation may be.” Despite the size of the portfolio, O’Shanter believes if the staff is happy the customer is happy, and there is an evident correlation between the retention of staff and the retention of tenants, both of which seem to be good for business.


While other companies often lose residents during large improvement and renovation projects, O’Shanter has managed to retain its tenants while still significantly enhancing its buildings. “If you look at the amount of renovations and upgrades we do and compare that to the amount of vacancies that we may have, you would be impressed,” said Wilson. “If you begin to do a lot of destructive work when renovating a building, you put yourself at a high risk that your vacancies largely increase, if you do not approach the situation properly. We can do it and still maintain a very low vacancy. Our relationship with the tenants is a great advantage as our occupancy remains high even during complex projects.” The relationship and respect that O’Shanter provides its tenants on a constant basis is returned in periods of construction. 50/50 PARTNERSHIPS In recent years, O’Shanter has begun purchasing buildings in partnership on a 50/50 basis. It bought a 272-unit property at Yonge and Lawrence in Toronto and made a number of improvements that still maintained the overall character of the building. “We went into an occupied building and removed over 1,000 radiators and changed it over to highefficiency fan coil hydronic heating,” explained

Scott. “We had to cut out walls between the living rooms and the bedrooms and we had to build bulkheads. Because there were occupied suites, we couldn’t sand or drywall. It was a really challenging project and we spent many millions of dollars on upgrades, but ultimately it was a success” The company also purchased a pair of buildings closer to downtown Toronto at 5 and 11 Elm Avenue, making similar improvements. And at 660 Briar Hill Avenue, the company spent approximately $3 million on capital improvements to a 72-unit building. There, the O’Shanter team rebuilt the garage, installed a new chiller and heating system, rehabilitated the fan coil and upgraded the exterior lights, corridors and therma-pane windows. “When you compare what the building looked like before and what it looks like after the work is complete it is impressive to the point that we have even had inspectors tell us that they would be happy to live in the building,” Balbaa said. O’Shanter’s principals continue to push their team to come up with unique solutions to problems. For example, at 2100 Bathurst in Toronto – a building purchased in February 2011 and currently undergoing many renovations – the company created synthetic brick panels for balcony railings. Scott explained why: “This was necessitated by changes in the building code and the weight of

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brick parapet that was on the balcony. It couldn’t be replaced with real brick, but we didn’t want to change the appearance of the building. We found a way to do it.” As O’Shanter Development moves forward, the principals will continue to seek out smart investments to add to its portfolio. “They are still out there actively looking for properties in good neighborhoods,” Scott said. “We look at an awful lot more than we have interest in or make offers on, but they still remain actively interested in expanding the portfolio.” As the company grows and expands within the property management industry there is constant need for modernization. The firm does not stray from its values and business principles, the corporate objective of continuous improvement and the maintenance of a high standard of corporate ethics is always close at hand.

arctic painting ltd. We are proud and very fortunate to be partners with O’Shanter for 40 years. Congratulations to O’Shanter on your continued success from your friends at Arctic Painting Ltd.

Viana Roofing & Sheet Metal Limited Viana Roofing & Sheet Metal Limited is about service, workmanship and safety. It prides itself in being associated with O’Shanter Development. Viana Roofing is proud of its quality of work. The latest methods of roof construction are implemented daily by its trained workers. Safety during construction is paramount in every project and Viana is fully bonded and insured with limits up to 10 million. SATISFY YOURSELF & CALL VIANA.

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Smart Deals

Creating a profitable company through strategic development and repositioning of apartments

Abbey Residential is a multifamily manager and acquisition strategy of how they underwrite deals developer headquartered in Birmingham, Alabama and their approach to financing.” that has been in business since 1984 and owns approximately 8,500 units from South Carolina “Abbey has grown in size over the years without to Texas. Frank Barefield, Owner, Founder and using other people’s money other than borrowing President of Abbey Residential has seen the com- from lenders; Seller’s like to hear that a potential pany grow from the first apartment community purchaser does not have to go out and raise money purchased in 1984, a home that was converted in order to purchase the asset,” Barefield says. “I into seven apartments, to the most recent acqui- believe this gives us an advantage when buying sition and renovation purchased in December of deals when it comes down to choosing Abbey or 2011; a 720 unit apartment community purchased another group having to go out and raise the funds in Houston, Texas. “It has never been about the in order to purchase the deal. We also have very number of apartments we own and manage; it has strong regional banking relationships that underalways been about smart growth and owning profit- stand our business plan, know our management able real estate. We are very fortunate that through team personally and will work with us on making the toughest of times over the last few years, each very tight deadlines when purchasing a deal.” one of our properties covered their monthly debt commitments and cash flowed!” Barefield attri- While financial flexibility and strong banking relabutes the company’s success to sticking to their tionships are important to a company’s success;

Abbey Residential Owner, Founder and President Frank Barefield Location Birmingham, Alabama

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Abbey has grown in size over the years without using other people’s money other than borrowing from lenders; Seller’s like to hear that a potential purchaser does not have to go out and raise money in order to purchase the asset. -Frank Barefield

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having the right team in place within your organization is critical to executing the game plan. Barefield makes at strong effort to point out that Abbey Residential is built on a foundation of core values, including integrity, honesty, excellence, respect and loyalty. The company is run by a four person management team, including Barefield, that all have a vote when it comes to acquisitions and if the vote is not a 100 percent “yes,” the deal does not move forward. “I prefer not to be the sole decision maker and believe this involvement creates a more productive working environment for our company. It’s hard to ask everyone to work on a project if they are against it from the beginning; making sure everyone has a vote ensures that when we purchase a deal, everyone is on board!”

the cost of putting in two-inch blinds in an apartment was made back in less than a year by the rent increase that was achieved by installing the blinds. The additional rent each month created additional cash flow for the property each year, which translates into an increased value for the property. It was a very profitable idea and the best news was that it came from one of our employees.” Barefield continues to say, “I believe in having a very open company where everyone gets to say whatever they want to say to me or anybody else and I encourage people to disagree with anything that I have done or anything that someone else has done if they have a better idea. In the long run, the only thing I care about is that we find the right answer to the issues that we are trying to address.”

The company also encourages all employees to contribute with ideas and has a monthly contest where the employee or onsite team that submits the “best” idea that can create value for the company or a property, will win $500. “One of the ideas an employee came up with was to start using two-inch blinds in the units,” Barefield says. “As it turned out, this was a great money maker because

Abbey Residential develops new multifamily properties and acquires existing properties that have repositioning opportunities. Our goal through repositioning/renovations is to add value to a property and over time profit from the improvements. “We don’t want to buy the prettiest property on the corner just so we can say that we own this particular property,” Barefield says. “The only thing we are

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going to get is a $15 or $20 increase a year in rent, similar to owning a stock that pays a steady dividend every year. I’m interested in making a lot more money than that on every transaction and the way to accomplish this strategy is purchasing assets that can be repositioned. An example of this would be buying a distressed asset in a very solid location where you could update the interiors of the apartments and fixed all of the deferred maintenance issues and potentially move the rents $100 or more on each apartment. We have had no problem finding these types of deals that provide a huge return on our investment.” On the development side, an example of Abbey Residential showcasing some its strength, is when the company purchased a property in the Woodlands area of North Houston, Texas and developed 360 apartments. With available land scarce in the areas, the firm found a residential subdivision that had some financial trouble and was able to purchase the land, along with an existing home that had already been constructed on one of the lots. “There was really no other property in the area to be developed into multifamily, so we went out and bought a residential subdivision that about 15 lots on it by a lake,” Barefield says. “One house had already been built and a couple of other lots had been sold to people who were going to build on them. What we ended up doing was buying from the developer all of the remaining unsold lots, and then we purchased the lots from the people that had not yet started to build. We paid $1 million for the one house that had already been built and then ended up tearing it down! You have to really believe in the site to do something like this, but we loved the location and knew this development would be a home run.”

The attorneys of Sirote & Permutt are proud to support Abbey Residential Banking Law

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As Abbey Residential looks to the future, Barefield says the company will continue to make smart deals and seek out opportunities that yield a high return on investment. “As I stated earlier, I try not to be focused on how many apartments we own,” he says. “If we don’t buy anything today, I’m not going to get bent out of shape about it. The deals are out there and they will come, but I try not to make deals fit if they are something that won’t work. There is nothing worse than spending your time, energy and money on buying a property that you do not make any money on and struggle with; we will continue to be patient until we find the next development or repositioning deal that makes sense for our company!”

Dunston Construction & Maintenance Dunston Construction & Maintenance was built with over 20 years of hands on experience in the construction field, specializing in the multifamily and condominium rehabs and renovations. We strive to bring you both professional and quality turn-key services, allowing you to make one phone call for all your needs.

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Palmer House

Palmer House Fitness Center

Protecting

Investments Thor Equities flourishes with investments in history Palmer House Honore Ballroom

Thor Equities, based in New York City, is recognized as a leader in urban development throughout the nation. However, the company’s true focus is on preserving the beauty of history in everything it takes on.

Thor Equities CEO Joe Sitt Location New York, New York

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The famous Palmer House in Chicago is a current investment Thor Equities is involved with, and it recently reached its final phase of redevelopment. The multimillion-dollar project will help aid the restoration of the hotel’s entire infrastructure, while also updating communal spaces and retail developments within the longest, continuously running hotel in the city.

With an impressive portfolio of $5 billion in assets, Thor Equities continues to push the markets by pursuing premier retail, commercial, residential and hotel properties in high-density urban areas. “It has been an honor to bring the Palmer House into This dynamic goal has led the firm to establish a the 21st century,” Sitt says. “Renovating and restoring this iconic property has been a labor of love, and strong position this specialism. we are proud to have struck a balance between “Thor Equities really tries to focus on historical pres- the hotel’s incredible history and the amenities that ervation in the urban marketplace,” says Joe Sitt, modern businesses and private patrons demand.” CEO of Thor Equities. “We really like working on those types of projects because we like to see an investment in history.”

When completed sometime in the near future, the refurbished Palmer House will be home to 1,639


updated hotel rooms, conference spaces, a fitness center, a luxury spa and three restaurants and bars. Current tenants connected to the property include Hilton, Starbucks, the UPS Store, Crocs, Aldo and Ultra Diamonds. With so many moving parts, Thor Equities found some challenges in progressing with the restoration. “There was tremendous pressure with the project because we had to keep the hotel open, so we had to work alongside the hotel guests,” Sitt says. “That made the project take a little longer.” Along with the need to keep guests and private patrons happy and safe, Thor Equities made sure to take its time with the restoration so the company could focus and refine each step in the process. “We really wanted to make sure we could preserve everything, and that everything we added or changed was consistent with the hotel and with the history,” Sitt says. The famous Palmer House ceilings, featuring artistic masterpieces, were restored with a careful eye and retouched by a team of experts. The historic Peacock Door, by Tiffany, was reconditioned and transferred to be even more striking in the front lobby. Also, the Grand Ballroom’s beautiful chandeliers were taken down, cleaned, restrung and polished for the first time in over 90 years.

Thor Equities has combated the challenge with the company’s central investment strategy, which is to first identify underperforming sites and properties. It then forms a site-specific plan to take action. This strategy is geared toward making the most out of the property’s initial value. From there, the company works alongside with and utilizes its strong network of industry leaders to develop a plan that makes a redevelopment smart and significant. With a highly trained squad of investment leaders and developers, it works to generate strong real estate opportunities and solutions. These tactics have paved the way for other real estate developers, and Thor Equities continues to lead the urban market with its expansion of incredible restorations. “When considering a restoration, we ultimately think about how it will work best with its environment,” Sitt says. “We take responsibility to make sure the investment is taken care of in the most respectful way for all parties.” Structural Construction inc Of all the elements that go into making a successful interior construction project, perhaps none is more important than the human element. At Structural Construction, we guide you every step of the way, listen to your comments and provide whatever support is necessary to take the worry out of your projects. This personal attention is indeed rare in today’s fast-paced business world, but as a Structural Construction client, you can count on it.

The Palmer House is located in the Loop of Chicago and oversees Lake Michigan. Nearby attractions include the Magnificent Mile, the Art Institute of Chicago and High Streets. Thor Equities has also worked on many other well-known redevelopments, including many historic buildings along Fifth Avenue in New York, various shopping centers around the nation and the famed Coney Island in Brooklyn. Experience Overcomes Challenges With its reputation burnished by the Palmer House addition to the company’s portfolio, Thor Equities’s portfolio now consists of over 15 million square feet of space. With such success, the company has also seen some challenges along the way. Within the past few years, just like numerous other real estate developers, a meek economy made it hard to find funding for certain projects. “Everybody in the real estate industry has seen a challenge with the current economic state,” Sitt says. “That’s just part of the industry at this time.”

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Commitment Personified As an award-winning, vertically integrated real estate company, Gables Residential specializes in the development, construction, ownership, acquisition, financing and management of multifamily and mixed-use communities.

Gables Residential Vice President of Marketing Lynette Hegeman Location Atlanta, Georgia

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All aspects of multifamily communities improved by conscientious developer

knowledge has helped to create and develop communities that have been very well received.” Hegeman says. The company also takes pride in its effort to incorporate green initiatives into its projects. The efforts range from simple recycling programs to following LEED and EarthCraft standards, with every Gables property incorporating some type of green aspect.

“Our ability to effectively manage projects we own as well as third-party managed projects can be attributed to our dedicated and experienced associates, our superior knowledge of the communities served and our expertise in development and “We are mindful of our impact on the local environmanagement.” says Lynette Hegeman, Vice Presi- ment and have adopted a green initiatives program dent of Marketing. “Service is the key. In addition to help do our part. These initiatives, represent to the outstanding communities we create, we fo- merely the first steps towards what we hope will be cus on how we engage residents and encourage greater emphasis on going green by our company them to use and enjoy the unique amenities that and industry. Ultimately, our goal is to be a leader we include in each community. Ultimately we want in sustainable apartment living.” Hegeman says. residents to have more than just a place to live; we want them to have a great experience. MULTIFAMILY REBOUND Gables Residential’s success is firmly rooted in its Gables Residential currently manages approxi- skilled and experienced development team and mately 38,000 apartment homes and 400,000 can take on projects and succeed where other square feet of retail space in high-growth areas companies might easily fail. It has taken advantage such as Atlanta, Austin, Dallas, Houston, south of the rebound of the multifamily sector and curFlorida, southern California and Washington D.C. rently has eight projects underway. “Gables develops in Established Premium Neighborhoods, essentially high-growth and high em- Located in Rockville, Maryland, Gables Upper ployment areas. By focusing on these specific Rock, a 275-unit luxury apartment development neighborhoods we are able to understand better currently under construction, includes two buildthe expectations and needs of our residents. This ings of 62 and 213 units respectively. Gables Resi-


dential is currently pre-leasing the first building with move-ins scheduled for June.

Gables. With such a desirable and visible location came the opportunity for the developer to create an iconic building which they took full advantage of.

“It is part of an area called the Upper Rock District,” says John Malone, Gables Development Director. “When the Gables development team and the archi“It’s a preliminary development plan situated on a tect Robert Behar were designing Gables Ponce, it 20 acre site with room for 275 additional residenc- was important that the building design reflect the es in the second phase and some additional retail rich history of the area. One of the things that they and office in the third phase.” needed to do was use natural stone, much like that used on historical buildings in the area,” Hegeman The apartment homes will feature a number of says. “Finding the stone was not an easy task since attractive features, such as hardwood flooring, the stone was no longer available in the area. The stainless appliances, quartz countertops, tile back team actually imported it from the Dominican Resplashes, built-in microwaves and washers and public and that shows the commitment to the dedryers. The development will consist of one-, two- sign and the great lengths that the team has gone and three-bedroom units and will offer a number of to make sure that they preserve that.” community amenities. Other projects under development include Gables “There is a center courtyard at the building with Emory Point, located in Atlanta, Georgia, Gables a pool, a club room, a demonstration kitchen, an Park Plaza II in Austin Texas, Gables Post Oak, Gaoutdoor club room with an outdoor theater and bles Tanglewood and Gables West Ave II, all three an Internet café on the main floor,” Malone says. located in Houston, Texas. “The buildings will be National Green Building Standard certified which is the nationally approved benchmark for green single family and multifamily Oasis Fire Protection At Oasis Fire Protection, providing quality craftsmanship and customer homes.” service is the focus of our mission statement. We are unique in the Complementing the amenities of Upper Rock, the development sits at a convenient and desirable location. “It’s near one of the most-used intersections in the county,” says Malone. “It’s less than two miles from the Shady Grove Metro stop. There is a shuttle bus that runs from the community to the Metro that the residents will be able to use, as well as a bus stop. Also under construction, is Gables Ponce, located in Coral Gables, Florida. The first phase broke ground in June, 2011 and is slated to begin delivery of 250 luxury apartment homes and 26,000 square feet of retail space in December, 2012. Even before the first phase has been delivered, a second phase of the development was announced this past April, adding a 10 story building and 119 apartment homes in a mixed-use building. Both phases will bring 369 apartment homes to Coral Gables, the first offering in luxury rentals since 2004. “The retail portion of the project has received a lot of interest,” says Fabio Rodriguez, Gables Development Director. “We have the majority of the retail committed and we hope to announce who will be our anchor tenant in the near future.

industry because we utilize all of our staff to insure the customer’s needs are met. Our certified technicians are committed to insuring your project is done in a professional and timely manner. CEC’s and educational seminars are part of an ongoing strategy by Oasis Fire Protection to ensue our foremen and their crews are leaders in the industry.

Family Owned and HUB Certified

Gables Ponce, located at the Gateway to Coral Gables is in a highly desirable area, in close proximity to the Federal Highway, the Metro rail station, the University of Miami, the Village of Merrick Park, Miami International Airport and downtown Coral FALL 2012 | DDC JOURNAL

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Comfort And Convenience Award-winning, residentfocused development

Known for creating outstanding communities for living, working, shopping and entertainment, the Schottenstein Real Estate Group has become a respected leader in the real estate industry in various markets.

The Schottenstein Real Estate Group has received recognition for its hard work in recent years. The company was named both the Developer of the Year by the Building Industry Association in both 2006 and 2010.

“I think that our company has one of the best teams around,” says Brian Schottenstein, Director of Development and Marketing. “We have a total of seven vice presidents. We all work hard to reach our individual goals every day, and we all have long-term goals for the company that we strive to reach in the future.”

Schottenstein Real Estate Group Director of Development & Marketing Brian Schottenstein Location Columbus, Ohio

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“I think it’s really nice when you get any sort of recognition, especially for all the hard work that all of our employees put in,” Schottenstein says. “We really like to work hard for our customers, which are our residents. We want to make them happy, and they come first. I think with the product that we have been putting out there the last few years, you Operating in the Midwest and Florida, the Schot- can see the reasons why we won [the award] in tenstein Real Estate Group has developed, market- 2006 and 2010.” ed and managed more than 10,000 for-sale homes or condominiums, over 25,000 rental units and an LANCASTER MIDTOWN array of commercial, retail, land and office projects. Adding to its portfolio, the Schottenstein Real Estate The company places a great deal of importance on Group has begun work on the Lancaster Midtown offering a wide variety of amenities to provide its project, a rental community in Lancaster, Ohio. The residents with comfort and convenience. 240-unit development will sit on a 24-acre site and have convenient access to area retail. “At all of our communities, we really focus on the residents, including the leasing options we offer,” “Lancaster, like most of our locations, is near a large Schottenstein says. “We have short-term leases, retail corridor,” Schottenstein says. “It’s right off Ety and all of our leases go month-to-month after the Road where you have a Giant Eagle right next to the 12-month term. site. There is a Kohl’s, a Menards and a lot of restaurants around there, as well as the River Valley Mall, In addition, the company’s properties offer a satis- which is a large mall. It’s all within walking distance, faction guarantee warranty, 24-hour maintenance so we came up with the name Lancaster Midtown and variety of attractive amenities. because we think it has a midtown type of feel.” “We have state-of-the-art fitness facilities, resortstyle pools, wireless clubhouses, business centers, juice bars, dog parks and gardens,” Schottenstein says. “We try to really stay ahead of our competitors when it comes to amenities.”

Lancaster Midtown is the first new apartment community in Lancaster in 20 years, and the city has expressed a great level of excitement over the new development. Schottenstein says that the community will offer a variety of unit sizes and options.


Lancaster Townhome

“The whole city, including the mayor, is really excited about this development,” he says. “We’re going to have a 5,000 square-foot clubhouse, a resort pool and a fitness center. We are going to have four different styles of units, including a one-bedroom garden, a two-bedroom garden, a two-bedroom townhome and a three-bedroom townhome. We will have a nice variety of units to choose from.”

large residential mixed-use project that we are going to develop. I think that branching out into other markets in the Midwest and Florida will really help to grow our company.”

Other amenities include a WiFi business center, meeting rooms and terrace areas. The project will wrap up in the fall of 2013, and the Schottenstein Real Estate Group began leasing in July. The company has made quick progress due to the favorable weather, and the clubhouse will be completed as leasing ramps up to full capacity during the fall. Depending on the weather, the company will be able to complete approximately 30 units each month of construction. Properties such as Lancaster have helped the Schottenstein Real Estate Group expand in recent years, but Schottenstein says that the company would like to continue to grow and explore other markets. The company recently finished 525 units in Hilliard, Ohio, which are now fully occupied. “We have already started to expand, but I would like to expand even more,” Schottenstein says. “We plan on starting over 1,100 rental units, including the one in Lancaster. We also have a development in New Albany, Ohio, in Orange Township, the Polaris area and Mason, Ohio, which is down in the Cincinnati area. We also have a site in Palms Beach Gardens, Florida, which is 43 acres and a FALL 2012 | DDC JOURNAL

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Vista-Tulsa, OK-Livingroom Model

Vista-Tulsa, OK-Kitchen Model

Vista-Tulsa, OK-Bedroom Model

Finding Your Niche Strategic investment in smaller United States markets Started as a small, private company with one multifamily property, DEI Communities has grown into a successful property management company that owns and operates apartment communities throughout the Midwest, South and Texas.

DEI Communities President and COO Dan Clatanoff Location Omaha, Nebraska

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“Our investment strategy sets us apart from other operators. We like to beat out the competition through best practices and technology,” says Dan Clatanoff, DEI President and Chief Operations Officer. “What we do is select superior industry partners with a proven technological advantage and apply it to apartment operations in secondary and tertiary markets. This helps us out beat the competition in these smaller markets.”

Based in Omaha, Nebraska, DEI Communities manages 44 apartment communities, 11,000 apartments in 11 states and 27 cities. Much of the firm’s success stems from the best-in-class products it uses, such as Yardi and RealPage, both providers of property management software. “We use Yardi’s web-based property management platform for our general property operations and back office accounting. We use RealPage’s revenue management system, called Yieldstar. The single greatest return on investment (ROI) with Yieldstar is the ability to drive rent growth. It drives the value of the property when taken to the market,” Clatanoff says. “We have RealPage’s


operations technology software for our purchasing and electronic payables platform which helps us keep tight control on spending. It’s real time, and the corporate office can see the latest and greatest information about any property at any given point in time.”

Hattiesburg, Mississippi; Columbus, Cincinnati, Ohio ; Kalamazoo, Howell, Grand Rapids, Michigan to name a few. We’re talking about these kinds of markets, and not New York, Philadelphia or along the coast,” Clatanoff says.

The company selected RealPage’s Level One as their call center technology partner. Level One answers all of the prospective renter phone calls/email inquiries for all apartment communities 24 hours a day, 7 days a week. The call center is located in Columbia, South Carolina. The goal of the call center is to schedule prospective renter appointments the next day for the apartment community. In doing its due diligence before selecting RealPage, DEI compared the services of others in the industry. Above all, DEI Communities focuses more on the system that would offer superior service, periodic accountability through performance measures and not necessarily the most costeffective option.

FTK Construction Services FTK Construction Services offers a wide variety of construction services to meet virtually every client need. Whether renovating an existing building, constructing a new building, or installing a new roof, we have the project team to meet your goals. Because our background is in property management, we know how renovation projects can impact your daily operations. It is our guarantee that we will exceed your expectations by delivering a quality product in a timely manner. FTK Construction Services has a team of dedicated, experienced professionals who provide exceptional customer service and pride themselves on not only knowing the project but also the client and their expectations.

“It doesn’t always come down to pricing,” Clatanoff says. “Much of it comes down to process and their metrics. It’s nice to be able to select an industry partner, but if I don’t have a performance metric to measure where we’re at today versus where we’ve been, it doesn’t do much good.” DEI operates primarily in the central part of the United States, from Michigan to Mississippi to Texas to Nebraska. Instead of operating in large metropolitan areas such as Los Angeles, Washington, D.C. along the east and west coasts, the company has found success in secondary and tertiary markets in the Midwest, South and Texas. We’re talking about smaller markets such as St. Louis, Missouri; Omaha, Nebraska; Tulsa, Oklahoma City, Oklahoma; Tyler, Longview, Kilgore, Midland, Lubbock, Texas; Jackson, FALL 2012 | DDC JOURNAL

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We like to be able to outperform the neighbors down the street, and they typically are not the large real estate investment trusts found in the large metropolitan areas. The really large real estate investment trusts are savvy operators, and they operate in the primary markets. -Dan Clatanoff

Clatanoff says, “DEI Communities has found its niche in these secondary and tertiary markets and can outperform the competition in these markets.” “We like to be able to outperform the neighbors down the street, and they typically are not the large real estate investment trusts found in the large metropolitan areas,” he says. “The really large real estate investment trusts are savvy operators, and they operate in the primary markets.”

Clatanoff has also tried to create a strong corporate philosophy, starting from the corporate office located in Omaha, Nebraska. Through his experience in the U.S. Air Force, he learned the importance of treating people with dignity and respect, and has brought those ideals to DEI Communities as he promotes building trust, teamwork and spirit of continuous improvement in everything we do throughout the company.

“If we look at a particular process that is not working for us, we try to pick it apart and figure out why we are doing certain things, and then we try to streamline the process,” Clatanoff says. “We want to instill a continuous improvement atmosphere throughout the company so we can move this “For the most part, revenue solves all problems,” company from good to great.” Clatanoff says. “If you have property that is performing well revenue-wise, you can overcome DEI Communities also places a great deal of many problems such as overspending on a importance on measuring performance. Assessing particular property or capital issues on a property. the strides that the company has made allows DEI It’s a lot easier to put capital dollars in when a Communities to work toward and achieve its goals. property is performing well versus when a property is not performing very well.” “If you don’t measure it, it won’t get better,” Clatanoff says. “It’s nice to know where you have been, and VISTA SHADOW MOUNTAIN then you have to make some changes to improve A project that typifies the overall DEI approach is that particular process, but you have to have the 593-unit garden apartment community known measure on the back end to see if we achieved the as Vista Shadow Mountain, Tulsa, Oklahoma. kinds of results we were looking for.” The property was foreclosed on by the lender as occupancy of the once showpiece community had DEI Communities has grown in recent years, but shifted downward of 50 percent. A $10M renovation the company has clear goals and a focus for the project saw DEI awarded with the 2010 Zenith coming years. Awards for the Best Community and Remodel of the Year from the Tulsa Apartment Association. DEI “Our goal is to be the apartment management Communities also received the National Apartment company for 20,000 units by the end of this Association’s Large Renovation of the Year for decade,” Clatanoff says. “Right now, we are 2011. Vista Shadow Mountain is a good example managing 44 apartment communities, and over of DEI Communities’ ability to identify well-located, 11,000 apartments.” distressed properties and turn them around and provide a return on investment. DEI Communities realizes that each property requires investment dollars, but a successful property and steady revenue will solve most potential problems at a property.

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design build

P118 Proctor Construction Company P120 Manley Design & Construction Management

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On Stable Foundations Leveraging local expertise for solid growth Thriving in Florida’s Treasure Coast region, the Proctor Construction Company has grown into an extremely respected and diversified firm since its inception in 1976. “Proctor Construction has been a local company on Treasure Coast for over 35 years,” says Todd Krajewski, Project Manager for Proctor Construction. “We take pride in our workmanship, our quality, relationship building with owners, and repeat business based on our experience and our end project. We are a diversified company capable of everything from healthcare and living facilities to educational, and we’ve built a very good reputation and continue to grow through the years. The firm started as a very small, family-owned construction company, and it has grown into a fairly mid-sized company over the years.” Proctor Construction stresses the importance of integrity, honesty, quality and dedication to clients

Proctor Construction Company Project Manager Todd Krajewski Location Treasure Coast, Florida

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and the community, and has found its niche working in and operating in Florida’s Treasure Coast. “It’s a smaller community,” Krajewski says. “It’s not a metropolitan area. People move to the area today because it’s a beautiful community to live in. The owner, having been born and raised in this area, has grown the company steadily, and I think part of what makes us successful is that we don’t try to get too large. We keep up with our quality by having a team with an average tenure of employment of over 10 years. When you work for Proctor, you stay.” VERO BEACH SCHOOL Building on its experience, Proctor Construction is currently building the new Vero Beach Elementary School. The firm began construction on the 120,000 square-foot replacement school in April 2011 and will complete the entire project within the next eight months.


“It’s actually a staggered schedule,” Krajewski Like all Proctor Construction projects, Vero Beach says. “This school is being built next to an adjacent Elementary has utilized many local subcontractors. school on the same site. We will be demolishing the old school, and that’s where some of the new park- “One of our main priorities at Proctor is utilizing as ing and playing fields and things of that nature will much local participation from different subcontracbe. Everything should be complete by November. tors as possible, especially in this hard economy,” The original project design had the school set to Krajewski says. “With this being funded by local tax receive a LEED Silver certification. Costs associated dollars, we always strive to use as many local subwith the certification and budget constraints forced contractors as we can, and we’re very proud of that. the project to forgo pursuit of the certification, but On this particular project, we are using between 80 Proctor Construction is still following the LEED Sil- and 90 percent.” ver standards and implementing a variety of green components into the school. As Proctor Construction nears completion of the school, Krajewski hopes the final project will please “The cooling system is a thermal ice storage system,” parents, teachers, students and community memKrajewski says. “The local utility company offers a bers. rebate for the school district. Basically, what it does is it makes ice at night, so the utility company offers “We hope to continue with the success we’ve had a rebate for the school district to run their cooling thus far with the schedule and getting the owner system at night making ice. Then during the day moved in,” he says. “Hopefully we’ll have a very when it is peak hours, they cool the school by using smooth transition.” that ice. It is a very efficient system, and they also get a rebate on their electric bill.” Fleetwood Group, Inc. Vero Beach Elementary school will feature a number of other green elements, as well. The roof system has a solar reflective cap sheet to reduce the amount of heat penetrating the roof, thereby lowering cooling costs. Other green features include low-E glass in the windows, sunshades, high-efficiency light fixtures and tile flooring made from organic materials. The school will offer students and teachers the latest in classroom technology with things like Smart Boards, overhead projectors and audio, and the construction of the school utilizes a unique wall design, Krajewski says. “The school is actually a tilt-wall construction,” he says. “The tilt wall is concrete panels that are built on the ground and then stood into place. They offer a lot of different features, and this particular school will have a stone face. You can do a lot of different accents, reveals and things of that nature.” The project has progressed smoothly and is on schedule, and Krajewski attributes much of the good fortune to the economy and the weather. “Fortunately, there have not been a lot of challenges,” he says. “I kind of equate that to the economy and the construction industry being somewhat down. Manpower has not been an issue. All of our subcontractors have manned the job and we’ve met all of our schedules and dates. The weather this year in Florida has been fantastic, as well.”

Fleetwood Group, Inc. has been dedicated to helping schools create flexible learning spaces since 1955. And, although K-12 is where we started, the exceptional utility of our flexible furniture solutions has spread. Today our customers also include colleges, libraries, businesses, healthcare, and churches. With over 30% of our orders being “specials”, we take delight in providing unique product solutions.

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Excellence Abounds

Industry knowledge and best practice in construction management

Through its 10 years of operation, Manley Design and Construction Management has earned a reputation for professionalism and quality befitting its status as an award-winning, internationally renowned company.

Manley Design & Construction Management Owner and Founder Allan Power Location Surrey, British Columbia

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The firm’s success is largely due to its unique approach to the design and construction process. In all of its projects, it works to gain a full scope of all of the work involved.

representation, design management, construction management and general contracting. This allows for a more streamlined workflow throughout the many stages of construction, and ensures that projects adhere closely to owners’ expectations upon completion.

“Manley sets itself apart by going through the total design-build process,” says Allan Power, P. Eng, Owner and Founder of Manley. “This viewpoint helps the company to understand the owner rep’s role, with a construction team backing him up.”

Manley’s encompassing approach to construction was shaped by its involvement in major construction projects in British Columbia, other parts of Canada and Italy. While managing projects ranging from the expansion of Vancouver International Airport, to the Cleveland Dam Seepage Control Project, the capital costs of which total over $1 billion, the company developed important relationships with construction, engineering and architectural firms.

The company boasts a full range of construction services that see property owners through the entire process, from initial design to finalized construction. These services include owner

RECIPE FOR SUCCESS By working closely with organizations across many fields of expertise and specialization, Manley is able to unify the many elements that contribute


Manley sets itself apart by going through the total design-build process. This viewpoint helps the company to understand the owner rep’s role, with a construction team backing him up. -Allan Power

to design and construction. The growth of the “After that, the business really dropped off, and then company, as well as the formation of its business there was the combination of financial concerns. model, is rooted in a close attention to the industry. Things are picking up once again, however.” “We are always open to expansion, and we have been looking for the right individuals to help that expansion,” Power says. “It is a challenge to find the right people to help and make a company grow.” Maintaining and expanding professional relationships is Manley’s foundation for success, and it is what allows the company to bring expertise to a wide range of projects. The firm coordinates with experts from a wide range of construction and design professions, bringing in the right people for each individual project. Communication is also a key component to creating a positive workflow, enabling each member of the team to be utilized as effectively as possible. That’s why Manley’s leadership team stresses the importance of communication as central to its operation. Of course, the road to success is often fraught with peril, and the company has had to overcome a few challenges along the way.

It appears the company is rebounding quite well from these challenges. Manley’s current work includes construction management on the final three phases of Emaar Canada’s Willis Creek, a $17 million project that involves the construction of 44 town house units, as well as landscaping of the surrounding area. This project will be completed in 2013. Manley has managed the design and construction of an art gallery and restaurant expansion for the Vancouver Convention Center. The art gallery, called Sweet Sorrow Lounge, was recently completed, and it has been designed to showcase art in unique and interesting ways. For its work on the Irish pub Mahony and Sons Burrard Landing, Manley was awarded the GOLD Award from the Vancouver Regional Construction Association (VRCA) for the 2011 Awards of Excellence for projects under $15 million. In the future, Power says that the company will look to expand its work even further.

“Leading up to the [2010 Winter] Olympics in “Our long-term goals include continuing to expand Vancouver, it was extremely busy,” Power says, the client base and perform design-build work,”

Mahony and Sons

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he says. “It is always a company goal to manage and design properties and create a feeling that you are being successful and making a difference.” Manley has the tools at its disposal to provide for the needs of both the public and private sectors. The company is a qualified supplier for professional consulting services in project management to the Ministry of the Attorney General, Minister Responsible for Multiculturalism, Ministry of Public Safety and Solicitor General and the Ministry of Aboriginal Relations and Reconciliation. With such widespread qualifications, Manley is capable of addressing the needs of many different types of clients. With the company’s future success in mind, and as demand for increasingly environmentally friendly buildings increases, Manley Design and Construction Management is determined to stay ahead of the curve. “When it comes to being green, we try to get involved with projects tied to green buildings and try to follow those requirements,” Power says. “We are still waiting on pursuing LEED [certification], but that is in our future, as well.” Lakeview Power Systems Inc. Lakeview Power Systems Inc. has been serving the lower mainland for over 35 years providing our clients with quality service and workmanship whether it be a tendered project or design build electrical. We strive to stand out as a leader in the electrical industry, at Lakeview Power Systems Inc. “We Power Progress”

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healthcare

P124 College Street Partners P126 HealthSouth Corporation P130 Development Solutions Group

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Problem Solvers Specializing in healthcare real estate development

College Street Partners (CSP), a growing healthcare real estate advisory and development firm, specializes in real estate that helps clients meet long-term healthcare goals.

center at the Beverly Hospital. Northeast Health Systems is an independent network of four community hospitals serving patients in suburban Boston communities. The organization’s ambulatory care center at Beverly Hospital required updates and improvements to meet the growing demand for its outpatient services.

“We are a boutique firm, and are not a large development company,” says Robert Burr, President and CEO of College Street Partners. “We have strategic partnerships with healthcare organizations. “We were engaged by Northeast Health Systems Our development projects have almost always risen to do a complete re-use feasibility analysis for that out of some other advisory or relational situations property,” Burr says. “That was about 135,000 we have with either hospitals or healthcare orga- square feet on 10 acres that involved everything nizations. From that perspective, we are not devel- including environmental, structural and market opment-oriented as much as we are with providing analysis to find out if the property could be rehabilihealthcare organizations with solutions to whatever tated as a hospital and what else it could be used their strategic facility objectives are.” for. After about a six-month study, the conclusion was that it had already reached the end of its useCSP has leveraged its skills to develop a solution fulness and that it should be replaced.” for Northeast Health Systems and the outpatient

College Street Partners President & CEO Robert Burr Location Beverly, Massachusetts

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College Street Partners then conducted a full market analysis and eventually purchased a 10-acre site in Danvers to build a new 100,000 square-foot ambulatory surgery center and office building. The outpatient and day surgery center will include four surgery suites and cutting-edge diagnostics. Initial studies showed that the facility required 130,000 square feet, but a unique design lowered the total square footage and increased efficiencies.

foundation poured and built, and we’re framing now. It’s just a matter of enclosing the building and doing all the internal construction work, fixtures and fit-up. We’re just looking forward to continuing our smooth construction process.” College Street Partners has showcased its strengths on these projects, and as it looks to the future, the company plans to continue to offer a variety of creative solutions for healthcare organizations.

“This was a state-of-the-art design,” Burr says. “We engaged a medical specialty design firm out of Mil- “We are real problem solvers,” Burr says. “We’re waukee to come up with a pretty unique central fundamentally a real estate organization that takes registration. We call it a “spoke and wheel” design, pretty complex healthcare real estate objectives where there are different services in the build- and are able to implement some solutions. It is cering, but everyone registers and waits in one cen- tainly not easy to build in the Northeast, and buildtral area. It’s a much more efficient way to lay out ing for medical uses is even more complex with its space. After developing a unique, more efficient regulatory issues and some of the other idiosyncradesign, we were able to incorporate all the services sies of that kind of construction. Our goals are to in just 100,000 square feet.” provide real creative, innovative, problem-solving solutions for healthcare organizations.” HATHORNE HILL Also in development for College Street Partners is the Hathorne Hill Care and Rehabilitation Center. East Boston Savings Bank The $20 million facility will provide 71,000 square If you are like College Street Partners, looking to build a relationship with a trusted financial institution, you can rely on East Boston Savfeet of patient space and skilled nursing facilities. ings Bank. EBSB is a locally-based bank with a strong capital position and a willingness to lend. As a long-time real estate lender in the The center will also fill a need in the area for more South of Boston to New Hampshire markets, our experienced and diverse lending teams offer flexible financial options for loans up to $25 rehabilitation programs and services. million.  Call EBSB’s lending team at 800-657-3272. Burr notes, “For a variety of reasons, there have not been many new skilled nursing rehabilitation centers built in the last decade; therefore, there is a whole void of new design dynamics in that world.” Hathorne Hill will have space to accommodate over 120 patients, and the unique design focuses on creating a more comfortable atmosphere for those who use the facility. “This incorporates something called the ‘household model’, where it has a lot more of a residential feel as opposed to the institutional feel for its residents,” Burr says. “We have three distinct wings on the building, and each wing has its own living area with fireplaces, eating areas and outside gardens in which the patients can feel like they are in much more of a home-like residential space rather than in a hospital.” Construction is scheduled to conclude in October or November, and the facility will serve patients by summer 2013. According to Burr, construction has progressed smoothly to this point and CSP does not anticipate any setbacks in the project schedule. “From here on in, it’s just about hoping that the weather is cooperative so that we can maintain our construction schedule,” he says. “We are past the unforeseen site uncertainties because we have the

Bob Burr, CSP, Paulette McNiff, EBSB & Joe Scurio, EBSB

Congratulations College Street Partners Construction Permanent Financing 800.657.3272 Member FDIC / Member DIF

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HealthSouth Rehabilitation Hospital

Quality Focus Attention to detail underscores reputation as a leading healthcare developer

HealthSouth Corporation Vice President of Design and Construction Lawrence Whatley Location Birmingham, Alabama

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One of the largest healthcare providers in the coun- ground on two inpatient rehabilitation hospitals in try, HealthSouth Corporation of Birmingham, Ala- southwest Phoenix, Arizona and Littleton, Colorado. bama delivers superior patient care. The company specializes in inpatient rehabilitation facilities and DESIGNING FOR THE INDUSTRY has developed a team and a reputation that outper- “We have a standard 40 bed prototype, and Littleforms all others in the industry. ton, Colorado and southwest Phoenix both will have the same floor plan, the same layout and the “It’s extremely important to have quality facilities,” same number of patient rooms,” Whatley says. says Lawrence Whatley, Vice President of Design and Construction for HealthSouth. “With all of the The design of the facilities will allow therapists and tough competition in the industry today, we strive staff to monitor patients during physical therapy to be leaders in inpatient rehabilitation care. We while working in both the charting and conference have spent a lot of time and effort in developing our areas. technology to make sure that we are the leaders in the industry.” “One thing we have attempted to do is design the nurses’ stations such that they will have visibility to HealthSouth Corporation strives to be the health- all patient rooms,” Whatley says. care provider of choice for patients, employees, physicians and shareholders, and the company’s The inpatient rehab hospitals will also allow nurses industry-leading technology and strategies have to easily record patient information right at patients’ helped to make this goal a reality. HealthSouth has rooms. hospitals in 27 states across the country, as well as in Puerto Rico. Adding to the already extensive “The other aspect of our new technology is our nursportfolio of hospitals, the company has broken es have the ability to work more out on the floor by


HealthSouth Rehabilitation Hospital

using mobile work stations, and it gives them the ability to record information for patients right at the door of the patient room as opposed to having to go back to the nurses’ station to record information,” Whatley says. In addition, the new HealthSouth hospitals will offer private rooms for patients. “The private rooms are another aspect of our hospital, and we feel that they obviously give the patients more privacy,” Whatley says. “It also provides the ability for the staff to treat the patients better.” The 49,000 square-foot Phoenix facility will sit on 6.87 acres of land and is scheduled to open in the third quarter of 2013. “We are anticipating starting in October of this year, and we should be completed and opened by September 2013,” Whatley says. Located on an 11.65 acre lot, the 49,000 square-foot Littleton hospital will also open for patients in the second quarter of next year. Both facilities will complement and add to existing HealthSouth hospitals in both areas, and provide approximately 300 to 400 construction jobs and 90 full-time medical professional positions. COMMUNITY NEED Plus, HealthSouth has another hospital that began construction in Martin County, Florida. With an estimated 27 percent of Martin County’s population over the age of 65, the comprehensive medical rehabilitation center will fill a great need in the community. “That facility is a 34 bed hospital,” Whatley says. “It’s a single-story facility, and it’s located on the campus of Martin Memorial Hospital. It is a joint venture between Martin Memorial and HealthSouth Corporation, and it’s strictly for inpatient rehab.” The comprehensive physical rehabilitation hospital will offer specialized rehabilitation programs using advanced technology to help patients recover from a major illness, injury or surgery. Construction will soon begin and the facility is scheduled to take about one year to complete, Whatley says.

The Burell Group The Burell Group, a full service architectural / interior design firm, is proud to have a continuing relationship with HealthSouth Corporation in designing state-of-the art, patient friendly and cost effective hospitals across the USA for over 12 years.

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It’s extremely important to have quality facilities. With all of the tough competition in the industry today, we strive to be leaders in inpatient rehabilitation care. We have spent a lot of time and effort in developing our technology to make sure that we are the leaders in the industry.

ROBINS & MORTON IS PROUD TO SUPPORT

LAWRENCE WHATLEY

AND

HEALTHSOUTH

-Lawrence Whatley

“We began construction at the beginning of April of this year, and we have a 12-month construction duration,” he says. “In May of 2013, we will be open to receive patients.” In an effort to build top-quality hospitals, HealthSouth Corporation seeks out skilled and knowledgeable contractors and architects. Not all design and construction team members have past experience working with HealthSouth, but most projects use contractors and architects that have worked on previous developments for the company.

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“We generally select architects and contractors who have experience in healthcare facilities,” Whatley says. “Typically, they have previous design or construction experience with HealthSouth. They are certainly qualified in the healthcare industry and have the ability to deliver projects for us on time and on budget.” SHARP TURNS ANTICIPATED.

DEAD ENDS AVOIDED.

MILESTONES MET.

As HealthSouth Corporation moves forward, the healthcare company plans to continue to grow and build new facilities, as well as take a more environmentally conscious view to its projects. “We would like to grow our company organically by having additions to our current facilities,” Whatley says. “We expect to build new hospitals each year, over the next few years. We are looking at opportunities to design green projects and reduce the carbon footprint.”

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Facilitating Physician Ownership Top-Notch development solutions for the healthcare industry

Lincoln Medical Center

As a full-service real estate development firm specializing exclusively in healthcare facilities, Development Solutions Group, LLC works to provide high-quality real estate services to physicians and other healthcare providers.

“Our clients are not delegated to junior people with just a few years of experience,” Shearer says. “We all have 25 to 35 years of experience in the development, design and construction industry related to healthcare, and we have the ability to strategize with businesses about the right decisions for them on a planning and conceptual basis all the way through to managing legal entity formation, financing and overseeing very high-caliber, medical-specific design and construction resources during the DSG recognizes that real estate ownership is an im- development period. There is the continuity of a portant business strategy for those in the medical single business plan all the way through the profield. With that in mind, the developer brings lend- cess.” ing relationships with medical-savvy banks and its own investment capital to the table to ensure ad- ENERGY EFFICIENCY equate financing for each project. Although medical facilities have high utility demands, Development Solutions Group focuses “We back the doctors with our capital,” Shearer on designing efficient buildings with a number of says. “If they need us to put in some of our money, green features. we will, but they maintain major decision-making control even if we are the majority of the equity “Medical buildings are a different animal than source for that project. That’s very different than commercial office or retail or other product types,” most other medical developers.” Shearer says. “It’s a business that is very customized to the delivery of healthcare. We have a lot Development Solutions Group offers a wide range of technical facilities within our suites, including of services, including program management, fea- linear accelerators, outpatient surgery centers, sibility analysis, entity formation, capitalization medical exam rooms and imaging equipment, so and financing, leasing, site selection, design and our buildings often have higher demands for water, construction management, asset and property electricity and so forth.” “We are a different type of medical real estate developer,” says Andrew E. Shearer, Chief Operating Officer of Development Solutions Group (DSG). “All we do is medical real estate. Our niche in the market is that we partner with physicians and other medical providers, including some hospitals, so that they can own the building that they occupy. We facilitate physician / provider ownership.”

Development Solutions Group Chief Operating Officer Andrew E. Shearer Location Denver, Colorado

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management and dispositions. The company also has senior partners managing all projects, ensuring that its clients have access not only to a variety of services, but also to experienced professionals.


Because of this, Shearer says that the company makes sure that its designers and architects make the most out of energy-efficient technologies and systems.

patient-base rooftops. We even have competing orthopedic practices and ophthalmology practices in the same building that all came together to practice collaboratively in the same market.”

“All of our design teams that we engage incorporate good engineering practices relative to energy efficiency, lighting, building insulation, HVAC systems and we use renewable materials for certain components,” he says.

Currently, the greatest challenges in the healthcare development industry stem from legislative risk relative to the changing political landscape and regulatory landscape for healthcare, with reimbursement controlled by the government and private insurance companies. Development Solutions Group attempts to create real estate solutions that still allow doctors to control occupancy costs while other expenses fluctuate, according to Shearer.

RED ROCKS MEDICAL CENTER Adding to its list of achievements, DSG recently completed work on the Red Rocks Medical Center in Golden, Colorado. The $31 million facility is 118,000 square feet and includes a surgery center “We feel that with the changing regulatory environwith three operating rooms, three swing operating ment makes our offer in the marketplace even room procedure spaces and three overnight and more attractive. As costs are rising and revenues recovery beds. are being reduced for these practices, our model allows the providers to reduce and control their “That project is an example of our bread and butter,” occupancy costs through ownership,” he says. Shearer says. “It’s a physician-driven project where “Keeping those costs down is a real plus to those they wanted to own their own real estate and locate practices.” their clinical offices in the same building as two Health Connect Properties major ancillary businesses that they also own. One Health Connect Properties congratulates Development Solutions Group their latest medical office development, Red Rocks Medical Center. of the ancillary suites is an outpatient surgery cen- on HCP provides a variety of healthcare real estate services that include property management, property marketing and leasing. We have forged ter in which many of the physician building-owners a valuable ongoing relationship with DSG and are proud to be members of their team, providing one-stop real estate solutions to their clients. are also owners in a joint venture arrangement with a local hospital system.” The facility also includes a cancer care center for both medical and radiation oncology. “The cancer center has a mission statement of being the premier cancer center of excellence in the Colorado Front Range,” Shearer says. “That’s integrated delivery of radiation oncology, medical oncology, cancer counseling, cancer-related physical therapy and general surgery practices, as well as a women’s imaging center for breast imaging, bone density and ultra-sound scanning. It’s a collaboration of about seven different tenant businesses that came together to do that in conjunction with a local hospital partner.” LINCOLN MEDICAL CENTER The Lincoln Medical Center, another DSG project located in Parker, Colorado, is a $30 million, 115,000 square-foot medical office building with ancillary facilities. “The Lincoln Medical Center is a project that includes over a dozen tenants, many of whom are surgeons, that again wanted an outpatient ambulatory surgery center in their building,” Shearer says. “It’s a class-A building in a marketplace that is centrally located between four hospitals and near

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green building

P133 MP Lundy Construction P136 Treasure Homes P138 Pheasant Hill Homes

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St George Church

Enhancing The Experience For over 45 years, MP Lundy Construction has provided outstanding services for all types of commercial and residential construction. However, several years ago, the company noticed that something needed to change in the industry, and its team started blazing a path toward more green and sustainable building. Now, MP Lundy is leveraging that strong, respected background to lead the way in environmentally responsible construction practices. “Sustainability and green building has taken a while to take hold in Canada, however, today LEED Cer-

History of respect, green for the future

tification has really gained traction in Ottawa as a building certification of choice,” says Don Anderson, Vice President of Business Development for MP Lundy. In 2008, Lundy Construction introduced Green Energy Performance Contracting (GEPC) into the building rejuvenation market. GEPC allows a client to leverage money saved on energy and operating costs to pay for sustainable building improvements with guaranteed energy savings. This enables the removal of the initial cost from the owner’s capital

MP Lundy Construction Vice President of Business Development Don Anderson Location Ottawa, Ontario NSLTeleport FALL 2012 | DDC JOURNAL

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improvement budget so that it can be transferred to the operating expense budget; this is where it would be paid by the resulting energy savings.

include the addition of an interior mezzanine which will add 21,500 square foot of space to the interior of the building.

In essence, GEPC allows owners to upgrade their A $4.4 million project, the office building is deaging infrastructure, generate energy and opera- signed to have a major focus on incorporating and tional savings, integrate sustainable design ele- maximizing natural light. The construction includes ments, reduce maintenance costs, provide cost adding 23 large windows and a 55 foot-long skycertainty, and improve the environment for all oc- light that will light the main stairwell. cupants. “Beyond the high-efficiency energy systems, the AVAYA OFFICE BUILDING tenant has elected to create day lighting throughOne of MP Lundy’s current projects in Ottawa, the out the building,” Anderson says. “In doing this, Avaya Office Building, is a prime example of the there has been an amazing transformation of the company’s effort to build green and strengthen the space.” impact of sustainable construction. MP Lundy is converting the combination office/warehouse area MP Lundy plans to take the transformation even into a 70,000 square foot office space, with a high- further by upgrading the heating, lighting and ventech laboratory incorporated in the design. This will tilation systems and by adding a ‘living wall’. “All

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of the employees will benefit from these improvements, and I’m sure that it’s going to be a healthy and productive workspace,” Anderson says. A HISTORY OF SUCCESS The journey to the development of a strong and respected construction service company started back in 1967. Offering the best solutions to its customers has been a mission from the start and with the changing times and advancements in the industry, MP Lundy has adapted well to new trends in order to continue serving its clients as effectively as possible. However, in its sustainable construction activities, MP Lundy has done more than simply adapt. The company has won an award from the Green Building Council for its work in the industry and for its commitment to green building. Its commitment has even led the firm to upgrade and alter its own office building in an effort to be more sustainable. “In a lot of ways, we walk the talk with our own corporate sustainability position. We are in an older building that we’ve remodeled now, and we’ve redone it to introduce all of the green building features,” Anderson says. “We saw not only the environmental value of it, but also the business value of sustainability.” In 2009, all MP Lundy executives passed the test to become LEED accredited. “We did that not to sell it as a product for the company, but rather to bring the knowledge of what LEED is to our clients. It has proven to be very beneficial,” Anderson says. Among its efforts to help clients construct sustainable buildings, MP Lundy prides itself on its strong relationships. Anderson says that the company works hard to establish trusted partnerships between all parties, which are very important in delivering top-notch services. “We have been able to maintain the reputation and the loyalty of our clients and partners in this business,” says Anderson. Fundamentally, MP Lundy adapts quickly to the needs of clients and reacts to the changes in the markets in order to successfully deliver a project. Our mission is to be the best at organizing, planning and executing challenging projects in order to deliver the best possible construction experience to our clients. “We have been in business for 45 years, and we’ve worked hard to build a history of trusted relationships in this community,” Anderson says. “What is meaningful here is that we deliver the best possible construction experience, and that customer stays with us for a lifetime.”

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Jewel In The Crown Building affordable, practical homes with residents in mind

Started in 2009, Treasure Homes is a family-owned

Treasure Homes President Sarah Oudman Location Wheatfield, Indiana

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plementing green building practices and creating

business built on years of residential construction green homes is one way to accomplish that. experience that creates unique designs with sustainability, practicality and affordability in mind. “We have a desire to serve our community, and part of that is looking at how we preserve our commu“We look at a project as a whole and how different nity and how we help people make better use of components impact other areas,” says Sarah Oud- their resources,” Oudman says. “Stewardship is man, President of Treasure Homes. “It sounds so also important. For me, taking care of what I have cliché to say we offer ‘attention to detail’ because been given and helping other people do the same everybody says that, but that is part of it. We need is what it’s all about.” to be able to keep all the different aspects of the job organized and remember that there is a sci- IMPROVING RESIDENTS’ LIVES ence that goes along with the build of the house to The team at Treasure Homes weighs and considmake for long-term value. It’s not just about cutting ers a number of factors, features and amenities for upfront costs.” each home project. The company strives to implement a number of green features, but these eleSarah and Wilbur Oudman, the owners of Treasure ments must ultimately improve life for the resident Homes, have gained NAHB designations as Cer- and not simply add to the cost of the project. tified Green Professionals and Certified Aging-inPlace Specialists through their work with the firm’s “One of the key features that I look at is the buildprojects. The company has a strong commitment ing envelope and providing a very efficient exterior to serving and improving the community, and im- because the cheapest energy is the energy that


you never use,” Oudman says. “Concentrating on a high-performance building envelope is a good investment for people.” Interior remodeling changes and upgrades can always occur after the home is complete, but Oudman stresses the importance of structural and insulation investments for the long-term life and comfort of a home.

needs of the homeowners to create a unique and custom product. “We have a very common building envelope, but each of the houses reflects the personality of the homeowners that are going to live there,” Oudman says. “They are for people in different phases in life. I have one for a couple just starting out, one for a young family, one for empty nesters and one for a gentleman’s elderly mother.”

“You can always go back and change out the cabinets, the floors, the countertops and add more As Treasure Homes takes on new projects, Oudtrim, but it is very difficult to change the wall struc- man says that the company will continue to operate ture, the insulation, the windows and those types with the same philosophy and community-minded of things that make a house comfortable. Another focus. thing that goes along with this is making sure that the indoor air quality has been monitored and will “The hope that I have is that we continue to serve continue to be monitored so that the home will be our community through housing that is high-perhealthy.” formance and accessible, and my goal is really to satisfy the people that I am working with and to be THE GEM a good neighbor,” she says. In 2009, Treasure Homes built the first NAHB Green Home Building Standard, Emerald Level-certified Sherwin-Williams Sherwin-Williams provides customized solutions that help keep home in the state of Indiana with the Gem. The one residents happy and help you meet tight deadlines and control costs. We’re committed to continually developing innovative coatings and one-half story bungalow featured an open and & programs to help you keep your properties marketable while minimizing maintenance expenditures. Look at all the value we offer attractive floor plan with a focus on sustainability and & see how we can help you remain competitive in multi-family housing. green design. The home utilized insulated concrete basement walls, high-efficiency windows, insulated wall panels and spray-foam insulated roof assembly for an efficient envelope. It also boasts a tankless water heater with manifold plumbing system, watersaving fixtures and energy-efficient lighting.

Going Green? Ask Sherwin-Williams.

“It was very rewarding,” Oudman says. “When we started out, it was very satisfying to know that the things I thought would work; did. Part of that is trying not so much to just add expense, but how do you make a house work and still be within reach of the people with moderate incomes?”

Our products that carry the GreenSure® designation offer maximum performance and long-term durability, and were designed and manufactured taking steps to reduce environmental impact.

Treasure Homes has four new home projects breaking ground in the coming months, and Oudman says that there are several components common among the homes. “One of the common denominators for all these projects is people are concerned about not just paying lip service to green, but having a high-performance green home that will serve them for many years,” she says. “Accessibility is something that they are building into the house so if it is needed, it is ready, and they don’t have to go through the stress of preparing a house in an emergency situation.” While the homes may have some similarities, the company has the ability to tailor each project to the

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Hillside House

Sharing Knowledge

Pheasant Hill Home’s focus on green building starts local movement

Protection Island Cabin

Pheasant Hill Homes Partner Jason Schmidt Location Nanaimo, British Columbia

Positioning itself as a sustainable builder for the centers. As part of this effort, the company has future, Pheasant Hill Homes has found a niche tried to better define the term ‘green’, which in building green developments on beautiful Schmidt says gets thrown around often these days. Vancouver Island. However, it doesn’t stop there. The company also educates people on the benefits “We are doing a lot of education,” he says. “We of sustainability when building their homes. just don’t want to preach it, but really convey an understanding of what it should mean to ‘build “More and more people are really starting to think green’.” about green building,” says Jason Schmidt, Partner and Project Manager of Pheasant Hill Homes. Pheasant Hill Homes has conducted about seven “We have noticed a much greater response to sessions thus far, and the company believes this sustainable building as clients are beginning to exposure is not only beneficial for the consumer, think about the project and their operating costs but is also a good tool to build a strong brand in the for the future.” local construction industry. To help keep people informed, Pheasant Hill Homes started holding seminars at local community

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“We are working really hard to build a niche in the market,” Schmidt says. “There is an excess of so-


called green companies in the industry, and we try hard to be seen as a sought-after, respected sustainable construction company.”

construction company that is based on integrity, quality and people.

Besides gaining exposure in the industry, there are other challenges Pheasant Hill Homes faces head on, including when it comes to financing.

This integration of qualities has created a solid niche for Pheasant Hill in Nanaimo, British Columbia and the surrounding area. As the company’s talents have grown, it has embraced the value of building green.

According to Schmidt, the company educates clients on the fact that if more money is invested in a project at the beginning, the long-term savings more than pay for themselves. In time, the team at Pheasant Hill Homes has found that people have started to respond, especially given a recent dramatic rise in utility costs in the region.

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“It is a matter of helping people to understand the long-term savings compared with the up-front capital investment,” Schmidt says. One of the company’s current projects, a Passive House which will be certified by the Canadian Passive House Institute, an off-shoot of the Passivhaus Movement in Europe, is completely built around the basis of being well insulated and an extremely airtight structure. The Passive House reduces its energy consumption by an average of 85 percent compared to a similarly sized home. This in return reduces the house’s production of carbon emissions by 65 percent. Built right in Nanaimo on Vancouver Island, Pheasant Hill Homes will be utilizing the build to showcase sustainable technologies and continue to educate the public by conducting several public tours at different stages throughout the project. An award-winning history The company has been recognized with a CHBA Care Award for one new home and, recently, received a Vancouver Island Real Estate Board Award for Best Heritage Renovation on the Island. Pheasant Hill Homes did not start out focusing on building green. In 1999, Ken Connolly began renovating and building quality new homes, and Schmidt partnered with him in 2007 to continue to build a FALL 2012 | DDC JOURNAL

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Gabriola Island Getaway - Renovation

“We started out doing renovation work, and then we really wanted to show how far our quality could take us, so we started building projects that fit well and worked with the environment,” Schmidt says. As the company’s niche grows, so do the suppliers that work with it. Pheasant Hill Homes has seen an increase in supplier involvement with the green building movement, which helps it control costs for green homes, and supports the local economy. This growth is typified by partnerships with companies like K2 Stone, whose membership of the CAGBC and BuiltGreen perfectly complement the sustainable philosophy in place at Pheasant Hill Homes. This connection and position has made Pheasant Hill Homes a strong, successful business, and the company is planning to stay in the Nanaimo area for many years to come. “We will likely stay local because of the strong business market we create in our area, and we think we have a good product,” Schmidt says. “We are not looking to expand too much, as quality is more important than growth.” Using the three pillars of quality, integrity and people, Pheasant Hill Homes is becoming a respected local leader in the area it serves. The Canadian Home Builders’ Association awarded it with the CARE Award (Construction Achievements and Renovations of Excellence) for its professional acts and construction excellence in 2006. More recently, the Vancouver Island Real Estate Board awarded the company with the Commercial Building Award for Best Heritage Renovation for the new offices of Raymond de Beeld Architect Inc. From modest beginnings Pheasant Hill Homes continues to move forward with its focus on new green building practices. The company strives to provide its clients with the very best in quality, information, and communication throughout their projects. The company continues its venture with a much bigger picture in mind for the near future. “The next thing for us is to keep pushing and learning new technologies to expand our ability to share our knowledge and build sustainable projects,” Schmidt says.

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pg 142-192

affordable housing P142 Housing Authority of Columbus, Georgia

P166 Seawall Development

P145 Topeka Housing Authority

P168 Rural Neighborhoods

P148 New Hampshire Housing Finance Authority

P170 Omni Housing Development LLC

P150 The Whitsett Group, LLC

P174 Rea Ventures Group

P152 Pioneer Housing Foundation

P176 The Partnership

P154 Meta Housing Corporation

P181 PIRHL

P158 Region of Peel P161 San Antonio Housing Authority

P172 Chinatown CDC

P178 Bridge Street Development Corporation P184 Fairfield Homes P189 Millennia Housing Development

P164 Delaware Valley Development Company

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Building Pride In Communities

Taking a more active role in development yields huge results for housing authority

Arbor Pointe Leasing Office

Housing Authority of Columbus, Georgia CEO Len Williams Location Columbus, Georgia

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Working to provide affordable housing for residents and foster pride in the community, the Housing Authority of Columbus, Georgia (HACG) has multiple projects underway. One of these projects, the Arbor Pointe Development, involves the transformation of an old war-housing complex.

The multiphase project will total $60 million and provide 296 units of mixed-income housing, with another portion of the development offering 120 units of senior living apartments. In addition to providing an affordable, safe and attractive place to live for Columbus residents, Arbor Pointe will implement green initiatives and earn Energy Star certification.

“I think the biggest thing with Arbor Pointe is that it has converted the old war housing that was an insular community to what now has the feel of being “We take that approach whenever we can get enpart of the broader community,” says Len Williams, ergy savings into a project,” Williams says. “It’s baCEO of the HACG. “It has made a tremendous sically a strategic approach that in all the moderndifference with the crime rate in the area and the ization and development work we do, we try to go entire perception of the community. It’s also going green as far as possible and achieve those savings.” to benefit by creating ancillary development and Work began on Arbor Pointe in 2007, although the expenditures in the area.” economic downturn stalled work early on in the


Arbor Pointe

I think the biggest thing with Arbor Pointe is that it has converted the old war housing that was an insular community to what now has the feel of being part of the broader community. -Len Williams

Arbor Pointe

construction process. It started up again in 2009, and the housing authority expects to wrap it up by the end of 2012. While the project experienced some early setbacks, Williams believes that the development will proceed without any more major issues.

ment provides onsite counseling for residents, and some of the prominent features include a large sitting/TV room, fitness room, laundry room, computer lab, meeting facilities, offices for the property manager and service providers, conference space and a training and demonstration kitchen. Willow Glen’s convenient location is in close proximity to area shopping, dining and places of worship.

“We don’t think we are going to have a lot of challenges,” he says. “The project is so well done that we think it’s the best apartment complex in that “We wanted a location that was on a main road that entire south Columbus area, and we think we’re was not isolated given the clientele that we were going to do very well with it.” working with,” Williams says. “The project was designed to foster a sense of community. The archiA CASE IN POINT tects thought that it was a really important to foster The HACG has also completed the Willow Glen that sense of community. Everybody can keep an project, which features 28 units of affordable hous- eye on everybody else.” ing for individuals with special needs. The develop-

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Willow Glen features an attractive design to go along with the long list of amenities. The development sits next to an older building from the 1940s or 1950s, and the architect made a concentrated effort to have the design stand out. “We talk about the unique architecture of that development,” says Amy Moore, Chief Real Estate Officer for the HACG. “I think that the architecture is really quite neat. It’s different than anything around it.” According to Williams, the project has proven very satisfying, and residents have taken a great deal of pride in their new apartments.

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“It has been a very gratifying project for us,” he says. “They know that they would not have had the opportunity to live in an apartment that nice under any other circumstances given their unique challenges. It has really been one of the most gratifying developments I have worked on.” Completed in early 2011, the E.J. Knight project involved redeveloping existing garden apartments next to Arbor Pointe. The project gave a facelift to the local homes by replacing appliances, fixtures and roofing, as well as completing extensive interior and exterior work. “What we were able to do there is show what can be done with existing public housing in terms of integrating it with better design into the broader community,” Williams says. “It is located right next door to Arbor Pointe, and so we wanted to have something that enhanced Arbor Pointe, not detracted from it. We had the opportunity to use some stimulus money, and we did quite a few things with an energy conservation effort. We think it turned out beautifully.”

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CAHEC is a proud equity partner of the Housing Authority of Columbus, GA

The housing authority has worked with some of the same developers to create strong working relationships, but Williams also says that the organization has learned from working with the developers and has taken a more active role in the development of its more recent projects. “We have formed close relationships with our developers,” Williams says. “Our process has worked very well and has helped us with the Willow Glen project, which was entirely developed by the housing authority, as was the E.J. Knight Gardens project. We have gained considerable expertise by working with these developers.” Wallace + Perdomo, Inc. WP has worked with the Housing Authority of Columbus Georgia on many exciting projects including Arbor Pointe development and EJ Knight Gardens. Wallace + Perdomo is committed to transforming communities through sustainable urbanism and quality design. WP offers integrated planning and urban design services specializing in housing, neighborhood and community design to housing authorities, developers, foundations and public/private partnerships.

CAHEC One of the nation’s leading nonprofit equity syndicators, CAHEC helps finance the development of attractive and affordable rental housing. Headquartered in Raleigh, N.C., CAHEC works with investors and developers throughout the Southeast and mid-Atlantic region to raise and invest capital in affordable housing, historic preservation, and mixed-use community revitalization projects. CAHEC also invests capital in innovative enrichment programs that empower residents, promote the development of ownership housing, and foster sustainability within the community.

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Arbor Pointe 7700 Falls of Neuse Road, Suite 200 Raleigh, North Carolina 27615 (919) 420-0063 www.cahec.com


Echo Ridge Community Center

Constant Improvement New developments for the Topeka Housing Authority Focused on providing accessible, affordable housing, the Topeka (Kansas) Housing Authority places a priority on its applicants, tenants and participants, and creates housing competitive in the market with fiscal strength and integrity. Following these goals, the agency has a new development in Echo Ridge. “With Echo Ridge, we really want to change the overall perception of public housing,” says Trey George, Executive Director of the Non-Profit Development Arm for the Topeka Housing Authority (THA). “Low income individuals do not need to live in squalor, and so our target is to build beautiful communities going forward. If we just have better built, better looking communities, our residents are going to feel more pride about where they live and hopefully take better care of things.” FUNDING BENEFITS The new development brings the Topeka Housing Authority’s current portfolio to nine complexes

with a total of 744 public housing units. Funding through the American Recovery and Reinvestment Act (ARRA) allowed the agency to elevate Echo Ridge to a new level and incorporate abundant amenities and green features. “A project like Echo Ridge for a housing authority would be nearly impossible to fund without that grant,” George says. “There were 16 housing authorities across the United States that were awarded ARRA funds, and we were one of them. Having $10 million dropped in your lap and given specific deadlines for when you have to spend the money really fueled the ability to add all these nice green amenities.” Some of the community’s features include a community center, a teaching kitchen with attached garden and a play area for children. George says that the ARRA funds allowed the organization to create the truly unique environment at the site.

Topeka Housing Authority Executive Director Trey George Location Topeka, Kansas

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Echo Ridge

“Without that funding, it wouldn’t be impossible, but “All of the appliances are highly efficient, and there most housing authorities would not be able to se- is photovoltaic lighting throughout. The overall imcure funding in the amount to really design such a pact will come down to making the units as efficient facility,” he says. as possible and help reduce the cost of living in them.” The additional funding and flexibility allowed the Topeka Housing Authority to incorporate a number PINE RIDGE of green features into the 66 affordable units at The Topeka Housing Authority is also planning the Echo Ridge. The green measures began with the redevelopment of 211 units at Pine Ridge into 100 concrete work at the site. larger units and then replacing the other 111 units at multiple different sites around Topeka in 20-30 “Fifty percent of the concrete onsite is permeable unit complexes. Every housing authority is allowed concrete, which helps with water retention or the a total number of housing units that will receive storm water runoff,” George says. “That was one subsidies, and one of the greatest challenges at of the big pieces. You don’t want to disturb the Pine Ridge will be logistics and moving tenants in amount of ground water that runs off a particular and out. site.” “We are going to be facing some timing issues,” Energy Star-preferred appliances, efficient light- George says. “We will develop new housing that will ing and alternative energy sources also fit into the ultimately have people move out of Pine Ridge, and Echo Ridge design. at the same time taking the old units offline and getting those rebuilt as quickly as possible so that “There are planted roofs on four of the duplexes, we can get the residents moved back in so we can as well as on the community center,” George says. keep the subsidy going. The timing and logistics of

Echo Ridge

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moving people, and people being willing and able to move, is kind of a challenge, but it is something we are confident of overcoming.” While the funding for Pine Ridge creates more limitations than at Echo Ridge, the development will include a number of green elements like a gardening center with rain barrels and energy-efficient appliances. “We would love to include everything that we did at Echo Ridge, and obviously that will depend on how the funding all works out, but we are definitely going to incorporate as much as we possibly can,” George says. “The more efficient we can make the units, the more the maintenance cost on our side goes down and the utility expense for our residents drops drastically.”

the current environment,” George says. “We are always looking for ways to do more with less money. Different regulations come down that restrict the types of things we can do, but we hope just to continue down the path we are going and to get better everyday.” Mesner Development Co. & Tim C. Schaller – Architect Mesner Development Co. has developed quality affordable housing in the Midwest for over 20 years. With special emphasis on building energy efficient housing, we can tailor your project to meet any specifications. We also have experience in motel, subdivision, and other commercial developments. For more information on our development services, and to see previous projects, please visit mesnerdevelopment.com. Tim C. Schaller – Architect has been designing Energy Efficient Housing Projects for the last 10 years in Kansas and Nebraska. To date we have designed over $50 million and almost 500 living units. For more information on our Architectural Services, please contact tim@kansas.com.

Pine Ridge will also have an outstanding community center and a partnership with the United Way charity in conjunction with the USD 501 School District. “The community center is one of our most active ones,” George says. “Parents as Teachers are huge supporters of the community center. We started a community garden, and United Way has committed to a two-year partnership with USD 501 School District and us.” They have converted a duplex into a preschool classroom for United Way courses for young children, George says. “What that intends to really focus on is the one- to three-year-olds, and providing them some education and development so they have the ability to be more successful when they do get to kindergarten,” he says. As the Topeka Housing Authority moves to the future and progresses with its projects, the organization hopes to continue on its successful path and make the appropriate adaptations. “We’ve been successful to date, and we’re very, very proud of that. We’re constantly learning and changing in FALL 2012 | DDC JOURNAL

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Conway Pines Groundbreaking

Connecting Communities Creating affordable housing to benefit residents, employers and businesses With a mandate to support, promote and create affordable housing opportunities, the New Hampshire Housing Finance Authority is furthering its mission with two new pioneering developments, Conway Pines and Mennino Place. Since its inception, the organization has helped more than 38,500 families acquire their own homes and has helped finance the creation of more than 14,000 multifamily housing units.

New Hampshire Housing Finance Authority Executive Director Dean Christon Location Concord, New Hampshire

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“We have always been an organization that tries to be creative and find new ways of creating affordable housing opportunities,” says Dean Christon, Executive Director of the New Hampshire Housing Finance Authority. “We are willing to look at different ways of doing business, and try to listen carefully to our partners to identify opportunities that might exist to do things differently or better with them in the community.”

to survey residents and develop projects that are in need in the communities of New Hampshire. MENNINO PLACE Mennino Place, completed at the end of last year, offers 45 one- and two-bedroom rental units in a multilevel building along Storrs Street in Concord. All together, 24 one-bedroom apartments and 21 two-bedroom units were created from the $9 million project. The affordable, energy-efficient units come with heat included, a dishwasher, onsite laundry and convenient off-street night and weekend parking. Mennino Place is a development targeted toward artists in the downtown area, and the building was designed to reflect the innovative and expressive region surrounding it. According to Christon, the design was largely centered on the concept of attracting artists who want to live downtown.

Although the state legislature created the New “The developer wanted to place a focus on people Hampshire Housing Finance Authority, it is not a who are involved in the arts in some way,” Christon state agency and receives no state or local funding. says. “We thought that made a lot of sense. They’ve With an overall goal in mind, the organization looks found that there are a lot of people who want to live


in downtown Concord who are connected in some way to the arts community.” Preference for the units was given to 21 artists in an effort to interest them in the trendy area. The agency focused on the high demand for this market and reflected the need by building Mennino Place within the arts district.

The two current developments taken on by the housing finance authority are part of a larger goal it is trying to achieve, which is to promote, finance and support affordable housing opportunities for low- to moderate-income persons and families. The organization monitors trends and conditions in the market and adapts developments tailored to those changes. With the economic downtown, the agency focused its research on cost containment for developments by always looking for the best investment.

“The City of Concord is doing a lot of downtown renovation and redevelopment work, and this is right in the middle of that zone. They wanted housing that would complement some of the redevelopment work that is going on there,” Christon says. “We have high construction standards not only to make the most out of the money that we invest, but Besides the building’s appeal to local artists, the also to ensure that the projects are sustainable,” location itself grants residents easy access to re- Christon says. “We don’t want to be surprised a tailers, entertainment venues, restaurants and em- few years down the road with a development that ployers. already has a huge investment of public resources in it.” CONWAY PINES Another project underway for the New Hampshire Nelson & Small, Inc. Nelson & Small, Inc. is a second generation, family owned business Housing Finance Authority, Conway Pines, also headquartered in Portland, Maine. We are a major distributor throughout New England and upstate New York of Major Appliances, takes advantage of a prime location. The reason Commercial Laundry Equipment, high efficiency Heating and Hot behind this development is to allow for easier com- Water Heating products, and Alternative Energy products. Nelson & Small takes pride in its superior Customer Service and Sales mutes for workers in the City of Conway, and its Representatives, who are knowledgeable on the products. Visit our showrooms in Portland, Maine and Manchester, New Hampshire or on 32 apartments will offer affordable housing options the web at www.nelsonsmall.com. for those who work there. With the development, the housing authority hopes to contribute to the economic and social development within that community.

Nelson & Small, Inc.

Scheduled to be complete in October 2012, Conway Pines was developed to bring relief from high housing prices that were brought on by the location’s high levels of tourism and retail businesses. “Conway is a market that is heavily driven by tourism, second homes and a strong retail sector,” Christon says. “The immediate areas around Conway have become more expensive, and it has been challenging for the workers who support that service sector to actually live in the community.” Conway Pines will allow people to work in Conway while they live in high quality, inexpensive rental units in the area, which will limit and decrease transportation costs for those residents. “This means that workers no longer have to drive from adjacent or even far-away communities, the only places where there is currently affordable housing,” says Christon. “It’s going to make it possible for people to live and work in the same location, which benefits both the employees and businesses.”

Supplying Appliances to Builders, Contractors, Kitchen Specialists, Property Managers & Housing Authorities Electrolux, Frigidaire, JennAir, KitchenAid, Maytag, Whirlpool, Amana, Broan * Packages to fit every need & budget * Single units to entire projects * Job site delivery available * Immediate access to inventory Visit our Showrooms in Portland, ME & Manchester, NH

1-800-341-0780

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Point on Fall Creek

Embellishing Credentials The Whitsett Group’s focus on urban development leads to growth

With a key focus on building and managing affordable housing in urban areas, The Whitsett Group, LLC develops structures that are designed to work and fit well within a downtown area. Despite a market that continues to be uncertain, the company is building an impressive resume and reputation in its industry.

The Whitsett Group, LLC Principal Tony Knoble Location Indianapolis, Indiana

“Real estate has been tricky over the last couple years,” says Tony Knoble, Principal of The Whitsett Group. “We are very good at putting together deals with a variety of funding sources, which gives us a competitive advantage on more complex developments.” The Whitsett Group concentrates a large part of its business in downtown areas in Indiana. Densely populated areas give the firm a great market to work in and allow for it to construct properties that will eventually help to revitalize cities. “We really like the urban and central business districts with a dense population,” Knoble says. “A lot

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of cities are encouraging and supporting downtown developments through revitalization efforts.” PROJECTS IN ACTION With over 25 years of collective experience in the industry, The Whitsett Group has found a niche in the affordable housing market, with an even greater focus on housing for seniors. Chapelgate Senior Apartments in West Lafayette, Indiana is a current example of its ability to provide top-quality affordable homes for seniors. The project will be home to 35 two-bedroom units on a spacious community lot. Amenities will include a large communal room and a business area with Internet access, and it will feature wide hallways for easy flow and other onsite features that support senior living. On the outside, there will be a communal gazebo, and the property will be located next to public transportation.


The Whitsett Group certainly makes pains not to focus on any one sector of affordable housing though. A project titled 1010 Central Apartments, located in Indianapolis, is a redevelopment of an old, historic building that will help bring mixed-income units to the community.

building equipment and recycled materials. This not only leads the movement to build green, but also keeps the local economy strong, which is important to The Whitsett Group. When there is a strong economy, there is strong development and a steady real estate market.

“This complex is built in an established neighborhood and this project gave us great use of an historic building, so everyone will be happy,” Knoble says. “We wanted to deliver a good project that would work within the neighborhood.”

Strength in the market has become a large stimulant for the company’s growth. As the economy continues to stabilize, so do real estate management companies, but that doesn’t mean The Whitsett Group hasn’t been able to navigate challenges in the past. The downturn in the economy led it to get creative by exploring many different avenues to get financial support for its projects.

Originally built in 1895, the rehabbed warehouse building will offer 86, one- and two-bedroom units at affordable rates. Features will include wide hallways, communal rooms with Internet and washer “The challenge came because the appetite for lendand dryer hook-ups in each unit. In addition, the ing went away. It was almost impossible to get longcommunity will have a washer and dryer room. term fixed rate debt, especially for the low-income housing world,” Knoble says. “But the lending The Whitsett Group also focused a lot of energy on market is finally stabilizing and we are very optithe green space surrounding the site. Local hik- mistic about the foreseeable future.” ing trails and the library are within walking distance from the site, and its location gives residents the freedom to explore downtown Indianapolis’s attrac- City real estate advisors, inc. Formed in 2001, CREA provides equity in affordable, multi-family tions, restaurants and local business. PAST AND PRESENT Formed in 2007, The Whitsett Group has continued to develop, own and maintain affordable housing communities throughout Indiana. The company has been involved in some of the most elaborate real estate projects in the Midwest, and it has situated itself on the cutting edge of the industry in the region.

housing developments throughout the United States under Section 42 of the Internal Revenue Code. The goal at CREA is to provide developer clients with the best possible service, capital and resources, while simultaneously creating high quality, high yielding investments for our investor clients.

Handling over six real estate deals a year, The Whitsett Group is ready to increase that number as it looks to develop future properties throughout the surrounding area. This expansion will add more units to the company’s portfolio. “We have had five great years of growth, and after those years we are trying to continue that growth as we look toward developing in Ohio, Michigan and Illinois,” Knoble says. On the verge of expansion, The Whitsett Group is also looking toward embellishing its green credentials. According to Knoble, the firm is always looking for ways to make small choices for conservation that make a big impact in the end. Its focus increasingly is to make each property as sustainable as possible. The company not only tries to incorporate efficient appliances and utility systems, but also uses local

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Trail Blazer Meeting a need for affordable senior housing The Pioneer Housing Foundation of Strathcona County, Alberta is a nonprofit organization that responds to community needs and provides management services to publicly and privately funded housing created for seniors.

Pioneer Housing Foundation Executive Director Ken Fearnley Location Strathcona County, Alberta

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“The 60-unit apartment is an apartment building that was added to a 100-unit senior citizens lodge,” Fearnley says. “The lodge is a hotel-like facility for seniors where they have a sitting room, and they congregate in the dining room and have meals provided. We attached an independent apartment “One of our main strengths is the quality of life that building because we knew there was a need for we create for the residents within our facilities,” that. The 60 units filled up within a month of says Ken Fearnley, Pioneer Housing Foundation opening, and we now have 69 people on the wait Executive Director. “At the same time, we are a list.” nonprofit, publicly funded organization, so we are very proud of the way that we deliver a top quality Every two years in February, the organization of life with the funding constraints that come with conducts a resident satisfaction survey to being a publicly funded organization.” collect feedback and assess the effectiveness of its facilities. This past February was the first Constantly looking to improve its facilities opportunity for residents to offer feedback on the for seniors, the Pioneer Housing Foundation Silver Birch Place apartments since the expansion completed a 60-unit expansion at the Silver Birch opened in the spring of 2011. Place development. The existing lodge offered senior living space, but the growing demand for “The residents rated the quality of life, and we got senior living in the area prompted the project. somewhere in the 80 percent range,” Fearnley says. “They were happy with everything about the


building. People were generally happy with the layout of the rooms, the fact it is affordable housing so they can afford to live there and how nice the suite was compared to how much they had to pay for it.”

Locating funding for the project is the greatest challenge the organization faces.

Having recognized a need for additional affordable housing for age groups other than seniors, Pioneer Housing also began construction on Silver Birch Court in December 2011. The four-story, 69-unit building will take 16 months to complete and will open in April 2013.

“Given that we’re a municipally-funded nonprofit, we have to go to the various levels of government for funding support,” Fearnley says. “That’s our biggest challenge, getting some capital dollars from the three levels of government to allow that project to go ahead.”

“It will be the first time our organization has built a building for non-seniors,” Fearnley says. “This is a community housing project, meaning that people who require affordable housing of all age groups will be eligible to live in this building when it is completed. It is an extension of our mandate and our first foray into a new field. We have some apprehension about it, but I’m sure that the successes that we have had in other areas will lead to our success in our new venture.”

Looking ahead, the Pioneer Housing Foundation has begun looking for an additional site to build in anticipation of even further demand for affordable senior housing.

Venturing into this new demographic, the Pioneer Housing Foundation has researched and estimated the total number of units needed, as well as the size of units.

and the larger building will be more efficient and economical to operate.”

“We know that in the next five to eight years, we are going to have huge waiting lists and not be able to meet the needs,” Fearnley says. “We’re beginning to plan now for the future. With the demographics and aging Baby Boomers, we’re going to need a lot more spaces in a very short time.” ENC Testing Inc. ENC Testing Inc. is an Alberta based geotechnical testing firm with a passion for success and a team of focused professionals who take pride in what they do and how they do it - in all aspects of their responsibilities. The company was formed in the Spring of 1999 offering general geotechnical engineering and materials testing services.

“Our biggest challenge is trying to be sure that we are building the right sized units for the marketplace,” Fearnley says. “This is actually the first community housing project in Strathcona County, so we don’t have a lot to compare it to. We’ve talked with other providers and other municipalities around us. We had to do some guesswork around some components, but I’m hopeful we made the right guesswork on the number of units that we need. That’s one of the things we’re concerned about as we go into this.” CLOVER BAR ADDITION Still in the design stage, the Pioneer Housing Foundation will make a sizeable addition to the existing Clover Bar Lodge. The development was the first building in the organization’s portfolio, dating back to 1960. The project will retain a portion of the building from a past renovation, but a majority of the building will be reconstructed. “We’re looking at a total replacement of two-thirds of the building,” Fearnley says. “There was a new wing put on in 1995 that will be saved, but basically we’ll tear the oldest part of the building down and rebuild, increasing the size of the building from the current 79 units to 120 units. All of the units will be larger to meet the needs of the seniors today, FALL 2012 | DDC JOURNAL

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Transformative Developer Affordable Senior Housing for Southern California

Chinatown Metro Apartments

Meta Housing Corporation Senior Project Manager Tim Soule Location Los Angeles, California

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Since 1996, Meta Housing Corporation has grown “We strive to let our work speak for itself, and fortuinto one of the most trusted and qualified developers nately we have been rewarded for that work,” says of affordable and market-rate apartment communi- Soule. “We strive to build the best projects possible ties for families and seniors in southern California. and we have been recognized for the work that we do not only in our senior portfolio, but also in our “Meta looks at affordable housing and each one of family portfolio.” our projects as an opportunity to present our commitment to quality design and well-built projects,” With an extensive senior living portfolio, Meta says Tim Soule, Senior Project Manager for Meta Housing Corporation places a strong emphasis on Housing Corporation. “Each one of our projects is active aging, says Soule. meant to be a calling card not only for our prospective tenants, but also to communities looking “What really sets Meta apart from others is our emfor the sound development of affordable housing.” phasis on robust senior services that promote active aging,” he says. “We partner with a services Meta Housing Corporation has built more than outfit called EngAge in order to perfect the art of 4,400 residential units over the years. The com- active aging. We have robust arts, fitness and wellpany works with cities, housing agencies, nonprofit ness programs as core parts of our entire senior organizations, investors and other developers to housing portfolio.” create communities with innovative designs and life-enhancing features. The company has re- THE METRO AT CHINATOWN ceived a number of awards throughout the years, Adding to that portfolio, Meta Housing Corporation which confirm its dedication to quality work. is developing The Metro at Chinatown in Los An-


Chinatown Metro Apartments

geles. The $43 million adaptive reuse project will feature 123 affordable loft units.

seniors who are still working; it is a low-impact way of getting to and from their jobs.”

“We are just thrilled to present this groundbreaking project to the City of Los Angeles,” Soule says. “It has been many years in the making, and it takes a previously blighted part of Chinatown and puts a new luster on it. The building has been sitting vacant for about a decade.”

The Metro at Chinatown is also near a variety of community amenities, so seniors will have the opportunity to travel and get what they need by foot.

Located close to the County of Los Angeles’s Metro Gold Line Chinatown stop, the community will offer an easy transportation opportunity for seniors.

“There are lots of amenities that are within walking distance from The Metro at Chinatown, including full-service grocery, banks, a community center and a library,” Soule says. “It is really a rich location for a project of this nature.”

Meta Housing Corporation broke ground on the “That opens up travel opportunities throughout project in December 2011 and is scheduled to L.A. County for seniors,” Soule says. “As part of complete The Metro by the end of 2012, but Soule the project, we are going to be supplying one dis- says that as an adaptive reuse project, it has cercounted Metro pass to each household of the com- tainly presented some challenges. munity. Should they take advantage of that, they will be able to travel freely form Pasadena to Long “A reuse of a building that was built in the 1920s is Beach and beyond on the Metro. It opens up a lot certainly a challenge,” he says. “You go into a projof great recreational opportunities, and for those ect with a certain vision and understanding of what

CHINATOWN METRO APARTMENTS

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There are lots of amenities that are within walking distance from The Metro at Chinatown, including full-service grocery, banks, a community center and a library. It is really a rich location for a project of this nature. -Tim Soule

the building presents, and once you are actually under construction, issues pop up. We are dealing with those issues and improving the design of the building as we go along.” Some of the community features include an art studio, exercise room, deck and community space. The Metro also features a number of green initiatives.

for our tenants, but it also provides operational efficiencies. Less energy consumption is not only good for us from an operating standpoint, but it is also good for the community. It is one of those win-win opportunities.” As Meta Housing Corporation looks beyond The Metro at Chinatown project, the developer looks to expand and grow throughout California.

“We are implementing an Enterprise Green Community Standard for the project and are currently on a “We want to continue to grow both in our affordable LEED Silver path,” Soule says. “Implementation of senior and affordable family portfolios in southern sustainable design and sustainable building prac- California and throughout California as a whole,” tices for Meta is a key component of our develop- says Soule. “We also are looking to expand the ment plan. Not only does it provide healthier units footprint of our mixed affordability projects.”

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Putting communities on the fast track with transit-focused affordable housing. We’re proud to work with Meta Housing Corporation, delivering financial solutions and advisory expertise that produces transit-focused housing. Along with affordable living, Chinatown Metro Apartments offers seniors proximity to public transportation and transit pass discounts as part of its innovative project financing. That’s a ticket for smart growth in Los Angeles.

bankofamerica.com/CommercialRE

“Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Equal Housing Lender . Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., both of which are registered FALL 2012 | DDC JOURNAL 157 broker-dealers and members of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured  May Lose Value  Are Not Bank Guaranteed. ©2012 Bank of America Corporation


Snelgrove Place

Collaborative Problem Solvers Affordable housing with a sense of community Serving a high-growth market, the Region of Peel provides affordable housing in the Greater Toronto Area. “It goes beyond the region’s structure and the regional government. We have a community that is very strong in terms of its support for affordable housing,” says Drew Goursky, Manager of Program Design and Development for the Region of Peel. “We have a lot of agencies and community groups that are always very present when we need help and advice on housing.”

Region of Peel Manager of Program Design and Development Drew Goursky Director of Service System Management Joan Kaczmarski Location Region of Peel, Ontario

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for affordable housing,” Goursky says. “We have a community group infrastructure that supports residents and tenants in their own homes. It’s really a holistic approach that extends beyond just the bricks and mortar; it’s about helping the people at the end, and I think that is what makes our community stronger.” UNIQUELY THEIRS Region of Peel has several projects underway. Working in collaboration with the Royal Canadian Legion Branch 609, it’s building a 200-unit, 25-story housing development in Brampton. The development will feature one- , two- and three-bedroom units for families and seniors, as well as 4,000 square feet of community space.

The organization added $17.1 million to its annual budget last year and uses a variety of strategies to address housing and community needs, including homelessness prevention, affordable homeownership, affordable rental housing and “One of the things that we’ve learned in our history of developing housing is that there needs to be a subsidy availability. As Region of Peel continues sense of place for people,” Goursky says. “When to make improvements, its team understands the kids or residents aren’t engaged and there isn’t importance of community cooperation. programming available for them, people sometimes become bored. You start running into a broader “When we went through a prioritization process a social malaise, and that stigma that seems to come few years ago, the Peel community told us that one with social and affordable housing. We’re really issue that is really important to them is the need


trying to work past that. I think what we want to do is provide people with a home and a sense of stability, as well as a place for them to form a community that is uniquely theirs.” The Brampton development has a great location with both pedestrian and transit access. Started in spring 2011, it will wrap up in 2013 and has progressed smoothly so far. “Every project hits a snag from time to time, but it has gone well,” Goursky says. “The interesting part of the project has obviously been the collaboration with the Canadian Legion site. There is always a lot of give and take on both sides in respect to ongoing traffic and things like that, but we have worked cooperatively and collaboratively with the Legion. The project itself is going up incredibly fast.” Region of Peel has another Brampton project in the works with Snelgrove Place. The apartment building will consist of one- and two-bedroom senior apartments. A smaller project, Snelgrove did not require underground parking, which helped in creating some cost savings. The Region is working in partnership with the Coptic Patriarchate Church of Archangel Michael and St. Tekla, and will share some of the facilities. “There are market-rate units available for members of the community,” Goursky says. “We bought the land from the Coptic Church at a reduced rate and have continued to work together to complete the project. One benefit of this partnership is that Coptic members will make available some of the common space at their church. They are very inviting for programs that will benefit not only their church members but their neighbors at Snelgrove Place.”

Snelgrove is in a part of Brampton that borders farm land, but it is becoming more of a metropolis over time and it will eventually fill in. It keeps in nice character with some of the rural and agricultural landscape in that area. -Drew Goursky

The project’s design will also blend into the rural surroundings. “It has a little bit of that country feel to it,” Goursky says. “Snelgrove is in a part of Brampton that borders farm land, but it is becoming more of a metropolis over time and it will eventually fill in. It keeps in nice character with some of the rural and agricultural landscape in that area.” Region of Peel is also working on the Creditview/ Eglinton buildings in Mississauga, which will provide 250 units for families and seniors. The buildings have access to transit and a variety of community amenities, and are linked by a 6,000 square-foot community amenity space. Snelgrove Place FALL 2012 | DDC JOURNAL

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“The seniors and families will provide a nice mix,” says Joan Kaczmarski, Director of Service System Management for Region of Peel. “In that area, one of our non-profit housing providers has been supporting initiatives and organizing some local fundraising efforts for the Creditview/Eglinton build. Again, it goes back to those community partnerships that are so important.” As the Region of Peel moves forward with its current projects, it remains focused on its community partnership plan and realizes a full community effort is needed to make improvements. “We can’t solve affordable housing issues alone, and partnerships with the community, both in the non-profit and private sectors, are absolutely critical in addressing our affordable housing shortage in Peel,” Kaczmarski says. JH Rust Architects J.H. Rust Architect Inc. is a full service architectural company, which was founded Twenty-five years ago specializing in designing a wide range of residential, commercial, institutional and industrial projects. (30) We strive to bring our client’s objectives to reality through sensitive, creative design and attention to detail by creating well-functioning, human scale spaces, carefully conceived and diligently executed. (29)

P M Architecture PC P M Architecture PC, was established in 1995 by Parag Mehta, RA, AIA. Since then we have successfully completed over 400 million dollars worth of projects ranging from multi-unit residential to corporate offices, retail and restaurant. We provide functional architecture that enriches the users experience within an environmentally sustainable framework. Our ongoing projects continue to improve and revitalize neighborhoods while remaining financially attainable.

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Change For The Better Housing for San Antonio residents in need

Sutton Oaks

Committed to building and maintaining affordable housing for local citizens, the San Antonio Housing Authority (SAHA) partners with individuals and organizations to provide housing, education and employment opportunities.

income families and individuals. As one of SAHA’s recent projects, the agency redeveloped the former Sutton Homes property into Sutton Oaks Phase I and plans are well underway for Phase II.

“This development was previously a 60 year old “The housing authority does an excellent job public housing community that was in very poor with engaging different community stakeholders, shape and very dilapidated,” Castro Ramírez says. shaping housing programs, creating a community “Through working with the public housing residents, development plan and redeveloping public with the city and a number of other partners, it was housing,” says Lourdes Castro Ramírez, President agreed that it was time to redevelop Sutton Homes.” and CEO of SAHA. “The community engagement effort is critically important.” The housing authority demolished the original Sutton Homes in 2009 and acquired financing from SAHA owns and manages more than 13,000 units federal, state and local levels to redevelop the site. in 115 communities and offers both subsidized and Located near a military base, Sutton Oaks provides non-subsidized housing for low- and moderate- housing in a growing area. The community had its

San Antonio Housing Authority President & CEO Lourdes Castro Ramírez Location San Antonio, Texas

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Hemisview Village

grand opening in April 2011 and has received an excellent reception.

“It’s really exciting,” Castro Ramírez says of the grant. “We sent an application to HUD for $30 million to carry out a transformation, not just of “We leased up very quickly,” Castro Ramírez says. the Wheatley Courts public housing site, but for a “We are now over 98 percent leased, pretty much transformation of the public housing community on an ongoing basis. It’s a beautiful property. and the surrounding neighborhood.” There’s a lot of pride with residents that live there, but also with those who live in the surrounding Castro Ramírez says that an overall neighborhood neighborhood. I think the neighborhood has seen improvement aspect was missing from past that affordable housing in San Antonio is changing redevelopment projects. This grant not only will for the better.” allow the agency to improve affordable housing in the area, but also enhance the surrounding area COMMUNITY TRANSFORMATIONS and incorporate the efforts of other local entities. Focused on creating an overall neighborhood and community transformation, the housing authority “The importance of this is that, in the past, the recently received a Choice Neighborhood Planning agency carried out redevelopment of public housing. Grant from the Department of Housing and While we pride ourselves in the quality and the end Urban Development (HUD) and has submitted product, one of the missing components was the an application for a Choice Neighborhood neighborhood approach,” she says. “Having the Implementation Grant. Choice planning grant allowed us to engage in a Mirabella

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more comprehensive community planning effort, engage the local school district, engage the local community college district, engage some of the economic development organizations in the area and really get together to come up with a plan and a united and coordinated effort to transform the entire neighborhood.” “While our focus will be to redevelop another very old public housing community, we are also looking around the neighborhood several blocks out,” Castro Ramírez says. “We’re looking at really ensuring that this is a community that encourages people to walk and encourages businesses to come into the area. It’s really a comprehensive plan that is focused on transforming people, transforming housing and transforming neighborhoods.” The work done with the Choice Neighborhood Grant will continue the current path of success for SAHA. Over the years, the agency has received a number of awards, and Castro Ramírez says the recognition motivates the agency to continue to do quality work. “We work really hard at the agency,” she says. “We’re very passionate people and really have a

vision that the agency adds tremendous value to the San Antonio community. When our work is recognized at the local level, at the state level and at the federal level, it just reinforces that we’re on track with what we’re doing. It encourages us to be even more innovative and creative.” Moving forward, the San Antonio Housing Authority plans to reshape its goals and mission to better serve the community. This continual drive for improvement will lead the organization for many years to come. “As we look to the future, we are engaged in a long-range strategic planning process that we call ‘Plan.Build.Live.’,” Castro Ramírez says. “The goal is really to create a new vision and a new mission statement, with a set of very strategic goals that will guide the agency from here to 2020. Our focus has been that we want to ensure that we create high quality communities where people thrive.” McCormack Baron Salazar, Inc. For McCormack Baron Salazar, Inc., “Developing and Building Communities” is more than a slogan—it’s the focal point for all they do. As one of the nation’s leading for-profit developers of economicallyintegrated urban neighborhoods. McCormack Baron Salazar is a pioneer in community development and urban revitalization, with 149 communities in 35 cities and more than 16,300 units of attractive, high-quality housing.

Vision Concept: Mittman Street

Artist Rendition of Mittman Street Vision San Antonio, TX

The new accessible seniors apartment building at right, new neighborhood park and housing at center, 2012 | will DDC JOURNAL and existing neighborhood store FALL at left together 163 host a broad range of housing choices, amenities and


Conducive For Communities

Hopewell Manor

Creating affordable housing in the mid-atlantic region

Clayton Court

Based in Hockessin, the Delaware Valley Development Company (DVDC) is a full-service real estate development, building and investment firm. It focuses on affordable housing and land development, working to create and manage quality communities throughout Delaware, Pennsylvania and Maryland.

Delaware Valley Development Company Partner Glenn Worgan Location Hockessin, Delaware

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so we reduced density in that development. The buildings were laid out in such a way that it just created some pockets of dead space and indefensible space. We demolished sections of buildings and reduced the density, which in turn reduced the concentration of poverty in the development.” The project also included a number of additional upgrades and had to overcome several logistical challenges.

“We really have a commitment to excellence across the board,” says Glenn Worgan, DVDC Partner. “We have our principals involved in every aspect of “We improved the lighting so that it was much safer our business, and that enables us to maintain a and a much more manageable environment,” Worhigh level of quality in everything that we do.” gan says. “We also had an extensive relocation effort at that site. We had 100 percent occupied CHELTENHAM VILLAGE units, and we had to relocate every household to The company has developed over 75 single and offsite locations, as well as onsite. It was a bit of a multifamily communities totaling over 5,000 units, chess game to manage that whole process with the and it currently owns and manages more than contractor and the rehabilitation.” 1,300 units in 18 apartment developments. As one of its most recent projects, DVDC rehabilitated the HIGHLAND PARK & HOPEWELL MANOR former Lexington Green development into Chelten- DVDC also recently completed Highland Park, a ham Village in Delaware, reducing the number of new construction project with 81 units in Dillsburg, units at the Section 8 development from 125 to Pennsylvania. The site had some design challeng100 and creating a more efficient use of space. es, such as grading, water pressure and a sewage pump station, but the company overcame these “We definitely had some challenges there,” Worgan hurdles and created an attractive family developsays. “When we started, that was a larger project, ment located next to a local elementary school.


“It’s a family development,” Worgan says. “The site neighborhood. The projects also contribute to a itself has a built-in amenity with the school there. greater community revitalization plan. We were able to facilitate and include connections with the school and our development. We have “These two projects are part of a larger community walking trails and we have a paved path from our revitalization plan that was drafted by the commudevelopment to the school and across the property.” nity development corporation in the area,” Worgan says. “We have been working closely with the local According to Worgan, the units themselves were agencies and the city to do not only our project, designed for optimal use by families with children. but also the whole neighborhood revitalization plan, Hopewell Manor, which was completed in spring which includes homeownership and economic de2011, is a 71-unit property geared for seniors. The velopment. It’s part of a holistic plan.” project is notable for its creative, adaptive reuse of the old Fire Station it replaced into the thriving Overall, DVDC remains focused on completing its community center it now serves as. existing projects, but in the future the company would like to expand into other geographical areas. “The design is conducive to family living,” he says. “We’re active in Pennsylvania, Maryland and Del“We have a good number of two-bedroom units and aware, and we would like to continue working in three-bedroom units. We hope that will help the those areas and maintaining our business level marketing of that development.” and actually diversifying to include some different programs,” Worgan says. “Right now, we do almost The two new developments have received a very exclusively nine percent tax credit projects. I can positive reception thus far, Worgan says. even see us expanding our reach to Virginia and New Jersey, as well as other locations.” “We had a grand opening ceremony at Cheltenham EG Stoltzfus Construction Village where we had the governor of Delaware EG Stoltzfus Construction would like to congratulate Delaware Valley Development Company for its continued success. Relationships are speak and the county executives, other politicians key to most success in business and we find that is especially true as and the director of the Delaware State Housing Au- it relates to Developers and Contractors. We believe an integrated approach to project delivery provides a positive outcome while thority,” he says. “It was a well-attended event and controlling costs and Program delivering aAd.pdf maintenance1friendly product long 4/26/12 1:32 after construction is completed. those events are always positive. Highland Park was a little less political, but I have to say that there has been absolutely no opposition or negative undercurrent from the very beginning there. We have gotten a lot of positive feedback from the township and county, and it has been well received by the neighbors, as well.”

PM

Currently, DVDC has approximately 10 projects in various stages of development, totaling more than 600 units. Two of those projects include West Center Village and Monroe Terrace in Wilmington, Delaware. DVDC is currently in the process of rehabbing these scattered sites, project-based Section 8 housing developments. When complete, West Center Village will offer 55 units and Monroe Terrace will have 35. “West Center Village is 60-75 percent complete now,” Worgan says. “It’s a Section 8 development in one of the rougher neighborhoods in the City of Wilmington. We’re undertaking that project in conjunction with another scattered site, Section 8 development in the same neighborhood called Monroe Terrace. They are both happening at the same time.”

www.egstoltzfus.com

DVDC has completed other projects in the area and controls a large percentage of the revenues in the

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©Brigitte Manekin

©Billy Michels

Change Champion A national model for community revitalization

Seawall Development Co-Founder Thibault Manekin Location Baltimore, Maryland

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Based in Baltimore, Maryland, Seawall Development Corporation invests in abandoned historic properties in order to play a role in positive community revitalization.

Corporation. “Our goal is that everyone who has participated can drive by any of the buildings, and it will be a project that they want to bring their kids through and show off.”

“Our greatest strength is knowing what we don’t know and making sure that everybody that participates in any of our projects, from plumbers to the landscapers to the architects to the investors, all feel an equal share in the project and all have the same great pride during construction, financing and the completed project,” says Thibault Manekin, Co-Founder of Seawall Development

Seawall’s model is creating Center’s for Educational Excellences out of forgotten old building that provide affordable Class A apartments for teachers and collaborative office space for educationfocused nonprofits. Manekin stresses the importance of the team Seawall has assembled, and says much of the company’s success is due to the work of Donald Manekin, Evan Morville, Jon Constable,


Matt Pinto, Alex Solomon and Kirsten Shackelford. “Station North has begun to enjoy some great reviWorking primarily in the Baltimore area, the com- talization on its own,” Manekin says. “One of the pany recently received the Champion of Change things that the Design School Building does is creAward at the White House, and Manekin hopes the ate a ton of ‘feet on the street,’ as we call it. You are recognition will allow the firm to replicate its proj- in a forgotten part of the neighborhood back there, ects in other cities. and there is a massive 124,000 square-foot eyesore that is about to become a hub of community “That was an award that should be given to every- activity. It is really going to activate the rest of that body that participated in these projects,” he says. corridor in parallel with some other neat projects “The Champion of Change Award really showed that that are taking place down there. It will help that this type of project is important for different com- neighborhood to successfully continue to improve.” munities and can be done on a national level.” Seawall Development Corporation currently has BALTIMORE DESIGN SCHOOL projects in the design stage in Philadelphia and In an effort to help revitalize Baltimore’s Station New Orleans, and Manekin says the company is North Arts and Entertainment District, Seawall excited to replicate its redevelopment model in Development has begun a $26.5 million project to other parts of the country. convert the former Lebow Brothers Clothing Company building into the Baltimore Design School. “To be able to roll that out and replicate this model Like all redevelopment projects, the old building in those two cities, and hopefully some others, is has presented a number of challenges. exactly what we wanted to be doing with the company,” he says. “We have a commitment to edu“With the old historic buildings, as beautiful as they cation, which we think is by far the single greatest are and as well built as they were, there is always a economic development tool out there. If we can play huge amount of unforeseen conditions,” Manekin some small role with the kids and their education, says. “Until you start peeling back the layers and we think that is going is to have a huge lasting ripple see what is going on, it’s almost impossible to pre- effect for the success of future generations.” dict what you are going to come across. The biggest challenge on that project and most of these historic buildings are these surprises you encounter along the way.” Originally built in 1915, the redeveloped building will serve as a public middle and high school for grades six through twelve. Scheduled for completion in March 2013, the school will feature an impressive media center, studios and workshops, along with classrooms. It will also take advantage of the existing HVAC system, which uses ground water to condition the air, and the abundance of glass will create a space full of natural light. “The greatest part of that project is that about 60 percent of the skin of that building is glass, which is very unusual for buildings built back at the turn of the last century and the 1800s,” Manekin says. “It was a state-of-the-art building at the time, and for decades those windows were completely taken out and boarded up. Once they are put back in, the natural light is going to flow through that entire building. It’s really going to be breathtaking.” Seawall Development has worked with architects to redevelop other vacant properties. Formerly a hindrance to neighborhood improvement, the redevelopment of the former clothing factory will provide a big boost to improving the community as a whole. FALL 2012 | DDC JOURNAL

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Changing Perceptions High-quality housing for farm workers

Cypress Cove LIHTC

Manatee Village

Operating in southern Miami-Dade County and small towns throughout Florida, Rural Neighborhoods is a nonprofit developer of housing for rural and agricultural workers.

The organization presently owns 1,533 residential apartments, 15,000 square feet of commercial space and 30,000 square feet of community facilities, such as child development and community centers. Rural Neighborhoods operates 17 residential communities in six Florida communities from Tampa to Miami, and Kirk says the organization has helped to change the perception of farm worker housing.

“As a nonprofit developer of affordable housing, we have a particular niche providing housing to agricultural laborers,” says Steven Kirk, President of Rural Neighborhoods. “We are particularly proud that we are probably among the top two or three developers of housing for migrant and seasonal “We feel the quality of our product design and the farm workers in the nation. Within a niche market, tough love management that we implement has we are recognized as one of the national experts changed the public image of farm worker housin that field.” ing in the Florida communities in which we have

Rural Neighborhoods President Steven Kirk Location Miami, Florida

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built,” he says. “This was a product that was once “I think that we have made a step forward in deperhaps ‘questionable’, but as elected officials and sign with the projects that we completed in 2011,” planning directors see what our housing really is, Kirk says. “We have really moved beyond what was compared to what they thought it would be, most traditional [U.S. Department of Agriculture] Rural realize they would be very pleased to have this Development safe and decent housing to a design quality product in their communities.” that will really evoke pride from tenants and more pride from the communities that surround them.” DRIVEN BY A MISSION Rural Neighborhoods will also be sure to keep up Rural Neighborhoods has received a number of with the high standards of quality for which its projawards over the years, and Kirk says that the rec- ects have become known. ognition helps those in the organization not only take pride in their work, but importantly, increases “Today, in a number of the small, rural communities the visibility and credibility of the group. we serve around south Florida, our newest products, while they may be targeted to the lowest eco“We truly are an organization driven by our mis- nomic tier, are probably the best multifamily rental sion,” he says. “We have extended our mission to projects in those communities,” Kirk says. “I think serve elderly and other working families in rural we take a certain pride in really building the best.” communities, but our roots are in serving workers As the organization continues to grow, Kirk says engaged in farm work. The national recognition that its team plans to extend its market footprint and the awards that come help staff; whether it be and may develop housing outside of the Florida the person engaged in site management, housing market. counseling or maintenance. They take professional pride that they do their job well and do a great deal “Our hopes and goals are to diversify the markets of good. For a charitable group like ourselves, mea- we serve,” he says. “We are looking to establish surable success opens doors to local elected of- larger footprints in the rural communities we now ficials, investors and partners – and that means the serve, and are looking to establish a larger market opportunity to do more good!” footprint overall.” Rural Neighborhoods is relatively new to the world of green building, but the organization has embraced the movement and plans to incorporate these building practices in all new projects. It will complete its first Energy Star and NAHB Silver and Bronze rental communities in 2012. Green features will include solar water heating, solar site lighting and more. Though the industry itself may be in the early stages of green building nationwide, we feel we are coming to green building a bit late,” Kirk says. “We were certainly not on the cutting edge in the past, but today every project we have in the pipeline will be green certified. There are a number of hurdles to overcome, but it will be beneficial to the people we lease to and serve. We think there will be substantial utility savings in hot climate areas like south Florida.” Kirk also notes Rural Neighborhoods plans on owning its properties for 30 to 50 years and must make appropriate design decisions that last like choosing ceramic tile and metal roofs. This year the charitable group will rehab 80, and construct three new residential communities. These projects look to continue the path of success the organization has paved over the past several years.

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Increasing Focus Omni Housing establishing affordable housing in the Empire State

The Omni Housing Development LLC, based in New York, continues to focus its energy on preservation of affordable housing projects. Over the years, the company has gained valuable insight to the market, which has allowed it to grow its reputation and enhance its business. “Omni Housing Development has a great deal of experience backed by experienced people, and brings confidence and a great range of skills to renovation projects,” said Duncan Barrett, COO of Omni Housing Development. “That allows us to rehabilitate them over the coming decades and ensure that final product is self-sustaining.”

it brings a lot of gratitude when we see the joy the restorations bring to the families,” Barrett says. LIBERTY GARDENS Omni Housing Development saw a great deal of potential in a community in Rome, New York, for a preservation project that would eventually preserve and sustain affordable housing. Its current project in the area, Liberty Gardens, is a three-phase effort that will completely renovate 180 family housing units. The eight buildings on the property were originally constructed under the New York State Housing program in 1952, and they haven’t been renovated since. The team at Omni Housing Development, however, saw great value in the property.

In the majority of its projects, Omni Housing Development looks to take older buildings, renovate them and repurpose them for affordable housing. Through this method, the company takes pride “We saw lots of opportunities with the preservation in saving otherwise condemned buildings, lower- of these buildings, and a chance to pursue affording the cost of an affordable housing project and able housing in this community,” Barrett says. ultimately creating a larger market for that type of housing in the area. Everything about the property is original, except the windows and roofs, and the basics have never “I can speak for myself, my partner and employees been modernized or improved to meet current in that we enjoy developing the affordable hous- standards. Omni Housing Development will ening projects. Even though it’s a complex process, hance exterior, including the replacement of all

Omni Housing Development LLC Chief Operating Officer Duncan Barrett Location Albany, New York

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doors, windows and insulation, but is keeping the original brick. The company has also made commitments to energy conservation over the past several years. At Liberty Gardens, Omni is pursuing LEED certification, which has not been an easy task considering the building’s existing condition. “The extent of the deterioration has made the rehab project time consuming,” Barrett says. “There are always challenges with these types of projects. Hidden challenges emerge constantly, and you have to be prepared to address them while staying within the budget and schedule.”

With the company’s steady connection to New York, Omni Housing Development has formed longstanding relationships with industry professionals, giving it a respected network that can tackle any specific project. And, besides affordable housing, the team at Omni takes pride in providing and establishing properties for senior living. With around 3,000 total units since the company’s inception, Omni Housing Development continues to leverage its wide base of knowledge to help develop, finance, construct and manage affordable housing for families and seniors. According to Barrett, the firm understands the benefits of green building and believes it is a major aspect in the future of affordable housing.

Liberty Gardens is Omni Housing Development’s first LEED-certified project in the company’s port- “We continue to see ourselves increasing the focus folio. Its team members wanted to learn the obliga- on good green practices and doubling down on entions of sustainable building before they were con- ergy consumption,” Barrett says. “By being carefident in the process, and they hope to continue ful and thorough, we can make huge strides in the in green building with more projects in the future. field.” “I believe personally and pursue a notion that sustainability of affordable housing is tied to our ability to reduce and control the energy consumption of these projects, because we are required to work within a specific tenant income range,” Barrett says.

Fred Burrows Trucking and Excavating, LLC Fred Burrows Trucking and Excavating is pleased to have been selected to perform sitework at Liberty Garden Apartments in Rome, NY. As the Mohawk Valley’s leading sitework contractor, we specialize in grading, site clearing, water & sewer utility installations, and driveway/roadway installations. We are proud to be a part of Omni’s vision in providing affordable housing for area residents.

In all, Omni Housing Development is rehabilitating three two-story masonry buildings at Liberty Gardens, while also completely constructing six new buildings. The $13.4 million project is currently in phase one, which will be completed in 2012. When complete, Liberty Gardens as a whole will include attractive landscaping, a playground and a new community center. With such a large project and a strict budget, Omni Housing Development financed the project with a complex mix of funding from the Rome Housing Authority, New York State Homes and Community Renewal M&T Bank, Hudson Housing Capital and the Community Preservation Corp. The project also received funds from multiple private establishments, as well as grants from state organizations. A GREEN FUTURE With a strong foothold in New York State, Omni Housing Development has also worked in other states, including Massachusetts, but it hopes to strictly focus its efforts in the Empire State. “Each state has a different approach on how to allocate tax credits, for affordable housing,” Barrett says. “We are well-versed in New York procedures, so we feel our focus is better directed here.”

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Dedicated To The Residents

Affordable Housing for the local Chinatown Community

MHRSC

Chinatown CDC Director of Housing Development Whitney Jones Location San Francisco, California

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Chinatown Community Development Center (CDC), Today, the Chinatown CDC is perhaps the closest representation of a traditional community developlocated in the heart of San Francisco, California, is ment corporation in the San Francisco Bay Area, a place-based community organization dedicated to preserving, maintaining and promoting the qual- providing advocacy, planning, organizing, housing development, resident services, construction and ity of life in Chinatown and other San Francisco property management services for neighborhoods neighborhoods. Founded in 1977 as a grassroots organization that advocated for affordable housing, across the city. tenant rights, open space, and better transportation, the Chinatown CDC is currently celebrating its “What makes us stand out from many other developers is that we try to implement a more compre35th anniversary. hensive community program,” says Whitney Jones, Back in its early years, many low-income residents Director of Housing Development for the Chinaand seniors living in Chinatown were being evicted town CDC. “Other competitors tend to focus on from their homes, which is why housing and com- property development, rather than the whole community revitalization issues were an important fo- munity. We try to work on housing developments cus from the beginning. “We saw seniors being and services that benefit the community.” evicted from the old International Hotel to make way for offices, and we knew we had to fight,” says Having such a focus on the community presents the Reverend Norman Fong, Chinatown CDC’s both challenges and opportunities for the organizaExecutive Director. “We’ve been fighting displace- tion, particularly for housing development. There ment, and for more affordable housing, ever since.” are few sites for development in the Chinatown


area, and being in a high cost area makes building an expensive proposition. “Our challenge is to provide housing opportunities for low income folks,” Jones says. “Figuring out a way to finance affordable housing is a huge challenge. We are lucky that we have a lot of talented, committed local officials interested in funding affordable housing, but projects are still expensive. And lowering costs while providing quality is even harder than financing. Given our Chinatown challenges, one of our focuses is on partnering, which lets us develop housing with other nonprofits and for profits who are working to improve other communities.”

less veterans. “The Veterans Commons project is a creative use of the building while saving it,” Jones says. “It is also an awesome partnership with Swords to Plowshares, a veterans aid organization, and with all of the political establishment of the City of San Francisco, from local officials to Congresswoman Pelosi.” While the Chinatown area will see several major new developments over the next decade, such as the new Central Subway, its housing stock is aging. The Chinatown CDC recognizes the need to be on the forefront of shaping the future of the community, expanding its planning capacity and developing a new Chinatown master plan and housing strategy targeted at both new construction and the rehabilitation of existing housing.

With an extensive background in housing development and construction management, the Chinatown CDC strategically prevents displacement, “We are going to keep doing what we have always grants housing for those whom market-based done, which is to take advantage of important housing is unavailable, improves housing quality opportunity sites and make improvements to the and helps strengthen communities and nonprofit greater Chinatown area,” Jones says. “We envision organizations serving local communities. The orga- a better community and organization, and we are nization is committed to empowering low-income dedicated to the residents in Chinatown and the residents, building coalitions, embracing diversity community that we serve.” and advocating for social and economic justice. A significant area of focus is green and sustainable building. “We want to focus a lot on green building because it is good for the environment and provides potential for savings on operating costs,” Jones says. “The core of our work is inherently green, because everything we do is urban infill, in a context where the vast majority of the households use public transit. We have strong recycling and composting education for our residents; producing less waste is an important aspect of greening. Anything that we can add to that, within our limited budget, including low or no VOCs in our finishes, photovoltaics, water saving measures, and reducing wastewater discharge, we also try to do.” COMMUNITY ASSETS Currently, the Chinatown CDC owns 23 properties featuring over 1,900 units and provides an affordable place to live to over 2,500 low-income families and seniors. The organization has another 250 units currently underway. This includes the Mary Helen Rodgers project, a 100 unit senior development that will include 20 formerly homeless residents. The organization is also working on Veterans Commons, a project that involves taking a former city office building and adapting it to house 75 home-

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Dedicated Developer

Rea Ventures Group Partner Eric Buffenbarger Location Atlanta, Georgia

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As a developer and owner of affordable homes, Rea Ventures Group boosts local economies throughout the Southeast by providing well maintained and quality workforce housing. The company also has a commitment to green building and design for a successful and environmentally sustainable future. “We strive to incorporate all kinds of green products into our properties,” says Eric Buffenbarger, Partner of Rea Ventures Group. “We’ve done photovoltaic solar power in some of our deals. We do geothermal heating for others. We always do up-

Expanding to new markets in order to grow their business

graded insulation and appliances. We just try to do whatever will make the company more sustainable down the road as we see fluctuations in energy costs. We’re on the cutting edge, and we take a lot of pride in that.” Over the years, Rea Ventures has developed over 3,260 units of multifamily housing and 130 units of single-family housing in the Southeastern market. Implementing a variety of green initiatives, the company has recently followed Earth Craft Community standards.


“We look at what makes sense, but a lot of what Rea Ventures totally rehabbed the property and we’ve been doing is Earth Craft communities,” added a number of new features for residents to Buffenbarger says. “We’ve done LEED. The Earth take advantage of and enjoy. Craft standard tends to take LEED and go a step further.” “It’s a gut rehab, so we really took it down to just the studs and rebuilt it,” Buffenbarger says. “On top of SERVICING A NEED all the energy efficiency features, we have a comLocated in Toccoa, Rea Ventures has 48 units puter center. There is also literacy training for the under construction with Fern Point. A failed sin- tenants. Before we didn’t have a community room, gle-family development, the company has turned and now we have community room. And, we’ve got it around and created a desirable property. Fern brand-new playground equipment.” Point has a scheduled completion date of August 2012. Moving forward, Buffenbarger says that Rea Ventures plans to continue to rely on its same tried“Not only was it an eyesore, but it was also a strain and-true business plan, but its team would also like on the bank and it had actually taken that property to expand into new markets. back,” Buffenbarger says. “We have taken a failed property and turned it into what we think is a terrific “We have two tax credit applications in South Carocommunity that is going to provide some much- lina,” he says. “We have not done a deal in South needed affordable housing for the City of Toccoa.” Carolina yet, and we also have two pending in Texas and we haven’t done a deal in Texas yet. We Rea Ventures Group has another project under would like to continue with our current model. If construction in Georgia scheduled to finish up in you’re going to do a nine percent tax credit deal, July 2012. The 60 unit Goshen Crossing will fill a the states have caps on how many deals you can great need for affordable housing in the area and do, so if you want to grow in your business, you incorporate a number of green features. have to expand into other markets. We are trying to take our business model, which has been very “Just like in Toccoa, we have many green initiatives successful for us, and apply it to other states.” in it,” Buffenbarger says. “We have 60 units there. We are probably 30 to 50 days from sealing our first building and we already have 77 people on the wait list. There is just a huge demand for it. We are using solar power to run our panels and our street lighting. You are investing upfront, but it is going to pay you back in full.” Rea Ventures also rehabs its existing properties when necessary. By way of an example, the company has 24 units in Florida from the 1980s that required a total rehab. Originally, the development was in a remote location, but Buffenbarger says the growth of the area prompted Rea Ventures to consider taking a different approach with the property. “That was a property that we already owned and we built back in the mid-80s, and at that time it was in the middle of nowhere,” he says. “Now it’s by a Super Walmart, and it’s just a great location. Instead of doing an affordable housing deal there and putting in the tax credit, we actually considered making it a market-rate property or even affordable condos, but at the end of the day, the U.S. Department of Agriculture really needed those units and they have the loan on that property. It is still just a perfect location.”

Residential • Commercial • Multi-Family Student Housing • Assisted Living • Service • Design Build

ALL SOUTH ELECTRICAL CONSTRUCTORS, INC. 150 Kelli Clark Court, Suite A • Cartersville, GA 30121-7005 Tel: 770-445-1443 • Fax: 770-445-3860 www.allsouthelectric.com FALL 2012 | DDC JOURNAL

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Reducing Poverty Helping people, changing lives and creating partners one development at a time As a primary and preferred nonprofit partner, the Community Action Partnership of North Alabama, commonly known as “The Partnership”, works to reduce or eliminate the causes and consequences of poverty through a variety of services and community relationships. “The partnerships we create and our history of successful developments are what we would point to as some of our strengths,” says Michael Tubbs, Executive Director. “The agency has done an excellent job of partnering with developers, investors

Community Action Partnership of North Alabama Executive Director Michael Tubbs Location Decatur, Alabama

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and construction managers to not only develop wonderful energy-efficient deals, but our occupancy rate is also very high, averaging around 97 percent. Some might not consider that success, but we consider that an affirmation that the deals we put together are in demand.” Since The Partnership’s first development in 1995, the agency has completed 31 projects totaling 1,600 units. While some of its properties are aging, the agency takes pride in maintaining what it has created.

nance repairs and making them look fresh. They look good inside and outside and are well managed.” Before the green building movement gained momentum nationwide, The Partnership incorporated energy-efficient building practices in its projects to lower utility costs for its residents. “In the south, we have the long, hot summers with high humidity and summer heat, and we know that can result in high electric bills,” Tubbs says.

“Our moderate-income clients don’t need electric bills in the summer that run as high as their rent payments. We built our units for energy efficiency before green was popular.” CONTINUAL IMPROVEMENT The agency has multiple projects underway as it adds to its portfolio. Named after a nearby farm, The Village at Blackwell Farm is a 48-unit senior living apartment complex in Jasper, Alabama.

“We think it is an excellent project because there is an affordable housing need for senior adults aged “The results are something we are very proud of,” 55 and older,” says Richard Lyons, Community DeTubbs says. “Our developments, although some of velopment Team Leader for The Partnership. “They them may be 12-15 years old, all are well kept and are energy-efficient units, and they are very well we continue to flow money into those for mainte- designed. We put in a community center that has


We learn from one complex to the next and know what to put in and what the tenants want. We try to continually improve. -Michael Tubbs

a meeting place for everyone and a kitchen. There is an exercise facility and computer room that the residents can utilize. We try to make it feel like home and we think that it’s an excellent project.”

Moving forward with its current projects, The Partnership knows that its past experience and preparation will make for a smooth development process for Blackwell Farms and Village Arbor, but the organization must continue to work diligently to successfully complete the Seville.

In March 2012, The Partnership submitted an application to the Alabama Housing Financing Authority for HOME funds to build a 56-unit apart- “Our developer partners are very capable of finishment complex in Pell City, Alabama. If approved, ing, and occupying Blackwell Farms,” Tubbs says. the Village Arbor will provide affordable housing for “If we are awarded Village Arbor, that developer seniors, with a design that includes features from knows that construction process. Our heavy lifting The Partnership’s past projects. won’t be in those deals. Our significant work will be the start up of Seville, creating a place where “We learn from one complex to the next and know homeowners are capable of staying in those homes what to put in and what the tenants want,” Lyons and growing with the neighborhood.” says. “We try to continually improve.” McKEAN & ASSOCIATES, ARCHITECTS, LLC

The organization is also involved in a partnership with the City of Decatur to develop the Seville Subdivision. The planned project will consist of 26 single-family homes available for purchase by low- to moderate-income families. “This is a new venture for us in Decatur,” Tubbs says. “We have several multifamily apartments, but we have not created many single-family homes. It’s a community in transition and we believe that building high-quality, energy-efficient homes in that area is important, because we would probably not see a for-profit do that for some time. We feel like we can invest here with a planned community.” The property was the home of a former Department of Housing and Urban Development (HUD) housing project. HUD demolished the housing complex several years ago after the neighborhood began to deteriorate, but The Partnership believes that Seville can provide a needed boost to the neighborhood. “It will be a fresh beginning for an older neighborhood and it will become an anchor in that part of the community and help bring that community back,” Tubbs says. “It’s not just about the houses we are going to build. It’s going to breathe some new life into that part of Decatur. The challenges will be to invest enough to create a presence, but not get ahead of ourselves so much that we build houses but not achieve homeownership.”

McKean & Associates is proud of our 17 year relationship with the Community Action Partnership of North Alabama through a private developer to provide Affordable Housing for Families and Seniors. Our firm has a commitment to provide excellence in architectural design and services resulting in projects that enhance their community and provide a higher quality of life for their residents.

Congratulations to the Community Action Partnership of North Alabama For your continued Growth and Success in Helping People . . . Changing Lives . . . LIHTC Housing

McKean & Associates, Architects, LLC 2815 Zelda Road Montgomery, Alabama 36106

 A leading Architect for Multi-Family Housing in the Southeast  Architect for over 500 Multi-Family Developments with over 26,000 Housing Units for Family and Elderly

 Designed over 350 LIHTC Affordable Housing Developments  Architect for Multi-Family Developments with HUD, USDA Rural Development, DoD and Conventional Financing

Rory L. McKean [334-272-4044] rmckean@mckeanarch.com FALL 2012 | DDC JOURNAL

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Robust Rehabs Affordable Housing for all In Central Brooklyn

Joshua Court

As a faith-based nonprofit organization, Bridge Street Development Corporation works to form partnerships with businesses, government agencies and other community stakeholders to offer civic and economic opportunities for central Brooklyn residents.

Bridge Street Development Corporation COO Emilio Dorcely Location Brooklyn, New York

The Bridge Street African Wesleyan Methodist Episcopal Church founded the organization in 1995. Since that point, Bridge Street Development has developed over 500 units of affordable housing and sold homeownership units below market value. It focuses on providing safe, secure and clean places to live, and the group currently has nearly 200 units in progress. “I think one of our primary strengths is our ability to work closely with the community,” says Emilio

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Dorcely, COO of the organization. The ability to select the right partners has also paid dividends for the group. Having someone to help guide the organization, such as Ryan J Walsh who provided legal counsel throughout many of the sale processes is an indescribable help. “Ryan is a dedicated attorney who goes above and beyond the call of duty for his clients to ensure that the deal closes successfully.” notes Dorcely. Bridge Street’s current project, Noel Pointer Court, makes up a portion of that project pipeline. Located at 790 Lafayette Avenue, the development will provide 23 apartments for low- and moderate-income families and individuals. In addition to creating affordable housing, Bridge Street also wanted to create an eco-friendly development, and although it has utilized green initiatives like solar panels on


previous projects, the organization has worked to incorporate a number of robust green features at Noel Pointer Court. “One of the things that we’re currently looking at is storm water retention systems that will reduce water usage for landscaping,” Dorcely says. “We are trying to make sure that there are areas with grass and flowers in an attempt to be greener. It adds some complexity in that you want to make sure that, even when you have these great ideas, the process is done correctly and safely.” Other green amenities include Energy Star-rated appliances, low-flow plumbing fixtures, the retention of storm water for landscaping and low-VOC paints and primers. The apartment complex will also benefit from a passive green roof, Dorcely says.

570 Willoughby

“We have integrated a number of eco-friendly features in the construction,” he says. “The passive green roof will help mitigate some of the building’s heat island effect. By having live plants on the roof, it helps to reduce the amount of heat that the building gives off.” Noel Pointer Court will not only look out for the environment. Bridge Street’s services at the property will also help residents prepare for homeownership. “One of the things that we will do, in addition to the green features, is to work with residents over the next 15 years to prepare them to purchase their apartments when the tax credit period is over and the project becomes a cooperative,” Dorcely says. “The idea is that residents over the next 15 years will become invested and will be working with us because we have homeowner programs around homebuyer readiness and homeownership services. We will be working with these residents to make sure that they get to own their own home at some point.”

Joshua Court

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Noel Pointer (facade rendering)

The project is scheduled to wrap up in December “Our core business is around real estate develop2012, with residents moving in before spring 2013. ment, and it has been a difficult and challenging For new developments, the organization has a lot- time for development, especially affordable houstery system to select residents, a process that will ing,” he says. “We continue to work with our public take place this summer. sector and private sector partners to make sure that financing continues to be available for future LOOKING FORWARD projects.” Bridge Street also has additional projects underReal Estate Developers way. The organization had the challenge of select- Real Estate Developers who are interested in developing 1-4 family homes, residential condos and co-op units in the New York tri state ing a new contractor for 570 Willoughby Avenue, area in low to moderate census track areas should seriously consider utilizing non for profit organizations. Non for profit organizations who an eight-unit development. Despite the contractor are focused on servicing low to moderate income individuals can prosetback, the project was concluded in late summer. vide a plethora of information and services to a developer. It also has an affordable housing project in predevelopment at 802 Myrtle Avenue. “One of the things that is similar to all of the projects that we do is that whenever we do any project, whether it’s new construction or a gut-rehab, we are constantly keeping an eye out for how to develop affordable housing that doesn’t look like the typical affordable housing stock,” Dorcely says. “What that means is that we try to pay special attention to the materials and we do our best to work with our general contractors to find a way to get materials that are both durable and stylish.” Bridge Street has also discovered that the extra attention paid to attractive design results in more community pride and care for homes. “One of the things that we have found is that the community appreciated that we work really hard to have apartments that look high quality and have high-quality materials that people can be very proud of,” Dorcely says. “Our affordable housing developments are not that distinguishable from private developments.” Dorcely says that Bridge Street Development Corporation will direct more future attention to senior housing and continue to seek funding to make new projects possible. 180

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Bringing Communities Together Building for immediate need and long-term flexibility Based in Cleveland, Ohio, the Partnership for Income Restricted Housing Leadership (PIRHL) is a developer and general contractor of affordable housing. Since the company was founded six years ago, it has grown rapidly. Today it stands with a track record of 1,082 units developed as reasonably priced housing options for residents in need.

organizations tend to have a very focused geographical area in which they develop, and it’s very hard for them to expand. PIRHL is nimble by nature, and we have developed a scalable platform across the eight states in which we compete. We don’t have the constraints that our nonprofit partners have, which helps us to serve them better.”

When working with nonprofit partners, PIRHL “Through our public-private partnerships, we goes the extra mile to contribute to their efforts, attempt to harness local community development embedding itself in the organization to help in any efforts and hopefully serve as a catalyst for broader way its team can. This is something that certainly revitalization,” says David Uram, Principal of sets the company apart from other developers. PIRHL. “That’s the underbelly of what we do, working in conjunction with existing community “With our nonprofit partners, we become almost development efforts.” an administrative member of their staff,” Uram says. “In essence, we’re not creating an additional Of its significant portfolio, PIRHL has developed administrative burden for their systems, but rather 236 single-family units, 485 town homes and 361 we’re enhancing their ability to complete their apartments for senior citizens. The firm works with missions because they are participating in projects both for-profit and nonprofit organizations in its they might not otherwise be able to do.” development projects. LIBRARY COURT “Our backgrounds are integral in making PIRHL A key project at the moment for the firm includes successful,” Uram says. “Nonprofit development a $7.4 million development project in the

PIRHL Principal David Uram Location Cleveland, Ohio

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Shaker Heights neighborhood of Cleveland. The geographical closeness of this project to PIRHL headquarters makes it particularly special for the team at PIRHL. “This is really the first development in Cleveland, in our hometown,” Uram says. “One of our investors grew up literally across the street, and that makes it a very important undertaking.”

with the hope that we could partner with the City of Shaker, with the Ohio Housing Finance Agency, and that we could secure resources from the American Recovery and Reinvestment Act (ARRA) to find a solution.” CHURCH SQUARE COMMONS Another recently completed development for PIRHL is Church Square Commons, which will add 48 senior units in the Euclid Corridor of Cleveland. The total cost of this project is projected at $9.4 million, and it has been helped significantly by federal ARRA stimulus resources.

The building has been named Library Court Apartments and will contain 44 units restricted to seniors age 55+ earning at or below 60 percent of the Area Median Income for Cuyahoga County, Ohio. The deal was awarded during the turmoil of “Library Court and Church Square both ended up the housing crisis, so it involved PIRHL assuming securing a significant amount of stimulus money some risk. that allowed them to move forward,” Uram says. “You have to have some faith and you try to be good “This deal was awarded during the collapse stewards of your resources, but at some point, of the market, in the spring of 2009. The tax without those partnerships, these deals would not credit investor market was in a deep freeze with have existed.” tremendous uncertainty. Library Court was not economically feasible when it was awarded,” Uram Significant investments of local funds have also says. “We literally had a $2+ million financial gap been essential in making the Church Square at the time of award, and just had to push forward Commons project possible.

Our goal is to create developments, designs, layouts, densities and financial structures that allow for longterm flexibility so that we could potentially turn them into homeownership units down the road, for example, if we needed to. -David Uram

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Church Square Community Room


Located on Euclid Avenue, a once-vibrant and critical corridor within the City, Church Square is part of a large scale redevelopment effort that is slowly changing the face of Cleveland. . The City of Cleveland secured over $220 million in federal resources to reconstruct Euclid Avenue from downtown Cleveland to the institutions and cultural attractions at University Circle. This Euclid Corridor redevelopment effort has facilitated significant reinvestment totaling over $3.3 billion in new development projects since 2008, nearly $180 million of which has been invested in the MidTown Corridor where Church Square is located. The building sits on the former site of Eaton and Rugby Hall, two seven story apartment buildings that began to show signs of failure as the Cleveland rental market shifted in the late 1960’s. The buildings were ultimately shut down in 1976 and remained vacant and blighted for the next 36 years; degrading to the point they could not be saved. The City recognized the need for affordable senior housing and the long shadow being cast by Eaton and Rugby, a shadow that was undermining new investment along this portion of the Euclid Corridor. To that end, the City of Cleveland made significant financial investments, $600,000 in City Trust Funds along with 15 year 100 percent tax abatement (worth an estimated $300,000), which were essential in making the development possible. With all of its development projects, PIRHL strives to keep a long-term focus. The firm wants to build properties that are sustainable and are versatile enough to grow with the community over the years areas continue to develop. “Our goal is to create developments, designs, layouts, densities and financial structures that allow for longterm flexibility so that we could potentially turn them into homeownership units down the road, for example, if we needed to,” Uram says. PIRHL’s long-term planning can and does require extra cost and effort on its part, but it’s an investment that the company is committed to making for the overall good of each community. “We need to make sure that a building is not functionally obsolete the moment it’s placed into service,” Uram says. “Having that awareness and sensitivity is very difficult, but it makes for better development.”

Energy-One heating & air conditioning We are proud to be selected by Pirhl for thier HVAC needs. It has been a privilige to work on the Euclid Corridor and Millcreek projects with them. Energy-One looks forward to our continued relationship.

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A Perfect Pair High-Quality construction for long-term property management

Barnett Plaza

Barnett Plaza

Fairfield Homes President, Gorsuch Management Ron Burson President, Gorsuch Construction Jennifer Walters Location Lancaster, Ohio

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Founded in 1947, Fairfield Homes has earned a these two entities provide a team of individuals reputation as a quality developer of single-family committed to the long-term success of communihomes and subdivisions, commercial construc- ties. tion, historic restorations and multifamily housing. Specializing particularly in affordable housing, it “We try to do it as right as we can possibly do it, has remained focused on gradual, sustainable im- and that is both with the development and the conprovement over the years. struction phase. As we take over and manage, we are long-term managers,” Burson says. “We are “We’re primarily affordable housing developers, not a company that is constantly buying and selling owners and managers, and it’s a tough business,” products and looking for a quick buck. We’re comsays Ron Burson, President of Gorsuch Manage- mitted to our residents and we’re committed to our ment, a division of Fairfield Homes. “A lot of other communities.” companies have come and gone over the years. We’re steady, we’re stable and we have modest Gorsuch Construction began in 1998. Over the growth. We’re not an organization that is going to years, the division has gained experience in the add 20,000 units a year.” development and construction of warehouses, senior and family apartment communities, office Fairfield Homes is made up of both Gorsuch Man- buildings, banks, nursing homes, recreation faagement and Gorsuch Construction. Combined, cilities, veterinary clinics, medical facilities, retail

Barnett Plaza


Construction of Heart of Ohio

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Forest Park

shops, law offices, hospice faculties and historic renovations.

appearance of each property. The company also relies on its partnerships and agency associations to succeed.

“Attention to detail is what I think really stands out,” says Jennifer Walters, President of Gorsuch Con- “One of our strengths is that we have multiple partstruction. “There are a number of surprises with ners and government agencies that oversee much construction, but I would say that we come pre- of our product,” Burson says. “We have the [Depared as far as doing our due diligence and the partment of Housing and Urban Development] inthorough estimating of how much a project is going volved in probably half of our portfolio. We have tax to cost.” credits involved in about half our portfolio, which brings the state oversight agency to the table. We The company has built over 4,700 housing units are also involved with our tax credit syndicator, throughout Ohio, Kentucky, West Virginia and In- Ohio Capital Corporation for Housing, which is well diana. known nationally.” “The construction [division] takes a lot of pride in not cutting corners and trying to do the little extra things that help our buildings last longer,” Burson says. “I think you see that in pictures of our properties. There are some in the business that shortcut on the construction side, and it really shows up when you are trying to manage the property with limited resources if you don’t have quality construction from the beginning.” On the other side, Gorsuch Management places a great deal of importance on the maintenance and

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Burson says that while others may fail to follow regulations closely, Gorsuch Management and Fairfield Homes is highly compliance-driven. Ohio Capital Corporation for Housing Ohio Capital Corporation for Housing is a Columbus, Ohio based nonprofit financial intermediary that provides developers of affordable housing with access to capital markets. Created in 1989 by the Ohio Housing Finance Agency, OCCH has raised over $2.25 billion in equity investment, financed more than 27,500 units of affordable housing, and assisted in the creation of more than 525 affordable housing projects. We are pleased to celebrate our partnerships with the following organizations on the construction, rehabilitation, and preservation of affordable housing and are proud to have invested with: Millennia Housing Development Corporation in 14 projects totaling 916 units. PIRHL in 9 projects totaling 401 units. Fairfield Homes, Inc. in 17 projects totaling 783 units. For more information contact Hal Keller, President or Jack Kukura, Chief of Acquisitions, 614-224-8446 or www.occh.org.


$2.25 BILLION

in private corporate equity investments

27,500

Units of affordable housing

525

Fairfield Homes, Inc. Logan Place Mansfield, Ohio

Developments and partnerships

Fairfield Homes, Inc. Wilshire Place Lima, Ohio

Ohio Capital Corporation for Housing is proud to be a partner with: Fairfield Homes, Inc. Millennia Housing Development Corp. PIRHL, LLC. Millennia Housing Development Corp. Plains Plaza The Plains, Ohio

For more information contact Hal Keller, President or Jack Kukura, Chief of Acquisitions 614.224.8446

Millennia Housing Development Corp. Trail West Apartment Newark, Ohio

88 East Broad Street, Suite 1800 Columbus, Ohio 43215 www.occh.org PIRHL, LLC. Church Square Commons Cleveland, Ohio

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“You cannot stay in the business and manage these properties if you are not attuned to the most current government regulations and tax credit regulations,” he says. “We have multiple management reviews at all of our properties. If you do not take care of the compliance aspect, you will have investors that will lose tax credits and you will not be in business for long.” Putting this experience and philosophy to work, Fairfield Homes is currently rehabbing 40 units at the Wilshire Place development in Lima, Ohio. The units will receive a number of upgrades, such as improved lighting and carpeting, as well as a number of green enhancements. “We’re doing more green communities, green certified materials and procedures,” Walters says. “We are recycling a lot of the products that are coming out. We are putting in bamboo flooring for the first time, which is going to be a more durable, longer-lasting green certified product. It’s a rehab, so we are taking a dated product and making it a lot more open. We are giving it a facelift and using products that are going to last longer with less maintenance.” Located in Mansfield, Ohio, Logan Manor is another property that Fairfield Homes is working on rehabbing. The 45 units of senior housing will see a number of improvements, as well as walking paths and benches on the surrounding land to promote outdoor activities. “At Logan, because it is senior housing, we are having a portico where people can drive and drop off seniors while being protected from the weather and really opening the entry way up a little bit more with a double entry,” Walters says. “We’re also expanding the community room. That’s where a lot of people hang out and have their games and friends. We’re pushing that out because we have a lot of land there.” Moving forward, Fairfield Homes will continue to improve affordable housing and expand on its experience in the field. “It’s our goal to continue to grow in the affordable housing sector,” Walters says. “We are very experienced and committed as long-term owners in affordable housing, and we just want to keep improving on that.”

SMS CPAs & Associates SMS CPAs & Associates is honored to be the Public Accounting Firm for Fairfield Homes, Inc. Fairfield Homes, Inc. is a recognized leader in their commitment to community, families, and quality of development, construction, and management services for over 60 years. We wish you continued success!

Saad & Saad LLP Saad & Saad LLP is a Central Ohio based law firm providing counsel in real property law, business law, and affordable housing law. Our full service title agency, Star Title Agency LLC, serves Ohio and eight additional states. We are pleased to work with Fairfield Homes as they continue to be stewards of successful development, construction, and property management.

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Ethos In Action

Quality development for distressed properties and communities

Ashland Terrace

Founded in 1995, Millennia Housing Development (MHD) works to acquire, preserve and rehabilitate multifamily residential rental properties. The company strives to offer the high-quality housing it has become known for, while also enriching quality of life for residents.

maintain our properties so that they can serve as quality affordable housing for the long-term.” Millennia Housing Development is part of the Millennia Housing Companies brand, joining Millennia Housing Management and American Preservation Builders. MHD manages approximately 8,000 units in seven states and uses subsidies under Section 8, Section 202 and Section 236 of the National Housing Act, as well as Rural Development and tax credits. Not only concerned with the physical conditions of its properties, Millennia places a strong emphasis on providing a variety of services to its residents.

“We pride ourselves on our properties and as an owner and manager in quality homes for people for the long term,” says Christine Robertson, Vice President of Development for Millennia Housing Development. “Whereas some developers [that we compete for resources with] really take a more short-term approach because they are perhaps turn-key developing for somebody else, we look at our properties from here through the long haul. “We have a dedicated resident advocacy director on We don’t sell properties. We buy, renovate and staff whose sole focus is to work with each of our preserve them for our portfolio, and our goal is to properties to ensure that residents have the ser-

Millennia Housing Development Vice President of Development Christine Robertson Location Cleveland, Ohio

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Hannibal Manor

vices necessary to live quality lives, whether they purchase the property and begin physical capital are social services that range from basic needs like improvements in 2011. Now renamed Seneca food and household goods all the way to opportu- Grove, Millennia has made some significant imnities for residents to advance with education and provements and managed to change the negative job placement. We also have computer centers,” image of the property that Argonne Arms had asRobertson says. “We try to make sure that all of our sociated with it before the firm took over. residents are afforded opportunities to meet their basic needs while having access to the tools they “Properties built in the 60s, 70s and early 80s do need to achieve their long-term goals.” have forthcoming capital needs,” Robertson says. “It had a reputation for being a difficult property in And the service provision does not end there. The the community, with drug trafficking and high levcompany also aims to engage residents in commu- els of police calls. Even without the capital improvenity activities and to create a warm and welcoming ment money that we are now lucky to have for the environment. physical work at the property, over the years since “We work to create a sense of community at each one of our properties by facilitating resident gatherings and contests at the properties, things that help neighbors meet neighbors and provide for a good quality of life for all of our residents,” Robertson says.

Bock & Clark Bock & Clark has proudly supplied Millennia Housing Management with ALTA Surveys across the United States for more than seven years. We congratulate them on their continued growth and success. Bock & Clark is the leading national coordinator of ALTA Surveys and provides Zoning Reports through its B&C Zoning division. Established in 1973, we pride ourselves on a quality product and consistent service.

Forest City Capital

CONSTANT IMPROVEMENTS Putting this philosophy in action, MHD has a redevelopment project underway in Painesville, Ohio. The firm began managing the Argonne Arms apartments in 2005, and thanks to the Ohio Housing Finance Agency tax credit program, it was able to

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For more than 45 years, Forest City Capital has built its reputation on a foundation of Trust, Integrity and Experience. One of our core strengths is creating relationships that span the entire life of loan, beginning with the loan origination process and continuing on through closing and servicing.

United Agencies We have been servicing customers insurance needs for over thirty years. United is one of the largest independent agencies in the Midwest with over 60 agents and $50 million in production annually.


a developer’s FHA lender Forest City Capital congratulates

Millennia Housing on its record of growth

FCCC, a HUD approved LIHTC pilot lender, is pleased to serve the mortgage needs of affordable housing developers nationwide. For more information, contact Tony Love at (216) 416-3503 or tonylove@forestcity.net FALL 2012 | DDC JOURNAL

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Ashland Terrace

We work to create a sense of community at each one of our properties by facilitating resident gatherings and contests at the properties, things that help neighbors meet neighbors and provide for a good quality of life for all of our residents. -Christine Robertson

we took over management, we worked with the city and the police department to really change the reputation of the property. Once we get involved with a property, even ones that have difficulty and troubles, our goal is to make it a better place to live, even if we don’t have the rehab resources necessary to do the physical work.”

more accessible units. As an elderly property, it helps people to age in place rather than having to move on to a nursing facility.” In the future, Millennia Housing Development plans to grow and expand its properties throughout eight states by the end of the year. The company has six more tax credit projects in the pipeline this year in Ohio, Iowa, Indiana and Missouri, and Robertson says that as the company expands and grows, it will continue to improve its efficiency.

Millennia Housing Development also has a current project underway in Greensburg, Kentucky. Greensburg Village, which was formerly owned by the local housing authority, offers 50 units of senior living, but the development had inefficient “As we add properties, it certainly adds to our efunit designs. The Millennia team has reconfigured ficiency on the management side of the operation,” many of the units in order to make them more ef- she says. “With the further-out states like Iowa, we ficient and to better meet the needs of the elderly don’t have as much inventory yet, so we if we can residents. begin to preserve properties though tax credit programs and add more to our inventory, then we can “It has L-shaped living rooms,” Robertson says. become more efficient on our property manage“We are moving the wall out to provide additional ment side.” living space in each one of the units and provide

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education

P194 Washington University School of Medicine P199 Liberty University P202 Southern Methodist University P204 Campus Apartments P206 dck pacific

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Vision Of The Future A new cancer center for Washington University School Of Medicine and Barnes-Jewish Hospital

Main Entrance

Washington University School of Medicine Director of Design and Construction Steve Sobo Location St. Louis, Missouri

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Washington University School of Medicine and Barnes-Jewish Hospital have begun construction on the new Alvin J. Siteman Cancer Center in South St. Louis County, Missouri. The new facility will mark the third Siteman Cancer Center in the area and will provide multidisciplinary cancer treatment for medical and radiation oncology patients in the south and southwestern metropolitan area of St. Louis, as well as downstate Missouri and central and southern Illinois.

Construction for the Washington University School of Medicine. The $27.5 million project broke ground in November 2011 and has a scheduled completion date of early 2013. Prior to starting the design, a committee was formed to establish “guiding values” for the patient care environment. The architects were then challenged to incorporate these guiding values into their design.

“From a design, construction and architectural standpoint, we constantly strive to improve our buildings from lessons learned on previous projects.” says Steve Sobo, Director of Design and

During the RFP process the solicited firms were provided with the guiding values document. Their challenge was to analyze the 16 acre site and demonstrate through positioning of the building how


North End Radiation Oncology Area

Medical Oncology Waiting Area

they would implement the guiding values in their design proposal. INCLUSIVE COMMUNICATION Through the design process, the project team has relied on constant communication and collaboration. “Our project approach was to implement a modified, integrated project delivery approach. We elected to bring the construction manager on board at the same time that we selected the architect.” says Sobo. “The construction manager was challenged with monitoring the construction cost and all building systems selected. The construction manager

then brought on board the major [mechanical, plumbing and electrical] subcontractors to participate in the design process. The subcontractors and construction manager worked closely alongside the architect and engineer ensuring the selected building systems were within the established budget.” Like most projects, the Siteman Cancer Center project has experienced some challenges, includ-

Paric When choosing a construction company for a facility that caters to a vulnerable patient population, it’s impossible to overestimate the importance of previous health care experience. Paric embraced the client’s vision for a cancer care center that personifies compassion, hope and the reassurance of state-of-the-art care. Envisioning the facility through a cancer patient’s eyes has influenced every decision Paric makes. Just one more example of how Paric provides custom solutions based on the unique needs of each client.

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WHERE CARE IS BUILT IN FROM THE GROUND UP THE NEW SITEMAN CANCER CENTER OF SOUTH COUNTY WILL BE THE EMBODIMENT OF EVERYTHING PARIC STANDS FOR — COMMITMENT TO THE COMMUNITY, EXCELLENCE IN SERVICE AND QUALITY, A SAFE ENVIRONMENT AND SOLUTIONS THAT ARE CUSTOMIZED FOR EACH AND EVERY CLIENT.

When the owners of the premier cancer center in the Midwest sought to make their services more accessible to patients in south St. Louis County and beyond, they understood the value of hiring a construction company with health care experience. Washington University School of Medicine and Barnes-Jewish Hospital chose Paric Corporation to help make their new $27.5 million Siteman Cancer Center of South County a reality. The new 16-acre center at Interstate-55 and Butler Hill Road will offer a multi-disciplinary approach to cancer care, with physicians from radiation oncology, medical oncology and surgery all practicing in one central location. Patients will have access to the same innovative technology and state-of-the-art treatments offered at the internationally recognized main Siteman location. The new center will also house a licensed retail pharmacy. And since patients undergoing cancer care require extensive support from family and friends, special design consideration has been given to the caregivers who will accompany the patients. All in all, the center has been designed to comfortably accommodate 200 visitors per day. In order to meet an ambitious delivery deadline of December 2012, Paric began site work in November 2011. But in reality, the build team began “laying the groundwork” for the new cancer center in January 2011. Paric, along with the architects and engineers of BSA LifeStructures and Optimal Engineering Solutions (OEM), began holding regular weekly meetings with some of the doctors, pharmacists, technicians and support staff who will actually be working in the new facility. Together, they poured over the designs and studied cost-benefit analyses, looking for every way possible to optimize the patient experience. “Not all clients realize it, but personalities and the ability to work as part of a team play a huge role in the success of a project,” says Jere Sheehan, Paric Senior Project 196

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Manager. “Those weekly meetings early on allowed us to forge a solid team. The design adjustments we made will reap long-term benefits for our client. Plus, it’s always cheaper to make any design changes on paper, before construction begins.” Washington University School of Medicine and BarnesJewish Hospital had a clear vision for their new 37,000-square-foot cancer center—to create a healing environment that evokes calmness, caring, inspiration, trust, respect and professional excellence. “By investing the time to understand your client’s vision from the outset, you start to see how each suggestion you make is going to impact, not only the budget, but the physical environment and the overall feel,” says Sheehan. Insight into a cancer patient’s experience influenced everything from parking arrangements, to interior traffic patterns, to building materials, to temperature controls, to furnishings. “One vivid example is the fact that the typical appointment for an infusion patient is three to four hours,” says Sheehan. “A chair next to the window with a view of the healing garden would almost certainly help pass the time. But since chemotherapy patients are extremely sensitive to temperature fluctuations, locating seating next to windows presented a challenge. Instead of relocating the chairs or eliminating the windows, the team addressed it by specifying chairs with individual temperature controls.” Paric’s health care experience paid off in other ways, too. For instance, Paric designated the cancer center a 100-percent no-smoking construction site from day one. Also, as soon as the walls started going up, foods and beverages were prohibited inside the perimeter, thus eliminating any possibility that remnants could cause future health problems. The vinyl plank flooring Paric will install throughout most of the facility was chosen because it has the warm look


of wood, but is easy to keep clean. Exterior walls of the new cancer center will meet current energy code requirements, resulting in a more energy-efficient building. And while the medical oncology department will have high ceilings to allow openness and an abundance of natural light, Paric will install cubicle curtain tracks that will ensure needed privacy for each patient. But for now, Paric is still in the early stages of construction. Significant rainfall and cold weather presented challenges for the initial site grading, so Paric used a variety of soil treatments, including quicklime, to allow the soil to reach optimum moisture content in a shorter period of time. As the soil was compacted and the foundation poured, Paric also prepared the extensive concrete structure that will shield the linear accelerator used to generate highenergy X-rays and electron beams that precisely target tumor cells deep within the body. By March 2012, 50 percent of the structural steel was in place, all of the underground rough-in was complete and the final slab had been poured. “It’s a very vulnerable patient population, so a lot of thought has gone into the overall patient experience,” says Sheehan, “everything from the location of the main entrance, to the shape of the reception desk, to the clerestory glass system that will bathe the lobby in natural light. When it’s complete, I’ll have the personal satisfaction of knowing that Paric’s quality initiatives have been implemented at every step of the process.” In many ways, when it opens its doors in January 2013, the new Siteman Cancer Center of South County will be the embodiment of everything Paric stands for — commitment to the community, excellence in service and quality, a safe environment and solutions that are customized for each and every client.

“PERSONALITIES AND THE ABILITY TO WORK AS PART OF A TEAM PLAY A HUGE ROLE IN THE SUCCESS OF A PROJECT” JERE SHEEHAN PARIC SENIOR PROJECT MANAGER

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View of Medical Oncology Infusion Waiting-Treatment Area

ing balancing needs for the facility with the avail- “We stress the design of a healing environment,” able budget. Sobo says. “You really have two dimensions. Part of the building is for radiation oncology, where paWorking closely with administrations of both tients go for 10 to 15 minutes of radiation therapy. Barnes-Jewish and Washington University and The other part of the building is the medical oncolwith the Washington University cancer specialists ogy side, where patients go for chemotherapy infuwho provide patient care at the facility, the project sion treatments that may last several hours.” team was able to prioritize wants versus needs to ensure that primary elements were incorporated Patient comfort was a design priority. In addition to into the final design. selecting materials that provide our patients with the visual comforts of a home environment, we also “Previously a foreclosure property, with this par- test drove and selected furniture that was comfortticular property we were faced with the potential able for our patients, some of whom who might be for encountering unknown conditions. Site survey frail. The design will also incorporate natural light information and site reports although requested, through the use of clerestories. Fireplaces were were not available.” Sobo notes. “One goal of the introduced to the family patient lounge areas to project was to utilize as much existing infrastruc- create family room-type areas. Plans also call for ture as possible. This included roads, detention a donor-funded healing garden that will be directly basins and underground utilities. We were only adjacent to and accessible from the infusion area. partially successful, however. The existing roads This is an area where patients and their families and detention basin had to be removed. The water can go to relax, reflect, and enjoy each other’s loop was maintained but required tightening of the company and the inspiring atmosphere. pipe joints to the water pass pressure test.” “The garden is just one aspect of how we realize our Despite the early setbacks, the construction team priority of creating a positive and inspiring environlooks forward to beginning interior work late spring. ment for our cancer patients,” Brauer says. “The “Compliments of a mild Missouri winter, construc- design, use of light and interior finishes, art and tion is progressing well and we are maintaining furniture all contribute and have been thoughtfully our scheduled completion date,” Sobo added. Al- managed.” though located on a large 16-acre site, this 37,000 square-foot, one-story Siteman Cancer Center fa- While the Siteman Cancer Center will offer privacy cility will only utilize approximately nine acres. The for patients, it will also create a social atmosphere cancer center has been designed to accommodate for patients who repeatedly meet for infusion treatexpansion to the south and west without interrupt- ments, and in the process build bonds and friending patient care. ships. PATIENT PRIORITY A great deal of attention was paid to understanding our patients and creating a facility that minimized distances between treatment areas, providing a clear, organized flow for our patients and staff. 198

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“We needed our infusion area to have the flexibility to give people privacy if they are not feeling that well, and/or an open area where they can hang out with other patients for a few hours during their visit,” Sobo says.


A Symbol Of Liberty Striving for academic excellence at the nation’s largest nonprofit university

As the largest university in Virginia, the largest nonprofit university in the nation and the largest Christian university in the world, Liberty University in Lynchburg, Virginia is committed to academic excellence. “The goal here was to create a world-class university for evangelical Christians similar to what Notre Dame is for Catholics and what Brigham Young is for Mormons,” says Jerry Falwell, Jr., President of Liberty University. “Without academic excellence, you can’t have a world-class university. We have 20 NCAA division I sports, but they are just to shine a light on what our mission is. Our mission is not athletics. Our mission is academics and training students to go out in every field.”

vast range of technologically advanced academic, residential and recreational spaces. A tight budget in Liberty’s early years, however, prompted the construction of many temporary facilities at the time. “The facilities are something that we couldn’t afford in the early days,” Falwell, Jr. says. “We built temporary structures and those structures are now being torn down, but we used them for 35 years. Now it’s humbling to be part of that fulfillment of the original vision of having not just world-class programs, but also world-class facilities.” ASSET MILESTONE Most of the development has taken place in the last 15 years, and Liberty University has reached an asset milestone at an extremely fast pace.

Founded in 1971 by Jerry Falwell, Liberty University offers more than 230 programs for students both “The library is the first step in a quarter of a billion online and onsite. The 6,500-acre campus has a dollar renovation of our campus,” Falwell, Jr. says.

Liberty University President Jerry Falwell, Jr. Location Lynchburg, Virginia

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The goal here was to create a world-class university for evangelical Christians similar to what Notre Dame is for Catholics and what Brigham Young is for Mormons. -Jerry Falwell

“Liberty is now the youngest American University to accumulate $1 billion in net assets, and we did that really in the last five years. To put that in perspective, it took Harvard University 329 years between 1636 and 1965 to hit that same goal.”

like what we think Jefferson would build right now if he had the same access to materials and modern design that we do,” Falwell says, Jr. “That’s what we think we have done.”

Liberty University used an architecture firm from Filling the need for student study spaces and creat- Charlottesville that had previous Jeffersonian deing a new center of the Liberty campus, the univer- sign experience from its work with the University of sity began construction on the Jerry Falwell Library Virginia. After several changes and new ideas, the in early March 2012. The $50 million project will school had just the right design. include 170,000 square feet of space and feature a modern take on Jeffersonian architecture. “We spent months and months going to different sessions with the architects here, and we had to “We wanted to use Jeffersonian features and archi- go back to the drawing board three or four times,” tecture, but also incorporate modern designs and Falwell Jr. says. “We finally went back and forth materials so that the buildings don’t look like what until we ended up with what we think is the perfect Jefferson built 200 years ago, but rather they look design for Liberty.”

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The new library is scheduled for completion in May hold the books will be visible from different parts 2013 and will include a number of student spaces of the library.” ranging from individual to group study. The facility will also include a small food court, as well as Looking to the future, Falwell Jr. believes that the library a central heating and cooling plant in the bottom will serve as the heart of the campus and promote the level for all campus buildings. Setting the library university’s commitment to academic excellence. apart, the university will install an automatic retrieval system to improve efficiency and save on space. “In some ways, we believe that it will become a social center with some of the spaces that are not “The automatic retrieval system will allow us to store designed just for quiet study,” he says. “It is highly nine times the number of volumes in one ninth visible from the main highway here. We want it to of the square footage that you have with normal be a symbol of Liberty’s commitment to academic stacks. It’s a big space saver,” Falwell, Jr. says. “It’s excellence and to fulfill the original dream of acaa robotic system that is used by FedEx. I was a demic prominence.” little scared to use a robotic system that was only banker steel company used in libraries, because the thought of that thing Founded in 1997, Banker Steel is an award winning, AISC-certified steel fabricator based in Lynchburg, Virginia with two facilities breaking down at exam time is a nightmare no totaling 300,000 Sq. Ft. specializing in projects up to 25,000 tons. Our technology allows us to provide 3D modeling, BIM president wants to have. But when we saw that (Building Information Modeling) capabilities and electronic drawing management. Primarily serving the east coast Banker’s past and FedEx was using it every night, and we know how current projects include the Washington Nationals Baseball Park, the foundation package for World Trade Center Tower 1, Fort important deadlines are for FedEx, we decided that Belvoir Community Hospital in Ft. Belvoir, VA, the Barclays Center the technology was dependable. The tower that will in Brooklyn, NY and the International Gem Tower in New York City.

Fabricating Steel for Incredible Structures at Liberty University and Throughout the East Coast.

Simple Relationships, Complex Projects. That’s the Strength of Banker Steel. www.bankersteel.com /1-800-285-4938 Alternate Layout.indd 1

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Residential Commons

Southern Methodist University Associate Vice President and University Architect Phillip Jabour Location Dallas, Texas

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Fulfilling a strategic campus master plan

Focused on a prosperous future, Southern Method- The master plan seeks to accomplish several obist University (SMU) in Dallas, Texas has assembled jectives that complement facilities growth. Followa team of architects, planners and specialized con- ing the lead of previous structures on campus, its sultants to create a comprehensive campus master design maintains the Collegiate Georgian architecplan. The completion of the plan will coincide with tural style that SMU’s buildings are known for. the upcoming conclusion of the 100-year anniversary of SMU’s founding in 1911 and opening in 1915. “It’s an interpretation of Georgian architecture in a collegiate setting,” Jabour says. “That has become “The design continues the expansion of the aca- the brand of the architectural style from the builddemic areas of the campus and the athletic ar- ing layout and a ground layout as well.” eas of the campus through the next few years up through 2015, and potentially beyond,” says Phil- CHALLENGES AND IMPROVEMENTS lip Jabour, Associate Vice President for the Office The master plan also intends to improve campus of Planning, Design, and Construction and Univer- navigation, reinforce the pedestrian character of sity Architect. “The campus plan was started back the campus and enhance landscaping. One of the in 1996 and approved by the Board of Trustees in university’s strategies to accomplish this is to mini1997, and we have continued since that time to mize the amount of surface parking and concenbuild upon that expansion in the campus both on trate parking on the perimeter of the campus and the main part of the campus and the east side of in parking garages. the campus. We’re providing long-term academic, athletic, residential and administrative facilities for “Obviously, you can’t eliminate vehicular access for the university.” various reasons, but the idea is to build, as best


we can, at a pedestrian level in order to encourage moving through campus by foot,” Jabour says. “A way we are supporting that is with the creation of a campus pedestrian mall, running from the north to the south side of campus. The mall will become a main link, and there will be secondary and tertiary links that tie into that, which will take you to other parts of the campus.” The ground on which the campus sits can make navigation difficult, so SMU’s master plan will eventually, also, implement a number of elements like maps and electronic media to assist students in finding their way through it.

sophomores living on campus,” Jabour says. “Freshmen and sophomores will now live together for two years and in common. The new residence halls that will accommodate 1,250 more beds are under construction, along with a new dining commons and parking garage. That is in addition to some of the conversions we will be doing to some of the existing residence halls in order to accommodate the new model.” SMU hopes that the completion of the campus master plan will be a highlight of the culmination of the 100 year celebration of the university in 2015 and set a positive tone for the future. However, the school will continue to make improvements in the near and distant future.

“Coupled with the improvement of campus navigation, the trees are getting thicker and larger and have larger canopies, which means that seeing “The master plan carries us through 2015, and in and finding your way around campus has become 2015 we will be reevaluating the master plan for a little more challenging,” Jabour says. “How you the next decade or two decades as we continue our get around campus is being evaluated, in addition facilities growth,” Jabour says. to the integration of actual physical elements and potentially the use of electronic media like maps or Purdy-McGuire other devices that people use today.” Purdy-McGuire is honored to have worked with Southern Methodist The current plan consists of about $375 million of work and over 800,000 square feet of overall construction taking place through 2015. It includes the construction of five residence halls, renovations to existing residence halls, an 800-space parking garage, a 30,000 square-foot dining facility, a new tennis complex with indoor and outdoor courts, a data center, library renovations, improvements to the health center, pedestrian malls, an electrical sub-station and the centralization of the campus generators, as well as a number of roads and infrastructure upgrades. NEW HOUSING MODEL SMU has adopted a new housing model, which it will implement when construction wraps up on that portion of the project in 2014. “We’ve adopted what we call ‘residential commons’, which is modeled after the residential colleges that have been implemented across other American university campuses,” Jabour says. “These have been modeled after the residential college models at Cambridge and Oxford, which have been around for many years.” As part of this effort, SMU will incorporate both student life and academic spaces for students to use as part of their residence hall experience. “We’re constructing a new residential commons housing complex to serve the requirements of

University on 22 projects to date, including their “Residential Commons 1250,” which is a 1250-bed residential student housing complex consisting of five dorm buildings, a dining hall and a parking garage. Congratulations to the entire SMU team on a job well done, and we wish you continued success!

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Problem-Solver Helping universities achieve the best in student housing

Shippensburg University

Since its founding in 1958, Campus Apartments has grown into one of the largest privately held student housing organizations in the country, delivering high-quality housing to colleges and university communities.

Campus Apartments Chief Investment Officer Dan Bernstein Location Philadelphia, Pennsylvania

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“I think what is most important about us is that we are truly vertically integrated. We are a student housing investment, development, property management, technology and financing company, all under one roof,” says Dan Bernstein, Chief Investment Officer for Campus Apartments. “What that translates to is that we are true owner/ operators who pride ourselves on thinking the way a school does. We are not merchant builders that are building a product and then handing it off. We have an operational background and we are thinking about this business in a certain way. It’s about the long-term strategy and the programmatic goals that the university is trying to achieve.”

Campus Apartments’ properties have been home to students from over 70 college and university communities over the years. The company’s active pipeline consists of more than $300 million in development deals, in addition to its current portfolio of more than 32,000 beds in 25 states. The company has the experience in all areas of college and university housing development and management to meet the needs of any institution. VILLAGER HALL Currently, Campus Apartments has an estimated 422,000 square feet under development, including work at Shippensburg University and St Joseph’s University. At St Joseph’s, the company is developing the mid-rise Villager Residence Hall, a freshman dormitory with an attractive design that will provide a 413 vvbed residential community with a great blend of living, social and study spaces.


“Each building we develop for a university or on our own has to be unique and follow the mission or demographic of a school,” says Bernstein. “With St. Joseph’s, we had a very thorough process with the facilities and residential life departments in trying to understand exactly what they wanted to achieve. Each school has a certain ideal for how they want to socialize their students, and we worked very closely with them to understand those objectives.” The Villager also has a prominent location on campus, and so the company needed to develop an attractive design to mix well with its surroundings. As a result, the building will feature tower elements and other unique components. “The building is on a very prominent corner of the campus,” Bernstein says. “It is a gateway-type project and it sits next to their chapel, so the design had to take into account all of those factors and be a handsome enough structure to complement its surroundings. It needed to be a building that not only the school could be proud of, but the community as well.” UNIVERSITY OF PENNSYLVANIA Meeting the needs for extended-stay accommodation within the University City section of Philadelphia, Campus Apartments constructed a 136 room Homewood Suites by Hilton® hotel in 2011. The 190,000 square-foot, $50 million project, which was developed during a tough economic time, offers residential style suites for those visiting Philadelphia’s nearby academic and medical institutions. “We were able to build and finance a hotel in a very difficult economic time when there was not much high-rise construction happening in the City of Philadelphia. At that particular time, we were the only crane in the air,” says Bernstein. “We understood the true demand for this hotel and are proud of our creativity and our ability to design, develop, finance and deliver a really wonderful project. One that also had the benefit of creating jobs in the city.”

construction of the new units and the demolition of the old units,” he says. “Because we are building on top of the footprints of other buildings that we are taking down, the timing and phasing is extremely important. We needed to balance the various priorities and sensitivities of the school, which took a tremendous amount of collaboration. As a result, the first phase will be delivered by January 2013, with the final phase slated for completion for the fall semester of 2015.” Moving forward, Bernstein says that Campus Apartments hopes to continue its success and lean on the lessons and experience gained over the past decade. “I hope we are able to replicate a lot of the success that we have had over our history, but especially over the last 10 years or so,” he says. “We have a reputation for being very fair, very honest and very creative, and we excel at helping schools solve their problems and bringing our expertise to the table, whether it is from a construction, design, finance or master planning standpoint. We hope to continue to be seen as a problem solver and a go-to firm for colleges and universities across the country as they look to upgrade or replace facilities and desire a trustworthy and capable partner.”

CUBE 3 Studio is a proud partner in the new student housing project for Campus Apartments.

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SHIPPENSBURG UNIVERSITY As one of Campus Apartments’ larger projects, its work at Shippensburg University will replace the school’s entire housing stock in a multiphase project that will eventually provide the university with 2,700 new beds. Bernstein says that the greatest challenge when replacing an entire housing stock involves phasing and timing. “With this three phase project, we had a lot of dialogue with the school in an effort to balance the

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Designing your vision

architecture

interiors

planning

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The Complete Package

Building new futures at the crossroads of the pacific

People don’t tend to picture a place like Honolulu, Hawaii when they’re thinking of big cities and densely populated skylines, preferring instead to imagine an island paradise or scenic retreat. Not only is Honolulu a modern commerce hub with a flourishing business scene, it’s also ranked number four, right behind cities like New York and Chicago, when it comes to its high-rise skyline.

dck pacific Senior Vice President and General Manager Eric Tessem Location Honolulu, Hawaii

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cesses to a solid focus on quality service and an adaptable business model. Commercial developments are only the beginning of the company’s extensive portfolio, which also includes military and federal projects, as well as numerous private, hospitality and healthcare, and design/build initiatives that have been hugely successful.

UNIVERSITY OF HAWAII Honolulu boasts over 470 high-rise buildings and dck pacific’s newest project grows its roots in the continues to grow annually thanks to a number of education sector and will culminate in the form of first-class construction firms. Notable within this an Information Technology Center at the University group is dck pacific, a company that’s responsible of Hawaii at Manoa. The 15-month, $42 million for a vast array of expansion initiatives on the is- dollar project will showcase the innovative building land. For over 83 years, the company has lent its strategy for which dck pacific has become known. expertise and quality, innovative services to the Honolulu skyline and other projects worldwide. “We’re very committed to both federal and education work, and one of our goals is to keep contribut“dck has created a lot of the skyline in Honolulu ing and putting efforts forth in that respect,” Tesand is responsible for many projects within the city,” sem says. “Our commitment is to the program as says Eric Tessem, Senior Vice President and Gen- a whole. We’re building and delivering something eral Manager of dck pacific’s Honolulu office. “We to be proud of.” bring an impressive resume to the table in every project that we’ve been involved in, as well as a When finished, the Information Technology Center sense of longevity and value-added expertise.” will boast impressive features that will be the result of strategic implementations by dck and other deWhen it comes to dck’s longevity and sustainable veloping interests. An 8,000 square-foot machine growth, the company can directly attribute its suc- room for servers, an emergency situation area to


When it comes to the university, we like to think that we’re helping to build a backbone for education. -Eric Tessem

support UH disaster response, help desk, meeting and training rooms with teleconferencing capability and technologically advanced workspace for ITC staff are just a few of the amenities that this building will have to offer students and staff. The building is also designed to support LEED Silver certification, which is considered rare for a building with a data center. This project has been no small feat for the university, as it has encountered an array of issues since its inception nearly a decade ago.

to get this building built. In short, one of the first challenges we were faced with is building a large structure in a tight area. To top it off, there’s another project that’s also underway nearby, so both projects were competing for access and space.” Aside from enviable skills on the jobsite itself, dck pacific is also able to showcase its unparalleled quest for quality and superiority in the boardroom. The university project is currently one of the largest developments taking place on the campus in Honolulu so the winning bid was testament to their management expertise as much as anything else.

“When it comes to the university, we like to think that we’re helping to build a backbone for educa- “This was a competitive project from the beginning,” tion,” Tessem says. “The Information Technology Tessem says. “It really shows that we are able to hold Center building has been in development for 10 or our own against other companies and deliver a high12 years, which is a long time for a project of this quality finished project, on time with a tight schednature. The main concerns with this project have ule. We’re proud to show that we can be affordable been a combination of funding, development and without compromising the integrity of a project.” entitlements.” From the moment that plans changed hands and Even with these initial problems the Information ground was first broken on the Information TechnolTechnology Center is still a project that comes bear- ogy Center, success was assured. Every step of the ing its own load of obstacles. For many companies, way since; including site demolition, clearing earththe challenge of building a six-story building amidst work, paving asphalt and concrete, establishing site a heavily populated college campus may seem utilities and landscaping, have all lent themselves to daunting, but dck is right at home. the company’s foremost theory: that a construction company can indeed be all things to all people. “We’re known for accomplishing big building projGPRM Prestress ects in smaller spaces because our flexibility and GPRM Prestress has been a team partner with DCK since 1999 in developing projects and supplying Architectural & Structural Precast maneuverability are second to none,” Tessem says. components of every imaginable size and type. The team spirit relationship has not only proved beneficial for our companies, but “This project is being developed on a very, very tight also for the owners who reap the benefits of innovative solutions and competitive budgets for their projects. worksite, meaning there’s not a lot of physical room

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property management

P209 MetCap Living

P220 LumaCorp

P211 Armadale Property Management

P223 Lee & Associates NYC

P214 Atlantis Realty Services P216 The Kislak Organization P218 Ontario Property Management Group

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P226 Cassidy Turley P228 Urban American Management


Going The Extra Mile

A full-service approach to real estate management

MetCap Living is a full-fledged leasing, financing Brockville, Etobicoke, Guelph, Kingston, Kitchener, and property management firm with significant Mississauga, Napanee, Oshawa, Windsor, Monmarket share in Toronto. We also have contracts treal and Trenton. We also have contracts to manto manage properties throughout Ontario, Que- age in Cornwall, Dartmouth, Dieppe, Fredericton, bec, Nova Scotia and New Brunswick. With its Halifax, Moncton, Point Claire and Saint Laurent. customer-centric approach and goal of ‘providing With over 25 years in the industry, MetCap has a great living experiences in friendly neighborhoods’, rich history and a wealth of experience that it offers the company has experienced consistent growth. its clients. It recently signed a three year contract to manage almost 2,200 units for Toronto Community Housing “Our number one priority is our reputation,” TsanCorporation. garis says. “There’s no question that MetCap is very highly respected, and we believe that our reputa“MetCap is a one-stop shop,” says John Tsangaris, tion carries us a long way. However, our reputation Vice President of Operations for MetCap Living. has to come with tangible services that we deliver.” “When you join us, we provide operational management, account management, leasing, collection In total, MetCap Living manages 159 multifamily and technical services. This is the company where properties across Canada and its portfolio is comyou can come to us and we will do exactly what prised of over 18,000 suites. The company’s size you’re asking for. We truly have a full-service ap- is certainly an advantage and affords economies proach.” of scale that result in savings passed on to clients. The company operates primarily in Toronto, but also “We are able to obtain bulk purchasing through the manages rental properties in Belleville, Brampton, sheer size of the company,” Tsangaris says. “The

MetCap Living Vice President of Operations John Tsangaris Location Toronto, Ontario

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long-term service providers that we use in the cases of suppliers and contractors guarantee us the best prices possible and the best quality work. Those are things that we do well and that we leverage.”

To turn these properties around required an infusion of about $5 million in funds into each apartment complex. Its team targeted renovations aimed at improving the overall marketability of units.

“We bought the buildings, and typical of the approach we usually take, we didn’t rush into them and start making renovations right away,” Tsangaris says. “We go in, plan it out, schedule it and look at the cost to renovate, the areas that need to be renovated, the areas that would need to be addressed on the leasing side and the risk manage“There is a lot of experience, background knowl- ment that goes with it. We take all of the informaedge and expertise within the company, so we tion that we gather and come up with a renovation don’t have to go to outside sources for a second master plan.” opinion or even a first opinion,” Tsangaris says. “We have in-house staff, whether it’s mechanical In just 12 months, the company managed to rent engineers, structural engineers or civil engineers, all of the vacant units in the new properties. Today who will provide a first assessment that the client these buildings continue to operate at full capacity. will rely on in order to make those difficult decisions like acquisitions or refinancing.” MetCap Living’s motto is “Make No Small Plans,” an ambition imparted by its founder Michael SIZE NO BARRIER O’Gallagher. Judging by the firm’s recent acquisiAlthough the company manages a large portfolio, it tions and continued success, the company’s team still manages to provide each and every client with is certainly holding true to its founder’s vision. personalized customer service. Its stated value is to ACE PAINTING Congratulations to Metcap on your continued success from all of us “go the extra mile” for all of its clients. The breadth of MetCap Living’s work means that many of the experts the company relies on operate in-house as full-time staff members. This provides strategic advantages to the firm and allows for greater collaboration internally.

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“The client is what drives the business, and there’s no question about it to us,” Tsangaris says. “We do have people stationed on the site who are the first contact. Any request that comes through goes to them, and they have 24 hours to investigate and 48 hours to address it. That’s the approach that we use in our day-to-day service.” In addition to embedded employees in MetCap Living facilities, all levels of the company are engaged in ensuring resident concerns are responded to and are swiftly resolved to their satisfaction. “If our residents are still not satisfied with a solution, the issue gets escalated to my level, the vice president of the company,” Tsangaris says. “After that, if there is no result, it will be escalated to the president, so we have the accessibility in place that allows us to resolve issues.” TURNAROUND EXPERTISE MetCap Living has made some significant investments in recent years. In 2009, the company and its partners acquired three large housing complexes that had units that were largely vacant. “The buildings were not in very good shape, and there was a vacancy rate there of about 65-70 percent,” Tsangaris says.

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Congratulations to Metcap Living on your continued success

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Expanding Its Scope Integrated operations and carefully managed growth remain critical A Toronto-area property management firm is ex- “We serve our customers, and our team is motivated panding its efforts across southwestern Ontario. to do exactly that,” says Liz Whitton, Senior PropWith an integrated business model, Armadale erty Manager at Armadale. “If the team can meet Property Management is steadily increasing its the tenants’ or clients’ needs, they are financially footprint in the region, and looks to an increased rewarded. There’s a direct correlation between involvement with the new Buttonville Airport proj- their performance and their reward.” ect in the near future. SUPERIOR STEWARDSHIP For the past 25 years, Armadale has offered prop- Armadale Property Management specializes in erty management services to the greater Toronto working with retail, office and industrial spaces. Its area. The firm also provides some development depth of local knowledge and industry expertise and project management services, allowing its means that it can offer customized solutions for team to deliver a holistic, integrated approach to properties, with an outstanding level of service. its clients. At the heart of the company’s success is a strong understanding and appreciation of its “We’re not competing with the high-end office buildclients’ and tenants’ needs. ings with big portfolios,” Whitton says. “We tend to

Armadale Property Management Senior Property Manager Liz Whitton Location Markham, Ontario

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We want to grow, and have a target of adding about 120,000 square feet per year. We want to be consistent and not overwhelming, because it’s very important that we maintain the service that we have established with our current landlords. Our growth has to be managed very carefully. -Liz Whitton

have more of the smaller properties, giving A-class service to B-type buildings. That’s unique; we don’t just turn the lights on and off.”

land, as well as 9 million square feet of built space. The Buttonville Airport project promises to provide great exposure for the firm. Armadale employees and community members alike are eagerly anticipating its completion.

While some property management companies might aspire to run only the newest and best buildings, Armadale prides itself on being the steward of build- “The development is going to impact that entire ings and landlords that can really use its support. area, and because we have expertise in that area, it will prove to be an advantage to us,” Whitton says. “We tend to focus on buildings that are a little aged “We are all very excited about it at Armadale.” and have some problems,” Whitton says. “We seem to be able to help turn them around to be When it comes to the firm’s growth strategy, the fumore profitable. That’s often done by serving our ture of Armadale lies in its integrated approach. By customers really well.” combining top-notch property management services with development and project management By taking buildings that may need some extra at- competencies, the company can advise its clients tention, the company has found a very profitable in a holistic way that few firms can offer. niche. Working with building owners to plan for the future of their properties is something Armadale “We do have one property management company has learned to do very effectively. that we’re looking at purchasing, but we’re looking at developing that third-party management com“Most companies don’t seem to like B-class build- pany where we will manage on behalf of other ownings because they can be problematic, but that’s ers,” Whitton says. what we’re really good at,” Whitton says. “We deal well with problems in older buildings, and work Another unique characteristic of Armadale is very closely with landlords to strategize for their the lack of internal divisions within the company. buildings. We look at it as an owner’s investment, Rather than various silos of different business and we try to get the most out of it.” disciplines, a spirit of collaboration and teamwork pervades within the firm in all aspects of its work. BUTTONVILLE AIRPORT Buttonville Airport Lands is a project currently in “Our niche is that we don’t have a leasing departpre-development, and is being handled primarily ment and an operations department, but all of us at this point by Cadillac Fairview, a national devel- work together,” says Whitton. “We tend to work opment firm. It will eventually include 170 acres of very holistically in buildings.”

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Overall, the company strives to maintain consistently great service to its existing customers, which it is not willing to sacrifice in the name of growth. “We want to grow, and have a target of adding about 120,000 square feet per year,” Whitton says. “We want to be consistent and not overwhelming, because it’s very important that we maintain the service that we have established with our current landlords. Our growth has to be managed very carefully.” Armadale Property Management has a roster of satisfied clients in the Toronto area, and is on track for significant future growth. With the Buttonville Airport Lands project at hand, the firm will receive a great deal of positive exposure throughout southwestern Ontario.

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Williamsburg

Atlantis Realty Services President Kelly Hourigan Location Toronto, Ontario

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Founded in 1999, Atlantis Realty Services is a full- “The roots of our company started out with a Swiss service, fully integrated real estate firm based in gentleman, Mr. Ruedi Kaeser who has been in Toronto, Ontario. The company offers a broad base Canada representing European investors for over of services, including property management, sales, 30 years and recently passed away.” Hourigan leasing, mortgage and financial services. says. “That was the main focus, and it has been the clientele that we’ve had from the beginning.” With its approach, Atlantis Realty Services is able to manage its clients’ properties with a holistic view Although a clear majority of its clients are Euroof their needs. pean, Atlantis is beginning to expand its footprint. In an ideal situation, the firm prefers to work with “What we do very well is that we manage our cli- clients that utilize several of its range of services in ents’ assets with close scrutiny from the top down order to achieve the best results. and operate the properties as if they were our own,” says Kelly Hourigan, President of Atlantis Realty “We have been maintaining our original focus, workServices. “It’s hands-on management from a broad ing for clients who are looking for a very specific range of personnel in the office.” type of property management company that handles absolutely every aspect of their property inThe firm prides itself in being somewhat selective vestments,” says Hourigan. “We also have a numof the clients with which it works. Its client base is ber of like-minded North American clients that are largely comprised of European investors in need also looking for the same type of management for of a firm to manage and oversee their Canadian their portfolios.” properties.


SUCCESSFUL APPROACH Atlantis Realty Services’ approach has proved successful for the firm. Its portfolio of managed properties across Canada is worth a total of an estimated $500 million, and its work spans all kinds of real estate, including industrial, commercial, retail, multi-residential and more. In total, Atlantis currently manages 75 properties, and while most are located in the greater Toronto area, there are also several in British Columbia and Alberta as well.

The firm also has another undertaking similar to the Burlington project in Georgetown. This project is currently in the predevelopment stages and is pending approval from government officials.

As in many places right now, the current real estate market in Toronto is difficult. Firms like Atlantis are encountering a shortage of properties available for purchase or management that offer a high level of value to buyers.

“We have been working with our architects on the layout of that property,” Hourigan says of the Georgetown planning. “It is a slightly different niche market than usual, which is more on the independent senior living side.”

In addition to the residential space at the retirement home, there will be four restaurants and space available for retail on the ground floor. These additions will add to the overall appeal of the Burlington property for senior residents.

“There is a short supply of good quality invest- Atlantis Realty Services is currently working with the city to attain approvals for the density of the ment properties on the market and there is a lot property and to get feedback on current plans. of competition for those few properties that are on the market from the real estate investment trusts, which also pushes down the returns on those prop- “It is a development that will be a spectacular building with views of the river,” Hourigan says. “We hope erties,” Hourigan says. to be in the ground by spring of next year.” To navigate this difficult climate for real estate, Atlantis Realty Services has begun to develop properties of its own to address the shortage of assets available.

Impark Impark operates parking facilities on behalf of property owners and asset managers under parking management agreements and through providing bankable leases. Impark has a reputation for offering superior service to its customers and clients and is well known for employing leading edge technology in parking solutions. Our approach is specific to each property and we are passionate about what we do.

“In order to come up with an investment that we can stand behind in the long run, we realized that we needed to get proactive,” Hourigan says. “The only way to get them is to develop them. We are looking more into developing the type of asset class that we want for our clients at what we think are reasonable returns.” RECENT DEVELOPMENTS One of the recent development projects Atlantis is pursuing is a luxury retirement home in Burlington. Construction on this 122-unit, high-end project is slated for completion in the summer of 2013. “We are under construction right now on that property, and it will be a retirement community that has a real emphasis on service. The management style on the retirement home is what will make us stand out from the rest,” Hourigan says. To achieve a world-class level of service at the Burlington facility, it is an all-in effort for the employees of Atlantis. “It will be hands-on management from all levels of personnel in our company, ensuring that the highest quality standards are given to the residents,” Hourigan says.

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Backyard Understanding Over a century of experience across the country

JasmineCreek Office

Montego

Building on its 106 years of experience, the Miami Lakes-based Kislak Organization invests in a variety of asset classes and industries, including real estate, financial services and tax certificates.

The Kislak Organization President & CEO Tom Bartelmo Location Miami Lakes, Florida

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cation and an area. We can go wherever we sense there’s an opportunity.”

STRONG KNOWLEDGE Kislak operates in and has a strong knowledge of “We have a long history through different cycles,” various markets throughout Florida, Bartelmo says. says Tom Bartelmo, Kislak President and CEO. “We have had deals in many of the major markets “We have an excellent track record of success, and here because Florida is really our backyard,” he even when we have stumbled, which many people says. “We understand the state, we understand the have in the past several years, we have had the markets well and we look for opportunities. It’s a ability to deal with issues and the resilience to growing state. People want to come here.” move forward.” The firm also successfully owns and operates Established in 1906, the organization invests on multifamily properties in other markets, including behalf of the Kislak family and its partners. The Tucson, Arizona; Las Vegas, Nevada; and Dallas, company currently owns and manages a multifam- Texas. ily portfolio of about 2,700 units. While not as large as the Phoenix area portfolio, “We are a family business with a significant amount Tucson has presented a number of opportunities of capital, so we are able to do things in a fash- for Kislak that other firms have missed. ion that others may not be able to,” Bartelmo says. “When you have family money you can go in any “Tucson is a little off the beaten path, so we were direction you see fit, as opposed to holding to a lo- able to find some opportunities out there,” Bar-


telmo says. “One of the family members lives out In 2009, Kislak launched its newest venture – inthere, so we have some good on-the-ground lo- vesting in tax lien certificates. The move has proven cal knowledge. It’s not a huge metropolis, but it’s highly successful. a million-person city and there are a few different facets of industry and job creation. Hopefully that “Given the current volatility in the stock market and population grows.” the projected yields of comparable investment alternatives, including certificates of deposit and In Las Vegas, the firm has experienced success, investment-grade bonds, it is clear tax certificates although the most recent economic downturn has offer a substantially better yield and represent a greatly impacted the area and presented chal- far more appealing investment,” Bartelmo says. lenges. By the end of 2012, Kislak’s tax certificate investments are expected to exceed $140 million. “Las Vegas is really interesting,” Bartelmo says. “Much like the people in the casinos, we’ve had the Throughout Kislak’s rich history, the firm has had highest highs and some of the lowest lows, and I many different types of experiences. As it moves think that’s just indicative of what that market has forward, Bartelmo hopes to continue to grow the been. It was one of the fastest growing markets and company. now they are still sitting at close to 13 percent unemployment. We rode the rise and had some good “We’ve been in banking, mortgage banking, real esquality deals, and now we’re dealing with a more tate ownership and brokerage, and now we do tax difficult environment there.” certificates,” he says. “We have been involved in a vast array of undertakings through the years. Our While the firm is often not the highest bidder when goals and aspirations are to take our current venacquiring properties, Kislak tries to find properties tures and grow them on an even larger scale.” that can benefit from its expertise. In the past, by NCM Demolition and Remediation, LP NCM (ncmgroup.com) is proud to have been selected by J.I. Kislak using its team’s skills and family capital, the firm Inc. (JIK) to provide select demolition and environmental services for has had success and has added value to properties their multi-family housing complex projects. As the nation’s leading provider of demolition and remediation services, we are committed overlooked by larger firms. to providing timely and world-class services to our valued customers. “There are so many deals that are floating around right now, and there are so many people that go after the deals, that we try to avoid just being another group putting a number out in the auction process,” Bartelmo says. “We’re always looking for something that, for whatever reason, might be a little bit below the masses’ radar screen where we might have some unique qualifications.”

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RICH HISTORY The ability to innovate and thrive is a hallmark of the Kislak Organization. A prime example is its New Jersey-based brokerage firm, which is the oldest part of the organization. “It was originally started by the father of our current patriarch,” Bartelmo says. “The business flowed from residential to commercial real estate sales, with a multifamily specialty. By most accounts, we are the largest broker of multifamily properties in and around New Jersey. We also work in Pennsylvania, New York and Delaware. This year, we are aiming to achieve half a billion in sales. We have 25 salespeople, a great support staff and an excellent reputation. While our primary focus is multifamily sales, we also handle retail, office and other commercial sales.”

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Enter The Game-Changer

Top-Quality property management for the Ontario region

Ontario Property Management Group (OPMG) is a third-party management company, administering properties for 32 clients with over 3,500 units that house approximately 8,000 residents. It was recently named one of the top 200 fastest growing companies in Canada. “It’s about the way that we treat our staff and the way we give back to the communities we manage,” says Kim B. Overbye, President/CEO of OPMG. “We also manage our growth. We don’t take on every opportunity that is presented to us. We only take on a project when we feel that we can do the best job for that project.”

Ontario Property Management Group President & CEO Kim B. Overbye Location Toronto, Ontario

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One characteristic that stands out with OPMG is the company’s resolute emphasis on quality control. It has made the investment to train supervisory senior team members to ensure the customer’s every specification is consistently met.

The company has had proven success in reducing vacancy rates, a source of concern for many property owners. “Most of our clients have come to us when they were having difficulty with respect to high vacancy loses and high operating and accumulating deficits,” Overbye says. When faced with a vacancy issue, OPMG has a tried and true system that it puts into action, starting with embedding employees at each underperforming property. “When it comes to the vacancy loss, we take a very aggressive approach, with onsite staff at the beginning of any new project whose sole task is to make sure that all of the vacant units are ready to be rented and that we have show units available,” Overbye says. “We do marketing and have an online presence, and do a number of web-based rental entities.”

“Our biggest strength is the quality control mechanisms that we have in place, particularly the amount of supervisory staff we have at a Internally, OPMG is able to leverage synergies senior level compared to our overall staff base,” between the properties it manages to minimize Overbye says. “We have the ability to supervise overall vacancy. and do quality control much more efficiently and effectively than most management companies. “We look at tenants who may be moving and see if That makes us better.” we can get them to move from one of our buildings


to another one of our buildings,” Overbye says. “Our internal processes are very good, and they have been getting much better over the years.” Another particular area of expertise for the firm is in strategizing on how to reduce operational deficits for its clients. By analyzing the owner’s approach as well as managerial practices, its team is able to formulate solutions that meet each property’s unique needs. “In terms of deficits, it always comes down to what we’re spending,” Overbye says. “We’ve got a fixed amount of product that is available, and so we have to watch our costs. Our task going into a project with high operating deficits is to look at every single expense that is incurred, why it’s incurred and determine the necessity and priority of it. We’ve got a great accounting and finance staff that really know what they’re doing when it comes to that.” CORPORATE CITIZEN Another quality that distinguishes OPMG among its peers is a steadfast commitment to community involvement. The company is an active supporter of several local charities and organizations.

environmentally friendly initiatives include utilizing water-conserving toilets, installing unobtrusive solar panels on roofs and making a public commitment to purchase 15 percent of its buildings’ energy supply from sustainable sources. “We’ve done retrofit on water-saving initiatives, whether it’s washers and dryers in the laundry rooms, showerheads or faucets,” Overbye says. “We have updated a lot of the furnaces and water tanks to be more efficient and more up-to-date. We’ve also done some air conditioning retrofits, where we’ve updated the equipment to make it more modern and energy efficient.” With its environmental emphasis and deep sense of corporate citizenship, OPMG is truly a gamechanger in the communities in which it works. The firm’s proven results in reducing vacancy and deficits indicate a future with many more years of continued success.

Costa Construction Costa Construction is a residential and commercial general contractor company established in April of 2001, working in the GTA. We have an extensive knowledge and experience in different areas of property management. Our area of expertise includes, but is not limited to the following: painting, ceramic and hardwood floors, decks and fences, refinish bathtub, carpet installation.

“Community involvement is important to us because we’re not just in business to make money, but also to make a difference,” Overbye says. “Ten percent of our profit every year is reinvested into the communities we manage, whether it’s through student summer programs, homework clubs, the celebration of milestones for a particular building or a celebration for the oldest tenant that we have.” In addition to these efforts, the firm also runs ‘The Spirit of the North Café Breakfast Club’, which provides breakfast and bagged lunch meals to about 30 young children on a daily basis. It also plays a major role in the Co-operative Housing Federation of Toronto’s Diversity Scholarship program. “Clean, safe and affordable housing starts with communities that are involved. Management companies that show a commitment to those communities will ultimately mean that they have safer and better-managed communities, as well as all-around happier communities,” Overbye says. “It’s also a good way to show younger people that charity and giving should be a lifelong process not just by individuals, but also by businesses.” Beyond its community service, OPMG demonstrates its corporate citizenship through “green” practices at its properties. Some of its FALL 2012 | DDC JOURNAL

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Indian Creek

Taking Responsibility Real estate strategies for the long term

LumaCorp Principal Richard Kelly Location Dallas, Texas

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LumaCorp Inc. is more than just an apartment man- the challenging market because of what its team ager. It’s a company that renovates with an owner’s has learned along the way. viewpoint. Through the eyes of an owner, the company, based in the Dallas-Fort Worth area, finds that “Texas has held up better than most markets, and it can obtain the most success acquiring properties multifamily housing holds up better than other that will last and result in profits for the long term. property types,” Kelly says. “We have found it difficult to find properties to buy that would make a “We take an owner’s viewpoint and long-term view, profit over the past few years.” and apply that outlook to maximize the long-term value of the property;” says Richard Kelly, Principal TEAM QUALITY of LumaCorp Inc. “We look for flexibility to exit and Even in a slow market, Kelly links success with the peoa longer-term hold perspective.” ple that work for LumaCorp. The company’s primary task is to find qualified people with the same goals and This view on the market is what sets LumaCorp apart perspective around which LumaCorp has been built. from other companies in the industry. Because it typically plans to hold on to a property and manage “The biggest challenge is always finding qualified it, the firm puts forth a great deal of dedication to people,” says Kelly. “People are always your greateach investment, as its team knows that the proper- est assets.” ty will be a part of its portfolio for a long time to come. LumaCorp focuses on training each employee to Currently with 4,800 units in its lineup, LumaCorp maximize efficiency and uses mission-focused has accrued a total insured value of $325 million. guides to direct all staff. Many members of its staff It hopes to reach more units in the coming years to have won awards for their exceptional performance keep pace with the growth of the firm overall. in the field and knowledge of the real estate industry. Dealing with the current economy, it has been difficult to generate growth, but LumaCorp is thankful for the steady market in Texas and the strong industry surrounding it. The company’s 75 years of experience has also given it the ability to combat

The skill and expertise of the LumaCorp staff also allows the firm to quickly address challenges, as was the case with one of its recent projects; Bardin Oaks. The property, located in Arlington, Texas, was a low-income property that needed a major overhaul inside and out.


Courtyard exterior

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With low-income restrictions on the property, LumaCorp needed to display great flexibility with all parties to keep the deal under contract. Now, the firm looks to manage a large $6,000/unit renovation and upgrade. “Challenges came when other people were looking at the property as well, and the process of making a deal became hard,” Kelly says. “We had to be patient and analyze the best options at the time, both financially and strategically.” Being patient paid off for LumaCorp, as the project is currently underway and expected to be completed within the year. EXPERTISE THROUGH EXPERIENCE Above all else, LumaCorp looks to one major aspect before a decision is made to purchase a property: location. According to Kelly, this is the biggest selling point to consumers, with available amenities coming in a close second. “The location has to work,” says Kelly. “You can fix a property, but you can’t fix a location.” Since 1984, LumaCorp has served the industry as an apartment manager throughout the Dallas-Fort Worth Metroplex. The company’s success along the way has gained it respect and attention through awards due to its achievements with its properties. LumaCorp’s strong foothold in Texas has given it the experience and capacity needed to handle the changing real estate market. The company has financed, renovated and managed a wide array of properties, including condominiums, apartment communities and more. “With a lot of history under our belt, we look to participate in the management and renovation market in Texas and surrounding states,” says Kelly. “Exciting projects are coming up, which will lead to a growth in equity, our portfolio and our company.” In the future, LumaCorp is also considering looking at the opportunity to begin ground-up construction for apartments. This completely new venture will lead the company on an entirely different path and will expand its range of possible projects. superior striping service inc. Every beautifully maintained LumaCorp property has an amazing staff that has been a pleasure to work with over the years. Congratulations, LumaCorp, for your achievements in the industry, and for setting and upholding such high standards. It is an honor to be your associate!

H2o Plumbing LumaCorp Inc. and H2o Plumbing have been in a business partnership since 1997. H2o has helped with emergency and routine plumbing, boiler, and HVAC problems. H2o has also assisted LumaCorp with due diligence during the acquisition phase of a new property. H2o and LumaCorp have partnered in lowering capital and operating expenses by initializing water and gas conservation efforts.

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96 Fulton

When Opportunity Knocks In New York…anything is possible for James Wacht

648 Broadway

There probably isn’t any place on this planet more competitive in the commercial real estate market than New York City. So why in the world would a couple of guys from a boutique brokerage firm want to partner with a California-based company and open a new CRE office in the heart of NYC? Crazy? Maybe for the average Joe, but not for James Wacht, President of Lee & Associates NYC Inc., who, with partner Peter Braus, merged their property management and retail leasing brokerage company Sierra Realty Corp. “Even though they had 46 offices around the country with over 700 brokers, Lee & Associates wasn’t exactly a household name in New York,” said Wacht. “But when the opportunity to become a Lee affiliate was presented to us we saw it as the perfect opportunity for us to grow our office leasing brokerage business. It was the one aspect of our

business that was lacking. We are very opportunistic as a company and this was the perfect opportunity for us to fill that void.” A DIFFERENT COMPANY CULTURE It’s not unusual for brokerage firms to foster an atmosphere of secrecy where each broker views the other as a potential competitor. Wacht continues, “We have always been a very entrepreneurial company that values resourcefulness, intelligent risktaking and creative thinking. In aligning ourselves with Lee we have found a partner that embraces the same values.” In addition, the brokers in all Lee offices have the opportunity to invest and become principals in their own and each of the other Lee offices around the country. This business model encourages the brokers to work with and to refer business to each other.

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We want to maintain this momentum. We provide exceptional, quality work to our clients. But it always begins with your people. If you hire and motivate great people, the business will follow. -James Wacht

But it doesn’t stop there: when Lee NYC moved into its new offices on Madison Avenue in April, Wacht helped project his perception of what the workplace should be through the office design. Instead of row after row of cold, sterile cubicles, Wacht created a “collaborative work area” which provides a comfortable zone with tables, chairs, couches and sofas for people to engage in informal conversations and meetings. “Since we’ve moved in, more and more people have been utilizing this area to discuss ideas and exchange information. It is now fondly referred to as the ‘living room.’ It’s not just the brokers, but it’s also the brokers talking to the property managers and the construction people. They learn how to utilize everybody as a resource.” TAKING A BITE FROM THE BIG APPLE With a population of more than 8.3 million, an inventory of over 400 million square feet of office space and 105 million square feet of retail space, the Manhattan commercial real estate market is by far the largest in the country. In addition, it has weathered the recent economic downturn far better than any other large metropolitan area. So it was understandable why Lee & Associates corporate had targeted the Big Apple as one of the most important markets in which to establish a significant presence. “The creation of Lee & Associates NYC couldn’t have come at a more perfect time,” said Edward J. Indvik, CEO of Lee & Associates. “As the largest regional economy in the U.S., New York City has unlimited potential. New York’s large and growing population and the magnitude of its economic activity translate into unequalled real estate activity. Not only did this move strengthen Lee & Associates’ national presence, it gave us a premier local office in one of the country’s most vital commercial real estate markets.”

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Sierra Realty, which caught the eye of Lee corporate, was founded in 1953, primarily as a property investment and management company. Wacht joined the company in 1989 and became its principal owner in 2000. Braus joined the company in 2001 after having worked as a retail leasing broker with New Spectrum Realty Services and Newmark Knight Frank. They then embarked on an ambitious plan to grow all facets of Sierra’s business. By 2011 Sierra, had grown into one of New York’s most well respected property management and retail leasing brokerage firms with over 50 properties under management and 10 brokers/salespersons specializing in retail leasing brokerage. NEXT UP This past May, after creating a specialty brokerage practice focusing on healthcare/senior housing in the New York office, Wacht started plans to roll out this service on a national basis over the coming months. “We have hired two very experienced brokers from JLL who specialize in this area and we are completing our business plan for national rollout. We expect this to be approved by Lee & Associate national shortly, once that occurs we will hit the ground running,” he said. In addition, Lee NYC remains committed to new acquisitions. “We recently acquired several apartment buildings in the Bronx, and participated as investors in the acquisition in two Class A office buildings in a Chicago suburb, a mixed-use fivestar hotel/ultra luxury condominium development in Midtown Manhattan, a 600,000 square-foot former Pfizer plant in Brooklyn and an industrial property in a Chicago suburb. And, as is our business model we have given all our brokers the opportunity to participate as investors in these deals. There’s nothing like a little equity to pay your bills when you retire,” exclaims Wacht.


Lastly, and probably the ultimate litmus test of Wacht’s approval by the board and presidents of Lee & Associates, was an invitation to join the expansion committee for Lee & Associates national. His primary purpose will be to help the firm expand into new markets such as Boston, Baltimore, Philadelphia and Washington DC. “I was honored that the presidents and board have faith in my judgment and experience. And I can’t wait to roll up the sleeves.” he said. MULTI-FACETED PRACTICE The diverse practices offered by Lee NYC and Sierra Realty allow them to provide a full range of services to their customers. A recent project exemplifies the benefits of this multifaceted platform. Scheduled for completion at the end of the summer, Lee and Associates NYC/Sierra Realty assisting the owner of a former office building, known as Fulton Crossing, into a new facility for the dance program of Pace College at 140 William Street in New York. “We were first hired by the owner to find an investment property for him to purchase,” Wacht explains. “He was very specific in what he was looking for; a commercial property that had a significant value add component. One of our brokers identified a property for him in the financial district and assisted him with the negotiations that eventually led to his acquisition of 140 William Street.” The property had been vacant for several years and had been owner occupied for several decades before that. Substantial work to the property was necessary to bring it up to the rentable condition. The owner hired Sierra to provide the necessary construction management services and also retained Sierra (this transaction occurred as the merger with Lee was being finalized) to provide leasing brokerage services and locate one or more tenants to occupy the property. Like all great businessmen, Wacht is always looking at ways to improve. Specifically, he’s expecting to see more acquisitions, particularly in office buildings, coming down the pike in the near future. But underlining it all is the importance of the people in the office. “We want to maintain this momentum,” he says. “We provide exceptional, quality work to our clients. But it always begins with your people. If you hire and motivate great people, the business will follow.”

York International As a leader in the industry, York International will help to guide you through the risk management process. Our goal is to protect your assets and work as an outsourced risk manager for your business year after year, through the changing landscape of the tri-state region’s real estate market.

C

ongratulations to Jim Wacht, Peter Braus, and all the team members of Lee & Associates for the well-deserved honor of “Feature Article of the Month!”

BASS & LEMER LLP

CERTIFIED PUBLIC ACCOUNTANTS

Attentive . Effective . Professional Proud to provide accounting services to Lee & Associates NYC, LLC and its affiliates For more information, please contact: Gary Adler, CPA Email: adler@basslemer.com Tel: 516-485-9600 or 212-944-1500 www.bassandlemer.com

York International’s Real Estate Focus Led by

Barbara Strauss York International Agency has an extensive list of Real Estate clients dating back to the agency’s inception. This focus requires that our professionals in the Real Estate Group offer impeccable service, experience, and intuitive understanding of our client’s needs honed over a 40 year period. Our insurance carrier partners specialize in insuring property in all asset classes and have a proven track record in both underwriting and claims processing. FALL 2012 | DDC JOURNAL

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square feet for corporate, institutional and private clients. Over the years, the commercial real estate services firm has received numerous awards and recognitions. “Our company recognizes how important these are, but it’s not the thing that drives us,” Grillo says. “We are more about how we can perform better for our clients. The culture of the company is to support everyone wholeheartedly. Employee performance drives this company, and creativity in developing solutions for clients drives our property management team.

With a reputation for delivering superior results for clients, Cassidy Turley offers integrated and tailored commercial real estate services that showcase its creativity, cost-effectiveness and responsiveness to client needs.

Cassidy Turley Senior Managing Director Bill Grillo Location Washington, D.C.

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Cassidy Turley was Washington, D.C.’s top office investment sales firm for the first half of 2011, according to Real Estate Alert., and the Washington Business Journal regularly recognizes Cassidy Turley as a “Best Place to Work.” Additionally, Cassidy Turley is acknowledged as an industry leader in sustainability practices and commitment to programs such as Energy Star and the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) program.

“We are very flexible in terms of how we approach our clients’ management-service needs,” says Bill Grillo, Senior Managing Director for Cassidy Turley. “The feedback we receive from our clients affirms that we “Our group here in the Mid-Atlantic is particularly have the ability to provide great service, as we are driven when it comes to achieving LEED designimble and offer established protocols for how we nations,” Grillo says. “It’s important for them to perform management tasks. We can easily accom- achieve the LEED-AP designation, and it’s also immodate their particular reporting requirements.” portant for them to gain the knowledge that comes with it. These are goals that help us to challenge Cassidy Turley has more than 60 offices across each other to be better at what we do.” the country and manages more than 455 million


The fact that Cassidy Turley has found success with a variety of clients also reinforces its solid reputation. “Due to our continuing growth, we have become a top choice in the industry,” he says. “It’s important for clients to have capable alternatives to choose from.” Cassidy Turley can cite other examples of success within the Washington, D.C., market, particularly the re-win of the iconic Market Square building on Pennsylvania Avenue. After managing the property for five years for Beacon Capital Partners, the firm was asked to remain in the capacity of Leasing and Property Manager for its new owner, Wells REIT II, when the property sold in 2011. “While Wells typically self-manages, we were absolutely thrilled that they asked us to remain with the property,” Grillo says. We view this as a real testament to the level of service that our team delivers.” As Cassidy Turley looks to the future, the company hopes to continue its growth and build on the relationships it has with clients. Above all, Grillo says the company will continue to push itself to find the best new ways of managing properties and delivering excellent service to its tenants and clients.

ABM congratulates Cassidy Turley for their continued success and is proud of the long term partnership

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Delivering Well-Being

Improving buildings with a keen eye and a hands-on approach

Founded in 1997, Urban American Management is a full-service apartment owner and operator in West New York, New Jersey. With a reputation for hands-on, tenants-first approach, the firm has delivered consistently good returns on investment for its clients by strategically sourcing materials and maintaining a high level of internal efficiency.

Urban American Management Principals Josh and James Eisenberg Location West New York, New Jersey

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The growing company now renovates approximately 700 apartments per year for its clients, but approaches this work differently than most in its industry. Rather than simply completing an order, its team takes a holistic view of how improvements to a property can impact the quality of life for tenants. Brothers Josh and James Eisenberg are principals of the company that was founded by their father. “Most of our competitors in the market we’re in tend to focus only on the apartment in terms of renovations and increasing rents, as opposed

to increasing the entire quality of life within the building itself,” says Josh Eisenberg. Keeping their residents in mind is key to Urban American Management’s strategy and the ultimate success of their projects. “We take a holistic approach with the buildings that we own and manage in terms of delivering the types of services to a traditionally underserved market,” says James Eisenberg. “We do that rather smartly and invest with a return-minded philosophy that looks not only at the return on costs, but also the benefits to our tenants.” UNIQUE STYLE Urban American Management’s unique style is to embed itself deeply in its projects from the very start. Its team unites conceptual work with site visits, meeting the tenants and getting to know the area before mapping out a new project.


170 North 5th

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We take a holistic approach with the buildings that we own and manage in terms of delivering the types of services to a traditionally underserved market. -James Eisenberg

“We are on the properties every day,” Josh says. “In this particular business and in the buildings that we serve, you need to be there every day with a handson approach. You need to pay attention to what’s going on in these buildings and who your residents are. Otherwise, you cannot be successful.”

Urban American Management also built a new ceiling in the lobby that absorbs most of the sound generated in the area, preventing it from reaching other parts of the building, especially the living units. This has had a major impact on the overall environment of the building.

At every site in which it works, Urban American “When you enter the building, the noise isn’t as Management often targets the common areas jarring as it used to be,” Josh says. “It’s a much for improvement first. Because these are mostly quieter, more comfortable feel. We also have the shared spaces, they are important to maintain but intention to carry that noise control down through are also among the busiest areas of the building, both sides of the tenant concourse as you enter causing them to wear down more quickly. each of the elevator vestibules.” “In all of the buildings that we own and manage, we upgrade the common areas,” James says. “The upkeep of these areas is really important, and we make sure that we immediately go in and plaster or repair common areas or stairwells if something gets damaged. We believe that the common areas of a building are not just shared space, but also part of the living environment of tenants.” A major project for the firm at the moment is a lobby redesign at the 3333 Broadway apartment complex in New York City. As a highly trafficked area, the lobby had a significant impact on the impression of residents and the overall look of the building. “We first wanted to bring more light into the lobby and add a greater degree of finish so that folks coming in and out of the building understood that this was a new building and that it was under a different management style,” Josh Eisenberg stated. The lobby at 3333 Broadway was also essential to showcasing the building to future residents. As the first point of contact, it offers guests a good first impression. “We started by brightening the floors, and narrowed the columns and pipe chases that existed in the lobby so that there was a wider, more open feel to it,” Josh says. “We also brought some of the light from the courtyard back into the lobby so that it had a warmer feel during the day.”

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In addition to the high-profile lobby renovation, Urban American Management is garnering attention for its efforts in furthering sustainable development. The firm began with simple things like using energy efficient lighting, but has also taking on larger initiatives, such as retrofitting several of the biggest apartment buildings in New York City. “[We are] designing a co-generation plant for one of our largest buildings on Roosevelt Island,” Josh says. “We’ve done hallway relighting, air sealing within apartments, boiler upgrades, window jobs, occupancy lighting with sensors and things of that nature. Now, we are looking at much deeper energy retrofit measures that achieve even better energy efficiency within a building.” By continuing to emphasize the ultimate wellbeing of its tenants, Urban American Management is truly addressing the most pressing issues at its properties. This not only keeps buildings in the best condition possible, but also enhances the lives of the people who live in them. Kitchen Expo Kitchen Expo has been very fortunate to work with Urban American Management for the past 15 years. They are a large and successful family-run enterprise that treats its vendors like family – something refreshing and welcome in today’s business world. Our relationship began with Kitchen Expo providing one kitchen renovation at a time – evolving into approximately 800 renovations annually. Kitchen Expo has provided kitchen renovations and project management for a wide array of residential projects for Urban American Management – from small efficiency units to high end, multi-million dollar condo conversion units. From kitchen cabinetry of every style and price point to countertops ranging from laminate to granite, Kitchen Expo prides itself on delivering what builders demand – on-time and on-budget. We appreciate the opportunity that Urban American Management has provided us and we look forward to continuing our mutually beneficial relationship.


KITCHEN EXPO SALUTES

URBAN AMERICAN MANAGEMENT AND IS PROUD TO BE T H E I R PA R T N E R I N

New Jersey’s most trusted name in kitchens is making its mark on New York.

KITCHEN RENOVATIONS.

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Industry professionals and consumers go to Kitchen Expo for the best value in kitchens Whether your project is a single townhouse, a high-rise condo development or an apartment building refurbishment, our staff of kitchen professionals have the experience and expertise you need to get the job done. On time. And on budget. Our vast selection of today’s top brands in the latest styles and finishes ensures you of a beautiful result – and a solid investment. Let Kitchen Expo help you make your mark on New York. Contact our CEO, Brian Gordon, at 732-650-9700 ext. 520.

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For many disadvantaged, working and lower income families, homeownership is out of reach. The benefit of affordable housing is in its ability to enable families to have the opportunity to live in communities close to work, education, and affordable transportation, while making provision for those most at-risk in our society. Is it any wonder then; that the question of an affordable housing provision exists as one of our greatest challenges to our ongoing socioeconomic stability? Affordable Housing News (AHN) is a key player in the delivery of information for this vitally important industry sector covering the provision and implementation of affordable housing options across the United States of America. We strive to serve as a vital resource tool in spreading news of current developments and good works undertaken in this sector. For both investors and operators, we educate, inform and provide guidelines about strategy and regulation in the affordable housing industry. Our readers include the industry’s most well known managers, owners, contractors, lenders and industry stakeholders. Through in-depth interviews, case studies and strategic leadership spotlights, AHN recognizes those who epitomize the best in affordable housing.

Su b s cr ib e here: ww w.affordablehousingnew s.c om

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ad index FA L L 2 0 1 2

227 169 87 122 31 175 45 76 76 104 157 60 201 225 191 144 99 16 151 29 167 213 219 57 205 33 55 191 135 107 125 92 165 153 183 11 45 119 191 171 115 13 207 222 101 67 131 21 215 43 26 160 73 139 231 63 122 122

ABM Janitorial Services Ace Painting & Decorating Acorn Associates Architecture, Ltd. Acorn Wood Design Ltd. Active Roofing Co., Inc. All South Electric Alto Construction Limited Ames Construction, Inc. Anderado Construction Corp. Arctic Painting Ltd. Bank of America Bank of North Carolina Banker Steel Company Bass & Lemer LLP Bock & Clark CAHEC CC Design Chemithon City Real Estate Advisors Clune Construction Co. Columbia Engineering, Inc. Complete Interior Finishes Costa Construction Crane Pest Control Cube 3 Studio LLC Cushman & Wakefield / North Marq D&D Commercial Real Estate Dimit Architects LLC Direct Energy Dunston Construction East Boston Savings Bank EBC, Inc. EG Stoltzfus Construction, LLC ENC Testing Inc. Energy One Heating & Cooling EPSA-LABCO, Ingenieros Consultores, S.A. Eton-West Construction Fleetwood Group, Inc. Forest City Capital Corporation Fred Burrows Trucking & Excavating LLC FTK Construction Services GEOCIVIL, S. A. GPRM Prestress H2O Plumbing and Hot Water Systems Hamilton Land Development, Inc. Hatch Mott MacDonald Health Connect Properties, Inc. Helix Electric Inc. Imperial Parking Canada Corporation Island West Coast Developments Ltd. ITW Building Components Group J.H.Rust Architect Inc. J.L. Patterson & Associates, Inc. K2 Stone Quarries Kitchen Expo KLH Engineers, PSC Lafarge Lakeview Power Systems Inc.

abm.com acepainting.ca acornarchitecture.com acornwd.com activeroofing.com allsouthelectric.com

91 85 160 25 163 177 19 amesco.com 147 217 39 bankofamerica.com 149 bncbanks.com 113 bankersteel.com 53 bassandlemer.com 213 bockandclark.com 111 cahec.com 187 196 chemithon.com 67 cityrealestateadvisros.com 49 clunegc.com 160 columbiaengineering.com 35 135 costaconstruction.ca 129 cranepestcontrol.com 203 cube3studio.com 95 cushwakenm.com 51 ddcre.com 213 dimitarchitects.com 129 directenergy.com 183 70 ebsb.com 173 ebcinc.qc.ca 137 egstoltzfus.com 169 enctesting.com 107 energy1heating.com 97 epsalabco.com 70 eton-west.com 67 fleetwoodfurniture.com 47 forestcity.net 83 fredburrows.com 188 ftkconstructionservices.com 188 geocivil.net 109 gprmp.com 222 h20plumbing.us 127 180 hatchmott.com 104 healthconnectproperties.com 15 helixelectric.com 80 impark.com 191 islandwestcoastdevelopments.com 45 itwinstinct.com 104 jhrust-architect.com 76 jlpatterson.com 67 k2stone.ca 16 go2kitchenexpo.com 144 klhengrs.com 83 lafarge.com 225 lakeviewpowersystems.com

Malfar Mechanical, Inc. Marks Paneth & Shron LLP Martinway Contracting Masonite International McCormack Baron Salazar Inc. McKean & Associates, Architects, LLC Merriman Associates Architects, Inc. Mesner Development Company NCM Demolition and Remediation LP Neace Lukens Nelson & Small, Inc. Nickolas Savko & Sons, Inc. O2 Facilities Management Oakridge Millwork Ltd. Oasis Fire Protection Ohio Capital Corporation for Housing Paric Corporation Patching Associates Phoenix Design One PM Architecture PC Premier Design + Build Group, LLC Prime Mechanical Inc. Priority Sign Purdy-McGuire, Inc. Qk4 Quattlebaum, Grooms, Tull and Burrow Roadside Paving Ltd. Robins & Morton Roman Plumbing Rudolph & Sletten San Francisco Fire Protection Sherwin-Williams Shutts & Bowen LLP Sirote & Permutt, PC SK&I Architectural Design Group, LLC Skidmore Owings Merrill SNC Lavalin Society of Environmentally Responsible Facilities Spancrete Star Title Agency LLC / Saad & Saad LLP Stemen Mertens Stickler CPAs & Associates Structural Construction Inc. Superior Striping Service, Inc. The Burell Group, P.C. The Law Offices of Ryan J Walsh The Restoration Group ThyssenKrupp Polysius Underwriters Group United Agencies Insurance Group Urban Design Group Architects Ltd. Viana Roofing Vine Laboratories Inc. Volker Stevin Canada W. W. Grainger, Inc. Wallace + Perdomo, Inc. Wisconsin Housing & Economic Development Auth. York International Agency, LLC

malfar.ca markspaneth.com martinwaycontracting.com masonite.com mccormackbaron.com merrimanassociates.com mesnerdevelopment.com ncmgroup.com neacelukens.com nelsonsmall.com nicksavko.com o2facilities.com oakridgekitchens.ca occh.org paric.com patchingassociates.com p-d-o.com pmarchitecture.com pdbgroup.com primemech.ca prioritysign.com purdy-mcguire.com qk4.com qgtb.com roadsidepaving.ca robinsmorton.com rsconstruction.com sffireprotectionc.com sherwin-williams.com shutts.com sirote.com skiarch.com som.com snclavalin.com serfgreen.org spancrete.com saad-startitle.com sms-cpas.com superiorstriping.com theburellgroup.com rjwesquire.com therestorationgroup.ca polysiususa.com uscky.com unitedagencies.net udga.com vianaroofing.com vinelaboratories.com volkerstevin.ca wallace-perdomo.com wheda.com yorkintl.com

The Ad Index is provided as a courtesy to DDC Journal advertisers. The publisher assumes no responsibility for errors or omissions.

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design highlight Galaxy SOHO Beijing, China

architect Zaha Hadid Architects

The Galaxy Soho project by Zaha Hadid Architects in central Beijing is a 330,000 m² office, retail and entertainment complex that will become an integral part of the living city, inspired by the grand scale of Beijing itself. Its architecture is a composition of five continuous, flowing volumes that are set apart, fused or linked by stretched bridges. These volumes adapt to each other in all directions, generating a panoramic architecture without corners or abrupt transitions that break the fluidity of its formal composition. With its sculpted gardens and walkways, the project carries hints of the dynamism and diagrammatic overlay of forms from Hadid’s “Ubiquitous Urbanism” folio.

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Real estate capabilities you can count on. Achieve your goals with a bank that understands them. Bank of America earns its reputation by supporting real estate companies like yours. We offer you the professional expertise of a dedicated client manager who understands the nuances of your business and recommends products and services suited to your unique needs. From affordable housing strategies to capital raising and advisory services, you can count on us to help you succeed. Learn more about our real estate capabilities at bankofamerica.com/commercialre or contact Thomas Bobak at 1.612.337.9864.

Company Title Name bankofamerica.com/commercialre

Bank of America, N.A. Member FDIC. Equal Housing Lender

Location O . Š2008 Bank of America Corporation.

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We Create. We Inspire. We Connect. We Care.

Company Title Name Location O

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HELLMUTH, OBATA + KASSABAUM, PC Architecture, Planning, Interiors, Graphics Washington, DC | 202.339.8700 www.hok.com

DDC JOURNAL | FALL 2012

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Fall 2012 Issue

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