Sept. 9, 2016 UBJ

SEPTEMBER 9, 2016 | VOL. 5 ISSUE 37

REIT expert and former developer Brad Thomas tries to divine

Donald Trump's net worth

09.09.2016

|

upstatebusinessjournal.com

TOP-OF-MIND AND IN THE MIX THIS WEEK

| THE RUNDOWN | 3

VOLUME 5, ISSUE 37 Featured this issue: GSP tops 1 million passenger mark.....................................................................................9 Co-work space planned for Brandon Mill....................................................................10 M&A mid-year update..............................................................................................................16

Construction continues on the Grand Hall, between concourses A and B at Greenville Spartanburg International Airport. GSP announced last week that its annual number of departures broke the 1 million mark in May, the first time in the airport’s history. Read more on page 9.

WORTH REPEATING “Downtown Greenville is so great. But this gives residents another option when they don’t want to have to go downtown.”

Page 4

“My Northern friends don’t like it when I say this, but I think the Southeast is the hub of the relevant automotive industry in the U.S.” Page 6

“Those were the days. It was a lot easier to get deals done.

You’d literally drive to a little town like a Union or Walterboro, find Walmart, find the outparcel for $100,000, throw up an Advance Auto [Parts] and sell it and go on to the next one.”

Page 12

VERBATIM

On Greenville’s radical reinvention “The old meeting the new; a start-up energy overlaid with gentle Southern hospitality; a small gem you want to tell your friends about.

As the locals put it: Yeah, that Greenville.”

Travel + Leisure, “The Radical Reinvention of Greenville, South Carolina” – travelandleisure.com/ culture-design/greenville-southcarolina

4 | RESTAURANTS |

UBJ

INFORMATION YOU WANT TO KNOW

|

09.09.2016

PROJECT PARTNERS Architect: McMillan Pazdan Smith, Greenville General contractor: Mitchell Contract Interiors, Greenville Interior design: Betsy Berry Interiors, Charleston

Stella’s Southern Brasserie, Parkside Provisions and Café will open in Verdae’s Legacy Square on Feb. 1, 2017. (Rendering courtesy of McMillan Pazdan Smith)

Jason and Julia Scholz, co-owners of Stella’s Southern Bistro in Simpsonville, are opening a new restaurant in the Verdae community.

Stella’s expands to Verdae, with eye on February opening SHERRY JACKSON | CONTRIBUTOR

Tucked away in a nondescript shopping center in the far southern reach of Simpsonville, Stella’s Southern Bistro has been dishing out local, upscale cuisine since 2008, when restaurant industry veterans Jason and Julia Scholz relocated to the Upstate.

Meanwhile in Greenville, the master-planned community of Verdae had been working for a while on attracting a restaurant for its centrally located Legacy Square retail town center.

Now, the two have come together.

The result of what might be a perfect business marriage – Stella’s Southern Brasserie, Parkside Provisions and Café at Verdae – is planning to open in February 2017.

“It’s no secret that residents of the Hollingsworth Park community have been waiting for this highly anticipated announcement,” said Rick Sumerel, president and COO of Verdae Development. “Their enthusiasm and patience is about to be significantly rewarded. Jason and Julia have been exceptional to work with during the entire planning process, and their

commitment to deliver quality – coupled with their desire to be an integral part of the community – will be a home run for everyone involved.”

“We were looking for creative ways to grow our business and had come across good opportunities, but none that were great,” said Jason. “This one was great.”

“This gives us the chance to spread our wings and build a restaurant from scratch,” said Julia. “It gives us a chance to be more of a regular dining option for people in Greenville. Downtown Greenville is so great. But this gives residents another option when they don’t want to have to go downtown.”

Being directly across from the widely used Legacy Park, near the Hollingsworth Park neighborhood and other neighborhoods such as Gower Park, Parkins Mill and others, made this a great central location, said Julia.

“There’s not a lot of upscale dining options nearby.”

While the restaurateurs’ philosophy of working with local purveyors and artisans won’t change, the menu and food offerings will be different, said Jason, an executive chef who had

opened High Cotton Restaurant in Charleston in 1999 and later relocated to Greenville to open the High Cotton downtown as the executive chef.

Expect to see items such as steak frites, braised mussels and a large selection of small plates, all with a “Southern twist,” said Julia. The new restaurant will have a friendly, comfortable bar with hand-crafted cocktails

“We were looking for creative ways to grow our business and had come across good opportunities, but none that were great. This one was great.”

Jason Scholz, co-owner of Stella’s Southern Bistro

and a full wine list. A communal table will be available for patrons to enjoy “community food that can be shared amongst groups.”

In the Parkside Provisions and Café section, the Scholzes plan to offer a variety of grab-and-go “artisan food items,” as well as a robust coffee selection.

Stella’s Southern Brasserie, Parkside Provisions and Café will have a large private dining room that will open to a sizable patio overlooking Legacy Park.

The private dining room will be able to accommodate wedding receptions and other special events, said Jason.

The restaurant name has a French flair and the décor will be classic brassiere, said Julia. Open ceilings, tile and wood floors will give the space a “warm, open feeling while trying to bring in natural elements with lots of natural light.”

Patrons of Stella’s in Simpsonville need not fear – it’s not going anywhere, said the Scholzes, who are dedicated to the city. In fact, earlier this year the restaurateurs purchased the Simpsonville building.

“Stella’s Southern Brasserie, Parkside

09.09.2016

|

upstatebusinessjournal.com

INFORMATION YOU WANT TO KNOW

We’re ‘All In’ with Blue Ridge Security

Legacy Park

FUTURE STELLA'S LOCATION

Whether it’s top-notch security for your home or iron-clad protection for your business, Blue Ridge Security will have you covered.

Rocky Slope Rd

While other companies try to entice you with lots of “free stuff”, Blue Ridge offers simply the highest quality leading-edge technology, well-trained associates, and an unwavering commitment to their customers.

Laurens Rd. Verdae Blvd.

Verdae Marketfair

Provisions and Café is a different restaurant, with a different menu.

The two can co-exist and complement each other,” said Julia.

A few years ago, the Scholzes purchased a building in the Village of West Greenville intending to open a restaurant there. While that hasn't panned out, the Scholzes said it’s not out of the question for the future. They are currently searching for a tenant for the building.

Hiring for the new restaurant at Verdae will begin soon. When asked if they had concerns about finding hospitality staff in the competitive Greenville market, Jason said they have adopted the philosophy that if you take really good care of your employees you’ll attract top talent. The new restaurant at Verdae will also give existing employees “an opportunity to

| RESTAURANTS | 5

grow instead of going to work for a competitor.”

“We’re very cautious about expanding our company and we really feel strongly that Verdae is a sensible and strong area,” said Jason.

“We have confidence that Verdae is going to make a great destination,” Julia added.

Give them a call today.

They will earn your respect, yard by yard, day in and day out.

Stella’s Southern Brasserie, Parkside Provisions and Café will

Dabo Swinney Clemson Tigers Head Coach

• Serve breakfast, lunch, dinner and Sunday brunch • Create 40 new jobs • Be 4,000 square feet • Open February 1, 2017

Who is Stella?

“If you have seen or read ‘Marley and Me,’ you would understand our Stella,” said the Scholzes. “She was our first love – a terribly behaved, rambunctious, but playful, loyal and loving black lab. Stella is no longer with us, but she is represented in the spirit of the restaurant. Stella’s is just like the demeanor of a lab: genuine, full of energy, lighthearted and always happy to see you.”

We don’t sell systems, we create security solutions.

A subsidiary of Blue Ridge Electric Co-op

1-888-407-SAFE (7233) blueridgesecuritysolutions.com

6 | AUTOMOTIVE |

UBJ

INFORMATION YOU WANT TO KNOW

|

09.09.2016

Automotive supplier plans massive expansion in Duncan TREVOR ANDERSON | STAFF

tanderson@communityjournals.com An automotive supplier in Spartanburg County has beefed up its expansion plans to accommodate growth in customer demand and new business.

Röchling Automotive USA LLP, a subsidiary of Germany-based Röchling Group, plans to add 12,000 square feet of office space to its North American headquarters at 245 Parkway East in Duncan.

The office space is in addition to a previously announced expansion of the company’s production capacity that could create 35 to 45 jobs during the next three to four years.

“We’ve had our ups and downs as a company,” said Justin White, president of Röchling Automotive USA. “2008 and 2009 were rough the same as they were rough for everyone. But we’ve diversified our customer base and are growing on all fronts. It’s very exciting.”

The company has had operations in Duncan since the late 1990s. It specializes in the production of injection

molding products for the automotive industry.

Röchling’s local portfolio includes a 180,000-square-foot production facility and an adjacent 120,000-square-foot warehouse, as well as another 150,000-square-foot warehouse nearby.

The company has about 325 employees in Duncan.

White said Röchling Automotive USA’s customers include Ford, Mercedes, BMW, Daimler AG’s Sprinter van plant in North Charleston, Volkswagen, Nissan and others.

The office addition will help the company meet its needs for regional sales growth, which is expected to triple by 2021, White said.

He said the company’s plant in Akron, Ohio, has doubled in size since its grand opening a few years ago. And expansion plans are already in the works for the plant the company opened in May in Silao, Mexico.

“We’re glad to be a part of the growth [in the North American automotive industry],” White said. “My Northern friends don’t like it when I say this, but

Röchling's new office should be completed by spring.

I think the Southeast is the hub of the relevant automotive industry in the U.S.” White said construction of the office space will begin this month and is expected to take five to six months to complete. He said the expansion should be finished by the spring of 2017.

“This is what we like to hear,” said Spartanburg County Councilman David Britt. “It gives us great satisfaction when

an existing company like Röchling Automotive USA expands. It validates that they made the right decision in coming here and that this is the best place to do business. We are very happy for them.”

White said the company has already begun hiring for new positions.

For more information, visit roechling.com

Transactions. Trials.

Solutions.

The lawyers at Roe Cassidy Coates & Price, P.A. have over 200 years of collective legal experience. We handle business transactions, try cases, and help our clients solve problems. We pride ourselves not only on our legal experience and knowledge, but also on our dedication to our clients. We take the time to know and develop a relationship with our clients in order to provide advice tailored to each client’s specific goals and requirements.

AT T O R N E Y S Carroll H. (“Pete”) Roe, Jr. James H. Cassidy William A. Coates V. Clark Price D. Randle (“Randy”) Moody II Fred W. (Trey) Suggs III

ROE-1055-UBJ Ad-TTS_8.75x5.055_8.1.indd 1

Ella S. Barbery Amber B. Glidewell Joseph O. (“Josh”) Smith Joshua J. Hudson Townes B. Johnson III

T R A N S AC T I O N S | T R I A L S | S O L U T I O N S 1052 North Church St. | Greenville, SC | 864.349.2600 | RoeCassidy.com

8/4/16 11:32 AM

09.09.2016

|

upstatebusinessjournal.com

INFORMATION YOU WANT TO KNOW

| NETWORKING | 7

Greenville, in your inbox.

Subscribe today!

GVLtoday.com

8 | MANUFACTURING |

UBJ

INFORMATION YOU WANT TO KNOW

|

09.09.2016

Spartanburg’s BMW plant. Photo by Will Crooks.

BMW’s US sales continued to decline in August TREVOR ANDERSON | STAFF

tanderson@communityjournals.com Sales of three BMW models produced in Spartanburg County – the X3, X5 and X6 – increased in August while the German automaker’s U.S. business fell 7.2 percent.

BMW of North America reported last Friday it sold 30,500 vehicles during the month, compared with 32,864 during the same month in 2015.

For the year, the company has sold 239,631 vehicles, a 9.2 percent decrease compared with 263,908 during the first eight months of 2015.

“The clear trend toward Sports Activity Vehicles took a good-sized

Spartanburg’s BMW

leap forward in August, as our U.S. plant again increased production and availability of the always-popular BMW X3 and X5 pushing total X model sales to 44 percent of BMW retail in the U.S. in August,” said Ludwig Willisch, president and CEO of BMW of North America, in a statement. “With the production increase, I fully expect the key SAV numbers to remain strong in the U.S. through the end of the year.”

The company said it sold 4,668 X3 units in August, a 119.5 percent increase compared with 2,127 during the same month a year ago. Year-todate, the company said its X3 sales have increased 53.1 percent to 27,174 units, compared with 17,750 during

plant.

Photo

by

Will Crooks.

the same period of 2015.

Sales of the X4, which is also built in Spartanburg, decreased 4.6 percent during the month to 432 units, compared with 453 during the same month of the previous year. For the first eight months of 2015, the automaker said X4 sales are down 15.7 percent to 3,375 units, compared with 4,006 during the same span of the prior year.

X5 sales jumped 47 percent during the month to 4,121 units, compared with 2,803 in August 2015. For the year, the company said sales of the X5 are down by 23.4 percent to 29,069 units, compared with 37,965 during the first eight months of the previous year.

Sales of the X6 increased by 30.9 percent to 580 units in August, compared with 443 during the same month one year ago. X6 sales for the year are down 5.7 percent to 4,520 units, compared with 4,794 during the same period of 2015.

As a whole, BMW’s light truck division sales increased 68.2 percent in August, but are still down about six-tenths of a percent for the year.

The company said its brand vehicle sales decreased 8 percent during the month and have fallen 8.3 percent so far this year.

Meanwhile, its MINI brand sales fell 2.7 percent during the past month and are down 14 percent for the year.

Feel like your income property is all sweat and no equity?

C. Dan Joyner Property Management is committed to servicing our clients and customers with respect. We’ve been maximizing our clients’ investments for more than 45 years.

Evaluating | Inspections | Marketing | Tenant Screening | Rent Collection Accounting & Taxes | Full Scope Management | Crisis Management 24 Hour Emergency Answering Service | Property Maintenance

* Mention this UBJ ad for a reduction in fees.

CDanJoyner_qtrH_UBJ spec.indd 2

C. DAN JOYNER

PROPERTY MANAGEMENT 864.242.4466 | cdjpropertymanagement.com 5/23/16 9:36 AM

09.09.2016

|

upstatebusinessjournal.com

INFORMATION YOU WANT TO KNOW

| TRANSPORTATION | 9

GSP tops 1 million passenger mark TREVOR ANDERSON | STAFF

tanderson@communityjournals.com Greenville-Spartanburg International Airport announced last week it has reached a milestone that could be evidence that the efforts to improve its service are paying off.

The airport said its annual number of departures cracked the 1 million passenger mark in May – the first time in GSP’s 54-year history – and remained above that level in June and July.

“We’ve been seeing solid growth trends from our airline partners, and so this major milestone is great news for the region and the airport,” said Dave Edwards, president and CEO of GSP, in a statement. “It’s an indication that the GSP Airport District and its airline partners are delivering the right environment with the right service at the right price.”

According to GSP, the airport’s passenger traffic, including both departures and arrivals, increased 2.3 percent in 2015.

In June, passenger traffic at the airport increased about 1 percent to 174,465 flyers, compared to 172,977 during the same month a year ago.

It was the 12th consecutive month of increase in GSP’s business.

The airport is nearing completion of its $125 million main terminal renovation project WINGSPAN. Since the beginning of the summer travel season, GSP has opened a new ticketing lobby, a centralized passenger screening checkpoint and automated exit lanes.

Construction of the second floor grand hall and airside continues, but should be wrapped up before the end of the year. The work will include the addition of several dining and retail amenities for passengers.

GSP spokeswoman Rosylin Weston said the airport is hopeful traffic will remain high.

She said airport leaders believe the trend is the result of a combination of factors that include more flights at competitive prices to the destina-

Now Boarding

1,000,848

departures from GSP in the 12 months ending May 2016

1,002,355

departures in the 12 months ending June 2016

1,001,160

departures in the 12 months ending July 2016

tions that are in demand.

“In an ideal world that number would stay above 1 million,” Weston said. “We hope this trend will continue. What this number represents is that people who consider GSP their airport of choice are, in fact, flying out of GSP. … Passengers are think-

ing GSP first. We can’t even get into the game if people just write us off.”

For more information, visit gspairport.com.

Register Today!

Presented by

TUESDAY, SEPTEMBER 13 • 8:30 AM — 1:30 PM TD CONVENTION CENTER

PURCHASE TICKETS

www.tenatthetop.org

PURCHASE A TABLE

(864) 283-2317

FEATURING KEYNOTE SPEAKER GEOFF COLVIN

Senior Editor-at-Large, Fortune Magazine; Author/Commentator on Business & Economic Issues

MEDIA PARTNER:

10 | CO-WORK / FOOD |

UBJ

INFORMATION YOU WANT TO KNOW

|

09.09.2016

New co-work space to open in the Village of West Greenville ARIEL TURNER | CONTRIBUTOR

aturner@communityjournals.com A second — and much larger than

A section of the Brandon Mill in the Village of West Greenville is currently under renovation to become a co-work space.

the original — co-work space in the Village of West Greenville is scheduled to open Oct. 1 in the West Village Lofts at Brandon Mill.

The new space, The Gathering at Textile Hall, is located inside the new loft apartment complex at 25 Draper St. and was created by Mill Community Ministries, which launched the Village’s first co-work space, Textile Hall at 582 Perry Ave., in the spring.

The Gathering will offer members 5,100 square feet of mixed-use space, including private 10-by-10-foot offices, semi-private offices that will be divided by distressed wood screens and open-concept space with reclaimed wood and recycled granite desks.

The rustic industrial-style space also

includes conference rooms, kitchen, meeting rooms, 24-hour access, bike co-op and unlimited coffee bar.

Mike Pennington, the director of both Textile Hall locations, said that while most co-working spaces cater to a specific demographic, Textile Hall welcomes anyone looking for more than just an office with amenities who also shares their vision for the culture and community.

Pennington said they try to keep the price point accessible so members don’t feel badly about not being there every day and also provide other services and equipment, such as $1,500 drafting desks, that an individual may not be able to personally afford but could benefit from using.

Mill Community Ministries is now offering tours at both locations by appointment. Visit textilehall.com.

Duke’s Mayo spreading south of the border DAVID DYKES | STAFF

ddykes@communityjournals.com Greenville-born

Duke’s

mayonnaise is heading to South America.

The Richmond, Va.-based C.F. Sauer Company has entered into an agreement with KB International to distribute its Duke’s mayonnaise products in Colombia as part of the company’s overall growth strategy for the Duke’s brand.

C.F. Sauer is a family-owned grocery products company that manufactures and sells mayonnaise, spices and extracts, both domestically and internationally.

KB International also is a family-owned company that sells grocery

products in Colombia, Chile and Peru.

C.F. Sauer bought Duke’s mayonnaise, a signature spread created by Eugenia Duke of Greenville, in 1929.

It has been part of the company’s branded portfolio of products ever since. The Duke Sandwich Company, established in 1929 to sell sandwiches featuring the mayonnaise, still operates from a building on Rutherford Road.

The expansion is part of “our company’s overall growth strategy for the Duke’s brand,” said Rob Davenport, C.F. Sauer’s manager of international business.

Shipments should begin by the end of this year or early 2017, he said.

NOW HIRING!

Director of Marketing Spartanburg Area Chamber of Commerce The Spartanburg Area Chamber of Commerce is seeking a Director of Marketing. This position directs all marketing and communication activities across all Chamber divisions.

For a complete job description visit

CORRECTION: An article in the Aug. 26 Upstate Business Journal, “Tech startup Bandwagon launches online marketplace for sporting tickets,” incorrectly stated that Bandwagon had received a $25,000 investment from Jason Premo, founder of Greenville investment group Swamp Rabbit Angels. According to La-Vaughnda Taylor, vice president of brand strategy for Bandwagon, there was no such investment.

www.spartanburgchamber.com/jobs Interested in this opportunity?

Submit your resume and cover letter to John Kimbrell, Exec. VP jkimbrell@spartanburgchamber.com

09.09.2016

|

upstatebusinessjournal.com

INFORMATION YOU WANT TO KNOW

| RETAIL | 11

Remodeled BI-LO in Greer includes pizza oven, smokehouse DAVID DYKES | STAFF

ddykes@communityjournals.com BI-LO has remodeled its Greer store and officially reintroduced it to the community with a ribbon cutting last Thursday at the store, 2460 Hudson Road.

The store has an in-house stone hearth pizza oven and smokehouse.

Brisket and pulled pork will be slowcooked in-house for 10 to 12 hours, and BI-LO chefs will make a signature pizza sauce and marinades from scratch.

The store also will have a seafood department offering a variety of seafood assortments, including the fresh catch of the day and locally made sushi.

Further, it will have an expanded natural section with a variety of natural and organic offerings.

“BI-LO was born in Greenville and we’re proud of the nearly 55 years of commitment and service to this great community, including more than 24 years of service at our Greer location,”

said Ian McLeod, president and CEO of Southeastern Grocers, BI-LO’s parent company.

The Greer store is the third BI-LO to undergo a transformation in South Carolina, company officials said.

The Surfside and Cayce stores were recently remodeled, but upgrades and amenities at those stores are different from those offered in Greer, the officials said.

Each store remodel is tailored to the community it serves, company officials said. The Greer BI-LO will be open each day from 7 a.m. to 11 p.m.

BI-LO has 14,000 employees in more than 180 grocery stores and 87 in-store pharmacies throughout Georgia, North Carolina and South Carolina.

Southeastern Grocers LLC is the parent company of BI-LO, Harveys and Winn-Dixie grocery stores. It is the second-largest supermarket in the Southeast based on store count.

Changes in Greer include

• New facade signage and modern store signage inside.

• Updated produce department with local produce from Walter P. Rawl & Sons, McLeod Farms and more.

• A bakery department with hot mini-donuts made in-store and updated café seating with fresh coffee options.

It’s not about finding a job.

IT’S ABOUT FINDING YOUR PURPOSE. OCTOBER 6-7

KROC CENTER Greenville, SC

E X C L U S I V E LY F O R V E T E R A N S I N C A R E E R T R A N S I T I O N

InsideBlackBox .com/ R E C O N

12 | COVER |

BRAD THOMAS

Brad Thomas knows Donald Trump’s secrets

BY DAVID DYKES | STAFF

ddykes@communityjournals.com

BRAD THOMAS

| COVER | 13

Spartanburg business and finance writer Brad Thomas has written a book on the GOP presidential nominee and businessman that reportedly reveals the secrets behind Donald Trump’s businesses and his brand.

Thomas, a former real estate developer and now editor of the Forbes Real Estate Investor, unabashedly supports Trump. He said he wrote the book “The Trump Factor” to “pull back the curtain” and reveal to critics, pundits, journalists and investors “the many obscurities” behind the man who wants to be president.

While there are many other books on Trump, the one by Thomas is different.

For starters, Thomas said in a recent telephone interview, “Obviously, it’s not written by Trump. I’m not paid by Trump like any of the other kind of shadow writers that get paid a fee.

“So in other words, I have no conflicts of interest with Donald Trump. I have used my own piggy bank to visit all of the properties he owns in the world.

That’s why it took me three years to write this book.”

In doing research, he spent time with Trump and his executives at his properties. “Gradually, I realized that many people – both in and out of the real estate business – wanted to know more about Trump,” Thomas said.

He pondered Trump’s financial failures beginning with the risky investments that led to his casino, The Trump Taj Mahal, filing for Chapter 11, which permits reorganization under U.S. bankruptcy laws.

“Never before has America, or the world, seen an individual so creative, so focused and so determined to forge ahead regardless of the obstacles, to create superb quality hotels, golf courses, condominiums, retail shops and much more,” Thomas said in the book.

Unlike any developer he has met, Trump “has an incredible vision for selecting great locations,” Thomas said. “In his mind, barriers to entry don’t exist as he embraces unconventional ideas by taking a mental picture and converting it into a virtual blueprint.”

Counting Trump’s dollars In looking at Trump’s financial worth, Thomas said it’s hard to determine the value of the hotel licensing business, which is growing in scale, because Trump’s company is private.

“The fees that are generated are not as predictable as rent checks and are often lumpy or inconsistent due to the characteristically volatile development process,” Thomas said.

To model the hotel licensing business, Thomas said he looked at the average costs to build all of the Trump-branded hotels and arrived at $500 million per property.

“Then we determined that Trump generates development and construction management fees of 5 percent per building,” Thomas said. “We continued by modeling the residential sales at 5 percent each over a course of 10 years and added recurring management fees of 5 percent based on our forecasted revenue.”

Assuming Trump rolls out two new projects each year, Thomas forecasted that Trump’s licensing business could generate about $55 million annually as the company expands into new markets.

Additionally, Trump gains a more predictable revenue stream in which the company can manage operations for third-party owners, Thomas said.

“We suspect that Trump is now receiving hotel management income of between $30 million to $50 million, and if the company opens 15 more properties before 2030, the fee income could top $75 million annually,” Thomas said.

He estimated general and administrative fees to be 12 percent, translating into a forecasted annualized net income of $81 million.

Since this is fee income, not owned real estate, Thomas used a 10 percent multiple that values the

14 | COVER |

UBJ

BRAD THOMAS

Trump hotel licensing business at $810 million.

Using public filings and his own estimates, Thomas also valued Trump’s U.S. golf course portfolio at $312 million and his Doral holdings in Florida at $722 million.

Overall, Trump’s real estate portfolio is valued at around $5.3 billion and he has an estimated annual cash flow of $550 million, Thomas said.

Trump has claimed his net worth is more than $10 billion, according to The New York Times. That’s more than double the estimates of most media sources, Thomas said.

Thomas’ estimate – the true value of Trump’s real estate empire including cash and marketable securities – is less than $10 billion. But, as far as how much, you will have to read the book.

“My book was not written to be a puff piece for Trump or to serve as another smackdown,” Thomas said. “My job is to provide you with one simple thing: the facts.”

“Those were the days” For Thomas, “The Trump Factor” is a reminder that to be successful in business, risks are involved.

Thomas worked for 20 years in real estate, including as an Upstate shopping center developer borrowing “hundreds of thousands of dollars” to build and lease buildings.

Now 50, he turned to financial writing after a series of missteps took his worth as a developer from about $10 million to near bankruptcy.

“I made mistakes that cost me, but I also made hundreds of thousands of dollars, justifying my more than 20-year career in the real estate industry,” Thomas said in the introduction to “The Trump Factor.”

“Those were the days,” he said in a recent telephone interview. “It was a lot easier to get deals done. You’d literally drive to a little town like a Union or Walterboro, find Walmart, find the outparcel for $100,000, throw up an Advance Auto [Parts] and sell it and go on to the next one.”

As his deals grew larger, so did his bank account. And his tolerance for risk increased.

At one point, Thomas wondered how a 35-year-old developer with five children living in a $2 million house could lose it all.

He found himself sitting in the parking lot of a $15-million shopping center he had developed. He had $20

“Never before has America, or the world, seen an individual so creative, so focused and so determined to forge ahead regardless of the obstacles.”

Brad Thomas

in his pocket. He was picking up diapers and milk.

“I had forgotten that the most important lesson in investing is to protect principal at all costs,” Thomas said. “I had become a gambler, not a developer.”

Writing became his new career, and he chose real estate as his topic.

Today, Thomas writes weekly for Forbes.com and does research on many publicly traded real estate investment trusts, or REITs. The Real Estate Investor is a monthly, Thomas' newsletter. He also is co-author of the book “The Intelligent REIT Investor.”

To write “The Trump Factor,” Thomas says he first met the developer on the 26th floor of the Trump Tower in New York. The two talked for 30 minutes about real estate.

He and Trump met three times over six months.

And in those meetings, Trump kept saying, according to Thomas, “The media doesn’t get it right. These writers don’t understand real estate and how to value real estate.”

At their fourth meeting, Thomas told Trump he wanted to write a book about him.

“I said, ‘But it’s not going to be your biography and it’s not something that I want you to pay me for,’” Thomas recalled. “I want to be the one to get it right. I’m going to write a book about all of your real estate.”

Thomas said he told Trump he only wanted two things – access to his

people and his properties.

If he agreed, Thomas told Trump, “I promise you one thing: that my book will be better than ‘The Art of the Deal,’” referring to the 1987 book credited to Trump and journalist Tony Schwartz.

“I said it just like that,” Thomas recalled. “I looked at him in the face and I stood up. I shook his hand and he said, ‘Good luck.’"

|

09.09.2016

“I smiled and I walked out the door,” Thomas said.

Trump Organization officials didn't respond to requests for comment.

Thomas examined public filings, each property Trump owns and consulted with numerous analysts and experts.

He also used interns from several universities to help with research.

The author said the New York developer didn’t provide him with a copy of his bank accounts, and he has no interest in debating the merits of Trump as a presidential candidate.

But asked in a CNN interview earlier this year if he thought Trump has the temperament to be president, Thomas said, “Absolutely.”

“I mean, Donald Trump is a battle-tested CEO,” Thomas said, according to a transcript of his remarks. “He has been through multiple downturns, up and down, and how he’s dealt with that adversity is really a big part of his success today.”

09.09.2016

|

upstatebusinessjournal.com

MOVERS, SHAKERS AND DISRUP TORS SHAPING OUR FUTURE

| INNOVATE | 15

The Myth of the Lone Genius True innovation comes from teams, not individuals

By DR. GREGORY PICKETT Senior Associate Dean, Clemson University College of Business Director, MBA Programs & Greenville ONE

“Innovation” is one of those words that is quickly becoming a ubiquitous rallying cry for companies and entrepreneurs alike. If you are not innovating, you are surely destined to die a slow death – think a whip and buggy or perhaps a VHS tape system.

As I talk to CEOs and successful entrepreneurs as part of my responsibility in leading our Clemson operations at ONE, it is clear that innovation is extremely important as a rejuvenating force for any organization. But what is it? Where do these ideas originate? Who is truly responsible for the innovative impact? How do you sustain a culture focused on creating value in the marketplace?

Perhaps a good place to start addressing these questions is with a myth one often hears: that “visionary leaders” are wholly responsible for the innovative impact that changes markets and drives organizations for future success. According to a recent Wall Street Journal article, “Together We Innovate,” when it comes to innovation, the “myth of the lone genius dies hard. … Most companies continue to assume that innovation comes from individual genius … but the truth is most innovations are created through networks – groups of people working together.”

In a recent interview, Brian Chesky, co-founder of Airbnb, confesses that his multibillion-dollar business was the “worst idea that ever worked.” Airbnb began in San Francisco when Chesky and his roommate, Joe Gebbia, could not pay their apartment rent. A large convention happened to be in town the week the rent was due, and the roommates rented their apartment to three convention guests. Airbnb was born.

When the interviewer pressed him on his “innovative genius,” Chesky said too much is made of this industry-changing idea. True innovation in his company happens every hour and comes from his team, which he asks to change his company for the better every day.

One of the classes I teach in our Part-Time MBAe (MBA in Entrepreneurship and Innovation) program

explores the nature of innovation as framed by Larry Keeley in his book “Ten Types of Innovation.” Keely contends that the most certain way to fail as an innovator is to focus only on products.

Innovation can and should come from many different parts of the organization.

Keely categorizes innovation into three broad areas: configuration (profit model, network, structure and process); offering (product performance and product system); and experience (service, channel, brand and customer engagement).

He further links true innovation to market performance. This implies that ideas by themselves are not innovative.

It is when these ideas have impact that

Ideas by themselves are not innovative.

It is when these ideas have impact that they become innovations.

they become innovations.

To me, innovation is about solving problems uniquely with scarce resources. Expanding our understanding of what innovation is and is not gives every employee – regardless of functional area – the opportunity and responsibility of changing the organization for the better.

Ultimately, the key challenge for organizations is finding the right kind of person to be a part of an innovative culture and the leadership to encourage experimentation and initiative. Glenn Llopis, in his article “Five Ways Leaders

Enable Innovation in Their Teams,” believes that innovation is not dependent on participation of high-ranking executives, “but on any employee that is a student of the business, knows their customers and their specific needs. …

Innovation is something that happens when you have a team who has a pulse on the marketplace and what it is telling them they must do.”

If you are fortunate enough to lead an innovative team, your job is really quite easy. First, learn to trust yourself to trust your team. Control is pushed down to those doing the work with rich dialogue occurring to shape the opportunity. Next, collaboration and communication is built into the fabric of the work culture. Team members need to feel they can engage with others routinely outside of formal meetings to discuss concerns, new opportunities and market contingencies. Frequent “collisions” are welcomed and open conversations encouraged. Try to think of the workplace as an “innovation lab” where team members challenge each other and help each other shape ideas.

Work hard to build a work environment where being a change agent, challenging the status quo for positive disruptive change, is a good thing, not something to be discouraged. Finally, don’t be afraid to “course correct.” Innovation is not seamless and is not easy. When great ideas don’t achieve the results desired, address the idea and don’t blame the originator for having it.

I am very proud of the success our MBA programs have had since we moved to Greenville. We have launched successful freestanding concentrations in entrepreneurship and innovation and in business analytics, and have embraced innovation as a key element in the education we deliver. Our students find jobs in some of the largest companies in the area or choose to start their own business and pursue their own entrepreneurial dream. While former President James Barker’s vision of taking Clemson education and research throughout the state through “innovation campuses” has been realized, the innovation that makes this vision a reality for our graduate programs housed in Greenville ONE is owned by our team. I cannot wait to see what they innovate next.

South Carolina

is a great place to

start your own

franchise.

Check out these stores available for franchising in your neighborhood: • 5055 Old Buncombe Rd. Greenville, SC 29609 • Hwys. 290 & 296 Moore, SC 29369 • 1703 Easley Bridge Rd. Greenville, SC 29611 • 2617 Wade Hampton Blvd.

Greenville, SC 29615

To learn more, contact Brian Mulcahy at 864.300.4889 or

Brian.Mulcahy@7-11.com

© 2016 7-Eleven Inc. All rights reserved.

This is not an offer to sell a franchise.

An offer can only be made in applicable states with authorized documentation. 7-Eleven Inc., P.O. Box 711, Dallas, TX 75221-0711

16 | PROFESSIONAL |

UBJ

STRATEGIES FOR HONING YOUR PROFESSIONAL SKILLS

|

09.09.2016

M&A Midyear Update E INVITED TO O R ’ U UR YO

Despite declines, mergers and acquisitions remain strong in South Carolina

By MELINDA DAVIS LUX Womble Carlyle Sandridge & Rice LLP

Although merger and acquisition

SEPTEMBER 22

FROM 6 - 8 PM

activity in the first half of 2016 declined from the record highs of 2015, conditions for M&A activity remain strong. South Carolina companies should expect continued interest from both private equity firms and strategic buyers for M&A deals.

Were M&A markets active in the first half of 2016?

It’s going to be a rip-roaring time, so wear your boots and bring your cowboy hat. Enjoy special joining opportunities, plus hand-crafted drinks, gourmet food, and music that will leave you dancing!

Join us for this complimentary Open House Party!

RSVP to 864.232.5600

According to MergerMarket, there were 2,291 deals in the U.S. in the first half of 2016, down 11 percent from the first half of 2015. Aggregate M&A deal value was $577 billion, which represented a 30 percent decline from deal value in the first half of 2015.

M&A activity in the South experienced a similar decline in the first half of 2016, with a reported 8-10 percent decline in deal volume as compared to the first half of 2015.

Overall M&A activity, however, remains strong. M&A activity in 2015 hit record highs, driven in large part by megadeals (deals over $5 billion).

M&A activity in 2016 has generally outpaced the post-recession years of 2009-2013. Many M&A professionals view the 2016 pace as a “normalization” of deal activity rather than a dramatic shift.

What drives M&A in South Carolina?

17TH FLOOR ONE LIBERTY SQUARE 55 BEATTIE PLACE COMMERCE-CLUB.COM

South Carolina benefits from a strong base of middle-market companies, defined as companies with revenues between $50 million and $2 billion. There are more than 450 middle-market companies in South Carolina. In the Upstate, there are more than 170 middle-market companies.

The decline in overall M&A activity in 2016 as compared to 2015 is driven in part by the lack of megadeals. Several megadeals closed in the first half of 2015, the largest of which

was the acquisition of Time Warner Cable by Charter Communications for $71 billion. Fewer megadeals have closed in 2016, with several well-publicized deals being abandoned because of antitrust and other regulatory concerns.

South Carolina M&A activity largely is driven by middle-market deals rather than megadeals. Middle-market activity usually remains steadier than megadeals through economic cycles. As a result, South Carolina often experiences less dramatic swings in M&A activity than other regions.

Also, M&A activity varies significantly among sectors. Despite the drop in overall M&A activity in the first half of 2016, MergerMarket reports that the industrials and chemicals sector in the Southeast grew year over year. South Carolina has similarly experienced significant M&A activity in the industrials sector, followed by strong activity in the consumer and retail and health care sectors.

Importantly, many large global organizations are headquartered in South Carolina. A large portion of South Carolina’s M&A activity is “outbound” M&A – the acquisition

by South Carolina companies of businesses located in other states or countries. Many global companies and middle market companies in the Palmetto State are actively engaged in outbound M&A activity. Those acquisitions strengthen the companies located within South Carolina and fuel future growth.

What is the outlook for M&A in South Carolina for the remainder of 2016?

Conditions for M&A, particularly in the middle market, are strong.

Many strategic buyers continue to struggle to grow organically. With large cash balances and a favorable lending environment, corporations are motivated to seek growth by acquisition.

Private equity firms – which are

09.09.2016

|

STRATEGIES FOR HONING YOUR PROFESSIONAL SKILLS

upstatebusinessjournal.com

ditions that caused M&A activity to stall in the first half of 2016. Whether or not these conditions stabilize, both strategic buyers and private equity funds may feel pressure in the second half of 2016 to complete acquisitions to fulfill strategic objectives.

URGE TO MERGE

2,291

M&A deals in the U.S. in the first half of 2016, down 11 percent from the first half of 2015

$577,000,000,000

aggregate deal value in the first half of 2016, down 30 percent from the first half of 2015

8-10%

decline in deal value in the South in the first half of 2016 from the first half of 2015

GRANITE GOLD

www.crewupstate.org

IN KIND

SILVER

MARBLE

nies. These conditions bode well for South Carolina companies interested in a sale.

Similar to other economic activity, M&A thrives in conditions of certainty. Global economic uncertainty, the upcoming presidential election and unstable oil prices are cited as con-

PLATINUM

Thank You

reported to have some of the largest funds to date – are competing with strategic buyers to deploy those funds.

The proliferation of smaller private equity funds, and private equity funds seeking bolt-on acquisitions for existing businesses, create increased demand for middle-market compa-

2016 CREW Upstate Sponsors

How should buyers and sellers approach M&A in the last half of 2016?

Sellers have the advantage in today’s market. As a result, sellers should try to negotiate all significant deal terms during the bidding process.

In addition to the purchase price, sellers should negotiate terms – such as the escrow amount, escrow release date, working capital adjustment, indemnification thresholds and caps, noncompetition restrictions and post-closing employment arrangements – on the front end of a transaction. The seller’s negotiation leverage is greatest when buyers are competing to win a bid. That leverage decreases substantially after the seller selects the winning bidder.

In a competitive M&A environment, a buyer needs to offer a top-ofthe-range purchase price to win a bid.

Extensive due diligence, coupled with

| PROFESSIONAL | 17

detailed integration planning, is always the best approach to minimize acquisition risk.

Both buyers and sellers benefit from an efficient M&A deal process.

The seller should investigate the potential buyer to determine whether the potential buyer has a history of successfully closing acquisitions. An experienced buyer is more likely to have internal processes in place to help drive an M&A transaction quickly towards closing.

The buyer should evaluate the seller’s business to determine whether the seller’s systems and processes are robust. Based on that assessment, the buyer should determine the scope and timing of due diligence and clearly communicate those expectations to the seller at the start of the deal process.

Both the buyer and the seller should pay attention early in the process to the dynamics between them and communication styles.

When the buyer and the seller communicate effectively from the start, the odds increase that the acquisition will proceed smoothly to a successful closing.

18 | DIGITAL MAVEN |

THE TECHNICAL SIDE OF BUSINESS

UBJ

|

09.09.2016

Diagnosis: Data Breach Bon Secours provides a lesson in the importance of vetting your third-party vendors

By LAURA HAIGHT president, portfoliosc.com

August was a bad month for the nationwide Bon Secours Health System, as it was forced to admit that sensitive personal data and some medical data of more than 655,000 patients had been exposed in a significant data breach.

Exposures like this are commonplace, it seems, and other than the sheer size of the loss, what makes this special? It’s this: The information was not in the control of Bon Secours, but was exposed by a third-party vendor, R-L Healthcare Management, a reimbursement optimization company based in Phoenix. (It’s important to note that we do not know that any of the exposed records were actually lost to hackers) For the past decade or so, the intersection of wireless computing, cloud services and digital data has been both a tectonic shift and a fault line for business, nonprofits and government sectors. Just last year, a survey found 85 percent of businesses were finally ready to elevate cybersecurity to a business priority.

But the Bon Secours exposure illuminates an important lesson for businesses: Having a good handle on your own cybersecurity is not enough. You have not only a right but a responsibility to vet your partners and vendors for their security as well.

This is an area largely unaddressed by most companies. And that’s a big problem when you consider how many third-party connections you have into your internal systems or cloud-based data from point-of-sale to payroll.

Here’s a sampling of what’s happened to some large companies so far in 2016 alone: • W2Express, an Equifax company, was hacked, exposing the sensitive data of employees of all of its clients, including Kroger, Stanford University and Northwestern University.

• More than a dozen companies including US Bancorp that were signed up with ADP, the payroll processing giant, had employee data SSNs breached through a weakness in its portal system.

• In the health care space, another vendor, Bizmatic, an electronic records provider with more than 15,000 client practices nationwide, was infected with malware. The extent of that infection is still being uncovered.

There are positive steps that all companies regardless of size should take.

1. Develop an inventory of all third-party vendors

and partners, key contacts, emergency numbers (note: you should have this for your emergency plan anyway), the access they have been granted, the purpose it was for and the date it was last reviewed. If you don’t know the answer to those last questions, you have some work to do to get control.

2. Develop a standards and practices review to help

you assess the strength of a vendor or partner’s internal security. Bitsight (bitsighttech.com), the security assessment and mitigation company, has 40 questions you should ask. Many small businesses will want to narrow that list to a more manageable number of key questions, including: How is your IT managed?

What security processes do you use internally to detect breaches? Have you ever had a security breach? Do you use penetration testing through qualified external vendors to identify weaknesses?

3. Make security part of your contracts. The details

of any vendor’s access to your data, your internal network or cloud-based systems need to be clearly established in their contracts or as an addendum to an existing contract. No provider who can be trusted with your information will resist these provisions.

4. Scale access appropriately. One size does not fit

all. You need to able to give a vendor only the access they must have to fulfill their agreement, nothing more.

5. Establish regular security reviews to assess inter-

nal and external access for appropriateness. A vendor whose contract has expired may still have access into your systems. Quarterly reviews are essential to managing your internal risk.

6. Monitor and manage the relationship actively.

This is an area that, when handled proactively, may prevent breaches. For example, knowing when your third-party vendors are planning system upgrades can spark a conversation about how your data will be protected during the move. Having that conversation certainly can’t hurt.

Managing your risk involves a much more proactive approach to security that reaches beyond your internal systems. While the vendor may bear culpability, the responsibility to protect your customers’ data is yours.

The vendor may get the fine, but your reputation will take the hit.

Having a good handle on your own cybersecurity is not enough. You have not only a right but a responsibility to vet your partners and vendors for their security as well.

Health Care Hacks

Is your medical and personal data safe in your doctor’s hands?

You decide.

RISK: Some 47 percent of Americans had their medical records hacked in 2015, according to a report from a cybersecurity think tank. The Health and Human Services Department put a number to that and reported 113 million medical records had been stolen in 2015 alone.

REWARD: A medical record sells for about $60. Compare that to a Social Security number at $10 or a mere credit card from $1 to $3, according to Fast Company.

RESPONSE: Thanks to those numbers, health care providers are taking security even more seriously. So are oversight organizations that levy fines to hospitals and medical practices whose security lapses expose patient data. HHS’s Office of Civil Rights resolved 9,407 HIPAA violation cases in 2012. Just two years later, the number of violations more than doubled to 17,748. Since last November, federal regulators levied fines totaling $16 million to just five health care entities that were breached.

09.09.2016

|

upstatebusinessjournal.com

HIRED

PLAY-BY-PLAY OF UPSTATE CAREERS

HONORED

PROMOTED

HIRED

| ON THE MOVE | 19

HIRED

CHRIS BRADY

STEVE W. SUMNER

DEBBIE BRIGHT

HAILEY LAMB

CANDICE CHAN

Named interactive services manager at Jackson Marketing, Motorsports & Events. A 2007 graduate of Winthrop University in Rock Hill, Brady holds a bachelor’s degree in integrated marketing communications.

Named to the Best Lawyers in America 2017 in the field of DUI defense. Sumner currently represents clients in more than 25 courts in the Upstate.

Named senior recruiter in Phillips Staffing corporate office. A native of Windermere, Fla., Bright joined Phillips in 2015 as an assistant recruiter in its Greater Greenville branch.

Named senior accountant at Greyrock Accounting. Lamb previously worked at Clemson University, ICAR Campus, as a fiscal analyst.

She earned a bachelor’s degree in business administration from University of Florida.

Named dean of international admissions at Furman University. Chan previously served as director of international admissions at Widener University in Chester, Pa. Chan, originally from Hong Kong and fluent in Chinese, received her bachelor’s degree from Widener University and an MBA from Lynn University.

NONPROFIT

CONSULTING

Loaves & Fishes hired a new team member Katie Plowman as operations coordinator and created the new produce project coordinator position for longtime employee Bill Shell.

SynTerra continues to add employees during the second and third quarters of 2016: Will Davidson, Evan Yurkovich, Jason Vaughn, Maggie Duke, Bill Lantz, Will Peavyhouse, Samuel Muller, Paul Tarquinio, Adam Feigl, Ashley Albert, Hallie Mosblack and Lee Drago.

TECH Engenius has added Brooks Manley as full-time production assistant working with content marketing, SEO, SEM and client support. Manley is a recent Clemson University graduate.

TJ Deluccia, also a Clemson graduate, has been hired as the production manager.

SERVICES ProSource Plumbing Supply has promoted two key management positions. Sam Acquaviva has been promoted to chief financial officer, and Kevin Phillips is now vice president of operations. Acquaviva joined ProSource in 2001 and will continue to manage the company’s finance and accounting functions as CFO. Phillips has been with ProSource for 14 years and served in various roles, including counter representative, inside sales representative, inventory control manager and most recently, operations manager.

LAW National workplace law firm Jackson Lewis P.C. announces three of the firm’s Greenville attorneys have been named to Greenville Business Magazine’s “Legal Elite of the Upstate” list for 2016. Attorneys receiving the distinction are office managing principal Stephanie Lewis, principal Andreas (Andy) Satterfield and of counsel Sandi Wilson. All attorneys were recognized in the category of Labor and Employment Law.

CONTRIBUTE: New hires, promotions & award winners may be featured in On the Move. Send information and photos to onthemove@upstatebusinessjournal.com.

Let’s Get Together

to Improve Performance!

Register for The Activate Series and join others who are already seeing results and closing new business.

Classes are held on Wednesdays.

You can begin attending at any time.

MARKETING Infinity Marketing welcomes new hires Emily Rash, Caroline Sievers and Lena Dunham. Rash joins as media assistant, Dunham returns to Infinity as a media buyer and Sievers joins Infinity as a media coordinator.

To register and view the syllabus:

864.451.7676 2activatesales.com

20 | NEW TO THE STREET |

THE FRESHEST FACES ON THE BUSINESS LANDSCAPE

UBJ

|

09.09.2016

Open for business 1. Leadership Greenville’s Class 42 Project Team and Miracle Hill Ministries celebrated the completion of a new walking track at Miracle Hill’s Overcomer Center.

1

Photo provided

2. FocalPoint Business Coaching is now open at 33 Market Point Drive. For more information, visit miawade. focalpointcoaching.com.

2

Photo provided

CONTRIBUTE: Know of a business opening soon? Email information to aturner@communityjournals.com.

OUR TRAFFIC DRIVES YOUR TRAFFIC

24,500 viewers daily and GROWING Shouldn’t you be talking to them?

For current availability call GRACE Outdoor 803-252-7084

09.09.2016

|

upstatebusinessjournal.com

BUSINESS BRIEFS YOU CAN’ T MISS

| THE FINE PRINT | 21

EDTS Named Breakout Partner of the Year for 2016 by Datto EDTS, a regional technology consulting firm, has been presented with the Golden Datto award in the Breakout Partner of the Year category for industry leading sales and service performance excellence.

The award recognizes outstanding accomplishments among Datto’s global partner community, and honorees are recognized as elite providers and recognized leaders in the IT industry. The Breakout Partner Award to EDTS reflected the organization’s mastery of a large fleet conversion and significant new client additions during the latest fiscal year, while still effectively managing and delivering superior customer service.

Charles Johnson, CEO of EDTS said, “Being recognized in this top level of Datto partners is a testament to the commitment to excellence of our employees and the confidence and support of our growing client base.”

The 75-person IT organization serves customers from offices in Columbia, Greenville, Asheville and its headquarters in Augusta, Ga. EDTS was recently named to the Inc. 5000 list of Fastest-Growing Companies in America for the seventh consecutive year.

Green Cloud expands data center to Houston Green Cloud Technologies, a channel-only cloud technology solutions provider, announces an expansion of its data center operations with a new data center in Houston, Texas. Green Cloud chose this location due to high demand from its network of value-added reseller (VAR) and managed service provider (MSP) partners and their customers in Texas and the Gulf Coast region.

The Houston data center is Green Cloud’s fourth. Other data center locations include Akron, Ohio; Nashville, Tenn.; and Greenville.

“We’ve seen huge demand from our VARs and MSPs in Texas,” said Green Cloud CEO Shay Houser. “Selecting Houston as our next data center expansion allows us to service those partners and their customers with a more localized service, while also providing redundancy for our data centers in the eastern U.S.” Green Cloud was recently recognized as 73rd on the Inc. 5000 list of the nation’s fastest-growing private companies and South Carolina’s fastest-growing company.

Clemson Design Center opens new location in Charleston Clemson University’s architecture and historic preservation programs in Charleston are now united under one roof in a new space at the Cigar Factory on East Bay Street. The former cigar and textile manufacturing plant, built in 1881, is on the National Register of Historic Places. The programs in the newly renovated facility will be known as the Clemson Design Center.

Until recently, the two programs — architecture and historic preservation, the latter of which is jointly run by Clemson and the College of Charleston — were housed in three separate locations.

“The consolidation of our design-based programs at the Cigar Factory is a significant step for Clemson University,” said Richard E. Goodstein, dean of the College of Architecture, Arts and Humanities. “Clemson’s students in architecture and historic preservation have distinguished themselves for more than 25 years as innovative and service-oriented members of the Charleston community. We are excited to occupy this beautiful space in the Cigar Factory in one of America’s great cities.”

HR Fall Checklist I will miss the lazy days of summer, but there is nothing like the excitement of fall. Kids are back in school, people are focused at work, and there is a renewed sense of order. When I take my girls shopping for school supplies, I also get in the school spirit and buy a few things. September is the time of year when I can be the most productive with a clear mind and a cool new notebook!

Not only does September mean new office supplies, it also means that there are 4 more months to accomplish your annual goals and get ready for the New Year.

So pull out your fancy new notebook and add these HR tasks to your fall to-do list: • EEO-1 – if your company has more than 100 employees, is affiliated with another company that has more than 100 employees, or has 50 employees and is also a federal contractor, then the EEO-1 report must be completed annually by September 30th. The EEO-1 is a survey which categorizes employment data by race/ethnicity, gender and job category. Please note that the 2017 submission is proposed to include pay data, so as you work on your report this year, keep in mind that next year may have additional requirements.

• FLSA – Effective December 1, the salary level for employees to be exempt from overtime will increase to $913 per week (previously $455).

The highly compensated salary level also increases. If you have not reviewed all of your employees’ exemption status, now is the time.

Decisions must be made and if necessary, salaries need to be increased

by December 1st.

• ACA – This year, the IRS gave extended filing deadlines and leniency for companies who may not have handled ACA administration perfectly, but gave it a good faith effort. Don’t expect this for 2017. If you are a covered employer, now is the time to make sure your systems are solid, your waivers and enrollment forms are complete, and that you are ready for the January 31st filing deadline.

• Inclement Weather Policy – Although the temperature gauge still registers in the high 80s, early fall is still the best time to think about winter. Review your inclement weather policy to determine if it is accurately practiced the way the policy reads. If not, revise and circulate to your team.

• W-2 Filing – Before you know it, your payroll provider will be printing W-2s. Now is the time to help this process go smoothly. Check social security numbers for accuracy, confirm addresses for all employees, set reminders to calculate any fringe benefits, and make sure any disability forms are sent to the payroll team.

Use this HR to-do list as a starting point and start checking off the items. If you need some motivation, go buy yourself a cool new pen; I hear the back to school supplies are now on sale!

Lee Yarborough President

669 N. Academy St. Greenville, SC 29601 propelHR.com Info@propelHR.com 800–446–6567

22 | #TRENDING |

UBJ

INFORMATION YOU WANT TO KNOW

OVERHEARD @ THE WATERCOOLER Distilled commentary from UBJ readers

|

09.09.2016

BIZ BUZZ The top 5 stories from the past week ranked by shareability score

>> 250 1. New co-work space to open in the Village of West Greenville

Calories in.

Calories out.

Get your tickets now to Sports Series: Cycling with George Hincapie.

Presented by Michelin

Bike with the best of ‘em! Put on your helmets and take off from Hotel Domestique on a 30 mile ride with one of the most recognized riders in the world, George Hincapie.

euphoriagreenville.com

>> 104 2. Blue Dogs will perform at Live on the Green in Spartanburg

>> 91 3. Röchling Automtive USA plans to add 12,000 square feet of office space

RE: NEW CO-WORK SPACE TO OPEN IN THE VILLAGE OF WEST GREENVILLE

RE: BLUE DOGS WILL PERFORM AT LIVE ON THE GREEN IN SPARTANBURG

> @brantlyvest “that’s a cool space.”

> @thebluedogs “We are honored to be invited and we can’t wait to rock Sparkle City again!”

> Jamie Peterson Linder “Love it!”

RE: REMODELED BI-LO IN GREER INCLUDES PIZZA OVEN, SMOKEHOUSE > @svinsus “You can put lipstick on a pig…” > @cwhaire “Want house-smoked brisket?

The Greer BI-LO has it.” > @cricketwebber “um, they remodeled not too long ago, and now again?? #weird #whatsupwiththat”

Remember To Mark Your Calendars SEPTEMBER ����� Proudly Supported by

>> CONNECT WITH US We’re great at networking. @CWHaire @AndersonTrev @andrewmooreGVL @clandrum

@daviddykes @melindagyoung @EPietras_CJ @jerrymsalley

> @SpartOnTheGreen “It’s true! @thebluedogs are headlining our 3rd annual concert on Oct. 1th! Get tickets here: https://t.co/gSXnLr0oVz”

RE: GARY UNDERWOOD AND COMPUTER DIRECT OUTLET PREPARE FOR THE VIRTUAL REALITY BOOM > @thinkhammer “Great story about @ cdbgreenville in @UpstateBiz. Love seeing local tech recognized.”

LINKEDIN.COM/COMPANY/ UPSTATE-BUSINESS-JOURNAL FACEBOOK.COM/THEUPSTATEBUSINESSJOURNAL @UPSTATEBIZ

DIGITAL FLIPBOOK ARCHIVE >> The layout of print meets the convenience of the Web. Flip through the digital editions of any of our print issues, and see them all in one place. >> upstatebusinessjournal.com/past-issues

>> 46 4. GSP seeing record passenger traffic

>> 41 5. Gary Underwood and Computer Direct Outlet prepare for the virtual reality boom

SUBSCRIBE TO OUR EMAILS Follow up on the Upstate’s workweek in minutes.

Subscribe to our emails & receive The Inbox – our weekly rundown of the top 10 local biz stories you need to know – as well as breaking news alerts. It’s the best way to stay informed on the go.

>> upstatebusinessjournal.com/ email

ORDER A PRINT SUBSCRIPTION Style & substance are not mutually exclusive.

Our print issues look great in waiting rooms, lobbies and on coffee tables (where they age well, too). Order a year of UBJ in no time, and we’ll deliver every week.

>> upstatebusinessjournal.com/ subscribe

UPSTATEBUSINESSJOURNAL.COM

09.09.2016

|

upstatebusinessjournal.com

DATE Tuesday

9/13

WHERE DO I GO?

HOW DO I GO?

Ten at the Top Upstate Regional Summit: Creating Leading Region

TD Convention Center 1 Exposition Drive, Greenville 7:45 a.m.–1:30 p.m.

Cost: $35 (non profit), $50 (business) More info: bit.ly/tattusummit-2016

Small-Business Owners’ Forum

Greenville Chamber 24 Cleveland St. 11:30 a.m.–1:15 p.m.

Open to Chamber Investor small-business owners

Cost: Free More info: greenvillechamber.org/events

Educational Institutions Tax Seminar

Hilton Greenville 45 W. Orchard Park Drive 10 a.m–3 p.m.

Cost: $50 (includes all course materials and lunch) Register: 803-898-5800 by Sept. 12 dor.sc.gov/ted/index

Piedmont SCORE Basic Small Business Start-Up Workshop

NEXT Innovation Center 411 University Ridge, Greenville 6–8 p.m.

Cost: Free Register: bit.ly/bsbs-sept2016

NEXT Venture Pitch

ONE Auditorium 2 W. Washington St., Greenville 1:30–6 p.m.

Cost: $50 Register: bit.ly/next-venture-pitch

Thursday

9/15 Monday

9/19 Thursday

9/22

| PLANNER | 23

EVENT INFO

Wednesday

9/14

EVENTS YOU SHOULD HAVE ON YOUR CALENDAR

CONTRIBUTE: Got a hot date? Submit event information for consideration to events@upstatebusinessjournal.com.

DIRECTOR OF EVENTS & ACCOUNT STRATEGY Kate Madden

PRESIDENT/CEO

ART & PRODUCTION VISUAL DIRECTOR

Mark B. Johnston mjohnston@communityjournals.com

Will Crooks

UBJ PUBLISHER

Bo Leslie | Tammy Smith

Ryan L. Johnston rjohnston@communityjournals.com

EDITOR

Chris Haire chaire@communityjournals.com

MANAGING EDITOR

Jerry Salley jsalley@communityjournals.com

ASSOCIATE EDITOR

Emily Pietras epietras@communityjournals.com

STAFF WRITERS

Trevor Anderson, David Dykes, Caroline Hafer, Andrew Moore, Cindy Landrum

CONTRIBUTING WRITER

Melinda Young, Ariel Turner, Sherry Jackson

DIGITAL OPERATIONS MANAGER Danielle Car

MARKETING & ADVERTISING SALES REPRESENTATIVES Nicole Greer, Jenny Hall, Donna Johnston, Annie Langston, Lindsay Oehmen, Emily Yepes

IN THIS WEEK’S ISSUE OF UBJ? WANT A COPY FOR YOUR LOBBY?

UBJ milestone jackson Marketing Group’s 25 Years 1988 Jackson Dawson opens in Greenville at Downtown Airport

1988

Holly Hardin

ADVERTISING DESIGN

1997 Jackson Dawson launches motorsports Division 1993

1990 Jackson Dawson acquires therapon marketing Group and moves to Piedmont office Center on Villa.

LAYOUT OPERATIONS

SEPTEMBER 16 THE DESIGN ISSUE What will the workplace of tomorrow look like?

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

UBJ milestone

>>

with a majority of them utilizing the general aviation airport as a “corporate gateway to the city.”

In 1997, Jackson and his son, Darrell, launched Jackson Motorsports Group. The new division was designed to sell race tires and go to racetracks to sell and mount the tires. Darrell Jackson now serves as president of the motorsports group and Larry Jackson has two other children and a son-in-law who work there. Jackson said all his children started at the bottom and “earned their way up.”

Jackson kept the Jackson-Dawson branches in Detroit and others in Los Angeles and New York until he sold his portion of that partnership in 2009 as part of his estate planning.

The company now operates a small office in Charlotte, but its main headquarters are in Greenville in a large office space off Woodruff Road, complete with a vision gallery that displays local artwork and an auditorium Jackson makes available for non-profit use. The Motorsports Group is housed in an additional 26,000 square feet building just down the street, and the agency is currently looking for another 20,000 square feet.

Jackson said JMG has expanded into other verticals such as financial, healthcare, manufacturing and pro-bono work, but still has a strong focus on the auto industry and transportation. It’s

Chairman larry Jackson, Jackson marketing Group. Photos by Greg Beckner / Staff

Jackson Marketing Group celebrates 25 years By sherry Jackson | staff | sjackson@communityjournals.com

Solve. Serve. Grow. Those three words summarize Jackson Marketing Group’s guiding principles, and according to owner Larry Jackson, form the motivation that has kept the firm thriving for the past 25 years.

Jackson graduated from Bob Jones University with a degree in video and film production and started his 41-year career in the communications industry with the U.S. Army’s Public Information Office. He served during

Vietnam, where he said he was “luckily” stationed in the middle of Texas at Fort Hood.

He left the service and went to work in public affairs and motorsports at Ford Motor Company in Detroit.

After a stint at Bell and Howell, where he was responsible for managing Ford’s dealer marketing and training, the entrepreneurial bug hit and he co-founded Jackson-Dawson Marketing Communications, a company specializing in dealer training and product launches for the auto industry in 1980.

In 1987, Jackson wanted to move back south and thought Greenville would be a good fit. An avid pilot, he

learned of an opportunity to purchase Cornerstone Aviation, a fixed base operation (FBO) that served as a service station for the Greenville Downtown Airport, providing fuel, maintenance and storage.

In fact, when he started the Greenville office of what is now Jackson Marketing Group (JMG) in 1988, the offices were housed on the second floor in an airport hangar.

“Clients would get distracted by the airplanes in the hangars and we’d have to corral them to get back upstairs to the meeting,” Jackson said.

Jackson sold the FBO in 1993, but says it was a great way to get to know Greenville’s fathers and leaders

>>

2003 motorsports Division acquires an additional 26,000 sq. ft. of warehouse space

1998 1998 Jackson Dawson moves to task industrial Court

also one of the few marketing companies in South Carolina to handle all aspects of a project in-house, with four suites handling video production, copywriting, media and research and web design.

Clients include heavyweights such as BMW, Bob Jones University, the Peace Center, Michelin and Sage Automotive. Recent projects have included an interactive mobile application for Milliken’s arboretum and 600-acre Spartanburg campus and a marketing campaign for the 2013 Big League World Series.

“In my opinion, our greatest single achievement is the longevity of our client relationships,” said Darrell Jackson. “Our first client from back in 1988 is still a client today. I can count on one hand the number of clients who have gone elsewhere in the past decade.”

Larry Jackson says his Christian faith and belief in service to others, coupled with business values rooted in solving clients’ problems, have kept

2009 Jackson Dawson changes name to Jackson marketing Group when larry sells his partnership in Detroit and lA 2003

2009-2012 Jackson marketing Group named a top BtoB agency by BtoB magazine 4 years running

him going and growing his business over the years. He is passionate about giving back and outreach to non-prof non-profits. The company was recently awarded the Community Foundation Spirit Award.

The company reaffirmed its commitment to serving the community last week by celebrating its 25th anniversary with a birthday party and a 25-hour Serve-A-Thon partnership with Hands on Greenville and Habitat for Humanity. JMG’s 103 full-time employees worked in shifts around the clock on October 22 and 23 to help construct a house for a deserving family.

As Jackson inches towards retirement, he says he hasn’t quite figured out his succession plan yet, but sees the companies staying under the same umbrella. He wants to continue to strategically grow the business.

“From the beginning, my father has taught me that this business is all about our people – both our clients and our associates,” said his son, Darrell. “We have created a focus and a culture that strives to solve problems, serve people and grow careers.”

Darrell Jackson said he wants to “continue helping lead a culture where we solve, serve and grow. If we are successful, we will continue to grow towards our ultimate goal of becoming the leading integrated marketing communications brand in the Southeast.”

2011 Jackson marketing Group/Jackson motorsports Group employee base reaches 100 people

2008 2012 Jackson marketing Group recognized by Community Foundation with Creative spirit Award

pro-bono/non-proFit / Clients lients American Red Cross of Western Carolinas Metropolitan Arts Council Artisphere Big League World Series The Wilds Advance SC South Carolina Charities, Inc. Aloft Hidden Treasure Christian School

CoMMUnitY nit inVolVeMent nitY in olV inV olVe VeMent & boarD positions

OCTOBER 14 THE HOME BUSINESS ISSUE When your boss is the person in the mirror.

lArry JACkson (ChAirmAn): Bob Jones University Board chairman, The Wilds Christian Camp and Conference Center board member, Gospel Fellowship Association board member, Past Greenville Area Development Corporation board member, Past Chamber of Commerce Headquarters Recruiting Committee member, Past Greenville Tech Foundation board member David Jones (Vice President Client services, Chief marketing officer): Hands on Greenville board chairman mike Zeller (Vice President, Brand marketing): Artisphere Board,

Metropolitan Arts Council Board, American Red Cross Board, Greenville Tech Foundation Board, South Carolina Chamber Board

eric Jackson (Jackson motorsports Group sales specialist): Salvation Army Boys & Girls Club Advisory Board

November 1, 2013 Upstate bUsiness joUrnal 21

20 Upstate bUsiness joUrnal November 1, 2013

AS SEEN IN

NOVEMBER 1, 2013

Kristy Adair | Michael Allen

CLIENT SERVICES Anita Harley | Jane Rogers

EXECUTIVE ASSISTANT Kristi Fortner

HOW TO CONTRIBUTE STORY IDEAS: ideas@upstatebusinessjournal.com

EVENTS: events@upstatebusinessjournal.com

Order a reprint today, PDFs available for $25. For more information, contact Anita Harley 864.679.1205 or aharley@communityjournals.com

DIGITAL AND SOCIAL MEDIA

FACEBOOK: TheUpstateBusinessJournal LINKEDIN: Upstate Business Journal

onthemove@upstatebusinessjournal.com

Circulation Audit by

OCTOBER 28 QUARTERLY CRE ISSUE The state of commercial real estate in the Upstate

TWITTER: Follow us @UpstateBiz

NEW HIRES, PROMOTIONS AND AWARDS: UBJ welcomes expert commentary from business leaders on timely news topics related to their specialties.

Guest columns run 700-800 words.

Contact managing editor Jerry Salley at jsalley@communityjournals.com to submit an article for consideration.

UP NEXT

publishers of

Got any thoughts? Care to contribute? Let us know at ideas@ upstatebusinessjournal.com.

Copyright ©2016 BY COMMUNITY JOURNALS LLC. All rights reserved. Upstate Business Journal is published weekly by Community Journals LLC. 581 Perry Ave., Greenville, South Carolina, 29611.

Upstate Business Journal is a free publication. Annual subscriptions (52 issues) can be purchased for $50. Postmaster: Send address changes to Upstate Business, P581 Perry Ave., Greenville, South Carolina, 29611. Printed in the USA.

581 Perry Avenue, Greenville, SC 29611 | 864-679-1200 | communityjournals.com UBJ: For subscriptions, call 864-679-1240 | UpstateBusinessJournal.com