T H E F U T U R E O F R E A L E S TAT E I S S U E
N E W YO R K LOS ANGELES MIAMI HAMPTONS LAS VEGAS ASPEN
TRANSFORMATIVE TRANSITIONS: EIGHT EXIT ARCHETYPES EVERY REAL ESTATE COMPANY FOUNDER MUST KNOW
FINDING NEW TECHNOLOGY AT BLUEPRINT
DEFINING THE FUTURE OF COMMERCIAL REAL ESTATE: RESILIENCE, REUSE AND REINVENTION
An Optimist Shares His Outlook for Commercial Property in 2024 Dan Vitulli, Marcum LLP
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NATIONAL JEWISH HEALTH 55th Annual
A Winter’s Evening Celebrating the New York Real Estate & Construction Industries HONORING PETER G. RIGUARDI
Chairman and President, New York Tri-State Region Jones Lang LaSalle Brokerage, Inc.
Saturday, December 9, 2023
Pier Sixty, Chelsea Piers, New York | 6:30p.m. | Black Tie
HONORARY CHAIR Larry A. Silverstein Silverstein Properties, Inc. DINNER CHAIRS Marty Burger Silverstein Properties, Inc.
Mitchell L. Konsker Jones Lang LaSalle Brokerage, Inc.
Stephen B. Siegel CBRE
Paul N. Glickman Jones Lang LaSalle Brokerage, Inc.
Jonathan L. Mechanic Fried, Frank, Harris, Shriver & Jacobson LLP
Hilary Spann BXP
Glen J. Weiss Vornado Realty Trust
Wendy M. Siegel
EVENT CONTACT INFORMATION:
Claudia Shapiro 212.297.0857 ShapiroC@njhealth.org
Scan Now to Register or Donate njhealth.org/WintersEve
Funds raised will support research and care of lung, heart, immune and related conditions at the leading respiratory hospital in the nation.
They said it couldn’t be done. We didn’t listen.
We’ve done hard things before, we do them all the time. For most cancer patients, the usual options are surgery, chemotherapy, or radiation. So we’re working on ways to get the immune system to deploy billions of cancer-killing cells and help more patients survive. When some people experienced mysterious COVID symptoms and had nowhere to go, our team created the first Center for Post-COVID Care. It wasn’t that long ago we had to open up your whole chest for heart surgery. Now we’re pioneering a bypass that goes through a few tiny incisions. With this surgery, we can get you back on your feet in weeks instead of months. So if anyone ever tells you there’s no other way—don’t listen.
A NEW VIEW As we enter New York’s next chapter, our commitment to the City’s vitality, to our community, to our partners, to our tenants, and to our portfolio remains steadfast. We look forward to a bright and shared future.
Ownership/Management/Leasing • Tenant Representation Agency Representation • Co-GP and LP Real Estate Investments Scott Galin, Principal/CEO | 212.398.1888 | Handler-re.com
HANDRO PROPERTIES LLC
ESSH INVESTMENTS LLC
TODAY’S MARKETS MOVE MORE QUICKLY THAN EVER.
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The opinions expressed by our columnists are not reflective of the views and opinions of the publisher or editorial staff of Mann Report. Publication of such views and opinions does not constitute endorsement by Mann Report. Any reproduction, including but not limited to internet usage, is prohibited without the express written permission of the publisher.
No sacrifice short of the sacrifice of individual liberty, individual self-respect and individual enterprise is too great a price to pay for permanent peace. – Clark H. Minor
It’s not easy being a real estate owner these days, which is why advisory firms like Marcum LLP exist. In an ever-changing and always confusing landscape, Marcum’s Real Estate Group provides financial, tax and accounting services to every major facet of real estate, from REITs to institutional managers to developers and more. With our focus this month on the Future of Real Estate, there’s no better group than Dan Vitulli and his team to offer perspective. We’re thrilled to have him and Marcum on the cover. Next year will be one of growth for our company as well, as we expand our office space to offer more services to you, our readers and a bit more elbow room for our team. We’re fully
back in the office and are looking forward to seeing evem more of our neighbors. I’d be remiss if I didn’t acknowledge the events in the Middle East that are still unfolding as I write. Like everyone, I was horrified by the unconscionable terrorist attack against Israel and pray for the innocent on all sides. We from the Mann family and the Mann Publications family wish you a holiday season of peace, prosperity and joy. May we have a better world in 2024. See you next year.
16 National Realty Club Foundation Hosts Annual Golf Outing
18 Lincoln Land Services VP Honored at JNF 15th Annual Long Island Golf Classic
20 S t a t e w i d e A b s t r a c t H e l p s S t . J u d e
Children’s Research Hospital with Fifth Annual Golf Outing
24 Commercial News 28 Residential News 32 Management News
36 Tech Talk 40 Breaking News
COVER FEATURE 44
An Optimist Shares His Outlook for Commercial Property in 2024
Features 50 Transformative Transitions: Eight Exit Archetypes Every Real Estate Company Founder Must Know
Finding New Technology at Blueprint
56 R e t a i l Tr e n d s i n U r b a n M i x e d - U s e Developments: A Vision for the Future
62 Defining The Future of Commercial Real Estate: Resilience, Reuse and Reinvention
64 S o u n d p r o o f i n g , W i t h o u t W i n d o w Replacement
66 Preventing E-Bike Fires in New York City’s Commercial Buildings
Colleges 82 New Members Join Fordham Real Estate Institute Executive Advisory Council
AEC 84 Skanska Deploys Zero-Emission Construction Machinery on Active Los Angeles Project
86 54D Opens Manhattan Flagship
Departments 9 One Mann’s Opinion 14 Editor’s Letter 68 Columns 90 Executive Changes 94 Commercial Corner: Ian Bell, Managing Principal and CEO, Olive Tree Holdings
96 By the Numbers: The Highs and Lows of the First Half
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Editor’s Letter Welcome to the last issue of 2023, our annual year-end double issue. But instead of looking back, we’re looking ahead — a challenging prospect, I know, in a world that can turn on a dime. But real estate is always in the state of evolving, and our contributors, as you’ll see, have stepped up to the challenge. This year, our feature writers have taken a decidedly practical view of the future, from soundproofing windows to make our lives a touch quieter, to how construction managers can work with the supply chain to keep projects on track. Even my visit to the Blueprint proptech conference reveals that, increasingly, solution developers and their investors are looking to make tech easier and more intuitive to use. Our friend Merilee Kern shows us how individual real estate owners can be planning for their own futures as they perhaps leave this industry behind. In the meantime, whatever holidays you observe at year-end, I hope they’re filled with love and warmth. May 2024 bring us all health, happiness, prosperity and peace.
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National Realty Club Foundation Hosts Annual Golf Outing P H OTO S BY J AC K M I L L E R
Honorees Michael Kerr and Zachary Kerr, M&R Management
Don Gelestino, Champion Elevator Corp.; Guest; Jordan Witler, Vensure Employer Services and Guest
Brownette Cooke, Evans Electrical Services and Marvin E. Cooke Jr.
Dennis Graham, Thomas Mazzini and Steven Hobbs, Metropolitan Commercial Bank
The National Realty Club Foundation Annual Golf Outing was held on a beautiful October day at the luxurious Fresh Meadow Country Club. An overflow crowd of 110 golfers and 50 dinner guests played and attended the cocktail party and the festivities of the fundraiser. Fabulous gifts were given to all players at the outing
and trophies to the honorees Michael and Zachary Kerr of M&R management. Substantial gift certificates for the Danny Balin Pro Shop were also given to winners of the golf tournament. The National Realty Club (NRC) was founded in 1947 as a place for senior real estate principals and professionals to do business. The National Realty
16 MANN REPORT | NOVEMBER / DECEMBER 2023
Club Foundation was created as a branch of the NRC to raise monies for nonprofit charities that make New York a better place to live and work. “Now more than ever, this is a critical problem,” said Jeffrey Mann, NRC president and son of Irving Mann, one of the NRC’s founders. “New York has been facing tremendous challenges,
and we’re honored to come together and support the organizations that work day after day to improve the lives of all New Yorkers. "I personally thank everyone who attended and our amazing committee who organized this great day. A great time was had by all and we look forward to seeing the same and new faces next year.”
Aaron Boyajian, Goetz Fitzpatrick LLP and Frank DeLucia, Hub International
Anthony De Ingeniis, Jaimee Nardiello, Maria Kefalas and Frank Soler, Zetlin & De Chiara LLP
Jared Paioff, Jarrett Roth and Steven Sladkus, SSRGA
Lou Switzer, The Switzer Group (second from left) and guests
Zachary Kerr, M&R Management and Darin Goldstein, SDG Management
Jacob Kravel, Cara Faske, Pace Advertising and Danny Mashal
Jeffrey Mann, Mann Publications; Dean Palin, Palin Enterprises; Frank DeLucia, Hub International and Neil Garfinkel, Abrams Garfinkel Margolis Bergson LLP
Dan Vitulli, Marcum LLP; Frank Niccio, O’Connor Capital Partners; Guest and Fred Berk and Steven Fischer, Marcum LLP
NOVEMBER / DECEMBER 2023 | MANN REPORT 17
Jerry Herz and Golf Chair Mark Engel
James Slattery and honoree Michael Karger
David and Lyn Buzen
Michael Karger and Alan Steinberg
Lincoln Land Services VP Honored at JNF Annual Long Island Golf Classic Over 100 philanthropists and corporate executives in the real
Funds raised by Jewish National Fund-USA’s (JNF-USA) part-
estate and finance industries attended Jewish National Fund-
ners (donors) and event sponsors support the organization’s
USA’s 15th Annual Long Island Golf Classic at Fresh Meadow
bold and visionary initiatives that are strengthening commu-
Country Club. Since 2008, the charity event has raised over
nities and improving the quality of life for residents in Israel’s
$4 million in support of the land and people of Israel.
Negev Desert and Galilee regions.
18 MANN REPORT | NOVEMBER / DECEMBER 2023
The exclusive event honored Michael Karger, vice president
tree had been planted in Israel to celebrate his birth.
of Lincoln Land Services, for his philanthropic leadership, as evidenced by his support of numerous charities including: The
“If you believe in fate, 52 years ago, this was sent to my par-
Fresh Air Fund, the Gregory Boff Charitable Foundation, the
ents, and 52 years later I’m once again being honored by this
ALS Association and the National Kidney Foundation.
incredible organization,” he said.
Being honored by JNF-USA was particularly meaningful to
The event was chaired by Mark F. Engel, Langsam Property Ser-
Karger, who showed attendees a JNF tree certificate stating a
vices Corp. and Josh Goldman, Bargold Storage Systems.
Steve Hazelkorn and Bruce Azus
Steve Cohen and David Levine
Long Island Golf Classic champions
The Steinberg Family
Mark Engel, Michael Kesselman and Michael Kessler
Golf Chair Mark Engel, Michael Karger and Jewish National Fund-USA Long Island Board President Lyn Buzen
Photos by Ben Gabbe Photography
NOVEMBER / DECEMBER 2023 | MANN REPORT 19
Matt McAllister, Charlie Stark and Ken Meccia
Corey Moeller, Bobby Harris, Larry Charles and Keith Foisset
Statewide Abstract Helps St. Jude Children’s Research Hospital with Fifth Annual Golf Outing Statewide Abstract Corporation raised $75,200 at its Fifth Annual St. Jude Scramble Charity Golf Outing held at Westchester Hills Golf Club in White Plains, New York. This brings the total raised to date to $335,200.
president of Statewide Abstract. “St. Jude is an incredible organization that has done so much for so many children and their families and we are proud to support their efforts.”
“We are incredibly proud of the amount of money we have raised for St. Jude. Each year we bring together over 150 golfers for this event and they always step up to support this important cause,” said Ken Meccia,
Matt McAllister, chief operating officer of Statewide, spearheaded many of the efforts behind the scenes. Mark Okamoto, Statewide Foundation board member, was the overall money raiser and Golf Committee Chair,.
Richard Klein, Robert Withers and Rich Flahive
Kathy Meccia, Connie Alimena, Ken Meccia and Tracy McMahon
Tom Sialiano, Mark Zarick, Mark Okamoto, John O’Brien and Frank Cop
Mark Okamoto, Richard Sarcone and Kevin Vlad, First American PHOTOS COURTESY OF STATEWIDE ABSTRACT
20 MANN REPORT | NOVEMBER / DECEMBER 2023
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AVERY HALL SECURES $72.5M FOR GOWANUS MULTIFAMILY DEVELOPMENT JLL Capital Markets has arranged
and its joint venture partners, Decla-
$72.5 million in construction financ-
ration Partners and Bridge Invest-
ing for 544 Carroll St., a 17-story,
ment Group through their Qualified
ground-up, Class A multi-housing
Opportunity Zone vehicle. The loan
development in Brooklyn’s Gowanus
was secured through TD Bank.
neighborhood. Scheduled for completion in Q4 of JLL worked on behalf of the borrow-
2025, the mid-rise project will com-
er, Brooklyn developer Avery Hall,
prise 133 units.
Photo courtesy of JLL
READYSPACES SIGNS FOR ENTIRE BUILDING AT 250 EAST SANDFORD BLVD.
Simone Development Companies
counsel Patrick Doyle represented
announced that ReadySpaces,
Simone Development in the lease.
a warehouse storage provider for small businesses, has signed
ReadySpaces provides flexible ware-
a long-term lease for the entire
house space for small and mid-size
110,300-square-foot building at
businesses, operating 32 warehouse
250 East Sandford Blvd. in Mount
facilities nationwide with a customer
Vernon, New York. Josh Gopan, vice
base of over 2,000 businesses, and
president of leasing, and in-house
more upcoming launches.
Photo courtesy of Simone Development Companies
SPIN OPENS MIDTOWN FLAGSHIP
Ping pong social club Spin opened
audience, Spin Midtown offers an es-
Spin Midtown, a flagship location at
cape and an immersive social experi-
1626 Broadway. Spin Midtown has
ence. Guests are transported into the
evolved its offerings to the public,
underground venue following a trail
while remaining true to the mission
of neon lights to a wall of art and
of connecting people around the
10 ping pong tables surrounded by
ping pong table, the company said.
inviting lounge seating and a magnetizing wrap-around bar featuring
Catering to an eclectic New York City Photo courtesy of Spin 24 MANN REPORT | NOVEMBER / DECEMBER 2023
a customizable ticker screen.
# 4 Manhattan Medium Team at Douglas Elliman* Frances Katzen LICENSED ASSOCIATE REAL ESTATE BROKER FKATZEN@ELLIMAN.COM | M: 917.705.8575 | O: 212.350.8575 @FRANCESKATZEN | @THEKATZENTEAM
elliman.com © 2023 DOUGLAS ELLIMAN REAL ESTATE. EQUAL HOUSING OPPORTUNITY.
575 MADISON AVENUE, NY, NY 10022. 212.891.7000. *BASED ON DOUGLAS ELLIMAN 2022 MANHATTAN MEDIUM TEAMS SALES VOLUME AND GROSS COMMISSION INCOME.
ARIEL PROPERTY ADVISORS ARRANGES $19.1M SALE OF BRONX MIXED-USE
The Jewish Museum 26th Annual Most Amazing New York Art & Design Tour
Corenet Women’s Golf Outing Partners Ariel Property Advisors (Ariel) has with Bees Trees Water announced the $19.1 million sale of
REBNY Hosts Annual Golf & Tennis Outing
a prime affordable multifamily and
UJA-Federation of New York’s Hospitality units. It benefits from tax abateDivision Honors Ian Schrager
ments through ICIP and 421a.
commercial property at 950 West-
Ariel Founding Partner Victor Sozio
chester Ave. in the Bronx.
along with Senior Director Jason Gold, Director Howard Raber, Pres-
The 12-story building includes 111 CHIP’s 21st Annual Golf & Tennis Outing
ident Founder Shimon Shkury 15thand Annual Hamptons Happening
residential units, a community facility
Supports and DirectorSWCRF Daniel Mahfar repre-
with seven office units and two retail
sented the seller.
Photo courtesy of Ariel Property Advisors
SJTA AND IRG AGREE ON NJ INDUSTRIAL DEVELOPMENT LEASE
Crohn’s & Colitis Foundation
Developer Industrial Realty Group
mixed-use development with the po-
LLC (IRG) has reached agreement
One Mann’s Opinion
tential for multi-modal infrastructure.
with the South Jersey Transporta-
tion Authority (SJTA) on a ground
In July 2022, SJTA authorized Execu-
Having a Voice: Student Input Aids Design of lease of approximately 400 acres in Pratttive Director Stephen F. Dougherty to Residence the northwest corner of the Atlantic
execute an agreement for the devel-
City International Airport (ACY). SJTA
opment. IRG has also been work-
Editor’s Letter and IRG agree to work cooperatively
ing with Atlantic County Economic
towards the construction of a new,
Alliance (ACEA) on the deal.
CLUB PILATES SIGNS FOR NEW MIDTOWN EAST LOCATION AT 850 SECOND AVENUE
Club Pilates has opened a 3,500-
Delgorio and Brett Greenberg, along
square-foot location on the ground
with Ariel Schuster, Ross Berkowitz,
floor of The Delegate, a condo tower
Andrew Stern and Jake Siegel of
built by Jack Resnick & Sons.
Commercial Corner: By The Numbers: Jack Resnick & Sons, which owns Club Pilates was represented by Bruce Schanzer, president and More than Warehouses and operates retail condominiRipco’s Emily Kripitz and Beth Rosen, CEO of Cedar Realtythe Trust um at the base of The Delegate,
who are the exclusive brokers for the
was represented in-house by Fran
franchise in Manhattan.
Photo courtesy of Jack Resnick & Sons Bruce Schanzer 26 MANN REPORT | NOVEMBER / DECEMBER 2023
Schulte Roth & Zabel’s Real Estate Group
TRUSTED ADVISERS ON DEALS THAT DEFINE THE MARKET COMPLETING BILLIONS OF DOLLARS IN TRANSACTIONS ANNUALLY FOR MANY OF THE MOST INFLUENTIAL PARTICIPANTS IN THE REAL ESTATE INDUSTRY
Schulte Roth & Zabel LLP New York | Washington DC | London www.srz.com The contents of these materials may constitute attorney advertising under the regulations of various jurisdictions.
SALES LAUNCH AT UES GIORGIO ARMANI RESIDENCES SL Green Realty Corp., in partnership
Manhattan flagship at the corner of
with Giorgio Armani, have com-
East 65th Street — where an Armani
menced sales at 760 Madison Ave.,
store has stood since 1996 — this
The Giorgio Armani Residences de-
is the first-ever residential offering
velopment condominium project. At
in Manhattan where Giorgio Armani
press time, five of the 10 residences
personally guided the interior design.
remain available for purchase. The residences are expected to be Situated above Armani’s new
complete in summer 2024.
Photo courtesy of Dbox
CENTURY PLAZA'S TOWER RESIDENCES REBRAND AS PARK ELM AT CENTURY PLAZA
Century Plaza in Century City in
representing owner Reuben Broth-
Los Angeles has rebranded its twin
ers. “This name and the new brand-
44-story residential towers as Park
ing encapsulate the grandeur of the
Elm at Century Plaza, evolving from
location, the architectural innovation
the Century Plaza Tower Residences.
and the unparalleled lifestyle we’ve curated.”
“The transition to 'Park Elm' is more than a rebranding; it's a culmination
Park Elm is the core of Century Pla-
of the vision,” said David Reuben, Jr.,
za's $2.5 billion transformation.
Photo via PRNewswire
SOTHEBY'S INTERNATIONAL REALTY EXPANDS IN FLORIDA
Sotheby’s International Realty’s
Prieto, who brings more than two
independently owned and operated
decades of real estate experience to
affiliate, Premier Sotheby's Interna-
the firm. The company will service
tional Realty, continues to expand
the city of Ocala and Marion County.
in Florida, with a new office in Ocala,
The expansion builds upon Premier
its 80th affiliated office in the state.
Sotheby's International Realty’s existing locations in Florida and North
The new office will be led and man-
Carolina, which now consist of a
aged by Managing Broker Carrie
total of more than 40 offices.
28 MANN REPORT | NOVEMBER / DECEMBER 2023
SALES BEGIN AT ANDARE RESIDENCES BY PININFARINA IN FORT LAUDERDALE Related Group and Italian design
condominium set to rise above Las
house Pininfarina have launched
Olas Boulevard in nearly 20 years.
sales for Andare Residences by Pininfarina, a new boutique con-
Residences, which range from 1,800
dominium development on Fort
square feet to over 4,300 square
Lauderdale's Las Olas Boulevard,
feet, feature open-concept living
just two miles from Las Olas Beach.
areas, floor-to-ceiling windows and
Featuring 163 bespoke residences,
views of the New River and the
the 45-story tower is the first luxury
Photo courtesy of Related Group
LENDLEASE, LMXD AND DAIWA HOUSE ANNOUNCE CLOSINGS AT CLAREMONT HALL
Photo courtesy of Lendlease
Lendlease, LMXD (an affiliate of L+M
building, designed by Robert A.M.
Development Partners) and Daiwa
Stern Architects, provides residents
House Texas Inc., announced that
with majestic views of the Hudson
closings have commenced at Clare-
River, Riverside Park, Central Park
mont Hall in Morningside Heights.
and Midtown Manhattan.
Situated within the campus of Union
Claremont Hall buyers can choose
Theological Seminary (UTS), the
from 165 condominiums for sale
41-story, mixed-use condominium
ranging from one to four bedrooms.
ZILLOW: HOME VALUES SLIP IN SEPTEMBER
Home values took an uncharacteristic
0.1% and 0.4%.
step down in September, albeit a small
affordable markets, led by Hartford, Connecticut (up 11.1%); Milwaukee,
one at 0.1%, according to the latest
The typical home value now stands
Wisconsin (8.5%); Providence, Rhode
Zillow market report. Competition is
at $350,091 nationally, up roughly
Island (6.4%) and Virginia Beach, Vir-
easing faster than normal this fall as
2% from this time last year. Of the
ginia (6.2%). The largest declines are
buyers contend with the highest mort-
50 largest major metropolitan areas,
in pandemic-era hot spots Austin, Tex-
gage rates in more than 22 years.
31 have home values higher than a
as (-10%); Las Vegas (-4.3%); Phoe-
Between 2015 and 2019, monthly
year ago. The strongest annual home
nix (-4.2%) and San Antonio (-2.5%),
growth in September hovered between
value appreciation is in relatively
as well as New Orleans (-8.8%).
30 MANN REPORT | NOVEMBER / DECEMBER 2023
DESIMONE CONSULTING ENGINEERING ACQUIRES DECIPHER Full-service engineering and con-
offices in London, Manchester and
struction consulting firm DeSimone
Dubai, Decipher offers bespoke con-
Consulting Engineering has acquired
struction consulting services, includ-
construction consultancy firm Deci-
ing quantum and project advisory,
pher. Decipher amplifies DeSimone’s
quantity surveying, project planning,
Construction Consulting Services
dispute resolution, expert testimony
arm in the United Kingdom.
and training. The acquisition of Decipher follows the addition of structur-
Based in Cheshire, England, with
al engineering firm DP Squared.
Photo courtesy of DeSimone
PEGASUS RESIDENTIAL TO MANAGE ARMADA HOFFLER'S CHANDLER RESIDENCES
Pegasus Residential, a third-party
passes 95,000 square feet of cre-
property management firm, has
ative loft office space, 40,000 square
formed a strategic collaboration
feet of retail and structured parking.
with Armada Hoffler to manage
Pegasus Residential will take the
The Chandler Residences, a new
helm of property management.
luxury development comprising 123 apartments, nine townhomes and
Amenities including a clubroom, a
five high-end lofts in Roswell, Geor-
scenic sky lounge and a rooftop sky
gia. The development also encom-
deck with a pool.
Photo via PRNewswire
SKANSKA TO BUILD CANCER CENTER IN LIVINGSTON, NJ
Skanska has signed an additional,
meters (approximately 140,000
$85 million contract with RWJBarn-
square feet), will provide outpatient
abas Health to build an ambulatory
cancer treatment. The plans call for a
care cancer center in Livingston,
parking garage also to be construct-
ed on the site.
The five-story building on the
Construction started in September
Cooperman Barnabas Medical Cen-
2022 and completion is scheduled
ter campus, totaling 13,000 square
toward the end of 2025.
Photo courtesy of Skanska 32 MANN REPORT | NOVEMBER / DECEMBER 2023
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TENNANT COMPANY ADDS TWO MORE SCRUBBERS TO FLEET Tennant Company has unveiled
when maneuvering in tight spaces
two additional products to its line of
and is suited to retail, healthcare, ed-
walk-behind floor scrubbers — the
ucation and hospitality applications.
T260 and the T391.
The T391 is a mid-size, walk-behind scrubber that comes in two differ-
Photo via Business Wire
The T260 is a small, 20-inch
ent scrub path sizes (28-inch and
walk-behind floor scrubber designed
32-inch). It is well-suited to clean
for quick, straightforward operation.
in healthcare, education, retail and
Its compact size allows high visibility
TOPCON EXPANDS CONSTRUCTION LAYOUT PORTFOLIO WITH LN-50
Photo via Business Wire
Topcon Positioning Systems has
50 is designed specific to homebuild-
launched the LN-50 3D laser, the
ers, mechanical, electrical, plumbing
latest addition to the LN layout navi-
(MEP) trades, concrete contractors
gator family of instruments. Intended
and others — regardless of their
to be an affordable and easy-to-use
digital technology experience — to
solution for digital layout, the LN-50
achieve high-speed precision in their
has a 50-meter (164-foot) range
measuring and layout work, mitigat-
as compared to the longer-range,
ing the risk of errors that can lead to
full-featured LN-150. The new LN-
F.W. WEBB OPENS NEW LOCATION IN SCHENECTADY, NY
F.W. Webb Company, a wholesale
In addition to being a convenient,
distributor of plumbing, heating,
one-stop source for an extensive
HVAC, LP gas, refrigeration, pipe,
inventory of high-quality products,
valves and fittings in the Northeast,
expert advice and customer service,
opened its newest wholesale loca-
the Schenectady store features a
tion at 586 Broadway in Schenect-
training center that will offer live
ady, New York. The 20,500-square-
demonstrations, hands-on training
foot store is F.W. Webb’s fifth in the
and certifications. F.W. Webb Com-
pany was founded in 1866.
34 MANN REPORT | NOVEMBER / DECEMBER 2023
Bringing Innovation to
property management Matthew Adam Properties is a long-time leader in bringing innovative ideas and programs to the properties we manage. Contact us to find out how we can innovate your building to a new level.
Ira Meister, President | 375 Pearl Street - 14th Floor | New York, NY 10038 T: 212.699.8900 F: 212.699.8939 email@example.com | matthewadam.com
T E C H TA L K
COMPSTAK UNVEILS COMPSTAK ONE SUITE Commercial real estate data plat-
form CompStak has launched
Photo via PRNewswire
CompStak One, a suite of products
Using verified CompStak data, com-
designed to provide insights and
bined with new datasets and meth-
analytics for industry profession-
odologies, CompStak One provides
als. CompStak One will combine its
users with extensive tools for making
vast database of lease comps, sale
investment decisions, valuing prop-
comps, property information, loan
erties and understanding market
data and analytics into a singular,
trends, the company said.
MYTRACK HELPS CUSTOMERS TAKE ADVANTAGE OF TAX CREDITS
Management Controls Inc. (MCI),
prenticeship requirements to qualify
is helping its customer base utilize
for the 48C(e) tax credit.
the Inflation Reduction Act’s 48C(e) tax credit with its MyTrack Platform.
Using existing Track data, customers
MyTrack automates time tracking
can request MCI assistance with
and can show the percentage of ap-
providing the data that contains
prentices companies have on hand,
wage-rate benchmarking to simplify
helping companies confirm they
the process of applying for
meet initial prevailing time and ap-
REAL ESTATE BUSINESS ANALYTICS UNVEILS REBA RENT
Real Estate Business Analytics
needs of today’s rental housing pro-
(REBA) has introduced REBA Rent,
fessionals, REBA Rent supports the
a pricing and revenue manage-
intricate demands of the multifamily
ment (PRM) system that leverages
sector that leads not only to a more
advanced analytics and strategic
efficient and more effective PRM
insights to empower multifamily
strategy, but also to one that builds
trust with operators and asset managers. REBA Rent is in beta testing
Developed to address the evolving
36 MANN REPORT | NOVEMBER / DECEMBER 2023
with select clients.
Concierge Concierge Medicine Medicine from from Mount Mount Sinai Sinai New New York. York. Here Here inin The The Palm Palm Beaches. Beaches.
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T E C H TA L K
ENTRATA LAUNCHES HOMEBODY, GIVING RESIDENTS EASY ACCESS TO SERVICES Multifamily industry operating sys-
affordability of the current housing
tem Entrata announced Homebody,
and rental markets. They are now
a fully integrated resident financial
integrated directly into Entrata.
services offering. Homebody will initially consist of three core prod-
Property managers will maintain a
ucts including rent reporting, deposit
single login for their residents and
alternatives and renters insurance to
their teams for a seamless experi-
help address common barriers to en-
ence. Site teams will now be able to
try for many residents, including the
point residents to a single source.
HOUSE ANALYTICS UNVEILS BRAND EVOLUTION AND EXPANDED SOLUTIONS
House Analytics, known for College
of data-driven solutions tailored to
House, a provider of data coverage
various real estate segments. From
and analytics across 270-plus colle-
student housing property analysis
giate markets, has rebranded to en-
to senior housing market insights,
compass College House and Senior
House Analytics partners gain ac-
House, expanding data solutions for
cess to sector-specific real-time data
commercial real estate.
and actionable insights, enabling timely and well-informed decisions
It now offers a comprehensive range
in the dynamic real estate market.
TITLELOOK EXPANDS TO OFFER LENDERS AUTOMATED TITLE REVIEW
TitleLook by Mainspring Services is
on to other programs and processes.
offering automated title review to lenders, GSEs and other organi-
TitleLook extracts previously inac-
zations in mortgage banking. The
cessible information and converts it
Software as a Service (SaaS) solu-
into standardized digital data. Once
tion reviews title reports from any
digitized and organized, title infor-
underwriter or title agent to provide
mation is examined against Title-
automatic and consistent analysis,
Look’s knowledge library as well as
as well as digital data that can flow
38 MANN REPORT | NOVEMBER / DECEMBER 2023
Fried Frank Where major real estate transactions happen “An extremely talented real estate group with an impressively deep bench: the team is ideal for handling the most complex matters.” — Chambers USA
HUDSON YARDS Counsel to Related Companies and Oxford Properties Group in connection with the development of and all leasing activities at the 26-acre Hudson Yards on the West Side, the largest private development in Manhattan since Rockefeller Center. CHELSEA MARKET Counsel to Google in connection with its US$2.4 billion acquisition of Chelsea Market in New York City. BLACKROCK HEADQUARTERS Counsel to BlackRock in its 850,000square-foot lease for its planned headquarters relocation to 50 Hudson Yards.
MANHATTAN WEST Counsel to Brookfield Property Partners on all aspects of the development of Manhattan West in the Hudson Yards District, including its recent lease to the National Hockey League. PENN STATION Counsel to Vornado Realty Trust and Related Companies on the redevelopment of Penn Station, including the redevelopment of the James A. Farley building and construction of Moynihan Train Hall. CENTRAL PARK TOWER Counsel to J.P. Morgan, as lead lender, in its US$900 million construction loan syndication to Extell Development for the development of Central Park Tower.
New York | Washington, DC | London | Frankfurt | friedfrank.com Attorney Advertising. Prior results do not guarantee a similar outcome.
ONE VANDERBILT Counsel to SL Green Realty Corp., including all zoning approvals, in connection with the development and leasing of One Vanderbilt Avenue, an iconic 1,401-foot tall, 1.7 million square foot office tower being constructed on the full block to the west of Grand Central Terminal. 20 TIMES SQUARE Counsel to Maefield Development in its approximately US$1.5 billion acquisition of the EDITION hotel, retail, and signage project known as 20 Times Square. JP MORGAN CHASE HEADQUARTERS Counsel to JP Morgan Chase in connection with various aspects of its planned 2.5-million-square-foot headquarters redevelopment at its 270 Park Avenue location.
ABS SIGNS HIGH-END FASHION TENANTS AT 210 11TH AVE. ABS Partners Real Estate has
the designer and fragrance brand,
signed leases with two high-fashion
leased 3,740 square feet of head-
tenants at 210 11th Ave., newly re-
quarters showroom and office space
branded as The Chelsea Arts Center.
on the second floor for five years.
Designer Gabriela Hearst has ex-
The ABS brokers were Audrey
panded its space to 11,741 square
Novoa, Benjamin Waller and Gregg
feet, comprising the full floor at the
Schenker. Allyson Bowen of Savills
building, while Narciso Rodriguez,
represented Narciso Rodriguez.
Photo courtesy of ABS Partners
GLOBAL CEMENT AND CONCRETE ASSOCIATION ELECTS GONZÁLEZ PRESIDENT Fernando A. González, CEO of
His priorities during his two-year
Cemex, has been elected as the new
term include encouraging regulation
president of the Global Cement and
that diverts municipal and industrial
Concrete Association (GCCA). The
waste from landfills to energy solu-
GCCA’s members account for 80% of
tions including substitution of fossil
global cement production capacity
fuels in cement kilns, promoting
outside of China and have commit-
building codes and norms that allow
ted to achieving net zero CO2 emis-
the extensive adoption of lower-car-
sions by 2050.
bon cement and concrete products.
Photo via Business Wire
JPAR PARTNERS WITH CUBICASA
In one of its first partnerships with
a residential real estate brand, JPAR
Photo via PRNewswire
has announced a partnership with
The CubiCasa app can scan the
CubiCasa, a creator of floor plan
property using almost any mobile
technology to bring a floor plan to
device. Agents can then upload the
every listing. Effective immediate-
scan on-site or at their convenience.
ly, agents may now register for a
CubiCasa transforms the scan into a
JPAR-sponsored CubiCasa ac-
professional-grade floor plan, which
count, accessible through the JPAR
is delivered within six to 24 hours.
40 MANN REPORT | NOVEMBER / DECEMBER 2023
Understanding Understanding tax tax planning planning can can be be aa taxing taxing experience. experience. It It requires requires aa dynamic dynamic knowledge knowledge of of evereverchanging codes codes and and regulations, regulations, plus plus aa deep deep understanding understanding of of your your individual individual needs needs and and goals. goals. changing That’s That’s where where Janover Janover comes comes in. in. We We get get to to know know both both you you AND AND your your business. business. We We then then leverage leverage our knowledge knowledge of of the the system system to to tailor tailor aa detailed detailed tax tax plan plan that that is is unique unique to to your your speciﬁc speciﬁc needs. needs. our At At Janover, Janover, our our greatest greatest value value is is the the ability ability to to help help you you look look at at the the whole whole picture picture -- numbers, numbers, family, business. You’ve worked hard to have it all... wouldn’t you like to keep it? family, business. You’ve worked hard to have it all... wouldn’t you like to keep it?
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NELSON WORLDWIDE PARTNERS WITH BANGALORE-BASED STUDIO CHINTALA Architecture, design and strategy
team in Bangalore and build greater
firm Nelson Worldwide announced
efficiency into the overall firm.
a strategic partnership with Studio Chintala, an architecture firm that
In addition to the overlap of time
will operate as Nelson’s Bangalore
zones in both countries, creating a
studio, growing its footprint in India.
24-hour work cycle, Studio Chin-
Studio Chintala will mirror the firm’s
tala leadership and staff possess
practice areas, allowing all members
extensive experience working in the
to collaborate with the extended
REDFIN: HOMEBUYERS MUST EARN $115,000 TO AFFORD THE TYPICAL U.S. HOME
A homebuyer must earn $114,627 to
“Although new listings are ticking up
than a year ago to afford the typical
afford the median-priced U.S. home,
slightly, inventory is still near record
home, the biggest percent increase of
up 15% ($15,285) from a year ago
lows as homeowners hang onto their
the major U.S. metros. Homebuyers in
and up more than 50% since the
low mortgage rates—and that’s prop-
Miami need to earn $143,000 annually
start of the pandemic, according to
ping up prices,” said Redfin Economics
to afford the area’s typical monthly
tech-powered brokerage Redfin. The
Research Lead Chen Zhao.
mortgage payment of $3,580, and
median household income was roughly
Newark buyers need to earn approxi-
$75,000 in 2022 (the most recent year
In both Miami and Newark, New Jer-
mately $160,000 to afford that area’s
for which income data is available).
sey, homebuyers must earn 33% more
NORTH BRIDGE ANNOUNCES $50M C-PACE FINANCING FOR BERKELEY HOTEL
North Bridge announced a $50 mil-
hotel financing to date.
lion commercial property-assessed clean energy (C-PACE) refinancing
The LEED Gold was developed by
for the Residence Inn Berkeley, a
the founders of Pyramid Global Hos-
331-key, full-service hotel in Berke-
pitality. The financing was arranged
ley, California. This closing rep-
by Lantern Real Estate Advisors.
resents the largest C-PACE trans-
Prime Finance provided a mezzanine
action for the hospitality industry in
loan alongside a senior loan from a
2023 and the fourth largest C-PACE
Photo courtesy of North Bridge 42 MANN REPORT | NOVEMBER / DECEMBER 2023
RSA is the largest real estate trade association in New York. We’re a non-proﬁt that has one priority: Housing New York Since 1983, the Rent Stabilization Association has worked for property owners in good times and bad. Now, during a public health crisis that is straining the economics of our industry, we are working hard to keep tenants in their homes and ensure that owners can continue providing safe and adequate housing. RSA represents over 25,000 members with more than one million apartments. We provide cost effective and practical solutions to help owners run their buildings. In Albany and at City Hall, we are a forceful and consistent voice for the common sense needs of property owners. Our membership is deeply diverse and in every neighborhood. Though government and policy is unbalanced now, we’ve fought back through tough times before. And we’re doing it now. We advocate for programs and funding. We provide services to help our members comply with all laws and regulations.
We ﬁght against reckless policies that unfairly target the industry. Our counselors help members with any problems or government agency issues that come up.
Our monthly RSA Reporter is an industry must-read, always providing information necessary to keep owners up to date on compliance issues and other policies. We have weekly email blasts, policy action alerts, and updates on political and legal issues. We are constantly ﬁghting for policy that provides a fair balance to the needs of both building owners and their tenants.
123 William Street, New York, NY 10038 · 212-214-9200 · WWW.RSANYC.ORG
C O V E R S T O RY
Shares Their Outlook For Commercial Property In 2024
As partner-in-charge of accounting and advisory services firm Marcum’s national real estate practice, Dan Vitulli relies on more than two decades of experience in the industry to deliver his clients actionable advice on everything from audits to acquisitions. His diversified practice covers all asset classes including residential, commercial, hotels and industrial properties. No stranger to forecasting, Vitulli counsels clients on what they can anticipate as they wrap up a tough 2023 and look toward what they hope to be brighter horizons. With one eye on the difficulties introduced and stemming from the pandemic and another on what’s to come, Vitulli’s outlook for the year ahead balances a healthy optimism with the caution and patience of a practically minded realist. Looking Back: Closing the Book on a Difficult Period With the poise of an industry veteran, Vitulli lists the industry’s challenges over the past few years: rising rates, falling demand, mortgage obligations coming due and the emergence of a remote workforce.
DAN VITULLI V I T U L L I P H OTO CO U RT ESY O F M A RC U M L L P
44 MANN REPORT | NOVEMBER / DECEMBER 2023
C O V E R S T O RY
“In the short term,” he said, “all of these issues will continue to affect the industry, particularly in gateway and tertiary markets, and for property owners with bills coming due.” Vitulli was relatively early in his career during the Great Recession. He saw first-hand the consequences of that broad economic recalibration, as well as a strong and unexpectedly swift recovery. With that experience in mind, he is among the industry’s senior career professionals who can recognize the unique troubles of an industry in flux without losing sight of the opportunities in a troubled market. From his early instructive experience, he has internalized the importance of facing challenges without getting bogged down by them. “To serve clients, you need to be able to help them through their immediate concerns and recognize the gravity of the difficult circumstances they may be facing. But it’s just as important, or maybe more so, to keep an eye on the horizon, see what’s coming, and help identify opportunities that might be easy to miss,” Vitulli said. “A client mired in challenges can miss the forest for the trees. Offering a counterpoint isn’t just about morale; it’s a great way to deliver value in a challenging environment. Be the extra pair of eyes they need to see what they may not be able to. It’s the same principle in more favorable
circumstances. In those cases, you
— offer the best product. In
negative implications when it
might say be saying the opposite,
most cases, that means investing
comes to the future of interest
‘Plan for the rainy days.’”
in modernization or expanding
rates, I think it’s a promising sign
the amenities available.”
for commercial property. A lot of
What Vitulli sees ahead in 2024
businesses and executives have
is, if not a complete course cor-
Vitulli’s optimistic outlook centers
had a few years to experiment
rection, at least the prospect of
on the hope that interest rates
and now know what they’re miss-
significant positive changes within
will stabilize in 2024 and indica-
ing with a remote workforce,” he
tors suggesting that hybrid work
noted. “No matter what the fu-
arrangements are bringing em-
ture of work looks like, there will
The Long Term: Inflection Point
ployees and employers alike back
be a need for the shared space
According to Vitulli, 2024 could
into commercial office buildings.
offices offer. We may not see a
prove to be a turning point for
return to the standard five-day
commercial office property — par-
“While we have seen rents com-
workweek across the board, but
ticularly for owners and developers
ing down in terms of cost per
there’s less appetite for fully re-
with enough accessible capital to
square foot and vacancies increas-
mote work arrangements.”
build out the amenities renters seek
ing, revitalization efforts will ena-
in a more favorable market.
ble B & C class buildings to com-
Analyzing the Silver Lining
pete for those corporate tenants
He pointed to one of America’s
“Renters of office space know
that are just starting up, relocat-
most resilient post-pandemic mar-
the position they’re in. From that
ing, expanding, and experiencing
kets as indicative of where the glob-
perspective, it’s easy to prior-
growth,” he observed.
al market may be headed.
efforts because we’re back to the
Furthermore, “while high employ-
“In Miami, values aren’t just hold-
first rule in competitive business
ment may have some potential
ing; they arere, in some cases,
itize your business development
NOVEMBER / DECEMBER 2023 | MANN REPORT 45
C O V E R S T O RY
actually rising,” he said. “A lot of
But there can be too much of a
companies found it appealing
to uproot and move to Miami
building is a marvel that’s hard For owners and developers
to replicate without a complete
outside of South Florida, he
rebuild. Still, renovated Class-
and South Florida, particularly
“Miami itself is losing some of
offered tried-and-true advice
B and -C buildings can deliver
those in private equity. They’re
its luster with the influx of ar-
that has held up over the ag-
the advantages that small and
attracted by the tax laws and
rivals,” Vitulli continued. “Low
es, namely, to tempt renters
medium-sized businesses will
the weather. The knock-on
living costs were part of the
through revitalization and ren-
find very attractive,” he said. “I
effect is that the real estate
initial attraction, but more
ovation. But what exactly does
worry most for the properties
industry there is insulated from
people have arrived, leading to
revitalization mean to him?
that can’t afford to compete in
the pain other markets are fac-
higher prices on standard ex-
ing. Not every city can be as ap-
penses. That’s caused renters to
“From my perspective, the
are cautious to a fault. I expect
pealing as Miami, but Miami is
look outside of Miami, allowing
term covers everything from
that those who are content to
on the crest of a wave that will
other Florida communities to
improving on-site amenities
stand still right now will be at
eventually arrive elsewhere.”
get some of the benefits that
to a complete re-zoning or
the greatest risk of being left
Miami has enjoyed.”
rebuild. The modern Class-A
46 MANN REPORT | NOVEMBER / DECEMBER 2023
this way, as well as those that
C O V E R S T O RY
had relied on it for years to reach
Despite a relatively rosy outlook of
predictions can be worth, but we
Companies that don’t have capital
consumers. The concern was
what’s ahead, Vitulli is realistic about
do know that before rates can
to invest can still attract tenants
borne out and realized in some
the short term. More pain is coming
come down, they’ll need to stop
in their own ways.
ways, but in others, it was mas-
over the next several months.
rising. And for the market to feel
sively over-exaggerated,” he said.
confident in expansion, we will
“The new way of working is all
“These sprawling properties may
“A lot of the market is underwa-
need to feel that rates are stable
about accommodation and com-
not be home to the same stores,
ter, with mortgages coming or
and advantageous to investors, so
promise. Developers that can’t
but they didn’t go anywhere,
past due. There are workouts be-
that’s something concrete to look
invest in large-scale or costly ren-
and they’re still bringing people
ing hashed out, and lenders and
ovations can give tenants what
out in large numbers. They didn’t
banks reclaiming properties. For
they want in other ways,” Vitulli
die out as predicted by so many.
example, we are seeing buildings
Having found so much silver lin-
suggested. “Maybe by being more
They just became something else
move for deep discounts in San
ing, though, does Vitulli lose sleep
flexible with their agreements or
— and in the new forms they’ve
Francisco and Chicago,” he said.
over a worst-case scenario?
incorporating shared spaces that
taken, they’re successful.”
“Those that aren’t selling may be
tenants can use for events. Being
the subject of conversations be-
“Certain sectors are strong, par-
creative and accommodating
Office properties may not ulti-
tween lenders and borrowers, but
ticularly the industrial and rental
can help close deals in this super
mately transform into spaces for
certainly there are some positive
markets, which are doing well.
competitive market — and those
entertainment centers, multifamily,
outcomes there as well. In most
When you consider repurposing,
are major selling points that come
or industrial properties like malls,
cases, I think banks and lenders
and the success smaller buildings
at no cost.”
but Vitulli sees a similar trajectory
would much rather figure out
have had transforming into resi-
for distressed office space.
workable extension and restruc-
dential conversions, there will be
It’s a comforting thought that the
turing plans than assume owner-
use cases for virtually everything.
old rules still apply. Despite tight
“Retail was in a slump for years
ship of commercial property, so
It might be tougher with larg-
lending and less demand, the
just as [other] commercial real
there’s a lot on the table for those
er buildings, but those conver-
secret to success remains offer-
estate is now. In periods of dis-
with flexible lenders. With that
sions are underway in places like
ing the best option. Is it wishful
tress, firms with foresight acquire
said, special servicers and real es-
Chicago, so we will wait and see
thinking? Vitulli doesn’t think so.
properties they feel are underval-
tate attorneys are certainly busy
how they turn out,” he said.
He’s seen the same story play
ued. When things look bleakest
now and will continue to be.”
out in another sector, albeit on a
for a sector, there are still folks
out there with a vision for what
Like just about everyone, Vitulli
be seeing more buildings going
is possible,” he said. “Bold strat-
is watching the actions of the
through the bankruptcy process,
“The parallel I like to draw is to
egies don’t always succeed, but
Federal Reseve closely.
the American mall. For years, it
in countless cases, companies
was a cultural touchstone and
that take risks on new ideas have
“If they don’t raise rates at the
“Even in those cases, while dev-
home to local branches of some
been proven right. It just takes
next several opportunities, there
astating for one party, someone
of the world’s premier brands.
ingenuity to see the opportuni-
will be more comfort that we’ve
is on the other side of the bank-
Then things changed with the
ty and capital to take the project
found a steady state for the mar-
ruptcy,” he added. “Beyond that,
internet, and it wasn’t long until
on. I have no doubt that there
ket, prices will have reached their
it’s also true that even the most
the mall was declared a product
are many such visionaries with
natural bottom, and we will see
troubled infrastructure asset can
of a bygone era. Between e-com-
designs on how commercial prop-
deal activity kick on. We’ve heard
have huge value in land costs.
merce platforms, efficient global
erty will evolve.”
a lot about how we’ll land eco-
That’s one of the great things
shipping, and other modern con-
The absolute worst case might
nomically, soft, hard, or some-
about the real estate industry:
veniences, the mall was less and
The Short Term: Transition
where in between,” he said. “That
there is fundamental, tangible val-
less appealing to the retailers that
ongoing conversation shows what
ue almost anywhere you look.”
NOVEMBER / DECEMBER 2023 | MANN REPORT 47
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Transformative Transitions: Eight Exit Archetypes Every Real Estate Company Founder Must Know By Merilee Kern
A real estate founder can have an entirely new career after departing
Business transitions are important for several reasons. They enable real estate company founders to navigate the opportunities and challenges that come with change, often fostering continued innovation and success in an ever-evolving marketplace. In the daunting, yet exhilarating, journey of real estate sector entrepreneurship, founders traverse various roles that evolve with their venture. Today’s thriving U.S. economy, marked by accelerated growth, is providing a favorable environment for founders to move on to the next phase of their professional lives. For those traversing the entrepreneurial world, in particular, these transitions mark a time of great change — and the unknown that lies ahead can spur tremendous stress. The key is understanding how an exit will operate so that you elegantly navigate the situation. A real estate founder’s exit protocol is a crucial consideration as he or she, and investors, plan to exit their investments while maximizing returns. For real estate companies, the exit paradigm should be intentional and proactive, not reactive to the unforeseen, which can undermine a seamless transition that maximizes value for all stakeholders involved. “Whether you are leaving corporate America to start on your own enterprise or leaving a company you’ve built from scratch to focus on the next part of your impact journey, many face the same challenges,” noted
50 MANN REPORT | NOVEMBER / DECEMBER 2023
business exit strategist and coach Jerome Myers, PE, MBA, PMP. “While the circumstances of each person’s exit differ, most if not all can be summed up in a few specific exit scenarios that every founder in today’s economy faces.” While they might look, feel and function differently, understanding the quintessential exit archetypes can prove critical in helping the founder perform at his or her best. Here is Myers’ breakdown of the primary eight: Exiting The Traditional Career Path The first phase of this transformative transition is leaving a traditional corporate role or life path. This step involves wrestling with questions of purpose and ambition and requires introspection and careful planning. The robust U.S. economic growth, represented by a 2.4% annualized rate of GDP growth in the first half of 2023, provides a favorable tailwind for individuals making this transition. This stage probably will feel like the biggest transition for those doing it. It’s where all that you once knew is gone and everything feels foreign and new. This should not be something that you run away from but embrace. Given the stats above, right now might be the best time to take this leap.
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CEO 1.0 (Chief Everything Officer) In the next phase, founders embody the role of “CEO 1.0” or the “Chief Everything Officer.” They are at the helm of their venture, crafting business plans, securing initial funding and birthing their entrepreneurial dream. The thriving economic conditions, marked by increased consumer and government spending and a rise in business inventory investment, further fuel the growth potential at this stage. This is the beginning of your next journey, the start of what you hope
on stakeholder relationships. The rise in personal savings recorded in the second quarter provides financial flexibility for strategic growth and succession planning. Exit The exit phase involves founders selling their businesses or stepping down from their operational roles. In the current economic environment, with recession fears diminishing due to falling inflation and a robust jobs market, this phase can offer potentially significant financial returns. Building Your Post-Exit Portfolio Post-exit, founders diversify their wealth by building an investment portfolio in the "Building Your Post Exit Portfolio" phase. The recent interest rate hike by the Federal Reserve, aiming to curb inflation, provides a favorable environment for investment in real estate, stocks, bonds or other startups. Philanthropy and Legacy The final phase, Philanthropy and Legacy, provides founders the opportunity to leave a lasting impact by contributing to causes they deeply care about. Despite the ongoing economic recovery, the role of philanthropy remains crucial, offering founders the chance to leverage their wealth for societal betterment.
to accomplish. It is here where you visualize your dreams and begin to make them a reality. It’s time to embrace the unknown and make it seen. Product Manager/Thought Leader Founders then transition into a dual role of Product Manager/Thought Leader, intertwining strategic product management and thought leadership. They refine their business’ value proposition and engage with customers while sharing unique insights and ideas publicly. This role, critical in a growth-oriented economy, helps shape public opinion and add credibility to their venture. This is when your company enters the public eye, which leads to scale and widened adoption of the company’s solution. CEO 2.0 (Chief Executive Officer) Upon establishing their business, founders assume the CEO 2.0 role, overseeing the bigger picture, managing the team and setting strategic directions. The presence of a solid jobs market, as evidenced by the addition of 209,000 jobs in June 2023, aids in attracting talent and scaling operations during this phase. Board Chair As board chair, the founder steps back from daily operations to guide the company’s strategic direction, ensure its financial health and focus
“During each of these eight exits, it’s imperative to note that the founder will experience a phenomenon that will test their mental resilience, which is known as the ‘Founder’s Exit Paradox,’” Myers said. “The Founder’s Exit Paradox refers to the comprehensive psychological disengagement experienced by founders, which encompasses behavioral, emotional and cognitive aspects. This involves understanding how these processes occur before and after physical exits, and how the experience impacts the way individuals move forward. The Exit Paradox often produces similar feelings as an existential crisis where Newly Exited Operators — or NEOs — begin questioning the meaning and purpose of their life, although the trigger in this instance is due to a major accomplishment.” According to Myers, when a founder or NEO experiences the Exit Paradox, they will wrestle with what he calls “6 Centers of Doubt,” which are: Self-image Clarify your guiding principles and what’s holding you back and adopt a new outlook on life that empowers. Founders who are in this stage of the Paradox will ask questions such as: • Who am I now that I’ve “won the game?” • What do I do without the hyper-focused routine I’ve had for years? • Do I even deserve this? Relationships. Identify relationships that are not mutually beneficial and rebalance or eliminate them, increase access to resources and reposition yourself as a person of tremendous value. Founders who are in this stage of the Paradox will ask questions such as: • What are the people in my life really after? • Why don’t my family and friends understand I need time to figure this all out?
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Does my marriage make sense anymore?
Work Cultivate inspired work by finding the connection between income, influence, impact and interest. Founders who are in this stage of the Paradox will ask questions such as: • What does work mean now that I have exited? • Were all the sacrifices I made to get here worth it? • What’s next? Health Create more energy, reduce mind fog and increase your quality of life. Founders who are in this stage of the Paradox will ask questions such as: • Did I give away too many years to my business? • Am I going to use all the wealth I built to earn back the health I lost? • Can I make adjustments to live with fewer health risks? Prosperity Improve your financial position to increase your time and location freedom. Founders who are in this stage of the Paradox will ask questions such as: • I can afford it. Why should I even give it a second thought? • Why shouldn’t I enjoy all the money I earned? • Who are you to give me advice about money? Significance Make meaningful and positive contributions outside of your home. Founders who are in this stage of the Paradox will ask questions such as: • If I died today, who would carry my casket? • Who do I trust to honor my memory after I’m gone? • What’s the best way for me to use my wealth to help others and do good? “I’ve found that most people undergoing an exit transition are seeking a deeper and more meaningful state of fulfillment,” Myers said. “They are also in a new place where they are struggling with the Six Centers of
Jerome Myers (Photo courtesy of Merilee Kern) Doubt. But it’s not their fault. The ‘American dream’ is all about creating financial freedom and we have been collectively programmed to chase it. All too often, when we ultimately find that financial success, we realize it probably isn’t what we should have been chasing as the ultimate end-game. Many in transition desire the kind of gratification that comes with self-actualization.” The eight exit strategies detailed above represent the cyclical journey of a founder from their initial foray into entrepreneurship, through their venture’s growth and eventual exit, to their legacy-building activities. The current economic landscape in the U.S., as characterized by its promising growth, a robust jobs market and increasing control over inflationary conditions, creates a conducive environment for a founder to flourish amid these transition strategies, highlighting his or her relevance and maximizing profitability in today’s dynamic economic scenario.
Merilee Kern is an internationally regarded brand strategist and analyst who reports on noteworthy industry change makers, movers, shakers and innovators across all B2B and B2C categories. This includes field experts and thought leaders, brands, products, services, destinations and events. She is the founder, executive editor and producer of “The Luxe List” as well as the Host of the “Savvy Ventures” business TV show that airs nationally on Fox Business TV and Bloomberg TV and the “Savvy Living” lifestyle TV show that airs in New York, Los Angeles, San Francisco, Miami, Atlanta and other major markets on CBS, Fox and other networks.
52 MANN REPORT | NOVEMBER / DECEMBER 2023
The size of our company is our ultimate strength. Simplifying your life as a board member is our purpose. “Being under the FirstService umbrella is more than building management. We’ve refinanced our mortgage through their financial team, completed major cap ex projects with the construction management team, and are now working on Local Law 97 compliance and an EV charging installation. The board has never had access to this level of expertise and I feel like we’re just getting started.” - Stephen V., NYC Board Member
Let’s talk. www.fsresidential.com/new-york 212.634.5410
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FINDING NEW TECHNOLOGY AT BLUEPRINT BY D E B R A H A Z E L
Blueprint, the proptech conference held
is global,” Sroka said. “Real estate is local
“Money isn’t free anymore,” Martino ob-
annually in Las Vegas, has seen its share of
served. “Capital is going to people who are
changes over the last three years. In 2021,
focused on driving value solutions. First
the show seemed all about venture capital,
His experience also allowed him to “see
with potential investors looking for “that next
under the hood” of payment systems and find
big thing,” and tossing money around to
out what was missing. That was a one-stop
Constrained capital means fewer compet-
see what would stick. Last year, the show’s
software that can track deals from beginning
itors, but it also means fewer transactions,
speakers and exhibitors seemed much more
to end, can organize files and historical data
as residential volume has declined in light of
practical, focusing on real world problems,
in a central location to ease decision-making
higher mortgage rates.
with investors seemingly much more cau-
and manage teams.
tious about their monies.
American Financial takes a long view.”
“You have to have a good business plan, “We’re where the real world transacts the
with basic fundamental business metrics,”
This year saw an even more conservative
internet,” Sroka noted. “A lot of very important
landscape for investors.
info is trapped in documents and in people’s heads. We allow the buy side to evaluate and
“The market and world have changed quite
execute deals by automating steps along
a bit. It’s true in real estate and in proptech,”
said Mike Sroka, co-founder and CEO of
Flexibility is also important. “When we launched in 2018, we focused on real estate agents. We wanted the purchase
Dealpath, a commercial real estate (CRE)
With headquarters in both San Francisco and
business because we understand the nuance
investment platform supporting acquisitions,
New York City, Dealpath has expanded to
of that transaction,” Martino recalled. “First
dispositions, development and financing.
Austin, Texas and Toronto, Canada and now
American has tons of experience.”
“Simply put, the cost of capital has gone
supports hundreds of institutional clients. The
up dramatically and the value of capital has
company is focusing on machine learning to
Now, it has expanded to focus on enterprise
gone up dramatically. We’re very fortunate
eliminate duplication of manual data entry.
customers, and is licensed in 38 states. The
that we booked our capital last year and are continuing to build out our platform.”
company takes a standardized approach, of“We’re proving there’s a big under-
fering its customers a single point of contact
served market,” Sroka said. “We see
so it can be “consistent from Washington to
California to Texas.
companies including Fanhood, Zynga and
At the other end of the deal, technology is
“We take the lessons we learn from the local
OneSeason after an early career at a large
also improving title insurance and closing
real estate agent and apply them to compa-
private equity firm. It gives him a unique
for residential buyers, said Scott Martino,
nies,” Martino said.
insight into the minds of investors, and the
co-founder and CEO of digital title and settle-
differing viewpoint between the financiers
ment company Endpoint. For Endpoint, ven-
With its customer base proprietary clos-
and the financed.
ture capital wasn’t a problem — the company
ing platform established, Endpoint is now
is backed by First American Financial.
focusing on the back end, with a new release
Prior to Dealpath, Sroka spent over a decade growing venture capital-backed software
“Capital, particularly institutional capital
54 MANN REPORT | NOVEMBER / DECEMBER 2023
coming by year-end to make home closing
F E AT U R E S | T E C H N O L O GY
"Capital, particularly institutional capital, is global. Real estate is local and regional." M I K E S R O K A , D E A L PAT H
easier, and remove friction for its clients’
“Our focus is on operations management,
internal closing teams, Martino said.
and how to make that easier,” she said.
But AI clearly is the way of the future.
“You can remove the friction, letting the
A particular interest was safety technology,
AI,” Sroka said. “Generative AI allows for indi-
technology drive the process,” removing the
especially robotics. But there’s a lot of need
viduals and people who are less technically
re-entry of data and bringing transparency to
for prioritization, she said.
savvy to engage with AI.”
“We’re trying to make everyone comfortable
Future enhancements to Dealpath will be
This can be done by machine learning
on the job site,” O’Connell explained, adding
“under the hood,” to enhance ease of use,
and AI, enabling faster responses and
that “Venture capitalists have invested in
using visualization to encourage its sub-
so many solutions. We looked at the prob-
scribers to be more data-driven in their
lems we hear about consistently and focus
“Some of the new innovation is in generative
“This makes sure we don’t miss anything,”
Martino said. “A human could miss some-
AI, he noted, will be able to summarize doc-
thing; the machine can make sure nothing is.
In the future, AI will become more of a focus.
uments and identify anomalies quickly. What
That’s what I’m excited about.”
O’Connell shared that she gets ideas from
would take a team weeks to find can be done
Skanska staff about how AI can be used
The construction side also is looking to
technology to improve safety and efficiency,
“The end user doesn’t really care about the
said Danielle O’Connell, senior director of
“And there are an overwhelming number of
data structure. They just want it to work,”
emerging technology for construction giant
problems that AI can solve,” she noted. “The
Sroka said. “Whether they’re using AI or not,
question is, which ones?”
they just want it to work.”
NOVEMBER / DECEMBER 2023 | MANN REPORT 55
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Retail Trends in Urban Mixed-Use Developments:
A Vision for the Future BY B R A D Z A C K S O N A N D S TA N E C K S T U T
RENDERING VIA PRNEWSWIRE 56 MANN REPORT | NOVEMBER / DECEMBER 2023
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In the rapidly evolving realm of urban development, mixed-use developments have emerged as a transformative force. These dynamic, integrated spaces have, over the years, altered how individuals live, work and shop. Over the years, we have been fortunate to witness the evolution of mixed-use developments and believe that the future holds even more exciting changes. As we explore forthcoming trends in retail within urban mixed-use developments, these developments offer a myriad of benefits, and opportunities for developers to reinvent and enhance them. Additionally, sustainability and how it shapes the future of commercial real estate is paramount for the future. Changing Retail Landscape in Mixed-Use Over the past decade, the retail landscape within mixed-use developments has experienced a significant shift. According to a report by the National Retail Federation (NRF), retail trends for 2023 include an emphasis on experiential shopping, personalized customer experiences and technology integration. Gone are the days when people visited mixed-use developments solely for their everyday needs. Today, these developments are expected to provide an immersive, holistic experience. Shoppers now seek out unique, memorable
S TA N E C K S T U T
experiences that transcend mere transactions. They want to connect with brands and establishments on a personal level. As a result, retailers are rethinking their strategies, focusing on creating spaces that are not just places to buy things but destinations in themselves. Virtual and augmented reality (VR/AR) technologies are playing an increasingly significant role in this shift. These technologies enable retailers to offer immersive shopping experiences, from virtual try-ons for fashion enthusiasts to interactive product demonstrations. Moreover, they allow customers to explore mixed-use developments and discover hidden gems, encouraging longer stays and increased spending. Another pivotal factor reshaping retail in mixed-use developments is the rise of ecommerce. While some might argue that online shopping threatens brick-and-mortar stores, we believe it presents an opportunity for reinvention. Physical retailers are adopting an omnichannel approach, blending in-person and online shopping seamlessly. This integration allows for more personalized shopping experiences, with AI-driven recommendations and the convenience of ordering online and picking up in-store. The Benefits of Mixed-Use Developments Mixed-use developments have always held a
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unique allure, offering a combination of residential, commercial and recreational spaces within a single location. As we peer into the future, we are confident that these benefits will become even more pronounced. First and foremost, mixed-use developments enhance the quality of life for residents. The proximity of homes to workplaces, shops and recreational areas reduces commute times and fosters a sense of community. Moreover, the diverse array of amenities within these developments caters to the needs and preferences of a wide range of individuals and families. From a sustainability perspective, mixed-use developments are inherently more environmentally friendly than their sprawling, single-purpose counterparts. They promote walkability, reduce the need for long commutes and encourage the use of public transportation. These factors not only reduce greenhouse gas emissions but also contribute to the overall well-being of the community. Economically, mixed-use developments provide a robust platform for businesses to thrive. The coexistence of residential and commercial spaces ensures a consistent customer base for retailers. Moreover, the integrated nature of these developments creates a synergistic effect, where the success of one element feeds into the success of others. Opportunities for Developers to Reinvent and Improve Developers are at the forefront of shaping mixed-use developments, and they are well-positioned to harness the opportunities the future holds. Here are some strategies for developers to reinvent and improve these spaces: 1.
Embrace Technology: Incorporate cutting-edge technologies, such as IoT (Internet of Things) for smart buildings and data analytics for predictive maintenance. These technologies not only enhance the efficiency of operations but also improve the overall user experience.
Flexible Design: Design spaces that can adapt to changing needs. The COVID-19 pandemic highlighted the importance of flexibility in design. Retail spaces that can easily convert to accommodate pop-up shops or outdoor dining, for example, can better weather unexpected challenges. Sustainability: Integrate sustainable design principles from the outset. Green roofs, energy-efficient lighting and rainwater harvesting systems are just a few examples. Sustainable features not only reduce environmental impact but also appeal to environmentally conscious consumers. Community Engagement: Foster a sense of community within mixed-use developments. Organize events, create public spaces and encourage local artists and entrepreneurs to showcase their talents. Community engagement will enhance the overall atmosphere and attract more visitors. Diverse Tenant Mix: Curate a diverse mix of tenants. A variety of retail offerings ensures that mixed-use developments remain vibrant and appealing to a broad audience. Consider a blend of established brands, local artisans and experiential offerings.
integral to the future of mixed-use developments. Healthy buildings not only benefit the well-being of occupants but also provide economic advantages. They can command higher rental rates and attract tenants who prioritize employee health and productivity. Additionally, they align with the growing expectations of consumers who want to patronize businesses that prioritize sustainability and comfort.
Creating "Healthy" Buildings As we look to the future, the concept of "healthy" buildings is gaining prominence. Healthy buildings are designed with a focus on the well-being of their occupants, prioritizing factors such as indoor air quality, natural lighting and ergonomic design. The COVID-19 pandemic accelerated this trend, with people becoming more conscious of the indoor environments they inhabit.
As we navigate the evolving landscape of urban mixed-use developments, we believe that the future holds endless possibilities for creating vibrant, sustainable and peoplecentric spaces that enrich the lives of those who inhabit them. With innovation, collaboration and a commitment to the greater good, we can look forward to building a future where urban mixed-use developments truly reflect the aspirations and needs of our ever-evolving society.
Sustainable commercial real estate is at the forefront of this movement. Green building certifications, such as LEED (Leadership in Energy and Environmental Design) and Well Building Standard are becoming increasingly important in commercial real estate. These certifications emphasize sustainable and health-centric design principles, making them
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Conclusion The future of retail in urban mixed-use developments is promising and brimming with opportunities for innovation and positive change. We anticipate a continued shift toward experience-based retail, driven by technology and a desire for unique, immersive shopping experiences. Mixed-use developments will remain a vital part of urban living, offering an array of benefits to residents, businesses and the environment. Developers have a pivotal role to play in shaping the future of these spaces by embracing technology, sustainable design, flexibility and community engagement. Moreover, the rise of "healthy" buildings underscores the importance of focusing on the well-being of occupants and aligning with the growing demand for sustainable, health-centric spaces.
Brad Zackson is the co-founder and director of development at Dynamic Star LLC, and Stan Eckstut is a principal and board director of Perkins Eastman. They are collaborating on the master-planned design of Fordham Landing, a transit-oriented waterfront mixed-use project in New York City.
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Defining the Future of Commercial Real Estate:
Resilience, Reuse and Reinvention BY K E N G E N T E RT, M B A , V I C E P R E S I D E N T O F M AT E R I A L S , K O VA
The commercial real estate industry has been impacted worldwide by pandemic-fueled lifestyle changes, supply chain disruptions, economic hardship and the escalation from global warming to global boiling. Despite this, by 2050, the commercial building floor space in the U.S. is expected to see a 33% increase from 2021, according to the U.S. Energy Information Administration. Showing no signs of slowing down, the commercial real estate industry needs a major rebrand. Driven to think differently about the highest and best use of property, commercial real estate brokers, developers, building solutions manufacturers, architects and facility managers must reimagine the core of the industry to sync with the rapidly changing world and be prepared to pivot, sometimes unexpectedly. A focus on resilience, reuse and reinvention will define the future of commercial real estate, replacing band-aid solutions with concrete, future-proof practices. Supply Chain Resiliency Effective, high-functioning supply chains are vital to any commercial real estate development to ensure a steady and manageable flow of required materials. Recent pandemic-laden
years have made it painfully apparent that existing domestic and global supply chains must be more resilient and stable during crises, especially seeing how heavily construction de-accelerated due to pre-existing issues. As an industry laser-focused on outsourcing, commercial real estate must recalibrate its current practices. Zeroing in on geographic diversification and switching mindsets from the lowest first cost to the lowest total cost of ownership model will offer long-term supply chain resiliency.
performance is crucial in any business model to establish continued performance and longterm viability. However, traditional methods of measuring supply chain success by a cost bill of materials (BOM) and landed cost have excluded vital factors such as total cost of quality (TCQ) for poorly made or damaged products, cost lost to expedited freight methods and concessions to customers to counteract delays/penalties. Thus, it fails to capture the true total cost of the supply chain. Considering these factors in developing resilient supply chains will be key going forward.
Offshore, near-shore and onshore –– this geographic diversification approach provides a level of insulation against geopolitical, social and economic issues. Creating leverage across multiple regions allows procurement teams to instill flexibility, security and resiliency. While variation in unique cost structure when procuring from different parts of the country or abroad may pose a challenge, the time and effort behind strategically integrating product sources into a blended total product cost pays off in the long run. This guarantees a resilient and steady supply flow to support commercial construction.
Adaptive Reuse Moving from the drawing board to the construction site, adaptive reuse has seen and will continue to see a resurgence. On a purely business-oriented level, starting from scratch can be more expensive than working with what is readily available, especially as lots for development continue to run scarce. New builds will likely take significantly longer to complete as additional planning, construction, materials, labor and permits are required. Adaptive reuse, therefore, offers a highly efficient workaround to extended development processes.
Additionally, transparency in financial
The future of commercial real estate,
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however, relies on far more than cost and profit-oriented factors. Cultural and societal shifts have just as much of an impact, if not greater. As employees spend less time on site with work-fromhome and hybrid schedules, existing corporate spaces remain empty, carrying the potential to be repurposed for other commercial uses. Additionally, existing structures often carry historic local roots with them. Upkeep, however, is costly and the cultural values that define surrounding communities often need to be recovered. Adaptive reuse allows for the simultaneous reinvention of underused spaces and preservation of local history and culture characteristic of today’s social landscape, which can potentially increase the property value. The industry’s environmental impact is another consideration. Currently, demolition in the U.S. alone contributes to more than 90% of construction debris, according to the U.S. Environmental Protection Agency. Repurposing and reusing existing structures significantly reduce harmful construction waste, lowering a development’s large carbon footprint. Adaptive reuse paves the way for a more sustainable, resilient future for commercial real estate. Offsite Construction Economic demands, a need for resilient and sustainable alternatives and technological improvements in the commercial real estate industry are attracting a new wave of interest in prefabrication and offsite construction. It is faster, more cost-effective, safer and greener than traditional construction practices. While
prefabricated construction is not a new concept, it is ready to be reinvented to steer the industry away from less efficient practices. Containing a myriad of benefits, prefabrication and offsite construction accelerate and improve construction processes.
K E N G E N T E RT
Working onsite while simultaneously constructing needed additional building materials offsite speeds up the construction timeline while reducing overall waste and noise pollution. This practice is highly significant in densely populated cities. As less machinery, materials and energy are needed for offsite construction, the practice establishes a safer, more sustainable work environment. Additionally, offsite construction tends to focus on permanent construction. With more space, less pressure and more materials at hand, building elements can be perfected each time they’re built offsite. Strategic coordination and consistent communication are required across different trades and stakeholders to ensure a successful prefabrication implementation. Initial conversations, hopefully leading to extended collaboration and the streamlining of future commercial real estate processes, will encourage contractors, developers and product suppliers to work together (while being physically separated via the job site) as partners while also reaching diverse stakeholders, including but not limited to architects, building owners and workplace design teams. While the future will likely hold some surprises, it is clear that resilience, reuse and reinvention will be top of mind for the
commercial real estate industry. Current predictions suggest that enhancing supply chain resiliency, implementing adaptive reuse and embracing offsite construction and prefabrication offer tangible, safe stepping stones toward that uncertain future. These solutions will encompass all angles of the commercial real estate industry, permeating it from the drawing board to the final built structure. Resilient supply chains will ensure the timely completion of commercial spaces that are more prepared to take on unprecedented global challenges and emerge as unscathed as possible. Adaptive reuse is an
invaluable tool in reducing the industry’s harmful impact on the environment, promoting reuse over disruptive demolition and new construction. Finally, the resurgence of offsite construction and prefabrication carries the potential to improve the construction process on a wider scale, focusing on longevity, sustainability and safety. The solutions, in addition to other developed or upcoming operational practices, are designed to improve the current state of commercial construction and ultimately transform today’s commercial real estate industry to meet an unpredictable future.
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Wall of windows
Soundproof windows inside kitchen Soundproof corner windows
Without Window Replacement BY D E L W I L L I A M S For many homeowners, soundproofing their home to eliminate the cacophony of nearby traffic, loud neighbors, leaf blowers, barking dogs and sirens can be critical to maintaining their sanity and keeping peace in the neighborhood. Although most external noise passes through windows, many feel that replacing existing windows is not feasible due to the cost, demolition and disruption involved. The good news is that window replacement is
not necessary to resolve the issue. Soundproof windows eliminate up to 95% of outside noise and can be quickly installed without window replacement at roughly the same cost. “When people think of soundproof windows, they immediately assume that the existing windows will all have to be replaced, but there is no need to remove or replace the existing windows to eliminate outside noise,” said Randy Brown, president of Soundproof
64 MANN REPORT | NOVEMBER / DECEMBER 2023
Windows Inc., a national manufacturer of window and patio door soundproofing products. “A soundproof window is a second professionally engineered window placed inside the existing window, with an appropriate air gap and long-lasting seals, that can open and close just like the existing one.” A soundproof window can dramatically reduce the intrusion of outside noise, effectively doubling a single-pane window Sound
F E AT U R E S | R E S I D E N T I A L
Transmission Class (STC) rating from 26-28 to 48-54, Brown observed. This far surpasses a double-pane window’s STC Rating of 26-32. Soundproof windows inside a home
Because no replacement is required, the installation can take less than one hour per window while minimizing mess and disruption. Qualified contractors and even handy DIYers can install soundproof windows where necessary, providing considerable savings versus traditional window replacement. The soundproof windows also enhance comfort and energy savings with extra thermal insulation and can even increase home value. Contractors advise many homeowners looking to reduce external noise to install doublepane windows. A double-paned window, constructed with two panes of glass in a frame, contains air space filled with gas such as argon, xenon or krypton. However, the purpose of this gas is to enhance insulation capabilities, not block noise. Although separating two panes of glass and filling the gap with gas can reduce noise, the reduction is only from 0% to 20%, which is slightly more than traditional single-pane windows. When replacing windows for noise reduction, contractors typically change out all the existing single-pane windows throughout the house. The challenge is that the window replacement process can be disruptive and messy. Window replacement also sometimes requires patching and repainting any exterior wood or stucco damaged during installation, as well as installing and painting new casing and trim molding. On the other hand, soundproof windows are specifically designed to reduce intrusive noise from entering on three fronts: the type of materials used to make the pane, the ideal air space between the original window and insert and the use of improved, long-lasting seals. The combination can reduce external noise by up to 95%. The first noise barrier is laminated glass, which dampens sound vibration much like a finger on a wine glass stops it from ringing when struck. An inner PVB layer of plastic further dampens sound vibrations. An air gap
of two to four inches between the existing window and the soundproof window also significantly improves noise reduction because it isolates the window frame from external sound vibrations. Finally, spring-loaded seals put a constant squeeze on the glass panels, which prevents sound leaks and helps to stop noise from vibrating through the glass. Designers created the spring-loaded seals to stay acoustically sound for 15 years.
bedroom facing a street, can also save a considerable amount compared to window replacement,” he said.
“Installation can take as little as 30 minutes per window without the complexity, disruption, mess and cleanup of traditional window replacement,” said Brown.
A quieter home environment can increase focus and productivity for those working at home or telecommuting. Those pursuing online learning or homeschooling can benefit.
He added that the approach can also end up costing much less than window replacement.
While contractors and homeowners have traditionally thought of window replacement to quiet noise, adding soundproof windows is a much faster, simpler and less disruptive option to cost-effectively resolve the issue.
“Selectively adding a soundproof window to only areas exposed to noise, such as a
Whether the noise problem is due to intrusive street traffic, planes, trains, construction, rowdy neighbors, nightlife or special events, the soundproofing technology quiets the clamor, which enables more restful sleep and more peaceful conversation at home.
P H OTO S CO U RT E SY O F S O U N D P RO O F W I N D OW S
NOVEMBER / DECEMBER 2023 | MANN REPORT 65
F E AT U R E S | M A N A G E M E N T
PREVENTING E-BIKE FIRES IN NEW YORK CITY’S COMMERCIAL BUILDINGS BY D A N I E L C O LO M B I N I A N D V I N O D PA L A L
The challenge is only growing, as the number of micromobility devices increases. Research estimates that while 608,000 electric cars and trucks were sold in the United States in 2021, more than 880,000 e-bikes were purchased. The fire hazard posed by micromobility devices is completely different from electric cars and trucks, which are far less likely to have fires than traditional vehicles. The difference arises from the following conditions: the cars and trucks must be parked in designated settings, separate from office and residential spaces; they must be charged on specialized equipment; their batteries cannot easily be removed and their safety and use are heavily regulated. The lack of regulation is especially important. The New York Times stated, “Victoria Hutchison, a senior research project manager at the Fire Protection Research Foundation, said the
V I N O D PA L A L
-bikes and e-scooters can play an important role in reducing carbon emissions in New York City and other major urban areas, but they pose a growing fire hazard that must be addressed. Commercial property owners should take six steps to reduce those hazards.
The New York Times recently described how sudden and intense these fires can be, by reporting on a fire in the third-floor Queens apartment that Alfonso Villa Muñoz shared with his girlfriend. He had been charging an extra-large lithium-ion battery for a secondhand e-scooter.
The danger of fires from e-bikes and e-scooters is significant and growing. It is significant because of the frequency, suddenness and intensity of the fires. More than 200 fires in New York City last year were caused by batteries from ebikes, e-scooters and similar devices, according to NPR.
“The battery exploded in the living room, unleashing flames that engulfed the apartment. Mr. Muñoz screamed for their eight-year-old daughter, Stephanie, who was asleep. He could not breach the wall of black smoke to get to her. Stephanie died from smoke inhalation,” the report said.
66 MANN REPORT | NOVEMBER / DECEMBER 2023
F E AT U R E S | M A N A G E M E N T
lack of safety regulations and testing requirements has allowed cheaper, low-quality devices and batteries of questionable safety to enter the market. ‘That’s really the root of the problem,’ she said.” New York City is taking action on that front. In March, Mayor Eric Adams signed legislation that prohibits the sale, lease or rental of e-bikes, e-scooters and batteries that fail to meet safety standards; prohibits the assembly or reconditioning of used lithium batteries; develops a public information campaign on lithium battery fire risks and requires the FDNY to submit annual reports on lithium battery-related fires. That still leaves commercial property owners in a precarious position, because e-bikes and e-scooters can easily be stored in office and residential settings. Even more challenging, the batteries can be removed and charged using standard electrical outlets, often near flammable personal belongings. Even when regulation occurs, there will still be too many e-bikes and e-scooters stored – and batteries charged — inappropriately unless incentives are offered to alter behavior.
They should include the following: First, a designated space for storage of micromobility devices should be provided where devices can be stored and charged for free. The space can be created much like traditional bike storage. Second, that space should be reinforced from a fire prevention standpoint, making it fire-resistant and separated from flammable objects. This will ensure that, if a fire breaks out, it is contained. This would be achieved with a combination of strategies, including fire-rated walls, fast-acting sprinkler heads and fire detection devices. Self-closing doors will ensure that fire and smoke cannot spread to other areas of the building. Third, sufficient electrical outlets should be provided so that each device can be charged while in the designated storage space. This will avoid the dangerously informal and often haphazard battery charging that too often results in fires in highly flammable settings. The design of these outlets must take into account the volume of load that would be on at a single time in order to reduce the risk of fire from circuit overloading.
Fourth, ongoing monitoring of the space should occur, with cameras displaying images at the security desk. Security officials can then monitor the devices’ safety and be alerted if a fire occurs. Having events reported to a 24-hour monitored site would ensure that coverage is continuous. Fifth, the monitoring should ensure that batteries are properly charged and not overcharged. Batteries for micromobility devices typically do not have a battery management system that can detect and arrest battery issues before Thermal Runaway. As a result, it’s important to keep an eye on the batteries and how long they are being charged. Sixth, security personnel should be trained in how to deal with a lithium-ion battery fire in any micromobility device. They should know precisely what to do if a fire occurs. Training and fire action plans for personnel to respond to this type of event are crucial.
Daniel Colombini, PE, LEED AP and Vinod Palal, PE are principals at the New York City-based consulting engineering firm Goldman Copeland.
NOVEMBER / DECEMBER 2023 | MANN REPORT 67
DIVERSITY, EQUITY AND INCLUSION IN ARCHITECTURE The impact of Diversity, Equity and Inclusion
to removing roadblocks by engaging middle
(DEI) in architecture has affected the built
and high-school students.
environment beyond its physical, technical or aesthetic qualities. How architects practice
DEI for Architecture
and the intended excellence in the products of
DEI for the practice of architecture is about
architecture imply a future of increasing DEI.
working with clients to use innovative design to transform and strengthen communities and
Historically, an American architect was a
enhance the quality of life for all.
socially affluent white male with access to education abroad. That profile has progressed
Diversity in design is a deliberate focus on the
since the mid-19th century to include men
impact of the architect’s work product or use
and women of multiple ethnicities from vary-
of space that is either appropriate or respect-
ing social strata. However, there is still work
ful to the needs of a multicultural population.
to do to address issues of diversity.
Heather Philip-O’Neal CEO and Founder
HPP International LLC 155 East 38th St. New York, NY
Equity in design is sometimes facilitated According to the National Council of Archi-
through the development of healthy communi-
tectural Registration Boards (NCARB), there
ties and resilient public spaces.
are over 140,000 architects employed in the United States. The most common ethnicity of
The social impact of belonging is felt in design
architects is white (71.3%); 13.8% are Asian,
through the implication of access to basic
9.9% Hispanic and 2.8% African American
resources that are also sustainable.
or Black. Notably, African American women architects comprise 0.04%. In 1997, I was the
98th African American woman to be regis-
DEI in the practice of architecture is a core
tered as a licensed architect in the country.
value. The COVID-19 pandemic prompted the architecture community through the
One reason for the under-representation of
AIA to “re-emphasize their commitment to
women and minorities has been barriers to
Equity, Diversity and Inclusion” as “an ethical
entering the profession. The most notable is
and moral obligation.” Education and Career
access to education. State licensing require-
Development was identified by the AIA Equity
ments based on education, lack of role models
in Architecture Commission for recommenda-
and a perceived low return for the expense of
tions to be implemented over three years.
educating architects, are additional obstacles. The American Institute of Architects (AIA) has
The desired outcome for architects is to realize
pledged to provide a more accessible path
professional goals together with an underly-
to higher education and engaging children in
ing objective for the products of architecture
K-12 programs. The National Organization of
to result in a more diverse, equitable and
Minority Architects (NOMA) is also committed
inclusive future in the profession.
68 MANN REPORT | NOVEMBER / DECEMBER 2023
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FIVE PROACTIVE MEASURES BUILDING OWNERS CAN TAKE TO HEAD OFF MAJOR STRUCTURAL ISSUES Modern building codes and structural engi-
major structural issues or minor things
neering have made our buildings extremely
like blocked drains which can lead to
safe. However, buildings do require main-
significant property damage.
tenance, and if signs of structural damage
In high-rise towers, regular inspections
become apparent, immediate action should be
should include the identification of con-
taken. Continual maintenance and inspections
crete spalling. Corrective action should be
are critical to the operations of any building
taken in places where concrete has fallen
and the safety of all inhabitants.
off or detached, especially in structural columns. If there is deterioration of rein-
Frank DeLucia Senior Vice President
Hub International Northeast frank.delucia@ hubinternational.com (212)338-2395
The following are five primary actions that
forcing steel, immediately have a struc-
building owners should take to prevent major
tural engineer determine the damage.
structural issues in their buildings:
Identify and carefully monitor wall cracks.
Third-party professionals should con-
New buildings may settle, and this
duct annual inspections to identify any
should be monitored. Cracks that grow,
issues that could lead to deficiencies or
spread or otherwise show deterioration
damages. For example, major structur-
should be addressed immediately.
al components should be assessed by
Institute financial planning for major
structural engineers with experience per-
improvements and capital expenditures
forming such inspections. When issues
in all building maintenance plans.
are identified, corrective actions should
Identify risks early. Building management
be taken and documentation made for
should perform regular assessments.
maintenance or repairs.
Training maintenance staff and leadership to recognize potential risks may
Inspectors conducting building as-
identify issues prior to formal inspections.
sessments should review any changes
Documenting such assessments may
following renovations, additions or other
help to record actions taken to reduce
changes which may affect the building’s
both property and liability risk for the
structure. Adding loading to a roof, mov-
buildings and their residents.
ing walls or other changes can adversely
Owners should not reduce coverage to
affect a building. Inspectors (including
cut costs. Have a formal review of your
structural engineers) need to be familiar
insurance policies and coverage complet-
with building design changes and proper
ed by a trusted insurance professional.
authorities must sign off on all renovations or upgrades.
Taking these five measures does not guarantee a building will not experience a cata-
It's important to conduct post-event
strophic event but they will reduce risk to all
inspections following major weather
buildings — they have been proven to prevent
events to identify any damage, including
both minor and major loss events.
70 MANN REPORT | NOVEMBER / DECEMBER 2023
LEASING | MANAGEMENT | INVESTMENTS
A MODERN APPROACH TO COMMERCIAL REAL ESTATE, POWERED BY A CENTURY'S WORTH OF EXPERIENCE.
We would like to take this opportunity to thank the following people: Our team & staff for their endless dedication and support Our tenants for their cooperation to keep our buildings safe Our partners for their trust and confidence in these challenging times All New Yorkers working tirelessly to keep our city moving We hope everyone continues to be healthy and safe in 2021. KAUFMANORGANIZATION.COM
BACKYARDING ON A BUDGET:
SIX MONEY-SAVING HACKS With tight budgets and high interest rates,
the task. New mulch holds weeds at bay
homeowners are looking for inexpensive
and helps retain moisture around plants,
ways to set up their backyards for year-round
trees and shrubs.
success. After all, the backyard is an extension
Prune bushes and trees. Trimming
of the family home, providing a place to work,
bushes, shrubs and trees is another
relax, entertain and even exercise. It’s called
inexpensive way to make a big impact
backyarding, and it’s here to stay.
on your yard’s aesthetic. Use a chainsaw, trimmer or hedger to remove dead or
According to a recent poll commissioned by
dying branches and stems. This pre-
the TurfMutt Foundation and conducted online
serves the health of the main branch and
by The Harris Poll, more than three-quarters
improves the shape of the plant. Pruning
of Americans who have a yard (76%) say the
also encourages plants to flower later.
family yard space is one of the most important
President and CEO Outdoor Power Equipment Institute 1605 King St. Alexandria, VA 22314 turfmutt.com
parts of their home. The yard has also become
lar mowing helps your grass stay healthy
a place to de-stress, with more than two-
and improves the overall appearance of
thirds of Americans who have a yard (69%)
saying doing yard work, such as mowing,
Pick perennials when planting. Peren-
trimming or planting, is one of the ways they
nials — those cold-hardy plant species
like to de-stress these days. This is especially
that will return again in the spring — are
true among parents of kids under 18 as they
a smart money choice because you only
are more likely than their counterparts without
have to buy them once.
kids under 18 to cite this (76% vs. 65%).
Keep grass mowed and weeded. Regu-
Plant climate-appropriate species. Native plants — those that occur naturally
Spending time in nature helps reduce stress,
in your region — are more likely to thrive
improve mood, lower heart rate and much
in your micro-climate without much
more. The green space around us is also an
maintenance or watering. They are also
environmental superhero. Providing oxygen,
better for local wildlife and pollinators
reducing runoff and capturing carbon are just
and help preserve the balance of the
a few of its superpowers. The good news is
homeowners don’t have to break the bank to
Look for deals. Many nurseries and
create a backyard that will serve many pur-
home improvement stores offer off-
poses for family and the environment.
season sales on landscaping essentials.
Here are six money-saving hacks for creating
For more information, sign up for Mutt Mail, a
the backyard of your dreams from the Turf-
monthly e-newsletter with backyarding tips
and all the news from the TurfMutt Founda-
Clean out flower beds and add mulch.
tion. To learn more about creating the yard of
Use a leaf blower to make quick work of
your dreams, visit turfmutt.com.
72 MANN REPORT | NOVEMBER / DECEMBER 2023
LANGSAM PROPERTY LANGSAM PROPERTY SERVICES CORP., AMO SERVICES CORP., AMO Langsam Property Services Corp. is a Bronx-based real estate management company. These buildings areislocated in the Bronx, Manhattan, Queens, Langsam Property Services Corp. a Bronx-based real estate management Brooklyn, and buildings lower Westchester company. These are locatedCounty. in the Bronx, Manhattan, Queens, Brooklyn, and lower Westchester County. Langsam is designated as an Accredited Management Organization (AMO), a standard of excellence management conferred by the Institute of aReal Langsam is designated as an in Accredited Management Organization (AMO), EstateofManagement standard excellence (IREM). in management conferred by the Institute of Real Estate Management (IREM). 1601 Bronxdale Avenue New Avenue York 10462 1601Bronx, Bronxdale Tel: 718. 518. 8000 Bronx, New York 10462 Fax: 718.518. Tel: 718. 518. 80008585 Fax: 718.518. 8585
Mark Engel, CEO Mark Engel, CEO
Matt Engel, Matt President Engel, President
DEB’S RETAIL DISH AND DEALS: THE FUTURE OF ENTERTAINMENT? In October, I may have seen the future of live
But the real show is The Sphere itself. The
entertainment and retailtainment, if live enter-
hallways look more like a starship and the
tainers are up to it.
screens are engaging (I missed the talking robot somehow). There are plenty of shops
I’ve lived in the Las Vegas area for the past
inside too, and the theater itself (taller than
two-plus years and on occasional excursions
the Statue of Liberty) is overwhelming. Take a
to the Strip, I’ve seen The Sphere at the Ve-
second to acclimate yourself before climbing
netian Resort being built, layer by layer, into
the stairs to avoid a case of – yes — vertigo.
a huge orb. Most locals looked at it with a bit
Before the show, the “screen” (160,00 more
of curiosity and a bit of skepticism. And then
LEDs) looked more like a planetarium than
came July 4, 2023, when the 580,000 square
anything else. Just a really tall one.
feet of LEDs on the outside lit up for the first
Debra Hazel Communications North Las Vegas, NV (201)618-5247
time — we all looked, and said, “Okay, now
Then the show starts, and the screen comes
I get it.” Friends who’ve visited the area now
alive, with graphics that twist, turn and com-
consider the $2.3 billion a landmark, and I get
plement but never overwhelm the band, and
a kick out of seeing what humorous image it
immerse the audience in the performance.
depicts, especially its face waking up in the
The sound system is extraordinary. This isn’t
morning and going to sleep each night.
a music review, but U2 (and I’ve seen them a lot) were their normal terrific selves.
But an engaging exterior is one thing — all of us in marketing and communications know it’s
This is where the question begins, however.
the content that counts. So, my first visit in-
U2 has always been BIG — big concepts,
side, to the third-ever U2 concert at the venue,
big presence. How many other performers
was the real test. And it delivered, first with
wouldn’t be overwhelmed by the technology
a visit to the U2 pop-up shop at the Venetian
while still being an ongoing draw? I can think
retail complex, and then at the concert venue.
of a handful, and there are rumors around town about Harry Styles in 2024, but it’s
The store/experience was fun and gave a
going to be a challenge. And will they be able
taste of what was to come at the perfor-
to sell the same amount of merchandise?
mance, with great branding for U2 and the
Leaving The Sphere, an outdoor official shop
venue. Video screens featuring members of
had a lengthy line, too.
the band, a Trabant car to pose in — the show focuses on U2’s "Achtung Baby" album — a
Still, The Sphere is a testament to the impor-
photo booth and stand to pose with instru-
tance of innovation in live entertainment —
ments led to the merchandise shop (with the
and the basic need for people to gather for it.
usual hats, mugs and shirts, which needed
But like with any entertainment facility, it will
restocking, one of the retail basics).
be the programming that matters.
74 MANN REPORT | NOVEMBER / DECEMBER 2023
TAX BREAKS FOR HOMEOWNERS:
ENERGY EFFICIENCY UPGRADES GET A BOOST The Inflation Reduction Act of 2022 has
To qualify for the energy-efficient home
provided an expansive collection of tax law
improvement credit, residential energy prop-
changes, with most provisions starting in
erty must be installed on or in a home in the
2023 and enacted through the next decade.
United States that is used as a residence.
For homeowners, included are the Energy
The residence does not have to be a taxpay-
Efficient Home Improvement Credit and the
er’s principal residence. In contrast, energy
Residential Clean Energy Credit
efficiency improvements (energy-efficient building envelope components, such as walls,
Beginning in 2023, the Energy Efficient Home
exterior doors, exterior windows, skylights
Improvement Credit jumps to 30% (up from
and insulation) must be installed on or in the
10%) of the sum of the following:
principal residence to qualify for the credit.
James Philbin CPA, PFS, MST, CFP
Partner, Tax & Business Services Marcum Boston, MA firstname.lastname@example.org •
Expenditures for energy-efficient components in the building envelope, such as
The Residential Clean Energy Credit amount
windows, doors, skylights and insulation,
is also 30% of the amount paid for qualifying
which meet stated standards.
property placed in service during the taxable
Other expenditures that increase energy
year after 2022, up from 26%. The credit rate
efficiency, such as an electric or natural
decreases back to 26% for property installed
gas heat pump water heater; an electric
in 2033 and to 22% for property installed in
or natural gas heat pump; a central air
2034. A residential clean energy credit may be
conditioner; a natural gas, propane or oil
claimed if a qualifying property is installed on
water heater or a natural gas, propane or
or connected to an existing or newly con-
oil furnace or hot water boiler.
Expenditures for a home energy audit. Several special rules apply to the credit. Labor
There are dollar limitations on the specific
costs for on-site preparation, assembly or
amount of energy-efficient property and im-
original installation of qualified property and
provement expenditures that can be claimed
piping or wiring to interconnect the property
as a credit. A $1,200 annual limit replaces
to the home qualify for the credit.
the previous $500 lifetime limit on credit-eligible property and the credit will be available
Expenditures relating to a solar panel or other
through 2032, allowing improvements to be
property installed as a roof that is a struc-
spread out over multiple years.
tural component of the house on which it is installed may also be qualifying property.
A $2,000 annual credit limit applies to electric or natural gas heat pump water heaters, elec-
Barring changes to the Inflation Reduction
tric or natural gas heat pumps and biomass
Act, these increased residential energy tax
stoves and boilers with a thermal efficiency
incentives provide meaningful tax-saving
rating of at least 75%.
opportunities for years to come.
76 MANN REPORT | NOVEMBER / DECEMBER 2023
SAVE THE DATES April 25, 2023
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37th Annual Holiday Party
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THE STORY BEHIND SKYROCKETING INSURANCE COSTS What do wildfires, a New York State law and
erty can’t obtain insurance from one of the
inflation share? They’re behind the rapidly ris-
top-tier companies, it falls back to the second
ing cost of insurance for co-ops and condos.
tier where coverage is reduced, and it can be
Insurance, historically, has been subject to
more challenging to recover. Top-tier compa-
swings in premiums. The latest uptick sees no
nies that remain in New York are more selec-
quick end, according to Robert Owens, presi-
tive in insuring buildings, putting increased
dent of The Owens Group, and there are few
pressure on boards to get solid coverage.
areas where boards can minimize increases. Owens emphasized that boards and property
Why is this happening now? A major problem
managers should review their risk man-
in New York State, Owens said, is a law
agement procedures and make necessary
unique to us that holds a co-op or condo
upgrades. Buildings with a good track record
liable when a worker is injured, regardless of
are desirable for better companies. Some
whether employed by the building. Claims can
buildings require the shareholder/unit owner
President and CEO
be expensive. This one law has caused many
to have homeowners insurance. This is im-
Matthew Adam Properties, Inc.
insurance companies to flee the market. The
portant when prime insurers vet a building.
375 Pearl St. – 14th Floor
second driver is inflation, resulting in higher
New York, NY 10038
costs for materials. Though inflation is down,
Many residents, Owens pointed out, try to
costs have not decreased.
save on their premiums by underinsuring or having too high a deductible. In addition,
email@example.com Numerous natural disasters have devastated
many fail to insure for replacement cost and
parts of the country. The costs are spread
obtain only the initial value less depreciation
out in premiums nationwide. We’re paying
which, depending on the age of the item, can
for damage from wildfires in California and
be a significant difference.
tornadoes in Mississippi. Conversely, when New York was struck by Superstorm Sandy
Many also assume that the party at fault will
and Hurricane Irene, the rest of the country
be responsible for repair costs. Not so in many
assumed some of the burden.
properties, especially those at the high end. Many co-ops and condos have subrogation
Increasing pressure on insurance companies
clauses preventing the injured party from
was a 37% percent rise in reinsurance (insur-
suing the responsible neighbor for accidents.
ance for insurance companies) rates instituted in January.
So, what about suing the building? Not viable. The condo or co-op association is responsible
Current conditions have reduced the number
for occurrences outside the walls of the apart-
of top-tier insurance companies operating
ment in the public areas. It is not responsible
in New York, limiting choices for co-op and
for damage in the units unless the building
condos and decreasing competition. If a prop-
was a direct cause of the problems.
78 MANN REPORT | NOVEMBER / DECEMBER 2023
SERVING COMMUNITIES AND HONORING THE VALUE OF THEIR INVESTMENTS SINCE 1955 We serve a large community of luxury multifamily, residential and mixed-use cooperatives, condominiums and rental properties throughout New York City. Our services include: • Comprehensive Residential Property Management • Back Office Accounting Services • Risk Management
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WASHED OUT: NEW YORK FORCES SELLERS TO DISCLOSE FLOODING New York Governor Kathy Hochul has signed
ever been a claim for flood damage to the
a bill into law amending Sections 462 and
property. The new disclosure will also change
465 of the Real Property Law. Notably, these
the question to ask whether the home has
sections provide the statutory requirement
experienced any water penetration or dam-
for sellers of residential real property — de-
age due to seepage or a natural flood event
fined as "one- to four-family dwelling used or
(heavy rainfall). Fresh off the large rain storm
occupied or intended to be used or occupied
our area took on September 29, this question
wholly or partly, as the home or residence
will resonate with many homeowners.
of one or more persons …” (RPL 462) — to provide a disclosure statement regarding the
Most consequential for sellers is that the new
property or a $500 credit at closing in lieu of
law eliminates the option of the seller provid-
such a completed statement.
ing the buyer with a $500 credit at closing in lieu of completing the statement. Since this
Kyle E. Scheiner Romer Debbas LLP
275 Madison Ave., 8th Floor New York, New York 10016 (212)888–3100
Unimproved parcels, condominium and coop-
disclosure is to be delivered prior to entering
erative units or property on a homeowners’
a contract, realtors and agents will need to
association that is not owned in fee simple by
carefully guide their sellers on completing this
the seller (RPL 462) are excluded from this re-
statement. RPL 465 eliminates limits on liabil-
quirement. Under this new bill (A1967/S5400),
ity on the seller. In the past, the buyer’s sole
sellers will now be required to complete the
remedy for the seller’s failure to comply with
disclosure statement with no $500 credit op-
the Property Condition Disclosure Statement
tion and include items regarding flooding and
was the $500 credit at closing. Under this
“water penetration” into the home.
new law, no existing legal cause of action or remedy is limited, and all options are available
New York Real Property Law 462 codifies the
to a buyer who was deceived on the condition
actual statement that sellers must complete to
disclose the history of the property to buyers prior to signing a contract of sale. Under the
New York has long viewed real estate with a
prior version, there were 48 total questions
caveat emptor approach. This new law sig-
ranging from “How long have you owned the
nals the burden is now shifting. Sellers must
property?” to “Are there any known material
be careful as to how they proceed or face
defects in … structural systems?”
potential litigation long after closing.
This new law will add eight more questions to
This new law is scheduled to take effect on
the statement, asking water-related ques-
March 20, 2024. It is not yet known whether
tions such as whether the property is in any
a transaction must close by then or if that will
FEMA-designated flood zone; whether the
be the cutoff for new contracts to avoid the
seller ever received flood-related assistance
requirement. As the rules start to be formulat-
from FEMA for the property or if there had
ed, we will keep you updated.
80 MANN REPORT | NOVEMBER / DECEMBER 2023
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New Members Join Fordham Real Estate Institute Executive Advisory Council Ryan Severino, chief economist and head of U.S. research at Bentall Green Oak, and Kenneth Morrison, managing member of Lemor Development Group, have been named to the Fordham Real Estate Institute (REI)’s Executive Advisory Council (EAC) of prestigious real estate industry and business leaders. Morrison and Severino will collaborate with the EAC on enhancing the student experience, increasing awareness of the expanding program offerings and growing enrollment on REI’s campuses at Lincoln Center in Manhattan and West Harrison, New York. They join council members from such firms and associations as UBS, JLL, Brown Harris Stevens, Douglaston Cos., the Real Estate Board of New York, Simone Management Group and Related Cos. (For a full list, see sidebar.) “We’re delighted to have Ryan and Kenneth join our Executive Advisory Council,” said Ryan O’Connor, chair of the EAC and CEO of Clinton Management. “Ryan’s extensive knowledge of economics and forecasting, and Kenneth’s vast experience in housing development and collaborating with municipal agencies will complement our council as we design new programs reflective of the evolving real estate industry.”
“From student to professor to professional, I have been a beneficiary and proponent of education,” said Severino. “I am always eager to help further and improve education, and joining the EAC provides me with an unparalleled opportunity to accomplish that.” “It is an honor and privilege to join this prestigious council of real estate thought leaders,” said Morrison. “As a Fordham graduate school alum, I have been able to intimately experience the learning culture and values of the institution. I look forward to sharing my industry experience and my recent experience as a student with the EAC as the program continues to grow.” Severino is responsible for global and regional economic research, analysis and forecasting as well as property market research at Bentall Green Oak (BGO). Prior to joining BGO in May 2023, he was chief economist at JLL, where he managed the economics team and performed global and regional economic research and forecasting, as well as property market forecasting. Severino also has held senior research positions at Reis, MetLife Real Estate Investments, Starwood Capital Group, Prudential Real Estate Investors and UBS.
82 MANN REPORT | NOVEMBER / DECEMBER 2023
Severino is an adjunct professor of finance and economics at Columbia University and New York University and is also a chartered financial analyst. He earned a master’s degree from Columbia University and a bachelor’s degree from Georgetown University. He is a member of the CFA Institute, the American Economic Association, the National Association for Business Economics, the Urban Land Institute and the National Council of Real Estate Investment Fiduciaries. Morrison, a licensed New York State real estate broker, oversees Lemor Development Group, which focuses on real estate investments, consulting and development. Morrison is active in promoting affordable housing and has worked with municipal agencies in New York and New Jersey to develop projects including The Robeson, a 10story building in Central Harlem, and Balton Commons, a seven-story mixed-use development in New York City. Morrison earned a bachelor’s degree in business and entrepreneurship from the University of Phoenix, and recently completed a Master of Science degree in real estate at Fordham University. He is on the boards of Bradhurst Merchants Association, New York City Habitat for Humanity and New York Real Estate Chamber and is chairman of the Greater Harlem Real Estate Board. “We are thrilled to welcome Ryan and Kenneth to our Executive Advisory Council,” said Anthony R. Davidson, dean, of the Fordham School of Professional and Continuing Studies. “We look forward to collaborating with our new council members as we continue to develop our curriculum to prepare future leaders of the real estate industry.”
Morrison and Severino join the following on the Executive Advisory Council Ryan O’Connor President and CEO Clinton Management Chair of the EAC MaryAnne Gilmartin Founder and CEO MAG Partners LP Special Advisor to the EAC Anthony R. Davidson Ph.D., MBA Dean Fordham School of Professional and Continuing Studies (PCS) Scott Avram Senior Vice President of Development Lightstone Nicole Bryan Associate Dean Fordham PCS Stacey Cohen CEO and President Co-Communications
Yasmin Cornelius Senior Vice President, Community Affairs L+M Development Partners
Neil Madsen Principal Madsen Advisors LLC
Patricia Simone President Simone Management Group
Kathleen Donovan Managing Director, Real Estate Finance Group UBS
Caren Maio President Moved
Peter Tzelios Attorney and Investor
Bess Freedman CEO Brown Harris Stevens
James Whelan President Real Estate Board of New York
Christopher Mills CEO and President Electra USA
Guthrie Garvin Managing Director JLL
Louis Mirando Founder and Principal Streamline Realty Funding, LLC Former Chairman of EAC
Martin Gilligan Senior Director Guardian Life
Robert Morgenstern Director Fordham Real Estate Institute
Lonny Hendry, Jr. Senior Vice President Trepp
Carlos Olivieri Senior Vice President Edward J. Minskoff Equities LLC
Harvey Luk, Fordham REI MSRE CFO Vision and Beyond Capital Investments
Rob Willis Head of Construction MAG Partners Heidi Winslow Partner DelBello Donnellan Weingarten Wise & Wiederkehr LLP Gabriela Petrova, Fordham REI MSRE Executive Associate Mega Contracting Group Genevieve Spuhler, Fordham REI MSRE Analyst, Construction Risk Management Related Companies
NOVEMBER / DECEMBER 2023 | MANN REPORT 83
ARCHITECTURE • ENGINEERING • CONSTRUCTION
Skanska Deploys Zero-Emissions Construction Machinery on Active Los Angeles Project Skanska is piloting a zero-emissions electric excavator on Los Angeles Metro’s Purple (D Line) Extension Transit Project. The Volvo EC230 is the largest electric excavator of its kind, designed to have the same capabilities as a diesel excavator. Because it is powered by batteries, not an engine, using the Volvo EC230 will lower emissions on the job site and reduce noise during construction. Skanska is replacing the current diesel-powered Komatsu PC228 excavator with the Volvo EC230 to load trucks of export material from a stockpile at the South Yard of the La Brea Station.
The EC230 is the largest of its kind
84 MANN REPORT | NOVEMBER / DECEMBER 2023
“The construction industry is responsible for 40% of energy-related carbon emissions,” said James Bailey, executive vice president of Skanska USA Civil. “Our goal at Skanska is to continue to be a thought leader in sustainable solutions for the construction industry. We have worked with innovation leaders and partners — like LA Metro, Sunbelt and Volvo — to share knowledge and resources as we work toward net-zero solutions. Participating in this pilot allows us to continue to be a part of the transition to low-carbon, zero-emissions construction. Doing so on a large-scale project like the Purple (D Line) Extension Transit Project will provide a unique insight to inform sustainable innovation moving forward.”
The trial is for 90 days
The goal of the 90-day trial — one of four pilot programs in North America — is to test the success of an electric excavator of this size on a significant megaproject like the Purple (D Line) Extension Transit Project, while further advancing Skanska’s mission of reducing embodied carbon emissions.
towards a higher set of green standards,” said Mason Ford, director of sustainability and equipment services Skanska USA Civil. “The use of this large electric excavator on a public transit megaproject adds to our continued implementation of green technologies, moving Skanska toward our global climate targets of net-zero carbon emissions by 2045.”
“Skanska has a strong track record of incorporating green practices and green products into our projects. By piloting the use of the Volvo EC230, Skanska is continuing to take steps to minimize carbon emissions on our job sites, allowing us to work with LA Metro and other clients to build
The Volvo EC230 excavator has been launched in Europe, where Skanska has utilized the EC230 on its Slakthusområdet project, and separately in China. The equipment is expected to be available in North America in 2024.
Photos courtesy of Skanska
Electricity replaces diesel
NOVEMBER / DECEMBER 2023 | MANN REPORT 85
F E AT U R E S | C O M M E R C I A L
A large steel cardio ramp that features yellow risers and sidewalls and a black ramp is the key feature of the training room.
54D studio’s 850-square-foot lobby area includes a reception desk, a small merchandising area and a social section.
54D Opens Manhattan Flagship Wesbuilt Construction Managers and Miami Beach, Florida-based architectural firm Thirlwall have completed a $2.2 million renovation and fit-out of the ground floor of 125 West 25th St., a 12-story commercial building, as the location of the New York flagship fitness club of 54D, the international fitness brand headquartered in Mexico City. 54D owner Rodrigo Garduño and his U.S. team worked closely with Wesbuilt and the design team to ensure that the new project reflects the corporate aesthetic that immediately makes each 54D studio recognizable. With original locations in Mexico City and Bogotá, Colombia, 54D recently expanded to Miami and Coral Gables, Florida and is developing plans for an additional site in New York City as well as in Los Angeles, California. The third Florida location, in Hallandale, is scheduled to open in early 2024. “We are a global fitness brand dedicated to human transformation through physical, mental and emotional changes in every participant. This new space will enable us to expand the program to include new members in New York City,” said Rodrigo Garduño, the founder and creator of 54D. “Wesbuilt is very familiar with the construction challenges inherent in building training and fitness facilities in urban locations,” explained Mark Galway, Wesbuilt principal. “Completing this new 7,000-square foot studio, our first project for this
86 MANN REPORT | NOVEMBER / DECEMBER 2023
brand, required specialized skills from the design and construction team, including designing and installing extensive noise mitigation solutions. We are proud to have delivered this project four weeks ahead of schedule to help 54D successfully launch its New York City flagship location.” In addition to Wesbuilt and design architect Thirlwall, the project team included executive architect Mija Architecture, acoustical consultant Criterion Acoustics, MEP engineer NY Engineers and owner’s representative Stys Hospitality Initiative. Intense stimulating music provides an essential backdrop to 54D’s exercise sessions. The potential for loud noise drove the Manhattan site selection process. The new space is narrow at the street front and extends deep into the building and is not easy to fill with tenants. Sound attenuation requirements were incorporated into the lease terms. “The configuration of the Chelsea space allowed for proper sound isolation,” shared Omar Yunes, 54D’s CEO. Thirlwall created a design palette that still uses industrial materials, but of a high-quality finish grade that includes powder-coated corrugated and diamond plate metal panels, painted OSB boards and polished concrete. Black wall and floor finishes highlighted with signage and accents in yellow and white provide striking visual interest.
F E AT U R E S | C O M M E R C I A L The new West 25th Street studio represents the brand’s first location in a multi-story building and a high-density urban area, and the design was developed as a prototype for future similar sites. The landlord did not permit façade work, so the architect maintained the existing full-height glazed storefront exterior wall to permit passersby to have clear views into the space and allow the studio to claim its place in the neighborhood.
Second, the design included two new air handling units that were a long lead item at 30 weeks. Wesbuilt consulted with MEP engineer NY Engineers to identify an alternate unit that was available in 24 weeks. While the team waited for the delivery, Wesbuilt installed a temporary rental unit and connected it to the new ductwork to allow the gym to open, and then changed out the system when the permanent unit was delivered.
The high visibility approach had to consider the high noise level in the training rooms combining the sounds from sub-woofers that play stimulating music and vibrations from the exercise equipment. In order to minimize ambient noise, the studio layout was altered to place the fitness room at the rear and the community area at the front of the space. In addition, Thirlwall and Mija worked closely with acoustical consultant Criterion Acoustics to develop construction details that would contain the noise within the studio.
Mitigation of noise generated from music, jumping and exercise equipment was an important consideration throughout the project duration. David Kotch, principal of Criterion Acoustics, teamed with 54D early in the design process to assist in
The industrial warehouse design vernacular that represents the 54D brand identity is reflected in the finishes used throughout the studio. Gypsum board walls, open ceilings, and exposed ductwork are painted in Benjamin Moore Racoon Fur 2126-20, a light black shaded with violet. Flooring in the lobby and treatment rooms is light gray painted polished concrete. All 54D lobbies contain two large yellow and white logos, laser cut from PVC and mounted on black powder-coated steel mesh panels. In the New York location, the first logo is positioned directly in line with the entrance door and is clearly visible from the street. The second is located in the social area and hung above a low bench of yellow laminate and backlit with LED lighting. Social media is very important for brand marketing and members use this second logo as a backdrop for selfies that they can post on social media to promote their fitness progress. The reception desk is faced with Nero Marquina black marble slabs and the adjacent yellow and black laminate shelving in the merchandise area has built-in LED highlight strips. A feature wall of subway tile surrounds a beverage center in the social area. Furniture in the social areas of each studio has been chosen to reflect regional trends. For example, in Coral Gables, plastic Knoll chairs with bright yellow seating cushions were chosen to reflect the local design community. In New York, the social area is furnished with a large table from Restoration Hardware, Magis Design’s Spun chairs in wood finish and bright yellow metal mesh accent chairs from Bluedot. The training room contains several features that are emblematic of the training program and interior branding. A large steel cardio ramp that features yellow risers and sidewalls and a black ramp is the key feature of the space. Barbells are stored on custom-designed millwork faced with black powder-coated diamond plate steel. Inspirational messages cut in oversized vinyl letters are applied to oriented strand board (OSB) panels that have been painted to retain the appearance of the underlying grain. Black Sof Surfaces Dura Sound rubber tiles with embedded yellow striping carry the branding across the floor. Punching bag rigging that was fabricated and assembled onsite has a raw steel look with intentional rusting. Punching bags are lined up along one studio wall that is paneled in light gray painted corrugated metal. An array of LeMonde exercise bikes was customdesigned in black and yellow finishes to coordinate with the color scheme. Fluxwerx Profile linear LED lighting fixtures of varying lengths are used throughout the training room. Three-spoke Profile fixtures are featured in the lobby. 54D had a strict 16-week schedule for the opening, but the construction of the specialized sound attenuation components of the project strained its limits.
Punching bag rigging that was fabricated and assembled onsite has a raw steel look with intentional rusting.
site selection. The landlord retained an acoustical consultant as well, and the two parties negotiated allowable decibel levels and wrote constraints into the lease. Criterion developed a custom sound isolation system to surround the training room. The walls are double framed, with two metal stud support structures separated by an air space. On each side of the air space are four layers of 5/8inch Type X gypsum board panels. Head and floor tracks are isolated from the surrounding structure by rubber gaskets to reduce vibration. The team engineered rubber isolation washer plates to be used in conjunction with steel fasteners to attach the wall framing to the building structure. The design of the ceiling presented a particular challenge as office space is located directly above the studio and sound attenuation was critical. The training room has four 18-inch Meyer Sound 900-LFC subwoofers located directly below the ceiling. Criterion designed a cardioid subwoofer array that directs the sound down toward the floor, and with input from Wesbuilt developed a kinetic spring system to isolate the woofers from the ceiling. The ceiling is designed as an acoustic lid system consisting of three layers of gypsum board hung on kinetic springs with batt insulation above to absorb cavity resonance. Existing building ductwork and piping serving the tenant space above run directly below the ceiling slab, and Wesbuilt wrapped those elements with Soundseal B10 Lag vinyl seal noise barrier to prevent sound from being transmitted to the office space above. The Lag was also used to mitigate sound transmission to an existing air-handling unit that is located in the basement below the studio and serves other areas of the building. To mitigate vibration and impact noise generated by members using the cardio ramp and the punching bag rack, Wesbuilt installed a one-inch-thick custom elastomer base directly between the concrete floor and these two elements and fastened them with the same custom washer isolation system that was used in the wall construction.
Photo credit: Ola Wilk Photography
NOVEMBER / DECEMBER 2023 | MANN REPORT 87
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VOCON EXPANDS NEW YORK LEADERSHIP TEAM WITH BAKER National strategy, architecture and design firm Vocon announced that Wyett Baker has joined as workplace leader in its New York office. He will work with leadership to foster business and professional development initiatives across the business. Baker brings more than 25 years of experience in the design and construction of corporate, educational and cultural projects nationally. Prior to joining Vocon, he served as an account leader and design manager specializing in large and complex projects at Gensler. His work spans the United States, and he has spent the last 10 years working with large professional and financial service firms on corporate headquarters projects in the New York Metropolitan Area. “The immense skill Wyett brings to Vocon, and his long-standing partnerships within the industry, will bolster our firm’s growth,” said Debbie Donley, founder and principal at Vocon. “Relationships are the foundation of our firm, and talented leaders like Wyett are crucial to our continued growth as we create innovative workplace solutions for our clients.” Baker received a bachelor’s degree in architecture from Pratt Institute and is a member of the American Institute of Architects. Photo courtesy of Vocon 90 MANN REPORT | NOVEMBER / DECEMBER 2023
RCKRBX NAMES BRODER EXECUTIVE VP, BUSINESS DEVELOPMENT Rckrbx, a real estate data intelligence platform designed to deliver real-time, demand-side customer insights based on comprehensive responses from thousands of current and prospective renters within specific markets, has named Kris Broder as executive vice president of business development. She will lead the company’s business development strategies to accelerate Rckrbx’s expansion into new markets, growth of its subscriber base and development of key industry partnerships in current and future markets. “Broder’s illustrious career across the commercial real estate sector and aptitude for nurturing genuine, long-lasting professional relationships with essential industry players will be instrumental to Rckrbx’s growth and success as we enter new markets and fortify our subscriber base,” said James Moore, co-founder and COO of Rckrbx. Broder joins Rckrbx from BECO Management, where she most recently served as executive vice president, brand and workplace experience. Throughout Broder’s 28-year tenure at BECO, she was widely recognized for her ability to establish connections that drove value and as a catalyst of growth for the company and the customer alike. She also brings a deep knowledge of various commercial real estate verticals, including brokerage/leasing, marketing, development, property management and construction. She attended the University of Maryland, where she received her bachelor’s degree in communication.
Alejandro Gala Anton D. Nikodemus
GALA NAMED CREATIVE DIRECTOR AT TPG ARCHITECTURE TPG Architecture LLP, a New York City-based architecture and design firm, announced that Alejandro Gala has joined the firm as creative director. Gala brings nearly 20 years of industry experience to the role, including a global portfolio spanning the retail, hotel, commercial and building repositioning market sectors. “Alejandro excels in translating clients’ visions into tangible designs that exceed expectations,” said Jim Phillips, founding partner of TPG. “His time working and living in several countries will provide TPG and our projects with an extra layer of creativity and influence, weaving his cultural experiences into concepts.” Having worked and traveled to over 65 countries, Gala's design and international background has greatly influenced his completed projects found around the world for Adidas, Simon Property Group, Brookfield Properties, Delta Airlines, Microsoft Corporation, Royal Caribbean Cruises and others. Gala also played a role in the design of a number of properties for New York City-based owners and landlords including ESRT, Vornado, SL Green and Hines.
HOWARD HUGHES HOLDINGS NAMES NIKODEMUS CEO OF NEW ENTERTAINMENT DIVISION Anton D. Nikodemus has been appointed chief executive officer of Seaport Entertainment, a newly formed division comprising Howard Hughes Holdings’ (HHH) entertainment-related assets in New York and Las Vegas — including the Seaport in Lower Manhattan and the Las Vegas Aviators Triple-A Minor League Baseball team, as well as the company’s ownership stake in Jean-Georges Restaurants and its 80% interest in the air rights above the Fashion Show Mall, which are intended to be used to create a new casino on the Las Vegas Strip. Nikodemus, a veteran of the entertainment and hospitality industries, will focus on delivering a world-class guest experience, accelerating growth and operating performance and exploring new strategic opportunities for expansion. HHH is establishing Seaport Entertainment with the intention of completing its spinoff as a publicly traded company by year-end 2024.
Before joining TPG, Gala worked as an associate at Gensler and Vocon in New York City and held positions at firms across Spain, Belgium, The Netherlands and China.
He most recently served as president and COO of CityCenter for MGM Resorts International, where he oversaw operations for The Cosmopolitan of Las Vegas, Vdara Hotel & Spa and Aria Resort & Casino. He was also responsible for creating and developing the MGM National Harbor Hotel & Casino in Maryland and the MGM Springfield in Massachusetts. Prior to MGM, Nikodemus oversaw the redevelopment and management of the Boca Raton Resort & Club.
Photo courtesy of TPG Architecture
Photo via PRNewswire NOVEMBER / DECEMBER 2023 | MANN REPORT 91
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A MODERN APPROACH TO COMMERCIAL REAL ESTATE POWERED BY A CENTURY’S WORTH OF EXPERIENCE
KAUFMAN'S REPOSITIONED PROPERTIES
Ian Bel Ian Bel Managing Principal and CEO Olive Tree Holdings
t Olive Tree, Ian Bel oversees the
including Olive Tree Affordable Housing,
the Low Income Housing Tax Credit (LIHTC)
company and all affiliate platforms
Olive Tree Ventures and The Life Properties.
program, to be able to complete extensive
— including Olive Tree Affordable Housing and Olive Tree Ventures,
renovations, lowering operating costs and Who has influenced you?
guaranteeing affordable rent restrictions .
the proptech venture investment arm of Olive
I have had many mentors throughout my life
Tree Holdings. Under Bel’s leadership, Ol-
that I am grateful for. One stands out as some-
Are some areas easier than others?
ive Tree has acquired and transformed over
one who had an outsized impact on my life.
Some 73% of extremely low-income renter
16,000 units of workforce and affordable
Jerry Nelson, a serial entrepreneur and major
households are severely housing cost-bur-
housing communities across eight states
philanthropist. Jerry is responsible for the
dened, spending more than half of their limit-
and has deployed over $250 million in capital
development of 9,000 North Scottsdale, Ari-
ed incomes on housing. With such a dramatic
expenditures. Prior to forming Olive Tree, Bel
zona acres, 8,000 homesites and some of the
shortage of affordable housing nationwide,
was a principal at One Wall Partners, where
world’s best golf destinations. He funded the
finding residents for our units has been an area
he spearheaded the partnership’s multifamily
creation and startup of numerous companies,
of operation that has proved simpler. These
acquisitions and capital raising.
including Ticketmaster. He established envi-
units are both desired and needed, and we
ronmentally friendly business codes to pre-
are dedicated to increasing that supply across
Bel also serves as a strategic advisor to Stake,
serve Scottsdale’s Sonoran Desert landscape
the markets that we operate within for up to 30
the first fintech platform built to create tenant
and educated over 6,000 children annually
years through our long-term hold strategy.
wealth through carewards, and a board ob-
through his Desert Center programs. What is the effect of rising interest rates?
server to Moved, a disruptive logistics platWhat is the biggest challenge facing
Rising rates will result in greater default pro-
pensity, stricter lending requirements, de-
How long have you been in the industry?
Transaction volume is down across the board
creases in available supply due to projects not
Over 17 years.
as a result of the tighter capital markets envi-
penciling and reduced new supply.
form and marketplace.
ronment, which limits the ability to improve the How did you join the industry?
existing affordable housing stock or add to the
We are starting to see evidence that the in-
When I was a student at Binghamton Uni-
stock through new development. In addition,
creased interest rate environment is having a
versity, I noticed a significant lack of quality,
high inflation has put tremendous pressure
lagging effect on wage growth and unemploy-
affordable housing options for students.
on our naturally occurring affordable housing.
ment. It is possible, and perhaps likely, that if
I began investing in homes near campus,
Rising operating costs are forcing rents to
rates stay elevated in a sufficiently restrictive
renovating them and renting them to my
increase in order to cover debt service, further
territory, that we will see more recessionary
peers. Over time, I cultivated that passion
restricting access to housing. To combat this,
headwinds which will put pressure on margins
into what is now Olive Tree Holdings, along
we have focused on pushing many of our nat-
and wages, thus making rent and home own-
with our supporting affiliate companies,
urally occurring affordable housing deals into
ership as a percentage of income even higher.
94 MANN REPORT | NOVEMBER / DECEMBER 2023
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BY THE NUMBERS
THE HIGHS AND LOWS OF THE FIRST HALF Your parents were right — discipline pays off. After decades of speculation that e-commerce, then lockdowns, would kill in-person shopping, the retail sector has emerged as the steadiest in commercial real estate, with little new supply leading to historically low vacancy rates. The industrial sector is cooling off 2022 highs, though still healthy and life sciences investment is slowing, while the multifamily sector soars as homeownership stalls. What this will bode for the future remains to be seen, but so far, so good, as we can see by the numbers.
The percentage of consumers who have
Current industrial real estate vacancy rate,
paused home-buying plans as of August
up marginally year-over-year. (Cushman &
(Fannie Mae Home Purchase Sentiment
Wakefield, U.S. Industrial Marketbeat, Q2
Renewals as a percentage of office leasing
The national retail vacancy rate for the first
activity year-to-date in 2023 (Avison Young,
half of 2023, its lowest rate in 15 years and
Q3 U.S. Office Market Overview)
unchanged for the last four quarters (Colliers)
The number of multifamily units absorbed in
The number of life sciences investment deals
the first half of 2023, quadruple the amount
in the first half of 2023, down from 1,133 for
absorbed in 2022 (Newmark, 2023 US Multi-
the same period of 2022 (JLL, 2023 Life Sci-
family Capital Markets Report)
ences Industry and Real Estate Perspective)
96 MANN REPORT | NOVEMBER / DECEMBER 2023
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