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Behind the Scenes President & CEO Jeff Mann

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One Mann’s Opinion It’s hot in the city (it’s been humid for days) — and it’s a hot and busy time here at Mann Publications!

Our team has been traveling the city, and the country, to find out what’s going on and meet you, our readers, face to face. We’ve visited visionary conferences and fashion weeks and are preparing for more.

And as you also will see in this issue, the city’s event scene is back in full force with more to come.

We’re also looking forward to the National Realty Club’s annual golf outing, celebrating the organization’s 75th anniversary, being held October at the Fresh Meadow Country Club. This fundraiser, which will support NRC’s outreach and the NRC Foundation (which supports charities that are focusing on building New York), will honor Bob Knakal, chairman of New York investment sales at JLL. My father, Irving Mann, along with Harry Helmsley, Aaron Gural and other real estate greats, founded the NRC to provide a forum to discuss issues of the day. It’s my privilege as its president to continue and expand that mission. Contact me for information about the NRC and what promises to be a great day of golf and networking.

The following months will be even more exciting — I’m thrilled to announce that a new magazine, Mann Retail, will debut this fall, providing the only one-stop source for news and trends for every aspect of the industry, from merchandise, to real estate, to technology and systems. Under the direction of our own veteran retail maven, Debra Hazel, our advisory board will include leaders from associations, research organizations, retailers, real estate companies and more. Debra and I are beyond excited to introduce this magazine by year-end and look forward to hearing what you want and need to know.

“Don’t lower your expectation to meet your performance. Raise your level of performance to meet your expectations. Expect the best of yourself, and then do what is necessary to make it a reality.”

— Ralph Marston

Jeff Mann President/CEO, Mann Publications

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Contents 54

Cover Features 52 10 Things to Look Out for in Commercial Real Estate in the Next 24 Months 54 MidYear Recap/Report/Trends

Events 16 Kramer Levin Hosts Spring Cocktail Reception 18 JNF-USA’s Leonard Litwin New York City Real Estate Tree of Life Gala Honors Haim Chera and Glen Weiss 20 REBNY Brings New Flavor to Annual Event

26

22 Big Brothers Big Sisters of New York City Honors Finance Industry Leaders at 24th Annual Accountants & Bankers Reception 24 James Lenox House Association Hosts Spring Blossoms Gala 26 Corenet NYC Hosts 2022 Annual Dinner

News Briefs 30 Commercial News 34 Residential News 38 Management News 42 Tech Talk 46 Breaking News

Editor’s Letter After our double-issue break, we’re back!! I hope you’ve enjoyed a little time off, too — or will soon.

Welcome to our Mid-Year Review, where experts in the commercial and residential sectors offer their views of the first half of the year and what may lie ahead. Jeff Holzmann of RREAF Holdings bravely looks forward to the next 24 months, while Michael Nourmand describes the changes in Los Angeles residential sales, which offer a glimpse into nationwide trends. Also check out our guide to trends in liability and taxes, and my interview with Robin Zeigler, the mixed-use expert who has just formed MURAL Real Estate Partners to revitalized underserved communities.

A couple of pages back, our publisher Jeff Mann has told you about our latest venture, Mann Retail, a magazine focusing on all aspects of the industry I’ve been reporting on and analyzing for more than three decades, that will be in your hands by the end of the year. I’m thrilled to be entrusted with this launch (while continuing to edit Mann Report), and can’t wait to share details with you in coming issues.

Meanwhile, I’m honored to have been asked by Springboard Marketing and Insights Director Diane Wehrle (a future contributor to Mann Retail) to moderate her webinar “Emerging from the pandemic,” discussing the effect of hybrid working and economic challenges on U.S. retail for the rest of the year, scheduled for 10 a.m. Eastern on Wednesday, August 17. We’ll be joined by some amazing industry guests who will talk their performance this year and what lies ahead. Visit spring-board.info on how to register for this free, online discussion.

It’s a busy end of summer, with more to come!

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PHOTO EVENT

Kramer Levin Hosts Spring Cocktail Reception

02

01

03

01. Jeffrey Fastov, Square Mile Capital; Pete McLaughlin, USAARE; Adelaide Polsinelli, Compass Commercial; Jay Neveloff, Kramer Levin and Laurie Golub, Square Mile Capital Management 02. Sean McSweeney, Mitsui Fudosan America; Jay Neveloff, Kramer Levin; Bob Knakal, Jones Lang LaSalle and Andy Charles, Kramer Levin

K

03. Gary Tarnoff, Kramer Levin; Anthony Shaskus, JVP Management; Jay Neveloff, Kramer Levin; Van Nguyen, JVP Management; Tzvi Rokeach, Kramer Levin and John Illuzzi, JVP Management

ramer Levin’s Real Estate and Land Use groups hosted a

Marty Burger, Suri Kasirer, Michael Parley and Simon Ziff. According to

spring cocktail reception outside on the patio of Bryant

Jay Neveloff, chairman of Kramer Levin’s Real Estate group, both the

Park Grill in Manhattan’s Bryant Park. The well-attended

quality and number of attendees at the event exceeded all expecta-

spring kick-off event drew nearly 300 key players from the

tions — and “further demonstrated the pent-up demand of New York

New York City real estate community, ranging from the city’s largest

City’s real estate industry to safely converge in person for an evening

commercial and residential developers and investors to the prominent

of successful networking.”

Kramer Levin real estate and land use attorneys who work closely with many of them. Among the notable clients who attended were

16 MANN REPORT | AUGUST 2022

Photos by lipofskyphoto.com

PHOTO EVENT

04

05

06

07

08

09

11

10

04. Ma!hew Adell, Adellco; Meenakshi Srinivasan and Sheila Pozon, Kramer Levin and David West, Hill West Architects 05. Jay Neveloff, Kramer Levin; Suri Kasirer and Julie Greenberg, Kasirer Consulting and Andrew Miller and Ray Gu, DAJIA US 06. Michael Parley, Development Consulting Services; Jay Neveloff, Kramer Levin and Joe McMillan, DDG Partners 07. Marty Burger, Silverstein Properties; Jay Neveloff and Howard Spilko, Kramer Levin and Simon Ziff, Ackman-Ziff Real Estate Group 08. Peter Bazeli, The Weitzman Group; Elizabeth Stribling, Compass; Jane Gladstein, Gladstein Development and Andrew Miller and Casey Drake, DAJIA US

12

09. Victor Sigoura, Legion Investment Group, Marty Kravet, Royal Abstract and Ari Shalam, RWN Real Estate Partners 10. Seth Niedermayer, Todd Lenson and Mendel Trapedo, Kramer Levin; Cameron Lewis and Samantha Sacks Gallagher, VICI Properties; Jordan Rosenbaum and Tzvi Rokeach, Kramer Levin and Elena Keil, VICI Properties 11. Laura Rapaport, North Bridge; Josh Winefsky, Kramer Levin; Abbe Borok, Bentall Green Oak And Tzvi Rokeach, Kramer Levin 12. Chris Oka, Angelo, Gordon & Co.; John Wolf, Westbrook Partners and Jay Neveloff, Kramer Levin

AUGUST 2022 | MANN REPORT 17

PHOTO EVENT

JNF-USA’s Leonard Litwin New York City Real Estate Tree of Life Gala Honors Vornado Realty Trust’s Haim Chera and Glen Weiss

N

Roy Kirsh and JNF-USA CEO Russell F. Robinson

Russ Krivor, Roy Kirsh and Avi Dorfman

early 300 New York real estate professionals attended

established in memory of Gregory A. Davis, the founder of JNFuture,

Jewish National Fund-USA’s Leonard Litwin New York City

Jewish National Fund-USA’s community of young philanthropists ages

Real Estate Tree of Life Gala at The Pierre Hotel to honor

22 to 40 who are dedicated leaders with a passion for supporting the

industry leaders for their tremendous professional and

land and people of Israel.

philanthropic accomplishments.

Founder of Douglaston Development, Jeffrey E. Levine, and David R. The elegant event in New York City was dedicated in memory of

Greenbaum, vice president of Vornado Realty Trust, were the event’s

Stanley Chera and honored Haim Chera, executive vice president,

honorary chairs. Lloyd Goldman, founder of BLDG Management,

head of retail at Vornado Realty Trust, and Glen J. Weiss, executive vice

opened the program, and Steve Roth, chairman of Vornado Realty

president, co-head of real estate, Vornado Realty Trust, with Jewish

Trust, presented the awards to the honorees. A"endees included in-

National Fund-USA’s prestigious Tree of Life Award, which recognizes

dustry leaders such as Ofer Yardeni, Bess Freedman and Gary Jacob,

outstanding community involvement.

among others.

The gala also honored Roy I. Kirsh, principal, Urban Company Real Estate, with the Gregory A. Davis Leadership Award. The award was

18 MANN REPORT | AUGUST 2022

Photos by A Guy + A Girl Photography

PHOTO EVENT

01

02

03

04

05

06

07

08

01. Lloyd Goldman, BLDG Management 02. Steven Roth, Vornado Realty Trust 03. Bess Freedman and Joshua Young, Brown Harris Stevens 04. Josh Young, Brown Harris Stevens and Ben Levine

05. Michelle Bernstein and Peter Bernstein 06. Michelle Kleger and Sherry Li 07. Ofer Yardeni and Steven Schwartzman 08. Shari and Ofer Yardeni, Stonehenge Partners

AUGUST 2022 | MANN REPORT 19

PHOTO EVENT

REBNY Brings New Flavor to Annual Event

01

02

03

04

05

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01 Douglas Durst, The Durst Organzation and REBNY chairman 02 New York Governor Kathy Hochul 03 James Whelan, REBNY president; Jeff Levine, Douglaston Development; Hal Fetner, Fetner Properties; Governor Kathy Hochul: Joel Picket, Gotham Organization and Douglas Durst, The Durst Organization and REBNY Chairman 04 Bernard Warren, Webb & Brooker Inc. and Darcy Stacom, CBRE

T

05 Gaston Silva, Vornado Realty Trust and Frank Pusinelli, RXR Realty 06 James Whelan, REBNY president: Sarah Saltzberg, Bohemia Realty Group; Bess Freedman, Brown Harris Stevens and Douglas Durst, The Durst Organization and REBNY chairman

he Real Estate Board of New York (REBNY) marked its 126th

featuring a variety of culinary tastes and drinks from some of NYC’s top

year with nearly 2,000 real estate industry and business

chefs and mixologists.

leaders, government officials and other guests in its revamped annual event, “New York Forever: A Celebration of

Our City,” at The Glasshouse in Manha!an.

“The biggest night in real estate was unlike any other in REBNY’s history,” said REBNY President James Whelan. “For the first time in almost three years, we gathered in person to not only

Unlike REBNY’s previous annual events, this year’s celebration de-

celebrate our industry leaders but also applaud the resilience

parted from the past tradition of black tie, banquet hall and sit-down

of New York City and the exciting future ahead. It was truly an

dinner. With fresh energy and in cocktail attire, the event kicked off

unforgettable night.”

with red carpet interviews featuring REBNY’s annual honorees and top real estate executives from across the city. A cocktail hour reception

Guests enjoyed drinks and cocktails from Brooklyn Brewery and New

included REBNY’s annual award ceremony honoring industry leaders

York Distillery. A diverse menu of canapes from top NYC chefs includ-

and advocates and featuring celebratory remarks from Governor Kathy

ing special guest chef Daniel Boulud, were also served, under his

Hochul and Ingrid Lewis-Martin, chief advisor to Mayor Eric Adams.

purview. Other chefs included: Michael Lomonaco of Porter House Bar

REBNY then welcomed guests to a dynamic networking reception

and Grill and Hudson Yards Grill; J.J. Johnson of Fieldtrip; Ash Fulker

20 MANN REPORT | AUGUST 2022

PHOTO EVENT

01

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03

04

05

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07

08

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01 Leslie Himmel, Himmel + Meringoff Properties and Joel Picket, Gotham Organization 02 Hazel Dukes, NAACP 03 Mary Ann Tighe, CBRE 04 Bob Knakal, JLL Capital Markets 05 Bruce Mosler, Cushman & Wakefield

06 Hilary Spann, Boston Properties 07 Chef Daniel Boulud 08 Hazel Dukes, NAACP and REBNY President James Whelan 09 Ingrid Lewis-Martin, chief advisor to Mayor Eric Adams 10 Laura Jackson, SL Green Realty Corp. and Lauren Calandriello, JLL

of Hill Country; Joseph Rosa of Hudson West; Anastacia Song of Kumi

man and co-founder of TF Cornerstone Inc.; The Kenneth R. Gerrety

NY and Anwar Khoder of Li-Lac Chocolates.

Humanitarian Award, presented to Sarah Saltzberg, co-owner of Bohemia Realty Group; The Louis Smadbeck Memorial Broker Recognition

The event was held in partnership with NY Forever, a nonprofit organ-

Award, presented to Darcy Stacom, chairman and head of New York City

ization working to recapture faith and pride in New York by organizing

Capital Markets at CBRE; The George M. Brooker Management Exec-

and motivating New Yorkers from every borough and generation to

utive of the Year Award, presented to Frank Pusinelli, senior executive

participate in the city’s civic rebirth.

vice president, chief operating officer-operating assets at RXR Realty, and The Young Real Estate Professional of the Year Award, presented to

During the cocktail reception, REBNY recognized nine honorees for un-

Laura Jackson, senior vice president, tax director, SL Green Realty Corp.

paralleled commitment to the civic welfare of New York City and its resi-

The Harry B. Helmsley Distinguished New Yorker Award was presented

dents, outstanding personal and professional success, and exceptional

jointly to Hal Fetner, president and CEO of Fetner Properties; Jeff Levine,

contributions to the industry. Awards and honorees included: The John

founder and chairman of Douglaston Development and David Picket,

E. Zucco!i Public Service Award, presented to Hazel Dukes, president of

CEO of Gotham Organization.

the NAACP New York State Conference; The Bernard H. Mendik Lifetime Leadership in Real Estate Award, presented to Tom Elghanayan, chair-

Photos courtesy of REBNY

AUGUST 2022 | MANN REPORT 21

PHOTO EVENT

Big Brothers Big Sisters of New York City Honors Finance Industry Leaders at 24th Annual Accountants & Bankers Reception

H

Jeff Resnick, Joe Ferrone and Barry Resnick, Friedman LLP

Honoree Blair Ridder, M&T Bank

undreds of executives from New York City’s accounting,

and commitment to BBBS of NYC’s mission. Li!le Saphir, a mentored

banking, finance, fashion and law industries joined Big

youth, and Big Christian Vastola, his caring adult mentor, introduced

Brothers Big Sisters of New York City (BBBS of NYC), the

both honorees, recognizing them for their tremendous leadership

nation’s first and New York City’s largest youth mentoring

and support.

organization for its 24th Annual Accountants & Bankers Reception at Inside Park at St. Bart’s in Manha!an. The event recognizes industry

This year’s event was chaired by Abby Parsonnet, BBBS of NYC trustee

leaders who are dedicated to mentorship and have made an impact in

and head of commercial services and regional president, Metro NY

the accounting and banking fields.

at Webster Bank, and raised more than $350,000 to support BBBS of NYC’s mission to build and support mentoring relationships that ignite

This year, BBBS of NYC honored Lee M. Cohen, CPA, founding and

the biggest possible futures for youth.

managing partner at L.M. Cohen & Company (LMC), and Blair Ridder, regional president-New York City at M&T Bank, for their success

22 MANN REPORT | AUGUST 2022

Photos by Jill Lotenberg

PHOTO EVENT

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01 Elliot Berger, BBBS of NYC; Joe Nastri, Valley National Bank and Mark Jerz, Faherty Brand 02 Li!le Saphir; Honorees Lee M. Cohen, LMC and Blair Ridder, M&T Bank and Big Christian Vastola 03 Alicia Iskhakova, Chase and Tony Creanza, Webster Bank 04 Leslie Himmel, Himmel + Meringoff Properties; Susan Newman, M&T Bank; Stephen Meringoff, Himmel + Meringoff Properties and Ma! Petrula, M&T Bank 05 Honoree Lee M. Cohen, LMC and his son, Stanley Cohen 06 Katie O’Boyle, and Sarah Larson, Wilmington Trust and Susan Newman, M&T Bank

07 Richard L. Stehl, O!erbourg LLP and Marc Federbush, Anchin LLP 08 Joe Nastri, Valley National Bank; Alicia Guevara, BBBSNYC; Little Saphir; Honoree Lee M. Cohen, LMC; Honoree Blair Ridder, M&T Bank and Big Christian Vastola 09 Lissa Baum, IDB Bank and Honoree Lee M. Cohen, LMC 10 Daniel Greene, U.S. Bank; Elizabeth Bennett, M&T Bank and John Rapaport, Component Assembly Systems 11 Frank Grimaldi, Gordon Brothers

AUGUST 2022 | MANN REPORT 23

PHOTO EVENT

James Lenox House Association Hosts Spring Blossoms Gala

Thomas Z. Scarangello and Roxanne Donovan, Mary Lenox Sheafe Award recipients with Joseph Girven, executive director of James Lenox House Association

T

ABC News’ Sandy Kenyon; Nancy Rabstejnek Nichols, Interpublic Group, James Lenox House Board member and Lifetime Service Award Honoree and Joseph Girven, executive director of James Lenox House Association

he James Lenox House Association (JLHA), comprised of

Award, the first time in JHLA’s 156-year history that the recipients were

James Lenox House and Carnegie East House, New York

husband and wife.

City’s not-for-profit independent and enriched living communities for older adults, hosted 350 guests at its Spring

Additionally, JHLA board member Nancy Rabstejnek Nichols, senior

Blossoms Gala on June 6, 2022 at the Ziegfeld Ballroom (141 West 54th

vice president, external affairs at Interpublic Group, received the Life-

Street) in New York City.

time Service Award.

Highlights of the gala included a live and silent auction, which helped

The Spring Blossoms Gala raises funds needed to support the more

to raise more than $700,000 for the communities. Sandy Kenyon

than 175 residents of James Lenox House and its sister residence,

of ABC Eyewitness News returned as Master of Ceremonies for

Carnegie East House, enabling vital health and wellness programs,

the evening.

including innovative exercise classes and a calendar of daily activities, social work counselors, guest speakers on health and safety topics,

Other standout moments from the night include the recognition of

Medicare counseling, tech help by student volunteers, robust libraries,

three exceptional New Yorkers, honored at the event for their contribu-

as well as cultural opportunities, in-house concerts and dance recitals

tions to JHLA.

for residents to socialize, which is critical given that a major enemy of older adults is social isolation.

The power couple of Thomas Z. Scarangello, P.E., executive chairman at Thornton Tomase!i, and Roxanne Donovan, president of Great Ink Communications, were recognized with JHLA’s Mary Lenox Sheafe

24 MANN REPORT | AUGUST 2022

Photos by Saul Robbins

PHOTO EVENT

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01. Mary Ann Tighe, CBRE 02. The Great Ink Communications team celebrates Mary Lenox Sheafe Award co-recipient Roxanne Donovan, president of Great Ink Communications (L to R): Mercedes Vega, Lindsay Church, Sara Picchioni Williams, Eric Gerard, Roxanne Donovan, Eric Waters, Tom Nolan, Eric Nizguretsky and Francisco Miranda 03. Randolph Deutsch; Nancy Rabstejnek Nichols, Interpublic Group, James Lenox House Board member and Lifetime Service Award honoree; Richard J. Haray, Interpublic Group and JHLA board vice president and Executive Director, Samuel Waxman Cancer Research Foundation and JHLA Board Member William T. Sullivan

04. Laurie Golub, Square Mile Capital and Leslie Harwood, Newmark 05. Thomas Z. Scarangello and Roxanne Donovan, Mary Lenox Sheafe Award recipients, with Suzanne and Grant McCullagh 06. John Carr and Alison and Jon Rodriguez 07. Maggie Mills, Randy Flood and JLHA Board Member Anne Connor 08. Rick and Simran Singh; Beth LaVelle, Orion and JLHA board member and Joseph Larucci, Aksia 09. Pa!y Read and James Read, MML Capital Partners 10. Judy Prince, Cesar Rochez and Alicia Sheen

AUGUST 2022 | MANN REPORT 25

PHOTO EVENT

CoreNet NYC Hosts 2022 Annual Dinner

CoreNet NYC Annual Dinner Commi!ee

Sara Francini, Nishar Fatema and Sarah Brown

Bre! Kaplan, Vito Bacarella and Lulua Achmann

Mindy Williams, Sarah Brown, Alison Kwiatkowski, Courtney Grill, Larry Charlip and Laura Patel

Alison Kwiatkowski, Ryan Mitchell and Nishar Fatema

Steven Haralambidis, Larry Charlip and Nekesha Sawh

oreNet Global’s New York City

backdrop of one of the city’s most beautiful

friends and colleagues to celebrate our city’s

Chapter (CoreNet NYC) hosted its

venues. Because the event could not be held

vibrant industry,” said Tommy O’Halloran, Core

2022 Annual Dinner, its first Annual

in 2020 or 2021, it was highly anticipated this

Net NYC Chair. “This year’s dinner was particu-

Dinner since 2019, at Casa Cipriani.

year, with opening remarks delivered by Ali-

larly special, as it also recognized the resilience

The event celebrated New York City’s real es-

son Kwiatkowski, president and Larry Char-

of commercial real estate and the fact that it

tate industry’s return to form following the tur-

lip, vice president of the New York Chapter of

is once again beginning to blossom in the

bulence of the past two years and was a!ended

CoreNet Global Inc. The dinner concluded

post-pandemic era and transform in new and

by 660 of the city’s top industry professionals.

with a dessert reception, a live performance

exciting ways. We are delighted by the turnout,

by Slippery Band and an evening of arcade

and want to thank our members, sponsors and

CoreNet NYC’s largest event of the year, this

games and other fun activities hosted in the

peers for their continued support as the heart

year’s Annual Dinner followed a “Swing Into

space adjoining the ballroom.

and soul of CoreNet and New York City.”

C

Spring” theme, with CoreNet members and guests sporting vibrant colors and enjoying

“CoreNet was thrilled to once again host this

a cocktail hour and dinner set against the

event, which brings together hundreds of

26 MANN REPORT | AUGUST 2022

Photos by Chris Bacarella Photography

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COMMERCIAL NEWS

Equitable Invests in SoLa Impact’s Black Impact Fund Equitable, a financial services company and

Americans in lower-income communities.

principal franchise of Equitable Holdings, has invested $15 million in the Black Impact

The move is part of Equitable’s commitment

Fund, the fourth fund of SoLa Impact. SoLa

to invest a portion of its General Account to-

Impact, a Black-led real estate developer and

ward creating meaningful and positive social

investment fund, is focused on providing

impact in the communities in which it serves.

Photo courtesy of PRNewswire

ing in California’s cities. SoLa launched the

SoLa Impact leverages private capital to meet

combines access to affordable housing with

fund, in part, to help address and improve

the demand for high-quality affordable hous-

access to education, capital and ownership

economic opportunities for Black and brown

ing in California’s urban markets. Its approach

to upli# Black and brown communities.

SoLa Impact CEO Martin Muoto

high-quality, affordable and workforce hous-

Prologis to Combine with Duke Realty in $26B All-Stock Transaction A#er months of back-and-forth, Prologis Inc.

own. The respective boards of directors for

and Duke Realty Corporation have entered

Prologis and Duke Realty have unanimously

into a merger agreement by which Prologis

approved the transaction.

will acquire Duke Realty in an all-stock transaction, valued at approximately $26 billion,

With the transaction, Prologis is gaining

including the assumption of debt.

properties in key geographies, includ-

basis comprises: 153 million square feet

ing Southern California, New Jersey, South

of operating properties in 19 U.S. logistics

Florida, Chicago, Dallas and Atlanta.

geographies; 11 million square feet of devel-

Under the terms of the agreement, Duke Re-

opment in progress and 1,228 acres of land

alty shareholders will receive 0.475x of a Prologis share for each Duke Realty share they

The acquisition on an owned and managed

owned and under option.

Taconic Partners Launches Life Sciences Platform To better expand and manage its growing

estate totaling 1.4 million square feet. While

life sciences portfolio, Taconic Partners has

all four of these projects are located in Man-

launched Elevate Research Properties, a

hattan, Elevate plans to invest in core lab

wholly owned subsidiary of Taconic that will

markets outside of New York as well.

be responsible for acquisitions, development, leasing and management in the sector.

Matthew Weir will serve as president of the

search Properties has two active lab devel-

With three projects in active development

new venture in addition to his current role as

opments: 125 West End Ave. and The Hud-

along with a recently announced future pipe-

executive vice president of Taconic.

son Research Center. Elevate will soon unveil plans for 309 East 94th St., a Class A research

line deal, Elevate will have approximately $2 billion of investment in life science real

On the West Side of Manha$an, Elevate Re-

lab development.

212

30 MANN REPORT | AUGUST 2022

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COMMERCIAL NEWS

GTIS Partners Launches Opportunity Zone Fund II GTIS Partners (GTIS), a global real estate in-

space, GTIS said, the fund is structured as a

vestment firm with $4.7 billion in gross assets

diversified REIT open to Accredited Investors

under management focused on residential

with a minimum commitment of $100,000

and industrial investments, launched its GTIS

through a securities offering registered on all

Qualified Opportunity Zone Fund II on July

major custodian platforms.

1. The fund is open to individual investors through many financial advisors or directly

Fund II is a continuation of the strategy em-

Zone funds raised to date. Fund I has com-

through an electronic subscription service

ployed by its predecessor GTIS Qualified

mitted to 15 investments mostly focused

in partnership with +Subscribe, the order

Opportunity Zone Fund I, which raised $630

on large regional Sunbelt markets across

management system for alternative product

million of investor capital and placed among

multifamily, single-family rental and industrial

transactions. Unique in the Opportunity Zone

the top five largest Qualified Opportunity

property types.

Sage Realty Signs Over 48,000SF at 777 Third Ave. Sage Realty, the leasing and management

ola of Cushman Wakefield; Big Sun Holdings

division of the William Kaufman Organization

Group, an investment management compa-

(WKO), has signed eight leases — some

ny, represented by Todd Abrams of Prime

new, some renewals — totaling over 48,000

Manha"an Realty; Tempus Ex Machina Inc., a

square feet at 777 Third Ave. Michael Lench-

sports data firm, represented by Elie Reiss of

ner and Jack Brennan represented Sage on

Skylight Leasing; Lisanti Capital Growth LLC,

all of the transactions.

represented by Todd Hershmann and Alex Rosenblum of Newmark and Bradford Allen

The new leases were: Serafina Express, rep-

Realty Services LLC, a real estate firm, repre-

resented by Michael Azarian and James Ari-

sented by Glenn Isaacson of Bradford Allen.

Photo courtesy of Sage Realty

Xomox Jewelry Expands to West 40th Street Norman Bobrow & Co. signed a lease for Xo-

Bobrow & Co. represented Xomox and Daniel

mox Jewelry at 240 West 40th St., where it is ex-

Lolai. Joel Kubie and Eric Siegel of LSL Advi-

panding its business and taking 13,500 square

sors represented the landlord, the Sioni Group.

feet, comprising the entire ninth floor.

“We showed our client many options,” said The fine jewelry manufacturer is moving from

Nazarian, who said the client agreed to leave

151 West 46th St., where it occupied 6,500

the submarket they originally wanted, a#er see-

square feet. The new 10-year lease has an ask-

ing the high-end building finishes at 240 West

ing rent of $52.

40th St. “The landlord also works efficiently and quickly, reassuring that our customer can

Michael Nazarian and Ma" Kashani of Norman

32 MANN REPORT | AUGUST 2022

move in on time.”

Photo courtesy of Norman Bobrow & Co.

RESIDENTIAL NEWS

Habitat for Humanity International to Address Black Homeownership Gap Habitat for Humanity International is launch-

many Black people and communities of color

ing an initiative to address the racial home-

continue to face,” the organization said in

ownership gap. Habitat’s Advancing Black

the announcement.

Homeownership initiative “deepens our commitment to increase homeownership op-

Leveraging funds provided in part by phi-

portunities for Black individuals and families

lanthropist MacKenzie Scott’s $436 million

— and address the racial and systemic bias

donation, Habitat is initially investing more

that has stymied access to homeownership

than $25 million over the next three to five

programs, including an equitable commer-

for generations — through programs that will

years — with a goal of raising $100 million or

cial lending strategy and property acquisition

help end the social and economic disparity

more — to develop and launch a slate of new

fund through Habitat Mortgage Solutions.

Realogy Completes Rebrand to “Anywhere” Say goodbye to Realogy and hello to Any-

strategic shift for the company, which is

where, as the residential real estate servic-

home for real estate brands including Be!er

es company has completed its corporate

Homes and Gardens Real Estate, Century 21,

rebrand. Shares of Anywhere’s common

Coldwell Banker, Corcoran, ERA and Sothe-

stock now trade on the New York Stock

by’s International Realty as well as national

Exchange (NYSE) under the ticker sym-

title, settlement, and relocation companies

bol HOUS. The company’s CUSIP number

and scaled mortgage origination and un-

remains unchanged.

derwriting joint ventures. The company has

The new logo features an icon inspired by an

placed a strong emphasis on building a more

eight-stroke asterisk that has been modified

simplified, digitized and integrated home

as a sun rising above a home’s roofline.

The Anywhere rebrand reflects a broader

Photo courtesy of NYSE

buying and selling experience, it said.

Jungreis and Rosewood Realty Broker Strulovitch’s 13-Building Portfolio at Bankruptcy Auction Rosewood Realty Group’s Aaron Jungreis,

ferson Ave., 568 Willoughby Ave., 618 Lafaye!e

Greg Corbin and Chaya Milworn brokered

Ave., 834 Metropolitan Ave., 92 South 4th St.,

the $19.6 million auction sale of a 13-building

325 Franklin Ave., 53 Stanhope St. and 263 18th

portfolio in Brooklyn. Marvin Azrak, Joel Wertz-

St. The auction stretched over two days and

berger, and Josef Mikkelson were the winners

consisted of 142 rounds of bidding.

Photo courtesy of Rosewood Realty

of the auction.

According to Corbin, there were 11 registered

“The properties appealed to a vast range of in-

The 13 properties were part of Chaskiel Stru-

bidders who signed 27 contracts for the port-

vestors,” said Milworn. “We worked with buyers

lovitch’s 31-building portfolio. The bankruptcy

folio in bulk and for individual properties. A

who viewed it as a value-add multifamily or as

sale included: 1125-1133 Greene Ave., 1213 Jef-

bundle of five propertles are contiguous.

condo conversions.”

34 MANN REPORT | AUGUST 2022

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RESIDENTIAL NEWS

Concord Summit Capital Closes $269M Construction Loan on Florida Condos Concord Summit Capital LLC has arranged

Fortress Investment Group provided the

a $269 million construction loan for Nautilus

loan to the Peter Baytarian-led Forest, which

220, a 330-unit luxury condominium project

recently brought on Daniel Kodsi of Royal

that is the first of its kind in Palm Beach Coun-

Palm Companies as a co-general partner in

ty’s Town of Lake Park. The borrower, Forest

Nautilus 220.

Nautilus 220 Photos courtesy of Concord Summit

Development, is developing 24-story twin condo towers on the water with a restaurant

Construction is underway, with an estimated

Concord Summit Director Justin Morrow and

from chef David Burke (his first in Florida)

completion in the second quarter of 2024.

Managing Director Kevin O’Grady, both of

and many amenities in the town just across

The project’s floating sales center is located

Concord Summit’s Miami office, sourced the

the Intracoastal Waterway from Singer Island.

on a barge in the Lake Park marina.

financing on behalf of the borrowers.

New York Area Residential Sales Increase by 15.8% in June 2022 Despite rising mortgage rates, housing de-

ed $605,000 in May 2022.

mand remains high for New York real estate and supply remains low. The result is that

S i x o f n i n e c o u n t i e s re p o r t e d a n i n -

the number of New York regional residential

creased closed median sale price while

sales transactions between June 2022 rose

two of nine counties reported a decrease

15.8% over the previous month’s figures, re-

a n d o n e re p o r t e d n o c h a n g e . We s t-

ported OneKey MLS.

c h e s t e r (1 1 . 6 % ) , B ro n x ( 5 . 3 % ) , N a s sau (4.4%), Putnam (4%), Orange (2.6%),

The closed median sale price was $615,000,

and Suffolk (0.9%) had month-over-month

representing a 1.7% increase over the report-

increases in closed median sale price.

Photo via PRNewswire

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luxury housing in the area, as well as the

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The five-story, design-driven boutique building’s light-filled residences have been metic-

Envisioned by Abell Design, the condomin-

ulously cra#ed to create a modern, yet warm,

ium’s façade is composed of contemporary

aesthetic anchored by soaring ceilings and

Roman brick, creating a point of resonance

a serene color pale$e. This increased focus

with the surrounding buildings as well as the

on design, as well as strategic decision to

classic pre-war architecture for which New

incorporate communal, outdoor spaces,

York is known.

36 MANN REPORT | AUGUST 2022

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MANAGEMENT NEWS

Capital Square Partners with Esusu to Expand Corporate ESG Program Capital Square, a national sponsor of tax-

est rent relief funds when families encounter

advantaged real estate investments and an

financial hardship that impacts their ability to

active developer of mixed-use multifamily

meet contractual rent obligations.

communities, has partnered with Esusu, a financial technology company advancing rent

“This is a powerful expansion of Capital

reporting and data solutions for credit build-

Square’s rent reporting and relief program

ing. As a result of the partnership, Capital

for thousands of multifamily residents and

Square will empower its residents to improve

expansion of our commitment to ESG,”

a win-win that benefits residents while

their credit scores through rent reporting and

said Louis Rogers, founder and chief

improving the stability and occupancy of

provide the opportunity to apply for 0% inter-

executive officer of Capital Square. “It is

multifamily communities.”

Moss Adams Adds Mengali Accountancy, Inc. Moss Adams LLP, a Seattle-based account-

Both teams share a technology-focused

ing, consulting and wealth management

mindset, people-first culture and caliber of

agency, has combined with Mengali Ac-

talent, including parallel experience with

countancy Inc., a boutique consulting firm

outsourced accounting and bookkeeping

specializing in the real estate industry in

services for a variety of national real estate

downtown Healdsburg, California. Effective

clients, the announcement said.

August 1, the Mengali team, including Renee

small businesses, real estate funds, joint ventures and syndicators and individuals

Mengali, its namesake founder, as well as

For the past 19 years, Mengali has built a

capitalize on their resources. Mengali has a

principals Debbie Warren and Keith Holland-

strong referral network and is a streamlined

particular expertise in serving clients in the

er, joins Moss Adams.

tech-driven firm that has primarily helped

real estate industry.

Romer Debbas LLP, Katz & Matz P.C. Merge Romer Debbas LLP, a specialist in real estate

Katz & Matz was founded in 1994 to serve

law, has merged with award-winning New York

buyers and sellers of residential real estate.

City residential real estate firm Katz & Matz P.C.

The firm will operate under Romer Debbas and

to form New York City’s largest dedicated res-

extend service to all legal ma!ers.

idential real estate practice. Together in 2021, the firms closed approximately 1,900 residen-

Bruce D. Katz and Steven Matz, principals of

tial purchase/sale transactions for individual

Katz & Matz, joined Romer Debbas on July 1

clients and approximately 1,400 residential

as partners. They will be joined by a team of 18

loan transactions on behalf of various lending

lawyers, paralegals and assistants.

38 MANN REPORT | AUGUST 2022

tial real estate practice in the greatest city in the world,” said Pierre E. Debbas, founder and

institutions. The combined firm will operate as Romer Debbas LLP.

Pierre Debbas Photo courtesy of Romer Debbas

“Romer Debbas has the number one residen-

managing partner, Romer Debbas.

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MANAGEMENT NEWS

SHVO Partners with Saks Fifth Avenue for Mandarin Oriental Residences Luxury development and investment firm

Owners at the forthcoming Mandarin Ori-

Shvo announced an exclusive partnership

ental Residences, Fifth Avenue, located at

between two of its residential develop-

685 Fifth Ave. in New York City, and Man-

ments, Mandarin Oriental Residences,

darin Oriental Residences, Beverly Hills,

Fifth Avenue, Beverly Hills, and Saks Fifth

at 9200 Wilshire Blvd., will enjoy exclusive

Avenue. This collaboration will provide

cross-channel benefits bringing together the

residents at the New York and Beverly

best from Saks’ digital platform and in-store

store shopping, at-home styling appoint-

Hills properties with special in-residence

experiences, such as a dedicated Saks con-

ments and same-day delivery.

offerings, VIP services and curated

cierge and Saks Stylist, as well as exclusive

lifestyle programming.

experiences, such as private after hours in-

Photo courtesy of PRNewswire

Closings will commence in 2022.

Syska Hennessy, Third Millennium Group Launch Holistic Auditing Program for Smart Technologies The engineering firm Syska Hennessy Group

building automation systems, sustainability,

competitive leasing environment, tenants

and real estate owner Third Millennium

and facilities management. The team con-

care about multiple components of building

Group have launched a holistic auditing pro-

ducted inaugural audits at two Third Millen-

performance; not just energy efficiency or

gram that measures four aspects of building

nium commercial properties in Chicago —

technology,” said Syska associate partner

performance: indoor air quality, building au-

540 West Madison and 300 South Riverside.

Tom Grimard.

tomation systems and telecommunications

Third Millennium, which shared the resulting

infrastructure, sustainability and execution

“scorecards” with tenants, plans to repeat the

Syska Hennessy Group is a global engineer-

(workflows and use of data).

process with Syska every year.

ing firm that specializes in MEP, information

Syska’s auditing team comprises experts in

“Third Millennium understands that in today’s

and communication technology (ICT), vertical transportation and commissioning.

Trane Premieres First Air-to-Water Heat Pump; Announces Redesigned Precedent Rooftop Units Trane, the global climate specialist, has re-

series, the Precedent standard efficiency six- to

leased the Ascend Air-to-Water Heat Pump

25-ton units, are available now.

Model ACX, the first air-to-water pump solution

Photo courtesy of Trane

in its portfolio that provides both electric heat-

Trane’s Ascend Air-to-Water Heat Pump Model

ing and cooling, giving building owners an

ACX combines chiller and heat pump technolo-

avenue to pursue decarbonization via electrifi-

gy to both heat and cool a building using elec-

of the building to the inside. The heat pump

cation. Trane also is bringing a new generation

tricity. In cooling mode, the model ACX moves

moves heat using a compressor, rather than

of Precedent rooftop units to market, consol-

heat from inside the building to the outside. In

simply generating heat. This technique can

idating the legacy Precedent and Voyager 2

heating mode, a reversing valve changes the

make heat pumps up to three times more ener-

offerings. The first models in the redesigned

flow of energy to bring heat from the outside

gy-efficient than other forms of electric heating.

40 MANN REPORT | AUGUST 2022

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 imeister@matthewadam.com | matthewadam.com

TECHTALK

Avison Young Leasing Digital Property in the Metaverse Add another company to the list exploring the

represent ownership, as the exclusive leasing

metaverse. Avison Young’s New York office has

agents for Everyrealm’s digital retail space.

been retained by Everyrealm as the exclusive

They also represent Everyrealm, the metaverse

leasing agent for its MetaMall in the metaverse

investment and developer company, in the

platform Decentraland. It is a turnkey, digital

leasing of its New York City headquarters at 335

retail property located at coordinates 100, 18, in

Madison Ave.

Photo courtesy of Avison Young

square feet of experiential retail space, includ-

Decentraland’s Fashion District.

MetaMall sits directly across from Everyrealm

ing a lobby, two conference floors, a game

Peter Johnson, director of the growth technol-

and JP Morgan’s other experiential retail devel-

floor and three floors available for lease. The

ogy practice group and Leah Zafra, associate,

opment, Metajuku. Its six floors total 364,000

leasable space consists of 121,000 square feet.

HomeLight Agrees to Acquire Accept.inc Residential real estate tech firm HomeLight has

“In a time period with so much volatility in the

entered into a definitive agreement to acquire

capital markets, our business is stronger than

Accept.inc, a Denver-based fintech lender that

ever. This financing round is a testament to our

gives homebuyers a way to submit all-cash of-

growth and the future potential of our business,

fers on a home upon qualifying for a mortgage,

and it’s enabled us to go on the offensive during

in an all-stock transaction. With this acquisition,

uncertain times,” said Drew Uher, founder and

HomeLight will become the largest agent-

CEO of HomeLight. “That includes this acquisi-

focused cash offer program in the country, with

tion. We’re thrilled to welcome the Accept team

cash offers and are commi#ed to delivering the

$3 billion in referred transaction volume in Q1

to the HomeLight family. We share the vision that

power of contingency-free transactions to top

2022 alone, the company said.

all offers in real estate will eventually become

agents and their clients across the country.”

Drew Uher Photo courtesy of HomeLight

Simon Launches Platform for Consumers to Shop Mall Merchandise Online It’s been a much-discussed wish: for con-

located at Simon properties nationwide.

sumers to be able to shop a mall’s merchandise, and not just research stores, online.

“Simon Search brings new search capabili-

Now, it’s coming true: Simon has launched

ties to our retail centers, offering shoppers

Simon Search, a search platform designed

multiple ways to search for specific in-store

to enable shoppers to research in-stock

merchandise,” said Mikael Thygesen, chief

bar, delivering enhanced inventory visibility

products available at participating retailers

marketing officer, Simon. “Simon is com-

to our shoppers. Consumer research has

located within a Simon property. Simon

mi#ed to providing shoppers with the most

shown that almost 90% of shoppers are in-

Search is available through the Simon app,

enjoyable shopping experience possible.

terested in the enhanced search capabilities

property websites and interactive directories

This game changing search tool raises the

provided by Simon Search.”

42 MANN REPORT | AUGUST 2022

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TECHTALK

167 Green Launches Apple Wallet Employee Badge for Tenants Get out those iPhones! Every company at

in collaboration with Sharry, a European

167 Green St. in Chicago now offers its staff

proptech company, and HID Global, a global

building access through employee badges

provider of secure identity solutions. 167’s

in Apple Wallet. Located in Chicago’s Fulton

employee badge was designed by Don C., a

Market District neighborhood, 167 Green

streetwear designer and Chicago native.

St. is the first multi-tenant office building in the United States to offer the benefit.

Tenants can tap their iPhone or Apple Watch to unlock office doors, turnstiles, elevators

The technological deployment for 167

and key card-protected amenity spaces,

Green’s Apple Wallet integration was done

even when the phone needs charging.

Photo courtesy of PRNewswire

UpEquity, Zavvie Join Forces To help prospective homebuyers compete

Idaho, Illinois, New Jersey, Oregon, Pennsylva-

against their all-cash competitors, tech-enabled

nia, South Carolina, Tennessee and Texas —

lender UpEquity has announced a collaboration

with plans to add eight more by the end of 2022.

with Zavvie, the real estate brokerage marketplace connecting broker-agents to buyers and

By becoming part of Zavvie’s real estate bro-

sellers. This partnership will expand UpEquity’s

kerage marketplace, UpEquity significantly ex-

solutions to real estate brokerages with thou-

pands its ability to partner with top brokerages

sands of agents nationwide.

throughout the U.S. that use Zavvie’s modern

well-qualified buyers, boosting purchasing pow-

marketplace, the company said.

er even for first-time homebuyers. Moreover, sellers can make a cash offer on their new home,

UpEquity is available in 15 states — Arizona, California, Colorado, Connecticut, Florida, Georgia,

UpEquity provides zero-cost cash offers for

then sell their old one.

LiftMaster Introduces Smart Video Intercom for Small Multifamily Buildings Li#Master, a maker of professionally installed

Through the myQ Community app, resi-

access solutions, has expanded its line of

dents have access to one-way video calling

smart video intercom access systems for

and two-way video voice communication

small multifamily buildings and single-fam-

to identify guests before granting access,

ily homes. Powered by myQ technology,

recurring or one-time virtual guest passes

Li#Master Smart Video Intercoms empower

and a “press to unlock” feature that allows

property owners and residents to open

residents to unlock authorized entrances

doors and manage guest access remotely

with their smartphones. Property managers

and enhance the security of the building

have access to 24/7 monitoring capabilities

with video features.

and real-time activity alerts.

44 MANN REPORT | AUGUST 2022

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BREAKING NEWS

Cedar Realty Trust Completes GroceryAnchored Portfolio Sale Cedar Realty Trust has completed the pre-

The completed transactions are the first step

viously announced sale of a portfolio of 33

in the company’s previously announced sale

grocery-anchored shopping centers and a

of its assets and subsequent merger with

redevelopment property to a joint venture be-

Wheeler REIT in a series of related all-cash

tween a fund managed by DRA Advisors LLC

transactions. The final step of the process,

and KPR Centers for total gross proceeds

expected to be completed in the next few

of approximately $879 million, including as-

weeks, is the merger of the company with a

Total net proceeds from the transactions,

sumed debt. It previously sold its Riverview

Wheeler subsidiary in an all-cash transaction

a"er all expenses, will be distributed to com-

Plaza redevelopment property for gross pro-

that values the Cedar’s remaining assets

mon shareholders upon the completion of

ceeds of approximately $34 million.

at $291.3 million.

the Wheeler merger.

PREIT Sells Multifamily Land at Moorestown Mall Still in a divesting mode, PREIT has sold two

COLLEGES

Corners Property Trust for $2.4 million.

additional assets for $14.2 million. Multifamily land adjacent to Moorestown Mall in New

At press time, PREIT expected to close on

Jersey was sold for approximately $12 million

six additional outparcels for $22 million in the

and will be the site of 375 residential units.

coming weeks. The company continues to

Planned multifamily development

This transaction represents PREIT’s second

raise capital and sell assets with purchase

Photo courtesy of PREIT

multifamily land sale following an Exton

and sale agreements executed for another

Square Mall transaction that yielded approx-

$56 million and additional transactions in

asset sale proceeds and excess cash from

imately 350 units. Additionally, the company

the pipeline for execution. As part of its debt

operations to pay down debt by $82 million

has closed on the sale of an outparcel to Four

reduction plan, the company has applied

through June 30, 2022.

Berkley Insurance Company Renews at 757 Third Ave. In just the second deal over 60,000 square

the 10th and 11th floors under an eight-year

feet signed on Third Avenue this year,

lease in the building that it has called home

BentallGreenOak has renewed Berkley

since 2014. Berkley Insurance Company is a

Insurance Company’s lease at 757 Third,

member of W. R. Berkley Corporation.

a 504,953-square-foot office building in Midtown East owned by BentallGreenOak,

The landlord continues to add value to the

announced JLL.

asset with a dedicated amenity center designed to meet demand from tenants seek-

Berkley Insurance Company will continue to

ing facilities and services that help attract

occupy 60,000 square feet of space across

and retain employees.

46 MANN REPORT | AUGUST 2022

757 Third Ave. Photo courtesy of JLL

pitality

ES

n of

Schulte Roth & Zabel’s Real Estate Group

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BREAKING NEWS

Mark Kaplan Promoted to President of Ripco Real Estate Independent brokerage firm Ripco Real

2021 launch in Florida, with offices in Miami

Estate LLC has promoted Mark Kaplan to

and Tampa; expanded the brokerage team

president. Kaplan will also continue to serve

from 33 to more than 100 brokers; launched

as the company’s chief operating officer.

investment sales, property management and debt/equity and structured finance divi-

Mark Kaplan

Kaplan joined Ripco in 2017. Since then, he

sions and led the company through its first

Photo courtesy of Ripco

has increased its market presence from three

merger and acquisition deal with the recent

Kaplan is a licensed real estate broker and

offices to eight, with locations in Manha#an,

acquisition of BCD, a restaurant real estate

member of the New York State Bar Associa-

Queens, Brooklyn, New Jersey, Long Island

brokerage specializing in the development

tion. He graduated with honors from Colum-

and Connecticut, as well as the company’s

and expansion of food and beverage brands.

bia Law School.

Thor Equities Group Acquires Los Angeles Industrial Asset for $85M Thor Equities Group and Danish pension

the Thor PFA USA Industrial Fund and Thor

fund PFA announced the acquisition of

PFA European Mixed-Use Fund.

12065 Pike St. in Santa Fe Springs near Los Angeles, a premier cold storage warehouse

Situated on 8.7 acres, the asset includes

fully leased to the world’s largest brewing

two buildings totaling 158,800 square feet

12065 Pike St.

company, Anheuser Busch.

and features 16 exterior docks, 25-foot clear

Photo courtesy of Thor

heights, a 110-foot truck court, and excess Thor Equities and PFA have been partnering

land for fleet and trailer parking, a rarity

access to Interstates 5 and 605, the property

since 2016 to acquire, develop and operate

in the Los Angeles market. Located in the

is 17 miles from Downtown Los Angeles and

best-in-class assets and have established

Mid-Counties submarket of Los Angeles with

24 miles from the Port of Los Angeles.

Nemo Tile + Stone Acquires Tile Market of Delaware Nemo Tile + Stone, a provider of high-

foot warehouse that supports the region’s

performance, design-driven surface materi-

retail, builder, designer, and contractor in-

als, has acquired Tile Market of Delaware.

dustries and serves as a 10,000-square-foot design showcase and delivery center.

Family founded in 1996, Tile Market of Delaware distinguished themselves as tile

Tile Market of Delaware sells goods around

distributors and stone fabricators in the mid-

the country thanks to the recent introduction

Atlantic region and now dominates the

of its national brand, Urban Coast Tile, a

state’s tile and stone market. Based in Wilm-

specialized brand that targets upscale

ington, Delaware, it boasts a 73,000-square-

coastal regions.

48 MANN REPORT | AUGUST 2022

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COVER STORY

10 Things to Look Out for in Commercial Real Estate in the Next 24 Months Jeff Holzmann chief operating officer at RREAF Holdings

By Jeff Holzmann

W

ith increased interest rates, a war

position. That lender has the option to fore-

4. So, are we all doomed? No, the market

in Europe and a divided political

close on the asset in case of default, ensur-

is always striving to find equilibrium and

landscape, everyone’s projec-

ing they return their investment and returns

historical data shows us that rates adjust and

tions for commercial real estate

before anyone else “up the capital stack”

correct over time. It’s been 40 years since we

in 2022 are out the window, and it’s time for

gets their part. These senior secured posi-

saw this kind of inflation, but we have rea-

some new assumptions. Large players are

tions are usually tied to market rates driven

sons to believe the market will stabilize even

updating their macroeconomic projections,

by inflation and interest rates. Now that rates

quicker this time. The main alternative for

and here is what everyone is thinking about,

are in the higher single digits, this means

commercial real estate developers is to pivot

and how it can impact you and your money.

the investment needs to turn a lot more prof-

from buying to building. This process in-

it to be able to pay off the senior secured

volves completely different sets of costs and

1. Everyone is in real estate. The largest

loan, and still leave some profit to the other

risks, and tends to increase supply, which

wealth in the world was either created or

investors like the second lien, mezzanine,

reduces cost, which leads to a lower cost of

preserved by real estate. It is a staple of any

preferred and common equity.

capital and hence has a stabilizing effect. Not everybody can do that, and unless you are a

economy. You are also invested in real estate, if not directly as an owner or investor in prop-

3. So, if debt is more expensive, how do

vertically integrated, experienced developer

erties or REITs, then through your 401(k),

we make up the difference? The only two

with the right know-how to build, then pivot-

your kid’s college fund, or even if you rent an

ways to increase the potential of real estate

ing the business may not be an option.

apartment. The market impacts you, your dis-

assets are by increasing revenues (usually

posable income and your retirement savings.

rent) and reducing expenses (usually im-

5. What about other asset types? Most

provements and services, since we can’t

asset classes in real estate depend on resi-

2. Interest rates impact real estate debt

control taxes, insurance, etc.). This equation

dents, tenants or guests to pay the rent. The

directly. Most commercial real estate deals

means that the higher the interest rate, the

multifamily sector is more diverse, spreading

are funded by a typical capital stack. That

higher landlords will attempt to raise the

the cost and risk across multiple units. The

stack is composed of different tiers of capi-

rents. This equation of “will rent increase as

office building model tends to be driven by

tal; the further up you move on the stack, the

much as interest rates” is what you’ve been

much longer leases and hence stable, but

higher the risk and the higher the potential

seeing on the news lately. Since rents are

offices post-pandemic are still on the fence,

return. The lowest part is referred to as senior

driven by market forces, it becomes a ques-

as more companies are adopting a virtual,

debt, meaning it is the most senior secured

tion of Supply and Demand in local markets.

remote or hybrid model, reducing the need

52 MANN REPORT | AUGUST 2022

COVER STORY

cial means to support this cost, you will join many others who lock in a fixed-rate or roll the dice and borrow at a floating rate in this economy. If you have the means to rent and sit this cycle out, you may see lower rates in the next 24 months. Remember, that mortgage lender wants your business and will tell you all kinds of stories. Always consult with a professional who has your best interest in mind.

9. How do I learn more about real estate investing? Start by Googling it. There are tons of books, videos, courses, seminars, professional clubs and all kinds of gurus that want to teach you. The basics of “breaking for large office space. Retail also took a huge

sis for investment in real estate in those areas

into commercial real estate” are not complex,

hit during the pandemic, and non-anchored

remains very strong.

and most people become knowledgeable

retail centers are still considered a risky

within a few months of reading, talking and

investment. The hotel and extended stay

7. Does the war in Europe affect me? It

listening to professionals. This doesn’t mean

sectors have rebounded very well and are ex-

does. The ban on Russian oil (which repre-

you will be ready to go out and become a

periencing some of their best times in recent

sents about one-third of the global supply)

real estate developer yourself, but it will give

history based on an average daily rate (ADR)

is driving the cost higher. That means that

you the tools to evaluate some of the oppor-

and revenue per available room (RevPAR)

anything that needs to be transported is

tunities that are out there and make a more

data across the country. New community

going to be more expensive. That includes

educated decision rather than a “gamble”.

developments are also very popular, such as

building materials, executive travel, market-

in Texas, which has seen an influx of compa-

ing costs, etc. If you are investing in an area

10. Lastly, where do I invest my money if

nies and individuals, increasing the demand

where most materials need to be transported

I want to make a good return? Everyone

for housing along such key corridors as the

in, you are doubly impacted.

wants to know that, and we are not invest-

Interstate between Austin and Dallas.

ment advisors. We can tell you to be careful Another impact of global conflicts is that

whom you ask that question in the first place.

6. Why is everyone moving to Texas? They

they drive consumer uncertainty. With the

It’s important to understand that any invest-

aren’t, but it sure seems like it. The pandemic

threat of an armed war and U.S. involvement,

ment has risk associated with it, and many

has changed the conventional thinking for

most people tend to hold on to what they

things can go wrong, just like in real life. The

many companies and individuals, especially

have and feel less excited about investing in

best thing is always to consult with a profes-

young professionals. You can now move

future projects.

sional who can explain the risk profile and

to states that have more business-friendly

potential returns. That said, always consider

local governments, less taxes, lower cost of

8. So, is this a good time to buy a home

whom you are investing with, especially

living and offer more space for less money.

before it gets worse? Probably not. History

in this economy. You likely want to go with

Since travel has bounced back, companies

teaches us that rates are cyclical. An average

someone who has a proven track record of

are hiring everywhere and large companies

30-year mortgage just a few years ago was

experience, is diversified across multiple

including Tesla and Micron Technologies are

3%; now the cost is more like 6%. If you found

markets and asset classes and has the re-

moving to Texas. Even if you are not consid-

the home of your dreams, consulted with a

sources to pivot and fix issues as they come

ering moving to such states yourself, the the-

professional and feel that you have the finan-

up. Because they always do.

AUGUST 2022 | MANN REPORT 53

COVER STORY FEATURES

RICS' Goal: Making Buildings Mid-Year Perform for People Worldwide Recap/Report/Trends

By Debra Hazel

By Michael Nourmand Michael Nourmand Michael Nourmand is president of Nourmand & Associates Realtors, a family-owned residential brokerage with offices in Beverly Hills, Brentwood and Hollywood, California.

R

eal estate, like politics, may be local — but there are a number of issues that have become a global concern, including sustainability,

supply and labor issues and returning people to the office a#er COVID-19.

Ann Gray, CEO of Gray Real Estate Advisors, now serves as president of RICS (formerly the Royal Institute of Chartered Surveyors), which recently launched the International Building Operation Standard (IBOS), a new, data-based approach to measuring and managing how buildings perform for people, especially in a new era when flexibility is key. It builds upon traditional building performance assessments to include user experience to satisfy the needs of occupiers, investors, advisors and end-users.

“There’s a real recognition now that sustainable investing has a higher return,” Gray said. “All of our surveys are showing that a

I

and best practices.”

t was off to the races right from the start of 2022 for the real That was one factor behind the creation of estate market. One week before the new year, the market briefIBOS, which was intended to support organily slowed down for the holidays. Immediately a"erward, during zations in a!racting people back to the workthe first week of the year, I was negotiating two deals while overplace, by delivering confidence for end-users seas on vacation. Normally, deals start to pick up during the second or that the building they’re in is supporting third week of January. their wellness, and benchmarking success against driving down the commercial sector’s What was driving this? Strong demand, limited inventory and low carbon footprint. interest rates. It seemed that 2022 would be another record-break-

ing year; all that was holding back sales was the availability of The standard, which is supported by comhomes to purchase. However, the situation changed as interest mercial and public sector organizations as Ann Gray to increase, rates continued and high inflation, the war in Ukraine, well as service providers and existing certipersistent supply chain issues and other headwinds started to cre“You can start to measure the impact you’re fications such as Well and Wired, is the first ate some economic uncertainty. having on carbon before you put a shovel of its kind globally to deliver a consistent in the ground,” she said. “These are huge approach to help organizations assess and While interest rates started rising early in the year, pushback from trends and they’re not going away.” improve their building’s performance in such buyers started in March. There was a noticeable trend that some a broad way, RICS said. It will provide data on buyers were lowering their budgets and even exiting the market In fact, she observed, climate change is buildings with people at the center of future due to higher interest rates. Some buyers decided to stay in the posing an existential threat to the survival of decision-making and help embed ESG into home they owned rather than looking for a move-up purchase, entire nations. real estate strategy. allowing them to keep their low interest rate and monthly pay-

organizations worldwide that have a created

ments. One client wrote an offer for $4.5 million based on interest “One of the things that excites me is what’s Many organizations already monitor their rates from 90 days prior. When he called his mortgage broker, he growing out of COP 26 [the 2021 United Naproperties’ performance, including how realized that interest rates had gone up over one percent and he tions Climate Change Conference]. It started sustainable a building is. But according to could not afford this property. He had to revise his budget and is as governments ge!ing together to discuss respondents to the RICS Global Commercial now looking for homes up to $4 million. As of today, he is frustrated fighting emissions and climate with some Property Monitor, only 79% of America’s reand will most likely stay in his current home, which he owns but kind of consistency,” she said. “What’s really spondents believed that there are currently has outgrown. emerged from that is a body of shared global techniques and practices in place to measure

carbon standard for embedded and emi!ing

thinking about how we tackle these issues.

the environmental impact of buildings. Those

carbon, she said.

It’s thrilling to see that sharing of knowledge

that are in place need further development.

majority of people in our profession are considering sustainability when they participate in a project. That’s a positive trend. The data is there.”

That’s why RICS is among 50 professional

54 MANN REPORT | AUGUST 2022

MR_August 2022_Features.indd 44-45

COVER STORY RESIDENTIAL

For other buyers, it meant they would rent because they could no longer afford a home that fit their criteria. Buyers who were originally in the market to buy have been forced to lease large homes for the time being as they are priced out. This is only making it more a$ractive for institutional investors to buy more homes and rent them out.

The slowdown in transactions is reflected in the National Association of Realtors (NAR) stats that existing home sales declined for the fourth straight month (February – May) to a seasonally adjusted annual rate of 5.41 million. May sales were down 3.4% from April and 8.6% from May 2021. However, the median existing home sales price in May exceeded $400,000 for the first time and represents a 14.8% increase

Overall, the market is starting to look like it did prior to the pandemic.

from May 2021.

This will be the case for the rest of the year. It will be a good market, but the “financial steroids” provided to the economy have worn off. Don’t

Price appreciation is slowing down, the number of sales is decreasing,

anticipate a large swing in prices up or down. Interest rates have also

and inventory is increasing. It’s still a seller’s market, but it’s stabilizing.

already priced in the increase this year. The federal government under-

Per NAR, the May housing supply stood at 2.6 months. A balanced

estimated inflation, but it should move quickly enough to get inflation

market is usually five to six months of inventory, so it’s still far from

under control and still manage to avoid a recession.

the equilibrium. But there is more opportunity for buyers now. In past months, buyers were plentiful. There were way too many buyers and

Historically, real estate prices go up and down based on the economy

only a small percentage were able to compete in this vicious market.

more than interest rates, which is another reason prices will likely be

Who wants to run around nonstop for months and write 10 offers to

okay in 2022. Additionally, the banks were much stricter about under-

win a bidding war? Now, there’s an increase in real estate agents start-

writing home loans this time around and distressed sales in the U.S.

ing to solicit new buyer clients. Agents are touting their track records

represented less than 1% of transactions in May.

and how they can help buyers purchase property in print ads. All these Also, while there is plenty of research on how be used,” said Patrick Turner, chief technolfewer large companies, which have stocksigns point to a transitioning market.

However, the prices in second home markets may soften as well as people and buildings interact, data from the ogy officer of engineering for Acuto, in the piled construction materials due to supply properties on the fringe. There was a rush to buy a second home outsame survey shows that 81% of US and 86% announcement. “IBOS does just this and is a chain issues that linger after the pandemic.

While multiple offers are still common, the number of offers has deside of the city which caused prices to go up way too fast. This was a of Canadian respondents are seeing a rising foundational step for the sector to fully leverLand banking is also taking place. As a recreased. Homes that have flaws are now more difficult to sell because discretionary purchase so, should the economy change, this market demand for more flexible workspaces. As age data in the years to come — ultimately to sult, smaller builders are struggling. buyers are not willing to overlook shortcomings unless the price is will encounter more downward pressure on prices when people need property use changes, and the importance of drive be!er performance in buildings whetha$ractive. Some homes are selling under the asking price and buyers to unload these properties. The best way to safeguard a second home a healthy work-life balance increases, there er for people, the planet or finances.”

“Real estate was always kind of an odd, demare becoming firmer about contingencies. In addition, stock market investment is to focus on location. is a growing gap in measuring how a buildocratic process; all different kinds of people volatility, tech valuations dropping, and the fall of cryptocurrency has ing impacts people’s wellbeing and how to But climate is just one of many global issues used their talent and ingenuity to meet maradversely impacted sales. However, this recently worked to the adLastly, as more employees come back to work, they are going to pria!ract people back to the workplace, where that Gray will consider during her term as ket demand whenever and wherever it was vantage of one of my agents at Nourmand & Associates. She wrote oritize a reasonable commute even if they are only required to come it is beneficial. president. Others are not so positive — yet. needed,” Gray said. “It was a ragtag democa backup offer for a client and they got the deal because the buyer into the office three days per week. People also want to be closer to racy. With the pandemic, there has been such backed out when his cryptocurrency portfolio rapidly dropped in the action, so property values in the city will hold up better than in “The effective use of data can provide huge “Another trend that I’m hoping is reversible is a surge in demand and with the logistical value. Recently, more properties have been falling out of escrow, but the suburbs. COVID-19 was one of the rare moments in history where benefits in buildings. However, as the defithe concentration of wealth in fewer hands,” challenges in ge!ing materials and labor that they are generally selling again quickly. A note to buyers — write a prices outside of the city outpaced appreciation in the hub for several nition of building performance evolves and she said. there is a massive unfair advantage to a few backup offer. months. But, realistically, it won’t happen again in the near future. expands it is vital that there is a robust frameplayers. At some point, we will end up with an work detailing the elements that need to be

The post-Great Recession consolidation of

exaggerated investment in a few key sectors

considered and the corresponding data to

the industry has consolidated wealth among

when we really need it somewhere else.”

AUGUST 2022 | MANN REPORT 55

7/26/22 8:48 PM

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FEATURES

Mixed-Use Development Expert Robin Zeigler Forms Mural Real Estate Partners Robin Zeigler Former COO of Cedar Realty Trust to lead new venture, pursuing large-scale redevelopment opportunities in economically challenged neighborhoods throughout the U.S.

By Debra Hazel

S

ome people look at older cities and

tioning grocery-anchored centers in urban

see blight and problems. Robin

area into true community cores.

training and small business incubation.

“My time working as a chief operating officer

Zeigler has made a career of seeing “I saw how even more impactful it is to create

during the pandemic showed me a couple of

these types of vibrant communities which

things: how important necessity retail truly is,

historically have not had the level of capital

and the desire of people to be together, to be

That’s why the former chief operating

investment [as others],” she said. “But the

out and enjoy nice places — whether dining

officer of Cedar Realty Trust and Mid-

purchasing power and density are there.

outside or visiting a community gathering

Atlantic chief operating officer of Fed-

I’ve seen this need and I know I have the

space, matters,” she said. “The pandemic

eral Realty Investment Trust has formed

skill set and a unique purview as an African-

highlighted human nature above all real

MURAL (Mixed-Use Revitalization Ap-

American woman to address the needs in

estate fundamentals.”

proached Locally) Real Estate Partners, a

these underserved markets.”

nothing but opportunity to rebuild

communities for the 21st century.

The company is currently evaluating ac-

privately owned, full-service real estate company that aims to spur economic develop-

A Holistic Philosophy

quisitions and partnerships through-

ment through the conception, development

MURAL is based on a collaborative, com-

out the country and has earmarked more

and management of mixed-use assets in

munity-driven philosophy that balances

than $500 million for the purposes of mixed-

underserved urban and suburban neighbor-

ambitious development concepts with

use redevelopment and value-add reno-

hoods throughout the U.S.

sensitivity to the challenges that arise

vations on existing shopping centers or

from developing real estate in cultur-

multifamily product.

“I started in the mixed-use development

ally distinct neighborhoods that have

space during my tenure at Federal and as re-

h i s to r i ca l l y l a c ke d a cce ss i b l y p r i ce d

“The reason we selected that primary prod-

gional COO, oversaw the strategy and rede-

housing and quality goods and services.

uct type is because in these underserved communities, there is lack of quality retail

velopment of several mixed-use projects for the East Coast/Mid-Atlantic region,” she said.

The firm, as a consultancy or in developing

goods and services, including grocery stores

“I really got a sense of how important neigh-

its own projects, assesses opportunities

[and] day care centers,” she said. “While oth-

borhoods and how impactful they can be.”

through a holistic study of community

er developers that focus primarily on residen-

needs, such as availability of approach-

tial, including creating affordable housing,

a b l e h o u s i n g , f re s h f o o d , w o r k f o rc e

we looked at it with a more holistic approach.

Moving onto Cedar, she focused on transi-

58 MANN REPORT | AUGUST 2022

COMMERCIAL

A way of creating economic empowerment

neighborhood as well as higher-income are-

Zeigler has made a point of including other

in these neighborhoods is to make sure there

as. The market’s mindset is still shi#ing.

persons of color on her team.

with placemaking, community gathering and

“The most difficult is ge$ing the capital pro-

A Diverse Executive Team

attainably priced housing. One without the

viders who truly support our mission,” and

Joining Zeigler at MURAL are Jessica Tan

other is not as impactful or powerful in creat-

understand it, she said.

as vice president of development, Vanes-

is a vibrancy on the street that retail creates,

ing economic vibrancy in the community.”

sa Rodriguez as senior vice president of In addition to serving in the role of develop-

marketing, public relations and community

The proportions in mixed-use are changing,

ment lead or partner, MURAL offers a suite

relations and Melanie Ramos as vice presi-

she notes.

of third-party services, including property

dent of property management. Tan’s 13 years

management, asset management and

of real estate development and advisory

leasing advisory.

experience include managing mixed-use

“Historically, I’ve done mixed-use that primarily included retail and residential, but

redevelopment in Cedar’s Mid-Atlantic re-

with office, hotel and other things,” she said.

Launched earlier this year, the firm is working

gion. Rodriguez has developed and imple-

“As MURAL, we primarily mean ground-floor

as a consultant to St. Louis Development

mented strategic marketing initiatives and

retail with mixed-income residential above.

Corp. to assist with the execution of its Eco-

placemaking for development and operat-

That being said, that can morph into what

nomic Justice Action Plan — a framework

ing mixed-use properties throughout the

into what is really needed in that market. That

for launching equitable and inclusive devel-

Mid-Atlantic and Northeast for companies

could include office space, community space

opment opportunities in the City of St. Louis

such as Federal and The Howard Hughes

[and] even hotels in some instances.”

by addressing historical barriers, economic

Corporation. Ramos’ experience with com-

inequities and closing the racial wealth gap.

panies such as Federal, Bozzuto and Cedar

A Continually Evolving Concept

includes responsibility for 21 properties

As office use has changed during the pan-

Cedar, which is in the process of selling the

located on the Eastern Seaboard equating

demic, the idea of mixed-use is evolving, she

bulk of its portfolio and merging with Wheel-

to 2.8 million square feet of retail space.

acknowledged. Because some companies

er, has retained MURAL as a consultant to as-

think they’ll need less space, and others

sist with the first phase of Northeast Heights,

“We want to invest in underserved areas. We

are exploring sharing space, the amount

which involves the construction, develop-

want to invest in a minority-owned company,

a company might need is still to be deter-

ment and management of a 258,000-square-

but the criteria are the same as a suburban,

mined. Flexibility might be the answer, and

foot office building leased to the Department

high-end company,” she said.

“We would not build spec office, for certain.”

of General Services with ground-floor retail in Washington D.C. Additionally, MURAL is

For now, MURAL will retain its focus on the

Working closely with elected officials, com-

working on behalf of Cedar to advance the

Mid-Atlantic and East Coast.

munity stakeholders and capital part-

planned redevelopment of two existing

ners, MURAL sources financing through

Cedar shopping centers, collectively called

“Honestly, we do have a national scope.

public incentives programs, helping to

Northeast Heights.

Currently the deals we’re looking at are in

unlock intrinsic value in its communities. As

the Mid-Atlantic and Midwest. Those are the

one of the few African American women with

“We’re pleased to be engaged in actual

deals that come to us, but we are open to

C-suite experience at publicly traded com-

development deals,” Zeigler reported, and

working in all areas of the country,” Zeigler

mercial real estate companies, she notes that

are in the contract negotiation phase. The

said. “It’s a ma$er of going through the pro-

even with greater commitments to diversity,

projects are being funded on a deal-by-deal

cess, underwriting the deals and making sure

it remains a challenge to persuade investors

basing, with joint ventures and institutional

the demographics are what we’re looking

that they can make a profit on an emerging

and other capital.

to do.”

Photo courtesy of MURAL

AUGUST 2022 | MANN REPORT 59

FEATURES

The Evolution, Impact and Potential of Virtual Tours of Retail Space

Nathaniel Mallon Nathaniel Mallon is co-founder at Verada, a recently launched retail listing service and brokerage.

By Nathaniel Mallon

advanced method of achieving this was to provide tenants with a video “walkthrough” of a space. Today, the virtual tour is rapidly becoming the new standard.

Born of Convenience, Spurred by Necessity This new standard was largely considered to be more of a convenience than a necessity until recent years. For prospective tenants of spaces local to them, the ability to view a location before seeing it in person greatly cut down on time spent se$ing up appointments, aligning schedules, traveling to and from locations and potentially moving at the slower pace of a group tour. However, following the COVID-19 pandemic’s outbreak in 2020, it

T

quickly became a necessity for brokers to be he goal of showing prospective

had been the go-to method of achieving this for

able to showcase their properties remotely

tenants a space before they undergo

quite some time — with the Internet allowing

and for tenants to experience prospective

an in-person visit has played a role in

those photos to be accessed around the world

spaces in a safe way. This combination of

the real estate industry for decades.

— technology has remained at the forefront of

convenience and necessity is a significant

While simply taking a series of photographs

innovating this process. Until recently, the most

contributor to what brought the virtual tour to

60 MANN REPORT | AUGUST 2022

MR_August 2022_Features.indd 54-55

COMMERCIAL

fruition so quickly.

At the most basic level, still photographs

of HVAC devices, entrances and windows

and slideshows are generally useful for un-

made it simpler to address areas that may

The accessibility that virtual tours offers has

derstanding the layout of a space and what

need renovation without having to personally

been felt across every sector of the real es-

it may look like from the perspective the

perform inspections.

tate industry. By using 360-degree cameras

photo was taken. While video walkthroughs

to visually document every inch of a space,

help to gain a better understanding of how

These benefits proved useful for the current

modern technology can stitch these images

large a space is and how easily a person

post-pandemic era as well. For retail own-

together to create a virtual recreation of en-

can navigate it, this method is essentially an

ers who knew that they would be opening

tire buildings if needed. These recreations

“on rails” experience that lacks the freedom

a storefront in the coming six months, for

can be navigated at will through desktop

for viewers to further investigate an area or

example, the virtual tour enabled those in-

computers and tablets, making it significant-

section of a space that might catch their eye.

dividuals to make decisions well ahead of

ly easier to gauge the amount of available

Additionally, videos may sometimes require

time. This was of further use to prospective

space without relying on dimensions or raw

plugins, apps or specific browsers to view

retail owners who knew that they would

photographs. Furthermore, these tours are

them, preventing them from being as acces-

be moving to a new location in the coming

available 24/7 and do not require any addi-

sible as the virtual tour.

months; the availability of the virtual tour all

tional so"ware, meaning that these tours can

but eliminated the need to make numerous

reach an incredibly broad range of prospec-

Improving on Existing Methods

trips to the new location until absolutely nec-

tive tenants around the globe.

All of these points notwithstanding, the retail

essary, streamlining the leasing process and

sector was making do with photos and video

saving money and time for both tenants and

Unique Benefits for Retail

walkthroughs up until 2020. With in-person

brokers. Further benefits to brokers included

While the benefits of virtual tours are

visits still the truest way for prospective

the accompanying increases in sales and the

far-reaching, the retail industry stands to gain

tenants to accurately gauge a space, these

ability to easily email their “tours” to others

particularly unique benefits. This is due in

methods provided a way to assess a space

without needing to physically travel to per-

part to the unique needs of the retail sector

to decide whether it would be worth visiting.

form tours unless necessary.

itself; while the residential and office sectors

However, the onset of the pandemic meant

place a significant emphasis on creating

that these in-person visits were often no

The virtual tour is here to stay, and for good

spaces for individuals to occupy for several

longer possible. Even for those in the posi-

reason. It is the logical next step in how

hours at a time, retail spaces place a height-

tion to open an in-person business during

spaces are showcased, providing the ben-

ened emphasis on facilitating foot traffic, cre-

the ensuing two years, it became increas-

efits of both still photos and videos with an

ating open spaces for vendors to showcase

ingly difficult to determine whether a space

increased accessibility and freedom that to-

their products, ensuring that storefronts are

would adhere to COVID-19 regulations with-

day’s prospective tenants demand. For retail

inviting to passersby and several other fac-

out visiting them in person. Through virtual

brokers, virtual tours are an invaluable asset

tors that are generally not applicable across

tours, retailers can now more accurately

in widening their audience and providing

other classes. Further, the retail industry was

assess the spatial dimensions of a space,

be$er service. For tenants, it is the next best

faced with particularly difficult challenges

including how it would look from the outside

method of not only viewing, but experiencing

following the pandemic due to the health

looking in and vice versa, without needing

a property. While the future may hold further

risks associated with many people passing

to rely on someone else digitally walking

touring innovations in the form of emerging

through any given space per day.

them through. Furthermore, the freedom to

tech such as the metaverse, today’s success-

inspect and even measure certain aspects

ful retail brokers and owners have embraced

of a space, such as kitchens, the locations

the virtual tour.

Virtual tours address many of these issues.

AUGUST 2022 | MANN REPORT 61

7/26/22 8:45 PM

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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.

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FEATURES

Tax Issues in the Sale of Appreciated Land

By Daniel E. Smith, CPA

I

Daniel E. Smith, CPA, Marcum LLP

nvestors in land must give careful con-

long-term capital gains rates apply to the

4. The extent of subdividing, developing

sideration to their exit strategies from the

transaction. However, if land is held for

and improving the land that was done to

time of acquisition. An investor’s goal in

sale to customers in the ordinary course of

increase sales.

any investment is that it will appreciate

business, the investor may be considered

over time. The length of time and the manner

a dealer in real estate. The land would be

in which the investment is held affects how

considered inventory, and the sale would be

the appreciation of the investment is taxed

taxed as ordinary income rather than as a

upon disposal of the asset.

long-term capital gain.

In general, gains on the disposal of most

Whether land held by a taxpayer is a capital

assets held in excess of one year are taxed at

asset turns on whether it is held primarily

long-term capital gains rates. Federal long-

for sale to customers. When there are both

term capital gains rates range from 0% to

business and investment motives for holding

20%, depending upon an investor’s taxable

a particular parcel of land, the taxpayer’s

income in the year of disposal. Investors

principal motivation for holding the property

The distinguishing factor between capital

with high levels of investment income could

will determine whether it is a “capital asset”

gain treatment and ordinary income treat-

also be subject to the 3.8% net investment

or held “primarily for sale to customers.”

ment is the investor’s intent for holding the

income tax. Assets that are held for less

Several court cases give investors seven

land. An investor who holds a parcel of real

than one year are taxed as short-term capital

factors that should be considered in making

estate primarily for sale to customers during

gains, which are taxed at ordinary income

the determination:

the investor’s trade or business is taxed on

5. Use of a business office and advertising for sale of the land.

6. Character and degree of supervision and control that the investor exercised over any

depending upon the investor’s taxable in-

the sale of the land.

1. The nature and purposes of the acquisition

investor who holds a parcel of real estate for

of the land and duration of the ownership.

speculation or investment does not hold the property primarily for sale to customers and

Short-term capital gains could also be subject to the 3.8% net investment income tax

7. Time and effort that the investor devotes to

any gains at ordinary income tax rates. An

tax rates. The maximum rate for individuals in 2022 is 37%.

representative selling the land.

2. The extent and nature of taxpayer’s efforts to sell the land.

so is entitled to capital gain treatment on the sale of the property.

come in the year of disposal.

3. The number, extent, continuity and subWhen land is sold, it is often assumed that

66 MANN REPORT | AUGUST 2022

MR_August 2022_Features.indd 66-67

stantiality of the sales.

Investors with a large gain on the sale of land o#en find themselves trying to piece together

MANAGEMENT

a case after the fact to establish that the property sold was held for investment rather than primarily for sale to customers. Instead of being in that position, an investor who expects to seek favorable capital gain treatment on the sale of a property should approach the land investment with the assumption that they will have the burden of establishing that the property was held for investment or speculation. This is particularly important for investors who own multiple properties because the IRS may argue that one or more are held primarily for sale to customers.

course of business.

provides for separate ownership of property being held for investment (investment

The earlier that an investor documents that

3. Stating investment purpose in governing

company) and property being held “pri-

a parcel of property is being held for invest-

documents: if an investor is a partnership,

marily for sale to customers” (development

ment, and the more consistent the treatment

LLC or corporation, the entity’s governing

company). Prior to the commencement of

of the property as investment property over a

documents should state that the entity’s

development activities that would result in

lengthy period, the greater the likelihood that

sole purpose is investment activities. The

the investment property being converted into

the taxpayer will prevail in obtaining capital

meeting minutes of the entity should also

property held primarily for sale to customers,

gain treatment. Taxpayers who engage in

express this intent.

the investment company sells the property to the development company at fair market

deliberate planning, beginning with acquisition of the property to structure their affairs to

4. Using separate entities: one factor that de-

value. Since the sale occurs prior to the

obtain capital gain treatment are much more

termines a seller’s intent is the frequency

commencement of significant development

likely to succeed.

of sales. To avoid dealer status, it may be

activities, any gain on the sale reflects the

advantageous to hold investment property

appreciation in value over the period that the

Investors can take the following steps to

in a separate legal entity with a different

investment company held the asset — the

structure their investments in land:

ownership structure.

type of appreciation meant to be taxed at capital gains. All sales should be at fair mar-

1. Segregate property in the books and re-

5. Insubstantial nature of real estate activi-

cords: the segregation of books supports

ty: investors who can show that the time

ket value, and should be documented by a

an investor’s intent to hold a piece of prop-

spent in investment activities is insignifi-

erty while also increasing the chances of

cant when compared with the time spent

The structuring of the purchase of and the

capital gain treatment when the investor

in their everyday occupation may be able

holding of land investments can have conse-

sells the investment property.

to achieve investor status.

quences. It is recommended that investors

third party appraisal.

contact a tax professional.

2. Report items as investment expense: de-

A land investor who is uncertain regarding

ductions related to a piece of property,

the future development of one or more of his

Daniel E. Smith is a tax director with Mar-

such as interest expense, should be re-

land holdings may use a capital gain bailout

cum LLP, based in the firm’s Boston office.

ported as investment expenses. Classify-

strategy to allow any appreciation that has

He specializes in tax services for Real Estate

ing these expenses as business expenses

accrued prior to the property becoming held

Investment Trusts (REITs) and real estate

provides an indication that the investor

primarily for sale to customers to be taxed at

pass-through entities. Contact him at daniel.

held the property for sale in the ordinary

favorable capital gains rates. This technique

smith@marcumllp.com.

AUGUST 2022 | MANN REPORT 67

7/26/22 8:47 PM

FEATURES

Market Trends & Best Practices:

Liability Insurance for NYC Condominiums & Cooperatives in 2022

Sean Kent

By Sean Kent, CPCU, senior vice president-insurance, FirstService Financial

T

o describe New York City’s current

high limits and robust coverage at relatively

Reasons for 2022 Underwriting

liability insurance marketplace for

low costs. An RPG is a group formed by an

Market Conditions

condominiums and cooperatives as

underwriter representing an insurance com-

Recently, a few of the remaining umbrella

“challenging” would be an under-

pany or multiple insurance companies, with

RPGs offering excess liability coverage in

statement. For two years, underwriters and

the goal of providing competitive insurance

New York City have announced they will no

insurance professionals specializing in New

terms to a group of insureds. Umbrella pol-

longer accept applications for quotes, are

York City’s multifamily residential sector have

icies serve as protection for associations in

canceling many existing policies and will add

lamented over the difficulties in obtaining

the event of major or catastrophic liability

coverage limitations or exclusions that have

competitive underwriting terms for general li-

claims stemming from bodily injury or prop-

a significant impact on the overall scope of

ability and umbrella insurance policies. Those

erty damage that exceed the limits of a pri-

coverage. Other umbrella RPGs have exited

difficulties have only worsened to the point

mary general liability policy.

the marketplace, citing poor profitability due to an increase in severe claims with

where many believe that the situation is the worst it’s ever been, especially for umbrella or,

Considering the litigious nature of plaintiff

se"lements in the tens of millions of dollars.

more correctly, excess liability insurance.

attorneys in New York City and unfavorable

Eligibility for programs has also become

laws that present a greater liability expo-

more stringent, and buildings that qualify

As a subsidiary of FirstService Residential —

sure to building owners, access to RPGs has

are seeing significant premium increases for

the largest property management company

been critical for brokers seeking umbrella

umbrella coverage with a reduction on limits

in North America — FirstService Financial fa-

coverage for condos and co-ops.

and coverage. Here are some reasons why:

for more than 8,000 associations annually,

Umbrella premiums were typically a small

1. Large liability claims can take years to

including nearly 500 condos and co-ops in

percentage of a building’s total insurance

develop. The evolution of a bodily injury or

New York City. These properties have his-

premium and, many would argue, far under-

property damage liability claim begins with

torically relied on Risk Purchasing Groups

priced. That trend is ending, as options are

coverage under the general liability policy.

(RPGs) to procure umbrella coverage with

now scarce and premiums continue to rise.

Most general liability policies have a liability

cilitates insurance placements and renewals

68 MANN REPORT | AUGUST 2022

MANAGEMENT

limit of $1 million per occurrence. In New York, average jury verdicts have ballooned, forcing insurance carriers to pay much larger se"lements than the initial prediction. Many claims exceed the $1 million per occurrence liability limit for primary general liability policies, with final claim amounts in the tens of millions of dollars.

2. Labor Law 240. New York State’s “Scaffolding Law” imposes strict liability on building owners and property managers should a project-related injury occur to a contractor or subcontractor employee at a building.

If a contractor’s worker is injured while working at a building, there may be no need for that employee to prove that there was any negligence on the part of the building owner, nor is any negligence of the injured party relevant. The element of strict liability in these cases makes it almost certain that a building owner will be named in a suit, which requires their insurance carriers to defend such

a"ach construction exclusions.

review of the contractor’s insurance policies to ensure coverage is adequate and there

claims. Between legal fees and the potential for large judgments, the likelihood of these

Adequate Risk Transfer

are no construction-related exclusions that

claims and the costs associated has liability

It is crucial to review all contracts and audit

would prevent their policies from responding

insurance underwriters running for the hills.

the contractor’s insurance policies beyond

to a claim. A building owner’s insurance carri-

certificates of insurance prior to awarding

er might require a review of those policies as

Most of the underwriters still willing to offer

bids, and certainly before any project begins.

well. It is typically best to be proactive by ob-

liability coverage now make it standard prac-

These risk transfer practices can be onerous

taining the complete policies and performing

tice to attach exclusions for claims arising

and require involvement from profession-

audits ahead of time.

from construction work. This protects the

als with the expertise to review contractual

insurance carriers from astronomical payouts

language and insurance policies for poten-

None of what’s been presented paints a pret-

and also creates an intersection of exposure

tial pitfalls. Owners should enlist building

ty picture of New York City’s liability insurance

and liability coverage between the contrac-

counsel to review contractual language for

marketplace. However, property managers,

tors, subcontractors and building owners.

agreements between owners and contrac-

building owners, insurance brokers, carriers

Many underwriters are requiring a review of

tors bidding on a project. Indemnification

and the construction industry are all taking

the insurance policies for each contractor

and holding harmless language in the favor

notice. While insurance premiums have been

performing work at a building to validate they

of building owners is critical.

rising and maintaining competitive coverage is a challenge, stakeholders are working in

are carrying adequate liability coverage. If the contractor’s coverage does not meet their

In addition, the owner’s broker or third-party

collaboration to effectively transfer risk and

standards, underwriters are more inclined to

insurance consultants should assist in the

bolster protection against major claims.

AUGUST 2022 | MANN REPORT 69

FEATURES

Top of the World: Central Park Tower Unveils Highest Private Club Ever Central Park sits 1,000 feet below the private club. (Photo by Evan Joseph)

P

eople living literally at the top of

“Central Park Tower’s 100th Floor is unlike

complemented by five-star service. Spanning

the city deserve a perk or two, and

anything else in the world and it’s only fi"ing

more than 8,300 square feet, the 100th floor

the builders of Central Park Tower,

that it is located in New York City’s preemi-

of the club was designed by Rottet Studio,

the tallest residential building in

nent skyscraper,” said Gary Barne", founder

which also curated the building’s residen-

the world, have provided just that with the

and chairman of Extell Development Compa-

tial interiors. The space features a grand

100th Floor, a private club for the residents of

ny, the developer of Central Park Tower. “In

ballroom with seating for more than 120

the building’s 179 luxury condominiums.

addition to the unmatched residences, which

people, a private bar and restaurant with

offer endless views, exquisite architecture

seasonal menus from Michelin star chefs

Rising more than 1,000 feet above Billion-

and gracious layouts, Central Park Club is

including Alfred Portale, Laurent Tourondel

aires’ Row on Central Park South, Central

a defining element that further elevates our

and Gabriel Kreuther, and a wine and cigar

Park Club includes 50,000 square feet of

residents’ living experience.”

lounge — all with 360-degree views of Central Park, the Hudson and East Rivers and the

white-glove services and amenities spread across three floors.

70 MANN REPORT | AUGUST 2022 MR_August 2022_Features.indd 10-11

Each location provides a unique experience

Manha"an skyline.

RESIDENTIAL

In addition, in a first-ever collaboration with a

at the opportunity to collaborate with Extell

ervations for Nordstrom’s three full-service

luxury skyscraper, lifestyle advisor and author

and Gary Barne" on this one-of-a-kind space

restaurants, as well as immediate access to

Colin Cowie has created a bespoke living

and experience.”

the retailer’s two bars and café. Resident-

experience as the building’s exclusive life-

only services also include in-residence and

style curator and event planner. Colin Cowie

Additional amenities within Central Park Club

in-club dining experiences, beauty and spa

Lifestyle serves as Central Park Tower’s food

include the 14th floor Terrace level, which

services, clinical skin care, personal stylists

and beverage operator and provides service

offers a 60-foot outdoor swimming pool, sun

for wardrobes in the home and a variety of

throughout Central Park Club. The club will

deck and cabanas, private garden, gas grill

in-store perks, including advance access to

feature a precisely formulated ambiance that

and bar, fireplace and screening wall. Also

new brands and collections, and priority ac-

changes throughout the day to ensure 24/7

located on this floor is a residents’ lounge with

cess to invite-only style events.

comfort and tranquility, including lights that

billiards, private screening and performance

will adapt with the setting sun, music that

space, game room and conference room and

Extell co-developed Central Park Tower

will grow in tempo from morning to night and

business center. The 16th floor amenities

with SMI USA (SMI), the U.S. subsidiary of

custom seasonal scents.

include a 63-foot indoor saltwater swimming

Shanghai Municipal Investment, a leading

pool and spa, fitness and wellness center,

infrastructural investment company respon-

“We have been in the business of creating

squash/half basketball court, private treat-

sible for the esteemed Shanghai Tower, the

bespoke luxury experiences for 35 years, but

ment room and men and women locker rooms

second tallest building in the world.

Central Park Tower is our first foray partner-

with showers, steam rooms and saunas.

ing with a luxury residential building,” Cowie

C e n t r a l Pa r k To w e r f e a t u r e s t w o - t o

said. “Our mission as a company is about

At the base of Central Park Tower is Nord-

eight-bedroom residences that begin on the

creating experiences that deliver ‘Life At

strom’s first full-line department store in New

32nd floor of the building and range in size

The Top.’ There is literally and figuratively no

York City, which opened in 2019. Residents

from 1,435 square feet to over 17,500 square

be"er building in the world to showcase that

of Central Park Tower receive special access

feet. Pricing for current availability at Central

than at Central Park Tower. We are thrilled

to flagship store, including guaranteed res-

Park Tower starts at $6.5 million.

Below photo by Williams New York

Central Park Tower is the tallest residential building in New York City.

AUGUST 2022 | MANN REPORT 71 7/31/22 12:24 PM

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FEATURES

Six Tips for Growing a Successful Proptech Company Jindou Lee co-founder of HappyCo

By Jindou Lee

W

hen I started out in this industry

estate folks are long and rolling out new

Customers in the real estate industry are

a decade ago, proptech was

technology takes time. Once the product has

seeking true, long-term partners.

not even a word, much less

been purchased, company-wide adoption of

an industry sector. Much has

technology takes even longer. So, achieving

Instead of using catchphrases like “we are dis-

changed since then and the road to building

any meaningful scale in proptech will likely

rupting the industry,” we took inspiration from

HappyCo has certainly been a winding one.

take much longer than initially planned. If

the Iron Man suit analogy — we create tools

you’re motivated by making a quick buck,

to help people achieve their full potential. We

There is no magic formula when it comes to

you’ll end up disappointed. It’s a grind that

built proptech software that makes our cus-

creating a successful proptech company,

requires patience and relentless commitment

tomers better on-site operators, and its ease

and no substitute for hard work, persever-

to get through these long cycles.

of use makes their jobs easier.

same time, it’s important to remain flexible

Plan for a multi-year investment of your time,

This approach was a means to our para-

and open to adjusting your strategy along

energy, focus and money. Then, create a

mount objective to create happier commu-

the way. Financing realities, rapid advances

long-term plan with achievable short-term

nities. We believe happier communities start

in technology and inevitable bumps along

goals. Recognize that you may be in “start-up

with happier on-site teams. The best way

the journey can make transforming an idea

mode” for several years, so it’s important to

to create happier on-site teams is to listen,

into a growing business an arduous process.

surround yourself with a founding team of in-

understand their operational challenges

novative, nimble and resilient individuals who

and then deliver solutions that truly solve

Perhaps most importantly, the greatest idea

will help you reach your growth milestones

their problems.

won’t work unless it finds a customer willing

and are in it for the long haul.

ance and remaining true to your vision. At the

Find Aligned Capital

to deploy it to fulfill a business need. My team and I have learned a lot, and a few areas

Become a True Partner

When we began 10 years ago, no one was in-

stand out as lessons any early-stage busi-

Anyone starting a company, especially a

vesting in this category; today, every investor

ness should consider.

solutions-based one, must listen to their

is suddenly an expert in proptech. However,

customers and work alongside them as they

selling in this industry takes a lot of time.

Play the Long Game

build — then iterate — the product or solu-

Truly building scale requires patient capital

Unlike other industries, sales cycles to real

tion. This is especially the case in real estate.

partners who understand the market and are

76 MANN REPORT | AUGUST 2022

MR_August 2022_Features.indd 64-65

TECHNOLOGY

interested in using it. We got an overwhelmingly positive response and customers willing to pay even before we had built any real so$ware. We knew we had landed on something special because it was a real pain point that our customers wanted us to solve.

Customers Buy Trust Do what you say and say what you do. Steve Winn, founder of RealPage and a well-known executive in the multifamily industry, once said to me, “We are in the business of selling trust … once a customer is happy with your one solution, they will want and demand of you to solve more problems for them.”

comfortable with the time it will take to get

er base will be and who really has the need

To earn trust initially, it is important to only

the company to scale.

for the solution you’re working to provide is

sell what you can deliver. Don’t over promise

an important step. Once you have a strong

and under deliver. As your company scales,

Remember, playing the long game is a re-

grasp of these elements, suspend that

you’ll likely reach multiple breakpoints with

quirement in this field. That applies equally

thought and start from scratch to re-imagine

your team’s capacity to deliver, so get out

to the capital partners who will invest with

how to solve their problem.

ahead of this as much as possible. Be honest with your customers. Be accessible to your

you along the way. Really ge!ing to know the mindset, personality and primary drivers of

Start with Solving a Small Problem

customers. I have always strived to interact

your investor(s) should be an important part

Don’t try to boil the ocean by setting out to

with our clients through regular dialogue and

of your due diligence efforts.

create an end-to-end platform. Instead, focus

in-person meetings.

on doing one thing really well. I did not set out Really Understand the Ecosystem

to build a proptech firm initially; I had started

Once you’ve earned your customers’ trust,

Coming from a different industry — the tech/

investing in single-family homes as rental

they are far more likely to buy your next

gaming world — I realized right away that real

properties and realized that the resident in-

product. And then start the cycle over again.

estate is very, very complex. There are many

spection process was clunky and inefficient.

And again.

layers, and a surface-level understanding

There was no software at the time to help

is simply not enough. If you want to start a

streamline the move-in/move-out inspection

Jindou Lee is the CEO and co-founder of Hap-

proptech business, first do the research. In

workflow, so I started to research the dispa-

pyCo, a software company that builds mo-

the case of HappyCo, I had to gain an under-

rate processes that were being used (almost

bile and cloud solutions to enable real-time

standing of the multiple stakeholders of real

entirely a pen-and-paper model). Only then

property operations. Prior to his current role,

estate and then achieve a deeper apprecia-

could we begin to reimagine how a technolo-

Lee founded and exited two previous tech

tion of what each of them wanted and need-

gy solution might improve the process.

companies. He graduated from the University of South Australia with a Bachelor of Visual

ed. For example, I spent months shadowing maintenance technicians around properties

To further validate the idea, my co-founder

Communications (Design). He also worked

to see what their daily routine was like.

and I designed a mockup of the inspection

at Midway Games, leadingthe User Interface

app and then cold-called 20 property man-

team to work on classic titles such as “Mortal

agement companies to see if they would be

Kombat, “Gauntlet” and Dukes of Hazzard”.

Creating a clear picture of who your custom-

AUGUST 2022 | MANN REPORT 77

7/31/22 12:25 PM

FEATURES

AI-Powered Alternative Data Drives Extreme Real Estate Market Research Disruption

By Merilee Kern, MBA

N

Merilee Kern Forbes Business Council, Newsweek Expert Forum and Rolling Stone Culture Council member Merilee Kern, MBA is a senior-level brand, leadership and communications analyst and strategist. As Founder and Executive Editor of The Luxe List, she works with companies, agencies, C-suite thought leaders and subject ma!er experts worldwide across a wide array of B2B and B2C companies. Kern is also host of both the “Savvy Ventures” business TV show that airs nationally on FOX Business TV and Bloomberg TV and the “Savvy Living” lifestyle TV show airing in top U.S. markets.

umerous indicators make clear that the next five years will usher in extreme transformation for a multitude of commercial and res-

idential real estate sectors, banks and lenders as well as the global economy at large.

This begs the question: what is driving such significant and rapid change? This big question just might be answered in two words: alternative data. Real estate and banking-related companies that are slow to incorporate alternative data into their research and development, marketing, investment, risk analysis and other key processes expose themselves

The last decade has seen a wealth of new data.

to extreme opportunity loss at best and operational peril at worst.

ment firms seeking market outperformance,

tions, press releases, management presenta-

known as “alpha.”

tions and other well-entrenched mainstream sources, today’s breed of alternative data

For example, active investment management firms — including hedge funds and even

As an ever-evolving methodology, the last

sets are being compiled from wide rang-

private equity funds — risk being outmaneu-

decade has ushered in a myriad of new

ing and disparate sources. These include

vered by competitors leveraging alternative

types and sources of alternative data. Unlike

financial transactions, satellites, sensors

data in their securities valuation and trading

traditional data made available by financial

and IoT-enabled devices, e-commerce por-

signal process. Alternative data has emerged

exchanges and indexes, SEC filings, financial

tals, public records, mobile devices, social

as an essential tool for investment manage-

statements, corporate filings, analyst predic-

media, web traffic and more. However, web

78 MANN REPORT | AUGUST 2022

MR_August 2022_Features.indd 60-61

TECHNOLOGY

scraping and financial transactions are, by far, the most common methods of alternative data procurement.

The economic upside of alternative data assets is so lucrative that the category is experiencing a veritable gold rush mentality that is driving extreme growth worldwide across practically every industry sector. The global alternative data market size is expected to reach $143.31 billion by 2030 — a staggering increase from $2.7 billion in 2021 — with the category forecasted to expand at a compound annual growth rate (CAGR) of 54.4% from 2022 to 2030, according to Grand View Research.

For example, investment firms are actively Digital data requires agility.

expanding their informational advantage by incorporating alternative data into their invest-

services firm AlphaMille.

and data science are applied to examining alternative data sets. The offerings produce

ment and risk processes. An EY Global Alternative Fund survey found that 70% of hedge

According to the Alternative Data Global Mar-

a crucial differentiator generating alpha for

fund managers and 56% of private equity funds

ket Report 2022, the main categories of alter-

buy-side entities, like hedge funds, mutual

currently use, or plan on using, alternative data

native data — the non-traditional type from

funds, private equity funds, pension funds,

to support their investment process.

conventional sources that can serve as an

unit trusts and life insurance companies, ac-

indicator of future performance — are credit

cording to Valentine.

Beyond banking and financial services and

and debit card transactions, email receipts,

insurance, other alternative data early adop-

geo-location (foot traffic) records, mobile

The benefits of employing alternative data

ters include online retailers, SaaS purveyors

application usage, satellite and weather data,

are seemingly innumerable. “Among the

and hospitality. These and other such indus-

social and sentiment data, web-scraped data

most important is its ability to derive propri-

tries are tapping the power of this alternative

and web traffic.

etary real-time signals providing alternative viewpoints, unforeseen insights or perhaps

intel for an array of projection activities, such as predictive and algorithmic modeling, de-

“The driver behind this phenomenon is two-

both,” noted Valentine. “The ability to go be-

mand and trend forecasting, lead generation

fold: investors’ appetite for using the data

yond standard financial data to understand

and competitive intelligence.

and the providers’ willingness to sell credit

company performance, market dynamics or

card transaction data,” Valentine said. “More-

consumer behavior is extraordinarily valuable

“There are numerous categories of alterna-

over, data providers have been enhancing

for companies and investors who desire to

tive data, and the businesses who fare best

their capabilities of sorting credit card trans-

plan and execute in a calculated, enlightened

are those with the capability to mine insights

action data by gender, age, seller, geography

and intentional way with mitigated risk.”

from the collected data and cross reference

and other metrics.”

Even amid the extreme upside, a number of

and combine it with other types of data, thus enabling investors to identify profitable

These types of drill down insights can make

challenges plague processes for incorporat-

trends and strategic opportunities,” said Julia

it much easier to identify and evaluate oppor-

ing alternative data into the investment and

Valentine, managing partner at professional

tunities, especially when advanced analytics

risk models. “As compared to the traditional

AUGUST 2022 | MANN REPORT 79

7/31/22 12:28 PM

FEATURES

of information,” noted Christian Robertson, CEO of Datasynthesis. “It means tracking the data lifecycle from its source — be it real-time or historical, structured or unstructured — through a strict, rules-based validation process generating actionable data used to feed the various business intelligence tools used in decision-making. However, to distill meaning from so much information, one must adopt an active data-mastering approach, which can only be achieved by leveraging the latest open-source technologies with capabilities that far exceed anything possible with existing legacy systems.”

Analyzing alternative data can be complex.

financial data collection, alternative data

an alternative data platform involves multiple

assets are known to be unstructured, lack

steps: design, plan, source data, integrate,

specific pa!erns and given its high collection

transform, use ML, deploy, support and

frequency, require significant storage and

evaluate. A shorter, five-step implementation

processing resources,” said Vita Koreneva,

model is also available for entities that are

AlphaMille managing partner.

ready for a fast route to value creation.

“Collecting and analyzing alternative data

With such specialized tools and skillsets

sets certainly requires navigating any number

involved with mining and distilling alt data,

of difficulties or outright obstacles,” Valentine

many understandably outsource the function.

warned. “This includes the procurement of

“A few key considerations for a prospective

expert personnel and cu!ing-edge technol-

professional services partner involve their

ogies like analytics, fluid data architecture

ability to quickly integrate new solutions with

and data science platforms, as well as testing

existing infrastructure. The cost of data feeds

tools to actually leverage meaningful insights

and proving what they deem to be optimal,

gleaned from the data. For example, AI tools

uncorrelated data sets, genuinely add quan-

such as ML and Natural Language Process-

tifiable value rather than noise,” she said.

ing (NLP) are used for analyzing alternative data, unlocking its insights and value and

Valentine further recommended that they

boosting the growth of these assets. ESG

should also demonstrate an aptitude for key

(Environmental, Social, Governance) data

requirements of an alternative data platform,

is an key example of alternative data where

such as the rapid and efficient onboarding

multiple providers in the public markets are

of data sources; combining structured,

supplemented with the use of multi-modal AI

semi-structured and unstructured data sets,

to collect data used by private markets that is

and data preparation and normalization.

unavailable through existing data providers.”

“Data mastering is fundamental to gleaning According to Valentine, starting or enhancing

insight from this seemingly limitless universe

Preconditions and complexities aside, AlphaMille Chief Revenue Officer Rick Lutz is keeping an optimistic eye on the big picture.

“Alternative data hasn’t nearly reached critical mass as of yet and there is tremendous growth ahead in this space,” he said. “The big winners will be those that onboard the right ‘kind’ of caliber of experts who can adeptly navigate this highly specialized and ever-changing field. Done right, the financial upside is stratospheric.”

Digital transformation demands agility. Having the ability to adeptly procure and process alternative data provides a tremendous advantage, especially for those needing to pivot in the short term: to empower an organization to expand quickly and cost-effectively, to save costs by realizing it is more profitable to outsource non-critical functions to expert providers or to utilize cu!ing-edge cloud, cybersecurity and data science tools to increase productivity. The profit promoting outcomes are seemingly endless.

No ma!er the industry in which you operate, now is the time to design a sound and scalable alternative data plan to ensure that your company can keep pace in the 21st century Digital Age. Photos courtesy of Merilee Kern

80 MANN REPORT | AUGUST 2022

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ARTICLES

Condo-Co-op Helpline:

Zoning, NIMBY and YIMBY

By Carol A. Sigmond, partner, Greenspoon Marder LLP

Zoning in the United States began in New York City and later spread to all parts of the country.

Initially, zoning was an effort to preserve light and air for city residents, but as time passed the concept of zoning was used (even abused) to promote less-desirable policies such as burdening poor and middle-class neighborhoods with what were perceived to be undesirable structures such as public housing, affordable housing, schools, sewage treatment plants, waste facilities and other necessary infrastructure. These efforts to block certain types of development in specific neighborhoods came to be known as NIMBY or NIMBYISM — “not in my back yard.”

Now, 40-plus years later, a new attitude in major metropolitan areas favors distributing small affordable housing developments in all neighborhoods. This movement is going by the acronym YIMBY, which stands for “yes, in my back yard.” This movement has the potential to increase affordable housing and avoid creating pockets of poverty and violence while diversifying communities without impacting property values or the tax base.

Zoning and city planning began in the 1880s and 1890s as taller and bigger buildings began to sprout in Manhattan. The first effort to address the issues was the Tenement House Act of 1901. After the 1915 opening of the Equitable Building at 120 Broadway, with its seven-acre shadow over lower Manhattan, New York City responded with the Zoning Resolution of 1916.

Gradually, zoning became common in urban and suburban areas.

Early zoning efforts sought to keep factories and other industrial uses, as well as dangerous traffic such as rail lines, away from residential areas. Gradually, with the increasing density

84 MANN REPORT | AUGUST 2022

came more “creative” uses of zoning. One such use was to effectively segregate people by class. Race was a factor in some of these decisions.

Over time, this use of the zoning laws created housing segregation in major urban areas.

The housing segregation policy of creating large developments for low-income residents resulted in densely populated pockets of poverty overlaid by years of neglect in the maintenance of the development all of which was eventually wrapped in hopelessness, illegal drugs and other crime.

Cabrini-Green, a notorious Chicago North Side housing project, was an example of how zoning and site selection had gone awry. Eventually, most of the Cabrini-Green buildings (and two other similar housing developments in west and south Chicago) were demolished, except for the two-story row houses. Today, a less densely populated mixed-use development that includes low, moderate and some market-rate housing is being developed at the former Cabrini-Green location.

Over the years, many public buildings and projects were fought by local neighborhoods.

Some of these neighborhood disputes, such as some on the Upper East Side in New York City, have been in opposition to the over-development of the York Avenue corridor by the hospitals, often on the grounds that the hospital-affiliated research laboratories were discharging heavy metals and other carcinogens into the air. Others have been for less logical reasons, such as objecting to homeless shelters. Housing projects have been a frequent target of protestors based on the (false) perception that low- and moderate-income housing is associated with crime and

loss of property values.

In certain urban areas, such as Minneapolis, Seattle and Portland, Oregon, middle- and upper-income residents are taking a second look at affordable and low-income housing. These developments, when small, properly maintained and part of a larger mixed-use community (that usually includes good public schools with a diverse population of students), are not causing crime or posing other dangers. This trend is appearing in New York City as well.

Small buildings of 10 or fewer families, either affordable or low income, are being disbursed throughout neighborhoods without issue. This trend should not create any adverse issues for neighbors and hopefully will create more diverse communities over time. For cooperative and condominium buildings, these small mixed-use developments should not adversely impact property values or quality of life.

As with all development in New York City, these projects must comply with the New York City Building Code in all respects. Developers of these projects must protect, insure and indemnify neighbors for any physical damage to the neighboring properties and any temporary loss of use. No permanent loss of use or property belonging to neighboring property is permitted under the New York City Building Code.

This column presents a general discussion.

This column does not provide legal advice.

Consult your attorney for specific legal advice.

Carol A. Sigmond Greenspoon Marder LLP 590 Madison Ave., Suite 1800 New York, NY 10022 carol.sigmond@gmlaw.com (212)524-5074

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ARTICLES

Success Through a Hard Insurance Market for Real Estate Businesses

By Frank DeLucia, senior vice president, Hub International Northeast

As the real estate industry continues its journey to recovery from the wake of the pandemic, a focus on organizational resilience has never been more important. The continuing effects of COVID-19 have dominated over the last several years, and these challenges have also had a major impact on insurance. Add catastrophic losses from hurricanes, hailstorms and wildfires to the mix and you’ve got a pile of costly claims.

While these catastrophes are extreme, they are no longer rare. Real estate owners and operators should expect more of the same in 2022, affecting all sectors (especially residential).

For many real estate insurance carriers, these losses have far surpassed expected claim costs, leading to what the insurance industry refers to as a hard market.

the upswing in a market cycle when insurance premium rates are escalating, and insurers are disinclined to negotiate terms. Underwriting standards tighten and insurers closely monitor insurance rates and manage coverage capacity. Through the remainder of 2022 and beyond, insurance buyers will continue to feel the effects of the hard market in the hospitality industry.

Becoming more resilient through steps taken to mitigate risks, especially against new challenges and exposures that have arisen, will greatly influence insurance premiums and coverage availability throughout 2022 and beyond.

On the property insurance side, water damage and catastrophic weather events have been costly for insurers while on the liability side, increasing claims for slips and falls have led to expensive lawsuits. Some companies have stopped offering hospitality insurance, exiting the space, which results in fewer players in the market. The economic fallout from the global pandemic includes lower interest rates, pushing premiums higher yet again as insurers can’t rely on investment behind the scenes to remain profitable. Additionally, concern about COVID-19-related liability claims is tightening the market even further.

The current state of the insurance market requires businesses to present themselves in the best possible light to enable their brokers to present the best-case scenario to insurers.

This means that, in partnership with your insurance advisor, you must demonstrate to the marketplace why they should want your business (i.e., good loss history and corrective measures taken to prevent similar losses from reoccurring, proactive risk management/ transfer practices, proper safety protocols and property upgrades).

In layman’s terms, a “hard insurance market” is

Underwriting losses, poor industry results, decline in investment income due to lower interest rates, an increase in natural disaster claims, social factors such as “social inflation” of claims and “once-in-a-century” events such as COVID-19, are all factors that directly contribute to the state of the market.

What Businesses Can Do Within such an environment, underwriters carefully review submissions, questioning and reviewing every detail of information on the application. Together with your insurance bro-

ker, work toward a professional submission that highlights the strengths of your risk management efforts.

Completing an insurance review and gathering information takes time. Here is what you can do to improve your situation in this hard market: • Be proactive: Providing your updated information to your broker early in the renewal process will allow you to obtain your renewal terms sooner and give you time to address options with your broker.

• Be complete: Insurance underwriters have limited time to go back and forth with your broker requesting missing information. Assist by ensuring your file is complete.

• Be current: Improve maintenance, implement risk services recommendations and undergo an operational evaluation. Underwriters favor and value clients that take care of their business.

N R

These are just some of the ways you can get ahead of rising premium costs and navigate the current state of the insurance market.

Now more than ever, it is imperative to work with your insurance advisor to review your coverages and to understand what your P&C policies cover, what they don’t and the best ways to mitigate the individual and unique risks of your properties.

Frank DeLucia Hub International Northeast Woodbury, NY frank.delucia@hubinternational.com (212)338-2395

s lo an

86 MANN REPORT | AUGUST 2022

MNN109 R

New York’s Full Service Real Estate Firm.

Romer Debbas, LLP is a boutique law firm located in midtown Manhattan specializing in the areas of real estate, banking/private banking, general corporate law, real estate and commercial litigation, business/personal immigration, trust and estates and taxation.

The firm represents a wide array of clients including buyers and sellers of residential and commercial real estate, sponsors and developers, prominent lending institutions, landlords and tenants, foreign and domestic investors, cooperative and condominium boards, and small to Fortune 500 businesses.

New York (Main Office) 275 Madison Avenue, Suite 801• New York, NY 10016 Phone (212) 888-3100 • Fax (212) 888-3201 www.romerdebbas.com

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ARTICLES

Leveraging Mixed-use Buildings to Attract Employees Back to the Office

By Tom Pflueger, AIA, senior associate at MBH Architects

An increasing number of companies are unveiling their return-to-office plans to go into action later this spring — and many are requiring a minimum of a few days a week in-person.

With two years of work-from-home experience under the belts of thousands of companies, this transition is no easy feat. While some employees are excited about getting out of the house and collaborating with their colleagues in person, others are having a harder time feeling motivated to resume old ways; they’re used to their new routines and working in the comfort of their homes.

One way that companies are marketing themselves to be more appealing during the return to the office is by establishing their presence in mixed-use buildings that offer a range of amenities and include open and bright, airy spaces. This type of setting offers flexibility throughout the day, while also breaking up the monotony of work by offering resources such as diverse food offerings and shopping that will be more appealing to employees and more effective in satisfying their needs.

Showing How to Return Safely Mixed-use buildings have become increasingly popular in light of the pandemic, as many now include outdoor spaces for staff to collaborate safely. This underscores a deep sense of empathy toward employees, by showcasing how their health and wellness is number one.

Patio spaces, outdoor seating or rooftops with

excellent Wi-Fi access are now plentiful. Being immersed in fresh air — and, in many instances, being surrounded by greenery — showcases a commitment to health and wellness that may not have been seen previously in more traditional office spaces. This aspect is enticing to many, as the benefits of being in nature have been numerous, including decreasing stress. It can also make working in-person seem more accessible for those who are on higher alert in regard to COVID-19 transmission.

Fostering Collaboration Over the past two years, thousands of staff have grown accustomed to Zoom, Slack and other ways of virtually conferencing, though the screen fatigue is ever-present and not to be overlooked. Collaborating in person still proves valuable, especially for training new staff, and mixed-use buildings are able to cater to that need more effectively.

Offering a variety of spaces where employees can talk through solutions, such as a terrace or a food hall, provides efficiency that is often delayed in virtual communication. This access to a range of spaces can also foster a deeper sense of trust among employees, which is a crucial aspect in achieving goals and getting strong results.

Building a Sense of Community A benefit of having an office in a mixed-use building is that it has access to other spaces

beyond the traditional office layout. Outdoor areas, event spaces and restaurants in the building provide the canvas for bonding activities such as coffee tastings or a team dinner.

Creating spaces for more informal conversations to be held further increases a team’s flow and dynamics and is a great way for staff to get to know each other on a more personal level. This is an aspect that is often erased when your only collaboration is through a screen.

Empowering Employees The Great Resignation has made it clear that many employees don’t feel empowered or autonomous at work — they are either demanding change internally or looking for that support elsewhere. Locating an office in a mixed-use building can help employees break up the monotony of the day and guide their own schedules a bit more. It allows employees to hop down to the gym for a quick sweat during the day or go to a cafe to satisfy a caffeine kick.

By providing this type of flexibility, employers can show their teams that even though they’re working in person, it doesn’t mean their autonomy is hindered.

Tom Pflueger MBH Architects 960 Atlantic Ave. Alameda, CA 94501 (510)865-8663

88 MANN REPORT | AUGUST 2022

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ARTICLES

Deb’s Retail Dish and Deals:

Together Again

By Debra Hazel, president of Debra Hazel Communications

As I’m writing this in early July — and undoubtedly as you’re reading this in early August — the ICSC Las Vegas meeting in May seems like a million years ago rather than just a few weeks. But the repercussions of this first large industry gathering in three years continue.

The 20,000 or so people who attended — much lower than in the RECon years, but more than twice the size of the December 2021 Las Vegas meeting that was billed as a reunion — were thrilled to be there and clearly serious about doing business. To be honest, it was probably more productive for the attendees than if the more normal 30,000-plus had been at the Las Vegas Convention Center.

And the mood was buoyant — and refreshingly practical. I only had time to attend one session, on “Building Thriving Cities Beyond the Pandemic,” but was delighted to see an honest discussion of the challenges facing mixed-use projects, and even a frank conversation about how owners/managers are combatting the crime rings that have targeted retail in the last year or so. While Sunday sessions at the Wynn appeared to be comparatively lightly attended, other panels held at the LVCC during deal-making were standing room only, a sign that there’s a real hunger for information on industry changes, and for interaction.

Further encouraging interaction was the fact that we were all lost during the two days of deal-making, even though the conference only filled two halls at the Las Vegas Convention Center. For some reason I (and everyone else

90 MANN REPORT | AUGUST 2022

I met with) could not fathom, ICSC decided to renumber the addresses of the booths, a challenge for us veterans who could easily figure out where J Street and 22nd Avenue were but scrambled to find SXXYY, even with an app. The major companies (JLL, CBRE, Philips Edison) were all in the same place, but finding other, smaller booths led to a lot of lateness.

Even so, meetings and discussions were had, and they painted a portrait of a recovering industry. Timothy Miller, principal of Great Street Realty, reported that retail is healthy in Chicago, with 2021 sales up 28% over 2020’s sales and bar and restaurant business up more than 30%. And workers are returning to the city — he estimated that offices are now 50% back.

“Chicago has always done a great job of getting people in the city proper,” Miller told me. “We’ve seen tons of neighborhood growth in the South Loop and West Loop since the early 2000s.”

Feeding that growth has been a stream of graduates from Midwest universities, earning good money and looking to get out of their apartments to restaurants and cafes. They’re also returning to boutique fitness locations, which are chipping away at the big-box chains.

Hybrid working is still a factor, even as people are cautiously returning to physical stores, said Diane Wehrle, a founding director of Springboard, which provides retail data analytics, retail traffic counting, and customer sentiment tracking for retailers, shopping centers and downtowns in the U.S. and U.K. About half of

all employees are still working from home at least part of the time, which is shifting their spending from city centers.

“We’re not seeing a massive return full-time to offices,” Wehrle said. That affects food and beverage in particular, both in the downtowns and in the suburbs or neighborhoods where people are working the rest of the time. Localism, clearly, remains a pattern as people became accustomed to shopping closer to home, and to combining trips.

And the parties were back in force, from the ever-amazing Let’s Get Social, to Meridian Capital’s pool party, to Brown Rudnick to New York Developers. All seemed to have record attendance and were bustling when I was there (and thanks for having me!).

Overall, it was a great conference, one that many people I’ve spoken with since believe was too short. We know everyone uses the last part of the conference to get away, but a full Tuesday and maybe even a part of Wednesday really would have justified the expense of the meeting (prices are up). Let’s hope ICSC rethinks the meeting length for next May, and even for the return of the New York conference in December.

See you at both.

Debra Hazel Debra Hazel Communications North Las Vegas, NV (201)618-5247

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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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ARTICLES

Calling All Backyarders:

Fall is Your Time to Shine

By Kris Kiser, president & CEO of the TurfMutt Foundation and the Outdoor Power Equipment Institute (OPEI)

Backyarding, the move of many indoor activities to the outdoors, is now a permanent way of life.

During the pandemic, learning to work, entertain, vacation, exercise and more in one’s own backyard became a necessity. Now, people are recognizing it’s often a better way to live.

In fact, a recent poll commissioned by the TurfMutt Foundation and conducted online by The Harris Poll found that more than three-quarters of Americans who have a yard (76%) say the family yard space is one of the most important parts of their home. Nearly three quarters of Americans overall (72%) say a spacious yard would be at the top of their wish list if they were looking for a new home. That desire reflects a cultural shift in how Americans view their yards. Even more so, they’re willing to invest in their yards, and are using them more for everyday activities, including as work-from-home office space.

Identifying your backyarding personality type is an important first step in creating a backyard that supports your family’s needs and desires.

Fall, in particular, is a critical season for your backyard. The work you put into your yard now will reap benefits all year long. Remember: work your landscape and your landscape will work for you.

Two backyarding personality types in particular — the Expert Landscaper and the Work from Home Pro — can really shine in fall. Here’s why.

Expert Landscaper This personality type knows that yard work done in the fall provides a double benefit because what

92 MANN REPORT | AUGUST 2022

you do in autumn to maintain your yard sets the stage for its health and vibrancy come spring. Expert Landscapers find pleasure in fall yard chores: removing leaves, pruning trees and cleaning out flower beds and garden plots.

Work from Home Pro As a work from home professional, you have been living for fall when the temperatures are perfect for taking your office outside. All you need is a strong Wi-Fi connection, your nicest leisure wear and a jacket for chilly morning meetings, and you’re ready for work in your backyard. Nature is your video call backdrop, and you have set up your outdoor office for success by using shrubs and patio planters to distinguish your outdoor office space from other backyard activity zones.

No matter your backyarding personality type, you can have a fabulous family yard this fall and beyond with these simple steps. (Pro tip: having the right outdoor power tools on hand — mowers, pruners, trimmers and leaf blowers — can make easy work of these chores.)

Plant bulbs and flowering shrubs that will give blooms in spring and summer to feed our pollinators, like birds, bees and butterflies, as well as provide beauty for those natural, video conference backdrops.

Plant a tree for shade or cover. It may take a few years to grow to shade-producing height, but it’s a worthwhile investment in your outdoor space.

Identify the ideal time to prune specific tree

and shrub species and do so accordingly. Depending on what is in your yard, fall may be the perfect time.

Remove leaves. Mulching leaves rather than raking and bagging them is good for your lawn and the environment. As shredded leaves decompose, they feed your lawn, naturally.

Mow at the right height. Cut grass until the first hard frost. Find the just-right length for your species (typically between two and three inches) to keep your grass healthy when it turns cold. Overseed grass, and don’t forget to aerate the lawn in fall to prevent soil from becoming compacted and covered with thatch — a thick layer of roots, stems and debris that blocks water, oxygen, and nutrients from reaching the soil.

Water wisely. If you’re not getting at least an inch of water each week, keep watering throughout the fall. Install watering solutions, such as smart controllers on irrigation systems, to conserve water.

Consider installing decking or a hardscape to create an area to set up a desk or table. Make sure adequate electricity is available to power those laptops and other devices.

Kris Kiser Outdoor Power Equipment Institute 1605 King Street Alexandria, VA 22314 turfmutt.com opei.org (703)549-7600

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ARTICLES

The Residential Amenities That People Actually Desire in a Post-Pandemic World

By Walter Marin, NCARB, senior principal, Marin Architects

With much of our lives now spent inside our homes — from working to relaxing and spending time on Zoom — those living in apartment and condo buildings desire more than a doorman and a well-designed lobby. As remote and hybrid work cultures increase, renters are spending more time at home, seeking developments that follow certain criteria and offer amenities beneficial to their lifestyles. Gyms, clinics and daycare are some of the most sought-after amenities as they support residents and aspects essential in their lives.

benefits that cannot be artificially replicated.

For instance, access to natural light is linked to positive reinforcement on your mental health.

According to Elemental Green, exposure to natural light has been shown to increase concentration and focus, and it is especially important when working from a home office. A naturally lit space will help you be more productive than an artificially lit work environment. Taking in an abundance of natural light and spending time outdoors during the day also helps you sleep better.

When designing or adapting a building to the modern-day renter, assessing amenities available to them are of utmost importance. The COVID-19 pandemic drastically changed the way people live and interact, prompting the need for services and additional spaces that weren’t prioritized earlier. People are no longer longing for a pool or a game room; they’re interested in offerings that will support wellness and convenience, especially as many continue to work from home.

Convenience While taste varies, there are popular standard amenities that most renters desire — convenience being a key driver for many of them. According to MyMove, location and convenience are among renters’ top decision factors when choosing where to sign a lease. Residents have strong opinions about walking versus driving to destinations they frequent often. Renters, particularly millennials, see high value in living in a walkable neighborhood. With regard to the health, social, economic and environmental benefits that are associated with walking versus driving, an area’s Walk Score has become an important factor to consider.

Health & Wellness at the Forefront Health and wellness continue to be at the forefront. While considerations for social distancing have largely faded with the introduction of the COVID-19 vaccine, residents are prioritizing their physical and mental health more than ever. Gyms will continue to be a must for renters who maintain a fitness regimen, but they’re also an added benefit for those who wish to ditch their gym memberships.

Accessibility to the outdoors — through a deck, terrace, rooftop or expansive windows — has also been linked to greater wellness

94 MANN REPORT | AUGUST 2022

Fortunately, walkable mixed-use neighborhoods are on the rise throughout North America. These neighborhoods provide residents with easy access to services and other businesses without requiring the use of a car as a main mode of transportation. In high-density cities such as New York City, mixed-use developments where the property is a marriage between residents and non-residential tenants provide direct access to grocery stores,

Urgent Cares and pharmacies, making them a highly desirable place to live.

Child & Pet Care Services During the early stages of the pandemic, creating a work-life balance, especially when children and pets were involved, was seemingly impossible. Today, with the help of mixed-use developments, people have increased access to services without having to leave the vicinity of their apartments. For those needing childcare while working from home, close-by communal spaces filled with toys, games and caregivers are vital. Similarly, pet care has become increasingly important. According to a study conducted by rent.com, of the 1,000 renters between 18 and 34 that took part, 33% owned a pet, 67% reported interest in a community dog park, 54% were interested in a community pet-washing station and 35% desired dog treats in the lobby. Whether the renter has a child or pet, people want amenities that aid in the care of their family members.

While many residents are still working from home, spending a large portion of their days inside, buildings need to offer ways to better the well-being of their renters. This new work culture is likely to continue for the foreseeable future; therefore, designing practical, convenient and highly desired amenities will remain a priority as residents want everything at their fingertips in a single location.

Walter Marin Marin Architects 57 West 38th St., 10th floor New York, NY 10018 (212)463-8480

ARTICLES

Building Infrastructure and IAQ are Crucial Foundations of Digital Transformations

By Tony Abate, CTO, AtmosAir

As property and portfolio owners look to the next age of modern commercial real estate, namely digital transformations, the need for robust building infrastructure systems and indoor air quality (IAQ) will be vital in bringing tenants, occupiers and customers back to all asset types. This push for digital transformations also comes as owners are working to develop comprehensive environmental, social and governance (ESG) strategies that provide confidence for tenants and offer transparency on emissions, energy consumption and important metrics.

Digital Transformations: A Necessity for the Built World Though owners are aware that it has become necessary to adopt digital technologies and prop tech innovations to remain competitive, 87% of projects ultimately fail to meet objectives. This highlights the need for a tangible and robust transformation plan that can effectively be put into practice, followed through and consistently maintained and updated as needed. Part of any comprehensive transformation plan will include IAQ, which continues to be a crucial factor in bringing workers back to the office and instilling confidence in the public.

Moreover, studies show IAQ is the most important factor for workers when returning to office. With this necessity of IAQ and digital transformations comes two primary methods of alleviating concerns from workers, tenants and customers. The first strategy is through diluting pollutants with ventilation from outdoor air. While this can be effective, it is a limited solution due to the potentiality of low-quality

96 MANN REPORT | AUGUST 2022

outdoor air or adverse weather conditions.

of their building spaces.

A Wider Option of Technologies Though the construction industry has begun to adopt new technologies as digital transformations become crucial to overall owner strategy, the use of IAQ systems has lagged other tech sectors that have experienced significant growth in the built world in recent years. This adoption of other technologies has been driven by the need for increased ESG and energy efficiency-focused strategies. These strategies in effect are built to create transparency for stakeholders and promote sustainability in the built world, which can be seen in LEED and healthy-building certifications. However, as owners look to create a plan that incentivizes buy-in from stakeholders and tenants, IAQ will be important in convincing the public that a property is now safe and ready for use, especially in light of the pandemic and increased concerns about air quality and health.

However, in order to provide confidence for workers to return to offices, and for customers and tenants to return to similar spaces, owners should ensure that along with an updated HVAC system strategy, a robust IAQ strategy is also vital.

Another vital strategy for owners and operators is to optimize the usage of building systems such as HVAC in spaces to reduce costs and energy consumption. Systems such as air conditioning, heating, water and waste management can put a large strain on the energy used by a building, and lead to massive amounts of emissions. This in part has led to the built world contributing approximately 40% of the world’s carbon emissions. However, if optimized correctly, and certain aspects of the systems are prioritized, such as indoor air quality, costs can be saved and owners can be more strategic with the cooling and heating

Current & Upcoming Regulations With the digital transformation trend sweeping the industry, owners, operators and tenants should remain aware of in-place regulations as well as potential regulations in the future. Cities like New York City have implemented regulations and restrictions for buildings over a certain square footage and have developed and implemented rules around emissions, sustainability and energy consumption for buildings.

Companies that can meet these in-place and new regulations will be able to attract occupants, drive cost savings in a number of different building aspects and address health, safety, sustainability, ESG and transparency with stakeholders all at once, while creating an improved tenant experience, reduce overall spending for owners and optimize building systems for years to come.

Tony Abate AtmosAir 418 Meadow Street, Suite 204 Fairfield, CT 06824 tabate@atmosair.com (203)335-3700

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ARTICLES

Forward Rate Lock:

A Solution for Developers in the Real Estate Industry?

By Stuart Gelb, CEO, The Liquidity Source

A mortgage rate lock is an agreement between borrower and lender that allows borrowers to loc in an interest rate. If you’re looking to borrow, here are a few key things you should know:

individuals goes down, and rentals are a great solution. This is great news for landlords as the properties appreciate, resulting in net operating income increases.

Over the last three decades, inflation has been relatively low in the U.S. economy. In fact, inflation has averaged over 1% to 2% over the last decade. The highest inflation in the United States during the 20th century occurred after both of the World Wars and during the 1970s.

The lowest inflation was during the Great Depression of the 1930s. During this period, deflation occurred and was actually negative inflation when most prices in the economy were falling.

There is a supply problem in this sector, and high demand with little supply keeps prices very strong. With large companies ridding themselves of office space and retail segments, and overbidding on safe rental or multifamily properties, cap rates compress as the bidding wars progress.

Stagflation happens when prices are rising, currency is losing value and no real growth is occurring to create jobs. This is the fear as there are no economic tools in place to control this type of cycle.

Another example is an unexpected increase in the price of oil or energy, and at the same time the profits drop. This is a conflict where economic growth leads to an increase in unemployment and results in consumer lack of spending power. This concept is very complicated and can affect the entire globe.

The Effect of Inflation on Real Estate During times of high inflation, rental property prices keep rising. This is very strong for those in the multifamily sectors. When mortgage rates rise, the purchasing power of the

There is no question that there are negatives in inflationary times as the debt increases, but the overriding factor of higher rents on typically annual increases is a great offset to this issue.

Problem: With the inflation rate at 8.5%, the Fed is raising interest rates to slow the economy down.

Why is this a problem for developers in the construction space today? When the developer goes to borrow funds on a specific project, the rates are typically variable and will change monthly to the much higher rates. With the additional costs of labor and materials, this will substantially add to the cost of the project.

Most construction projects go on for 24 months or more, and only upon stabilization can they get their permanent financing, based on the state of the 10-year Treasuries at that time. That pricing today is unknown and is projected to be much higher, resulting in major effects on the size of the loan, debt service

coverage ratios and the annual cost of the loan. This will have a negative effect on all ratios — debt yield, cash flow, cap rate, return on investment, return on equity, loan to value and internal rate of return calculations. At certain levels unknown to the investor or developer today, the actual project may not be profitable to execute and will not be known at the point of receiving the construction loan.

Solution: Forward rate locks that are set up with swaps.

Banks can use these derivatives to safely lock in rates for their clients. There are very few banks doing “forward rate locks” today in construction. This gives the opportunity for the developer to lock in a forward rate lock on the permanent financing when closing on their construction loan. Typically, the lock is in place for eight years after the two-year construction comes after completion and stabilization. At minimum, one can pencil in the costs of financing and be comforted that the deal makes sense.

This solution creates a safe option for the developer as they will know upfront their financial costs and the ability to be profitable in such an environment.

Stuart Gelb The Liquidity Source 19 East 80th St. New York, NY 10075 stuart@theliquiditysource.com (516)206-0692

N 212 98 MANN REPORT | AUGUST 2022

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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.

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Mann_Re

A.E.C

Columbia Property Trust Revitalizes 95 Columbus in Jersey City The all-glass entrance fills the lo!y lobby with natural light.

A

s the Grove Street area in Jersey

building — and contributed to the ongoing

to enable our tenants to work and thrive. We

City, New Jersey continues its

revitalization of the surrounding district —

combined Spectorgroup’s striking design

reinvention, so, too, are its build-

with a fresh and modernized lobby, an up-

with cutting-edge technology and an em-

ings, including the recently com-

graded façade and a reimagined entryway

phasis on wellness, while also enhancing the

to enhance the arrival experience for tenants

property’s connection to the vibrancy of the

and guests.

Grove Street retail and neighborhood,” said

pleted 95 Columbus.

Columbia’s David Cheikin, executive vice

Working with global architecture firm Spectorgroup, owner Columbia Property Trust has

“Our goal for the 95 Columbus renovation

president, East Coast. “The revitalized 95 Co-

reinvented the 680,000-square-foot office

was to create the best possible environment

lumbus is ideally positioned to a"ract grow-

102 MANN REPORT | AUGUST 2022

A.E.C

95 Columbus is located in the Grove Street area.

Coates installed on the wall near the elevator

Greenery activates the lobby.

bank, brings a note of playfulness and urbanism that completes the modern lobby.

The fresh lobby design was carried out along the base of the building by recladding the retail spaces and repainting the building’s façade. Landscaping and seasonal greenery further activate the entrance and add a natural, biophilic aesthetic. The storefronts have ing companies looking for a fully modernized

been reinvented with new glass windows

While renovating and modernizing the build-

workplace that offers exceptional one-seat

and a signage band to raise their visibility.

ing systems, Columbia has continued to

Midtown and Downtown transit access in

Additionally, terraco"a panels along the base

invest in technology and operating enhance-

the midst of a vibrant, walkable and culturally

of the building near the parking garage add

ments that emphasize occupant health,

rich community.”

texture and color, giving movement along the

wellness and safety. These upgrades include

pedestrian path to and from the building.

installing automated digital access, touchless doors, bi-polar ionization air filtration

“As a leading developer, owner and operator, Columbia Property Trust wanted an updated

Other finishes within the design include a

and destination dispatch elevators through-

lobby that aligned with their overall revitali-

pa"ern of brass inlays in the terrazzo flooring

out the building. Columbia also added an

zation of 95 Columbus,” said Scott Spector,

that is carried from the lobby into the pavers

expansive bike storage room, bathroom and

principal, Spectorgroup. “We found strategic

outside. A combination of vertical and cus-

shower facilities and attached, 500-space

ways to modernize the lobby with a design

tom fabricated horizontal concrete panels

indoor parking garage.

that places tenant and visitor experience at

replaced the lobby’s former monolithic dark

the forefront and bring that same experience

granite. Dark-stained wood paneling and

95 Columbus recently earned the BOMA

to connect with the streetscape.”

pops of color in the furnishings draw atten-

360 recognition for an eighth consecutive

tion to the lounge and meeting areas and

year and has earned LEED Gold, Fitwel and

provide contrast to the overall neutral pale"e.

WiredScore Platinum certifications.

An all-glass entrance and building vestibule seamlessly connects the building to

Photos by Chris Cooper

the surrounding neighborhood and fills the triple-height lobby with natural daylight. A grid of suspended light fixtures over the reception area, as well as strategically placed seating and meeting areas, bring human scale and warmth to the expansive space, which is highlighted by a custom-designed reception desk made of polished granite and oxidized metal, and offset to allow for better traffic circulation through the lobby.

Adding some visual punch, the building’s address number, “95,” is branded in backlit appliqué at the entry and repeated inside as a unique design detail. Additionally, “Brushes for Beuys” (2021), a series of large, shaped canvases by contemporary artist Gregory The address appears as a design detail.

AUGUST 2022 | MANN REPORT 103

A.E.C

20 CambridgeSide Reaches Construction Milestone

The first floor lobby will link multiple buildings 104 MANN REPORT | AUGUST 2022

A.E.C The complex has evolved into mixed-use over three decades.

C

ambridgeSide has recently celebrated an exciting mile-

East Cambridge community,” said Stephen R. Karp, chairman and CEO

stone in the construction process, the placing of the final

of New England Development.

beam for 20 CambridgeSide, located at the corner of Edwin Land Boulevard and CambridgeSide Place, in Cambridge,

CambridgeSide opened in 1990 as the enclosed mall CambridgeSide

Massachusetts, close to downtown Boston. When completed, 20

Galleria, and has over the years evolved into a mixed-use complex with

CambridgeSide will be a 350,000 square-foot life science building as

shops and office space. Following a multimillion-dollar rebranding and

part of six interconnected buildings totaling two million square feet of

renovation, CambridgeSide features two levels of shops and restau-

office, lab, residential and hotel uses.

rants, including brands such as Apple, Sephora and The Cheesecake Factory. The 20 CambridgeSide building will have direct access from

“We are pleased to mark this milestone in the development of Cam-

the second-floor lobby to CambridgeSide’s two levels of retail and

bridgeSide. Over thirty years from the inception, CambridgeSide con-

eateries. Recently approved rezoning will expand the complex into six

tinues to be at the forefront not only as a premier shopping destination

interconnected buildings totaling two million square feet.

but evolving to a prominent place to work and live within the vibrant The site is located on the Charles River waterfront near top tourist a#ractions including the Museum of Science, CambridgeSide shops, restaurants and planned future office, lab, residential and additional retail (including Apple, Superdry, Sephora and T.J. Maxx), restaurants and green spaces. Restaurants include The Cheesecake Factory, in addition to over 12 other eateries. GoPixelYourself is a new selfie museum featuring an immersive video experience. The redevelopment is being completed in multiple phases, while keeping CambridgeSide shops and restaurants in full operation, serving the community. The construction sequence has been designed to minimize impacts to the surrounding community, pedestrians, bicyclists and vehicles.

A life sciences buidling joins the complex. (Credit: CambridgeSide) Renderings by Elkus Manfredi Architects

AUGUST 2022 | MANN REPORT 105

A.E.C

Whittier Central Library Completes Remodel

01

The newly modernized Whi!ier Library

A

s communities and communications change, so must

two-thirds (eight square miles) of Whi!ier’s 12 square miles and is home

libraries, which is why the Whi!er Central Library in Whit-

to the most requested and popular materials, including access to the

tier, California, recently finished a complete renovation.

internet, special collection, Veterans Resource Center, passport process-

The 39,300 square-foot, $14.6 million project included

ing, and a variety of programs and services for the entire community.

04

a 35,000 square-foot modernization to the existing building and a 4,300-square-foot minor expansion.

02

“We were honored to partner with the city of Whi!ier in renovating this historic community landmark,” said Karl Kreutziger, president, C.W.

The expansion enlarged and modernized the children’s area and re-

Driver Companies, which completed the renovation. “Our relationship

structured the offices and restrooms to bring them to current building

and history working with the city positioned us to deliver a state-of-

codes as well as optimize for efficiency. The building’s exterior and

the-art remodel and improvement project that will better serve the

landscaping were remodeled to create an updated look and feel while

community for years to come and enable the Central Library to contin-

retaining the integrity of the library’s rich historical architecture.

ue acting as the heart of Whi!ier’s activities.”

Originally built in 1959, the Central Library has been a long-standing,

C.W. Driver Companies worked alongside architect CWA AIA Inc. on

integral landmark of the local community. The library’s service area covers

this project.

106 MANN REPORT | AUGUST 2022

01 T 02 P 03T

Pho

A.E.C

01

02

03

04

05

01 The main desk 02 Pleasant places to read 03The updated entry

06

04 Two stories of learning 05 Contemporary meets classic 06 A gathering point for the area

Photos courtesy of C.W. Driver Cos.

AUGUST 2022 | MANN REPORT 107

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COLLEGES

Bringing STEM Home:

Chapman University Completes Hall of Engineering

I

n its continuing expansion of its commitment to science, tech-

of Engineering is the school’s newest academic program, led by

nology, engineering and mathematics (STEM) research and

Founding Dean Andrew Lyon and offering majors in computer engi-

education, Chapman University in Orange, California recently

neering, computer science, data science, electrical engineering and

completed the three-story Swenson Family Hall of Engineering,

so#ware engineering.

the new home of the Dale E. and Sarah Ann Fowler School of Engineering. The project consisted of a 31,000-square-foot interior buildout within the existing Keck Center for Science and Engineering, built

by C.W. Driver Companies in 2018 as the largest, most expensive and most technologically advanced project in the university’s history. Now open, the dedicated engineering wing includes innovations that mirror those of the school’s curriculum, which engages students and faculty in interdisciplinary collaboration to help solve global challenges and build for the future.

“We were honored to partner with Chapman University in constructing a both beautiful and highly functional hall for its newest academic program, the Fowler School of Engineering,” said Aimee Siemianowski,

The new space features teaching labs.

project executive, C.W. Driver Companies. “Our long history of constructing higher education and research facilities for Chapman University and colleges across the state enabled us to deliver a cu!ing-edge facility designed to foster collaboration, reconfiguration and blur the lines between teaching and education.”

Founded in 1861, Chapman University is a nationally ranked private university located in Orange, California. Chapman is categorized by the Carnegie Classification as an R2 “high research activity” institution and offers personalized education to more than 9,000 undergraduate and graduate students. The Dale E. and Sarah Ann Fowler School

112 MANN REPORT | AUGUST 2022

The design fosters collaboration.

COLLEGES

The Swenson Family Hall of Engineering occupies three consecutive floors and includes research and teaching labs, state-of-the-art equipment for fabrication, an extensive makerspace and robotics lab, an open faculty suite, a variety of student and faculty collaboration spaces and a dean’s suite. The upper floors are connected by a grand and visually a!ractive staircase with surrounding seating areas that encourage connection and conversation. The lower level is a collaborative student space traversed by a gallery or “ideation path” that connects the facility to the rest of the Keck Center for Science and Engineering.

Research pods, teaching labs and study alcoves can be found on the An extensive makerspace is included.

second floor, while the third floor is dedicated to an innovative faculty suite with workspaces, collaboration zones and meeting rooms.

The namesake for the hall is a dedication to Jim Swenson and the Swenson Family Foundation for their $5 million donation to Chapman University. Jim Swenson, who died in 2018, was the pioneer of Details Inc., the fastest quick-turnaround engineering prototype circuit board shop in the nation. His legacy of transforming a vision into entrepreneurial success provides inspiration to faculty and the next generation of engineers at Chapman.

Robotics is a critical component.

C.W. Driver Companies worked alongside Chapman University’s Campus Planning Department and AC Martin Partners Inc. on the project.

Driver has created several new educational facilities for Chapman University, including the 149,697-square-foot Keck Center for Science and Engineering, home to the Schmid College of Science and Technology and Fowler School of Engineering. Additional projects for Chapman have included the Harry and Diane Rinker Health Science Campus in Irvine, The Lastinger Tennis Center and the transformation of the Argyros Forum into a student union.

“The opening of the Keck Center’s science wing in 2018 signaled a

Study alcoves abound

tremendous step forward in the STEM fields at Chapman University,” said Colle!e Creppell, vice president of Campus Planning and Design, Chapman University. “Thanks to the valuable expertise of C.W. Driver Companies in building the Swenson Family Hall of Engineering, our new Fowler School of Engineering has a place to call its own. The facility will be paramount to attracting high-quality faculty and talented students pursuing undergraduate and graduate-level study of engineering, which in turn will help meet the growing demands of the California economy.”

Photos by Lawrence Anderson

Spaces are interconnected.

AUGUST 2022 | MANN REPORT 113

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EXECUTIVE CHANGES

and conversant in Turkish — has been a

Keskinkaya Joins Berkshire Hathaway HomeServices New York Properties

resident of New York City for decades. The international market has been a mainstay

Cynthia Keskinkaya

for her business.

“We are delighted to be joined by one of

Top New York City agent Cynthia Kes-

last 12 months, she totaled over $50 mil-

the industry’s greatest and most skilled

kinkaya has recently joined Berkshire

lion in sales. She has brokered nearly a

professionals,” said Steven James, presi-

Hathaway HomeServices New York Proper-

half-billion dollars in sales volume across

dent and CEO of BHHSNYP. “Cynthia has

ties (BHHSNYP).

her career.

not only been a leader in the luxury sector for many years, but she has one of the

Keskinkaya was most recently a top pro-

Born in Portugal, Keskinkaya — who is

strongest client retention rates of anyone

ducer at Douglas Elliman where, in the

fluent in English, Portuguese and Spanish

in the industry.”

Horovitz Named Senior Vice President at Brown Harris Stevens Residential Management

agers, residents and staff.

He joined BHS in 2016 a!er serving at some Richard Horovitz

of Manhattan’s most sought-after condominiums, including the landmark Plaza Condominium and Private Residences, the firm

Brown Harris Stevens has promoted Rich-

firm’s Residential Management division,

said. Previously, he worked for several hotel

ard Horovitz to senior vice president/direc-

working alongside President of Residential

groups in operational and service manage-

tor of property management after serving

Management Paul J. Herman and Executive

ment roles, including Morgans Hotel Group,

for six years as on-site manager for the

Vice President of Accounting Greg Zammit.

Starwood Hotels and Resorts and Hyatt ho-

BHS-managed 15 Central Park West con-

Horovitz will continue to oversee 15 CPW’s

tels, among others. Horovitz earned a Hotel,

dominium. In this new role, Horovitz will

ongoing and scheduled capital projects,

Restaurant and Business Management de-

oversee the day-to-day operations of the

working with the building’s board of man-

gree from Purdue University.

the sales process for the team, alongside

Livly Hires Multifamily Industry Veterans Wyant, Toomey

Vice President of Business Development Devin Wirt. Prior to Alfred, Wyant served as Jon Wyant

Greg Toomey

the head of sales at Hop Life. He previously worked with Updater and Entrata.

Livly, an enterprise-grade resident experi-

Both join Livly directly from Alfred, where

Toomey joins Livly as a national sales execu-

ence platform for multifamily apartment com-

Wyant served as vice president of real estate

tive, responsible for identifying and nurturing

munities, is hiring multifamily veterans Jon

growth and Toomey as director of growth.

new and existing multifamily clients. Prior to

Wyant and Greg Toomey to lead and support

As vice president of enterprise sales at Livly,

Alfred, Toomey served as regional vice pres-

sales as the team ramps up expansion across

Wyant will oversee Livly’s sales organization

ident of sales at Hop Life, and also worked

the United States.

and help implement initiatives to optimize

with Updated and Entrata.

116 MANN REPORT | AUGUST 2022

EXECUTIVE CHANGES

Farda is charged with demystifying, streamlining and elevating the commercial real estate

CrowdStreet Adds Fintech Executives Farda, Mackley

investing experience for individual investors, whether they are self-directed or prefer some John Farda

Sco! Mackley

level of guidance. Most recently, he was managing director of North America for global

With individual investors increasingly turning

investors. No one else was offering the

foreign exchange trading platform Oanda,

to private equity commercial real estate to find

same breadth and depth of meticulously

where he headed growth in the United States

a haven from market volatility, CrowdStreet,

evaluated deals for all property types —

and Canada. Before that, he was an executive

the online private equity real estate investing

multifamily, office, hotel, industrial and

at Fidelity Investments and at E*Trade.

platform, has hired two executives with deep

more. But to meet increased investor de-

fintech and marketplace experience: John Far-

mand for strong private real estate oppor-

Mackley will head up capital markets, invest-

da as chief product officer and Sco# Mackley

tunities, it’s critical to keep developing and

ments, strategic partnerships, marketplace

as president of marketplace business.

implementing groundbreaking, state-of-the-

operations, investor relations and internal

art products and solutions,” said co-founder

sales. He brings more than 25 years of financial

and CEO Tore Steen.

industry experience with QuinStreet, Citigroup

CrowdStreet has closed more than 645 on-

and Salomon Brothers. Mackley will oversee

line real estate syndication deals since 2014, with 115 of them fully realized as of May 2022.

Given their past accomplishments, Steen

all aspects of CrowdStreet’s private equity

added, Farda and Mackley will help Crowd-

commercial real estate deals. Post-funding,

“We were innovators when we brought

Street continually evolve its investor and

his team will oversee performance manage-

CrowdStreet’s online marketplace to retail

sponsor experience with our platform.

ment and investor management.

Osler’s great-uncle, George Elmslie, was a prolific Prairie School architect; her grand-

CRTKL Adds Two Retail Hires

father, Emil Lorch, founded the architecture school at the University of Michigan (and John Naranjo

Robin Osler

whose work inspired Frank Lloyd Wright’s Unity Temple, among other works). Her fa-

As part of a wider strategy to expand its

varied backgrounds who look at things differ-

ther, David Osler, was also in the profession,

design influence beyond architecture, glob-

ently from how a traditional architect might,”

as was her uncle, Roger Bailey. The latter

al architecture, planning and design firm

said Kim Heartwell, CEO at CRTKL.

founded the architecture school at the University of Utah and was a mentor to Charles

CRTKL has announced the appointment of Robin Osler and John Naranjo as principal

Osler’s career began in fashion, working for

Moore, often referred to as the father of

and associate principal, respectively.

designers including Oscar de la Renta as an

post-modernism.

in-house model.

Osler completed her master’s degree in ar-

“From the climate crisis to urbanization, the issues we face are growing in complexity and

“I always had an eye for detail, and while

chitecture at Yale University, established her

so too must our industry evolve. The need

fashion had captured it initially, the years I

namesake practice and built a portfolio of an

now is for a greater, more diverse perspec-

spent living and working in Europe turned

eclectic mix of modeling studios, galleries,

tive. For CRTKL, that diversity of perspective

my sights toward architecture and awoke this

boutique residences and major retail fit-

is achieved by recruiting outside of tradition

gene in me that I guess was there all along,”

outs including Anthropologie, Free People

and tapping into creative thinkers from more

she said.

and Terrain.

AUGUST 2022 | MANN REPORT 117

EXECUTIVE CHANGES

Bevan Bloemendaal Elevated to Chief Brand and Creative Officer at Nelson Worldwide

competitive and constantly evolving industry, the firm said. Bloemendaal will lead the brand marketing, sales marketing, strategy Bevan Bloemendaal

and insights, digital experience and brand identity and communications groups. His role will focus on creating brand unity and a

As part of an ongoing strategic effort to reor-

platforms: Retail; Workplace; Mixed-Use;

transformative human experience, unifying

ganize under a practice-led model, Nelson

Industrial; Healthcare; Hospitality; Asset

leadership, shared services (HR, Finance,

Worldwide, an award-winning architecture,

Strategy and Civic, Community, Justice and

Legal, IT), and all practices and platforms.

design and strategy firm, has promoted

Education (CCJ&E); Global Solutions and

Vice President and Retail Practice Leader

Architectural Implementation.

Prior to joining Nelson, Bloemendaal served as the vice president of global retail experi-

Bevan Bloemendaal to chief brand and In this newly created role, Bloemendaal will

ence and creative services at the Timberland

serve as creator, evangelist and quantifier,

Co. as a creative leader who delivered dis-

Bevan’s promotion comes on the heels of

forming a critical bridge between magic,

ruptive marketing solutions. While at Tim-

a “pivot to practice” strategy launched two

logic, art and science and partnering with

berland Co., he led the creative disciplines

months ago that shifts Nelson’s organi-

practice leaders to shape the Nelson brand

responsible for global store design, visual

zational structure from a regional model

purpose, creative vision and visual brand

merchandising, art and copy, digital/e-com-

to one led by each of its 10 practices/

language to ensure relevance in a highly

merce, and corporate events.

creative officer.

McCarthy brings decades of experience with

FCA Appoints McCarthy as President

healthcare environments to the leadership role.

Aran McCarthy

“It is an honor for me to assume the presidency of FCA, a legacy firm with an incredibly rich history and a recognized culture,” he said. “Like all

Architecture, planning and interior design

our organization’s strong values and company

members of our firm, I strongly believe we owe

firm FCA has elected FCA Principal Aran

culture. I’m confident in the ability of our exist-

it to ourselves to listen and learn before leading.

McCarthy, AIA, NCARB, as the incoming

ing teams across all market sectors to continue

I look forward to empowering those around me

president, effective on July 1 following the

providing cutting-edge design solutions, and

to keep building upon our strengths, providing

retirement of President John Campbell, AIA,

I know that I leave the firm in intensely capable

world-class design that is sustainable and time-

ARIAS, RIBA, LEED AP.

hands. I am looking forward to seeing FCA’s

less for our clients. The bravest among us are

continued growth for years to come.”

the clearest of vision, and I am confident that our quality of vision will continue to light the

Campbell’s FCA career spanned over 36 years, five of those years as president.

Campbell joined FCA as part of an exchange

way forward during my tenure as president.”

program between The Carpenters’ Company “I’m proud to have been a part of FCA’s evolu-

in Philadelphia and The Worshipful Company

McCarthy, who has been with FCA for 22 years,

tion throughout my career,” he said. “I’ve always

of Carpenters in London, working closely

led the firm’s expansion to Orlando, Florida, in

strived to honor the legacy of our firm’s found-

with two of the firm’s founders, Hughes Cauff-

2019, and the acquisition of established firm Fred

ers, inspiring smart design while reaffirming

man and James Francis.

M. Humphrey & Associates in January 2022.

118 MANN REPORT | AUGUST 2022

EXECUTIVE CHANGES

Sage Realty Promotes Lenchner to Executive Vice President, Director of Leasing

“Michael’s in-depth knowledge of the New York City marketplace and his keen negotiating skills have played a key role in securing so many largeSage Realty

scale deals over the years,” said Jonathan Iger, CEO of Sage. “I’m excited for Michael and am looking forward to working with him more as he

Sage Realty, the leasing and management

During his tenure at Sage, Lenchner has

increases his leadership responsibilities. He has

division of the William Kaufman Organization

been involved in many high-profile leasing

been such a driving force in Sage’s growth, and

(WKO), has promoted Michael Lenchner

transactions representing Sage’s properties.

we couldn’t envision the company without him.”

to executive vice president and director

Some of the highlights include: Goldman

of leasing. Having joined the company in

Sachs’ 550,000 square-foot lease at Sage’s

In his new role, he will manage all aspects of

1990, Lenchner has played a crucial role in

77 Water St.; Grey Global Group’s 430,000

day-to-day negotiations, oversight and coor-

the development of Sage, completing more

square-foot lease renewal at the firm’s 777

dination of all leasing transactions in Sage’s

than 12 million square feet of leasing trans-

Third Ave. tower and WeWork’s long-term,

office portfolio, comprising approximately

actions, valued in the billions of dollars, the

362,197-square-foot lease at Sage’s 437 Mad-

three million square feet of office and retail

company said.

ison Ave. property.

space in Manha#an.

Janet Woods, vice chairman, Northeast re-

Savills Names Clinton Senior Director, Northeast Research

gion lead at Savills.

Marisha Clinton

Clinton brings over 21 years of deep research experience to Savills and previously led Avison Young’s Tri-State research team. She

Savills has tapped Marisha Clinton as senior

She will collaborate with other departments

began her real estate career at JLL, where

director, Northeast research, to oversee the

locally and nationally to produce data-driven

she established its baseline capital markets

firm’s research teams across the Northeast

content and tools for client-facing pitches

research platform and developed a process

Region (New York City, New Jersey, Philadel-

and other business development efforts.

for capturing and cultivating granular local investment insights, creating best practices,

phia and Boston).

“Having served as an equity financial ana-

and publishing valuable market analysis.

Clinton will work alongside the Savills North

lyst at some of Wall Street’s most prestig-

American research and digital services

ious firms, as well as leading research for

Clinton is a Certified Public Accountant,

teams and will leverage her deep experience

major commercial real estate companies,

a graduate of Howard University and the

and success in building research platforms

Marisha brings a unique perspective to our

Wharton School at the University of Penn-

in competitive markets to deliver innovative

research team. Her ability to parse through

sylvania, where she respectively earned

data and insight for the firm’s brokerage

layers of data to showcase real trends will

her a bachelor’s degree in accounting and

teams and professionals, while also sup-

bring tremendous value to our revenue-

an MBA with a dual major in finance and

porting its national service lines, Savills said.

producing professionals and clients,” said

strategic management.

AUGUST 2022 | MANN REPORT 119

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Monday, August 8, 2022 ∙ 9:00 am

Fresh Meadow Country Club 255 Lakeville Rd, Lake Success, New York 11020 M O R E IN F O R M AT I O N

Howard Ingram, Assoc. Executive Director, Long Island hingram@jnf.org ∙ 516.678.6805 x110

jnf.org/LIgolfandtennis

jnf.org ∙ 800.JNF.0099

For more information contact: Mark Mindick, Partner mmindick@citrincooperman.com

CITRINCOOPERMAN.COM

Michael DeVito, Partner mdevito@citrincooperman.com

CROSSWORD PUZZLE

Tracking Real Estate News

By Myles Mellor

Across

Down

1 Now partnering with Triangle MLS, 2 words

2 Souvenir displayer

8 “Tradition does not mean to look a!er the ash

3 Motif

but to keep the ____ alive,” Jean Jaures 10 One of the most successful and well-known real estate brokers in the world and star in Bravo’s “Million Dollar Listing,” Ryan ____

124 MANN REPORT | AUGUST 2022

6 Holistic building experience platform for real estate managers 7 Haute couture, for example

12 Did a walk-through

8 Preferred

13 Development company that recently unveiled

9 Garfield’s cry 13 Vanity

15 Get be"er as a Glenfiddich perhaps

14 Copy machine

16 Rd. or hwy., abbr.

15 Chasm

17 Botanical garden for trees

17 Open courtyards

18 Military rank, for short

18 Land areas

20 Interior designer’s concern

19 Solid

23 Provocative

21 Environmental watchdogs, abbr.

25 ___ ease

22 Plants for a desert garden

26 Alfresco dining spots

24 Sweet potato

28 Clothing retailer establishing stores in

27 Operating

the metaverse

h!ps://bit.ly/3o6Dkj6

5 Corn section

11 Treasure

the 100th Floor of Central Park Tower

Solution can be found online at:

4 Ensure

28 Digital photo

29 Light-colored floor wood

29 Life story, in brief

32 Helping hand

30 Billboards, e.g.

33 Forming a pa"ern of intersecting straight lines

31 Dietitian’s stat, abbr.

32 Rogers’ state, abbr.

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COMMERCIAL CORNER

Jonathan Brody Jonathan Brody President, National Investment Sales Division, Rosewood Realty Group

J

o n a t h a n B ro d y i s p re s i d e n t o f

Louisville, Kentucky. Rosewood represent-

What is your hottest deal so far?

the Rosewood Realty Group’s Na-

ed both the buyer, Stoneweg U.S., a St.

It’s really hard to say what my hottest deal

tional Investment Sales Division,

Petersburg, Florida-based developer, and the

was. The largest deal I ever did was a $230

launched in early 2020 to focus on

seller, Lifestyles Communities, a Columbus,

million deal consisting of two properties in

Ohio-based developer.

Kentucky. However, I once did a deal with

the sale of off-market properties outside

AvalonBay Communities and my most chal-

the New York metro area. Since then, Brody has turned the once New York-centric broker-

Before joining Rosewood eight years ago,

lenging deal was done with Goldman Sachs.

age firm into a major player on the national

Brody worked for a real estate management

Now, that was a tough one.

multifamily scene. The 29-year-old Brody has

company where he managed properties for

personally closed over $1.2 billion in off-mar-

private equity firms and hedge funds. When

What pushes you to the next level?

ket deals using his strong work ethic, knowl-

he is not busy closing deals, Brody, who lives

My family. Every day when I get to work, I take

edge and deep relationships in the industry

in Queens with his wife and children, volun-

a minute and look at my family pictures next

to get results.

teers as an EMT for the local community.

to my desk. They are the reason I work so hard. I want them to have the best possible

How long have you been in the real estate industry?

life I can give them.

have more than tripled total national sales from inception with $400 million in 2020 to

Ten years. Before joining Rosewood eight

$1.45 billion in 2021 in states that include

years ago, I worked in real estate manage-

What is your secret weapon for sealing a deal?

Georgia, Texas, Florida, North Carolina,

ment for two years.

That is certainly something I can’t reveal.

Outside New York City, Brody and his team

Every broker is unique. I believe I have a for-

South Carolina, Kentucky, Tennessee, Alabama and more. For 2022, the national sales

What made you get into real estate?

are expected to total around $2 billion.

I have always had a passion for real estate.

mula and it seems to be working.

One of Brody’s notable national transactions

opportunity to supply good quality living for

What advice do you have for someone starting out in real estate?

in 2021 include the $230 million sale of a

tenants and at the same time earn a return for

Persistence is the key. Call, email, text and

1,246-unit multifamily portfolio in southeast

your investors.

never give up!

I find it to be a win-win for all. You get the

126 MANN REPORT | AUGUST 2022

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

BY THE NUMBERS

REAL ESTATE ROLLER COASTER The first few months of 2022 have been eventful, to put it mildly — what at first seemed to be a slow, steady comeback to normalcy from COVID-19 has been upended by new virus variants, the war in Ukraine and resulting inflation. But there is good news behind the headlines, as home prices and demand remain solid, unemployment is low and government continues to work toward resolving the massive amounts of money chasing goods amid lingering supply chain issues. It’s a transition you can see by the numbers.

$407,600

5.75%

Median price of an existing home in May 2022, up from $353,800 in December 2021

Average rate for a 30-year fixed-rate mortgage as of July 18, 2022 vs. 3.11% a year prior

(National Association of Realtors)

(Bankrate)

16.0%

3.8%

National office vacancy, though trophy buildings report 10.8% as tenants flee to quality

National vacancy rate in industrial space, 70 basis points under the pre-pandemic low set in 2018

(Avison Young Q2 2022 U.S. Market Overview)

(Marcus & Millichap National Industrial Report Midyear 2022)

3.6%

45%

U.S. unemployment rate as of July 2022

The increase in U.S. commercial real estate investment volume over Q1 2022, to $150 billion

(U.S. Department of Labor)

(CBRE)

Your Square Footage and Dollar Values, Delivered.

128 MANN REPORT | AUGUST 2022

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M A R C U M R E A L E S TAT E

WHAT IF LOCATION ISNʼT EVERYTHING? The Real Estate industry is complicated no matter where you are. Having the right advisor to call may just be the difference between good and great. Marcum Real Estate members are solely dedicated to providing solutions to their real estate clients and getting them to that great place. Ask Marcum.

marcumllp.com For more information about Marcum Real Estate contact:

Daniel Vitulli, National Partner-in-Charge of Marcum Real Estate Group 212.485.5575 | daniel.vitulli@marcumllp.com New York City | 750 3rd Avenue | 11th Floor | New York, NY 10017