The International issue
New York Los Angeles Miami Hamptons Las Vegas
A Mid-year Look at Commercial, Multifamily Real Estate Finance ESG 1.0 vs. ESG 2.0 Real Estate: Flagged for Digital Disruption Within the Next Decade
Making Buildings Perform for People Worldwide
WE WE BUILD BUILD PARTNERSHIPS PARTNERSHIPS THAT THAT LAST LAST AN ABS DEAL MEANS EVERYONE WINS AN ABS DEAL MEANS EVERYONE WINS Build to Suit Move-In Ready Build to Suit Move-In Ready
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7 Full Floors, Adjacent to Amazon, New Hotels + Restaurants 7 Full Floors, Adjacent to Amazon, New Hotels + Restaurants
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9 East 37th Street William Carr 9 East 37th Street 212-400-6078 William Carr 212-400-6078 Fully Furnished, Move in Condition
270 Madison Avenue John Cinosky 270 212-400-2348 Madison Avenue John Cinosky 212-400-2348 Fully Furnished, Full Floor
20 West 22nd Street Robert Finkelstein 20 West 22nd Street 212-400-9525 Robert Finkelstein 212-400-9525 Best Location on Union Sq Park
29 West 38th Street Ben Waller 29 West 38th Street 212-400-9515 Ben Waller 212-400-9515 Entire Tower Floor, Fully Prebuilt
210 11th Avenue Audrey Novoa 210 11th Avenue 212-400-6091 Audrey Novoa 212-400-6091 Top Fl.w/ Rooftop, Views of
Private Full Floor Prebuilds Fully Furnished, Move in Condition Private Full Floor Prebuilds
Light on 4 Sides Fully Furnished, Full Floor Light on 4 Sides
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Union Sq, Mad. Sq Park + Hud. River Top Fl.w/ Rooftop, Views of Union Sq, Mad. Sq Park + Hud. River
LX57 / 695 Lexington Avenue John Brod 212-400-9521 LX57 / 695 Lexington Avenue
145 East 57th Street Robert Neborak 145212-400-2352 East 57th Street
200 Park Avenue South Charles Conwell 212-400-6088 200 Park Avenue South
1001 Ave of The Americas John Cinosky 212-400-2348 1001 Ave of The Americas
915 Broadway James Caseley 212-400-6075 915 Broadway
John Brod 212-400-9521
Robert Neborak 212-400-2352
Charles Conwell 212-400-6088
John Cinosky 212-400-2348
James Caseley 212-400-6075
Office & Retail Leasing • Investments • Advisory • Capital Markets • Property Management For Office Leasing & Information on Our Properties or to Learn More About Our Services, Contact: 212.400.6060 - www.absre.com • Investments • Advisory • Capital • Property Retail Leasing Markets Management
For Leasing Information on Our Properties or to Learn More About Our Services, Contact: 212.400.6060 - www.absre.com All information is from sources deemed reliable but is subject to errors or omissions of any magnitude, withdrawal from market, or changes in terms, all without notice. Brokers employment and payment only by written agreement.
All information is from sources deemed reliable but is subject to errors or omissions of any magnitude, withdrawal from market, or changes in terms, all without notice. Brokers employment and payment only by written agreement.
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One Mann’s Opinion With summer finally upon us, it’s a thrill to see visitors back in the city. Broadway is thriving, stores are filled with shoppers and we’re ready to have a few days off ourselves. So welcome to our June/July issue. It’s been a busy first half here at Mann Publications. We’ve expanded our team, and introduced our redesigned website, making it easy to find the content from Mann Report and sister magazines Fashion Mannuscript and Mann About Town, as well as our ever-growing roster of newswires. We’re back on the road, attending conferences including Shoptalk, Magic, ICSC and FashionGo, as well as events here in our home base in New York City. Look for our increasing presence on Instagram, Twitter and elsewhere, too as we cover what’s going on around town and the world. Our second half will be just as busy — look for exciting news in coming months as we continue to provide new and innovative ways to give you the news and analysis you need to expand your business. Meanwhile, take some time to relax and enjoy this special double issue. We’ll see you on the beach, at the mountains and right back here in August. “Tradition does not mean to look after the ash, but to keep the flame alive.” — Jean Jaures
Jeff Mann Present / CEO, Mann Publications
Contents 46
Cover Feature 46 Making Buildings Perform for People Worldwide
Events 16 UJA-Federation of New York Holds First Real Estate Celebration 18 New York Landmarks Conservancy Presents 2022 Lucy G. Moses Preservation Awards
News Briefs 24 Commercial News 28 Residential News
54
32 Management News 36 Tech Talk 40 Breaking News
Features 52 Ask the Expert: Gemma Burgess on Diversifying Real Estate 54 A Mid-year Look at Commercial, Multifamily Real Estate Finance 56 Rockaway Beach Welcomes Women’s Health Facility
72
58 Nuveen Real Estate Launches Global Impact Investing Sector 64 It’s Time to Re-imagine Private Markets 66 Modular Proves Viable for Multifamily 72 A Middle East Pearl: Four Seasons and Q Bayraq Announce Luxury Development in Doha 74 AI and the Doorway 76 Daewoo Offers First Metaverse Application in Korea Property Market 78 ESG 1.0 vs. ESG 2.0 80 Real Estate is Flagged for Digital Disruption Within the Next Decade
104
AEC 102 To New Heights: The Palace Theatre is Raised on Broadway 104 Wine Meets Art at Edes Building 106 Warner Red Hill Commences Construction in Santa Ana
Colleges 112 Cal State Dominguez Opens Innovation and Instruction Building
112
Departments 8 One Mann’s Opinion 12 Editor’s Letter 84 The Articles 118 Executive Changes 124 Crossword 126 Commercial Corner: Gregory Kraut, co-founder and CEO of KPG Funds 128 By the Numbers: The Return of Global Real Estate
Editor’s Letter Maybe it’s my past work with a then-international trade association and my undying love of travel, but I’ve always believed that the world is interconnected, and that we can all affect and learn from each other. I think the last couple of years have proven me right. That’s why I’m excited to present our International issue, with articles and conversations about the similarities and differences in the real estate sector around the globe. In our cover feature, current RICS president Ann Gray tells us about global standards and trends, while Ferguson Partners President Gemma Burgess discusses the different definitions of sustainability here in the U.S. and elsewhere (and I’m totally thrilled to include C-suite women!). Also look for features on a new project in the Middle East, current investment opportunities and an important mid-year overview of all the changes in the commercial sector. Our columnists, too, offer their views on the importance of easements, preparing for hurricane season (it’s here, folks) and the need for more women in construction. The world is open again in many ways, and I can’t wait to see what globalization brings.
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REAL ESTATE & FINANCIAL SERVICES DIVISIONS
SAVE T H E DA T E
10TH ANN U A L G O L F OUT I N G M ON DAY , J U LY 2 5 T H G l e n Oa ks C o u n try C l u b O l d W e s t b u ry, N Y
Ho nor ing O f e r Yarde n i Chairman & Chief Executive Officer, Stonehenge NYC Former Affinities Group Chairman, New York Chapter
Former Real Estate Division Chairman, New York Chapter
For more information and sponsorship opportunities please contact:
Tamara Gitlin at tamara.gitlin@fidf.org (646) 274-9637
PHOTO EVENT
UJA-Federation of New York Holds First Real Estate Celebration
N
Jonathan Moinian, Mitchell Moinian and Daniel Ghadamian
Marty Kravet and Ronald Dickerman
early 600 real estate industry professionals gathered for
UJA's Real Estate Division has raised more than $15 million to date
UJA-Federation of New York’s inaugural Real Estate Celebra-
for UJA’s annual campaign during the 2022 fiscal year running July 1,
tion at Cipriani South Street in New York City. The event hon-
2021 through June 30, 2022. Working with a network of hundreds of
ored Ronald M. Dickerman, president and founder of Madison
nonprofits, UJA extends its reach from New York to Israel to nearly
International Realty, with the Jack D. Weiler Award, and Mitchell Moinian,
70 other countries around the world, touching the lives of 4.5 million
principal at The Moinian Group, with the Larry A. Silverstein REX Award.
people each year. Every year, UJA provides approximately $180 million in grants. In addition, UJA has provided more than $11 million in
The event was chaired by Daniel Ghadamian of Capstone Equities; Mar-
Ukraine-related emergency funding.
tin Kravet of Royal Abstract; Jonathan L. Mechanic of Fried, Frank, Harris, Shriver & Jacobson LLP and Jonathan Moinian of Fortuna Realty Group.
16 MANN REPORT | JUNE & JULY 2022
Photos by Michael Priest Photography
PHOTO EVENT
02
01
03
04
05
07
08
01. UJA Real Estate Celebration ballroom 02. David L. Moore, UJA board chair; Mitchell Moinian; Amy A. B. Bressman, UJA president; Ronald Dickerman and Eric S. Goldstein, UJA CEO 03. Marty Burger, Jonathan Mechanic, Alex Chudnoff and Richard Mack 04. Laura Greenfield, David Robinov and Lee Deutsch
06
05. Ronald Dickerman, Mitchell Moinian and Simon Ziff 06. Mitchell Moinian and Joe Koicim 07. Mitchell Moinian and Carmelo Anthony 08. Jon Estreich and Laura Estreich
JUNE & JULY 2022 | MANN REPORT 17
PHOTO EVENT
New York Landmarks Conservancy Presents 2022 Lucy G. Moses Preservation Awards
T
Jeffrey Murphy, Rev. Phillip Jackson, Mary Burnham, Zach Poole - Trini
Front row, from left, Yuien Chin, John Reddick and Heather Jason, Standing, from left, William Morache, Karen Asner, Carolyn Brown, Lula Urquhart and Nancy Cole
he New York Landmarks Conservancy celebrated The Lucy
received the Special Award for Preservation Service in honor of his
G. Moses Preservation Awards, the Conservancy’s highest
nearly 23 years as director of preservation services at the New York
honors for excellence in preservation, with a ceremony at
Landmarks Conservancy before his 2021 retirement. The Preservation
The Cathedral Church of St. John the Divine in Manhattan.
Organization Award was presented to Prospect Park Alliance for excel-
The Lucy G. Moses Preservation Awards, known as the “Oscars of
lent stewardship of its collection of historic structures and sites.
Preservation,” are made possible through the support of the Henry and Lucy Moses Fund.
The New York Landmarks Conservancy, a private non-profit organization, has led the effort to preserve and protect New York City’s
The 2022 Lucy G. Moses Preservation Project Award recipients includ-
architectural legacy for nearly 50 years, the organization said. Since
ed: 1 West 123rd St., 55 Reade St., 74 Grand St., Astoria Park Pool and
its founding, the Conservancy has loaned and granted more than $54
Play Center, Empire State Building Mooring Mast, Farley Building Post-
million, which has leveraged more than $1 billion in 1,850 restoration
al Lobby, Gage & Tollner, Helmsley Building, Highbridge Water Tower
projects throughout New York, revitalizing communities, providing
& Step-Street, Noonan Plaza Apartments, One Wall St., Power Station
economic stimulus and supporting local jobs. The Conservancy’s
at Berklee NYC, T Building and Trinity Church Wall Street.
work has saved more than 1,000 buildings across the City and State, protecting New York’s distinctive architectural heritage for residents
In addition, Yuien Chin, preservation advocate, received the 2022
and visitors alike.
Preservation Leadership Award for her work in centering Harlem’s rich architectural and cultural heritage. Alex Herrera, preservationist,
18 MANN REPORT | JUNE & JULY 2022
Photos by Noel Sutherland
PHOTO EVENT
01
02
03
04
05
06
07
08
09
10
11
01. NY Landmarks Conservancy President Peg Breen and Joseph Fishman 02. Edwin Rodriguez, Danois Architects 03. Peter Sjolund, Empire State Realty Trust 04. Sue Donoghue and Christian Zimmerman, New York City Parks, Prospect Park Alliance 05. NY Landmarks Conservancy President Peg Breen, Adam Johnson and Endre Boks 06. Preservation Leadership Award winner Yuien Chin
12
13
07. Stephen Webber, Power Station at Berklee 08. Sohui Kim, Ben Schneider and St. John Frizzel , Gage & Tollner 09. Casey Martinez, United American Land 10. Alex Herrera, recipient of the Special Award for Preservation Service 11. Barry Langer, Vornado Realty Trust 12. Gregory Brown, RXR 13. Martin Dunn, Dunn Development
JUNE & JULY 2022 | MANN REPORT 19
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SAVE THE DATE
JEWISH NATIONAL FUND–USA REAL ESTATE DIVISION PRESENTS
L EON A RD L I T W IN
NE W YORK C I T Y RE A L E S TAT E
T REE OF L IF E ™ GA L A
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D ED I C AT ED I N M EM O RY O F S TAN L E Y C H ER A Z ” L
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HONORING
H A IM C HER A
EVP - Head of Retail, Vornado Realty Trust Tree of Life™ Honoree
GL EN J. W EIS S EVP - Co-Head of Real Estate Vornado Realty Trust Tree of Life™ Honoree
R OY I. K IR S H
Principal Urban Company RE Gregory A. Davis Leadership Honoree
WEDNESDAY, JUNE 1, 2022 • 6:30 PM The Pierre Hotel 61st Street at 5th Avenue, New York City HONOR ARY C HA IRS
David R. Greenbaum, Vornado Realty Trust Jeffrey E. Levine, Douglaston Development M O R E I N F O R M AT I O N
Sarah Azizi, Director, Manhattan sazizi@jnf.org • 212.879.9305 x505
jnf.org/TOLnewyork
H O N O R IN G
Marc Katz
Senior Vice President, Investors Bank
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
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jnf.org ∙ 800.JNF.0099
Count Counton on onour our oursolid solid solidresources resources resources Count and andsound sound soundfinancial financial financialadvice advice advice and to totake take takeyour your yourconstruction construction construction to business businessto to tothe the thenext next nextlevel. level. level. business Construction ConstructionPractice PracticeLeaders Leaders Construction Practice Leaders Phil Phil Bottari, Bottari, CPA, CPA, Partner Partner David David McKelvey, McKelvey, CPA, CPA, PFS, PFS, Partner Partner PBottari@friedmanllp.com PBottari@friedmanllp.com DMcKelvey@friedmanllp.com DMcKelvey@friedmanllp.com Phil Bottari, CPA, Partner David McKelvey, CPA, PFS, Partner PBottari@friedmanllp.com DMcKelvey@friedmanllp.com
© 2022 © 2022 Friedman Friedman LLP. LLP. All rights All rights reserved. reserved. An Independent An Independent Member Member FirmFirm of DFK of DFK withwith offices offices worldwide. worldwide. © 2022 Friedman LLP. All rights reserved. An Independent Member Firm of DFK with offices worldwide.
Brian Brian Nuzio, Nuzio, CPA, CPA, CCIFP, CCIFP, Partner Partner BNuzio@friedmanllp.com BNuzio@friedmanllp.com Brian Nuzio, CPA, CCIFP, Partner BNuzio@friedmanllp.com
friedmanllp.com friedmanllp.com friedmanllp.com
COMMERCIAL NEWS
ArtsDistrict Brooklyn Arrives This Summer ArtsDistrict Brooklyn, an immersive and ex-
and expanded their original work as “Limit-
periential arts venue, will open this July at 25
less AI,” a 70-minute show.
Franklin St. in Greenpoint. Founded by David Galpern and Charles Roy, ArtsDistrict Brook-
Vast datasets of painting, science and nature
lyn (AD/BK) will feature the U.S. premiere of
were fed into an artificial intelligence algo-
“Limitless AI” by internationally renowned
rithm that taught itself to create new works
artists Ferdi & Eylul Alici of Ouchhh Studio,
derived from those sources — 15 billion
the Istanbul-based creators of the award-
Leonardo da Vinci paintings and brush-
as they emotionally respond to their own
winning 2018 “Poetic AI.”
strokes; millions of physics textbooks from
music. “Limitless AI” will be presented as a
Galileo to Stephen Hawking and a real-time
10,000-square-foot immersive experience
depiction of a live musician’s brainwaves
and feature over 70 projectors.
For AD/BK, the artist couple has reimagined
Photo courtesy of PRNewswire
Jollibee Opens First Downtown LA Location Philippines-born international restaurant
to be crispy on the outside, cooked with
chain Jollibee, known for its Chickenjoy fried
precision to be juicy on the inside and mari-
chicken and Jollibee Chicken Sandwich,
nated to the bone for next-level flavor; Spicy
opened in Downtown Los Angeles (DTLA) on
Chickenjoy, the fiery version of the classic
May 12 at 729 West 7th St. in the heart of the
Chickenjoy; chicken sandwiches and peach
city’s Financial District.
mango pie, made with peaches and real Philippine mangoes.
Photo courtesy of PRNewswire
2700 Colorado Blvd. (Eagle Rock). In addi-
The brand is best known for its take on an American favorite — fried chicken. Some
The DTLA location joins Jollibee’s two exist-
tion to the new DTLA location, Jollibee plans
customer favorites include: flagship prod-
ing restaurants in the Metro Los Angeles area
to open a second location in West Covina,
uct Chickenjoy, delicately hand-breaded
— 3821 Beverly Blvd. (East Hollywood) and
California, by the end of 2022.
Newmark Acquires Retail Advisory Firm Open Realty Continuing to grow its global retail footprint,
Open Realty is led by Mark Masinter, who
Newmark Group has acquired North Amer-
heads the firm’s macro strategy and busi-
ican retail real estate advisory firms Open
ness development; Johnny Siegel, who
Realty Advisors and Open Realty Properties.
spearheads tenant advisory services and
Dallas-based Open Realty will join New-
asset management strategies for clients and
Newmark’s recent acquisition was of real
mark’s Retail Services business line with an
Steve Merkle, who co-leads tenant advisory
estate advisory firm BH2. In the retail space,
extensive national and global top-tier client
business endeavors. Masinter and Siegel
Newmark’s previous acquisitions include
roster, and its founders will assume signifi-
join Newmark as chairman of global retail
London-based Harper Dennis Hobbs, New
cant leadership roles to expand Newmark’s
and president of global retail, respectively.
York-based RKF and ExcessSpace, in 2019,
global retail footprint.
Merkle joins as vice chairman.
2018 and 2015, respectively.
24 MANN REPORT | JUNE & JULY 2022
Mark Masinter, Johnny Siegel, Steve Merkle Photo courtesy of Newmark
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The information contained herein has been obtained from sources believed reliable. While we do not doubt its accuracy, we make no guarantee, warranty or representation about it. The prospective tenant should carefully verify each item, and all other information herein.
COMMERCIAL NEWS
Prologis Bids for Duke Realty Global logistics real estate company Prologis
Following personal dialogue between the
transaction. Duke Realty rejected the Prolo-
Inc. has repeated its proposal to purchase
executive teams, Prologis first sent a letter to
gis proposal that same evening.
Duke Realty in an all-stock transaction for
Duke Realty on November 29, 2021 regarding
$61.68 per share, a premium of 29% to Duke’s
a potential transaction at an exchange ratio
On May 10, Prologis reiterated the offer, add-
closing price on May 9.
of 0.465, representing a 20% premium to
ing that it had engaged Goldman Sachs &
Duke Realty’s stock price at the time. On May
Co. LLC and Wachtell, Lipton, Rosen & Katz
Prologis sent a letter to Duke Chairman and
3, 2022, Prologis modestly increased the pro-
to assist in completing this transaction. The
CEO James B. Connor a proposal under
posed exchange ratio — representing a 34%
next day, Duke again declined the offer and
which Duke shareholders would receive
premium to Duke Realty’s stock price at the
said it has retained Morgan Stanley & Co.
0.466 shares of Prologis common stock for
time — in a final attempt to engage privately
LLC as financial advisor and Hogan Lovells
each share of Duke Realty that they own.
to reach agreement on a mutually beneficial
as legal advisor.
Silverstein Properties Acquires Florida Development Silverstein Properties has acquired a
acquired by Silverstein and Cantor Fitzgerald
34,000-square-foot site at 505 East Tyler St. in
L.P. through their Cantor Silverstein Opportu-
Downtown Tampa, Florida, with plans to devel-
nity Zone Trust Inc. (CSOZ Trust), a Qualified
op a 770,000-square-foot residential tower with
Opportunity Fund. The seller is an affiliate of
430 residential rental apartments, approximate-
1754 Properties LLC, an institutional owner,
ly 15,000 square feet of retail and a 600-space
operator and lender of hotels and other real
town Tampa, home to over 3,700 businesses
parking garage. Silverstein will serve as the
estate based in Weston, Florida and its part-
and access to nearby restaurants, area night-
lead developer for the project.
ner at Triangle Capital Group.
life, the Riverwalk pedestrian trail, Amalie Arena, the University of Tampa and Tampa
The three-quarter acre site property was
The project site is in upscale Northern Down-
General Hospital.
Watermark Lodging Trust To Be Acquired By Brookfield Real Estate Funds Consolidation continues in hospitality, with
The Watermark portfolio is comprised of
private funds managed by Brookfield to
high-quality lodging assets consisting of 25
acquire Watermark Lodging Trust for $3.8 bil-
properties totaling over 8,100 rooms. These
lion in cash, including the assumption of debt
luxury and upper upscale assets are located
and preferred equity. Brookfield will acquire
in drive-to leisure destinations and gateway
all common shares of Watermark for $6.768
urban cities across 14 states with a high con-
managing partner and chief investment of-
per Class A share and $6.699 per Class T, a
centration in the Sun Belt region.
ficer in Brookfield’s real estate group. “This portfolio is well positioned given its concen-
premium of over 7.5% from the most recently published Net Asset Values per share as of
“Hotels and resorts of this scale and quality
tration in high barrier to entry coastal desti-
December 31, 2021.
are difficult to replicate,” said Lowell Baron,
nations, gateway cities and the Sun Belt.”
26 MANN REPORT | JUNE & JULY 2022
RESIDENTIAL NEWS
Compass Changes Executive Structure Tech-enabled residential brokerage Com-
its initial public offering and reported positive
joined Compass in April 2020, after 23 years
pass Inc. announced that Chief Financial
earnings for five consecutive quarters. Com-
at Amazon.
Officer Kristen Ankerbrandt will leave the firm
pass has initiated a search for a permanent
in September to pursue opportunities out-
chief financial officer; both internal and exter-
“Greg is an extraordinary leader who, over
side the company. Chief Product Officer Greg
nal candidates will be evaluated.
the past two years, has applied his unique experience and passion for technology to
Hart has been promoted to the role of chief With this promotion, Hart adds leadership of
the cause of replacing the real estate indus-
the Compass Operations organization to his
try’s complex, paper-driven workflow with a
Ankerbrandt joined Compass in 2018. During
ongoing oversight of the Compass Product
seamless, all-digital, end-to-end platform,”
her tenure, she successfully steered the busi-
organization, bringing closer together the
said Robert Reffkin, founder, chairman and
ness through a time of rapid growth, oversaw
teams that work with agents each day. He
CEO of Compass.
operating officer.
Douglas Elliman Goes All-in on Las Vegas Douglas Elliman Realty has expanded its
we have been flawlessly executing a growth
Western Region division to include Nevada,
strategy in Texas, Florida, New England
opening an office in the Downtown Summer-
and now Nevada,” said Scott Durkin, CEO,
lin urban center of Las Vegas.
Douglas Elliman Realty. “With its status as a low-tax state, prime for residential growth, it
The addition of Nevada brings the number
is fitting that Nevada is the newest addition
of states in the firm’s Western Region to four,
to our national footprint, and we look for-
Goor, one of the leading real estate sales
alongside California, Colorado and Texas.
ward to serving our community of clients in
executives in Southern Nevada, has joined
the state.”
Douglas Elliman. Dan-Goor and his team will be based out of the brokerage’s Las
“In the months since we began a new chapter as an independent, publicly traded company,
The company also announced that Avi Dan-
Vegas office.
Mill District Neighborhood in Downtown Healdsburg, California Starts Construction Replay Destinations announced the start of
neighborhood will include an exclusive col-
construction and the general contractor se-
lection of 43 residences with open-concept
lected to build the first phase of its 9.6-acre,
living spaces. The Weitz Company, one of the
master-planned Mill District neighborhood in
oldest engineering and construction compa-
downtown Healdsburg, California. Construc-
nies in the United States, has been selected
tion of the Olson Kundig-designed residenc-
to serve as general contractor for the first
es on the former Nu Forest Product lumber
phase of Mill District.
28 MANN REPORT | JUNE & JULY 2022
remaining from the original mill, including the drying kiln that has been used in recent
mill site began in May. The first residences of the $500 million new
Photo courtesy of PRNewswire
In the meantime, other workers will com-
years for community and charity fundraisers,
plete the removal of the last of the structures
cycling events, concerts and art installations.
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RESIDENTIAL NEWS
Corcoran Welcomes First Washington State Affiliate Corcoran Group LLC’s expansion continues
Coast footprint, and I’m thrilled that we’re
with its entrance into the State of Washing-
sharing in this milestone with Stephanie,
ton, with the launch of Corcoran Lifestyle
Keoki, and their very talented agents,” said
Properties, owned and led by Stephanie and
Pamela Liebman, President and CEO of The
Keoki McCarthy. Based in Bothell, Washing-
Corcoran Group. “The decision to enter Both-
ton, the firm serves the greater Seattle area
ell and the greater Seattle area was a very
years. Before starting their own firm in 2001,
from Snohomish to Thurston counties.
intentional and strategic one.”
McCarthy Real Estate, Stephanie McCarthy built her skillset in escrow, title, and mergers
“Establishing the brand in Washington State
Stephanie and Keoki McCarthy have been
and acquisitions. The two were formerly as-
is a pivotal moment in growing our West
involved in the industry for more than 20
sociated with Real Living Northwest Realtors.
Realtor.com Introduces Data on Homes’ Wildfire Risk Realtor.com announced that it is the first
and technology group, as well as informa-
major real estate site to add property-spe-
tion from the U.S. Department of Agriculture
cific wildfire risk information to for-sale and
Forest Service.
off-market homes free of cost. An estimated one in five single family homes in the U.S.,
According to a recent survey from realtor.com
representing $8.8 trillion in property value,
and HarrisX, 71% of recent homebuyers took
Users can acces data on interactive maps.
are at risk of being damaged by a wildfire
natural disasters into account when con-
In addition, the site’s listings now include an
over the next 30 years. Listings on realtor.
sidering a move. About half (47%) of recent
Environmental Risk section featuring an over-
com will now include a Fire Factor rating from
buyers are more concerned about natural
view of wildfire and flood risks. Wildfire risk
First Street Foundation, a nonprofit research
disasters today than they were five years ago.
data will be coming soon to rental properties.
Homebuyer Competition Drops Near City Centers, Zillow Reports For the first time since the Great Recession,
areas since July 2021. The typical home in
There are signs that demand may be shifting
buyers may have an easier time purchasing
the suburbs gained $66,490 in value in the
back in favor of urban homes. In each of
a home in the city than in nearby suburbs
past year, compared to $61,671 for the typical
the first three months of this year, the gap
this home shopping season. That’s because
urban home. That is a reversal from previous
between annual home value growth in the
homes in the suburbs recently have been
norms and from the first 15 months of the
suburbs and in urban areas has shrunk.
appreciating faster than urban homes, ac-
pandemic. From January 2013 — about the
cording to a Zillow analysis.
time when home values began to recover
Annual suburban home value growth out-
following the housing crash — through June
paced urban home value growth by about
Home values in suburban ZIP codes have
2021, urban homes were generally gaining
$7,250 in December, but only by about $4,820
been growing faster than those in urban
value more quickly.
in March.
30 MANN REPORT | JUNE & JULY 2022
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MANAGEMENT NEWS
Daroff Design Inc + DDI Architects PC Merges with Nelson Worldwide Award-winning architecture, design and
knowledge and geographic reach, will allow
strategy firm Nelson Worldwide has merged
the firm to expand and strengthen its ability
operations with Daroff Design Inc + DDI
to deliver exciting and emotionally connect-
Architects, PC (DDI), an award-winning, in-
ed experiences within the built environment,
ternationally recognized interior design and
the firm said.
John (Ozzie) Nelson Jr.
project portfolio across the workplace, hospitality, multifamily and public sector. DDI’s
architecture firm headquartered in Center City, Philadelphia.
Karen Daroff
Photos courtesy of Nelson Worlswide
Founded in Philadelphia in 1977, Nelson
most notable clients include Comcast, NBC
offers services that include architecture,
Universal, The Durst Organization, Vanguard,
DDI’s creative team, grounded in innovative
interior design, graphic design and brand
Disney, JetBlue, Loews Hotels, St. Regis, Ritz
thinking, combined with Nelson industry
strategy. DDI joins Nelson with an expansive
Carlton, PIDC, Sheetz and MGM Resorts.
Eos Hospitality to Manage Key West Resorts Eos Hospitality, a full-service hotel manage-
Boasting the largest pool in Key West, Ha-
ment company, has been selected to man-
vana Cabana Key West blends the art and
age Havana Cabana at Key West and Tran-
culture of Cuba with chic, tropical design
quility Bay Beachfront Hotel and Resort, in
elements throughout its 106 guest rooms.
Tranquility Bay Beachfront and Hotel
the Florida Keys. Both properties are owned
The hotel features classic cars out front, mo-
Photo courtesy of PRNewswire
by DiamondRock Hospitality Company, a real
jitos and music poolside and custom murals
is a waterfront property featuring a blend
estate investment trust with 33 premium ho-
throughout. Guests can discover authentic
of luxury accommodations, with 87 private
tels and resorts containing over 9,400 rooms
Cuban fare at the hotel’s Floridita Food Truck.
beach houses and 16 guestrooms. It is nestled in the heart of Marathon, Florida and
concentrated in gateway cities and destination resorts throughout the United States.
Tranquility Bay Beachfront Hotel and Resort
surrounded by the Gulf of Mexico.
Romer Debbas Forms Diverse, All-Woman Agency Lending and Affordable Housing Department Real estate and general practice law firm
Azevedo has primarily focused on the rep-
Romer Debbas LLP has formed a fully diverse,
resentation of commercial lenders, seller/
all-woman Agency Lending & Affordable
servicers and other financial institutions in
Housing Department. The practice is led by 20-
the financing of multifamily properties.
Carmen Pagan Catherine Azevedo Pamela U. Norbert Photos courtesy of Romer Debbas
year industry veteran and firm Partner Carmen I. Pagan Esq., a native of Puerto Rico, who is
Norbert shares a primary focus on represent-
her representation of a wide range of clients
joined by Senior Associate Catherine M. Azeve-
ing commercial lenders, seller/servicers and
from construction lenders, seller/servicers
do Esq., a second-generation Filipino-Amer-
other financial institutions in the financing of
and other financial institutions in all aspects
ican and Associate Pamela U. Norbert Esq., a
multifamily properties, also with an emphasis
of commercial lending with a focus on af-
first-generation Nigerian-American.
on affordable housing. Pagan is tenured in
fordable housing.
32 MANN REPORT | JUNE & JULY 2022
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MANAGEMENT NEWS
Schwartz Sladkus Reich Greenberg Atlas LLP Expands to South Florida New York City-based law firm Schwartz Slad-
areas including real estate, health care, not-
kus Reich Greenberg Atlas LLP will expand
for-profit, litigation, business and corporate,
to South Florida in a merger with Bresky Law
matrimonial and family law and trusts and es-
and Johnson, Ritchey & Feldman P.A. The
tates law. The South Florida office will focus
firm will continue to practice under the name
on appellate, matrimonial, family law, trusts
Schwartz Sladkus Reich Greenberg Atlas LLP
and estates, real estate, probate administra-
(SSRGA), and establish its Florida office at
tion and corporate law.
2424 North Federal Highway in Boca Raton. SSRGA is a full-service firm with practice
ida, handling criminal and civil appeals, administrative appeals and litigation support.
Since 2000, Bresky Law has become known
Johnson, Ritchey & Feldman P.A. is a matri-
for state and federal appellate work in Flor-
monial and family law firm.
Thurgood Marshall College Fund Partners with CBRE to Build More Diverse, Inclusive Talent Pipeline The Thurgood Marshall College Fund (TMCF),
TMCF has a history of success supporting near-
the largest organization exclusively representing
ly 300,000 students who attend HBCUs and
the Black College community, announced a
Predominantly Black Institutions (PBIs), the or-
new partnership with CBRE Group Inc. focused
ganization said. Since its founding in 1987, TMCF
on preparing students at Historically Black
has awarded over $300 million in scholarships
cation not only helps them succeed but also has
Colleges and Universities (HBCUs) for careers
for students and boasts a 90% graduation rate
a positive impact on their families and communi-
in commercial real estate. The partnership aims
for students in its programs.
ties,” said Harry L. Williams, TMCF president and CEO. “CBRE’s partnership with TMCF will help
to create a markedly more inclusive and diverse talent pipeline for the industry.
“Supporting students in achieving a higher edu-
HBCU students gain education.”
WNC Forms Preservation Equity Fund Advisors, Taps Caruana as President, CIO WNC, an affordable housing investment and
perience in the multifamily investment sector,
development firm has formed affiliate Preserva-
including nearly eight years specializing in
tion Equity Fund Advisors LLC (PEF Advisors),
underwriting and acquiring affordable rental
a registered investment advisory company
housing investments to create attractive eco-
committed to acquiring and preserving existing
nomic returns for investors.
affordable housing in high-cost markets. Ann Caruana has been appointed as president and
Caruana moves to president and CIO of PEF
chief investment officer (CIO) of PEF Advisors.
Advisors after three years as senior vice
Caruana has more than 19 years of direct ex-
34 MANN REPORT | JUNE & JULY 2022
Ann Caruana Photo courtesy of WNC
president of WNCs preservation equity funds
management teams. Prior to that, Caruana
where she oversaw the acquisition and asset
was with a private real estate equity firm.
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
Cresa Adds Igor to Its Smart Buildings Solutions Initiative Cresa Global and the Cresa New York Smart
workspace, including lighting, access control,
Buildings Solutions (SBS) team announced the
heating and cooling systems, occupancy sen-
addition of Igor Inc. to their SBS platform. Igor
sors, audio-visual equipment, window shades
is best known for its Nexos IoT platform, an
and more. All are focused on today’s worldwide
end-to-end IoT platform that connects office
sustainability initiatives.
devices and sensors through a digital ceiling. “Igor’s Nexos platform is a natural fit for our di-
James A. Pirot Photo courtesy of Cresa
The platform enables users to concurrently
verse program of office-focused IoT partners,”
Igor’s Nexos has been devised as a user-friend-
manage a multitude of different systems,
said James A. Pirot, managing principal at Cre-
ly system with dashboards and common-sense
sensors and equipment across a building or
sa and founder of the Cresa SBS platform.
commands to link a wide range of systems.
Dickson Realty Unveils Smart Tech Powered by Delta Media Dickson Realty, the top-ranked real estate com-
offices, Dickson Realty was founded in 1973.
pany in Reno-Sparks, Nevada, announced the debut of its next-generation “smart tech” from
“At Dickson Realty, we didn’t become the re-
Delta Media. The technology leverages artificial
gion’s go-to source for real estate expertise by
intelligence (AI) and automation to deliver more
sitting on our laurels, especially when it comes
market exposure for sellers and greater local real
to technology,” said Nancy Fennell, CEO of
estate market insight to buyers across northern
Dickson Realty. Realty websites will leverage AI and automation.
Nevada and northeastern California. Home to nearly 325 agents and 10 real estate
Nancy Fennell Photo courtesy of PRNewswire
Fueled by Delta Media, creators of an all-in-one
Dickson Realty will deliver local home search
technology marketing platform, new Dickson
experiences for consumers, the company said.
Pacaso Launches in Coastal New Jersey Pacaso, the technology-enabled real estate
escape in close proximity to many gateway
marketplace that helps people buy and co-
cities such as Philadelphia and New York
own a luxury second home, has expanded
City, and we’re excited to offer a new solution
its service to the New Jersey beach cities.
for people looking to purchase a second
Pacaso offers buyers the opportunity to co-
home here,” said Pacaso co-founder and
own one-eighth to one-half of a contempo-
CEO Austin Allison.
New Jersey listing is located in Avalon. The six-bedroom, eight-bathroom beach house
rary second home. Situated on a large corner lot one block from
is a new construction home with a private
“With 127 miles of coastline stretching from
7 Mile Beach and a short walk to the heart
pool, a cabana, two outdoor showers and a
north to south, the Jersey Shore is a beautiful
of a thriving shopping district, Pacaso’s first
wraparound deck with ocean views.
36 MANN REPORT | JUNE & JULY 2022
VISION has become
Availabilities from 12,712 RSF - 30,289 RSF Bold New Entrances & Retail Storefronts New Turnstiles for Touchless Entry Newly Renovated Lobby with Sleek Modern Design State-of-the-Art Facial Recognition at Select Turnstiles New Grab & Go Coffee Shop & Lounge Area New Touchless Destination Dispatch Elevators to Maximize Service Experience the Transformation as it Unfolds Peter S. Duncan I 212.481.1137 I pduncan@gcomfort.com Matt Coudert I 212.542.2121 I mcoudert@gcomfort.com Andrew F. Conrad I 212.542.2101 I aconrad@gcomfort.com
TECHTALK
Senara Secures Pre-Seed Funding to Launch Pre-construction Lead-to-close System Canadian proptech company Senara has
while spending less. The proprietary system
completed pre-seed funding, allowing it to
uses AI to generate new higher quality home-
continue its North American expansion. The
buyer leads, appointments and firm sales,
funds will also provide the company with
based on algorithms built from tens of mil-
additional revenue to enhance existing AI
lions of leads, appointments and purchase
capabilities within the platform.
datapoints, the company said.
Senara is a pre-construction lead-to-close
Senara offers predictive analytics algorithms
ultimately profitability. Additionally, Senara
system that empowers developers and their
that can be layered into any brokerage CRM.
offers regional homebuyer insights gathered
listing brokerages to sell smarter and faster,
Benefits of Senara include lead generation,
through its system.
Photo courtesy of PRNewswire
prospect nurturing, pipeline intelligence and
UL Partners with InSite to Advance Building Intelligence, Technology Integration and Performance UL, a global safety science leader, announced a
tion capabilities and operational insights to pro-
new partnership with InSite, a provider of build-
vide relevant advisory expertise, such as carbon
ing intelligence solutions that enable organi-
accounting and net zero carbon emissions.
zations to optimize performance of real estate assets, achieve sustainability goals and fulfill
With this partnership, InSite will provide building
environmental, social and governance (ESG)
owners and property managers with building
ergy and water audits, commissioning advisory
reporting requirements.
intelligence data to complement UL’s ESG advi-
services and sustainability certifications.
sory, sustainability and energy advisory, indoor As part of the UL and InSite combined offering,
environmental quality and field services. UL’s
The platform will support reporting and disclo-
UL will leverage InSite’s extensive data integra-
advisory services include services such as en-
sure of ESG and sustainability data.
Tech-focused Brokerage and Marketing Platform Verada Launches Verada, a commercial brokerage and tech-
Verada was founded by Brendan Thrapp, for-
nology-focused marketing platform servic-
merly managing director of EXR’s commer-
ing neighborhood retail, launched in May.
cial division and Nathaniel Mallon, a former
Verada combines content-based marketing,
commercial real estate director at EXR. The
market understanding, emerging technolo-
platform combines the founders’ web exper-
gies and an extensive media content library
tise with a personal touch.
Brendan Thrapp
Nathaniel Mallon Photos courtesy of Verada
sign, neighborhood videos and a blog that launched with over 60 pages of information.
to generate opportunities for landlords, tenants and neighborhoods while delivering a
It centralizes resources for tenants, such as
This also includes hundreds of hand-illus-
modern approach to the way the world per-
virtual tours for exclusive listings, interactive
trated prints and other self-made videos that
ceives retail real estate, the company said.
media, marketing decks, architecture, de-
help tenants navigate the retail marketplace.
38 MANN REPORT | JUNE & JULY 2022
Successful
partnerships are built on a foundation of trust. With more than 40 years of experience managing the most iconic residential properties in New York City, FirstService Residential serves as a trusted advisor to leading developers, building owners and board members – from pre-development through sponsor transition and ongoing management operations. Contact us to learn how we can make a difference for your property. MARC KOTLER SVP, New Development Group LetsTalk.NY@fsresidential.com www.fsresidential.com/new-york 212.634.5410
Photo credit: Giles Ashford
Scan the QR code to download our Developer Services brochure.
THE EVENTS BREAKING NEWS
20
22
NoMo SoHo Hotel Launches First The Jewish Museum 26th Annual Corenet Women’s Golf Outing Partners NFT With Hotel StayMost Experience Amazing New York Art & Design Tour
24
with Bees Trees Water
UJA-Federation of New York’s Hospitality Division Honors Ian Schrager
26
28
NoMo SoHo and its ownership, the global
neighborhood’s NoMo Kitchen restaurant
real estate and investment firm Sapir Corp
and cocktail bar Nina’s x Liquid Lab.
Ltd., have launched a curated non-fungible
23
token (NFT), making the hotel the first in
Using SolidBlock’s platform and technology,
the U.S. to offer guests an innovative way to
NFTstays (a selection of curated NFTs) are
The sleek, 26-story, 264-room NoMo SoHo,
NoMo SoHo. Guests booking these pack-
hotel. NFT options include The Lovewall in
managed by Highgate, is the tallest building
ages will have access to exclusive preferred
NoMo Kitchen and “The Tunnel of Love,” the
in the neighborhood, flaunts sweeping pan-
rates at competitive prices by purchasing
hotel’s archway at the main entrance. NFT
oramas of the city skyline and is home to the
an NFT depicting a recognizable part of the
packages start at 0.4 1 ETH ($836).
REBNY Hosts Annual Golf & Tennis Outing packaged CHIP’s 21st Annual Golf & Tennis Outing with three- to six-night stays at book stays using blockchain technology.
30
Century 21 Returns
Crohn’s & Colitis Foundation
COLLEGES
Local New York City retail legend Century
ruptcy and shuttered all of its locations in
21 is making a comeback, relaunching in
September 2020, citing a lack of payment on
Spring 2023 at its flagship location down-
its business interruption insurance (due to
town across from the World Trade Center.
enforced closing as a result of COVID-19) as
DEPARTMENTS
8
The retailer and purveyor of off-price luxury fashion have teamed up with global premium experiences company Legends to return to physical retail.
One Mann’s Opinion
10
a cause. The flagship had also been closed in 2001 as a result of the 9/11 attacks, but had received insurance payments at that time. “Century 21 is, and always will be, a New York
The chain, which at one point had 13 stores
Editor’s Letter City brand,” said Raymond Gindi, Century
in New York City and environs, filed for bank-
21 co-CEO. “Our flagship store has been a
80
FedEx Takes 2,276SF at 477 Madison Ave.
Tech Talk
86 The Articles
square feet of retail space at the newly repo-
in the building and its retail spaces signals
foot traffic and dense office community, but
110
from its location a few blocks to the west
Zinovoy of Newmark.
“FedEx chose this location not only for the
Having aRaymond Voice: Student Input Aids IG Design Gindi Gindi of Pratt Residence Photos courtesy of Century 21 long-time symbol of this city’s resilience and unwavering spirit. We could not be more excited to bring Century 21 back home.”
Executive Changes
combined with RFR’s significant investment
Midtown, announced Retail by Mona.
68
102
FedEx has signed a long-term lease for 2,276 sitioned 477 Madison Ave. office tower in
Photo courtesy of Business Wire 15th Annual Hamptons Happening Supports SWCRF
112
confidence in the future of the Midtown office market.”
Landlord RFR Realty was represented by a
Retail by Mona team led by Singer along withBy The Numbers: Commercial Corner: Michael Cody and Sara Armet. also for the building itself,” said Brandon Bruce Schanzer, president and FedEx OfficeMore than Warehouses wasofrepresented by Joshua Singer, CEO of Retail by Mona. “The move CEO Cedar Realty TrustStrauss and Scott
Bruce Schanzer 40 MANN REPORT | JUNE & JULY 2022
477 Madison Ave. Photo courtesy of RFR
Schulte Roth & Zabel’s Real Estate Group
TRUSTED ADVISERS ON DEALS THAT DEFINE THE MARKET COMPLETING BILLIONS OF DOLLARS IN TRANSACTIONS ANNUALLY FOR MANY OF THE MOST INFLUENTIAL PARTICIPANTS IN THE REAL ESTATE INDUSTRY
Schulte Roth & Zabel LLP New York | Washington DC | London www.srz.com The contents of these materials may constitute attorney advertising under the regulations of various jurisdictions.
BREAKING NEWS
Long Island Regional Planning Council designates JLL’s Midway Crossing a “Project of Regional Significance” The Long Island Regional Planning Coun-
the 2.7-million-square-foot development con-
tion would be connected via a walkable
cil, the region’s leading planning body, has
sists of medical research, healthcare, hotel
1,800-foot corridor, with Midway Crossing’s
designated JLL’s proposed Midway Crossing
and convention center, sports, entertainment
elements occupying 179 acres of under-used
development in Suffolk County, New York, a
and retail components. Midway Crossing
and undeveloped land mostly owned by the
“Project of Regional Significance.” The $2.8
also would create an intermodal, transporta-
town and the county. A true “train-to-plane
billion project is being developed in a pub-
tion-oriented hub, modernizing and moving
solution,” Midway Crossing leverages $15
lic-private partnership between the Town of
Long Island MacArthur Airport’s terminal to
billion-plus in investments in the MTA’s East
Islip, Suffolk County and JLL.
the property’s north side.
Side Access and Main Line Expansion projects to allow millions of New Yorkers to travel
Located in Ronkonkoma in the Town of Islip,
The airport and the Ronkonkoma LIRR Sta-
between New York City and the airport.
Marotta Controls Opens Second Facility in Parsippany Aerospace and defense supplier Marotta
solely out of its Montville location for more
Controls has opened a second facility locat-
than seven decades. The company has add-
ed in Parsippany, New Jersey. The company
ed more than 200 members to its employee
Marotta Controls
will retain its Montville, New Jersey build-
base. Its solutions in markets outside its leg-
Photo by Business Wire
ings, using the freed-up space to expand its
acy valve offerings are shifting from develop-
production capacity, development labs and
ment phase to volume production, creating
functions — including the engineering,
testing facilities.
the need for exponentially more manufactur-
human resources, program management,
ing and assembling capacity on site.
marketing and finance departments— will relocate to the Parsippany address, which
The move is driven by a significant growth across Marotta Controls, which has operated
The company’s executive and main business
spans 50,000 square feet.
Skyview On the Hudson Taps Akam for Property Management Skyview On the Hudson has appointed
a three-tower complex located at 5700,
“Riverdale is the ultimate balance between
Akam as its new property management team.
5800 and 5900 Arlington Ave. and several
urban and suburban living. We look forward
Akam, a residential property management
other prestigious properties in the area.
to bringing our boutique sensibility with big
company serving New York and South Flori-
These new additions join Akam’s existing
capabilities to these incredible communities,
da, is now the top choice in management for
Riverdale buildings.
and further enhancing them with services that combine the best of both worlds.”
properties within the Bronx neighborhood of Riverdale, the firm announced.
“Akam is elevating the bar for property management, recognized for our hospitality-driv-
Akam’s portfolio consists of over 60,000
New Riverdale properties now under man-
en approach service which is unique for this
re s i d e n t i a l u n i t s s p a n n i n g 3 0 0 - p l u s
agement include Skyview On The Hudson,
industry,” said Michael Rogoff, president.
premier buildings.
42 MANN REPORT | JUNE & JULY 2022
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COVER STORY
RICS' Goal: Making Buildings Perform for People Worldwide By Debra Hazel
R
and best practices.”
eal estate, like politics, may be local — but there are a number of issues that have become a global
That was one factor behind the creation of
concern, including sustainability,
IBOS, which was intended to support organi-
supply and labor issues and returning people
zations in attracting people back to the work-
to the office after COVID-19.
place, by delivering confidence for end-users that the building they’re in is supporting
Ann Gray, CEO of Gray Real Estate Advisors,
their wellness, and benchmarking success
now serves as president of RICS (formerly
against driving down the commercial sector’s
the Royal Institute of Chartered Surveyors),
carbon footprint.
which recently launched the International The standard, which is supported by com-
Building Operation Standard (IBOS), a new, data-based approach to measuring and man-
Ann Gray
mercial and public sector organizations as well as service providers and existing certi-
aging how buildings perform for people, especially in a new era when flexibility is key. It
“You can start to measure the impact you’re
fications such as Well and Wired, is the first
builds upon traditional building performance
having on carbon before you put a shovel
of its kind globally to deliver a consistent
assessments to include user experience to
in the ground,” she said. “These are huge
approach to help organizations assess and
satisfy the needs of occupiers, investors, ad-
trends and they’re not going away.”
improve their building’s performance in such a broad way, RICS said. It will provide data on
visors and end-users. In fact, she observed, climate change is
buildings with people at the center of future
“There’s a real recognition now that sus-
posing an existential threat to the survival of
decision-making and help embed ESG into
tainable investing has a higher return,” Gray
entire nations.
real estate strategy.
majority of people in our profession are con-
“One of the things that excites me is what’s
Many organizations already monitor their
sidering sustainability when they participate
growing out of COP 26 [the 2021 United Na-
properties’ performance, including how
in a project. That’s a positive trend. The data
tions Climate Change Conference]. It started
sustainable a building is. But according to
is there.”
as governments getting together to discuss
respondents to the RICS Global Commercial
fighting emissions and climate with some
Property Monitor, only 79% of America’s re-
That’s why RICS is among 50 professional
kind of consistency,” she said. “What’s really
spondents believed that there are currently
organizations worldwide that have a created
emerged from that is a body of shared global
techniques and practices in place to measure
carbon standard for embedded and emitting
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.
said. “All of our surveys are showing that a
46 MANN REPORT | JUNE & JULY 2022
COVER STORY
Also, while there is plenty of research on how
be used,” said Patrick Turner, chief technol-
fewer large companies, which have stock-
people and buildings interact, data from the
ogy officer of engineering for Acuto, in the
piled construction materials due to supply
same survey shows that 81% of US and 86%
announcement. “IBOS does just this and is a
chain issues that linger after the pandemic.
of Canadian respondents are seeing a rising
foundational step for the sector to fully lever-
Land banking is also taking place. As a re-
demand for more flexible workspaces. As
age data in the years to come — ultimately to
sult, smaller builders are struggling.
property use changes, and the importance of
drive better performance in buildings wheth-
a healthy work-life balance increases, there
er for people, the planet or finances.”
is a growing gap in measuring how a build-
“Real estate was always kind of an odd, democratic process; all different kinds of people
ing impacts people’s wellbeing and how to
But climate is just one of many global issues
used their talent and ingenuity to meet mar-
attract people back to the workplace, where
that Gray will consider during her term as
ket demand whenever and wherever it was
it is beneficial.
president. Others are not so positive — yet.
needed,” Gray said. “It was a ragtag democ-
“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
benefits in buildings. However, as the defi-
the concentration of wealth in fewer hands,”
challenges in getting materials and labor that
nition of building performance evolves and
she said.
there is a massive unfair advantage to a few
racy. With the pandemic, there has been such
expands it is vital that there is a robust frame-
players. 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.”
JUNE & JULY 2022 | MANN REPORT 47
COVER STORY FEATURES
RICS' Goal: Making Buildings Perform for People Worldwide By Debra Hazel
R
and best practices.”
eal estate, like politics, may be local — but there are a number of issues that have become a global
That was one factor behind the creation of
concern, including sustainability,
IBOS, which was intended to support organi-
supply and labor issues and returning people
zations in attracting people back to the work-
to the office after COVID-19.
place, by delivering confidence for end-users that the building they’re in is supporting
Economic trauma oftenReal will Estate lead toAdvisors, consoliAnn Gray, CEO of Gray dation, as smaller, weakerofcompanies can’t now serves as president RICS (formerly
of constraints on what people can enter what
with laws,and globalization can success provide their local wellness, benchmarking
trades,” Gray related. “In the United States,
invaluable bestdown practices to the industry, against driving the commercial sector’s
survive and are acquired, she observed. And the Royal Institute of Chartered Surveyors), that is taking place now. the International which recently launched
the unions have always created the appren-
especially for smaller countries that lack apcarbon footprint.
ticeships. Those structures don’t exist quite
praisal standards and therefore don’t attract
Building Operation Standard (IBOS), a new, “The wealthapproach gap, eventoinmeasuring the property data-based andsector, man-
as formally in other parts of the world.”
as much investment. The standard, which is supported by com-
Ann Gray
mercial and public sector organizations as
is growing,” she said.perform for people, esaging how buildings
Globalization can offer extraordinary oppor-
“What me to RICS the ideacertiof a well asattracted service providers andisexisting
pecially in a new era when flexibility is key. It That isupon exacerbated by the supply chain builds traditional building performance
tunities. of an RICS member who “You canGray startspoke to measure the impact you’re
worldwide professional ethicWired, that we fications such as Well and is all thework first
specialized in mapping having on carbon beforeand youdata put aanalysis shovel
to: transparency, standardized of its kind globally to deliver a appraisals, consistent
issues that plague the industry worldwide. assessments to include user experience to It takes time to make the materials needed, satisfy the needs of occupiers, investors, ad-
and was hired byshe the World Health Organizain the ground,” said. “These are huge
avoiding and money laundering, approachcorruption to help organizations assess and
tion to and mapthey’re the spread of theaway.” Ebola virus so trends not going
these kinds ofbuilding’s things thatperformance surround theinpropimprove their such
including and mining the ore. visors andfinding end-users.
medical professionals could stop it. In addi-
erty business everywhere,” Gray said. data on a broad way, RICS said. It will provide
tion to his own skillset, heclimate had to learn about In fact, she observed, change is
buildings with people at the center of future
“It’s going to be a slow process to ease “There’s a real recognition now that susthings out,” she said. tainable investing has a higher return,” Gray
infectious achieve his survival goal. That posing an diseases existentialtothreat to the of
These standards have decision-making andlong-ranging help embed economESG into
portability of skills is what excites Gray about entire nations.
ic effects. real estateCountries strategy. without a strict appraisal
said. “All of our surveys are showing that a Developing professionals to join theare industry majority of people in our profession con-
the real estate industry, she said.
standard don’t have the tax dollars to solve
“One of the things that excites me is what’s
housing and sanitationalready crises, she observed. Many organizations monitor their
also is asustainability global issuewhen that will time to sidering theytake participate resolve. TheThat’s causes of the shortage the in a project. a positive trend. Theindata
“You can out be facilities manager in United the U.S.Naor growing of COP 26 [the 2021
properties’ performance, including how
Paris the Change jobs look roughly theIt same,” tions and Climate Conference]. started
“A lot of that acomes fromis.that sustainable building Butfaithfulness according to to
U.S. vary from retiring senior professionals is there.”
Gray said. “Mapping in Colorado Kenya as governments getting togetheror toindiscuss
abide by a settoofthe rules, including intellectual respondents RICS Global Commercial
and what many believe is an overemphasis
is probably roughly the There’s flexfighting emissions andsame. climate with asome
capital in developing anti-money laundering, Property Monitor, only 79% of America’s re-
on college vs. trade school. ElseThat’s why education RICS is among 50 professional
ibility creativity. There are“What’s no silosreally like kind ofand consistency,” she said.
whistleblowing standards and spondents believed that there arevaluation currently
where in the world, shortages are aoccurring organizations worldwide that have created
there usedfrom to be. It’sisaablast, I encourage emerged that body and of shared global
standards. seems like ainhigh-falutin’, pietechniques Itand practices place to measure
for otherstandard reasons.for embedded and emitting carbon
young people pursue thinking abouttohow we it.” tackle these issues.
in-the-sky concept, but itofactually makes a the environmental impact buildings. Those
carbon, she said.
It’s thrilling to see that sharing of knowledge
difference in people’s everyday lives. That that are in place need further development.
“For example, in India, they have other kinds
So while individual properties must contend
excites me.”
48 MANN REPORT | JUNE & JULY 2022
COVER STORY
2 1 0 0
A T T O R N E Y S
|
4 1
L O C A T I O N S
W O R L D W I D E˚
Helping clients identify opportunity and manage risk. With five decades of business-driven legal experience and more than 60 real estate lawyers serving the New York real estate market.
Also, while there is plenty of research on how
be used,” said Patrick Turner, chief technol-
fewer large companies, which have stock-
people and buildings interact, data from the
ogy officer of engineering for Acuto, in the
piled construction materials due to supply
same survey shows that 81% of US and 86%
announcement. “IBOS does just this and is a
chain issues that linger after the pandemic.
of Canadian respondents are seeing a rising
foundational step for the sector to fully lever-
Land banking is also taking place. As a re-
demand for more flexible workspaces. As
age data in the years to come — ultimately to
sult, smaller builders are struggling.
property use changes, and the importance of
drive better performance in buildings wheth-
a healthy work-life balance increases, there
er for people, the planet or finances.”
“Real estate was always kind of an odd, dem-
is a growing gap in measuring how a build-
ocratic process; all different kinds of people
ing impacts people’s wellbeing and how to
But climate is just one of many global issues
used their talent and ingenuity to meet mar-
attract people back to the workplace, where
that Gray will consider during her term as
ket demand whenever and wherever it was
it is beneficial.
president. Others are not so positive — yet.
needed,” Gray said. “It was a ragtag democ-
“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
benefits in buildings. However, as the defi-
the concentration of wealth in fewer hands,”
challenges in getting materials and labor that
nition of building performance evolves and
she said.
there is a massive unfair advantage to a few
racy. With the pandemic, there has been such
expands it is vital that there is a robust frame-
players. 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 Greenberg Traurig, LLP | MetLife Building | 200 Park Avenue | New York, NY 10166 | 212.801.9200 considered and the corresponding data to the industry has consolidated wealth among when we really need it somewhere else.”
G R E E N B E RG
T R A U R I G ,
L L P
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AT TO R N E YS
AT
L AW
|
W W W.GT L AW.CO M
The hiring of a lawyer is an important decision and should not be based solely upon advertisements. Before you decide, ask us to send you free written information about our qualifications and our experience. Prior results do not guarantee a similar outcome. Greenberg Traurig is a service mark and trade name of Greenberg Traurig, LLP and Greenberg Traurig, P.A. ©2019 Greenberg Traurig, LLP. Attorneys at Law. All rights reserved. Attorney advertising. Contact: Robert J. Ivanhoe, in New York at 212.801.9200. °These numbers are subject to fluctuation. Images in this advertisement do not depict Greenberg Traurig attorneys, clients, staff or facilities. 32969
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FEATURES
Ask the Expert: Gemma Burgess on Diversifying Real Estate By Debra Hazel
I
t’s no secret that real estate is an in-
We helped them set up their first diversity
dustry that’s slow to change — and
initiative, where organizations could sign to
that includes diversifying its members
help promote ethnicity across the industry.
in terms of race, ethnicity and gender
In gender, we’re making good steps forward.
to better reflect the world at large. But diver-
There are still areas in seniority that we lack
sity, equity and inclusion (DEI) is finally an
— often, when people have families, they
issue that’s coming to the forefront, one that
leave. Sometimes they come back, some-
Gemma Burgess, newly promoted president
times they don’t. Ethnicity is getting up there.
of global talent management firm Ferguson
But there are other things, [such as] the LG-
Partners is determined to pursue.
BTQ+ conversation. For me, a part is income diversity, bringing people into the industry who aren’t rich kids whose families were also
Burgess joined Ferguson Partners in 2007 and has developed a global acumen, origi-
Gemma Burgess
in real estate. If you grow up in a less affluent neighborhood, you might not even know
nally based in the firm’s London office, and then transitioning to oversee its New York
see that on public company boards. Across
City office before taking on responsibility
organizations, it would be very unusual to find
for the U.S. search business and then, most
organizations without women leadership at
Even for us at Ferguson Partners, this is the
recently, the global search business. Burgess
all. The interesting thing is how we continue to
first year we’ve set up our own analysts pro-
was responsible for creating the inaugural
evolve that conversation.
gram. We’ve done recruiting from community
what a career could look like in real estate.
colleges in Chicago to get those kids who
diversity partnership in 2020 with the Real Estate Executive Council (REEC); she contin-
We’ve been very focused on ethnicity diversity
didn’t grow up with an Ivy League education
ues to be an active participant with the asso-
across the U.S. Even as we’ve started to make
and need an opportunity to grow and build
ciation. Below, she talks about the growing
great progress on the gender piece, for me it was
their career, and don’t look like I do.
attention being paid to DEI. The conversation
really shocking how white the real estate industry
has been edited for clarity and length.
is and continues to be. I’ve personally made it a
At this point, the industry has no choice but to
mission to see what we could do to help with the
evolve. And the things that motivate people
Has the real estate industry had the wake-
ethnicity piece. We got introduced to REEC [Real
today are very different from two years ago and
up call regarding DEI?
Estate Executive Council] and I went to its spring
very different from 20 years ago. People don’t
We’re doing better than we were previously. In
conference five years ago. I was probably one
want to stay at the same job for life. Kids want
the 15 years I’ve served the real estate industry
of the only white people in the room, and it was
to trade jobs every two years, and rightly so;
on a global basis, there’s a lot more gender di-
awesome to sit and hear the programming and to
they want different experiences and different
versity than there used to be. You can certainly
be part of the process.
things. The industry has to get its arms around
52 MANN REPORT | JUNE & JULY 2022
MANAGEMENT
the change in human capital and their feelings
sity study survey with associations around the
Serena sold me this dream: come to real
and thoughts to continue staffing; otherwise,
world, and we started with defining diversity. In
estate, it’s much more fun, and it’s different.
you’re going to continue to have hundreds of
Asia, you might be talking more purely about
It was refreshing. With the global financial
vacancies at different firms.
gender diversity. In London, gender diversity
crisis, I thought, “What have I done? I’ve just
is very much still part of the conversation, but
joined an industry that’s blown up the capital
Are some sectors better than others?
in the U.S., particularly after Black Lives Matter,
markets of the globe.”
Some parts of the industry are just more di-
ethnicity is definitely part of the conversation.
verse anyhow by either gender or ethnicity.
But what started as a disaster became the
Where you need a pipeline of profession-
Have we been making progress?
opportunity. I became the person who went
als and your industry is still very white and
We’re definitely making progress at the top.
back and forth to the U.S. clients and then go
male-dominated, is where you go to indus-
The boardroom has been more diverse than
back to Europe and help them hire people
tries that are already more diverse. If you’re
ever before. And you say that change has to
on the ground. The U.S. got back to business
trying go hire a lawyer, accountant, tech
start at the top and be pushed down from
so quickly and the European capital markets
person, HR person, go to industries that are
the top. And we’re making progress in junior
were in such disarray with nonperforming
much more diverse and make those diverse
ranks. Where there is a problem, and will be
loans and distressed debt.
hires. It may not be by sector, but by function.
for a long time, is in mid-level to senior lead-
Some are going to take more time. Construc-
ership roles. The pool you’re fishing in is just
I was doing this work across the Atlantic and
tion work will take a long time for that to be
not very diverse to begin with. That’s where
in 2013, when I was two weeks back from
truly diverse by gender, for example.
I say that you have to go to other industries
maternity leave, Bill asked me to run the New
that have been more diverse.
York office. He gave me up to a year to make
How early must you start?
the move.
Historically, firms have talked about campus
You can’t just recruit from Ivy League colleges
recruiting from university. What is interesting
anymore, and you can’t just hire someone
How does an individual company get
now is that a lot of organizations are doing
who’s had one job for 10 years because you’re
started on diversity?
high school outreach. To get people to think
just not going to have a pool to begin with.
There are a lot of resources. The big asso-
about a degree that would be helpful in the
What firms now are doing for the first time is
ciations, like NAREIT and ICSC have affinity
real estate world, you have to get them earli-
breaking down a role to the skills you need
groups and diversity initiatives. I would start
er. What we can do better is to try to join the
rather than the experiences you have. You want
there. At this point, at least people realize that
dots from all the different jobs in real estate,
someone who thinks differently, who looks
everyone has got an issue, and it’s okay to
from investment management to construc-
differently, who challenges differently. When
say, “We have a problem, and we need help.”
tion to development to property manage-
you add that different industry knowledge, your
Just have the conversations. That’s when you
ment. We have to educate these kids that
real estate becomes better because you have
can start getting some change.
there is a place for everybody in real estate.
different perspectives in the room. Overall, how is the health of the industry?
We’re trying to recruit a number of clients to put together some programming where we
What brought you to Ferguson Partners?
It’s a very exciting time for real estate, with all
can educate interns on what other programs
Fifteen years ago, I worked with Serena
of the changes happening — baby boomers
are doing to build a library of different indus-
Althaus, who runs Ferguson’s European
retiring, younger people coming into organ-
tries and roles in real estate.
business. I worked at a firm that did board
izations, technology and DEI and ESG initia-
placements and Serena was the only person
tives. It’s an exciting time to be in real estate
How is the U.S. faring compared with oth-
who did real estate. Serena got recruited by
and the human capital part of real estate.
er parts of the world?
Bill [Ferguson] to open the first international
There’s a lot of change and change creates
Diversity is different things in different parts
office when global capital was becoming a
opportunity. I’m excited to see the industry
of the world; we’re not even talking with one
real opportunity for American firms to put
focus on these important initiatives like DEI
common voice. We did a massive global diver-
boots on the ground in London.
and see some changes.
JUNE & JULY 2022 | MANN REPORT 53
FEATURES
A Mid-year Look at Commercial, Multifamily Real Estate Finance By Troy Marek
I
Troy Marek
f there’s one word to describe busi-
In April, however, MBA adjusted its com-
Drilling down deeper, not all commercial as-
nesses and the overall economy
mercial and multifamily lending forecasts for
set classes share the same finance outlook
over the last two years, it would be
2022, citing the shifting economic and inter-
as multifamily. For example, the health of the
“resilient.” Despite uncertainties, U.S.
est rate outlook. MBA expectations are that
office sector remains unpredictable. The
economic growth was still strong in the first
commercial and multifamily lending will hold
“work-from-home” effects of the pandemic
quarter. At the same time, the near certainty
steady at a projected $895 billion in 2022,
are yet to be fully realized. Many companies
of higher interest rates calls for prudent plan-
roughly in line with 2021’s $891 billion. Mul-
are using hybrid or fully remote models,
ning in the commercial real estate sector.
tifamily lending, which is included in these
downsizing or fully jettisoning their office
There is also the backdrop of the conflict
figures, is expected to dip to $418 billion this
space, Trepp reported. In February, MBA
between Russia and Ukraine and gas prices
year, down from 2021’s estimated $470 billion.
noted a 122% year-over-year increase in the
that remain significantly elevated.
However, MBA still considers this multifamily
dollar volume of office loans. As of April, the
expectation robust and anticipates borrow-
office sector encompassed 4,907 loans at
Despite all this, the economy in March add-
ing and lending to grow in 2023 to nearly $950
a total balance of $197.66 billion, with urban
ed 413,000 jobs and the unemployment
billion of total commercial lending, with $442
offices comprising 71% or 2,592 loans at a
rate dipped to 3.6%, a decline of 0.2%. This
billion in multifamily lending part of this total
$140.36 billion balance. Lenders today are
unique set of variables has contributed to
expectation. MBA notes that, even with rising
evaluating office transactions based on lo-
a shift in the year’s commercial real estate
interest rates likely to impact lending volumes
cations, both pre- and post-pandemic tenant
finance outlook, according to Trepp’s April
this year, healthy property values and fun-
stability, tenant creditworthiness and lease
2022 monthly report.
damentals should support the markets and
rolls during the loan terms.
maintain commercial real estate mortgage In February, the Mortgage Bankers Associa-
demand at strong levels.
tion (MBA) released a report on commercial
In the retail sector, supply chain bottlenecks, a continued increase in online shopping
and multifamily mortgage originations for the
“If the pandemic proved anything, it was that
and higher costs due to inflation are all ar-
fourth quarter of 2021. The report pointed to
rental housing is essential,” said Ed Hussey,
eas to watch; however, COVID-19-related
the quarter as a record end to a record year
head of conventional agency lending at Sabal
shutdowns no longer keep customers from
of lending. MBA’s numbers demonstrated a
Capital Partners. “Lenders remain bullish on
entering stores. Per the MBA, retail deliv-
79% increase in originations year-over-year
multifamily and are committed to financing it.
ered a year-over-year increase, from 2020 to
and a 44% increase over the previous quar-
Properties that serve the country’s workforce
2021, of 109% in the dollar volume of loans.
ter. Rebounding property fundamentals, re-
and lower-income earners remain top targets
Likewise, Trepp’s Year-End 2021 report found
cord sale transaction volume and low interest
for lenders as demand continues to surge for
annual retail property loan delinquency rates
rates were among reasons cited for the jump.
these units amidst lackluster supply.”
declined; however, it also noted a significant
54 MANN REPORT | JUNE & JULY 2022
COMMERCIAL
drop in CMBS loan activity, demonstrating
hit 16%, and the direct vacancy rate was
family lending is expected to remain strong
that lenders remain cool and cautious on
just 3.4%, according to CBRE’s 2022 North
throughout the year despite inflation, interest
this sector.
America Industrial Big Box Review & Outlook.
rate hikes and other concerns. However, bor-
Newer buildings with state-of-the-art systems
rowers are likely to find that lenders are more
Industrial real estate continues to shine. 2021
continue to be the most sought-after proper-
enthusiastic to participate in transactions
represented the second consecutive year
ties, though older product has also benefited
within asset classes demonstrating contin-
that the North American industrial and logis-
from favorable market dynamics. The year-
ued demand. Additionally, with rates increas-
tics market reported record performance,
over-year increase in industrial loans by
ing, borrowers have likely found they need to
attributed to strong economic growth, size-
dollar volume was 113%, per the MBA. Today,
bring more equity to their deals.
able job gains and increased retail sales. To
lenders continue to favor industrial and distri-
address the surge in online consumer activity,
bution facility assets. Consequently, compe-
Troy Marek is head of real estate capital mar-
increase safety stock and limit the impact of
tition for loans is robust among portfolio and
kets for Regions Bank and leads Sabal Capital
supply chain disruptions, occupiers leased
capital markets lenders alike.
Partners LLC, a wholly owned subsidiary of
an unprecedented amount of space — a total of 450 million square feet. Annual rent growth
Regions Bank and national commercial and Generally speaking, commercial and multi-
multifamily real estate lender. sabal.com.
JUNE & JULY 2022 | MANN REPORT 55
FEATURES
Rockaway Beach Welcomes Women’s Heath Facility The facility brings much-needed health services to the Rockaways.
R
ockaway Beach has long been a playground for New York
way Beach Blvd. in Rockaway Park, New York, is so important. Devel-
City, with surf, sand and, at one time, an amusement park.
oped by St. John’s parent Episcopal Health Services and CHA Partners,
But the densely populated peninsula has long lacked
the state-of-the-art facility, part of the new Rockaway Beach Medical
sufficient medical facilities. The region (and neighboring
Arts Complex, offers top-quality medical care in a modern setting to a
communities in adjacent Nassau County) is served by St. John’s Epis-
medically underserved area in Rockaway Beach.
copal Hospital, a 257-bed building providing preventive, diagnostic, treatment and rehabilitative services.
“Since our inception, CHA has remained focused on filling the void for medical and healthcare services where they are needed most, and
That’s why the opening of the Margaret O. Carpenter Women’s Health
the opening of the Margaret O. Carpenter Women’s Health Center will
Center, the first-of-its-kind specialty medical facility at 105-20 Rocka-
mark a new day for patients in the Rockaway Beach region,” said CHA’s
56 MANN REPORT | JUNE & JULY 2022
COMMERCIAL
State-of-the-art equipment is available.
The complex was conceived after Peninsula Hospital closed in 2012.
Managing Partner William J. Colgan. “We are thrilled to stand alongside
CHA Partners conceived of the Rockaway Beach Medical Arts Com-
executives from St. John’s and all of the key stakeholders who made the
plex to meet the demand for local healthcare created when the region’s
completion of this project and opening of this facility a reality.”
Peninsula Hospital closed after Hurricane Sandy in 2012. NYCEDC helped support the project with $9 million New Markets Tax Credit
The Margaret O. Carpenter Women’s Health Center will provide gyne-
(NMTC) financing in collaboration with Chase Community Develop-
cological and obstetrical care with a wide array of women’s healthcare
ment Bank. The NMTC program is a federal funding program designed
sub-specialty services in one location including: maternal fetal medi-
to encourage investment in underserved areas of the city.
cine, urogynecology, gynecology oncology, breast surgery, nutrition and behavioral health. State-of-the-art equipment including two 3D
“This is an important milestone in Rockaway’s recovery from
mammography machines, a bone density machine and ultrasound
COVID-19, as we advance Mayor Adams’ commitment to providing
machine will also be available to the community.
community healthcare in neighborhoods most impacted by the pandemic,” said New York City Economic Development Corpora-
“The goal for the Women's Health Center is to improve and maintain
tion President and CEO Andrew Kimball. “NYCEDC is proud to have
the health of women to prevent a decline in health and the need to
supported the development of the Rockaway Beach Medical Arts
be hospitalized in the future,” said Jerry Walsh, chief executive officer
Complex, which will house the Margaret O. Carpenter Women’s
of Episcopal Health Services. “The lack of accessibility to healthcare
Health Center and offer lifesaving, affordable preventative care to
services is evident in the fact that the Rockaway community sees a
Rockaway residents.”
higher rate of pregnant women who seek late or no prenatal care when compared to the overall New York City rate. By creating this Women’s
“We’d like to extend a special thank you to the NYCEDC for sharing in
Center in the community, we are improving access to women’s health
our vision for this project and providing the tax incentives that led to
services in Rockaway.”
the opening of this facility, which will serve the community for many years to come,” said Kobi S. Leifer, partner at CHA Partners.
The Rockaway Beach Medical Arts Complex, which was completed in 2019, reintroduces high-quality, community-based healthcare services
Additional tenants at the Rockaway Beach Medical Arts Complex in-
to the Queens neighborhood. With a wide range of on-site services,
clude MercyFirst Children and Family Care and the Ambulatory Surgery
Rockaway residents will now have access to a wide range of health-
Center of Rockaway Beach. The medical center will provide healthcare
care services other than the Women’s Center, including primary care,
services for approximately 5,000 community members annually.
dermatology, endocrinology, physical therapy, behavioral health, cardiology, neurology, general surgery and cancer care.
Photos by Dominick Totino Photography
JUNE & JULY 2022 | MANN REPORT 57
FEATURES
Nuveen Real Estate Launches Global Impact Investing Sector
N
uveen Real Estate has launched
the U.S., Europe and APAC in identifying and
a comprehensive global impact
pursuing relevant real estate impact invest-
investing sector that will focus on
ments, while growing the overall sector. Set-
building the vitality and sustaina-
tles will also continue to lead investments as head of the New York office.
bility of entire communities by enriching the lives of their residents.
Pamela West brings 25 years of industry experience, of which nearly a decade has been
The new global real estate sector will provide strategies that address some of the most
address some of the most pressing challeng-
dedicated to deploying capital into affordable
pressing social and environmental challeng-
es in local real estate across the globe, while
housing strategies and addressing social
es in the U.S., Europe and the Asia-Pacif-
creating an avenue for investors to have a
and environmental issues. She will continue
ic region (APAC), supporting growth goals
significant impact. ”
to oversee the framework’s strategy, portfolio construction and client relationships.
of up to $15 billion in real estate assets under management by 2026.
The new real estate impact sector will invest in early-stage projects and take an
In April, the firm launched the German liv-
Specifically, the mandate is designed to im-
impact-led approach to increase the supply
ing impact platform to deliver social and
prove communities by providing supportive
of social and affordable housing by targeting
environmental impact through affordable
services, enhancing residents’ quality of
low-income and disadvantaged popula-
housing. Nuveen also recently closed its first
life and financial outcomes and ensuring
tions, while also focusing on regeneration
global private equity impact platform, which
affordable, sustainable and climate safe
projects within healthcare, education and
targets investments that promote energy
housing, while supporting Nuveen’s commit-
transportation services.
efficiency and an expansion of services for underserved communities.
ment to making its global property portfolio net zero carbon by 2040. Nadir Settles will
“By leveraging Nuveen Real Estate’s in-
serve as global head of impact investing
dustry expertise, we are going beyond just
“We have been very intentional about bridg-
and Pamela West as senior portfolio manag-
affordable housing to focus our attention on
ing our core competency in real estate with
er, impact investing.
community revitalization,” Settles said. “We
community impact,” West said. “Our portfolio
see an immediate opportunity to scale our
is dedicated to creating change by placing
“We are competitively positioned to deliver a
strategy and leverage our leading position in
environmental and social impact at the heart
market-leading sector globally and at scale,”
the industry to support tenant well-being and
of our investment strategy, which ultimately
said Chris McGibbon, Nuveen global head of
create a more sustainable future.”
drives better outcomes for residents and inclusive communities while delivering a
real estate. “Under Nadir and Pamela’s leadership, I am confident that this new sector will
58 MANN REPORT | JUNE & JULY 2022
Settles will lead an international team across
healthy financial return.”
Fried Frank Where major real estate transactions happen “An extremely talented real estate group with an impressively deep bench: the team is ideal for handling the most complex matters.” — Chambers USA
HUDSON YARDS Counsel to Related Companies and Oxford Properties Group in connection with the development of and all leasing activities at the 26-acre Hudson Yards on the West Side, the largest private development in Manhattan since Rockefeller Center. CHELSEA MARKET Counsel to Google in connection with its US$2.4 billion acquisition of Chelsea Market in New York City. BLACKROCK HEADQUARTERS Counsel to BlackRock in its 850,000square-foot lease for its planned headquarters relocation to 50 Hudson Yards.
MANHATTAN WEST Counsel to Brookfield Property Partners on all aspects of the development of Manhattan West in the Hudson Yards District, including its recent lease to the National Hockey League. PENN STATION Counsel to Vornado Realty Trust and Related Companies on the redevelopment of Penn Station, including the redevelopment of the James A. Farley building and construction of Moynihan Train Hall. CENTRAL PARK TOWER Counsel to J.P. Morgan, as lead lender, in its US$900 million construction loan syndication to Extell Development for the development of Central Park Tower.
New York | Washington, DC | London | Frankfurt | friedfrank.com Attorney Advertising. Prior results do not guarantee a similar outcome.
ONE VANDERBILT Counsel to SL Green Realty Corp., including all zoning approvals, in connection with the development and leasing of One Vanderbilt Avenue, an iconic 1,401-foot tall, 1.7 million square foot office tower being constructed on the full block to the west of Grand Central Terminal. 20 TIMES SQUARE Counsel to Maefield Development in its approximately US$1.5 billion acquisition of the EDITION hotel, retail, and signage project known as 20 Times Square. JP MORGAN CHASE HEADQUARTERS Counsel to JP Morgan Chase in connection with various aspects of its planned 2.5-million-square-foot headquarters redevelopment at its 270 Park Avenue location.
E XQU I S I T E R E S I DE NC E S DE S IGN E D BY S T U DIO SOF I E L D Beckford House & Tower, a breathtaking collection of one to six bedroom condominium residences designed by award-winning design firm Studio Sofield. Each residence is a celebration of craftsmanship, grand spaces and exquisite detailing, with a curated selection of amenities that enhances every lifestyle. Priced from $2m to over $25m . beckfordresidences.com . 212-535-8081
A N T IC I PAT E D OCC U PA NC Y Beckford House Spring 2020 . Beckford Tower Fall 2020
The complete offering terms are in an offering plan available from Sponsor. Sponsor: 301 East 80th Realty LLC or 1562/1564 Second Realty LLC, 419 Lafayette Street, 5th floor, New York, New York 10003. File no. CD18-0149 or File no. CD18-0150. The artist representations and interior decorations, finishes, appliances and furnishings are provided for illustrative purposes only. All dimensions and ceiling heights are approximate. Equal housing opportunity.
Honoring The Prep for Prep Class of 2022 and Eric Rothfeld, CEO, REI Capital, LLC JUNE 14, 2022 New York Marriott Marquis Cocktails 6:30 PM Dinner 7:30 PM Details at prepforprep.org/lilacball
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FEATURES
It's Time to Re-imagine Private Markets Alex Robinson
By Alex Robinson, CEO and founder, Juniper Square
the very nature of private partnerships that underpin them. Sponsors of private investment funds today face technological and operational challenges that threaten their ability to build lasting private partnerships. Even as investor and employee expectations for access and visibility to data are rising, the processes and tools needed to enable the efficient and effective flow of information between partners in a private partnership have not kept pace. Today, more than ever, general partners (GPs) must modernize their partnerships by leveraging data and systems to maximize outcomes for their investors, their investments and their business.
A
The Challenge with Private Partnerships ccording to McKinsey, private
fraction of the $100 trillion in professionally
Like any relationship, thriving investment
equity accounted for $9.8 trillion
managed assets worldwide.
partnerships rely on mutual trust and empowerment — built over the course of many
in assets under management globally in 2021, with fundraising
reaching dizzying heights of $1.2 trillion up
What stands in the way of broader participa-
interactions. But GPs and limited partners
tion in private markets?
(LPs) often fall short of fully optimizing their exchanges because they lack systems for
20% year-on-year. Yet, despite blistering growth, private markets still represent a small
64 MANN REPORT | JUNE & JULY 2022
The problem isn’t markets themselves — it’s
shared visibility and workflow. The lack of
MANAGEMENT
modern systems manifests itself across three
pectations for accessibility, communication
key areas of the partnership:
and transparency continue to rise. Deliver-
insights that fuel business growth.
ing this type of experience requires shared
Transparent, Seamless Administration
Inadequate Experiences for LPs: Tradi-
visibility and workflow around partnership
The use of technology shouldn’t be con-
tional methods of investor communications
details, enabled through an interactive,
strained to the four walls of a GP’s of-
and reporting that fall short of investor ex-
on-demand portal. Investors should be able
fice. Third-party administration providers
pectations through over-reliance on manual
to easily view account-wide returns, drill in
must be connected through technology
efforts and static documents.
and view the performance of specific funds
to deliver exceptional experiences for in-
or assets and update subscription or pay-
vestors. Yet only 24% of GPs report that the
ment details, all with the click of a button.
investor experience is a focal point of their
○
○
Disjointed and Time-consuming Oper-
ations for GPs: Teams that struggle to deliver a consistent and high-quality experience for
administrators’ offerings and 43% say their
investors because of siloed data, processes
Building Partnerships that Scale
administrators are not focused on it at all. The
and systems.
Forward-thinking GPs understand that
concern doesn’t end with the LP experience
Opaque and Disconnected Adminis-
delivering an exceptional investor experi-
— administrators can often create data silos
tration: Outsourced fund accounting and
○
ence requires more than a portal. It requires
of their own, limiting information sharing with-
investor services that add to data silos create
enabling teams with the data, systems and
in the GP organization and stifling growth.
unnecessary back-and-forth and limit the
processes to manage that experience across
flow of information to investors.
the lifecycle of a partnership. And making
To save sponsors time without adding to
these investments delivers increasing returns
operational overhead in other ways, adminis-
Addressing each of these areas requires a
to scale — with sponsors that consistently
tration needs to be modernized. Accounting
new approach, one that puts a single, shared
increase technology investment each year
workflows must be seamlessly integrated
view of the partnership at the heart of digital
reporting they are more likely to exceed cap-
with the GP’s operations to support a single
processes and tools. By creating a universal
ital raising and acquisition goals than those
view of the partnership across fundrais-
system for partnership enablement, GPs
who do not.
ing, investor on-boarding and investor
can re-imagine the experience for investors,
relations. More importantly, accounting
scale their operations and deliver transparent
But not all technology is created equally. GPs
outcomes need to be delivered in more inno-
and trusted administration outcomes.
need purpose-built systems that deliver a
vative formats, offering full transparency into
consistent and complete view of partnership
the capital balance as well as the ability for
Re-imagining the LP Experience
data to every team that touches investors.
LPs to view and understand the details in an
Increasingly GPs are realizing that the inves-
For example, customer relationship man-
intuitive, on-demand portal.
tor experience is central to growth. In a re-
agement (CRM) that supports fundraising
cent Juniper Square survey, sponsors report
efforts should incorporate details on investor
Modernizing Private Partnerships
that a great investor experience prompts
positions, returns and preferences. The in-
The potential for capital flows into private
more repeat business (86%), more referrals
vestor onboarding experience should flow
equity is many times greater than the market
(83%) and larger investment commitments
seamlessly and digitally from the moment
today, but digital evolution will be necessary
(62%). Despite this, many GPs today contin-
prospects enters a data room to the mo-
to reach that potential. In the face of techno-
ue to rely on portals that serve only as a re-
ment where they view their investments in
logical and operational challenges, GPs need
pository for static and incomplete PDFs and
a portal. The tools used to generate notices
to re-imagine the partnership experience, for
don’t enable investors to self-manage the
and statements must connect investment
LPs, for their teams and for their administra-
basics of their account or payment details.
data consistently with the information seen
tors. GPs that modernize through a holistic ap-
by investors in the portal and fundraisers in
proach to partnership enablement — ground-
As investors are increasingly exposed to
their CRM. And finally, the fundraising and
ed in universal systems and shared data will
interfacing with the public markets and their
investment data you collect should be easily
lead and succeed, realizing outsized growth
brokers through digital applications, their ex-
aggregated across these tools to provide
and delivering outsized impact for investors.
JUNE & JULY 2022 | MANN REPORT 65
FEATURES
Modular Proves Viable for Multifamily:
Ideal Scenarios for Affordable and Market-rate Builds By David Amundson and John Kately
M
Dave Amundson Project executive C.W. Driver Companies
ultifamily is in high demand,
John Kately Project executive C.W. Driver Companies
Modular saves time and money.
from both the investor and consumer standpoint. Sales are back to pre-pandemic
levels as investors leverage low interest rates and are buoyed by rent increases and low vacancy rates. Renters, especially those seeking affordable or workforce housing, are limited in options, and new supply is greatly needed. In order to close the housing gap in California, 3.5 million homes need to be built between 2020 and 2025. Apart from high land cost and zoning restrictions, current supply chain issues, rising material costs and labor shortages are pushing interest in alternative construction methods. At first glance, volumetric modular construc-
C.W. Driver Companies, a premier builder
ular construction firms, the team has been
tion offers many benefits, including speed
serving California since 1919, has been at
able to conduct a benefit analysis and apply
to market, cost savings and predictability.
the forefront of modular construction, laying
the methodologies to current and upcoming
However, developers remain hesitant and
the groundwork to instill confidence in the
builds. With the efficiencies that come from
risk-averse due to the method’s infancy, es-
delivery method. By conducting in-depth in-
the assembly-line prefabrication, modular
pecially in Southern California.
terviews with national and international mod-
has the potential to skyrocket into a major
66 MANN REPORT | JUNE & JULY 2022
MANAGEMENT
Hope on Hyde amenities include a roof deck.
player over the next decade.
cally sized downtown Los Angeles, California
dential over the concrete podium. It included
site with minimal demolition requirements.
four floorplans (junior, one-bedroom and
Optimization Studies
two-bedroom/two bath), with a varying num-
Thought leaders at C.W. Driver Cos. created
The results were favorable. The affordable
ber of units on each level. Amenities includ-
two award-winning case studies to demon-
housing case study accounted for seven sto-
ed pools on multiple levels, a courtyard and a
strate the potential time and cost savings for
ries of residential over the concrete podium
roof deck. The speed-to-market was reduced
both an affordable and market-rate scenario.
level. The design maximized efficiencies with
by 27%, reducing the construction schedule
The studies were a collaboration with Opti-
154 one-bedroom units with 22 on each floor
from 22 months to 16 months. Cost savings
mum Modular Solutions, Englekirk, Steinberg
and basic amenity spaces. Cost savings in
were 13% ($92.6 million vs. $106 million), and
Hart and KTGY. The team prepared a concep-
this scenario were 13% ($29.6 million vs. $34.2
the revenue captured from the compressed
tual design, rough order of magnitude (ROM)
million) with speed-to-market savings at 25%
schedule was over $4 million.
budget and schedule for both a steel volu-
(down to 12 months from 16 months for a
metric modular system and a conventional
conventional build.) The revenue captured
Both case studies proved that in an ideal sce-
Type III construction in order to compare
by saving four months from the compressed
nario, significant time and cost savings can
and contrast the details. Both case studies
construction schedule would have exceeded
be realized through modular construction.
assumed the use of double-loaded corridor
$1 million.
Looking more closely at reality and taking
modules, concrete cores utilized to carry
into consideration current limitations, the
lateral loads, prefabricated roof modules and
The market-rate housing case study was
real benefits lie in speed-to-market, enabling
a portion of the exterior façade system in-
developed for the “missing middle” demo-
developers to start earning revenue several
stalled on site. Onsite costs, building codes
graphic rather than the usual luxury complex-
months sooner on rents. Cost savings come
and seismic requirements assumed a typi-
es. This design allowed for six stories of resi-
from about a 20% reduction in prevailing
JUNE & JULY 2022 | MANN REPORT 67
FEATURES
Hope on Hyde.
GOLF CLASSIC
wage costs, but that is usually canceled out by shipping costs. Projects in Progress
Modular construction has been utilized to address the need for transitional housing and support Los Angeles’ chronically homeless. Developed by Aedis Real Estate Group, Hope on Hyde Park is a 60,000 square-foot,
BENEFITING NATIONAL JEWISH HEALTH
five-story residential community located on a 0.49-acre site. The building is constructed
comprised of 184-steel modular units for 96 apartments. All furniture, fixtures and
MONDAY, design that includes contemporary furniture MAY 4 and floor-to-ceiling windows. Completing in equipment are installed offsite with a modern
2020
from locally fabricated building units and
EL CABALLERO COUNTRY CLUB Tarzana, California
summer 2022, the project’s goal is to serve as
made upfront, rather than midway through
a replicable model that helps deliver housing
construction. Still considered by many to be
quicker and more efficiently to communities
in its infancy, builders and manufacturers are
erations can be optimized for efficiency and
in need.
pushing the boundaries, developing lessons
ensure a smooth project flow.
manufacturer. By integrating the roles from
the outset, SERVICES design, manufacturing and opLOS ANGELES REAL ESTATE AND FINANCIAL
2020 COMMITTEE
learned and evolving the process to maxi-
Anthony Behrstock mize the efficiencies and benefits. C.W. Driver Cos. is also in the preconCommonwealth Land aand Title struction phase of Third & Spring Street,
Co-Chair
220,160-square-foot, mixed-use project in
David Sonnenblick Preconstruction can make or break a modu-
Sonnenblick-Eichner lar project, and it’sCompany the role of the contractor
Co-Chair
The most important piece of advice is to
to set up the coordination, logistics, sched-
downtown Los Angeles. At 15 stories, this Eberly determine modular as the typeLionetti of construcZach Brandler Charles Fred
ule, cost control, utilities coordination and Michael Rosenblum
volumetric modular can do. The residential
value to the job.
Douglas Elliman Estate for whatThe Eberly Company Business Broker and Consultant Rosenblum Law Officeand bring project pushes theReal boundaries steel tion from the project outset rather than work phasing to ensure smooth delivery
Jonathan Canter
backward to adjust a conventional build to
Ronald Friedman
Jeff Mann
Todd Sherman
portion will include 266 one-bedroom and LLP meet the constraints of Mann modular once the JP Morgan Securities Marcum Publications 65 two-bedroom market-rate units, with 37 project has begun. The modular design and
Not every project is suitable for modular
units reserved for very low-income house-
building design need to be done in tandem,
construction, and it’s important to take site
Eric Nelson portion that opens around an internal,William open- Levinson the factory while the building’s site utilities
storage of modular units and the space for a
sky courtyard, in addition to retail space and
and foundation are being constructed at
crane into consideration. However, with the
23,500 square feet of open amenity space.
the site.
right team in place and a thorough assess-
Steven Cohen
Carrie Jenkins
Deborah Medway
First Pacific Financial
Paul Stern
Real Estate Investment and Triumph Business Capital Commonwealth Land Title Guggenheim Commercial Real holds. The design also Principal calls for a U-shaped as the units of the project are being built in location, transportation, weather Operational Exec and Estate Finance, LLC conditions, Carlton Fields
Rimrock Real Estate Ventures
ment of the opportunity, modular can deliver Reserve your foursome or sponsorship today at labreathoflifegolfclassic.org Similarly, the developer should assemble a the benefits of speed-to-market, predictaor contact Steven Prawat at 818.905.1300 or PrawatS@njhealth.org. The modular approach requires a mentality disciplined and experienced team that inbility and quality control, making it a viable Lessons from the Field
shift as many of the decisions need to be
cludes the architect, contractor and modular
option we will see more of in the future. Photos by Jun Tang Photography
68 MANN REPORT | JUNE & JULY 2022
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FEATURES
A Middle East Pearl: Four Seasons and Q Bayraq Real Estate Investments Announce Luxury Development in Doha
The property is situated on a private beach.
An indoor lap pool is among many amenities.
eading luxury hospitality company Four Seasons Hotels and
“As Four Seasons continues to grow and diversify its develop-
Resorts continues to expand its diverse offering of hotels,
ment pipeline in the Middle East, we are proud to be part of The
resorts and residences in the Middle East with the announce-
Pearl-Qatar development, an innovative project that will perfectly
ment of a new project currently under construction in The
complement our existing hotel in the city,” said Bart Carnahan,
Pearl-Qatar landmark development in Doha. The new property is in
president of Global Business Development and Portfolio Man-
partnership with Q Bayraq Real Estate Investments, a specialized
agement, Four Seasons Hotels and Resorts. “Four Seasons at The
real estate investment development company focused on high-end
Pearl-Qatar offers a unique opportunity to be part of a community
projects in Qatar.
of residents and guests enjoying incredible on-site amenities
L
and the unparalleled luxury service for which our company is Situated on a private beach and surrounded by lushly landscaped gar-
renowned worldwide.”
dens and pools, the 19-story building will offer resort-style luxury living in the heart of the city. Available for short and long-term stays, 161 fully
All accommodations will be fully serviced by a dedicated Four Sea-
furnished apartments ranging from one to three bedrooms will feature
sons team, creating an ideal base for doing business in Doha, or for
full kitchens, en suite laundry and expansive living areas including
vacationers seeking a resort experience with easy access to all the city
outdoor terraces, all finished by Wimberly Interiors with bespoke de-
has to offer, the companies said. Private residence owners will enjoy
tails throughout. In addition, 84 private residences will be available
enhanced privacy and exclusivity while having complete access to the
for purchase.
property's services and amenities.
72 MANN REPORT | JUNE & JULY 2022
RESIDENTIAL
Expansive living areas sport amazing views.
Residences boast up to three bedrooms.
The hotel is an ideal base to explore Doha.
The development has five restaruants and bars.
The development will feature five restaurants and bars, including a signa-
Cairo and Dubai. Born in Tunisia and educated in Switzerland at the
ture dining experience by Michelin-starred Chef Joël Robuchon; a well-
prestigious École Hôtelière de Lausanne, he speaks English, French,
ness center with spa and salon, fitness studio and indoor lap pool; a su-
Arabic and Spanish.
pervised indoor/outdoor kids club; a private screening room with an open kitchen, an outdoor terrace, two outdoor pools (one adult and one for families) and a private beach, all managed and serviced by Four Seasons.
After a slowdown during COVID-19, the residential real estate market in the country has seen a surge of activity in 2022, largely due to additional demand being generated by the FIFA World Cup, which will be
In addition to the on-site amenities, Four Seasons guests and resi-
held from November 21 through December 18, as well as an increase
dents will be within walking distance of numerous restaurants, bars,
in Freehold Zones, which allow non-Qataris to purchase property.
shopping, cinemas and other entertainments in the immediate area. For those arriving by water or wishing to explore, The Pearl-Qatar is
This new project will join the existing Four Seasons hotel in the city,
also home to many marinas.
Four Seasons Hotel Doha, along with the growing collection of properties in the Middle East, including the upcoming Four Seasons Private
Veteran hotelier Mehdi Zaanoun has been appointed general manager
Residences Dubai at Jumeirah, Four Seasons Hotel Diriyah, Saudi
of the Four Seasons at The Pearl-Qatar. Most recently general manag-
Arabia, and the recently announced Four Seasons Resort and Private
er of Four Seasons Hotel Casablanca, Zaanoun began his Four Sea-
Residences Muscat, Oman.
sons career 20 years ago at Four Seasons Hotel George V, Paris before pursuing opportunities with several leading hospitality brands in Paris,
Photos courtesy of PRNewswire
JUNE & JULY 2022 | MANN REPORT 73
FEATURES
AI and The Doorway By Merilee A. Kern, MBA
I
t’s projected that by 2025, there will be a total of 291.2 million digital buyers in the United States, Statista notes. The organization also reports that by the same year, more than 10% of all retail sales in America are expected to be generated via mobile commerce.
Merilee Kern Forbes Business Council Newsweek Expert Forum and Rolling Stone Culture Council Member Merilee Kern, MBA is an internationally regarded brand strategist and analyst who reports on cultural shifts and trends as well as noteworthy industry changemakers, movers, shakers and innovators across all categories, both B2C and B2B. She is founder, executive editor and producer of “The Luxe List” as well as host of the “Savvy Living” lifestyle TV show and the “Savvy Ventures” business TV show that airs nationally on Fox Business TV and Bloomberg TV.
With this exponential digital retail growth comes a litany of problems. Of course, there are pitfalls a plenty on the infrastructure and supply chain side, but it is delivery security that has one inventor frothed up. Ron Carter, a tech savant who holds the patent for the Ring smart video doorbell technology (and that for many other video doorbell companies), has again created and patented entry management technology intended to safeguard the burgeoning e-commerce economy. The timing could not be better or the need more clear. The signifcance of new developments in the home delivery package protection space cannot be overstated, especially as one considers study findings published by Safewise in December 2021. The results revealed that around
Deliveries can be left inside the home.
210 million packages disappeared from porches across America over the prior 12-month period. Disconcertingly, the study also exposed
Alarm Force, HeathCo/Zenith, Chamberlain, Live Watch Security and
that “package theft happens even when you have security measures in
Zmodo — I caught up with him for some fresh insight.
place,” citing that “58% of recent package theft victims reported using a security camera or video doorbell camera.”
Merilee Kern: How would you describe Glo and its usefulness? Ron Carter: In addition to capturing video, the Glo AI device creates
It’s clear that “porch pirating” is escalating to a level that’s become a
a new category referred to as “entry management,” as opposed to se-
bona fide challenge for e-commerce sales. Carter and his 100% mi-
curity. The system utilizes a sophisticated AI-driven device that may be
nority-owned company 1Ahead Technologies looks to rectify this cir-
integrated with smart mailboxes, smart locks, e-commerce logistics
cumstance with Glo, a first-generation Artificial Intelligence (AI) entry
and endless other smart devices.
management technology introduced at the 2022 Consumer Electronics Show (CES) in Las Vegas.
Overall, Glo AI can recognize delivery personnel, record their actions, allow them to leave packages in a smart box or monitored area, open
Knowing Carter is responsible for much of the current video surveil-
the door and enable access via a smart lock, record messages, pro-
lance doorbell industry — with some of his previous patents licensed
vide logistics to the delivery person, read images that act as keys, ag-
by household-name companies beyond Ring, like CPI Securities,
gregate data and more.
74 MANN REPORT | JUNE & JULY 2022
RESIDENTIAL
MK: The Glo AI entry management device is supported by “VALT” technology. Can you elaborate on that? RC: Yes, VALT is an acronym for “Virtual Access and Logistics Technology” and is our patented platform that enables Glo to offer such unparalleled capabilities. It’s a first-generation AI technology designed to provide e-commerce security, access control and management, e-commerce logistics support and a security response that surpasses the current marketplace offerings of ineffective video notifications and alarms. AI expands the video doorbell’s utility.
VALT represents a very secure and effective way to address access
MK: What’s the origin story for your new company? What in your
and logistics at the fraction of the cost of personnel, physical keys
career led you here?
and related expenses. Mobile devices are inherently secure be-
RC: I am the inventor of patent #7,193,644, which involves wireless vid-
cause of the associated IP address and biometric access feature on
eo doorbell surveillance tech. After assigning the patents to the prior
locked devices.
company, I lost control of the company in 2017. The original patent was conceived to offer convenience to homeowners, providing the ability
The core features of VALT make everyday transactions more managea-
of seeing someone at a door via mobile device. The patent offered
ble in support of streamlined communications and access options for
some security benefits. However, the technology was initially primarily
merchants, customers and property owners.
designed to offer convenience. Today, the video doorbell industry markets video doorbells for security purposes primarily but, as a security
This technology offers commanding potential to solve logistics-relat-
product, video doorbells offer very little in the way of threat mitigation.
ed issues in the e-commerce industry and beyond. In fact, VALT technology impacts other vertical markets beyond residential/consumer
Additionally, I saw an opportunity to shift the notion of “security” to one of
benefits such as corporate/commercial facility access, real estate,
“entry management.” I was able to add a robust upgrade through the addition
property management and property exchanges like Airbnb. We’ve filed
of Artificial Intelligence, which offers unlimited capabilities. Our technology
continuation applications to further expand VALT's capabilities across
employs computer learning and logic, which enables the ability to provide
industries and sectors.
event-specific logistics: networkable keys, utilizing images and photos that can be transmitted via mobile devices — all of which is encrypted so that they
MK: Is it a subscription-based platform?
cannot be duplicated or forwarded. Our company was also recently award-
RC: Yes, the VALT application is membership-based and functional
ed additional patents with more advanced features that we look forward to
within a network of individual and business subscribers, facilitating
announcing in the near future. This elevated iteration of our Glo product fea-
two-way communication and oversight for end users experiencing
turing VALT technology will offer consumers an even better response and en-
transactions. Glo technology will likely retire many current video door-
hanced capabilities. Our solutions will supersede static video doorbells with
bells, although the solution will be priced comparably to current video
a far more advanced and responsive technology to address today’s breed of
doorbell devices.
challenges and those ever evolving.
MK: In your estimation, how pervasive is the porch
A critical moment in time for online commerce is upon us, and inno-
pirating problem?
vative machine learning driven solutions can resolve the urgent need
RC: At best, it’s frustrating for consumers and costly for merchants. We
to maximize security, logistics support and access capabilities for
stand today at a critical moment for online commerce, where innova-
end users amid the modern in-demand marketplace. For the e-comm
tive solutions are urgently needed more than ever to provide security,
industry and end consumers alike, it seems Carter’s industry disruptor
logistics support and access in assisting merchants and end-users to
Glo just might just be the ingenious AI way to go.
mitigate loss. Glo offers an effective response.
Product photos courtesy of Ron Carter
JUNE & JULY 2022 | MANN REPORT 75
FEATURES
Daewoo Offers First Metaverse Application in Korea Property Market
I
Photo courtesy of PRNewswire
ntroducing the first metaverse application for the South Korea property market, Ubitus K.K., a Japan-based graphics processing unit (GPU) virtualization
technology and cloud streaming platform, has worked with telecommunications company KT Corp. and Daewoo E&C, a Korean real estate developer, to launch Daewoo Prugio Metagallery, an interactive online house tour service. The ability to reach potential customers with just one browser link without them visiting the showroom should generate more interest and buying opportunities and realize more sales quickly. Daewoo Prugio Metagal-
After Daewoo set up the apartment 3D model
utilizing technology and their knowledge in
lery allows potential customers to browse
in game engine with the HDRP (high-defi-
construction. It is our pleasure to work with KT
each property, virtually walking through the
nition render pipeline) feature, Ubitus used
and support Daewoo Prugio Metagallery. We
property to understand the layout, views
patented Gamecloud technology to cloudify
believe this cutting-edge project will greatly
and flows, without physically visiting the
and stream the model that enable visitors
assist property touring and simulate interests
showroom. While the physical showroom
to visit Daewoo Prugio Metagallery in a
in the long run,” said Wesley Kuo, Ubitus CEO.
usually showcases just one property lay-
360-degree view across devices from laptop,
out of the entire project, Daewoo Prugio
mobile to tablet. The finished Daewoo Prugio
Founded in 1973, Daewoo E&C has been
Metagallery can demonstrate every single
Metagallery was ready to run on KT’s existing
dominant in the construction industry in
property layout on offer, allowing customers
cloud gaming infrastructure. More metaverse
South Korea, including the development
to experience the layout and attributes of
applications in different industry domains,
of its Prugio premium apartment complex
their most interests. With the option of pro-
following similar development and deploy-
brand, the first in the country to introduce
jecting furniture and appliances in Daewoo
ment cycles, should be expected.
sustainability to apartment complexes. Its urban redevelopment projects Prugio Summit
Prugio Metagallery, customers can feel confident that what they see is what they get, the
“As an innovator in the market, Daewoo has
projects can be found in major areas includ-
companies said.
been dedicated in smart home for years by
ing Seocho, Banpo and Yongsan in Seoul.
76 MANN REPORT | JUNE & JULY 2022
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FEATURES
ESG 1.0 vs. ESG 2.0 By Connell McGill
Connell McGill co-founder and CEO of Enertiv
A
s the real estate industry re-
everything from the way their products are
companies, private property funds, devel-
sponds to pressure from inside
made to how they are packaged and deliv-
opers and investors — is increasing rapidly.
and out to take environmental,
ered. Even major oil and gas companies are
Ten years ago, this level of commitment to
social and governance issues
investing heavily in renewable energies. But
sustainability, social responsibility and gov-
what about the real estate industry?
ernance were only for a few. Now, it’s for the
(ESG) seriously, property firms are setting
many, as investors are judged for their ethics,
increasingly ambitious ESG goals. But the data used to set these goals is insufficient to
Encouragingly (and while there is still plenty
as well as financial results.
drive meaningful action. How do firms move
of work to be done), there is lots of evidence
from simple measurement and disclosure to
to suggest that the real estate industry is fully
What’s abundantly clear is that whether
actually improving outcomes?
aware of the importance of ESG factors on
or not individual real estate companies
the way it builds, invests and operates. Many
and leaders are as passionate as Gen Z,
Over the last 10 years, the growing realization
major real estate companies and brands are
ESG is now a fundamental part of strategic
of humanity’s obligation to protect the world
leading the way in applying ESG standards,
decision-making within the industry. What’s
we live in has started to shape the outlook of
setting the tone for the rest of the industry.
also true is that progress differs from com-
almost every developed economy. Spurred
Whether it’s developing greener buildings
pany to company. Commitment to ESG is
by a growing understanding of how global
(the “e” bit), tackling social imbalances
very much on a broad spectrum. While the
warming is impacting the world around us
through greater provision of affordable hous-
vast majority of real estate players recognize
and championed by a passionate Gen Z,
ing or care centers (the “s” bit), it’s rare to
its importance, many are still trying to work
more and more people see climate change
find a company that hasn’t committed to ESG
out exactly what it means to implement a
as the biggest existential threat facing
standards in its long-term strategy.
meaningful commitment to ESG as part of their day-to-day operations. As owners and
humanity today. Importantly, investors are also bringing their
operators are increasingly held accountable
Lawmakers, businesses and citizens are all
weight to bear by ensuring they invest re-
for their environmental and social impact,
responding accordingly, making significant
sponsibly and not purely for financial gain.
how can they evolve from measurement and
changes in a bid to be more sustainable
The fact is, what money says matters a lot.
disclosure to a clearly defined plan of action?
and environmentally conscious. Across the
The ESG stance taken by BlackRock, for ex-
We believe that the simple answer is for most
United States, cities like New York, Boston
ample, has seemingly shifted the investment
companies to move from ESG 1.0 to ESG 2.0.
and Los Angeles are taking matters into their
community overnight. Participation in the
own hands and passing laws designed to
Global Real Estate Sustainability Benchmark
ESG 1.0 is the first step most real estate own-
reduce carbon emissions at both a corporate
(GRESB) real estate assessment — the
ers and operators have taken to demonstrate
and individual level. When it comes to busi-
investor-driven global ESG benchmark
commitment to sustainability. What does this
ness, industries like retail are thinking about
and reporting framework for listed property
look like in practice? Broadly speaking, ESG Headshot courtesy of Enertiv
78 MANN REPORT | JUNE & JULY 2022
TECHNOLOGY
1.0 is essentially the work of centralizing util-
both in terms of the time frame and of the
across day-to-day operations ultimately re-
ity consumption data, either through brute
components that make up that high-level
sults in meaningful outcomes when it comes
force (manual processes) or using software
consumption. What’s needed is transparency
to sustainability and ESG. ESG 2.0 is all about
(automated processes). Once the data has
into the three primary drivers of consump-
truly actionable insights.
been centralized and visualized, it can then
tion: tenant usage, common equipment us-
be used to benchmark a portfolio or build-
age and the performance of on-site staff. It’s
The reality is that for the last 18 months, the
ings against each other, as well as against
this granular level of detail and insight that
commercial real estate industry has been
the wider industry. This is often done through
ultimately drives actionable change.
scrambling to get its ESG reporting in place.
reporting frameworks like Energy Star and GRESB. But ESG 1.0 doesn’t go far enough.
The baseline expectation is that investors, For example, granular data for common
owners and operators take their environmen-
equipment usage can be analyzed to drive
tal, social and governance responsibilities
Now that companies have submitted their
greater efficiency by making changes to the
seriously. In a bid to meet those expecta-
utility data for several years, they have access
way it’s used, or perhaps even creating a
tions, quarterly reporting has naturally led to
to a bank of data, which provides a baseline
data-driven capital plan for upgrading equip-
ESG goal setting and the need for clear plans
from which they can measure. Using that
ment over time. Another example may be the
of action to deliver meaningful outcomes.
baseline, they have been able to set clear
use of modern tenant submetering to provide
ESG 1.0 may have helped in setting targets,
ESG targets, such as becoming net zero by
better transparency into usage. In turn, this
but ESG 2.0 will help the industry deliver on
2050. ESG 1.0 may help set the goals, but
information can then be used to help sup-
them. Embracing technology to access gran-
ESG 2.0 helps companies to achieve those
port tenants’ own ESG initiatives, as well as
ular insights from boardroom to boiler room
goals. ESG 2.0 helps companies get from
influence the behaviors of their workforce at
is absolutely vital in both measuring and
their baseline to meet the ambitious change
an individual level.
improving ESG performance. Those that do
targets they’ve set. Monthly utility bills are not granular enough,
will set themselves on a path to achieving the Having access to granular data that identifies
environmental goals they have committed
where meaningful changes can be made
themselves to.
JUNE & JULY 2022 | MANN REPORT 79
FEATURES
Real Estate is Flagged for Digital Disruption Within the Next Decade Mac Christian Chief marketing officer of National Land Realty, a real estate land brokerage
By Mac Christian
A
s the transport truck pulls away with your old car loaded up, your new automobile sits in your driveway, ready to drive. This transaction was driven
by an industry worth $51.04 billion in 2021, which is slated to grow to $204.94 billion by 2028 (according to Fortune Business Insights). Nowadays, people can merely download an app, enter information to value their current car, select their automobile of choice, click a few buttons and an exchange transaction for a new car has been initiated. The question we keep hearing in the real estate industry is, “When can I buy my house this way?” We first saw disruption in the service industry
into a catchall for this type of disruption, and
through the financial sector. E-Trade, founded
real estate is squarely in the crosshairs.
in 1982, was one of the first companies of its
public does not. In the past, this knowledge was a guarded
kind to take hold of the financial industry. At
The reason that real estate is such a hot topic
secret that was as opaque as the paint on your
first, this business model seemed to be some-
in the world of e-commerce is easy to see.
walls. Consumers were forced into a position
thing of a novelty, but that opinion quickly
Real estate, much like the financial and au-
of trust that left many feeling fleeced or kept
changed. Today, nearly all investments and
tomobile industries, relies on service profes-
in the dark. Commissions in the auto, financial
bank transactions can occur online without
sionals to facilitate the purchase of a product.
and real estate industries have traditionally
interaction with a banker or financial advisor.
These professionals act as consultants who
been challenging to understand. Service pro-
Even the act of portfolio balancing has been
traditionally take a commission for their part in
fessionals have been flagged as notorious be-
automated with robo-bankers introduced into
the process. Service professionals are relied
cause of a few bad actors. Finally, the answer
the mix. This is just one small piece of the “dig-
upon to have a depth of knowledge regarding
has been apparent: eliminate the middleman,
ital transformation,” a phrase that has turned
the product they work with that the general
remove high commissions for the consumer
80 MANN REPORT | JUNE & JULY 2022
TECHNOLOGY
and make the product easier to purchase. The Path Toward Real Estate
fool you. That is more a result of market un-
businesses in specific geographic locations,
predictability. These innovators are far from
tax laws, traffic patterns and land values.
retired, and they will eventually find a solution.
There are opportunities for disruption here
Digital Transformation
and industry leaders in the commercial sector,
The complexity of the product is one of
How Digital Transformation Looks Today
such as CoStar Group and Crexi, are making
the most common defenses against digital
Many pieces are currently in place for a digital
moves in technology, but there has been very
transformation in the real estate industry.
transformation of real estate, accelerated by
little in terms of a viable automated solution.
This is a valid defense because real estate is
the COVID-19 pandemic. 3D photography
enormously complex and is often the most
allows consumers to tour a home on the other
Rural land has also proven to be highly insu-
important purchase people can make during
side of the globe. You no longer need step
lated from automation. One might need to
their lifetimes. Shopping is stressful. Inspec-
foot into a house to walk through it, and buy-
find hunting parcels, ranches, farms, timber
tions must be performed, negotiations must
ers can even complete the inspection process
investments or simply land for recreational
take place and it is often difficult to assess the
from a distance. Undeveloped land can also
use in this sector. Rural land is so complex,
quality of real estate until you walk inside for a
be toured with technology such as National
site-specific and specialized that it would be
first-hand view. However, one does not have
Land Realty’s LandTour360. Aggregator web-
decades before any AI-enabled system could
to reach very far to see the same defense of
sites now show real estate listings, interest
satisfy this niche sector.
the auto industry just a few years ago, and
rates and loans from hundreds of lenders all
companies like Vroom, Carvana Co., CarMax
in one place. Market prices of homes are be-
Consumers must find an agent qualified in
and Autotrader have had a thunderous reply
coming increasingly automated and accurate
the specific land type and geography where
to that defense.
as data-centric companies compile home
they are considering buying or selling in
sales prices for reference comparables.
this sector. Site indexing for timber yield, assessing water or mineral rights on a state
The messaging inside the real estate industry has been a unified front against digital
The human touch will probably always be
or county level, auditing access road quality
transformation. Most people desire to offload
needed to purchase and sell real estate, but
or homesite locations can only be done with
the stress of property purchases and sales
that does not mean it will exist as it traditionally
“boots on the ground.”
onto an agent. There is so much paperwork
has. Salaried employees can facilitate inspec-
involved that it would be difficult for even the
tions or walkthroughs of properties from a
There are many great arguments that real
savviest consumers to understand. Combine
central home base, while others may facilitate
estate will not follow industries like the auto
this with the details of finding a loan, and you
the loan process. The transaction process will
industry. Similar statements have been made
have an intimidating transaction for nearly
continually change as it is simplified. The role
for banking, investments and website design.
everybody. Nevertheless, the future is here,
of a sales agent may diminish as the industry
Highly creative fields such as graphic de-
and you can see that reflected by the most
evolves and consumers steadily seek to reduce
sign have been disrupted with platforms like
prominent players in the industry who are at-
high commission fees or eliminate the risk of a
Canva, and a pattern is emerging throughout
tempting to simplify this process.
negative experience with an agent.
all business sectors that nobody is above
Zillow’s recent failed gamble into buying and
Are There Exceptions to the Rule?
is undergoing a massive paradigm shift, but
selling homes is a perfect example of the
Real estate is not limited to home transactions.
until we find ourselves looking at purchase
long-term direction of the real estate indus-
There are several different real estate sectors,
kiosks in car lots, the age of the salesperson
try, and it is not the only one. CoStar Group,
and some are highly insulated against digital
is not yet dead. Some consumers like the
which started primarily as a data company,
transformation. For example, the commercial
human touch in their transactions, which will
has been on an acquisition rampage of $2.03
and rural land sectors have proven very diffi-
protect the real estate industry over the next
billion, purchasing technology, IT and real
cult to automate compared to the residential
decade. However, as technology has proven
estate-specific companies. Zillow’s recent
sector. Commercial real estate agents must
consistently, few industries are immune to
venture may have failed, but do not let that
have a high aptitude to assess competitor
disruption and real estate is no exception.
automation and disruption. The auto industry
JUNE & JULY 2022 | MANN REPORT 81
212-743-7000
ARTICLES
Condo-Co-op Helpline:
Easements and Development By Carol A. Sigmond, partner, Greenspoon Marder LLP
One call that managing agents dislike receiving is from a board president who is facing outraged unit owners or shareholders about to lose lot line windows. Often, there is little to do but work with the developer to close off the windows with fire-proof material such as brick and block and sheet rock and paint the new wall area. The time to try and save lot line windows is not when the developer is knocking on the door, but before the property is in that status, when the owner might be willing to sell an easement prohibiting developing five feet or so from the wall with the lot line windows. Buying the air rights is relatively straightforward. An easement is a right owned by one property owner that benefits his or her property at the expense or inconvenience of the other property owner. One example of an easement is a shared driveway. Generally, for an easement to be enforceable, there must be two distinct properties with distinct ownership; the benefit conferred to the first property by the second property must be real estate-related. An easement may not be used to a personal benefit, such as a loan, job security or gift. Finally, the easement must be well defined and narrowly stated so that the burdened property owner remains in control of the property.
ing a tenant in an existing building, the developer merges the lots using the consolidated floor area ratio (FAR) to build a larger building on vacant property. Following construction, the parcels are separated. At that point, the new building has the extra FAR. The developer protects the new building with an easement that restricts the use, height, density and/ or location of any new building on the now separate lot. A few years later, both properties have new, distinct buyers. The owner of the restricted property now applies to the Department of Buildings for a building permit for a full-height, full-density building up to the property line. The proposed use is not consistent with the easement terms. The property that holds the easement restricting the use, size or location of the proposed new building must act. The steps would likely include sending a demand letter to the developer pointing out the terms of the easement, notifying the New York City Department of Buildings that the easement is being violated and, if necessary, seeking a declaratory judgment and permanent injunction against development of the restricted property beyond the terms of the easement.
A properly drafted easement may be used to limit the height or location of a building on the burdened property to protect the adjacent property lot line windows or provide a second means of egress for the adjacent property.
During the pendency of the injunctive proceeding, it is possible that the moving party that holds the easement rights may have to post a bond to secure the temporary or preliminary injunction. However, no bond will be requirement for the permanent injunction.
Note: Easements may lapse over time. Consider the following scenario: a developer owns two parcels of land that are contiguous. To make construction efficient and avoid disturb-
The amount of the bond will vary with court’s initial assessment of the easement. The clearer and more specific the easement, the more closely the proposed injunction tracks the express lan-
84 MANN REPORT | JUNE & JULY 2022
guage of the easement, the less the court will be concerned with damages to the developer. Developers will use the threat of damages to block enforcement of easements. They will also argue that the easement is overbroad, unclear or abandoned. However, New York Courts will generally enforce an express easement based on its express terms. How can a developer not comply with an express easement that restricts development? Sometimes, the developer is careless in its due diligence and misses it. Or the developer thinks he can bluff or threaten a neighbor into accepting a building that is inconsistent with the terms of the easement. Some developers hope that the holder of the easement has “forgotten” and will not try to enforce until it is too late. Easement enforcement can be blocked by the doctrine of laches (which bars a party from raising a claim due to an unreasonable delay), so if you own an easement that restricts development, assert it as early as possible. Sophisticated developers will sometimes try to negotiate with the easement holder for modification of the easement. As with the purchase of an easement noted above, this is a real estate transaction for which you will need appraisals and counsel to help you. 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
2022 Hurricane Season Preparedness For Your Real Estate Business By Frank DeLucia, senior vice president, Hub International Northeast
From flood waters, property damage and power loss to spoiled food, coping with the aftermath of a powerful storm could be very troublesome for real estate owners and operators. During the Atlantic Hurricane season, which officially runs from June 1 through November 30, real estate businesses must take a multipronged approach to safety. This begins with crisis communications, management and business continuity planning, followed by back-up efforts with the proper insurance coverage. In 2021, there were 20 separate billion-dollar weather and climate disasters. The total cost for these events was $145 billion, according to the Colorado State University Tropical Meteorology Project. For this year, its team predicts an “above-normal” Atlantic hurricane season with 19 named storms, including nine hurricanes, four of which will be major hurricanes. Taking the proper steps before a hurricane can lessen the impact. Generally, the three main goals of any disaster management plan are to manage the business during the crisis, resume normal operations as quickly as possible and recover losses when it is over. By taking these goals into account when surveying the most critical areas of the business, companies can determine what steps to take to be fully prepared for hurricane season and beyond. Having a crisis communications, management and business continuity plan in place will help ensure employee stability. Pre-determined employee notification channels will be critical to disseminating information. Similarly, understanding individual risk is key to necessary business continuity planning. Try isolating the business risk first. Is it wind, power outage or hurricane damage? Will your business be down for a week, a day or a month? Review
86 MANN REPORT | JUNE & JULY 2022
your business assets and make sure the most critical operations have built-in redundancy or are covered by insurance. It’s important to examine insurance policies (and any potential gaps in coverage) in advance with your advisor, as there are a variety of policies to help coastal and non-coastal businesses recover from an event — each involving a different aspect of the restoration. Business Income Coverage Review your business income coverage limits, which include loss of income as a result of an event, to ensure they are sufficient. Extra expense coverage often accompanies business income coverage for necessary costs, such as temporarily relocating business operations. Flood Coverage Most business property policies exclude flood coverage. In addition, businesses typically buy minimum flood coverage limits, but don’t consider that floods can come from even minor storms or no storm at all. Note: The Federal Emergency Management Administration (FEMA) has rolled out a new risk methodology for flood insurance pricing called Risk Rating 2.0, resetting flood insurance rates for the first time in decades. As of April 1, this revised rating methodology for National Flood Insurance Program (NFIP), flood policies applies to all policies, new and renewing. In addition to elevation, the location of machinery and equipment and the cost to rebuild, the new structure accounts for flood frequency, distance from a water source and the likelihood for multiple flood types such as river overflow, storm surge, coastal erosion and heavy rainfall.
Examine Deductibles What type of deductible do you have on property coverage — percentage or flat? Calendar year or occurrence? If your business has a lot of locations, occurrence or percentage deductibles could be more costly. Additionally, many policies will have lower deductibles for wind and hail events than for a named storm. Currently, the insurance market is very turbulent with rate increases across the board. Insurance carriers are much more strict regarding inspections and recommendations. With your insurance advisor, demonstrate why the marketplace should want your business: • Proactive on safety to reduce claims. • Proactive on contractual risk transfer. • Demonstrate property upgrades where possible, i.e., roof, electrical, plumbing, etc. • Implement outstanding recommendations from previous insurance carrier inspections. • When implementing risk control measures, first consideration should be given to improvements that have the greatest influence on loss severity. • Regarding past losses, be prepared to explain corrective actions taken. Hurricanes can pose a major challenge for the real estate industry. By taking the appropriate steps ahead of time and working with experts, real estate companies can help to ensure that they can weather any storm. Review your policy with an experienced insurance advisor now. Frank DeLucia Hub International Northeast Woodbury, NY frank.delucia@hubinternational.com (212)338-2395
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
ARTICLES
Direct-Owned Real Estate in an IRA By James M. Philbin, CPA, PFS, MST, CFP, partner, Marcum LLP
Assets in individual retirement accounts (IRAs) totaled $13.9 trillion at the end of 2021. As of 2020, there were over 28,000 individuals with IRA accounts exceeding $5 million. IRAs are generally invested in financial assets, including stocks, bonds, mutual funds, and exchange-traded funds (ETFs). Another investment option is to hold directly-owned real estate. Direct-owned real estate refers to properties in which an investor (or subsidiary company) has a fee or tenancy-in-common (TIC) ownership of the property. Real estate held in IRAs can also create unique planning challenges not normally associated with traditional investments. Direct-owned real estate must be held in a self-directed IRA as an alternative investment accepted or offered by a qualified custodian, an entity specializing in self-directed accounts that may manage the investment and complete required financial and tax reporting, including IRS Form 5498, IRA Contribution Information. The real estate property must be solely for investment and not used as a vacation or second home, or as an office for a related business. These rules apply to the owner of the IRA as well as to related people deemed disqualified by the Internal Revenue Service, including the owner’s spouse, parents, children, grandchildren, service providers of the IRA and any entity that owns more than 50% of the real property. Purchasing real estate inside of an IRA is easiest when doing so with 100% cash. Financing the transaction is possible but adds a layer of complexity. Financing the property could sub-
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ject any rental revenue from the property to be considered unrelated business taxable income (UBTI). UBTI is a tax on income from a trade or business that is not significantly related to charitable, educational, or other designated purposes of an exempt organization. UBTI applies when the earned income is over $1,000. If the self-directed IRA uses a non-recourse loan to buy the real estate, the debt-financed part of the profits is subject to UBTI. The profits generated from the non-recourse loan’s percentage of ownership would be taxed. This would be considered Unrelated Debt-Financed Income (UDFI), or income derived from the use of “acquisition indebtedness” in the self-directed IRA. “Acquisition indebtedness” is income from a property where debt is acquired during the purchase of the property. There are certain instances where UBTI does not apply, including when investing in a subsidiary entity taxed as a C Corporation. The C Corp (or an LLC electing to be taxed as such) will pay any income tax associated with the net rental real estate income. Since the entity will have already paid any required tax before paying out any dividends to the IRA, the distribution would be tax-deferred or tax-free depending on the type of IRA. UBTI would not apply if, instead of the IRA investing directly into the property, it makes a loan to another real estate investor. The loan can then be secured by a lien on the property. Also, when property is not leveraged and was acquired via direct purchase, UBTI would not apply to its rental Income.
Despite the myriad rules and requirements involved with holding real estate in an IRA account, there are benefits. Real estate helps diversify a portfolio, often moving counter to financial markets. Real estate has historically appreciated over time, ideal for an IRA’s longterm investment horizon. Real estate can provide a steady income stream from rents, and any rental income collected grows tax-free within the IRA. The drawbacks are that a self-directed IRA needs to be set up with a custodian, and deductions for property taxes, mortgage interest, depreciation and other property-related expenses cannot be claimed unless a C Corp entity is used. In addition, all expenses, repairs and maintenance costs and third-party management fees must be paid with IRA funds, hopefully, and a net of rents to cover. IRA owners subject to annual required minimum distributions (RMDs) and holding direct-owned real estate need to be mindful of the overall liquidity of aggregate IRA holdings. The real estate portion may not have available funds for distribution and the investor will need to draw from other IRA sources. It is also important to emphasize that the owner of the IRA and their relatives can’t live in or run a business out of the property. James M. Philbin Marcum LLP Boston, MA james.philbin@marcumllp.com
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ARTICLES
Deb’s Retail Dish and Deals:
A SEASON OF CHANGE By Debra Hazel, president of Debra Hazel Communications
In pre-pandemic years, one of the highlights of the annual ICSC conference in Las Vegas was Marcus & Millichap’s industry overview. The pandemic shifted the event online and a bit before the conference, a format and timing the firm kept in 2022 as we all prepared to gather in person again for the first time in three years. The lingering effects of COVID-19 were an early topic for discussion. “Everything has changed, and everything has continued to change,” said Hessam Nadji, president and CEO of Marcus & Millichap. Unlike the last major crisis, the Great Recession of 2008, quick and massive intervention helped save the day. Government response in 2008 took 13 months and totaled 6% of gross domestic product (GDP). In 2020, the response came in seven to eight weeks and ultimately totaled 26% of GDP. Also remember, Nadji said, that the economy was in much better shape in 2020 than in 2008. “Even as we head into choppy waters, [note that] in ’08 and ’09, we had a systemic disease. There was a liquidity crisis,” he recalled. “That is not the case here.” Two years out from a global shutdown, the jobs that were lost have been recovered and the U.S. is almost back to full employment, he continued. “We can see the change in society; people are not wanting to do the same work they were doing before the pandemic,” Nadji said. “There are now more job openings than qualified workers. That’s a sign of strength.” And yet — inflation, the result in large part of so much money being injected into the system
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with few places to spend it during quarantine, as well as supply issues and the ongoing war in Ukraine.
The day-to-day retail also will remain strong, as noted in the report that accompanies the annual presentation.
“We have an unbelievable run-up in consumption. At the same time, because of our inability to spend in 2020 and 2021, a lot of pent-up demand is coming back into the market,” Nadji noted. “That’s another very important underpinning of the economy.”
“Necessity retailers, value stores and restaurants with drive-throughs will continue to perform well, while other, more buffeted concepts are poised for a comeback. Improving leisure travel and anticipated office returns will boost foot traffic in commercial hubs and tourist destinations,” the report said.
Even so, inflation is better than undershooting the stimulus, which could have resulted in a depression during the pandemic, he observed. Though the Federal Reserve Board will have to be “very aggressive” to bring inflation back down to a range of around 2%, “This is a good problem to have.” Remember, he noted, that even if interest rates rise quickly, they’re still well below historical averages (other speakers at the event noted that they could be a full point higher by this time next year). And, unlike 2008, the economy is not dealing with a troubled banking or housing system; fundamentals are strong. And as we have found a way to cope with the virus, and the world has reopened, we are seeing changes in retail real estate as people return to stores while remaining committed to online shopping. More stores opened than closed last year, a welcome reversal from previous years. “We’ve seen people who didn’t use e-commerce use e-commerce now,” Nadji said, so physical retail will really have to up its game to compete. “What’s really important is that the experience of retail, fitness and food that was on fire before the pandemic will be on fire now. That is normalcy. You’ll see an explosion of experiential retail.”
Investors should, in fact, be looking for lower-tier, tired shopping centers that can be reinvented, Nadji said. “We cannot judge the retail book by its cover,” he observed. There are headwinds, the report said. Supply chain issues continue to restrict inventory, limiting retail growth as it can’t keep up with pent-up consumer demand. Service-oriented retailers still face staff shortages and unexpected absences. As interest rates continue to rise, capital remains constrained for ground-up development. Redevelopment is key in the current environment. Investor demand is back to pre-pandemic levels, especially for properties in the Sunbelt and for proven single-tenant assets such as large fitness centers, auto part stores and fast-casual restaurants. It was an interesting start to what will be a fast few days of reconnecting and, with luck, a lot of dealmaking. I’ll keep you posted. Debra Hazel Debra Hazel Communications North Las Vegas, NV (201)618-5247
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“Good Cause” and Effect: What Good Cause Eviction Means for NYC Landlords By Robert Rahmanian, principal of Real New York
New York State’s legislature has been considering a bill that would require “good cause eviction,” which would set rent increase limits and allow for automatic lease renewals in most circumstances. This legislation had been introduced previously by state Senator Julia Salazar of Brooklyn and Assembly Member Pamela Hunter of Syracuse in 2019 and 2021, without coming up for a vote. Given recent market conditions, including a spike in rent prices coupled with the recent end of New York’s eviction moratorium, the momentum is building for city council members and other elected officials to do something to help struggling tenants cope with the high and continuously increasing cost of living. But what about landlords? What is Good Cause Eviction? The Good Cause Eviction bill, should it pass on a statewide level, would guarantee tenants in market-rate leases the right to a renewal, so long as they pay on time and remain in compliance with their traditional lease agreements. The bill would also make it more difficult to fight evictions that are contingent upon rent hikes above 3% per year. This legislation could very well apply to nearly all rental buildings with few exceptions and would also require landlords to propose their desired rent increases in court to ensure it is reasonable. This, along with many other elements of the bill, presents a multitude of limitations for landlords which will trickle down and result in additional issues that will ulti-
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mately affect tenants as well. How exactly will this bill affect tenants and landlords? 1. Reduced inventory: If this bill goes into effect, there will be an extreme reduction in the amount of housing available for renters because there will naturally be less turnover with existing tenants. 2. Less affordability and lower quality: While one of the elements of the bill is to cap rent increases, this does not necessarily mean that rents will be affordable. In fact, it will result in the total opposite, forcing landlords to raise and keep rents extremely high due to the reduced inventory, which is already very low in the current market. Due to the bill’s proposed rent caps and policies surrounding traditional lease agreements as we know it, homes will end up priced well below market rate for many years throughout a tenancy, which can negatively impact building operations. Rents need to increase to coincide with higher costs of living, services, vendors and compensations for building staff. This means fewer repairs and upgrades due to lack of funds. 3. Value depreciation and tax increases: A property or building’s value will plummet, and fewer properties will sell and/or trade. This will lead to a huge decrease in the taxes that the city receives on an annual basis, which is not good for any New Yorker. What can be done to prepare for the possibility of Good Cause Eviction? New York City is facing a very serious and real
housing shortage, and if Good Cause Eviction passes, it will only exacerbate the issue further. These types of regulations can have a negative impact on affordability in an already high cost of living location. In turn, rent will continue to skyrocket as housing supply dwindles. Real New York is advising landlords in various creative ways, including building micro roommate apartments for transient clients as well as pricing smart, with higher gross rents paired with complimentary months. What’s next for Good Cause Eviction? Recently, Rochester’s City Council voted against Good Cause Eviction, making it one of the latest as well as largest municipalities to reject this bill. Several other localities in New York have supported or passed some form of this under their own jurisdictions, however Rochester’s failure to pass the bill indicates the reduced plausibility of it on a statewide level. The legislation as it currently stands would result in higher property taxes, higher rents, lower inventory, more court hearings and other adverse effects on landlords and tenants alike. However, the probability of this bill being revisited in its current form in the near future is still on the table, so it is important for all property owners to take the appropriate measures now to ensure economic stability and safety. Robert Rahmanian Real New York 164 Ludlow St. New York, NY 10002 robert@realnewyork.com
ARTICLES
Lessons Learned from the Pandemic By Ira Meister, president and CEO, Matthew Adam Properties Inc.
So, what have we learned in the more than two years of the pandemic? It’s been a time when we had to quickly adopt new systems and procedures to fight COVID-19, analyze what we had in place and move forward. In doing so, we saw that many of the established procedures helped and we found areas where we could improve. The result: property managers found innovative ways to manage and upgraded systems to help keep residents and staffs safe and healthy. When the pandemic initially hit, a supply drought created supermarket shelves bare of toilet tissue and paper towels as well as many cleaning and disinfectant products. Those were the days when it was thought the virus could spread by touching a surface. Matthew Adam Properties represents many institutions which have protocols to maintain sufficient supplies. This contrasts with many properties that utilize just-in-time deliveries. We had sufficient supplies on hand for these properties. Importantly, we also had relationships with suppliers of the products and the supply chains, so we could ramp up orders faster than most. We were experienced in ordering and getting the essentials to the buildings as rapidly as possible. The institutions also had procedures in the event of an emergency, such as elevator protocols that we were able to immediately adapt to our other properties. We quickly established requirements for masks, screened guests based on rules established by the board and significantly increased the cleaning of all public areas, including gyms, meeting rooms and
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children’s playrooms. We are continuing this increased cleaning. In adopting procedures, we followed recommendations from the NYC Department of Health and the Centers for Disease Control. By the way, as part of our green initiative to help maintain a healthy environment for residents and staff, several years ago we adopted the use of non-toxic products in many of our buildings. Residents and staff have overwhelmingly supported this effort. Going forward, we must remain vigilant as we may not have seen the last of COVID-19, with the possibility of unknown new variants. I believe that in the future we will manage COVID-19 as we now manage the seasonal flu, always aware of its presence and taking the necessary steps, including vaccinations, to prevent serious illness and hospitalizations. This requires us, and everyone, to be proactive. Another area where we learned much is with Zoom meetings. We find them more productive than in-person sessions and easier to have a quorum. Now, rather than requiring attendees to be physically present, those participants who are away on business or personal trips can join the meeting. This reduces the need for postponements. The meetings, interestingly, have become more businesslike with reduced chatter adding a new level of professionalism and fewer interruptions. We email the board package prior to the meeting, giving board members an opportunity to review the material prior to the meeting.
We have also successfully held multiple annual meetings via Zoom for many of the same reasons we made the switch for board meetings. We have found that attendance is greater, as it is more convenient for residents to join via Zoom rather than leave their apartments to go to a meeting, often held off site. Again, this allows people who are out of town to participate and increases transparency. One final note: We are grateful to the staffs of our buildings and to the employees of Matthew Adam Properties for their performances in this most trying of times. From the beginning, staff at our properties adjusted and went the extra mile with the new guidelines for visitors and residents as well as helping those who were homebound and needed assistance. The years of ongoing training along with the relationships built up with individual employees contributed to the overall quality and caring performances. There were many examples of individual staff members going beyond their normal duties to assist residents. Our staff at Matthew Adam Properties, back-office, administrative and asset managers all met the challenges of the pandemic as we were able to keep building operations functioning. Ira Meister President and CEO Matthew Adam Properties, Inc. 375 Pearl St., 14th Floor New York, NY 10038 (212)699-8900 imeister@matthewadam.com
ARTICLES
Six Ways to Appreciate — and Share —
Set the Stage for Backyarding
The Value of the Backyard
family’s outdoor lifestyle means taking stock of what you might need to care for your green space.
By Kris Kiser, president & CEO of the Outdoor Power Equipment Institute and the TurfMutt Foundation By using and caring for the green space around our homes, schools, municipal parks and other managed areas, the outdoors can be available to anyone at any time. If we have learned anything in the last few years, it is the stress relief and health benefits available through connecting with nature. Understanding and supporting our natural world starts at our own backdoors. The following tips will help all homeowners appreciate the value of their backyards, parks, school yards and other managed green spaces, year-round. Think of the ways you can move activities normally done indoors to the outdoors. From playing to working and from exercising to dining, more people are finding their front and backyards are an extension of their home. Consider what you can take outside instead of settling for the artificial light and closed spaces of our indoor areas. They’re wonderful in inclement weather, but the outdoors is terrific for grabbing some Vitamin D, fresh air and stress relief. Create a five-star event space. The pandemic made traditional celebrations and gatherings challenging. But the outdoors came to the rescue for events. Now we all know the family yard and community park are five-star event spaces that are always easy to book for graduation parties, family reunions, birthday celebrations and holiday gatherings.
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Creating a yard that supports all aspects of your
Take an inventory of your yard, your individual needs, landscape and equipment needed to care for it to make sure your space will always be there for backyard memory-making. Then follow these steps from the TurfMutt Foundation to set the stage for backyarding.
Utilize the best video call backdrop, naturally. No need to turn to technology when outdoors. The natural setting created by your yard’s living landscape — trees, flowers, bushes and other plants — is the best video call background, bar none.
Plant with purpose. Location, maintenance,
Enjoy a truly “green” spa. The healing power of nature is only a few steps away. Let stress blow away in the breeze as you swing in a hammock. Clear your mind with a few breaths of fresh air. Meditate to the sounds of nature. Do yoga to the soundtrack of songbirds. Make your lawn your exercise mat.
drought-prone areas and also will survive foot traffic, children’s play and pets.
Explore a living laboratory. Your backyard or park is an active and growing place for learning even when school isn’t in session. Take online classes under the shade of a tree. Do homework at a patio or picnic table. Brush up on STEM education by planting and studying flowers, insects, wildlife and weather watching. Sign up for Mutt Mail, a monthly e-newsletter with backyarding tips and all the news from the TurfMutt Foundation. To learn more about creating the yard of your dreams, visit turfmutt.com. Kris Kiser Outdoor Power Equipment Institute 1605 King Street Alexandria, VA 22314 turfmutt.com opei.org (703)549-7600
sunlight and watering needs should all be considered, as well as your climate zone and lifestyle. Select the right grass. There are hundreds of varieties of turfgrass, and some of them — like Buffalo and Bermuda — even do well in
Mix native plants with adaptive plants and grasses. In man-made cities and suburbs, we must incorporate plants in areas with a lot of concrete, asphalt, people and traffic. You will need to utilize both native plants and drought-resistant adaptive species that can thrive in these conditions. Keep pollinators in mind. Remember that bees, butterflies, bats and birds are backyarding, too. Your yard and our community green spaces are part of the connected ecosystem that provide food and shelter to them, year-round. Plant to slow and capture water. Grass and plants slow down and capture the water that sheets off hard surfaces in cities and suburbs, recharging underground aquifers. Water wisely. Only water your yard when it is necessary. Install watering solutions — like smart controllers on irrigation systems — to help you use less water while maintaining a living landscape.
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Women In Construction By Carla Giarrusso, senior project manager, Suffolk Construction and REBNY fellow
As New York continues its post-pandemic recovery, industries statewide are making valiant efforts to bounce back. Workforce development is a critical piece of that effort. Within the construction industry — vital to the role of economic recovery — steps to grow and diversify the field have been slightly lacking. But they don’t have to be. We need to meet the growing demand for key infrastructure projects, tackle the housing crisis and help promote the creation of sustainable cities. But to equitably build toward this future, an equal balance and partnership between women and men is necessary. Only then can this sector reap full benefits and drive recovery forward in a more substantial way. We must build women up in our workforces. This is integral to help with the current labor shortage and is especially needed because COVID-19 has also increased the pressure on working mothers, with many becoming unemployed due to a lack of childcare. If this continues, the widening gender disparity in the labor market will only expand. New York City-based organizations like NEW (Non-Traditional Employment for Women) are key to supporting women as they help prepare, train and place women in careers in the skilled construction trades. Also, the Real Estate Board of New York (REBNY) is committed to helping the real estate sector cultivate diverse talent and build a leadership pipeline that brings new ideas, experiences and relationships to the table via its Fellows Leadership Program, which I’m honored to be a part of this year. To that end, we must go back and challenge the gender-based ideologies that persist in the
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construction industry and hinder women from seeking out what I believe to be such enriching work. The first step of that process is to dispel some common industry misperceptions that I’ve seen firsthand, so that other women feel more comfortable taking it on as a profession. People often perceive construction as strictly blue-collar, consisting of “just” manual labor. But it truly is a science. It is a profession that requires much knowledge and continued learning, along with problem solving and working with people from different walks of life. No one project is the same and, within each project, there are many vital roles tailored to individual skill sets. Championing construction will help balance the perception of degree versus trade, as well as bolster young people, women in particular, to get involved. It is also a perfect opportunity for people who don’t want to work in an office and aspire toward more onthe-ground field work. One of the most remarkable things about my 25-year career is the extent to which I feel at home as a woman in construction. My experience with all my colleagues or mentors, past and present, have been nothing short of positive. I hope that sharing my positive experiences encourages other women to join in the trade. It’s also important to do your homework on the companies you’re applying to. A company like Suffolk Construction values diversity and inclusion and has a DEI department that helps to ensure women play a central role in the business. This is invaluable. Every day, people take for granted the spaces that we live, work, play and eat in. A career in construction allows you to take that step
back and really appreciate the physical world because you know you had a hand in building it. Not only is every project unique, but every day brings new challenges and lessons. Immediately, you’re brought on as a partner in the development of communities, whether it be a tower, bridge, school or factory. A career in construction is something that all women can aspire to. We can be a driving force for change, not only as laborers, but also as managers. There are several opportunities for long-term growth and it helps to note that the gender pay gap in the construction industry is lesser than the national average. In the face of economic recovery, a once male-dominated industry is finding itself in need of women — and we must oblige. It’s ultimately a win-win scenario. Women will re-enter the workforce, secure their footing in the labor force and close the gender pay gap while the industry gains access to diverse, qualified and talented men and women. It’s imperative that we take advantage of this chance to transform our industry for the better, so that other trades can also begin to take notice. Women have just as much of a place in the construction industry as we do anywhere else. Let’s continue to pave the way toward more female involvement and job growth as we continue to recapture the essence of our great city. Carla Giarrusso Suffolk Construction One Pennsylvania Plaza, Suite 5500 New York, NY 10119 (646)952-8000 cgiarrusso@suffolk.com
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Harlem is Back With a Vengeance By Amanda Jhones, associate broker, Coldwell Banker Warburg
I recently met with a politician friend at Harlem Shake to enjoy the performance of C. Kelly Wright, who is one of the partners of Harlem’s Late Night Jazz, an organization that promotes musical events around the five boroughs. I wanted to chat about our new mayor, Eric Adams. In my opinion, Adams will be a great lawand-order mayor for our city. While many will disagree with his stop-and-frisk tactics to clear the city of weapons, I completely agree with his decision. During our conversation, we discussed the real estate market and what’s new in Harlem, including the fact that more Hollywood personalities are looking to invest in properties in New York, especially Harlem. “They had better hurry; every plot of land and nook and cranny in Harlem that I’ve seen has a project on the site,” I said, as my friend mentioned that the Bronx is the new frontier. I reminded him that I am a realtor and I had just joined Coldwell Banker Warburg. He congratulated me on joining this esteemed real estate company with another round of drinks. A Changing Harlem As we strolled the corridors of Harlem after dinner, it was great to see new stores and restaurants that have opened their doors in the community and finally, seeing the stores and restaurants that survived the pandemic. Sylvia’s continues to overflow with tourism
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business. My favorite place, Jacob’s, is enlarging its space. When the famous Red Rooster shut down, the community was concerned that it would not be re-opened, but Red Rooster is back in business! The Apollo Theatre has opened its doors, too, and Minton’s Playhouse is back, as well. Good food and music are seemingly around every corner of Harlem. As we continued to stroll down 125th Street, we noticed all the new skyscrapers — in fact, 125th Street is beginning to mirror Madison Avenue without the hefty price tag. Even so, I was shocked when I found the perfect place for my commercial client to open a coffee and pastry shop. It was absolutely what he needed. When I contacted the broker about this property on Fifth Avenue and 111th Street, she informed me that this 670-square-foot storefront’s asking rent was $65 per square foot — that adds up to a cost of more than $43,000 per month! Harlem is not inexpensive anymore; those days are gone. On the residential side, the average monthly rent has soared — a cozy, walk-up, two bedroom/two bathroom, no doorman building, has risen from from $2,600 to $3,000. Yet some would say that’s still an excellent price, even with no amenities. Harlem is Back — But Different It is a beautiful sight, sound and feeling to walk along the streets of Harlem, seeing different people from all walks of life. When the pandemic hit, the area around Lenox Avenue and 125th Street was a ghost town — except for
the near-constant, mile-long line to get into Whole Foods. Now that COVID-19 is subsiding and somewhat under control, new construction has started again (unfortunately for residents at 7:30 a.m.). It’s back: 125th Street is alive again. The tour buses and walking tours are back. Tourism is back. Sidewalk vendors are competing with the name brand stores. If you chat with the street vendors, they will let you know that business is as complex as it’s ever been, and that maintaining their business among the growing construction projects all over Harlem is changing things in a big way. The mom-and-pop stores have vanished. They have been replaced by Victoria’s Secret, Mac Cosmetics, T.J. Maxx, Spectrum and Whole Foods. Wells Fargo bank has taken the space of the legendary Lenox Lounge, where Billie Holiday, Miles Davis and John Coltrane performed. The community took it hard, and there was even a local uproar about the design of Wells Fargo Bank. Harlemites were dismayed that the architect did not consider the rich history of Harlem and of the Lenox Lounge. Many feel that Wells Fargo is an eyesore to the community, and that the building developers showed a lack of respect for the rich history and the community of Harlem. Amanda Jhones Coldwell Banker Warburg ajhones@warburgrealty.com
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A.E.C
To New Heights: The Palace Theatre is Raised on Broadway
T
heatergoers seeking the historic Palace Theater on Broadway now must look up. Landlord L&L Holding Company literally has raised the rafters (and the rest of the building) 30 feet above Times Square as part of the TSX
Broadway development. TSX Broadway is a 46-story, 550,000-square-foot, $2.5 billion mixeduse development in the heart of Times Square that will reimagine hos-
pitality, experiential retail, dining and entertainment and is expected to be open in 2023. Along with the Palace Theatre, the project will also include Times Square’s only indoor/outdoor performance venue, the district’s largest outdoor terrace, a 600-plus key hotel, 51,000 square feet of building signage and nearly 100,000 square feet of retail and entertainment space. Lifting the theater to unlock 100,000 square feet of valuable ground floor retail space, while maintaining and preserving the landmarked theatre required techniques that defied conventional engineering, the company said. The building combines hotel, retail and the theater.
Thirty-four hydraulic lifting posts were used.
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The building was raised 30 feet.
A.E.C
The Palace Theatre’s 14-million-pound theatre box was lifted to 30 feet above Times Square (the third floor of TSX Broadway) by utilizing a mechanism that is a hybrid between a structural steel shoring post and a hydraulic jack. There were 34 hydraulic lifting posts pushing up on the ring beam around the perimeter of the theater box. The theater lift took seven weeks and one day from production lifting beginning on February 14 to the final elevation on April 5, followed by a month of structural infill and load transfer. “The completion of the Palace Theatre lift marks a milestone in this innovative project that is revitalizing Times Square and emerging as a symbol of the spirit of New York City’s economic and cultural strength in one of its most iconic destinations,” said David Levinson, chairman and CEO of L&L Holding Company. “We are thankful to all of our partners for accomplishing this never-before-seen feat of engineering, which will preserve the legacy of this historic landmark while unlocking its full potential as a modern-day entertainment destination.” Partners on the project include: Mancini Duffy, architect of record for the core, shell and hotel; PBDW, architect of record for theater design and historic preservation; Jablonski Building Conservation, historic preservation consultant; Urban Foundation Engineering, lift engineer of record and contractor; Langan, special operational equipment/foundation engineering consultant and Severud, structural engineer of record. With the lift complete, the 1,650-seat Palace Theatre will soon un-
The elevation took nearly two months.
dergo a $50 million renovation and restoration project, including refurbishing the theatre’s landmarked interior and upgrading and expanding the lobby, reception area and backstage, including adding 10,000 square feet of back-of-house space. A grand chandelier will be installed in its original historic location, and a new marquee added. “We look forward to inviting everyone to visit the Palace Theatre in its new home in the coming years. This project symbolizes the essence of Times Square, a district that sits at the intersection of our city’s history and its future,” said Tom Harris, president of Times Square Alliance. “This remarkable engineering project will elevate the theatre’s prominence as a part of TSX Broadway, which will create new experiences for all who visit.” Photos courtesy of L&L Holding Company
A grand chandelier will be placed in its original spot.
JUNE & JULY 2022 | MANN REPORT 103
A.E.C
Wine Meets Art at Edes Building
Large windows open to Morgan Hill’s downtown.
T
here’s nothing like strolling through
Featuring architectural elements that create
an art gallery with a glass of wine
a captivating, sculpture-like exterior and a
— as residents of Morgan Hill, Cali-
contrastingly light interior, the building is de-
fornia will see next year when KTGY’s
signed to be a piece of art in itself. Inspired
design of the Edes Building opens in 2023.
by the local landscape, the differentiated aesthetic of Edes Building draws on timber con-
The mixed-use art gallery and wine bar,
struction in an eclectic urban context. Mass
which recently received its building permit
timber, a sustainable material chosen for its
and will break ground shortly, is designed
organic finish, is echoed throughout the in-
Drawing on the movement of visitors, Edes
to knit together a multi-use art gallery and
terior — creating a unique experience com-
Building brings the outdoors in with large
pedestrian promenade to re-engage a key
pared to the standard white-box approach
windows open to Morgan Hill’s charming
downtown intersection. It will provide two
of more traditional galleries. While offering
downtown while creating an intriguing and
levels of open gallery space, allowing for art
a more sustainable and economical option
flexible space. The first floor will consist
displays, display-style storage and a variety
than a concrete or steel structure, timber has
of large glass panels designed to engage
of art classes, along with a wine bar, café and
a natural appeal that is leveraged throughout
visitors and offer a preview of displayed art,
views of the surrounding rolling hills.
the interior and exterior of the building.
while a lantern-inspired staircase entices
104 MANN REPORT | JUNE & JULY 2022
Sustainable mass timber is used in the interior.
A.E.C
The design features custom shelving and displays.
The two-level space can host various events.
Flexible design can highlight pieces of various sizes.
visitors from the light and open first floor to
the flow of gallery visitors to accommodate
beyond simply viewing art. With an emphasis
an equally open second floor providing ad-
various-sized art pieces and create a flexi-
on building connections, Edes is designed
ditional gallery space and the ability to host
ble yet unified space. The first-floor gallery
to blend both social and artistic experiences
various community art classes and events.
leads to a wine bar with modern furniture, a
in the heart of downtown Morgan Hill.
functional seating area and a combination of “Edes Building provided an exciting opportu-
displayed wine and art pieces inspired by the
KTGY partnered with property owner, Dan
nity for KTGY to break the mold of traditional
surrounding rolling hills and outdoors.
McCranie; Twelve22 Ventures, the construction manager; KPFF, the civil engineer;
art galleries,” said Sean Martino, associate principal at KTGY. “By embracing the sur-
“Our integrated approach has resulted in a
K2D, which serves as the mechanical and
rounding rolling hills and greenery, along
holistic design that complements the archi-
plumbing engineer; RANA, the landscape ar-
with the movement of downtown, we were
tecture and meets the gallery’s needs to host
chitect; John A. Martin Associates, structural
able to design a flexible gallery that serves
a diverse collection of art,” said Gina Deary,
engineer and Chromatic, which serves as
the community through art and entertain-
principal in KTGY’s interior design and brand-
lighting designer.
ment while paying homage to the history of
ing studio, “The building itself is designed to
Morgan Hill.”
be a piece of art, and we wanted to capture
“Dan McCranie is a pioneer that is elevating
the uniqueness of this venue and allow it to
the arts and culture experience in Morgan
Edes Building is the first development for
be a beacon of creativity and inspiration in
Hill. We are fortunate for his vision, com-
which KTGY has provided both architectural
the community.”
mitment and passion for the arts,” said City of Morgan Hill Assistant City Manager
and interior design. It offers a unique challenge to create a versatile design that em-
Previously, the site was host to Edes Gro-
Edith Ramirez. “KTGY’s design of the Edes
braces the building’s mass timber structure
cery Store, the first business on the site in
Gallery masterfully uses cross laminated
and blends the warmth of the wood with an
the 1920s, which inspired the name for the
timber, an eco-friendly sustainable material
airy, modern design. Custom shelving and
development and, most recently, a pop-up
which offers an aesthetically pleasing con-
display units will accommodate a myriad
park that sparked the need for community
temporary design while honoring the site’s
of art, including canvas and prints, jewelry,
engagement through art and connectivity.
historical significance.”
pottery and glass pieces. Custom-made ro-
With the goal of re-engaging the community,
tating walls are designed to pivot and adjust
the design of the gallery offers experiences
Photos courtesy of KTGY
JUNE & JULY 2022 | MANN REPORT 105
A.E.C
Warner Red Hill Commences Construction in Santa Ana
Warner Red Hill redevelops a former industrial site.
A
former industrial site is on the way to becoming a mixed-
“The design of Warner Red Hill celebrates Santa Ana’s industrial and
use community in Santa Ana, California, as construction is
cultural heritage with an inviting neighborhood and tech aesthetic,”
underway on Warner Red Hill, one of the largest such pro-
said R.C. Alley, managing director of AO, the architecture firm that de-
jects being developed in Orange County.
signed Warner Red Hill. “The project will offer a vibrant mix of residen-
Developed by Greystar Real Estate Partners, Warner Red Hill is located
tial and retail with a special community dining area that will encourage gathering for artists, musicians and foodies alike.”
on 14.7 acres near the edge of the Tustin Legacy development, which many consider to be the gateway to the city of Santa Ana. The project
The energetic mixed-use project will feature 80,000 square feet of re-
is scheduled to be completed in 2024.
tail space accessible from the central public plaza and a neighborhood
106 MANN REPORT | JUNE & JULY 2022
A.E.C
Three saltwater pools are on the rooftop.
The project is at the gateway to Santa Ana.
of five-story rental apartments. The 1,100 apartment units will range in
brick veneer, to smooth light washed facades with rhythmic window
size between 631 square feet to 1,362 square feet; future residents will
arrangements. The retail corner acts as a beacon of light and transpar-
appreciate amenity-rich living that will include three rooftop saltwater
ency, comprising glass, steel cross bracing and custom LED lighting.
pools and one courtyard saltwater pool, outdoor kitchens, lounges and barbecue areas and a fitness center. The project also includes five
“With our established multifamily and commercial studios, AO was able to
acres of publicly accessible spaces surrounded by extensive land-
leverage synergies within to create an efficient solution for Greystar,” Alley
scaping and curated streetscapes to encourage pedestrian and bicy-
added. “As modernization efforts continue to be developed throughout
cle activity. At the front is a 20,000-square-foot market hall designed
Santa Ana, we look forward to bringing our expertise to additional pro-
to be to be an asset for Santa Ana residents with plans to host social
jects that serve a multitude of residents and communities.”
gatherings, food trucks, entertainment and other events. The project includes the demolition of three industrial buildings on the As designer and architect of record, AO infused timeless elements
site and will be built in a phased approach. AO is partnering with MJS
into the structures such as faux steel beams, steel cross bracing, brick
Landscape Architecture to develop the landscape and open spaces
and glass. The residences express a diverse architectural character,
and Parisi Portfolio to customize the interiors.
where old meets new to form an eclectic urban village ranging from industrial lofts with floor-to-ceiling corner fenestration and cool gray
Photos courtesy of AO
Residences form an eclectic urban village.
Public spaces will bring the community together.
JUNE & JULY 2022 | MANN REPORT 107
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COLLEGES
Cal State Dominguez Hills Opens Innovation and Instruction Building The four-story building features multiple classrooms, labs and event spaces.
T
he transformation of California
a commercial kitchen and a café. The new
“We have enjoyed our partnership with
State University, Dominguez Hills
home of the College of Business Administra-
CSUDH, lending our years of experience
in the heart of the South Bay area
tion and Public Policy, the building opened
constructing projects for California universi-
of Los Angeles continues with the
for classes in spring 2022.
ties to complete another cutting-edge facility
completion of its $66.5 million Innovation
designed to support the evolving needs of
and Instruction Building. The new four-story
At 107,600 square feet, the Innovation and
higher education,” said Tom Jones, project
structure features a 250-seat auditorium for
Instruction Building is part of the school’s
executive at C.W. Driver Companies. “With
teaching and symposia, one 120-seat active
larger initiative to transform the campus with
several active learning classrooms and ex-
learning classroom, two 60-seat case study-
major capital projects that include the Sci-
ternal collaboration areas, interaction and
rooms, meeting rooms, computer labs, event
ence and Innovation Building, completed by
continuous learning are encouraged among
spaces, faculty and administration offices,
contractor C.W. Driver Cos. in 2019.
students and educators.”
112 MANN REPORT | JUNE & JULY 2022
COLLEGES
A central stairway connects all four levels.
Business School model — are unique assets to students in the College of Business. A small broadcast room accommodates interactive lectures as well as distance learning. The third and fourth floors are comprised of 92 faculty and departmental offices as well as additional classrooms. All four levels are connected by a central open stairway that enhances visibility of the programs and interactions of the students, faculty, administration and community. “The outstanding design and dynamic quality of the Innovation and Instruction building are ushering in a new era of campus facilities that match the caliber of the academics taking place,” said Roshni Thomas, director of facilities planning, design and construction at CSUDH. “The C.W. Driver team was an excellent partner in bringing our vision to The ground floor welcomes students and
an active-learning environment.
visitors with an open lobby, a four-story
life, helping us to navigate this challenging period for construction.”
atrium, advising center and student café.
The building’s second floor is comprised of
The active learning classroom doubles as a
classrooms and computer labs. A simulated
C.W. Driver Companies partnered with HGA
university event center with kitchen support
trading room with lighted ticker tape informa-
Architects & Engineers on the CSUDH Inno-
and is designed to host speakers and con-
tion, as well as one 60-seat case-study room
vation and Instruction Building.
ferences and also serve as a banquet space.
(there is a second case study room on the
A classroom on the ground floor is utilized as
third floor) — as promulgated by the Harvard
Photos by Chase Magdaleno at Drone Works Media The complex is part of a major campus transformation.
JUNE & JULY 2022 | MANN REPORT 113
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EXECUTIVE CHANGES
worked as head of product of Urbint, a data
B6 Promotes Mercado to COO
intelligence company focused on helping cities become more resilient. Adrian Mercado
He previously served as managing director of research in the Capital Markets Group at Cush-
B6 Real Estate Advisors has promoted
team, comprised of the engineering and
man & Wakefield from 2015 to 2016. In this
Adrian Mercado from chief information
research departments.
position, he was responsible for the department’s day-to-day activities and a member of
officer to chief operating officer. In this new role, Mercado is responsible for the
Mercado began at B6 in July 2018 as partner
the Global Data and Technology Strategy team.
strategic growth of the firm as well as
and chief information officer; he will remain a
From 2010 to 2015, he served as vice president
oversight of the day-to-day activities of the
partner moving forward. Prior to joining B6,
of Research at Massey Knakal Realty Services.
firm’s operations team. He is also respon-
Adrian founded Alero Advisors, a data strat-
sible for the design and implementation of
egies advisory firm that focused on the real
Mercado graduated with his bachelor’s de-
the company’s insights strategy and data
estate technology sector. Before Alero, he
gree from University of Connecticut.
Tullius will be responsible for orchestrating
Premier Elevates Tullius to Vice President of Development
the parties within the development process, leading the interplay between finance, leasRex Tullius
ing and construction and spearheading entitlements and government relations. Within this role, he will work to strengthen
Premier, an end-to-end architecture, interior
head of hotel development. “We see a
relationships with cities, co-developers
design, procurement and project manage-
tremendous opportunity to accelerate our
and various stakeholders throughout the
ment firm, has appointed Vice President of
growth through strategic partnerships
development process to grow Premier’s
Strategic Partnerships Rex Tullius as vice
and investments. Tullius has extensive
development pipeline, the company said.
president of development.
real estate development experience and
He will also be responsible for aiding in
invaluable relationships with key partners
business development.
“Tullius has played an integral role in
within hospitality and other industries,
building our project portfolio,” said Hector
and we’re excited to have him step into
Before joining Premier, Tullius worked at Leg-
Sanchez, CEO of Premier and Ashford’s
this new role.”
acy Development as a president.
facilities, finance, human resources, legal
U.S. Green Building Council Names Revitte Chief Operating Officer
and technology.
Lisa Revitte
“Lisa is an outstanding complement to our global leadership team,” said Peter Templeton, president and CEO, USGBC and GBCI. “I
The U.S. Green Building Council (USGBC)
Business Certification Inc. (GBCI). In this
am confident in her ability to help strengthen
has named Lisa Revitte as chief operating
newly created role, Revitte will support busi-
the capabilities and performance of our or-
officer, supporting both USGBC and Green
ness leaders in a variety of areas including
ganizations as we work to address urgent
116 MANN REPORT | JUNE & JULY 2022
EXECUTIVE CHANGES
challenges facing our communities world-
and innovation we need to advance a pros-
she served USGBC and GBCI from 2006-
wide. It is an important time for USGBC and
perous and equitable future.”
2014 in various capacities including director
GBCI, and having an experienced COO is
of operations for GBCI and director of enter-
vital as we continue to pursue our mission at
Revitte has 20 years of operations experi-
prise performance for USGBC and GBCI. She
even greater speed and scale. Lisa’s exper-
ence and served as the chief operating of-
holds a Master of Business Administration
tise will be fundamental as we seek to trans-
ficer for the Brady Campaign to Prevent Gun
degree from the George Washington Univer-
form USGBC’s strong legacy of leadership
Violence, and most recently held the same
sity, and a bachelor’s degree from the Univer-
into the platform of partnership, collaboration
position at Fox Architects LLC. Prior to that,
sity of Michigan.
viously, he was a senior commercial credit
BHI Expands CRE Team with Jeddah, Azizi
analyst at Capital One Financial Corporation. He earned a bachelor’s in economics from Stony Brook University. David Jeddah
Benjamin Azizi
Azizi will primarily focus on building BHI’s
Full-service commercial bank BHI is expand-
continue our growth and momentum going
growing multifamily platform and will be re-
ing its Commercial Real Estate (CRE) group,
forward,” said Doug Rutley, BHI senior vice
sponsible for loan origination, relationship
adding David Jeddah and Benjamin Azizi as
president and head of real estate.
management and business development. He served eight years at JPMorgan Chase, most
vice presidents and relationship managers. Jeddah will support Ilana Druyan, first vice
recently in the CRE division, where he origi-
“In 2022, we are targeting an enhanced em-
president who oversees international CRE.
nated multifamily loans and was involved in
phasis and strategic focus on multifamily
He will cover existing clients as well as build-
closing more than $800 million in transactions
projects, building on our robust activity in
ing his own portfolio. Jeddah joined BHI from
from 2020 to 2022. Azizi is a cum laude gradu-
the sector last year. BHI already finances
BankUnited NA, where he most recently
ate of Baruch College’s Zicklin School of Busi-
large projects in key locations and we plan to
served as CRE relationship manager. Pre-
ness with a BBA in finance and investments.
Butler Promoted to Managing Director of FirstService Residential’s Metropolitan Division
“Adam continuously exhibits strong leadership qualities, great attention to detail and a thorough understanding of the unique complexities and compliance requirements for New York City and Adam Butler
New York State Mitchell-Lama buildings, affordable housing and income-restricted properties,”
Residential property management company
residential units across eight multifamily
said FirstService Residential Executive Vice
FirstService Residential has promoted Adam
apartment complexes.
President Tal Eyal. “He is a true representation of service excellence and dedication to making a
Butler to managing director of the metropoli-
difference for the clients we serve.”
tan division, a segment of the company ded-
Butler joined FirstService Residential in 2017
icated to providing property management
as general manager of Bayridge Air Rights,
services to income-restricted and Mitch-
a New York State Mitchell-Lama cooperative
Butler began his career in property manage-
ell-Lama properties in Brooklyn, Queens,
with over 800 apartments. He quickly was
ment 14 years ago as an office administrator
the Bronx and Manhattan. Butler oversees
appointed account executive for several
and quickly worked his way up through the
a dedicated team of property managers
other Mitchell-Lama buildings in the Metro-
ranks to general manager before he joined
who are responsible for more than 3,200
politan Division portfolio.
FirstService Residential.
JUNE & JULY 2022 | MANN REPORT 117
EXECUTIVE CHANGES
Berger joined the company as director of
Norman Bobrow & Company Promotes Berger to VP
commercial leasing and investment sales in 2009 and has quickly become one of the Josh Berger
firm’s top producing brokers. In 2014, he was named managing director of commercial leasing and investment sales. Some of
Josh Berger, managing director at Norman
“Josh Berger is an exemplary leader who
Berger’s clients include Equinox, Make-Up
Bobrow & Co., has been promoted to vice
represents the next generation to help
Designory, Boyar Value Group, Clear Street
president of the independently owned ten-
run our business,” said Norman Bobrow,
Management, Jordache Enterprises, MMGY
ant-rep commercial real estate brokerage firm.
founder and president. “Most importantly,
Global, Harborview Capital Management,
he follows each deal through to completion,
Museum of Women, Petsmart, WCD Group,
In his new position, Berger will help as-
often exceeding the expectations of his
The Center for Social Inclusion, Kargo and
sist the brokers in the firm to drive higher
clients. Josh stresses accuracy, attention to
Transit Wireless.
revenues and transaction activity in both
detail and an unparalleled level of service
Manhattan and the outer boroughs and
and professionalism which has enabled him
Berger received his bachelor’s degree in
help with the firm’s broker development and
to successfully represent his clients time
marketing/business administration from
internship programs.
and again.”
Yeshiva University.
Madison International Realty Names Moon Managing Director, Platform Investing
growth opportunities. Kenny has directly applicable experience and will be an invaluable addition to advance these initiatives,” said Kenny Moon
Ronald Dickerman, Madison International Realty founder and president.
Real estate private equity firm Madison Inter-
With more than 15 years experience in real
Moon previously served 12 years with Al-
national Realty has named Kenny Moon as
estate investment and finance, Moon will
manac Realty Investors, Neuberger Berman
managing director to advance the firm’s activi-
focus exclusively on Madison’s real estate
Group LLC, where his most recent position
ties in real estate platform investing. Moon will
platform initiatives, providing growth capital
was managing director. At Almanac, he
be based in Madison’s Los Angeles office.
to public and private real estate companies.
sourced, analyzed, underwrote and execut-
Moon’s investment experience spans numer-
ed entity-level investments into private and
Madison International Realty specializes in
ous property types, and he will seek to broad-
public real estate operating companies
providing liquidity solutions to existing real
en the utilization of the firm’s capabilities.
in the U.S. and Canada, and previously served on the boards of HRIP Holdings
estate investors, as well as acquiring partial ownership stakes and joint venture interests
“Madison has become a global leader in
and PREP Property Group. Earlier in his ca-
in prime properties and portfolios in select
providing liquidity solutions to sponsors and
reer, he held roles at ING Clarion Partners
sectors and major markets in the U.S., U.K.
property owners of quality assets located
and Citigroup.
and Western Europe. Madison also provides
in prime markets across the world. We also
equity solutions to real estate platforms
seek to apply this capability to invest equi-
Moon earned a bachelor’s in business ad-
seeking to retain assets, grow portfolios and/
ty in real estate operating companies and
ministration from the Haas School of Busi-
or raise capital more efficiently.
platforms which we believe offer substantial
ness at University of California, Berkeley.
118 MANN REPORT | JUNE & JULY 2022
EXECUTIVE CHANGES
vantage. To that end, BBG has a strong track
BBG Appoints Holman as CIO
record of utilizing advanced technology and hiring highly accomplished IT experts to Blake Holman
help create the best client outcomes possible as well as achieve our goals for strategic growth,” said BBG CEO Chris Roach. “We
BBG Real Estate Services, a national due diligence
Holman has led the IT strategy, development
are extremely fortunate to have someone as
commercial real estate service firm, has appointed
and operations for public and private compa-
talented and well-respected as Blake who
nationally recognized technology authority Blake
nies in the consulting, telecommunications
will play a pivotal role in taking our technol-
Holman as chief information officer. In his new role,
and financial services industries. Prior to
ogy leadership to the next level.
Holman will lead BBG’s efforts to continuously im-
joining BBG, Holman served as chief infor-
prove the firm’s state-of-the-art information technol-
mation and infrastructure officer at St. David’s
Holman received a masters’ degree in infor-
ogy infrastructure underpinning BBG’s business.
Foundation in Austin, Texas.
mation security and assurance from Western Governor’s University and a bachelors’ de-
Bringing more than three decades of experi-
“BBG has always embraced technology as
gree in mechanical engineering from South-
ence in the information technology field, Mr.
a key differentiator to gain a competitive ad-
ern Methodist University.
In 2017, Nunnally pivoted to general man-
Swinerton Promotes Nunnally to Chief Administrative Officer
ager for craft services, where she was charged with developing a new corporate Lauren Nunnally
department to enable the expansion and profitability of Swinerton’s self-perform operations. Assuming the role of vice pres-
National building company Swinerton an-
to project manager and gaining experience in
ident and chief talent officer in 2019, she
nounced that Lauren Nunnally has been pro-
numerous markets. After taking a brief hiatus
focused on aligning and adapting Swiner-
moted from senior vice president and chief
to continue her education, she returned part-
ton’s overall talent strategy to its business
talent officer to senior vice president/chief
time in 2013 to support Swinerton’s complex
strategy, leading and driving continuous
administrative officer, overseeing all talent
collaboration portal initiative and process study
improvements to workforce planning; tal-
management, HR operations and corporate
of operations. She completed her MBA at the
ent acquisition, development and mobility
responsibility efforts.
University of Pennsylvania Wharton School of
and succession planning efforts. In 2021,
Business and rejoined Swinerton full-time in
promoted to senior vice president, she
Nunnally started with Swinerton in 2005 as a
2014 as director of support within the Business
became the youngest board member elect-
project engineer in San Diego and remained in
Technology group, working to reorganize and
ed to the Swinerton Incorporated board
core operations for eight years, quickly rising
focus IT on the business of construction.
of directors.
JUNE & JULY 2022 | MANN REPORT 119
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HERCULES CORPORATION
At Westchester Country Club For more information contact David Lipson dlipson@centuryny.com
LANGSAM PROPERTY LANGSAM PROPERTY SERVICES CORP., AMO SERVICES CORP., AMO Langsam Property Services Corp. is a Bronx-based real estate management company. These buildings areislocated in the Bronx, Manhattan, Queens, Langsam Property Services Corp. a Bronx-based real estate management Brooklyn, and buildings lower Westchester company. These are locatedCounty. in the Bronx, Manhattan, Queens, Brooklyn, and lower Westchester County. Langsam is designated as an Accredited Management Organization (AMO), a standard of excellence management conferred by the Institute of aReal Langsam is designated as an in Accredited Management Organization (AMO), EstateofManagement standard excellence (IREM). in management conferred by the Institute of Real Estate Management (IREM). 1601 Bronxdale Avenue New Avenue York 10462 1601Bronx, Bronxdale Tel: 718. 518. 8000 Bronx, New York 10462 Fax: 718.518. 8585 Tel: 718. 518. 8000 Fax: 718.518. 8585
Mark Engel, CEO Mark Engel, CEO
www.langsampropertyservices.com www.langsampropertyservices.com
Matt Engel, Matt President Engel, President
SAVE
THE DATE 9.27.2022
Fresh Meadow Country Club 255 Lakeville Rd, Lake Success, NY 11020
penny@nationalrealtyclub.org for more information or questions 2
CITRINCOOPERMAN.COM CITRINCOOPERMAN.COM
For more information contact: For more information contact: Mark Mindick, Partner mmindick@citrincooperman.com Mark Mindick, Partner mmindick@citrincooperman.com Michael DeVito, Partner mdevito@citrincooperman.com Michael DeVito, Partner mdevito@citrincooperman.com
CROSSWORD PUZZLE
Summer Style
By Myles Mellor
Across
Down
1. Desirable view
1. Placed above
7. Urgent request for help
2. Difference between market value and
9. “But first and foremost, Area15 is a _____brand.” Michael Beneville, Chief Creative Officer 11. Org. that promotes, advances and connects
claims against it 3. Confidentiality agreement, for short 4. Investor’s expectation, abbr.
women in the engineering, architecture and
5. Prefix with profit
construction industries abbr.
6. Japanese pond fish
13. Word with sales or perfect
7. Stylishly luxurious and expensive
14. Starting agent’s first hurdle
8. One of a condo board’s roles
16. Roman 4
10. Pointed or Gothic arch
17. Glacier Bay state, abbr.
12. ___ house: realtor’s staple
18. Taos’ state, abbr.
14. Key factor in architectural designs
20. HGAR CEO and president and chief strategic
15. Chow down
growth Officer of OneKey MLS, Richard _____
19. ___ Tai
22. Phrase with carte or king, two words
20. Owned
24. “Life of ___” (2012 movie)
21. Hard to find
25. Property for occasional or secondary use,
23. Tenants’ documents
three words
25. Bachelor’s apartment in slang
28. EPA concern as regards autos, abbr.
26. Word with level or commission
29. Newly appointed President of NY Resorts
27. _____ nester: parent whose children
World Casinos, Robert ___ (two words)
have grown up and left home
32. Ivy Leaguer in New Haven
30. “Float like a butterfly” boxer
Answers at
33. Dress-shirt fastener
31. Words said at an altar, two words
mannpublications.com: bit.ly/3GzRCBl
35. Real estate agent and loan officer, for example
34. Doctor’s title, abbr.
124 MANN REPORT | JUNE & JULY 2022
BHI IS THE FINANCIAL PARTNER YOU NEED TO HELP YOU GROW YOUR BUSINESS SECTOR EXPERTISE. TAILORED SOLUTIONS. The financial backing of a global bank, and the streamlined structure and agility of a boutique bank that will keep your business moving forward. BHI offers full commercial banking services that combine the personal attention of a prestigious boutique bank with the expertise and financial strength of Bank Hapoalim – the leading financial institution in Israel. With a footprint in the largest U.S. metropolitan areas, we are committed to creating innovative funding solutions for your short– and long-term needs and providing convenient banking and liquidity products for your everyday business needs.
www.bhiusa.com BHI is a registered service mark of Bank Hapoalim B.M. Member FDIC. Deposit accounts offered by the New York Branch are fully insured by the FDIC to the maximum extent permitted by law. Deposit accountsoffered by the Americas Tower Branch and Plaza Branch are not FDIC insured.
COMMERCIAL CORNER
Gregory Kraut Gregory Kraut Co-founder and CEO of KPG Funds
G
regory Kraut is the co-founder
Who inspires you and why?
force. We collaborate with top designers
and CEO of KPG Funds, a fully
There are several people who inspire me, but
to deliver our tenants a unique but functional
integrated real estate investment
the largest inspiration in my life was my high
bespoke workplace experience. KPG over-
platform at which he oversees
school English teacher Mr. Rolenhagen. He
sees each project through design, develop-
the strategic direction of the company, asset
came to school every day with a smile on his
ment, management and leasing with preci-
management and leasing. He also is respon-
face and the desire to help every student in
sion and direct management. KPG targets
sibe for maintaining and developing new
his classroom. I want to come in every day
architecturally significant but aging Class B
client and capital partner relationships.
and know that I will help those around me
and C properties that are underfunded which
and be able to smile throughout the day. I be-
require significant capital and modern-day
The company’s mission is to buy and reinvest
lieve in these tumultuous times, the CEO role
design and function.
in value-add, retail and mixed-use proper-
is one where I will do that every day for both
ties. To do this, Kraut and his team target
our employees and partners.
What investment trends are you seeing in New York City? KPG fills an institutional niche in the NYC
capital improvements and strategic re-ten-
What do you think makes KPG unique or different?
anting. Throughout his 20-year career in real
We invest in the high-barrier-to-entry New
ing market. This investment strategy offers
estate, Kraut has represented owners and
York City office building market. We have cul-
strong opportunities to add value and gen-
occupiers in transactions totaling more than
tivated a proven strategy and a robust portfo-
erate high returns. There is trending positive
10 million square feet. Before KPG, Kraut
lio of ultra-luxury boutique office assets that
demand and low supply in the locations and
was the founding principal and managing
have weathered the storm through market
type of product that we offer.
director of Avison Young’s New York office.
cycles. Focusing on high-demand areas and
Prior to Avison Young, Kraut was a senior
building luxury boutique office products has
executive at CBRE, the world’s largest real
enabled us to maintain above market de-
What advice do you have for someone starting out in real estate?
estate services company. Kraut graduated
mand while outperforming our underwritten
Where you are right now isn’t where you’ll
from George Washington University in 1997
rents and our market competition.
end up, and just keep moving forward. Where
underperforming, non-stabilized properties in New York City to generate value through
boutique, non-commodity office build-
you are in this moment isn’t where you’ll be
with a Bachelor of Arts degree in the field of International Relations and Affairs.
How important is design in creating value in office properties?
forever. Things will change. Something out
How long have you been in the industry?
Design sits at the apex of KPG’s “Inspired
know, your feet will land somewhere bet-
I have been in the New York City commercial
Luxury Product.” Our design-forward brand
ter. The key is to always move forward, no
real estate industry since 1997.
attracts and retains the modern-day work-
matter what.
126 MANN REPORT | JUNE & JULY 2022
of your control will happen. Next thing you
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
THE RETURN OF GLOBAL REAL ESTATE The result after a global pandemic that saw most of the real estate industry take a pause: global surges as the world reopens again. Not surprisingly, year-over-year transaction volumes, appraisals and more are seeing stratospheric increases around the world. Look at an industry as it comes roaring back — you can see it by the numbers.
$3.741 trillion
20%
The projected size of the global real estate market, an increase of 10.5% over 2021
U.K. market valuation appraisals, at their highest level in 10 years as of November 2021, up 6% from November last year and 20% higher than November 2019
(Researchandmarkets.com Real Estate Global Market Report 2022)
(Knight Frank)
35%
74%
Increase in Q1 2022 office leasing volumes over Q1 2021
The increase in residential transaction volumes in Dubai in 2021, led by villa and townhouse developments.
(JLL Global Real Estate Perspective May 2022)
Your Square Footage and Dollar Values, Delivered.
128 MANN REPORT | JUNE & JULY 2022
(Savills)
$54.4 billion
$1.3 trillion
Volume of foreign buyer residential purchases from April 2020 through March 2021, 2.8% of the $1.96 trillion of the dollar volume of existinghome sales
Global volume of completed sales of commercial properties in 2021, 59% higher than the 2020 total and 22% ahead of the previous peak in 2019, according to MSCI Real Capital Analytics (RCA)
(National Association of Realtors, International Transactions in U.S. Real Estate)
(2022 Emerging Trends in Real Estate Global Outlook, PwC and Urban Land Institute)
A new perspective opens a world of possibility. Many of the biggest names in New York trust Kramer Levin for real estate and land use counsel. The reason is simple: We have the experience to view matters from all sides Xh\ Ƅh\ mieonbihm ina]lm ip]leiidΫ Qa] l]moenm mj]Xd ^il na]gm]ep]mΫ T] aXp] jeXs]\ key roles in many iconic projects, including Hudson Yards, Central Park Tower and the Moynihan Train Hall at Penn Station. Let us show you how results-oriented counsel can make your next project a reality. www.kramerlevin.com
Kramer Levin Naftalis & Frankel LLP 1177 Avenue of the Americas, New York, NY 10036 212.715.9100
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MR March 2022 COVER.indd 3
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3/1/22 9:14 AM
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