Mann Report May 2022

The Retail Issue

New York Los Angeles Miami Hamptons Las Vegas

Pacsun: Innovating on Multiple Platforms What to Know About Crypto Real Estate Transactions New York Landmarks Conservancy Announces the Lucy G. Moses Preservation Awards

Area15: The Future of Experiential Retail?

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MASTHEAD PRESIDENT/ CEO Jeff Mann

ART Art Director

ONE MANN’S OPINION

Krystal Peguero EDITORIAL Editor

Lead Graphic Designer

Debra Hazel

Ran Jing

Associate Editors Lauren D’Errico

Cover Photography Las Vegas Magazine

Lauren Schuster DIGITAL MEDIA

We’re back! At least meetings are.

As I write this in late April, I’m preparing to attend FashionGo, my first in-person conference in quite a while, for Mann Report’s sister magazine, Fashion Mannuscript, early this month in Palm Springs, California. Then MR’s editor, Debra Hazel, will be at the return of ICSC’s conference in Las Vegas right before Memorial Day.

Copy Editor Helen Ventura

Editors Lauren D’Errico

Of course, we’ve all attended the occasional dinner, gala or seminar — and Zoom and other video calls aren’t going away. But there’s just something special about traveling to

Director of Communications

Debra Hazel Penelope Herrera

another location and immersing yourself in sessions, meetings and more. You just can’t

and Marketing Penelope Herrera

Cheri Phillips Lauren Schuster

replace the benefits of a face-to-face meeting, the accidental bumping into someone

Director of Newsletter

Social Media Manager

Division Cheri Phillips

Le’Trice DeShon

Director of Special Events

Web Developer CS DesignWorks

Mirusha Damiani

and catching up and the energy a large gathering brings. I literally can’t wait.

In these pages, you’ll see images from the National Realty Club’s spring event, where a fine time was had by some of the great leaders in real estate and we were treated to a terrific speech by Robert DeSalvio. Thanks to my team at Mann Publications for going above and beyond and the folks at Versa to ensure our success.

CONTRIBUTORS Director of New Business Development

C. Jaye Berger Frank DeLucia

Kelly Sen

Natalie Diaz Fabian Fernandez Faith

BUSINESS Technology Consultant

Joe Jesuele Kris Kiser

Joshua Fried

Pam Knudsen Shaun Pappas

Distribution Mitchell’s Delivery

James M. Philbin Phillip Ross

Service

Benjamin Siegel Ian Siegel Carol A. Sigmond Daniel Smith Curtis Williams

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The opinions expressed by our columnists are not reflective of the views and opinions of the publisher or editorial staff of Mann Report.

Publication of such views and opinions does not constitute endorsement by Mann Report. Any reproduction, including but not limited to internet usage, is prohibited without the express written permission of the publisher.

“Perhaps every generation thinks of itself as a lost generation and perhaps every generation is right.”

— Erica Jong

EDITOR’S LETTER I love retail. I always have, even long before I began writing about it. So, the opportunity to create a new publication about all things retail, from fashion to logistics to global development is the thrill of my professional life.

So, exhausting as it can be, the annual May ICSC conference has always been a highlight of the year: reconnecting with old friends, meeting with potential clients and learning about new trends driving this ever-evolving industry. It will be exciting to finally be back at the first full conference in three years due to the pandemic.

Just as exciting is our cover feature, featuring a new, flexible retail entertainment complex: Area15, located in Las Vegas and expanding to Orlando and beyond. Unlike other complexes, Area15 combines both permanent and rotating tenants; there’s always a new reason to visit. Elsewhere, look at some other new retail, including Collette, which brings re-commerce to home furnishings, and Pacsun’s ventures into the metaverse. Our contibutors offer their views on apparel trends, technology and more.

There’s a lot going on, and a lot more to come. Email me at either dhazel@mannpublications.com or debra@debrahazelcommunications.com to set up a meeting at ICSC — I can’t wait to hear your stories.

VISIT US AT mannpublications.com FOLLOW US ON INSTAGRAM @mannpublications

MAY 2022

50

The Retail Issue

New York Los Angeles Miami Hamptons Las Vegas

COVER FEATURE

Pacsun: Innovating on Multiple Platforms What to Know about Crypto Real Estate Transactions New York Landmarks Conservancy Announces the Lucy G. Moses Preservation Awards

Area15: The Future of Experiential Retail?

By Debra Hazel

COVER FEATURE

Area15: The Future of Experiential Retail?

Area15: The Future of Experiential Retail?

offers oddities and

who are then in a

that are “off the ch

“There’s context to

something you d

noted. “Brands ha

R

fining who they we emember the concept of retail-

but the physical n

tainment, the merger of retail

were selling. Onl

and showmanship that resulted

Bull, Nike. But in m

in stores from major media com-

Now you see a tr

panies such as Warner Bros. Studio Store

now sell more tha

and Disney Store and then evolved into

value. On top of th

entire complexes?

— the ax-throwing

which distills a p The newest iteration of the concept is even

most innovative w

more elaborate — and adaptable: Area15, a 200,000-square-foot complex (and an addi-

Unlike other retailt

tional 35,000 square feet for tenant Illuminar-

where visitors co

ium) that opened in Las Vegas in 2020, and already has announced plans to expand to Orlando by 2024.

As a partner in the New York City-based family real estate firm Fisher Brothers, Winston

Area15’s first location in Las Vegas

Fisher saw an opportunity for a use for 86 acres of land he and partner Benneville Stu-

Area 51, a highly classified U.S. Air Force in-

ible facility that could combine multiple

dios owned in Las Vegas.

stallation in Nevada, a tribute to Fisher Broth-

entertainment, conference, dining and

ers’ founding in 1915 and a tip of the hat to

retail uses, some of which can be switched

“Area15 is a standalone business founded by

the property’s location adjacent to Interstate

out periodically.

myself and Benneville Studios,” he said. “We

15, Fisher said.

“We’re a content box, and a content district,”

spent two-and-a-half years dreaming, and Area15 was born.”

National Realty Club Reunites Amid Transformation

The district now occupies 20 of those acres,

“The name sticks with you. It evokes excite-

Fisher said. “The world has moved for a

ment,” he said. “And we curate excitement

variety of reasons: technology, whether it’s

and uniqueness.”

online shopping and digital connections. But people are consuming physical products, but

with more development planned. The name derives from its initial location, a twist on

20

22

23

56

58

64

Pacsun: Innovating on Multiple Platforms

By Debra Hazel

A case in point is

Wild Muse. Both b

16

Shawmut Design and Construction Celebrates Women in Construction Week

choose what to co

benefited greatly

By Debra Hazel

EVENTS

You come in for th

Business Council of Westchester Discusses the State of the Economy

Collette Luxury Home Consignment Lands a Store on Madison Avenue

The team conceived of an immersive, flex-

it’s how they’re consuming physical product.

HGAR, OneKey MLS Host Virtual Panel on New York’s Second-Home Market

The Hospitality Tech Transformation

By Pam Knudsen

FEATURES

66

Before a Fall: Commercial Building Stair Safety

By Del Williams

68

And the Lucy Goes to: New York Landmarks Conservancy Announces 2022 Lucy G. Moses Preservation Awards

COVER FEATURE

72

You come in for the experience and then you

then never feel the need to return, Area15

choose what to consume.”

constantly has new programming with a core of longer-term leases.

A case in point is tenant Kappa Toys, which offers oddities and glowing items, which has

Development moved fairly smoothly — until

benefited greatly from experience guests

COVID-19 upended the opening schedule.

who are then in a happy mood to buy, as is

Area15 opened in September 2020, with

Wild Muse. Both boast sales per square foot

none of its tenants ready, Fisher recalled.

that are “off the charts,” he reported.

“It was probably the ultimate soft opening,” “There’s context to what they’re consuming,

he said. “I almost feel like the company didn’t

something you didn’t see in malls,” Fisher

hit its stride until last June, when capacity

noted. “Brands have spent so much time de-

restrictions were lifted as the tenants were

fining who they were in this media landscape,

starting to open.”

Winston Fisher

nent gallery for large-scale artwork), Birdly

but the physical never lived up to what they were selling. Only a few have: Apple, Red

The complex is built as a series of immer-

Virtual Reality Experience, the first Emack

Bull, Nike. But in many other places, it didn’t.

sive districts, some built around permanent

and Bolio’s location in the West and Wild

Now you see a transformation; companies

tenants, with other tenants and experiences

Music Boutique (a bazaar featuring unique

now sell more than a product, but a brand

rotating. Curating that content box with both

accessories, apparel, art and health and well-

value. On top of that, you get entertainment

permanent and short-term tenants and expe-

ness products). A key feature is Oddwood,

— the ax-throwing or the immersive distillery,

riences is the key.

a bar centered around a 23-foot Japanese

which distills a product and sells it in the most innovative way.”

Unlike other retailtainment stores or facilities, where visitors could come once or twice,

Stock Photos vs. NFTs: Which is the Better Choice?

By Joe Jesuele maple tree built by Color + Light. Tenants

“We curate uniqueness: best-in-class ten-

include Dueling Axes, an axe-throwing facil-

ants, really good food, good drinks,” he said.

ity; Five Iron Golf, an indoor golf simulator;

Haley’s Comet Zipline ride and Meow Wolf’s

Initial tenants included Art Island (a perma-

Omega Mart, an immersive art experience.

Even the dining can be immersive. Recently opened is Lost Spirits’ fine dining restaurant

from Chef Taylor Persh, “20,000 Leagues

Under the Sea,” a 16-course dining experi-

ence inspired by, and named a"er, the Belle Époque novel, which takes diners through Jules Verne's iconic book reimagined as an immersive restaurant. With just one seating

76

What to Know About Crypto Real Estate Transactions

By Shaun Pappas and Benjamin Siegel

of 12 people weekly, all meals are personally prepared by Persh. In a Georges Mélièsinspired dining room, diners are offered

NEWS BRIEFS 28

Commercial News

32

Residential News

36

Management News

40

Tech Talk

44

Breaking News

exotic dishes including uni crème brûlée and nori bonbons. Outside the dining room, guests are free to enjoy the immersive shows and performances within Lost Spirits which include acrobats, burlesque performances, “20,000 Leagues Under the Sea” restaurant

jazz singers and clowns.

ARCHITECTURE

106

Brickless Developers Group Launches Construction on Virtual World of Metaverse and Reality

108

Kimmerle Group Office Expands and Renovates 650 From Rd. in Paramus

106

COLLEGES

112

STEMming the Sprawl: Mt. San Jacinto Community College Breaks Ground on Tech Facility

DEPARTMENTS

6

One Mann’s Opinion

8

Editor’s Letter

82

116

124

126

The Articles

Crossword

Executive Changes

Commercial Corner: David Figotin, founder of Fimida Enterprises

112 128 By the Numbers: Retail Resurrection

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PHOTO EVENT

National Realty Club Reunites Amid Transformation

T

he National Realty Club began its transformative journey

Mann Publications CEO Jeffrey Mann’s father Irving Mann and many

of becoming a real estate powerhouse with an event that

more real estate icons. It’s growing by leaps and bounds in just a short

gathered some of the leaders in real estate, held at Versa.

period of six months, Jeff Mann reported.

Keynote speaker Robert DeSalvio, president of Genting

America’s East/Resorts World Casino, a!racted an A-list crowd, who

“We’ve completely restructured the organization and have a super

also enjoyed an exquisite menu with an open bar of top-shelf liquor,

group of almost 200 members, all actively involved in building the

music, a raffle, the opportunity to promote their businesses on the

organization,” he said. “Our board of commi!ees have all been formed

many screens within the club and, of course, networking.

and they are all working in various areas to make the National Realty Club strong as we help build New York back to what it was.”

It’s come a far cry from the days when the NRC was started in 1947 by Harry Helmsley, Aaron Gural, Herb Tenzer, Irving Schneider, Larry Wein,

Meghan Taylor, Resorts World New York City and Robert DeSalvio, Genting Americas East/Resorts World New York City

16 | MR

May 2022

Photos by Howard Wechsler

Robert DeSalvio, Genting Americas East/Resorts World New York City; NRC President Jeffrey Mann, Mann Publications and Meghan Taylor, Resorts World New York City

mannpublications.com

PHOTO EVENT

01. NRC President Jeffrey Mann, Mann Publications and Jeffrey Gural, GFP Real Estate 02. Ed Wilkin, Wilkin Gu"enplan; Rob Pearson, OHD Partners and Russell Fishkind, Saul, Ewing, Arstein & Lehr 03. David Levine, The PAR Group and Cara Faske, Pace Advertising

mannpublications.com

01

04

07

02

05

08

03

06

09

04. Sco" Galin, Handro Properties 05. Dylan Hamer and Eli Levenfeld, Northmarq Capital 06. Janet DelPozzo and Mike Zenick, Champion Elevator Corp.

07. J o n a t h a n Ste r n , M e r i d i a n Ca p i t a l G ro u p a n d D a re l l H a n d l e r, Handro Properties 08. M i t t i L i b e r s o h n , Av i s o n Yo u n g a n d J o h n B r o x m e y e r, C o o p e r Electric Supply 09. Matthew Berry and Susan Aminov, Republic Bank

May 2022

17 | MR

PHOTO EVENT

01

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02

05

08

03

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1. Bob Knakal, JLL and Lisa Simonsen, Douglas Elliman 2. Ryan Glasco, Jason Hoffman and Emily Altman, Janover 3. Darell Handler, Handro Properties and Grant Greenspan, Kaufman Organization

18 | MR

May 2022

4. NRC President Jeffrey Mann, Mann Publications and Jonathan Stern, Meridian Capital Group 5. Robert Romanoff, Absolute Electric; Danny Marshall and Chad Brown, Katz Radio 6. NRC President Jeffrey Mann, Mann Publications and Mi"i Liebersohn, Avison Young

7. Jeffrey Gural, GFP Real Estate: Jay Neveloff, Kramer Levin and Robert DeSalvio, Genting Americas East/Resorts World New York City 8. Christine Ketcham, Investors Bank and Carol Hasenstab, Republic Bank 9. Tom Nastos, FashionGO and NRC President Jeffrey Mann, Mann Publications

mannpublications.com

PHOTO EVENT

1. Lance Wilson, Newmark 2. Adam Levy, Adam Michael Levy P.C.; NRC President Jeffrey Mann, Mann Publications and Gabe Hernandez, Design Republic Partners Architects 3. Krystal Peguero and Kelly Sen, Mann Publications; Robert Romanoff, Absolute Electric; Le’Trice DeShon, Lauren D’Errico and Penelope Herrera, Mann Publications

mannpublications.com

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04

07

02

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4. Robert Romanoff, Absolute Electric 5. Saul Lifrieri, Protective Countermeasures Inc. and Ryan Fridolfs, Meridian Capital Group 6. Sheryl Simon, Susan Aminov and Carol Hasenstab, Republic Bank

7. Christina Nastos and Tom Nastos, FashionGo 8. Steven Sladkus, SSRGA 9. Dean Palin, Palin Enterprises and NRC President Jeffrey Mann, Mann Publications

May 2022

19 | MR

PHOTO EVENT

Team members from Marymount Manha!an College, Shawmut, Dewing Schmid Kearns Architects + Planners and Works-in-Progress Associates presented the women-led Marymount Manha!an College, Judith Mara Center for Visual Arts project in Shawmut’s New York office during WIC Week.

Shawmut Design and Construction Celebrates Women in Construction Week 20 | MR

May 2022

mannpublications.com

PHOTO EVENT

S

hawmut Design and Construction

City of Boston Mayor Michelle Wu

This year marks Shawmut’s seventh year

participated in Women in Construc-

participating in WIC Week; throughout the

tion (WIC) Week with virtual and

week Shawmut employees and partners

in-person celebrations in all 11 of

engaged in open and honest discussions

its offices nationwide. The firm’s WIC Week

about how the industry can increase female

activities were developed to align with this

representation in the workplace. Highlights

year’s theme of “Envision Equity” and con-

from the week include the virtual opening

sisted of insightful and engaging employ-

ceremony with remarks from Boston Mayor

ee-led sessions including guest speakers,

Michelle Wu and Shawmut CEO Les Hiscoe;

panel discussions, project presentations and

a presentation on the Marymount Manhat-

jobsites tours.

tan College Judith Mara Center for Visual Arts project in New York that is targeting to

With only 10% of the construction industry’s

while this week is a time to celebrate the

achieve 20% female trade workers on-site

workforce occupied by women, WIC Week

achievements and progress we have made

through a pilot partnership with Nontradi-

aims to celebrate these women and drive

as a company and as an industry, it is also

tional Employment for Women (NEW); a job-

conversations to ignite action about increas-

important to recognize how much more work

site tour from the assistant superintendent

ing representation industrywide. Shawmut

needs to be done,” said Les Hiscoe, CEO at

of 843 North Spring St., a commercial build-

is invested in creating equity company-wide

Shawmut Design and Construction. “That is

ing project that will be one of the largest

and leads the industry with a workforce com-

why it is essential to operationalize this work

cross-laminated timber office buildings in

prised of 33% women, with 24% of leadership

and encourage diversity of thought through-

Los Angeles and a panel with two members

roles held by women.

out the year to help women and all histor-

of Shawmut’s board of directors, Kim Bishop

ically marginalized people in construction

and Liyuan Woo.

“We are proud to lead the industry with our

achieve success in their organization and in

diversity, equity and inclusion efforts and

the industry.”

Photos courtesy of Shawmut

Katelyn Royce, assistant superintendent at Shawmut, led a jobsite tour of 843 North Spring St., a commercial building project that will be one of the largest cross-laminated timber office buildings in Los Angeles.

mannpublications.com

May 2022

21 | MR

PHOTO EVENT

Business Council of Westchester Discusses the State of the Economy

I

n a webinar hosted by the Business Coun-

Panelists discussed the state of Westchester real estate.

cil of Westchester (BCW), area developers offered viewpoints on the competitive advantages of building in Westchester

County, New York and the challenges in getting projects approved.

The webinar discussed positive municipal leadership in the cities of New Rochelle, White Plains and Yonkers that has enhanced these communities’ ability to compete with New York City for residents, jobs and investment. Speakers were: William Balter, president, WBP Development LLC and Griffon Construction LLC; Louis Cappelli, founder, Cappelli Organization and chairman and

Park in downtown New Rochelle to RXR,

successful. She described her vision for af-

CEO, LRC Construction; Joe Co!er, president,

and will partner again with RXR to begin

fordable housing as a product that looks like

National Resources; Rella Fogliano, CEO,

construction in June on Hamilton Green, a

luxury housing.

Macquesten Development; David Garten,

four-year redevelopment of the former White

senior vice president, corporate affairs, RXR

Plains Mall, Capelli said.

RPW Group Inc.

Garten noted that the region has underbuilt housing, causing an affordability crisis. RXR’s

and Andrew Weisz, executive vice president, Cotter discussed how National Resources

143-unit affordable housing project in Brook-

is building the largest film and movie studio

lyn has received 11,000 applications.

“These leaders in Westchester County are

complex in the Northeast in downtown Yon-

creating new jobs, new opportunities to live

kers. At the former IBM East Fishkill site, Na-

Weisz said RPW Group’s greatest challenge

and to work and to play and adding to the

tional Resources repurposed the property for

in past years was housing for existing and

vibrancy of Westchester County,” said BCW

food manufacturers and is building a back lot

prospective office tenants’ employees. Now

President and CEO Marsha Gordon.

operation for film and television production.

prospective tenants are visiting office build-

Housing is urgently needed, he said.

ings with maps indicating nearby housing, retail and amenities. Weisz said RPW Group

Balter described WBP’s affordable- and workforce-housing projects, including re-

Fogliano said that she was initially wary of

is focused on converting office parks into

developing a former YMCA in Tarrytown into

building an affordable workforce housing

mixed-use properties that include housing

senior housing and a municipal garage.

next to the Mount Vernon West Station,

and retail, such as 300 units of new housing

but the demand for apartments by the

at 1133 Westchester Ave. expected to open

Metro-North Railroad made the development

in September.

LRC Construction has delivered One Clinton

22 | MR

May 2022

mannpublications.com

PHOTO EVENT

HGAR, OneKey MLS Host Virtual Panel on New York’s Second-Home Market

A

s workers return to offices and New York City reopens again, New Yorkers are eyeing second

Speaking at the “Ge!ing the Deal Done: Seeking Second Homes,” webinar were (top row, from le"): Jason Karadus, Corcoran Country Living; Katherine Jennings, Houlihan Lawrence and Brian Tormey, TitleVest. (Bo!om row, from le"): Robert Nelson, Brown Harris Stevens; Randy Florke, The Rural Connection and Richard Haggerty of HGAR and OneKey MLS.

homes closer to the city. Other

buyers are seeking weekend retreats and “partnering to purchase” in the Hudson Valley and The Hamptons. What’s in store for these markets, already booming as people sought havens during the pandemic? Leading industry experts honed in on the ho!est locales and how best to manage regional transactions at a virtual panel hosted by the Hudson Gateway Association of Realtors, Inc. (HGAR) and OneKey MLS. “Getting the Deal Done: Seeking Second

“2020 and 2021 have been banner years for

they are buying the ‘idea’ of a place of tran-

Homes in New York” featured Katherine

the entire market, but the second-home mar-

quility, a retreat. That vision is very different

Jennings, branch manager, Millbrook office,

ket has especially benefited from that two-

for everybody.”

Houlihan Lawrence; Randy Florke, founder

year period,” Haggerty said. “Sullivan County

and president, The Rural Connection, Hud-

just knocked it out of the park, with a 35.6%

The panel weighed in on how the work-

son Valley/Catskills; Jason Karadus, owner

increase in the number of transactions and a

from-home trend continues to affect the

and principal broker, Corcoran Country

71.5% increase in the median sale price.”

second-home market.

Nelson, executive managing director, Brown

The event was moderated by Brian D. Tormey,

“The pandemic truncated what was already

Harris Stevens for The Hamptons.

NTP, president of TitleVest. The hour-long

happening in the market,” said Florke. “Some

Living, Hudson Valley/Catskills and Robert

discussion included rental trends, regulatory

people were beginning to work from home

Richard Haggerty, CEO of HGAR and pres-

reactions and push-backs on Airbnb; non-

one day a week. COVID-19 validated that. It’s

ident and chief strategic growth Officer of

New Yorkers buying vacation homes; the

not necessary to be in the office five days a

OneKey MLS, the regional multiple listing

uniqueness of small towns and partnering

week. And the pandemic gave many people

service for New York, opened with an over-

with local experts; transaction patterns and

the excuse to do what they wanted to do …

view of the regional housing market. Citing

whether supply will catch up with demand.

to move from the city [to] upstate. Now, as

OneKey MLS data to compare sales trends

the pandemic is receding, people don’t want

of single-family houses from 2019 to 2021,

“The psychology of the second-home buyer

to take their kids out of schools in Rhinebeck

Haggerty pointed to significant increases in

has changed,” Jennings said. “They have a

or Cold Spring to go back to the city. Many

both the number of transactions and median

vision of what they want — they’re not really

have reoriented their lifestyle and I think most

prices in several counties.

buying the ‘brick and mortar’ as much as

are sticking to it.”

mannpublications.com

May 2022

23 | MR

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COMMERCIAL NEWS

Asian Grocer 99 Ranch Market Makes New York Debut in Westbury's Samanea New York Samanea New York, the new retail, entertain-

10,000 unique items from around the world,

ment and dining destination located at 1500

including unique Asian dry groceries, produce,

Old Country Road in Westbury, New York,

premium meats and poultry, seafood, deli

welcomed 99 Ranch Market. A leading Asian

items and baked goods. The market also aims

grocery store chain based in Buena Park,

to bring its Asian culture to Long Islanders with

California, 99 Ranch has 56 stores across the

high-quality Chinese cuisine including dim

U.S., with its new Westbury location its first

sum, barbecue, noodles, cakes and confec-

The grocery originally signed for the complex

on Long Island and in New York State.

tion. An “Eat Up” Food Court is also planned,

in April 2020, during the during the COVID-19

where other new tenants offering Asian cuisine

shutdown. It is the property’s second largest

will join 99 Ranch on the property.

anchor tenant, following Dave & Buster’s.

The 45,602-square-foot space includes over

Photo courtesy of Samanea New York

Adams Announces CARE Strategy to Create Jobs Hubs Across NYC With City Offices New York City Mayor Eric Adams has an-

Brooklyn, which the New York City Depart-

nounced City Agencies Revitalizing the

ment of Social Services (DSS) will occupy.

Economy (CARE), an initiative to create jobs hubs across the city by strategically locating

The new strategy leverages long-term city

city agency offices in key neighborhoods.

commercial leases to brings jobs closer to

Photo by Lifang

communities and catalyze new commercial

ic Development Corporation (NYCEDC),

The initiative launched with breaking ground

development outside of traditional central

the New York City Department of Citywide

on 2440 Fulton St., what it says will be the

business districts. The first phase is the

Administrative Services (DCAS) and devel-

largest-ever commercial building in the

result of a collaborative multi-agency effort

oper the Leser Group. It builds upon work

Broadway Junction area of East New York,

between DSS, the New York City Econom-

NYCEDC began in 2017.

A&E Real Estate Acquires 1080 Amsterdam Ave. from SL Green for $42.5M A&E Real Estate has acquired 1080 Am-

quisition of an SL Green residential property

sterdam Ave., a 20-story elevator apartment

in the past year. A&E also purchased 400

building located in the Morningside Heights

East 57th St. in October 2021 and 400 East

neighborhood in Manha#an. A&E acquired the

58th St. in April 2021, both from SL Green.

leasehold interest in 1080 Amsterdam, which consists of 96 rental apartments, a street-level

Built in 1931, the 90,000-square foot 1080

retail storefront and a professional unit, from SL

Amsterdam Avenue formerly served as staff

Green for $42.5 million, or $443,000 per unit.

housing for St. Luke’s-Roosevelt Hospital before being converted in 2014 by Stonehenge

The off-market transaction is A&E’s third ac-

and SL Green.

Photo courtesy of A&E Real Estate

28 | MR

May 2022

mannpublications.com

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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

Museum of Women to Open This Summer at 480 Broadway KPG Funds (KPG) has leased the retail

The Museum will occupy the lower lev-

space at 480 Broadway to The Museum

el, first and second floors of the former

of Women, with plans to open this sum-

TopShop space

mer. When completed, there will be over 25,000 rentable square feet of over 14

“We are beyond excited to have Museum

immersive and action focused activities

of Women’s first physical location be at 480

for guests to interact with as they roam the

Broadway,” said Museum Founder Abby

Museum of Women, along with a gift shop

Tro!. Josh Berger, managing director at Nor-

and commissary with women-owned and

man Bobrow & Co., represented the muse-

-operated goods.

um; Kraut represented ownership.

Photo courtesy of KPG Funds

Newmark Acquires McCall & Almy Newmark Group Inc. has announced the

life science, industrial and retail sectors. The

acquisition of McCall & Almy Inc., a tenant

organization is led by President and Founder

representation and real estate advisory firm

Bill McCall, who is considered by most of the

in Boston, renowned for expertise in mul-

community to be the dean of Boston’s com-

ti-market corporate and occupier advisory,

mercial real estate industry and is the name-

Bill MCall

strategic consulting, lease administration

sake of the Commercial Broker Association’s

Photo courtesy of Newmark

and project management.

(“CBA”) McCall Leadership Award — the top honor for local brokers, said the company.

valued in excess of $50 billion. Newmark’s acquisition of McCall & Almy expands the

McCall & Almy has built its legacy with a focused advisory approach and notable

Over the past 32 years, the firm’s profession-

firm’s tenant representation and strategic real

expertise in the office, medical, academic,

als have completed over 5,000 transactions

estate consulting in the Boston area.

Artist Hunt Slonem Signs Full-Building Lease at Single Tenant Office Building 595 11th Ave. Celebrated American painter Hunt Slonem

Hunt Slonem,” said Berger. “The fact that he

has signed a 37,151-square-foot lease for the

chose to relocate to this building from Brook-

entirety of 595 11th Ave., a single-tenant of-

lyn speaks to Manhattan’s continued ability

fice building located in Manha!an’s Far West

to a!ract creative tenants.”

Side. Newmark’s Managing Director Nick

Photo courtesy of Newmark

Berger represented the asset owner, Marin

595 11th Ave. is a three-story, 37,151-square-

Management, on the transaction.

foot, single-tenant creative office building

sized windows providing abundant natural

with additional usable basement and roo"op

light, skylights on the top floor and a unique

“595 11th Ave. is a one-of-a-kind creative of-

space. The building features trendy aesthet-

central atrium and staircase leading up to a

fice building perfect for a renowned artist like

ics, above-standard ceiling heights, over-

useable roof deck with 360-degree views.

30 | MR

May 2022

mannpublications.com

At Anchin, we have a large team of real estate experts dedicated to helping our clients grow.

A well-designed and properly executed tax strategy can maximize investor returns and fund additional acquisitions. Our clients include those with growing portfolios as well as some of the largest developers in New York City.

Marc Wieder, CPA, Partner Real Estate Group marc.wieder@anchin.com 1375 Broadway New York, NY 10018

212.840.3456

Robert Gilman, CPA, Partner Real Estate Group robert.gilman@anchin.com anchin.com @anchinrealest

RESIDENTIAL NEWS

HAP Investments Achieves the First TCO for 225 West 28th St. HAP Investments, a New York-based inter-

al units. Over 60% of the units were slated for

national real estate investment and develop-

immediate occupancy before the building’s

ment company, announced the achievement

official opening and seeing rent records for

of the first temporary certificate of occupancy

price per square foot. The new development

(TCO) for its 225 West 28th St. development

is expected to receive its final certificate of

in New York City. The first tenants began oc-

occupancy (CO) in early fall.

Photo courtesy of HAP Investments

marble countertops and integrated Miele ap-

cupying the building on April 20.

Each residence emphasizes cityscape views

pliance packages. Residents will also enjoy

Located in Chelsea, 225 West 28th St. stands

and sleek designs while featuring high-end

unrivaled access to a 60-foot-long swimming

20 stories tall and comprises 112 deluxe rent-

finishes such as custom white oak cabinetry,

pool, yoga room and a state-of-the art gym.

The Ford Group Joins Corcoran Global Living’s Central Ohio Operation Corcoran Global Living, an independently

Serving the greater Columbus/Central Ohio

owned and operated affiliate of Corcoran

area, The Ford Group specializes in suburbs

Group LLC, has welcomed The Ford Group

and exurbs in the south and west of Colum-

to its Central Ohio region. Led by Clint Ford,

bus (Grove City, Galloway, Hilliard, Dublin,

the team includes Amanda Ford, Katie Gen-

Commercial Point and South Bloomfield).

Clint Ford Photo courtesy of Corcoran Global Living

sler, Jason Wright, Ryan Hannigan, Kenny Spangler and Kyler Denbow. Collectively, The

Columbus is one of the fastest growing real

a breadth of options from the city to suburbs,

Ford Group has a broad range of talent and

estate markets in the country with the tech-

from exurbs to rural communities, all with

insights that facilitate real estate transactions

nology, medical and insurance sectors grow-

relatively easy commutes to other areas in

into a five-star level of service.

ing year over year. The Columbus market has

Central Ohio.

Florida Realtors Expands Tech Helpline to 725K Members Florida Realtors’ Tech Helpline continues its

the go. Available for iPhones and iPads in the

expansion with the recent addition of four

Apple App store, the new app also is availa-

Realtor organizations and more than 11,900

ble for Android devices via Google Play.

members in just 98 days. The tech support service is now accessible by 725,000 mem-

The additions include the CCIM Institute

bers across the U.S. and Canada.

(7,923 members), Northeast Tennessee Association of Realtors (1,654 members), Heart-

In March, Florida Realtors’ Tech Helpline

land Realtor Organization (1,371 members)

debuted its mobile app that allows agents to

and Three Rivers Association of Realtors (962

connect quickly to a tech advisor while on

members), both in Illinois.

32 | MR

May 2022

Margy Grant, Florida Realtors CEO Photo courtesy of PRNewswire

mannpublications.com

Absolute Electrical Contracting of NY services commercial, industrial, residential and retail clients.

Our construction division has the ability to do any task that is required of an electrical contractor.

Our low voltage division provides electronic security, voice & data, fiber solutions and fire alarm installations for any size project.

The project management team has over 100 years of experience.

Robert Romanoff, President 307 West 38th St., Suite 1301, New York, NY 10018 917.693.5416

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RESIDENTIAL NEWS

Kriss Capital Funds a $45M Inventory Loan on The Oosten Condominiums in Williamsburg Kriss Capital has provided a $45 million con-

the borrower, to secure the inventory loan

do inventory loan to Xin Development Group,

through Kriss Capital, a New York-based

the developer of the Oosten/The Reserve,

real estate bridge lender with a focus on

a collection of luxury new condo units, lo!s

residential ground-up development, reno-

and townhomes available at the South Wil-

vation, adaptive reuse and condo inventory

liamsburg waterfront development.

debt strategies.

Photo courtesy of Kriss Capital

three-bedroom units, lofts, duplex homes, Vanadium Realty LLC, a Manhattan-based

Designed by Dutch architect Piet Boon,

penthouses and townhouses that feature

real estate development and investment

The Oosten is a 216-unit condominium at

spacious floor plans, private outdoor areas

firm, headed by Stephen Muller, represented

429 Kent Ave. The Reserve collection offers

and/or private parking facilities.

PulteGroup Tests Smarter, Healthier and More Sustainable Homes at America’s First Solarpowered Town Homebuilder PulteGroup has built a living

cially available, advancements in sustainable

laboratory in Fort Myers, Florida to explore

new home technologies and innovations.

how homeowners will live in the not-so-

These models include integration with the

distant future. Located on “Innovation Way”

new, all-electric Ford F-150 Lightning ve-

within its Babcock Ranch development,

hicle to create backup power and energy

how the Ford Intelligent Backup Power sys-

America’s first and largest solar-powered

management solutions.

tem of the F-150 Lightning can provide the

Photo courtesy of PRNewswire

home with power for up to three days during

town, PulteGroup unveiled two model homes that, while not yet for sale, are testing the

At its homes on Innovation Way, PulteGroup

an outage, or up to 10 days when used in

latest, and in some cases, not yet commer-

is collaborating with Ford and Sunrun to test

conjunction with rationing or solar power.

Coldwell Banker Warburg Partners with Reuveni LLC Coldwell Banker Warburg, the 126-year-old

of Coldwell Banker Warburg.

luxury brokerage, has formed a partnership with Shlomi Reuveni who, in 2017, founded

“Shlomi, in addition to being the consummate

Reuveni Real Estate, the independent new

new development professional, is a dear

development sales and marketing brokerage.

friend and colleague, and I cannot wait to see

The partnership, under the name Reuveni

the value we add to our businesses by work-

LLC, will continue to operate as a separate

ing together,” said Frederick Warburg Peters,

line of business, focusing on brokerage,

president of Coldwell Banker Warburg.

34 | MR

May 2022

manage Reuveni LLC’s growing resale and leasing businesses. Additionally, Reuveni will

sales and marketing of new development projects, and will function as an integral part

Frederick Warburg Peters and Shlomi Reuveni Photo courtesy of Coldwell Banker Warburg

Going forward, Coldwell Banker Warburg will

work with the firm’s agent recruitment efforts.

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MANAGEMENT NEWS

LeChase Construction Services Acquires Sano-Rubin LeChase Construction Services LLC, one of the

its plan for long-term growth in the area. The

nation’s top contractors with 11 offices across

addition of Sano-Rubin will allow LeChase to

the East Coast, is expanding its presence in

pursue a wider range of projects in its core

New York’s Capital Region, acquiring Sano-

markets, which include health care, edu-

Rubin Construction Services, a family-operat-

cation, industrial, multi-family housing and

ed firm with more than 100 years’ experience

entertainment and hospitality. Sano-Rubin’s

The local operations will be merged over

managing signature projects in the region.

existing clients will benefit from LeChase’s

time. Sano-Rubin will operate as Sano-Rubin,

Financial terms of the deal were not disclosed.

centralized capabilities in preconstruction,

a Division of LeChase, under leadership of its

scheduling and construction technology, the

current president, Dave Hollander. LeChase’s

companies said.

50 employees will operate from their offices.

This move will allow LeChase to accelerate

E m p i r e S t a t e R e a l t y Tr u s t A n n o u n c e s Community Solar Project in Harrison Empire State Realty Trust announced

The rest of the credits will be available to

plans for a community solar project at its

residents to share in the solar project’s ben-

287,351-square-foot office property at 500

efits, which include electricity cost savings.

Mamaroneck Ave. in Harrison, New York.

To be completed at no cost to ESRT, the pro-

The property improvement will serve as a

ject will feature a new parking canopy solar

new revenue source, contracted for the next

array that will provide year-round elemental

The project is set to produce more than

25 years, with approximately 40% of the

shelter for roughly 500 vehicles, an 8.2-

double the building’s annual energy usage.

monetary credits generated by the project

MWh battery storage system and approxi-

ESRT’s sustainability goals, include a target

allocated to powering the Westchester of-

mately 80 electrical vehicle (EV) charging

of net-zero carbon emissions for its entire

fice building.

stations for tenant convenience.

portfolio by 2035, the company said.

Photo courtesy of PRNewwire

Reddy Launches Management Company for Commercial Assets Under 25,00 Square Feet Responding to a gaping hole in the small com-

operation services, including in-house handy-

mercial building services space, Laura Reddy

man repairs and maintenance, record keeping,

NCIDQ, CEO of NuZine — a New York-based

supervision of all building systems, security su-

interior design and project management firm

pervision, cleaning, tenant move coordination,

specializing in commercial uses and capital

renovations and Local Law 97 oversight.

improvements up to 50,000 square feet —

Laura Reddy Photo courtesy of Reddy Management Co.

has launched aNu Facilities Company, offering

The firm’s services include an exclusive

full-service property management for com-

leasing team through Savi# Partners and in-

The company will provide 24/7 service that

mercial properties under 25,000 square feet.

house design, architecture and project man-

offers practical and cost-effective results

aNu provides the full range of facilities and

agement services through NuZine.

within applicable laws and buildings codes.

36 | MR

May 2022

mannpublications.com

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Find out more about our unique relationships with our remarkable customers at IDBstories.com

IDB Bank® is a registered service mark of Israel Discount Bank of New York.

Member FDIC.

MANAGEMENT NEWS

New RICS Framework Puts People at the Heart of Property With a goal of improving building use, sup-

collect data on buildings to meet sustainability

porting more flexible work and pu!ing people

and wellness targets, while also considering

at the center of decisions, the Royal Institution

user experience to go beyond traditional met-

of Chartered Surveyors (RICS) has introduced

rics, the organization said.

the International Building Operation Standard (IBOS), a data-based framework approach to

RICS will provide organizations an interactive,

vestors, advisors and end users in commercial

measure and manage how buildings perform

easy-to-use framework, supported by an as-

and public sectors. By adding a new dimen-

for people specifically.

sessment tool, to measure and benchmark

sion — user experience — IBOS goes beyond

building performance, by collecting consistent

traditional building performance assessments,

data to satisfy the latest needs of occupiers, in-

RICS said.

The standard is designed to help organizations

Shvo Taps Foster + Partners to Revitalize Transamerica Pyramind Luxury real estate investor and developer

additional $150 million will be allocated

Shvo has announced a $250 million reno-

to expanding and upgrading the adjacent

vation of the iconic Transamerica Pyramid

Three Transamerica (545 Sansome) to a

Center in San Francisco by world-renowned

contemporary high-design office building.

architects Foster + Partners. The biggest ren-

The selection of Pritzker Laureate Norman

ovation in its 50-year history, the redevelop-

Foster, known for melding historic architec-

ment is the largest investment in downtown

ture with contemporary design, followed an

store the historic park, while tying all three

San Francisco since the pandemic to one

invited competition.

buildings together through a series of strategic interventions at ground level, creating a

of the city’s most recognizable landmarks, the second tallest building in the city. An

Photo Credit: DBOX

The new design seeks to revitalize and re-

vibrant new destination in the city.

View Smart Windows to Be Installed at 10 World Trade in Boston View’s Smart Windows will be installed at 10

designed by the renowned global archi-

World Trade, a 17-story, 600,000-square-foot,

tecture firm Sasaki, will be enclosed with

nearly $600 million life science and office tower

floor-to-ceiling View Smart Windows. The

under development by Boston Global Investors

windows use artificial intelligence to auto-

climate-proof elevated footprint. Upon com-

(BGI) and their partners in downtown Boston.

matically adjust in response to the sun, max-

pletion, it will be the first building in Boston

Located in the heart of Boston’s Seaport District,

imizing natural light and outdoor views while

recognized for sustainable and resilient land-

10 World Trade was designed to be the healthiest

optimizing building occupant comfort and

scaping with a Sites certification.

and most sustainable building in Boston.

reducing energy consumption from lighting

The building’s swooping geometric shape,

38 | MR

May 2022

Photo courtesy of Globe Newswire

and HVAC. The building will also feature

Suffolk Construction Company is serving as

two acres of sustainable landscaping and a

the general contractor on the property.

mannpublications.com

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

1836 Property Management Unveils Tool to Help Investors Monitor Investment Properties To help clients reach their real estate invest-

REI Monitor delivers the actual return on

ment goals by educating investors on best

equity of an investment property in real time.

practices and ensuring properties are occu-

The tool collects data such as monthly rental

pied and generating revenue, 1836 Property

income, maintenance expenses, vacancy

Management, Austin, Texas announced REI

percentages, debt servicing costs (principal

Monitor, a new integrated solution that collects

and interest payments made to the property),

of ROI, vacancies, maintenance expenses

specific rental property data and provides

property equity and other property expenses

and delinquent income. It also allows users

investors with the ability to evaluate their key

(i.e. leasing fees, property management fees,

to create projections and set new goals. By

performance indicators and track the success of

taxes, etc.). Investors can then monitor and

using REI Monitor, investors can make be!er

their investments.

establish benchmarks for normal ranges

purchasing decisions, the company said.

CitizenM Announces New Venture into the Metaverse CitizenM, a pioneer of affordable luxury

fungible tokens (NFTs) that represent virtual

hotels, announced it will acquire a Land site

real estate in The Sandbox.

in The Sandbox, a leading decentralized gaming virtual world and a subsidiary of

CitizenM will showcase and sell NFT collec-

Animoca Brands, to begin building a hotel

tions that will be commissioned with growing

in the metaverse. CitizenM will be the first

talent in the digital art space. Once the Land

Once the virtual hotel — a location for avatars

hotel group to purchase Land in The Sand-

is purchased, CitizenM aims to finance the

visiting The Sandbox to “Work, Sleep & Play”

box, a metaverse where users can create

build of a hotel in the virtual world through

— is built, CitizenM will collaborate with ad-

and monetize their own distinct worlds and

the sale of an exclusive collection of NFTs

ditional digital artists to create and sell NFTs

game experiences on Lands, which are non-

with real-world rewards (utilities) a!ached.

that can be purchased in the digital space.

Photo courtesy of PRNewswire

Compass Retains Matrix Technology Group for Design/Installation for Technology Infrastructure Matrix Technology Group (MTG), a provid-

The protocols for the Brooklyn Heights loca-

er of technology infrastructure consulting,

tion are consistent with other projects MTG

design and integration, has been retained

has completed for Compass, encompassing

by multinational real estate brokerage

installations in brokerage and back-office

Compass for a fast-track project at its new

units throughout the United States. In addi-

3,100-square-foot sales office, at 124 Mon-

tion to physical cabling, system integration

result in project delays, MTG previously

tague St. in Brooklyn Heights, New York.

and programming, MTG’s contract includes

stocked up on a variety of materials, many

The project entails the design, integration,

24/7 maintenance service.

pertinent to Compass’s specific installations.

It also initiated a program last year training

installation and maintenance of low voltage, audio-visual and electronic security systems.

40 | MR

May 2022

To mitigate supply chain issues that could

in-house technicians in more than one trade.

mannpublications.com

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

DCAP Finance Becomes First Crypto Real Estate Syndicate Legally Recognized as a DAO in U.S. DCAP crypto announced that it is the first real

to be backed by tokenized real estate assets.

estate syndicate decentralized autonomous

To achieve this, it established the first legally

organization (DAO) in the United States.

recognized real estate syndicate DAO in the U.S. A DAO is an organization that operates on

Decentralized Capital Allocation Protocol

a predefined set of rules written into a smart

(DCAP) is a cash-flow asset management

contract and deployed onto a blockchain.

Logo courtesy of PRNewswire

their portfolios across their syndication prop-

corporation operating a cryptocurrency on Binance Smart Chain. Designed to thrive and

The company structures each syndicate into its

erties, their equity token (like a REIT), their

be supported by a growing portfolio of prop-

own DAO and operates an ecosystem where

ecosystem token (redistribution and revenue

erties with stable cash flow, DCAP is a token

accredited investors can seamlessly diversify

share) and their currency (like bitcoin).

HqO Becomes Related Companies’ Digital Tenant Experience Provider Tenant and workplace platform HqO has formed

HqO’s multiple-portfolio deployments, ease

a strategic partnership with Related Companies

of use, user engagement and dedicated and

to power Related’s tenant experience (TeX)

continuous customer support made it the

technology across its commercial and luxury

ideal digital platform for Related’s renowned,

residential portfolio. Elements of the technology

high-touch tenant experience, the two

Related has developed to serve its Fortune 500

companies said.

and neighborhood. The HqO app will offer tenants and residents access to custom

tenants and residents will be incorporated into HqO’s core offering. Related has also made a

HqO will serve as a universal remote con-

programming, resource booking, service

strategic investment in HqO. Its CEO Jeff Blau

trol for Related’s commercial tenants and

offerings, local retail and food and beverage

will join the HqO board of directors.

residents to interact with their building

delivery and more.

Measurabl Launches Real Estate ESG Data, Its First Asset-Level Product Measurabl, the ESG technology for

Real estate is the world’s largest asset class

commercial real estate, launched ESG

and one of its most environmentally and so-

Real Estate Data, an offering allowing

cially impactful, accounting for 40% of global

investors, lenders and other real estate

carbon emissions. Until now, however, it has

capital markets participants to integrate

been difficult for markets to price the totality

investment-grade, asset-level data into

of ESG risks and opportunities into individual

machine-learning models to provide real

their underwriting, market intelligence and

real estate transactions.

time, asset-level energy and carbon estimates on virtually any commercial building

business applications to satisfy disclosure requirements, risk management and other

Measurabl’s ESG Real Estate Data prod-

in the world. It is built on a database derived

investment requirements.

uct leverages its dataset and proprietary

from over 12 billion square feet.

42 | MR

May 2022

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THE EVENTS BREAKING NEWS

20

22

23

26

28

AMC Theatres Acquires Seven Locations and 66 The Jewish Museum 26th Annual Most Corenet Women’s GolfYork Outing and Partners Screens in Connecticut, Upstate New Amazing New York Art & Design Tour with Bees Trees Water Annapolis, Maryland

24

AMC Theatres finalized a deal with Bow Tie

state of Connecticut. In addition, AMC adds

Cinemas to purchase and operate seven lo-

Saratoga Springs 11 in upstate New York and

cations in Connecticut, upstate New York and

Annapolis Mall 11 in Annapolis, Maryland. AMC

Annapolis, Maryland.

intends to retain all theater associates at the

UJA-Federation of New York’s Hospitality Division Honors Ian Schrager

REBNY Hosts Annual Golf & Tennis Outing newly CHIP’s 21st Annual Golf & Tennis Outing were15th Annual Hamptons Happening acquired theatres. expected to open by the end of April.

Supports SWCRF Marquis 16, Royale 6, SoNo 8 (formerly Regent

30

8), Majestic 6 and Landmark 8 join the AMC

Marquis 16, Landmark 8, Majestic 6 and An-

AMC remains in active discussions with other

circuit in the Connecticut market. This acquisi-

napolis Mall 11 were expected to open the

property owners regarding additional loca-

tion more than doubles AMC’s presence in the

weekend of April 21. The remaining theaters

tions, the company said.

Hlth Doubles Footprint at 10 Grand Central Office Tower

Crohn’s & Colitis Foundation

DEPARTMENTS

COLLEGES

Marx Realty, a New York-based owner, devel-

feet to 19,000 square feet on the sixth and

oper and manager of office, retail and mul-

seventh floors. Marx Realty announced it has

tifamily property across the United States,

also signed an additional 15,000 square feet

8

announced that the largest conference organizer for health innovation, Hlth, has signed a 12,000-square-foot lease expansion and seven-year renewal at its 10 Grand

Central officeOpinion tower in Midtown Manha"an.

One Mann’s

80

Hlth expands its footprint from 7,000 square

10

of additional new leases at the property.

68

Having a Voice: Student Input Aids Design of Pratt Residence Photo courtesy of Marx Realty

Led by Jonathan Weiner, the founder of Money 20/20 and a venture partner at Oak HC/

building repositioning.

FT, Hlth relocated from 90 Park Ave. to 10 Editor’s Letter Grand Central in 2019 on the heels of Marx

Marx Realty also announced a 5,212-square-

Realty’s announcement of the Beaux-Arts

foot lease for golf investing company Liv Golf.

86

102

Lower.com Launches HomePass Program to Aid First-time Homebuyers

Tech Talk

The Articles

Executive Changes

Facing historic inventory lows and appreci-

HomePass offers paths for both first time

ation, multichannel fintech firm Lower.com

homebuyers and current homeowners.

has launched HomePass to help homebuyers, particularly first-time homebuyers. The program allows buyers to offer cash up front while financing behind the scenes, guar-

110

112

HomePass for First Time Home Buyers helps

preapproves buyers for a mortgage, allowing them to know what they can afford. When

buyers find homes, they can make an all-

HomePass will assess their current home’s

cash, non-contingent equity, which they can use to pay down the Commercial Corner: offer, financed throughBy The Numbers: HomePass.

Current homeowners seeking to current home and make a down payment on making the buyer’s offer more attractive, in Bruce Schanzer, president and More than Warehouses buyofcan access MoveTrust First for Homeowners a new one. The company will then prep and an atmosphere where nearly half a quarter of CEO Cedar Realty anteeing an on-time close for sellers and

homes are bought by institutional buyers.

Bruce Schanzer

44 | MR

May 2022

and receive the same benefits; in addition,

list the home.

mannpublications.com

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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

New Balance Opens Doors to a World-Class Multi-Sport Facility, The Track at New Balance Global athletic apparel company New Bal-

ery Presents and a beer hall named Broken

ance has launched the Track at New Balance,

Records where visitors can take in the action

a multi-sport facility where Team New Bal-

happening throughout the facility.

ance, professional and community athletes

Photo courtesy of PRNewswire

will train and compete year-round. The ath-

Located across from New Balance’s global

letic center will include a dual terrain indoor

headquarters, The Track at New Balance

track that can be converted to a field, flexible

joins the Auerbach Center (the official prac-

basketball, soccer and volleyball courts,

tice facility for the Boston Celtics), the War-

The Track at New Balance has over 19,000

a sophisticated Sports Research Lab, the

rior Ice Arena (the official practice facility for

square feet dedicated to the New Balance

Roadrunner music venue operated by Bow-

the Boston Bruins) and the Boston Landing

Sports Research Lab.

MBTA commuter rail stop.

Showfields Takes 11,500 SF in Williamsburg for Second NYC Store Experiential lifestyle discovery retailer Show-

with the ambiance of this red-hot Manha"an

fields, self-dubbed “The Most Interesting

submarket,” said Brandon Singer, CEO of

Store in the World,” will open its second New

Retail by Mona. Singer, along with Michael

York City outpost — House of Showfields

Cody and Max Kreinces, represented Show-

at 187 Kent Ave. in New York’s Williamsburg

fields in the lease. “The company is redefin-

neighborhood. Asking rent was $125 per

ing retail and, as such, was keen on bringing

to mimic a six-room home, replete with a

square foot.

its brow-raising brick and mortar experience

living room, dining room, foyer, lounge, kids’

to Williamsburg.”

area and a courtyard emulating the outdoors.

House of Showfields will offer brands includ-

“The curated experience created by Showfields is a journey of discovery in lock step

Photo courtesy of Retail by Mona

Guests will experience a concept designed

ing premium sneaker label Greats.

Union Realtime to Launch ManageSpace Self-Storage Property Management Platform Union Realtime (URT), which offers a suite

for in-store kiosks.

of location intelligence tools for self-storage and the wider real estate industry, this fall

With all its features, ManageSpace delivers

will launch ManageSpace, an end-to-end

10 times the value at half the cost of other

platform that allows clients to manage leads,

options on the market, the company said. inventory to their customer-facing websites,

inventory, payment and reporting in the same tool instead of turning to various third-party

Designed to be used for an array of property

allowing them to book and pay directly on

systems for each part of their workflow. Be-

asset classes, such as marinas, RVs and

the site; 3D visualization that lets users create

cause it’s cloud-based, ManageSpace is ac-

self-storage, ManageSpace offers: Open-

3D blueprints of their facilities; easy reporting

cessible on all devices, eliminating the need

API, which enables users to connect unit

and enterprise-quality revenue management.

46 | MR

May 2022

mannpublications.com

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COVER FEATURE

Area15: The Future of Experiential Retail?

By Debra Hazel

R

emember the concept of retailtainment, the merger of retail and showmanship that resulted in stores from major media com-

panies such as Warner Bros. Studio Store and Disney Store and then evolved into entire complexes?

The newest iteration of the concept is even more elaborate — and adaptable: Area15, a 200,000-square-foot complex (and an additional 35,000 square feet for tenant Illuminarium) that opened in Las Vegas in 2020, and already has announced plans to expand to Orlando by 2024.

As a partner in the New York City-based family real estate firm Fisher Brothers, Winston

Area15’s first location in Las Vegas

Fisher saw an opportunity for a use for 86 acres of land he and partner Benneville Stu-

Area 51, a highly classified U.S. Air Force in-

ible facility that could combine multiple

dios owned in Las Vegas.

stallation in Nevada, a tribute to Fisher Broth-

entertainment, conference, dining and

ers’ founding in 1915 and a tip of the hat to

retail uses, some of which can be switched

“Area15 is a standalone business founded by

the property’s location adjacent to Interstate

out periodically.

myself and Benneville Studios,” he said. “We

15, Fisher said.

“We’re a content box, and a content district,”

spent two-and-a-half years dreaming, and Area15 was born.”

The district now occupies 20 of those acres,

“The name sticks with you. It evokes excite-

Fisher said. “The world has moved for a

ment,” he said. “And we curate excitement

variety of reasons: technology, whether it’s

and uniqueness.”

online shopping and digital connections. But people are consuming physical products, but

with more development planned. The name derives from its initial location, a twist on

50 | MR

May 2022

The team conceived of an immersive, flex-

it’s how they’re consuming physical product.

mannpublications.com

COVER FEATURE

You come in for the experience and then you

then never feel the need to return, Area15

choose what to consume.”

constantly has new programming with a core of longer-term leases.

A case in point is tenant Kappa Toys, which offers oddities and glowing items, which has

Development moved fairly smoothly — until

benefited greatly from experience guests

COVID-19 upended the opening schedule.

who are then in a happy mood to buy, as is

Area15 opened in September 2020, with

Wild Muse. Both boast sales per square foot

none of its tenants ready, Fisher recalled.

that are “off the charts,” he reported.

“It was probably the ultimate soft opening,” “There’s context to what they’re consuming,

he said. “I almost feel like the company didn’t

something you didn’t see in malls,” Fisher

hit its stride until last June, when capacity

noted. “Brands have spent so much time de-

restrictions were lifted as the tenants were

fining who they were in this media landscape,

starting to open.”

Winston Fisher

nent gallery for large-scale artwork), Birdly

but the physical never lived up to what they were selling. Only a few have: Apple, Red

The complex is built as a series of immer-

Virtual Reality Experience, the first Emack

Bull, Nike. But in many other places, it didn’t.

sive districts, some built around permanent

and Bolio’s location in the West and Wild

Now you see a transformation; companies

tenants, with other tenants and experiences

Music Boutique (a bazaar featuring unique

now sell more than a product, but a brand

rotating. Curating that content box with both

accessories, apparel, art and health and well-

value. On top of that, you get entertainment

permanent and short-term tenants and expe-

ness products). A key feature is Oddwood,

— the ax-throwing or the immersive distillery,

riences is the key.

a bar centered around a 23-foot Japanese maple tree built by Color + Light. Tenants

which distills a product and sells it in the most innovative way.”

“We curate uniqueness: best-in-class ten-

include Dueling Axes, an axe-throwing facil-

ants, really good food, good drinks,” he said.

ity; Five Iron Golf, an indoor golf simulator; Haley’s Comet Zipline ride and Meow Wolf’s

Unlike other retailtainment stores or facilities, where visitors could come once or twice,

Initial tenants included Art Island (a perma-

Omega Mart, an immersive art experience.

Even the dining can be immersive. Recently opened is Lost Spirits’ fine dining restaurant from Chef Taylor Persh, “20,000 Leagues Under the Sea,” a 16-course dining experience inspired by and named after the Belle Époque novel, which takes diners through Jules Verne's iconic book reimagined as an immersive restaurant. With just one seating of 12 people weekly, all meals are personally prepared by Persh. In a Georges Mélièsinspired dining room, diners are offered exotic dishes including uni crème brûlée and nori bonbons. Outside the dining room, guests are free to enjoy the immersive shows and performances within Lost Spirits which include acrobats, burlesque performances,

“20,000 Leagues Under the Sea” restaurant

mannpublications.com

jazz singers and clowns.

May 2022

51 | MR

COVER FEATURE

"As a chef who eats, drinks and sleeps fine

ence and Klimt: The Immersive Experience.

Las Vegas, the offerings will be family-friend-

dining, the hardest part of creating a new

From 10 p.m. until closing, Industry Mondays

ly but edgy, a touch counterculture, but offer-

restaurant is imagining what I am going to do

offers Las Vegas residents a DJ underneath

ing night-time sophistication, with concerts

that hasn't been done before. I'm delighted

Oddwood’s tree and 25% off entry to various

and food festivals to appeal to locals as well

that in all my research, I have never seen

activations and entertainments. The events

as the market’s 78 million tourists (in 2019).

anything quite like this experience, outside

are supported by the latest in high-tech,

of our former restaurant Fish or Flesh in Los

with Panasonic System Solutions Company

“Area15 looks forward to cultivating a collab-

Angeles," his eatery inspired by The Island of

recently signing a five-year agreement to of-

orative spirit with Orlando’s creative commu-

Dr. Moreau, Persh said in the announcement.

fer turnkey solutions for Area15’s live events

nity, as well as adding a distinctive new desti-

space, including 14 4k laser projectors.

nation within the city’s world-famous tourism corridor,” said Area15 Chief Creative Officer

The key, Fisher said, is making people It makes sense, then, that the next location

Michael Beneville in the announcement.

for Area15 will be the world capital of experi-

“We’re all immensely energized by the possi-

“A gentleman walked in and told me he

ences: Orlando, Florida, in 2024. Located off

bilities our Orlando development offers.”

thought he’d stay for 10 minutes,” Fisher

Interstate 4 between Sea World and Walt Dis-

recalled. “Instead, he said, ‘I feel so welcome

ney World property, Area15 Orlando will oc-

Other possible locations could include Atlan-

here,’ and it is welcoming.”

cupy an approximately 300,000-square-foot

ta or Nashville. And the company is examin-

structure on 17 acres, with more than 150,000

ing the possibilities around smaller boxes in

square feet of leasable retail space available.

regional markets.

jobs and hosted 44 live events in its first year

“We love convention markets, and the Orlan-

“But first and foremost, Area15 is a curation

of operation, the company said.

do site is just seven minutes from the con-

brand,” Fisher states. “I will never sacrifice

vention center,” he said.

the brand. Can we go in a mall? Maybe. But

feel comfortable.

The result: in 2020, Area15 welcomed nearly 2 million visitors, created more than 1,000

it can’t be in a way that cheapens the brands.

Events rotate regularly. At press time, events included Van Gogh: The Immersive Experi-

Don’t expect the concept to change. As in

There are some great boxes are between 50,000 and 100,000 square feet that are in really cool locations that we are studying.”

That doesn’t mean the traditional mall is dead, Fisher notes.

“I think that traditional retail didn’t know what we were,” he observed. “There’s a place for the mall. In many ways, we’re seeing the limitations of e-commerce. It’s not dead by any stretch of the imagination, just like TV didn’t kill movies.

But we curate art and wonder and excitement, and we have new reasons to come back. In those reasons, you can shop for stuff.”

Photo credits: Vortex and exterior by Laurent Velazquez; Fisher by Peter Ruprecht; 20,000 Leagues Under the Sea via PRNewswire

The Vortex

52 | MR

May 2022

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FEATURES

Pacsun: Innovating on Multiple Platforms

By Debra Hazel

I

Pacworld allows players to build their own virtual mall.

s it brick-and-mortar retailer? A gamer?

Or a metaverse pioneer? At Pacsun, it’s all about innovation, said its president, Brie Olson, at the recent Shoptalk con-

ference in Las Vegas.

“The core of our brand, the heart of our brand is innovation,” Olson said, noting that Artistic Director A$AP Rocky scanned in his own body to create his own non-fungible token (NFT). “Brands need to think seriously about how, when and why to create a metaverse strategy.”

This emphasis on digital innovation is largely because Pacsun’s shoppers are teens and

audience gets to build alongside the brand.

in Santa Monica, Brea and Downtown Los

young adults who are very comfortable in

We were building emotional bonds with

Angeles. Over time, 300 unique Pac Mall

both a virtual universe as well as shopping

the consumer.”

Rats will eventually be released to correspond with all of Pacsun’s mall and stand-

at their local malls. The apparel company was an early adopter of cryptocurrency and

The line consisted of seasonal items — some

alone retail locations. Each Pac Mall Rat

closely examined how its audience was en-

of which were available in the company’s brick-

character is carefully designed by Pacsun’s

tering the metaverse — largely, it determined,

and-mortar stores, too — as well as flat-out fan-

in-house team and created as a full body

through gaming. In June 2021, Pacsun opted

tasy items for players’ avatars, including gold

look to allow Pacsun to showcase acces-

to partner with Roblox, a global gaming plat-

wings (a top seller, according to Olson).

sories, footwear, tops and bottoms in comprehensive looks that enables the brand to

form to launch a digital catalog.

I n Ja n u a r y, Pa c s u n’s p re s e n ce i n t h e

highlight styles from current campaigns and

“We wanted to meet the consumer where

metaverse expanded further as the retailer

product initiatives.

they’re already socializing and Roblox argu-

started to roll out a series of unique NFTs

ably is the best platform for socialization,”

called Pac Mall Rats. Pacsun initially unveiled

“One of the important considerations we had

she said. “It’s another piece for Pacsun look-

a limited series of three Pac Mall Rats, repre-

when contemplating NFTs is that it ties back

ing for opportunities to decentralize. The

senting Los Angeles Pacsun retail locations

to authenticity,” she said.

56 | MR

May 2022

mannpublications.com

COMMERCIAL

Plans call for 300 Mall Rats NFTs.

ied. It shows the power and energy behind the

community. Players are the owner and oper-

brand. It should be seen as positive when the

ators of a new mall, and it is their objective to

community itself is accelerating brand growth

make the mall as profitable and popular as

as the consumer is building alongside us. In

possible. The starting point is a sunny beach

fact, some of the emulation is stronger than

island reminiscent of Pacsun's Southern Cali-

what we put out in the first place. “

fornia home base, where players can choose a plot for their personalized mall that they can

The metaverse even extends to how Pacsun

build their stores onto.

is running the company, Olson continued.

Players will be able to create and remove “We have cross-functional meetings in the

shops, upgrade the shops that do well,

metaverse monthly and our training all of

decorate the mall to try and a!ract more cus-

our leaders in our creative spaces,” she

tomers, and even invite their friends to visit

said. “We’re encouraging our team lead-

their mall.

ers to download Roblox, to participate in the metaverse.”

In time, Pacsun may acquire digital “land” for its own virtual malls. Anything is possible in

The company’s presence is now even great-

the metaverse.

The development of Pac Mall Rats came

er; just days after her presentation, Pacsun

on the heels of the brand’s first-ever NFT,

launched Pacworld, a fantasy interactive mall

“It’s incredibly exciting,” Olson said at Shop-

which debuted in November 2021 and was

experience on Roblox through a partnership

talk. “It means creating connection points, al-

designed around its wave logo. The Pacsun

with game development studio Melon.

lowing community [and] building alongside

Wave NFT sold above the asking price, and

the consumer.”

100% of proceeds were donated to the

Pacworld allows players to create a unique

Fashion Scholarship Fund, a education and

hub that intersects fashion technology and

Illustrations courtesy of PRNewswire

workforce development nonprofit that aids the fashion industry within the United States.

The first Pac Mall Rats series sold out quickly, and the company is issuing more regularly. In addition to the NFT, purchasers also received a commemorative physical T-shirt with their Mall Rat on it. The second drop of Pac Mall Rats debuted in March, representing 14 different Pacsun locations, as well as Reebok, Pacsun’s first Pac Mall Rat based on a brand partner.

And unlike many apparel brands, Pacsun welcomes a copycat.

“Product emulation (or the copycat) is something we look upon quite positively,” Olson said. “Virgil Abloh shared valuable advice early on about what it means for a brand to be copPacsun CEO Brie Olsen and Shoptalk’s Joe Laszlo Photo by Gary He

mannpublications.com

May 2022

57 | MR

FEATURES

Colle!e Home’s original location in the Hamptons

Collette Luxury Home Consignment Lands a Store on Madison Avenue

C

ollette Luxury Home Consignment

emporium of fine furnishings and home

is coming west from the Hamptons,

accessories, with several locations in the

signing a 10-year lease for its first

Hamptons. Its customers include designers,

Manhattan location at 1325-1343

architects and consumers, and its pieces have

Madison Ave. The 3,700-square-foot retail

found their way into many beach homes and

showroom and store will boast 50 feet of

mansions. Its offerings regularly include both

frontage, reported Joseph Aquino, president

name-brand furniture collection, and one-

of JAACRES (Joseph A. Aquino Commercial

of-a-kind pieces, all available for immediate

Real Estate Services), who represented

delivery. Founder Tish Collette began her

Colle!e Home in the transaction. Gary, Rick

consignment business by focusing on wom-

and Chris Dana, from the commercial retail

en’s luxury clothing and has built her Home

department of Douglas Elliman, represented

Colle!e Consignment from that foundation.

Photos by Joseph A. Aquino

the retail condo property owner.

Aquino previously leased another store in the Blending re-commerce and home furnish-

same building to Ice Blue, a luxury women’s

ings trends, Collette Home is a consignment

apparel boutique.

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May 2022

The collection includes dinnerware as well as furniture.

mannpublications.com

COMMERCIAL

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FEATURES

The Hospitality Tech Transformation:

All About Front and Back Office Alignment, Efficiency and Compliance

Pam Knudsen, Executive of lodging, Avalara

By Pam Knudsen

I

n hospitality, we rightfully place a lot of focus on the customer experience. But what often is overlooked is back-end accounting technology that is vital to the

continued operation of the property. Digital transformation is being embraced across many industries, but efforts in this area for hospitality are fragmented in comparison.

The real winners of the post-pandemic world will be those who have evaluated the true return on investment of both front- and backend technologies and seized opportunities to automate manual, inefficient and riskgenerating processes.

Is digital transformation really that important for the future of the hospitality industry? The answer is a resounding “yes,” as it can help

expensive, with violators liable for payment

Unseen Challenges of Tax Calculation

align front- and back-end office systems, im-

of back taxes owed, penalties and interest.

While it may seem like tax calculation is

prove efficiency and manage the challenges

Those who creatively experiment with novel

straightforward, nothing could be further from

of lodging and other tax compliance. The last,

methods to avoid tax liabilities may be sub-

the truth. There are myriad rules and circum-

in particular, is vital.

ject to a broad spectrum of civil and criminal

stances that can make figuring out taxes a tru-

penalties for activities deemed to be willful

ly monumental task. Here are just a few of the

or fraudulent.

unseen challenges that can cause confusion:

Neglecting lodging tax obligations can get

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MANAGEMENT

Organizational complexity. It’s not un-

upgrades are front-end and customer-facing,

common for multiple parties to be involved

so back-end technology systems can often

with systems and processes. Consider the

be outdated. Legacy computer systems may

possibilities: Property owners may range from

have poor and/or inflexible user interfaces

institutional real estate investors’ entities such

that require cumbersome and staff-initiated

as Real Estate Investment Trusts (REITs) or

workarounds to process tax-related reports or

private equity funds to high-net-worth indi-

file exports between systems.

or corporate offices. ○

Internal tax audit will take place for

○

Daily reports automatically generated

any anomalies. and transmi"ed electronically.

Properties with legacy property management systems (PMS), point of sale (POS) and

viduals or family offices. Independent properties like short-term rentals may be privately

Streamlining Compliance

back-office accounting systems that are not

owned and operated. There could also be a

It is essential to streamline all aspects of the

currently operating on modern technology

third-party lessee, franchiser, management

tax compliance process for both short-term

platforms will still benefit from introducing a

company and even public shareholders, all

rentals and larger hotels. This will reduce the

more streamlined compliance process, even if

with tax liability. And at the end of the day, the

need for manual human intervention, lower

they are only partially automated.

accounting department needs to be able to

the likelihood of errors, lessen the time spent

manage tax compliance for increasingly com-

on and complexity of internal corporate tax

Tech Transforms Hospitality Taxes

plex organizational structures.

audits and speed the filing and remittance

As complex as the challenges of lodging and

process to capture any incentives/discounts.

other tax compliance may be, there is an obvious path forward. Like many other challenges

Taxing jurisdiction complexity. It is not just the structure of the organization that can be

Digital transformation can also enable

facing businesses of all types, modern tech-

complex; the taxing jurisdictions can also be

front-facing employees to capture exemp-

nology has enabled cloud-based solutions to

incredibly detailed. There may be state, coun-

tion documentation and record data without

not only offer sector-leading technological re-

ty, city and other local taxes. Taking it a step

needing extensive training or convoluted pro-

sources, but also the subject ma"er expertise

further, it might not only be where a property

cesses that distract from providing exemplary

required to focus limited resources on critical

is located that complicates matters but also

guest service. It can also help simplify audits

functions and avoid the distraction of expe-

what is being taxed, as there is no standardi-

and avoid unnecessary financial penalties.

riencing unproductive inefficiencies through trial and error.

zation across jurisdictions. For example, in addition to lodging tax, streaming entertainment,

Best practices that can be facilitated by

bo"led water, beverage alcohol, parking and

streamlining compliance with a cloud-based

By embracing back-end technology trans-

dining (just to name a few) are all taxed differ-

system include:

formation, the hospitality industry will welcome an easier and more streamlined

ently by jurisdiction. ○ Te c h n o l o g y ro a d b l o c k s a n d d a t e d systems. It is hard to manage complex

○

Early identification of exempt guests

process, which will help them to get and stay

and document capture.

in compliance.

Data input of tax-exempt rate plans,

lodging taxes when there are technology

settlement methods, reservations

roadblocks, including legacy systems that

and more.

are not being upgraded. While many cloud-

○

based systems have been introduced over

Learn more in our white paper at avalara.com.

Long-term stay guest folios flagged

Pam Knudsen is an executive at Avalara, lead-

with special revision routines automati-

ing multi-tax teams including lodging, bever-

cally triggered.

age alcohol, telecommunications and sales

Revenue and tax calculation through

and use tax. She serves as a leading voice in

running on front- and back-end technologies

night audit automatically generates a

vacation rental tax compliance and regulation,

deployed over 30 years ago.

report reconciling income to taxes.

in addition to bringing in-depth experience

Data extraction of tax reconciliation au-

across software/SaaS technology as well as

tomatically transmi"ed to management

ERP systems. She joined Avalara in 2012.

the last decade, the software systems that run most U.S. hotels are outdated, with some

○

○ Inefficient interfaces. Many technology

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FEATURES

Before a Fall: Commercial Building Stair Safety Del Williams

By Del Williams

I

n commercial buildings, the most

ing cause behind motor vehicles and account

common technique for preventing

for 25% of all reported injury claims,” accord-

slip and fall accidents on stairs is the

ing to The National Institute for Occupational

application of non-skid adhesive tapes

Safety and Health (NIOSH). “Injuries from falls

or epoxy coatings embedded with aggre-

of all types cause a variety of strains, sprains,

gate. The appeal of this approach is that

fractures, contusions, concussions, back

untrained personnel can quickly and easily

injuries [and] paralysis, as well as fatalities,

apply the protection. However, for high-traffic

particularly when the fall is from a height.”

stairways, tapes can peel off (creating a trip hazard) and coatings abrade away quickly,

The risk of a serious fall on stairs increases

leading to frequent reapplication to maintain

when people are inattentive, looking at their

safety standards.

smartphones, talking with others or carrying items. The slip and fall hazard — both in terms of physical injury and potential liability — only

Now, a new category of durable high-tech epoxy is available to effectively ensure superior stair tread footing, safety and visibility for years without re-application. This option dra-

Epoxy is easily applied.

increases when the stairs are damaged, wet and slippery, or the area is not well illuminated.

Photos courtesy of Form-A-Tread

matically reduces the need for maintenance

“It is very important to improve stair safety in

and replacement even in heavily traveled ar-

high traffic commercial buildings, particu-

eas and can be quickly and easily applied on

injury and a factor in many lawsuits and work-

larly in New York state,” said Gani Bajraktari,

stair treads by maintenance personnel.

ers’ compensation claims.

senior property manager at New York-based

The Slip and Fall Epidemic

“In general, falls and slips are responsible for

York] state, the property owner is presumed

Slip and fall incidents are a leading cause of

15% of all accidental deaths, the second lead-

responsible if anyone gets hurt on a property.

Bajraktari Realty Management Corp. “In [New

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MANAGEMENT

So, a li#le bit of prevention goes a long way.”

Bajraktari said.

A-Tread, a 400 ml cartridge of material can

To dramatically improve building safety, en-

Bajraktari discovered a more durable epoxy

tread. A special tool is then used to dispense

hancing the traction, feel and visibility of stair

paste consisting of 100% solids that, once

and mix the material at the time of application

treads is the most effective means of reducing

applied, can last for years in high-traffic areas.

in the correct ratio, eliminating human error.

slip and fall incidents and injuries.

The patented product from Form-A-Tread

produce 25 to 40 linear feet of one-inch-wide

Company provides an extremely strong bond

The kit includes a patent-pending stencil sys-

A Long-Term Safety Solution

to a range of stair tread surfaces, with embed-

tem, so the one-inch-wide tread lines remain

Enhancing the traction of stair treads to im-

ded aggregate to increase traction.

clean, neat and parallel. In addition to straight line treads, instructions such as “Exit Here”

prove safety is not a new concept. However, most options on the market are low-tech, such

The epoxy paste can be used indoors or

or a corporate logo can be applied using the

as applying non-skid adhesive tape or a coat-

outdoors as well as exposed to chemicals,

material and a stencil.

ing with embedded aggregate to each tread.

weather and temperature extremes. The bond

Another common solution at many commer-

is so strong that a chisel or angle grinder is

“The kit provides everything you need. Just

required to remove the stair tread line.

follow the instructions and basically anyone can improve stair safety,” Bajraktari said.

cial buildings is the application of a non-skid tape embedded with aggregate. However, if

Bajraktari first used the Form-A-Tread epoxy

the adhesive does not adhere well to the sur-

paste to improve the safety and footing of out-

For added safety, the 100% epoxy tread line

face, it can peel off and become a trip hazard

door stairs in residential projects that could

does not shrink and so provides a superior

within a few months. The aggregate in the

become slippery when wet. “It held up amaz-

tactile sensation that creates greater aware-

tape is only lightly embedded on the surface

ingly well to the sun’s UV and outdoor weather.

ness of footing on the stairs. The product is

as well, and in high-traffic areas can quickly

Seven years later, it still looks as good as the

available in black and safety yellow to delin-

wear away. In addition to reducing safety,

day we applied it.”

eate the edge of each stair tread. To increase safety in potential indoor blackout situations,

poorly maintained stairs portray a shoddy, unprofessional image.

To resolve the issue at his commercial prop-

a patented IBC 2015 compliant (ASTM E

erty, he removed all of the treads, sanded the

2072), glow-in-the dark formula is available for

“In my experience, non-skid tape comes off

underlying concrete and applied the product.

increased visibility.

repeatedly. It is a temporary solution, so you

The new treads improved safety and mini-

are wasting your time, energy and effort every

mized the possibility of slip-and-fall incidents

According to Bajraktari, the epoxy product

time you reapply it,” said Bajraktari.

as well as potential liability.

not only improved safety and eliminated the need for frequent re-application, but also had

Even supposedly rugged options like vi-

“Instead of temporary applications, it is much

a more attractive look over time due to the

nyl stair treads can become damaged in

more effective to solve the problem the first

lack of visible wear. In his experience, he said,

high-use se#ings.

time with a product like Form-A-Tread and

the cost to apply the product proved more

be done with it. The footing is amazing, and

cost-effective than dealing with additional

At one commercial building Bajraktari Realty

you feel more secure going up and down the

claims and added insurance costs.

previously owned, four staircases (two main

stairs,” said Bajraktari. “As far as durability, I

and two emergency) had old vinyl tread glued

expect the stair treads to last for at least 10

Commercial property managers have long

to the cement.

years or more in indoor applications.”

sought to improve the safety of their facilities.

“I assumed vinyl stair treads lasted forever

The high-strength epoxy paste is designed

that adhere to stair treads for many years,

until I saw a broken one. To this day I don’t

to be easy to apply to stair treads even by un-

managers now have an easy-to-use tool that

know how it could have broken, but it did,”

trained personnel. In a kit supplied by Form-

can improve safety for the long term.

With advanced durable all-solid epoxy pastes

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May 2022

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FEATURES

And the Lucy Goes to: New York Landmarks Conservancy Announces 2022 Lucy G. Moses Preservation Awards

I

1 West 123rd St. Photo by Jonathan Wallen

n its annual tip of the cap to saving New York City’s architectural past, the New York Landmarks Conservancy has announced the winners of its New York City 2022 Lucy G. Moses Preservation Awards, its highest honors for excellence in preservation. The

Awards recognize individuals, organizations and building owners for their extraordinary contributions to the city. The awards are supported by the Henry and Lucy Moses Fund. The winners were honored at an April ceremony.

“We have an amazing range of Lucy winners this year,” said Peg Breen, president of The New York Landmarks Conservancy. “From daring work at the top of individual landmarks to a dazzling Art Deco room to remarkable affordable housing projects, the City’s incredible architectural diversity will be on full display. And we’re thrilled to be celebrating

will be presented to Prospect Park Alliance for excellent stewardship

it all in person again.”

of its collection of historic structures and sites.

The 2022 Lucy G. Moses Preservation Project Award recipients in-

Highlights of 2022 Lucy G. Moses Preservation Project Award

clude: 1 West 123rd St., 55 Reade St., 74 Grand St., Astoria Park Pool

Recipients include:

and Play Center, Empire State Building Mooring Mast, Farley Building Postal Lobby, Gage & Tollner, Helmsley Building, Highbridge Water

Helmsley Building

Tower & Step-Street, Noonan Plaza Apartments, One Wall St., Power

Completed in 1929, Warren and Wetmore’s Helmsley Building at 230

Station at Berklee NYC, T Building and Trinity Church Wall Street.

Park Ave. is the skyscraping counterpart to Grand Central Terminal; designed by the same architects, for the same client and in the same

Yuien Chin, preservation advocate, received the 2022 Preservation

materials and Beaux-Arts style. The 34-story building with its twin ve-

Leadership Award for her work in centering Harlem’s rich architectural

hicular portals, giant clock with heroic figures and ornate crown is the

and cultural heritage. Alex Herrera, preservationist, received the Spe-

focal point of the vista down Park Avenue. Owner RXR and engineers

cial Award for Preservation Service in honor of his nearly 23 years as

Thornton Tomasetti used cutting-edge technologies and traditional

director of preservation services at the New York Landmarks Conserv-

methods to secure and restore a series of distinct terraco"a elements

ancy before his 2021 retirement. The Preservation Organization Award

that define the façade, including 32 freestanding, three-story colossal

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MANAGEMENT

Gage & Tollner Photo courtesy of Gage & Tollner

One Wall St. Photo courtesy of Macklowe Properties

columns at the 29th floor and a herd of 74 seven-foot-tall terracotta

College of Music saved the power station. It re-opened in 2021 a#er

bison heads at the 16th-story cornice.

David Sco" Parker Architects oversaw a rehabilitation that secured the façade and adapted underused spaces but, critically, le# the hallowed

Empire State Mooring Mast

recording studios untouched.

When the Empire State Building (ESB) was completed in 1931, the distinctive Art Deco spire with its sculptural cast aluminum wings defined

Trinity Church Wall Street

the New York City skyline. Originally advertised as a dirigible docking

The beloved city, state and federal landmark was designed by Richard

station, the “mooring mast” was a late design addition by architects

Upjohn and completed in 1846. At the intersection of Broadway and

Shreve, Lamb and Harmon. ESB soon became a prime broadcasting

Wall Street, the neo-Gothic masterpiece, now surrounded by towers,

site and over time equipment was added to the mast. In 2019, Empire

is an icon that represents New York. Murphy Burnham & Buttrick

State Realty Trust and architects Consulting Associates of New York

Architects led an extensive renovation and restoration project has

undertook the daunting challenge of removing obsolete infrastructure

enhanced the worship experience by making the church more wel-

located between the 88th and 103rd floors and restoring the mast’s

coming and comfortable while improving the landmark’s structure,

historic appearance.

accessibility and resilience.

Farley Building Postal Lobby

One Wall St.

Restoration of the James A. Farley Building Postal Lobby demonstrates

Designed by Ralph Thomas Walker as a symbol of commerce in the

how the utilization and stewardship of a historic space can provide an

Financial District in 1931, One Wall St. now represents the growing

upli#ing architectural experience for the public and enliven the activ-

trend of residential conversions in this evolving neighborhood. The

ities of daily life. Contractors made hundreds of repairs to the marble

Red Room, acclaimed muralist Hildreth Meière’s mosaic masterpiece,

columns, pilasters, wainscoting, trim, archways and flooring of the full-

remains the landmark’s glowing heart. At the Wall Street entrance, the

block, double-height lobby. The brightened interiors are a welcome

Red Room’s detailed, floor-to-ceiling mosaic interior was repaired and

sight to visitors waiting in line at the post office or walking through to

cleaned, restoring it to its original magnificence. This adaptive reuse

the Moynihan Train Hall beyond.

from Macklowe Properties, SLCE Architects and Acheson Doyle Partners pays tribute to Walker’s and Meière’s intentions for art and beauty,

Power Station at Berklee NYC

while responding to contemporary needs.

A#er a brief scare, New York’s most renowned recording studio is once again secure. Acoustical engineer Tony Bongiovi had carved out stu-

55 Reade St.

dios from a vacant, former Con Ed power station in the late 1970s. Five

The rescue of the “leaning landmark” (dubbed so after its neighbor

years ago, Bongiovi considered selling to developers likely to demol-

was demolished in 2006) on the corner of Broadway and Reade

ish the 1926 Beaux-Arts building in Hell’s Kitchen. Instead, the Berklee

Street is an extraordinary accomplishment. Plans for a new high-

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FEATURES

Power Station at Berklee NYC Photo credit Ryan Nava

GOLF CLASSIC

rise unexpectedly stalled, leaving this six-story, 1872 structure in a

compromised condition, leading the Buildings Department to issue a

vacate order. New owner United American Land and architects Green-

bergFarrow commi!ed five years of work and significant investment to ensure that the formerly “leaning landmark” is upright and anchoring its neighborhood.

74 Grand St. The building’s cast-iron façade has returned to SoHo, a"er a decade

BENEFITING NATIONAL JEWISH HEALTH

away from home. When the demolition of a neighbor and subsequent excavations undermined 74 Grand to the point that the Department of

2020

Buildings ordered the building to be torn down, the Landmarks Commission required that the historic façade go into storage. A"er several false starts, new owner Churchill Real Estate Holdings and Joseph Pell

MONDAY, from the historic façade arrived on a truck from Alabama and were MAY 4 reinstalled on their original site. While many feared that the cast-iron

EL CABALLERO COUNTRY CLUB working with Eric Safyan Architect PC, have picked up Gage & Tollner’s Tarzana, California torch and restored its former splendor while gently guiding it into the

Lombardi Architect arranged for some 250 original cast-iron elements

years. Restaurateurs Sohui Kim, Ben Schneider and St. John Frizell,

would be lost forever, 74 Grand St. and its magnificent façade have

21st century.

LOS ANGELES REAL ESTATE AND FINANCIAL SERVICES

finally been reborn.

T Building

1 West 123rd St.

This project, the conservancy said, is an excellent example of how his-

Behrstock their extraordinary home Anthony in the Mount Morris Park Historic District.

David Sonnenblick A"er decades of underuse and deterioration and calls for demolition,

Co-Chair of the Arm & Hammer Baking Soda Company.

Art Moderne Triboro Hospital for Tuberculosis and converted it into

2020 COMMITTEE James Fenton and Darryl Pinckney took on a labor of love to restore toric buildings can be reused to provide new housing opportunities.

Commonwealth Title Dwight, owner The 1890 neo-Renaissance house wasLand builtand for James Later owners left the

Sonnenblick-Eichner Company Dunn Development Corp. and SLCE Architects have rehabilitated the

Co-Chair

house poor condition with many inappropriate changes. The 2008 Zach inBrandler Charles Eberly

200 units for low- and middle-income households.

Fredrental Lionetti Michael Rosenblum

Business Broker and Consultant

Rosenblum Law Office

away, leaving the building exposed to the elements and a flock of

Astoria Park Pool and Play Center

pigeons, whoSecurities moved into the house. Working JP Morgan Marcumwith LLP PBDW Architects,

Jeff Mann

Todd Sherman

Fenton and Pinckney have spent a decade bringing the house back to

The Works Progress Administration-era complex has been reMann Publications Firstpool Pacific Financial stored and improved for a new generation of visitors. Completed in

its original, magnificent condition.

1936, the pool and bathhouse still operated in season, but the wading

Deborah Medway

Paul Stern

Douglascrisis Elliman Real Estate Eberlythose Company financial upended a developmentThe scheme: owners walked

Jonathan Canter Steven Cohen

Real Estate Investment and Operational Exec and Principal

Ronald Friedman Carrie Jenkins

Triumph Business Capital

Levinson Highbridge Water Tower/HighbridgeWilliam Step-Street Carlton Fields

Commonwealth Land Title

Guggenheim Commercial Real

pool no longer met code requirementsEstate and was closed.LLC The NYC Parks Finance,

Eric Nelsonand Nancy Owens Studio Landscape Architecture colDepartment Rimrock Real Estate Ventures

Nearly seven years ago, the NYC Parks Department reopened the High

laborated to reconstruct the wading pool and restore the playground

Bridge a"er a closure of more than four decades. In 2021, NYC Parks

melds history, classic architecture and contemporary recreation.

Reserve your foursome or sponsorship today at labreathoflifegolfclassic.org Noonan Plaza Apartments or contact Steven Prawat at 818.905.1300 or PrawatS@njhealth.org.

Step-Street in the Bronx. Thousands of residents and visitors have enThe development, located in the Highbridge section of the Bronx, is completed restoration of two structures that bookend the iconic public space: the Highbridge Water Tower in Manha!an and the Highbridge joyed the High Bridge annually since it reopened. Now they will also

one of the borough’s most impressive Art Deco style complexes. The

be able to enjoy these complementary features.

apartments are now used for affordable housing. Owner Noonan Plaza Housing LLC and Danois Architects completed an extensive interior

Gage & Tollner

and exterior modernization that respected the historic fabric of the

The cornerstone of Brooklyn’s restaurant world has returned in its full

building and complex. This restoration shows how preservation can

Gilded Age glory. Opened in 1879, it has operated continuously for 125

improve a historic façade and revitalize hundreds of homes.

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Welcome to

The Entrepreneurial Bank Helping Our Clients Build and Sustain Wealth, One Client at a Time.

For more than 20 years, our bankers have worked alongside middle-market and small business owners during the good times as well as the not so good – tailoring our traditional and innovative banking products and services to meet the challenges and seize opportunities in front of our clients.

Laura Capra, Executive Vice President LCapra@MCBankNY.com, 212 659-0606 Manhattan | 99 Park Avenue • 212 365-6700 | 16 West 46th Street • 212 938-0770 | 1359 Broadway • 212 643-6981 | 1270 Lexington Avenue • 646 930-3386 Brooklyn 5101 13th Avenue • 718 851-2105 | Great Neck 111 Great Neck Road • 516 441-5232 © 2020 Metropolitan Commercial Bank Metropolitan Commercial Bank is a registered trademark of Metropolitan Commercial Bank.

FEATURES

Stock Photos vs. NFTs: Which is the Better Choice?

Joe Jesuele is the founder and CEO of HomeJab, a real estate photography and video marketplace for real estate professionals, and architect of the Real NFT Marketplace. HomeJab delivers over 4 million images to help agents sell and rent more than $35 billion in listings.

By Joe Jesuele

R

Joe Jesuele

Real NFT Marketplace

eal estate agents strive to create brand differentiation. But when purchasing photos from a stock agency for their websites and

marketing materials, those same photos also can be purchased by their competitors and used in the same way. Marketing experts argue that this can cause brand confusion among consumers.

These agents also especially appreciate the value of great real estate photography. Neue Focus, a Los Angeles-based photography

Zillow's research found that nearly half (46%)

sumers recognize the value they bring to the

studio, reports that buyers typically spend

of total buyers consider viewing professional

real estate process.

60% of their time looking at real estate listing

pictures of a home as extremely or very im-

photos while only 20% of their time is spent

portant. Moreover, Redfin research shows

Real estate photography can be essential to

reading the descriptions. In addition, the

homes listed with professional real estate

home sales, and unique real estate imagery

"National Association of Realtors 2021 Home

photos sell quicker and for more money —

can be key to great branding. Professional

Buyers and Sellers Survey” found photos on

$3,200 to $12,000 more.

real estate photographers are artists, and like

a website was the top-ranked feature to buy-

agents, the new NFT marketplace is a!empt-

ers, according to their real estate agents. Ad-

Many agents also know what it is like to be

ditionally, 96% of real estate agents working

questioned about the value they bring to a

with buyers said photos were very (84%) or

transaction. Yet more people today use real

Real Estate Images for Others

somewhat (12%) useful, ranking higher than

estate agents than ever — some 90% for

Real estate teams and top producers often

any other website feature.

sellers and 87% for buyers — because con-

rely on marketing agencies for their promo-

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May 2022

ing to compensate them fairly.

mannpublications.com

RESIDENTIAL

tional needs. This new image platform gives

NFT image search

digital marketing agencies more options and advantages over stock image purchases.

Major brokerages, developers and property managers often have in-house marketing support that manages their branding needs, including purchasing real estate-related stock images. However, a new source o f fe r i n g u n i q u e p h o to s g i ve s t h e m a fresh alternative.

Real estate journalists, bloggers and other media who cover the real estate industry also have an ongoing appetite for real estate im-

ing to Phototutorial, photographers currently

tralization makes Blockchain the most stable

ages. However, sourcing real estate images

earn as little as two cents to 25 cents per

and secure storage facility ever created.

from stock photo agencies can become an

month per photo from the major stock

expensive proposition, especially when you

photo agencies.

For brand purposes, NFTs offer the opposite of what stock agencies provide. Stock agen-

consider they face the same downsides of Real attempts to disrupt the multibillion-

cies can sell the same image hundreds if not

dollar stock image industry by flipping its

thousands, or tens of thousands of times.

Who wants their competitors to use the

business model upside down. The NFT

Anyone who pays the fee can own the same

same images throughout their websites and

platform, designed expressly for real estate

stock image. NFT images are unique and

marketing material?

images, was built on the concept of compen-

most o#en one-of-a-kind. An NFT image pro-

sating artists for what they are worth.

vides advantages that one cannot get from a

using stock images as real estate agents.

stock agency for brand identity. The question

That’s why HomeJab recently launched the Real NFT Marketplace for real estate images.

When professional real estate photogra-

that needs to be asked is, "Why would you

NFTs, or non-fungible tokens, are a relatively

phers sell images through the real NFT

buy a stock image that any of your competi-

new way for real estate agents, brokers, blog-

Marketplace, they receive 96% percent of

tors can purchase and use?"

gers, media, property managers, developers

all sales proceeds; perhaps the highest

and marketing agencies to secure a unique

compensation available from a major stock

Resell, Trade & Custom Orders

photo image.

photo platform.

Another significant advantage of buying NFTs

For years, stock photo agencies have owned

Understanding NFTs

trade — these images in the future. When pur-

the digital marketing space for securing imag-

What does a non-fungible token mean?

chasing a photo from a stock agency, the buyer

es for commercial use. According to website

Think of it as a unique digital footprint

isn't buying an image; they buy a license to use

researchandmarkets.com, the stock photo in-

that you cannot steal or erase because an

it. Moreover, the image is o#en highly restricted

dustry is a $4 billion business, but professional

NFT is created in the digital world using

in its use. But when a unique NFT image is pur-

photographers see very li!le of its revenue.

Blockchain technology.

chased, the buyer obtains the rights to resell or

Despite the dominant position that stock

Blockchain is essentially an indestructible

photo agencies have had in the marketplace,

digital ledger that tracks the ownership of an

How does this benefit real estate agents,

their compensation structure for photogra-

asset, like an NFT. It is more secure and more

brokers, bloggers, property managers, mar-

phers is not widely known. However, accord-

decentralized than a bank vault. This decen-

keting agencies and others?

of real estate images is the ability to resell — or

trade that image.

mannpublications.com

May 2022

73 | MR

FEATURES

Rhode Island-NFT

It can help them keep their content fresh — a highly desired goal of online marketing. A!er all, according to a report from Orbit Media studios, the average lifespan of a website is two years and seven months.

Owners of NFT images also can trade them.

This new horizon for real estate images might bring NFT image buying additional value and flexibility not available from stock images.

In addition to creating a new place for real estate agents and digital marketers to purchase, trade and sell unique and iconic local real estate images, the Real NFT Marketplace

It’s a bit more complicated than using a credit

much of it fueled by speculation. But real

also enables clients to order custom NFTs.

card online to purchase and immediately

estate images have a significant difference

download an image from a stock agency.

over the tradeable NFTs that have dominat-

On the platform, interested buyers can con-

Today, if someone is not already using cryp-

ed the news. These NFTs are practical and

tract with a local professional real estate pho-

tocurrency, it can take some effort to buy

deliver value.

tographer to arrange for a shoot of specific

an NFT. Stock photo agencies have proven that good

images for their exclusive commercial use, as The first step requires establishing a crypto

images will always have value and utility. The

wallet. Next, a cryptocurrency needs to be

NFT model helps level the playing field to

The Real NFT Marketplace currently has over

added to the wallet. It takes a few days before

benefit real estate agents and professional

500 NFTs available throughout the U.S. and

everything is set up and registered before

real estate photographers.

beyond. The initial images on the Real NFT

you can make your first purchase.

they will own the NFT images.

With a self-serve NFT platform, there is now

Marketplace are dominated by destinations in the public domain. These include histor-

This process can be frustrating for first-time

an alternative for professional real estate

ical landmarks, streetscapes, downtown

users who are accustomed to clicking on a

photographers to market their work and be

areas, commercial hot spots, parks, bridges,

link, auto-populating their credit card infor-

well compensated. Likewise, for real estate

buildings and beaches. Aerial shots are

mation, and then clicking “buy” and down-

agents, they avoid the one-size-fits-all world

also commonplace.

loading instantly to complete a purchase.

of stock images.

NFT Challenges

However, ge"ing set up to purchase an NFT

While the concept for NFTs for real estate

The Real NFT Marketplace is not expecting

is a one-time process. Once someone has

images is in its infancy, more than 100

to be an overnight success. It recognizes its

everything in place, purchasing future imag-

professional photographers are already

impact will take time as it's not likely to dis-

es on the Real NFT Marketplace is stream-

betting on the future of NFT real estate im-

place a $4 billion industry any time soon.

lined and immediate.

ages by uploading their work on the Real

One of the reasons for expected slow growth

Enduring Value

is the current process it takes to buy an NFT.

NFTs are now a $17 billion marketplace,

NFT marketplace.

74 | MR

May 2022

Photos courtesy of HomeJab

mannpublications.com

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.”

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HUDSON YARDS Counsel to Related Companies and Oxford Properties Group in connection with the development of and all leasing activities at the 26-acre Hudson Yards on the West Side, the largest private development in Manhattan since Rockefeller Center.

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.

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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.

FEATURES

What to Know About Crypto Real Estate Transactions

By Shaun Pappas and Benjamin Siegel

B

Shaun Pappas Partner, Starr Associates LLP

itcoin, Ethereum and other

ed being used as consideration for various

c r y p to c u r re n c i e s a re b e g i n-

real estate transactions, and there has been

ning to change, well, just about

a noticeable uptick in interest recently from

Benjamin Seigel Senior associate Starr Associates LLP

third-party intermediary to generate an invoice for the amount due. ○

The invoice is sent to the purchaser

everything. Over the last few years,

developers, investors and purchasers on how

(the one paying with crypto) via email

“crypto” has infiltrated countless industries,

to purchase a home using cryptocurrencies.

along with instructions for effectuat-

including finance, real estate, energy, social

Still, many in the industry remain cautious.

ing the payment. The amount due is

media, art, sports and many others.

denominated in the requested form of The truth is that today, every broker, seller and

cryptocurrency and has a price-locked

While cryptocurrencies certainly have its

developer in the industry can — and should —

conversion rate in United States dollars

skeptics, it’s beginning to seem as though

embrace and accept real estate transactions

(USD). In addition to Bitcoin (BTC), qual-

crypto is here to stay. Numerous members of

using crypto as the primary form of payment.

ity intermediaries also accept Ethereum

Congress and other federal, state and local

(ETH), Wrapped Bitcoin (WBTC), Doge-

officials have been outspoken advocates of

Starr Associates LLP is proud to have facilitat-

coin (DOGE), Litecoin (LTC), Bitcoin

Bitcoin, Ethereum, crypto and blockchain

ed the purchase and sale of tens of millions

Cash (BCH) and five different USD-

technology. Just last year, El Salvador passed

of dollars of residential and commercial units

pegged “stablecoins” (GUSD, USDC,

a law to recognize Bitcoin as legal tender in

using crypto as the form of payment using a

USDP, DAI and BUSD).

the country, and in January, a bill was intro-

United States-based third-party intermediary

duced to add Bitcoin to the list of accepted

service such as BitPay. Our verified Tier Four

from the time the purchaser opens the

legal tender in the state of Arizona.

account permits unlimited daily and annual

invoice payment flow to lock in the con-

transaction volume. The process is quite easy

version rate and effectuate the payment

Perhaps most notably here at home, New

and ensures that all parties involved can rest

of the invoiced amount in cryptocurren-

York City Mayor Eric Adams received his first

assured they are protected and that payment

cy. Purchasers are, of course, advised

paycheck (and vowed to receive others) in

will be made, avoiding any risks or concerns

to verify the legitimacy of the email and

the form of Bitcoin and Ethereum, and has

from the get-go.

invoice prior to accessing any links and

○

made it clear that he wants New York City to

The purchaser then has 15 minutes

remi$ing the requested payment.

be the center of cryptocurrency and other

The process of exchanging real estate for

financial innovations.

crypto generally works as follows:

○

Upon receipt of the cryptocurrency, the third-party intermediary sends the corresponding USD value to the pre-estab-

With respect to real estate, crypto has al-

Within 24 to 48 hours of when the down

lished escrow account to be held until

ready made a meaningful impact in New York

payment or balance is due, your lawyer

the USD funds are released to the appli-

City. Over the last several years, crypto start-

would coordinate with a U.S.-based

cable parties at the agreed-upon time.

76 | MR

May 2022

○

mannpublications.com

TECHNOLOGY

It really is that easy — which is why sellers

the process is straightforward, there

are numerous projects seeking to disrupt

(and their brokers) should not shy away from

are intricacies involved and ensuring

the real estate industry and change how

accepting crypto for completing real estate

everyone is on board and comfortable

owners, operators, occupants and investors

transactions. A%er the above steps are com-

with the process will help expedite it.

interact with real estate. These projects

If making a large purchase (over $10

are nascent and exciting, but they have an

all-cash deal. In many cases, the process can

million), the above process may vary

arduous road ahead as they must navigate

take less time than a traditional purchase

(both in substance and time), as BitPay

Federal and state securities, banking, priva-

funded by a bank.

and similar vendors may perform addi-

cy, anti-money laundering and other laws.

tional layers of due diligence depend-

But it is interesting to consider the potential

plete, the transaction proceeds like any other

○

For those using crypto make a purchase, you should understand the following: ○

○

○

ing upon the size of the transaction.

impacts of crypto and blockchain technol-

Other vendors involved in the real

ogy on real estate ownership and chain of

estate purchase, such as brokers, the

title, condominium and cooperative govern-

The conversion of crypto to USD will

title agency, inspectors, county banks,

ance/voting, source of funds disclosures

result most likely result in capital gains.

appraisers, etc. may not accept crypto

and alternative methods of purchasing,

Buyers should consult their CPA or ac-

as a form of payment. Make sure you

selling, financing and investing in real estate.

countant to understand the potential tax

understand which vendors require cash

Starr Associates LLP has its finger on the

implications before making a purchase.

payments — and how much you will

pulse of this quickly blossoming industry.

It is paramount that you select ven-

owe each vendor — ahead of time.

dors that have consummated or at least understand purchases in crypto. While

mannpublications.com

Starr Associates LLP is a New York City-based Aside from real estate transactions, there

law firm.

May 2022

77 | MR

Your Membership Luncheon

Guest Speaker: Jimmy Frischling Managing Partner and Co-Founder of Branded Strategic Hospitality A few words about our speaker We are honored to have Jimmy Frischling, Managing Partner & Co-Founder, who will discuss technology and how it is integrated within real estate, as well as how technology has become medicine for business owners and gold for investors as we enter the bronze age of technology transformation.The information presented will be relevant, current, and exciting, followed by a Q&A.

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ARTICLES

Condo-Co-op Helpline:

New Tool for New Buildings with Construction Defects

By Carol A. Sigmond, partner, Greenspoon Marder LLP

As COVID-19 ripped through our city, our state legislature amended the New York Debtor Creditor Law to broaden protections against fraudulent conveyances. Among the first to benefit are buyers of new condominium units.

The Uniform Voidable Transaction Act became effective on April 4, 2020. The provisions of Debtor and Creditor Law §273 and §274, defining voidable transactions, have been aligned with those of other states and updated. Section 273 defines voidable transfers as to both present and future creditors; its essence is the intent behind the transfer. If the transfer is made with the intent to hinder creditors and results in either an unequal exchange or a loss in value, then the transfer is voidable.

Intent under the applicability of §273 to any given transfer is determined by factors such as whether the transfer is made to an insider, any de facto control over the asset is maintained by the debtor, the value received for the transfer, the assets remaining in the debtor after the transfer, the debtor was on notice of claims or law suits, the debtor was insolvent at the time of the transfer or soon thereafter or the debtor concealed assets or absconded.

Another major change is that the burden of proof is set as preponderance of the evidence, not clear and convincing evidence, as was the case before the Act. In some respects, the language prohibiting the hindering, delaying or defrauding a creditor dates from the 1571 Fraudulent Conveyances Act in England, commonly termed “13 Elizabeth.” However, there is a subtle but significant shift in the law, set forth in the Uniform Fraud-

82 | MR

May 2022

ulent Conveyances Act, that is whether “fraud” is required. Actual fraud may be used to void a transfer, but it is not required. Instead, the tests above provide more objective measures of when a transfer is voidable for what amounts to intend to delay or obstruct a creditor as opposed to fraud against the creditor.

construction defect litigation by the plaintiff board of managers against the sponsor, certain related parties and unsold units. At the commencement of the action, 11 Beach sought to force the defendants to hold certain sale proceeds in the sponsor to cover the damages in the action.

Under §274, a transfer is voidable as to a present creditor if the transfer is made without receiving equal value, and the debtor was or became insolvent at that time. The transfer is voidable whether it rendered the debtor insolvent or the insolvency was close in time. Also under §274, a transfer made to retire an old debt to an “insider,” where there is reason to believe the debtor is or may become insolvent and that renders the debtor insolvent, may also be voidable. The term “insider” is defined in Debtor and Creditor Law §270 in a common-sense manner. It includes relatives or general partners of an individual debtor, any partnership or corporation in which debtor is a controlling party, an officer, director, controlling party of a debtor entity or a relative or partner of the debtor of any party in control of the debtor.

In granting 11 Beach an attachment before judgment of up to $1.1 million from the sale proceeds of Unit 3B, the trial court analyzed §273. The court found the transfer was void based on the insolvent status of the debtor after the transfer and the effort by the sponsor to waive claims for defective work in connection with the transfer. These persuaded the trial judge that the transfer of the final unit was intended to “hinder or delay” 11 Beach in collecting on a judgment in the defect litigation.

The basic change in §274 replaces the old case law as to “constructive intent” to defraud or the requirement of “good faith” in the transfer, which were more subjective, with the more objective standards of financial insolvency as tested by accounting standards.

These objective standards in the Uniform Act are the subject of a decision in Board of Managers of 11 Beach St. Condominium v. HFZ 11 Beach St. LLC, et al. 11 Beach arose out of

Under the circumstances presented, for the Board of 11 Beach, this result appears fair and reasonable, suggesting that the transition to a more objective, accounting-based analytic model for voidable transfers will lead to fairer results in this type of case. Sponsors will have to compensate buyers for significant construction defects in new buildings.

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

Requiring Tenants’ Insurance:

A Win-Win Solution on the Rise

By Frank DeLucia, senior vice president, Hub International Northeast

Investing the time and money required to maintain and cultivate a positive working relationship with your tenants can make all the difference between amicably settling disagreements and a costly lawsuit. For this reason, tenants’ insurance is a win-win for landlords, owners and tenants and may prevent a great deal of conflicts in the long run.

For the landlord, this serves as an additional layer of protection from costly litigation. Tenants that have this coverage are less likely to sue their landlords to compensate them for a loss. Even if a landlord prevails in court, there are still costly legal costs involved.

For tenants, being required to purchase their own insurance policy is the only real way to protect their possessions if the unexpected should occur. In addition, this can reduce the number of claims on your insurance policy, which is extremely important in terms of premium costs in today’s hard market and strict underwriting environment.

Let’s consider a fire caused by a tenant results in extensive damage to one of your properties.

Here is how a tenants’ insurance can make all the difference in an already stressful situation: Property Damage & Repairs: While you may think your property insurance coverage will cover the associated costs, most landlords’ property insurance policies will not cover damages caused by residents. Even if a lease clearly holds tenants responsible for the full cost of any damage they cause, it can be extremely difficult for property managers to collect on that obligation, often resulting in costly legal fees. One of the top benefits of requiring tenants to purchase tenants’ insurance is keeping landlords and managers out of court.

84 | MR

May 2022

Personal Property & Displacement: Tenants’ insurance would cover both their temporary housing costs and their property damage.

If damage occurs to a tenant’s belongings, most likely they will try to claim some type of landlord responsibility. Aside from contents, tenants may also have invested money to paint apartment walls, add cabinets or improve lighting fixtures.

For low premiums overall, tenants can have their personal belongings and liability covered.

According to the National Association of Insurance Commissioners (NAIC), the average cost of a tenants’ insurance policy ranges between $15 and $30 per month. This is quite inexpensive compared to the cost of replacing everything in an apartment.

Additionally, family heirlooms, jewelry or collectibles can also be protected by an additional rider at a modest extra cost.

Often, tenants may have to be relocated while repairs are made to the building, which could take months. If a fire or storm makes a living space uninhabitable, many tenants’ policies will pay for hotel and restaurant bills until repairs are completed.

Managing an insurance requirement may seem cumbersome and time-consuming; however, property managers and tenants have more options than ever before that make this practice more attractive and attainable.

In some instances, the landlord’s commercial insurance broker can design a tenant insurance offering that provides the landlord with attractive incentives, while streamlining the insurance purchasing and lease agreement process for tenants.

In addition to mandating tenants’ insurance, landlords may also want to consider the following when it comes to amending their tenant lease agreements to minimize liability and avoid indirect damages: Create a common lease agreement for all tenants whenever possible. Having a single lease agreement means that all tenants will know what to expect and adhere to the same set of rules especially when it comes to insurance/indemnification/hold harmless clauses. While concessions and additions may arise and larger spaces will garner higher fees, a single tenant lease agreement will reduce headache and potential liability.

Be intentional with rental abatement wording. After a covered loss that causes physical damage, it will take a prescribed amount of time before the facility is back up and running. The rental abatement clause determines whether a tenant can suspend full or partial rent payment until its space is repaired.

Closely examine the wording on rental abatement in your tenant leases.

Unfortunately, damages caused by tenants are bound to happen, but there are smart and affordable options for mitigating these risks and financial setbacks for tenants and owners.

Speak to your insurance advisor about putting together a tenants’ insurance program for your properties today and learn more about the benefits of doing so.

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

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ARTICLES

Pass-through Entities: SALT Deduction Workarounds and Entity Structure

By Daniel E. Smith, CPA, Marcum LLP

One controversial provision of the Tax Cuts and Jobs Act of 2017 (TCJA) was a limit of $10,000 on the amount of federally deductible state and local taxes for many individual taxpayers, widely referred to as the “SALT cap.”

Under prior law, taxpayers who itemized deductions on their federal income tax returns could deduct amounts paid for state and local taxes in full. Beginning in 2018, the itemized deduction for state and local taxes paid was limited to $10,000 per return for single filers, heads of household filers and married taxpayers filing jointly; the cap is $5,000 (each) for married taxpayers filing separately. As a result, taxpayers with state and local tax expenses who exceeded their respective caps during the year lost the additional federal deduction.

The SALT cap was enacted as a temporary measure and will expire at the end of 2025.

More than 20 states have enacted or have introduced legislation to impose an entity-level income tax on pass-through entities (PTEs), such as S-corporations and Limited Liability Companies. The PTE tax would allow a PTE the election to be taxed at the entity level.

Mechanics of PTE Tax The SALT cap applies to individuals and trusts, not to business entities. Since individual and trust owners of PTEs report their proportionate share of business income on their respective ireturns, these entity-level tax workarounds shift state taxes on PTE income from the individual and trust owner back to the PTE. While the mechanics of each state’s entitylevel tax on PTEs vary, they generally follow

86 | MR

May 2022

one of two methodologies: 1. Income taxed at the PTE level is excluded from the owner’s state taxable income.

2. The owner’s share of distributed income is passed through in the usual manner, but the individual or trust owners are allowed a state credit for the tax paid by the PTE. While most states are adopting the credit methodology, the issue of whether PTE owners will be allowed a credit for taxes paid to other states on their resident individual or trust income tax returns for income taxes paid by the PTE to other states has not been addressed in legislation or guidance. It is uncertain whether PTE owners with business income in some states may be able to realize the full benefit of these SALT cap workarounds.

Notice 202-75 — IRS Comfort and Consideration of Restructuring In November 2020, the IRS issued Notice 2020-75, providing that state taxes paid via a PTE tax will be fully deductible on the federal return. Notice 2020-75 gives taxpayers some comfort that their deductions will stand but allows companies that are not structured in a way to take advantage of an entity-level tax to consider restructuring their operations.

If a taxpayer is a sole proprietor in a state or states with a PTE tax, the taxpayer should consider changing to a PTE structure such as an LLC or S-corporation. However, the benefits of any PTE tax must be weighed against other issues, such as the additional costs of tax return preparation, accounting and legal fees and setting up the structure itself. An LLC agreement

is vital to protect the interests of all members.

If no formal LLC agreement is drawn and there is a dispute in its operation, the members would be subject to the provisions of state law.

Other items that should be given careful consideration for either a current PTE or new pass-through entity include the following: • Some states make adoption of a PTE entity tax mandatory; others make it optional.

• Must all members agree in order to elect into the PTE tax?

• When can an election be made or revoked? Can the entity make a retroactive election?

• Do all types of members receive a credit for tax paid in the states being considered?

Note that some states give only a partial credit (e.g., 90% in Massachusetts). Would a PTE operating agreement need to be amended if a PTE election might benefit some members at the expense of others?

• For multiple state entities, not all states give credit to resident owners for PTE taxes paid to other states.

Understanding whether a pass-through election results in a benefit requires modeling a detailed analysis of the risks and opportunities.

A pass-through entity must conduct thorough due diligence to understand how and whether the workaround election is beneficial.

Daniel Smith Marcum LLP 53 State St. Boston, MA daniel.smith@marcumllp.com

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New York’s Full Service Real Estate Firm.

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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

Deb’s Retail Dish and Deals:

Walking the Shoptalk

By Debra Hazel, president of Debra Hazel Communications

In my years of writing about retail, I’ve seen a lot of names come (hi, Fabletics) and go (so long, Musicland, Montgomery Ward, etc.).

It’s very rare when one comes back. Case in point: Toys R Us (TRU) is returning to physical retail in the U.S. after being forced into bankruptcy in 2017. But with a new owner (WHP Global), Geoffrey the Giraffe and company are making a comeback.

So, it was a real treat to hear Yehuda Shmidman, chairman and CEO of WHP Global, speak at a session about partnerships at the recent Shoptalk conference in Las Vegas. An expert in acquiring and monetizing brands, including Anne Klein and Martha Stewart, Shmidman clearly has a particular love for this company.

“Bringing back Toys R Us is a no brainer,” he told the audience. “That emotional memory is in us all.”

TRU has opened a flagship at the American Dream mall in New Jersey and is on track to open 400 in-store shops in Macy’s this year — it already operates on macys.com and so far has doubled the department store’s toy sales.

Even more important, 93% of all customers who came into macys.com through the Toys R Us site cross-shopped at Macy’s, too, Shmidman revealed.

“Think of the magic of Macys, the parade, the fireworks,” he said. “It had to be an omnichannel experience. The leadership at Macy’s is awesome; we’d worked with them for years through WHP. The leadership just gets it. I don’t think this partnership would have been imaginable years back, but now it’s obvious.”

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May 2022

TRU has remained in physical retail, he reminded the audience, with 900 stores doing $2 billion in sales annually outside the U.S., including a new one in Dubai. Plans call for growing the retail footprint over 50%.

“It’s a very exciting moment in time,” he said.

Equally as enthusiastic about stores was Jamie Salter, founder, chairman and CEO of Authentic Brands Group, who also spoke at the conference. (Shoptalk gets heavy hitters.)

“There’s no doubt that we look at ecommerce, but we really look at physical retail. It’s a big indicator for us as to how things are going,” Salter said, down to individual SKUs of the company’s brands, which include Aéropostale, Brooks Brothers, Forever 21, Nine West, Reebok and Thomasville. “I love stores.

Without omnichannel, we believe e-commerce won’t do as well.”

Forever 21 has been launched into the metaverse, though Salter acknowledged that not a lot of product is being sold. But online is serving as a great source of research.

“As a mall retailer, we believe physical retail is important,” he continued. “Over the last two to three years, physical is becoming more of an experience. But what we’re also seeing is that the consumer is changing. Now, the consumer is saying ‘I want that pair of jeans’ — and obviously they get that from the website.”

Authentic Brands has been on an acquisition spree in recent years, and likely will continue in the entertainment realm as it fuels the retail business. And the privately held firm likely will

go public or do a major transaction next year to offer its investors a return.

Gina Drosos, CEO of Signet Jewelers (the parent of Kay, Zales and Jared), noted that the reinvention of the company in a very fragmented sector of retail was based on digital informing the physical experience. Her first action on becoming CEO was purchasing James Allen, a digital jewelry company. Today, “90% of our best customers interact with us online,” she said.

The company cut costs in areas not visible to the customer, while focusing on trends that do appeal to Generation Z, including establishing trade-in programs and recycling to appeal to that audience’s desire for sustainability.

Re-commerce also is now a factor, with the company’s 2021 acquisition of Rocksbox, a jewelry subscription and rental company that can fuel sales in the long-term. Future acquisitions would focus on rentals or a service business as Signet continues to expand.

“We started as a $6 billion company; we wanted to be a $9 billion company,” Drosos said.

“Last year was great — we got much closer to our $9 billion vision.”

After so much negativity about retail during the pandemic, it was a pleasure to hear positive stories of reinvention — let’s hope we hear even more when the industry gathers in person again in Las Vegas this month for ICSC. Debra Hazel Debra Hazel Communications North Las Vegas, NV (201) 618-5247

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Americans Look Abroad to Meet New Housing and Investment Preferences

By Fabián Fernández Faith, FIFCO hospitality director

A new normal of sorts has emerged in the past year regarding the American housing market.

This new normal, due to a slew of factors, has pushed residents to consider moving abroad and to prioritize a new set of preferences when deciding on a new location. Influencing factors include, but aren’t limited to: skyrocketing inflation rates (more than 7%), supply chain issues and disruptions and a slowing housing market as demand gradually eases off from the rapid activity that took place in 2021. As these factors continue to affect the housing market, especially as house prices appreciate, mortgage rates increase and affordability becomes more limited, international home buyers will continue to be viewed as a high-quality option for investors and owners alike.

Lower Costs Key aspects that have made vacation countries even more attractive to expatriates in recent years are lower taxes, development costs and access to nature and open space. These and a host of other factors have led Americans to move abroad more than ever; only four million residents lived abroad in 1999, but by 2020 that number had reached 10 million. A country such as Costa Rica has taken advantage of these trends and opportunities and, though only a little over 100,000 Americans live there, that number continues to grow, especially in sustainable and resort-style communities.

Consider that at Reserva Conchal, a prime example of the kind of sustainable community resort that has access to top-class amenities, 60% of

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homeowners are American and 80% of residents overall are from North America.

The attractiveness of the country is in no small part due to the considerably lower taxes: property taxes are 0.25% of appraised value. Moreover, building and construction costs are substantially lower as well. The average per square foot of construction for a house in Costa Rica ranges from $70 to $110. Though the average in America is around $123 per square foot, the average in the biggest 100 cities is more than $1,000, according to realtor.com Work From Home Drives New Priorities for Homebuyers With workers more than ever operating from their homes or in remote roles, preferences for homebuyers have changed dramatically. Consider how high housing prices have become in major urban centers like Boston, New York City, San Francisco and other locales. For example, in San Francisco, housing prices were up more than 13% from 2020 to 2021, and the median housing price in NYC went up more than 8%.

No longer are employees strictly expected to live within commuting distance of a major employment hub. Moreover, they now have the ability to move without sacrificing future personal growth. While this affords the chance for employees to work from any number of states around the United States, it also offers the opportunity to work abroad, specifically in vacation countries that up until now would have been inconvenient and inefficient for employees.

In effect, American workers are expecting more out of their homes now. Households have become de facto work, entertainment, education and recreation spaces due to the increase in time spent inside by many — the Environmental Protection Agency reports that 93% of each day is spent inside.

But as working from home has continued in many industries, the chance to find housing options abroad that may offer more benefits and amenities, as well as access to green and outdoor spaces, have become all the more attractive. Per data, factors that have most influenced the decision to move are: better quality of life (56%), lower cost of living or housing (45%), different climate or better weather (45%) and change of scenery (31%), among other reasons.

These new preferences, as well as the steady increase of American home prices and singlefamily home production and construction rates hitting their lowest point since 1995, could lead homebuyers to look toward vacation countries.

These locales, like Costa Rica, offer flexibility, sustainability and asset stability, as well as lower tax and construction costs. Locations that can offer these advantages could stand to see increased activity and interest from investors, developers and potential homeowners in the near future.

Fabián Fernández Faith Florida Ice & Farm Company 2046-3000 Heredia.

San Jose, Costa Rica 2046 (506)2437-700

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ARTICLES

Preparing for a Succession or Transition Plan

By Phillip Ross, CPA, CGMA, partner and construction industry group practice leader, Anchin

In order to successfully transition a closely held construction business while still providing an exit strategy for current owners, preparation is key. In addition to the financial aspects, the identification and development of suitable replacements with the potential to fill key business leadership roles is vital for the continued growth of any construction company, and owners should plan accordingly.

Construction company owners must consider the long-term future of their businesses while balancing multiple, interconnected objectives.

Owners and construction firm leaders should aim to optimize operational and financial efficiency when preparing for this process in order to enhance earnings and improve cash flow throughout the transition and establish a solid foundation for the new leadership. This higher earnings potential will help to incentivize the next generation as they will see the financial rewards of becoming owners.

This will also be the main factor in determining the value of the company as well as how the new owners will be able to afford their ownership by leveraging the company’s earnings.

With an increased operating margin and more funds for the next-generation of leadership, there can be a higher-valuation and better ROI when selling, among other benefits.

In addition, future-proofing the firm’s financial, business and management systems, as well as ensuring the next-generation leadership consists of quality talent who have the right abilities and correct set of incentives and expectations, will help to streamline the process considerably. Firm leaders should also be prepared to handle interpersonal dynamics, specifically in family-owned companies.

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Though COVID-19 has stalled some transition plans, construction firms should prepare for the process to maximize productivity and time.

An early start on this can pay other dividends as well, such as maximization of options, flexibility and valuation. This also assists in minimizing risk and gaining consensus with buy-in from the key players in the firm as this process develops. With this in mind, a roadmap or blueprint for succession planning can be a useful tool. By developing a timeline and outlining specific traits, skills and behaviors valued in potential new leadership, as well as what the needs of the firm are, leaders can more accurately and effectively identify and execute a succession plan.

these matters are important in streamlining the process.

As part of this blueprint, construction firm leaders need to understand the value of their business. This can be accomplished by having a formal valuation done. This will establish a baseline for both the departing and future owners. Furthermore, consultations with attorneys and accountants will be key in planning a transition. Decisions need to be made on the terms of the transition, including buy-in/out amounts, length of payments, interest, earnouts (if any) and other matters. In addition, consideration must be given to any licensing requirements, revisions to any shareholder or partnership agreements, as well as organizational responsibilities.

Finally, this consistency and future growth potential is also an effective strategy for retaining talent during a succession process. Construction firm leaders can utilize incentive compensation plans to hold onto key talent and motivate workers to continue the company’s success under the next generation of leadership and ensure a smooth process throughout.

Those planning for this kind of process should also take into account tax considerations, including their entity’s structure, basis in their investment in the company, employment agreements and alternate methods for appraisal of the company value, if needed. Allocation of time for drafting all the definitive documents, as well as time to discuss and agree on all

Thorough preparation for a transition process and articulation of a coherent set of values and culture for a firm’s strategy moving forward positions companies to make the transition as smooth as possible and continue their success. Maintaining the company’s values and culture, including firm-level management and strategic thinking, are extremely important.

Time must also be devoted to developing these new leaders and transitioning the industry connections which will enable the business to continue to grow under new leadership and be positioned for profitability and growth.

As the economic landscape slowly returns to a sense of normalcy, transition plans, as well as efforts to attract and retain talent throughout the succession planning process, will be even more important. Construction firms that begin this as early as possible, with a blueprint that efficiently and effectively moves all parties through the process in a streamlined manner, will be the most successful.

Phillip Ross Anchin 1375 Broadway New York, NY 10018 (212)840-3456

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ARTICLES

Shopping for Yard Equipment:

Five Things to Know

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

It’s backyarding season, and that means homeowners will be spending even more time outside. The key to successful backyarding is making sure your yard is both beautiful and functional. Whether backyarding for you means creating a kid or pet paradise, expanding your space for entertaining, setting up an outdoor office or anything in between, now is the time to get “backyard ready” for summer, fall and beyond.

According to a recent survey commissioned by the TurfMutt Foundation and conducted by the Harris Poll, more than three quarters of Americans who have a yard (76%) say the family yard space is one of the most important parts of their home. The yard has also become a place to de-stress, with more than two thirds (69%) of Americans who have a yard saying that doing yard work, such as mowing, trimming or planting, is one of the ways they like to de-stress these days. This is especially true among parents of kids under 18, as they are more likely than their counterparts without kids under 18 to cite this (76% vs. 65%).

Completing big outdoor jobs is always easier with help from outdoor power equipment.

The right outdoor power equipment can help you get the work done faster and can help you safely maintain your yard. Here are some tips to help you choose the machinery you need to backyard in high style this summer: Plan your needs. Draw a sketch of your yard.

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Include any major features like trees, bushes, a herb or vegetable garden, flower beds, lawn furniture, play or sports equipment, an outdoor patio or bird bath. Note where maintenance may be required. Will bushes need to be trimmed back from your home or garage? Do you want to put in some flowering bushes or a tree? Are you planning to install a fence and more grass for your pet? Once you have your needs mapped out, list the tools and equipment needed to take care of your yard with an eye toward what will make the job easier.

Consider equipment you need. Visit your garage or shed and find those forgotten lawn and garden tools. Wheel out your mower and get out other equipment. Look it over and make a list of what is needed or could be upgraded. Repair anything that needs attention or identify where a newer or completely different machine is required. If you have a large vegetable garden, for instance, you need a cultivator or tiller. If you have a large lawn, an upgrade to a riding lawn mower might make more sense. A string trimmer could make caring for bushes or trimming grass near a fence line easier. A pole pruner can help trim back limbs that are too high to reach safely with a saw and a leaf blower can clear leaves faster than a rake.

Research equipment online before you buy. Think about efficiencies of scale. The right equipment can mean more time for other activities, while also making yard work more enjoyable. Doing online research in advance of

your shopping trip will help you pick the right equipment for the job. Outdoor power equipment can be gas, electric or battery-powered and technology is rapidly impacting product design. There are even robotic lawn mowers available today. Equipment may be sized to handle a smaller job or a massive one. Ultimately, your decision on what to purchase should be based on your needs.

Ask questions. Talk with the staff at the store or ask online about the equipment. In the store, ask to pick up and hold equipment to determine it is “fit” for you. Discuss safety features and ask about manufacturer fueling and care instructions. Find out how often equipment may need to be serviced.

Plan for storage and maintenance. Store your equipment in a cool and dry place. It also should typically be serviced at the end of the fall and the beginning of the spring. Put service dates on your calendar with a reminder.

For safety information and more, go to opei.org or turfmutt.com to learn more about backyarding year-round.

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

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ARTICLES

How Real Estate Brokers Can Successfully Deploy Proptech

By Curtis Williams, land investment professional, National Land Realty

In the last few years, real estate brokers have invested considerable resources in proptech that assists both customers and agents through the buyer journey. Many parts of the buyer journey have seen considerable improvements in user experience through the implementation of technological innovations, largely due to the pandemic.

Visualization technology helps buyers walk through properties and visit land they want to purchase without leaving their homes. Electronic file sharing and hosting applications help agents engage and share information with prospects without endless email exchanges and electronic signature services mean that nobody needs to drive to mail a bulky envelope with signed documents. The list goes on.

All these innovations are of great value in helping agents engage and transact with buyers, if agents are careful to employ select solutions that deliver great support to both themselves and their customers.

The Fatal Flaw of Proptech Deployment The very tool that helps customers discover their next purchases without leaving their homes will turn into a liability for the brokers’ brands if the application does not deliver a seamless user experience. This is especially true if the brokerage put its logo on the tool.

If a service is considered of critical importance to the brokerage, and the size of the contract warrants this, then the brokerage should seek entering into a service level agreement (SLA) with the vendor. The SLA should spell out the support for the real estate brokerage when there is a major or minor malfunction (whether that support is delivered through email,

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chat, telephone calls or anything else).

Consider the SLA as your vendor’s playbook for technical support. The brokerage should understand if the support received from the vendor fits into the brokerage’s culture. If your brokerage prides itself in developing a close, intimate relationship with your clients, you want a vendor’s tech support to echo that.

Timely Support Customer support provides a great opportunity to retain clients and team members. There’s also a great opportunity to frustrate and lose those same clients and team members. Emotional intelligence is another consideration when evaluating how your vendor’s technology takes care of your clients. Your clients will be looking for answers in a frustrated state.

The brokerage should nurture relationships and trust, and the SLA should address this.

Service support comes at a cost. The more personal human assistance a company provides, the more expensive the support. In many cases, cheaper technical support is provided through a chatbot or email. Although there’s a higher cost for personal service, this is also an opportunity to profit. A survey of 15,000 consumers done by PwC found that “86% of buyers are willing to pay more for a great customer experience, and 49% will make add-on purchases on the spot after receiving a personalized customer service experience.”

Another factor to consider is speed. We have all heard the saying, “Time is money.” A real estate brokerage must evaluate how long it takes to get an answer from the vendor. This could ultimately cost the brokerage clients and result in wasted man-hours. Many customer

frustrations can be fixed by providing timely answers to their questions. Control over this process will positively impact your sales team.

Brokerages will have to use the application themselves, at least for a period of time, to discover which vendors provide the best support.

Besides consulting peers, desktop research — on both the contractual promises made by the vendors, and how these vendors actually tend to deliver on those promises — will help the brokerage make informed decisions.

Which Platforms to Use Every year, a real estate brokerage should audit its portfolio of proptech vendors and evaluate them on a list of criteria. Cost, quality of service delivered and support should figure in that list. Where vendors fail to achieve a minimum aggregate score or score below a minimum threshold on any of the criteria, an examination will need to be conducted on how low scores can be remedied or, if that is not possible, what new vendor could replace the existing vendor that failed to deliver.

Proptech solutions of all kinds offer great value to real estate brokerages, their agents and their customers, on the condition that the vendors of those solutions offer reliable support to their users (both the agents and their customers). Brokerages need to vet vendors well before using their services and submit vendors to an annual evaluation that grades them based on a variety of factors, among them the support they offer.

Curtis Williams National Land Realty Richmond, VA (855)384-5263

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ARTICLES

Representation:

The Meaning of Judge Ketanji Brown Jackson’s Supreme Court Nomination

By Natalie Diaz, chief of staff at Time Equities Inc.

When I woke up on Monday, March 21 and turned on NPR, I was so excited that Judge Ketanji Brown Jackson’s Supreme Court nomination hearings were to begin. The commentators remarked on the historic nature of her nomination, the only Black woman ever to be nominated to the highest court in the land.

I immediately thought of my grandmother, wishing so badly that she could see this historic moment and that she could feel what I felt deep in my spirit: a rejoicing and pride, but that which cannot be separated from the underbelly of the pain of inflicted inferiority that Black Americans have always been subjected to in these United States of America.

es that weren’t built for you, remember sometimes that just being you is the revolution.”

My dad remembers fountains that were marked for whites only. He was 12 years old when the Civil Rights Act of 1964 was passed, which ended segregation in public places and banned employment discrimination on the basis of race, color, religion, sex or national origin.

It pains me to know that in those critical, formative years of his life, early and middle childhood, the society he lived in told him he was less than and a second-class citizen. It pains me to know that our society continues to tell so many of us that we are still less than.

It is never easy to be a first. It is never easy to step into a role or social position that was designed for the dominant group in society.

It is never easy to then prove yourself in that role or social position — to prove your worth, competency and ability to do well despite the fact that many people could never even imagine someone like you in that social position. It takes grit, determination and a steadfast belief in yourself. It also takes the ability to push through conscious and subconscious conditioning to play it safe and to operate in a way that will please others and not disturb their comfortability. No one tells you how to handle others being made uncomfortable by your social position.

Only 11 Black people have served in the U.S. Senate. President Barack Obama was only the third Black American to be popularly elected to the Senate; current Senator Cory Booker of New Jersey is the fourth. Only two Black women have ever been elected to the U.S. Senate.

There is a perpetual, shameful lack of representation in the leadership of our country.

Representation matters. As Elaine Welteroth writes in her memoir, “When you exist in spac-

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The world doesn’t prepare us all to dream big, to achieve and to occupy spaces and systems that were never meant for us. The world also doesn’t really talk about the bruises and cuts that come along with breaking through a glass ceiling. There are not enough signals and words, especially within mainstream or dominant society or culture, that teach Black and brown children to believe in their inherent worth and the possibility of their achievement, that anything is possible and that they can play a role in changing the world.

Judge Jackson’s nomination hearings lay these struggles bare — the lack of representation in both the public and private spheres of power and influence that run this country, and the hard road of resilience, determination and perseverance that “firsts” like Judge Brown must

travel to achievement.

As we witness this historic nomination, we all must remember just how recently Black folks could only ride the train in a certain car, or drink water from a certain fountain. To know that just because there have been opportunities for some of the privileged few, lack of opportunity at scale is still mired by prejudice and the racist underpinnings of our society.

To know that it is not easy to be a first, and the roads we travel to achievement are always more difficult than the roads of those that society was designed for — the dominant class.

As Booker said in his impassioned speech, Judge Brown is so much more than her race and gender, and we must never allow her or her legacy to be reduced to that. But for today, for now, let’s rejoice in her nomination.

[Editor’s note: Jackson was confirmed by the Senate on April 4.] Let’s rejoice in the power of representation — for little Black-brown girls to see her and believe the United States Supreme Court could be occupied by someone like them. Let’s rejoice in the smile and dance I know my grandmother is doing in heaven as she watches the hearings and feels my spirit of hope.

Booker, at the hearing, said it best: “Judge Ketanji Brown Jackson, you have earned this spot; you are worthy.”

Natalie Diaz Time Equities, Inc. 55 Fifth Avenue, 15th Floor New York, New York 10003 (212)206-6000

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RSA is the largest real estate trade association in New York. We’re a non-profit that has one priority: Housing New York Since 1983, the Rent Stabilization Association has worked for property owners in good times and bad. Now, during a public health crisis that is straining the economics of our industry, we are working hard to keep tenants in their homes and ensure that owners can continue providing safe and adequate housing.

RSA represents over 25,000 members with more than one million apartments. We provide cost effective and practical solutions to help owners run their buildings. In Albany and at City Hall, we are a forceful and consistent voice for the common sense needs of property owners. Our membership is deeply diverse and in every neighborhood. Though government and policy is unbalanced now, we’ve fought back through tough times before. And we’re doing it now.

We advocate for programs and funding.

We provide services to help our members comply with all laws and regulations.

We fight against reckless policies that unfairly target the industry.

Our counselors help members with any problems or government agency issues that come up.

Our monthly RSA Reporter is an industry must-read, always providing information necessary to keep owners up to date on compliance issues and other policies. We have weekly email blasts, policy action alerts, and updates on political and legal issues.

We are constantly fighting for policy that provides a fair balance to the needs of both building owners and their tenants.

123 William Street, New York, NY 10038 · 212-214-9200 · WWW.RSANYC.ORG

ARTICLES

New Uses for Office Space

By James M. Philbin, CPA, PFS, MST, CFP, partner, Marcum LLP

Reviews of recent papers, including the most recent NAIOP publication, indicate that at the end of 2021, national vacancy rates for office space settled at 17.6%. However, with job growth expected to continue, office-use employment is likely to reach pre-pandemic levels by the middle of this year. Despite these projections, the outlook for the demand for office space remains in doubt. Return-tooffice timetables have been pushed back as new COVID-19 variants and uncertainty about the path of the virus emerge. It is clear, however, that the COVID-19 pandemic has changed the way work is conducted. Remote and hybrid work models are very popular with employees, and most likely will stay on as employers attempt to satisfy the needs of a post-pandemic workforce.

Reflecting the possible decline in the need for office space, investors are considering new uses for existing space. Adaptive reuse, which is the process of repurposing a vacant or underutilized building and converting it to another use, is being strongly considered for several reasons. Adaptive reuse can be as much as 20% less costly than building from the ground up. Adaptive reuse also allows the historic character of a neighborhood to be maintained and is considered more sustainable, as there is less construction required to convert a building than to create a new one. In addition, permits and other required approvals may be easier to obtain than for new construction.

As the housing market remains strong, the potential for adaptive conversion of office space

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to multi-family residential properties becomes economically viable. Also, as the need for more affordable housing has become a serious problem in many areas, providing more housing units in centrally located areas becomes more important.

Adaptive reuse can optimize the operational and commercial performance of a building by transforming obsolete spaces to serve entirely new purposes. A conversion to multifamily housing will likely be more successful in markets where multifamily vacancy rates are lower than office space vacancy rates, and rent growth is expected to exceed office space rent growth.

The feasibility of converting a building to residential use involves many factors: most notably, the prospect of higher net operating income for the investor under residential use, a building structure that is amenable to a residential transformation and a regulatory environment that does not hurt the viability of a conversion project.

A wave of adaptive reuse projects involving the conversion of office buildings into life science facilities is indicative of the increasing demand for life science facilities. The life science sector has experienced significantly increased importance in large part due to the pandemic. Biotech and pharma firms are racing to develop treatments using the genomics breakthroughs that produced the COVID-19 vaccines. Consequently, the need for more office space represents an opportunity for an adaptive reuse

from traditional office space to flex-space for life science labs and administrative work. Converting an office building into a life sciences lab is more expensive than other reuse projects due to the special systems needed for ventilation, cooling and moving equipment. However, the benefits for investors include the fact that the life science industry is less sensitive to fluctuations in the economy and is therefore less impacted by recessions. Life science employees are more likely to work on-site, necessitating space for a full workforce. Additional factors supporting conversion to a life science use is the significant investment from IPOs and venture capital. These firms are more likely to have the funding to commit to longer (and more expensive) lease terms.

Another opportunity for adaptive reuse is the conversion of office buildings to medical office facilities. While the demand for medical office space has consistently been higher than for traditional office space, over the next 10 years, the 65-and-over population is expected to be the fastest-growing demographic in the U.S. Properties located in areas with good access to hospitals, specialized medical treatment centers and intensive care units are good candidates for conversion. Infrastructure considerations include parking, drop off/pick up, zoning and power/life safety redundancy.

James M. Philbin Marcum LLP 53 State St., 17th Floor Boston, MA 02109 james.philbin@marcumllp.com.

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ARTICLES

Digital Twins are Revolutionizing Big Real Estate Data, But What Do Companies Do with It?

By Ian Siegel, digital project director, Willow

Originally developed by NASA, digital twins are being embraced across the commercial real estate industry as the must-have tool for big data and efficiency from construction through the asset management life cycle. The industry’s biggest players are increasingly among the leaders in the deployment of digital twins.

For the uninitiated, a digital twin is a powerful technology that converts physical structures into living, learning and evolving virtual replicas. Digital twins are the most intuitive way to store, organize and access the incredible amount of data generated by the various, complex technology systems that make buildings “smart” for owners, facility managers, occupiers and other built environment professionals.

And yes, you can interact with your building’s digital twin through a really futuristic-looking 3D or 2D layout.

The goal of digital twins is to give built environment professionals real-time insights to strategize and optimize various aspects of a building’s operations. The technology is ultimately supposed to open new horizons for sustainability, tenant experience, efficiency and risk management as owners and operators will have complete transparency and a single source of truth on big data from across a facility’s myriad complex systems. Owners can solve problems before they happen and identify previously impossible integrated strategies. For example, if there’s a corner of the 29th floor that tends to be a bit warmer than the thermostat’s set point, the digital twin is

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designed to let you know whether the source of the problem is with the air conditioning unit that serves the space, the fan that provides cooled air to the entire floor or the nearby south-facing window that isn’t sufficiently shaded or insulated.

But how do you get from the collection of this massive amount of data to something you can actually use? This part is not simple, and not all digital twin technology can help you develop an efficient, cost-effective solution for your property that is suited to the way its occupants work.

Clean Data & Customization The original digital twin models were essentially virtual dashboards of building systems and management data. In other words, the technology-enabled digital twin was originally a replication platform. Today, however, they do much more — or at least they should.

One of the major hurdles is establishing clean, easily navigable data. The best digital twin solutions don’t simply compile data and visualize it; they give context to the data by mapping the complex web of relationships among the building’s equipment, systems, spaces and people.

Many of the technology systems installed in today’s buildings are notoriously difficult to pair with other solutions; this is an issue, because the real insights are to be found in the development of a holistic digital approach that allows the digital twin to work in tandem with

other proptech solutions to develop analytics and insights that drive informed, agile decision-making.

You can think of it almost like having a smart phone. The phone performs its basic functions for any user, but apps personalize it to the needs of the individual user. Digital twins aren’t that much different. Your data should be easily integrated to your customized suite of data services, whether it’s climate control, fault detection, cost management, safety, leasing activity, meeting room management, visitor security, access controls, water reduction or any number of details geared for your team members that make your building hum, whether it’s a commercial office, apartment tower or something less traditional, like a football stadium, airport or data center. Without that, the data can be difficult to maneuver and act on, even with a virtual replica.

It is true that digital twins are the next step in the evolution of sustainability, safety, risk management, efficiency and user experience in the built environment, but getting that granular mass of data is only half the battle. Putting that data to work is what will ultimately optimize your building for performance, and that is the goal.

Ian Siegel Willow Governor Phillip Tower, Level 21 1 Farrer Place Sydney NSW Australia 2000

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ARTICLES

An Attorney Discusses Retail Leases

By C. Jaye Berger, Esq., founder of Law Offices C. Jaye Berger

Retail leases are becoming more prevalent now as the pandemic comes to an end and the economy picks up and starts to turn around. The biggest things that most people think about regarding leases are the amount of monthly rent and the location of the store.

However, there are many more issues than just the amount of monthly rent to be paid. At the top of the list are the design of the store, how will the build-out be undertaken and who will pay for it. Part of the lease negotiation is often the landlord agreeing to give some free rent which can be used toward the tenant’s build-out. There are so many different configurations of buildings that it is impossible to fit everyone and every situation.

There may be some completion requirements by the building owner which tenants must be mindful of when making their plans. For example, if you have a certain number of weeks to do the work and there are some elements in the building that need to be fixed before you can do what you need to, you need to negotiate so that the landlord’s work does not hold up your own. You can’t just say that you were unable to complete the renovation in a timely fashion because the landlord’s broken step in the building’s entrance hallway was interfering with and preventing deliveries. There may also be repairs that the landlord must make on his

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own property to clear the way for work the tenant will do on its space.

The tenant must have a team of professionals lined up and assisting them, and the planning must start well in advance of signing a lease.

That team should include a licensed architect, perhaps an interior designer, a general contractor and various subcontractors. If the store is a location of a national or international retailer located elsewhere, there must be a local architect advising the team so that the project is in compliance with the local building code.

Be cautious about the selection of a general contractor, especially if it is a company that the landlord has chosen. Some landlords have a list of approved contractors. However, just because the landlord had the contractor on its approved list, that does not mean that you’re not responsible for timely completion. Since the laws and building codes will vary, an element that was used on a store in a different location could be problematic and in violation of the local building code in the current location.

Sorting that out can result in delays.

However, the tenant renting the space must be aware of the condition of the building spaces around it and how they may affect their space in their lease. For example, there may be

a condition on an upper floor which perhaps has not been attended to by the landlord or by that tenant. Ordinarily, the tenant renting the retail space would not be concerned about a tenant elsewhere in the building, but if nothing is said, that condition may adversely affect the rental space. The landlord is not responsible for delays caused by your litigation with other tenants. It is best to try to work everything out before the lease is signed.

The design process may be time-consuming, because there can be controversial issues that involve load-bearing walls being moved, electrical wiring and other things of that nature.

There can also be issues involving adjoining buildings, such as an awning or Local Law 11 scaffolding that interferes with your project.

On one project I was involved with, the scaffolding had to be moved so the tenant could gain access to work on the storefront. Those are complicated issues that involve other parties and their access agreements and take time to resolve.

C. Jaye Berger Law Offices C. Jaye Berger 110 East 59th St., 22nd Floor New York, NY 10022 lawofficescjb@aol.com (212)753-2080

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A.E.C

Brickless Developers Group Launches Construction on Virtual World of Metaverse and Reality Digital replicas help buyers purchase their physical counterparts.

I

s it real or is it metaverse? In Port St. Lu-

metaverse replica on an augmented reality

selling for a median price of $350,000, ac-

cie County, Florida, the answer is both.

platform to complement the physical town.

cording to Redfin.

its innovative construction systems, re-

Brickless Developers is planning a city of

The 834-acre masterplan, which makes up

cently went under contract for the acquisition

the future designed to answer to immediate

an official town in the county of St. Lucie, fea-

of 834 acres for commercial and residential

residential market needs as the demand for

tures 733 acres of residential development

use in the county as it pursues development

housing in Florida rises to unprecedented

and 101 acres of commercial development.

plans for a self-sufficient town. Additionally,

highs. As of February 2022, Port St. Lucie

Those include 2,600 units comprising

the developers are unveiling a one-to-one

home prices were up 29.6% year-over year,

single-family homes, townhomes, multifamily

Brickless Developers, long known for

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A.E.C

The development will occupy 834 acres.

signing a community that is truly future-ready

The plan includes homes and commercial uses.

in every dimension.”

In the master plan’s digital replica, users can navigate through the site plans, select their desired land parcels, interact with neighbors and participate in the design of their own homes and social spaces, all to be replicated in the physical development in Port St. Lucie.

This innovative approach gives investors a

lar organic farm and self-farming agriculture,

buildings, commercial areas, civic sites, fire

dynamic stake in the project with the ability

intelligent design, high-tech construction

and gas stations and more. Physical con-

to have a role in the conceptualization of

and smart homes with wellness features in-

struction is set to begin in 2023.

the town, setting a precedent for cities of

cluding filtered water, purified air and home

the future.

offices. The development is designed to be

“We are not only building to fill a significant

self-sufficient beyond the traditional live,

demand for housing, but also for evolving so-

“We are redefining the process of purchas-

work, play destinations, this community is

cietal and technological needs,” said Nelson

ing a home,” added Delgado. “Brickless is

set to embody a philosophy of power, feed

Delgado, founder of Brickless Developers.

creating the possibility for customers to cre-

and thrive.

“Due to the unstable lifestyle that the whole

ate their own community according to their

world has experienced during the past few

needs and passions.”

years and the uncertain future, Brickless is

The Port St. Lucie County has already approved the physical 834-acre project. At

pushing the boundaries with the creation

Brickless Developer’s technology, that uses

press time, Brickless Developers planned to

of a community that is safe and shielded

aluminum formworks and 100% monolithic

launch a crowdfunding platform, allowing for

from external events such as COVID-19,

concrete shells, allows it to significantly

accredited investors with investments as low

which brought us to unexpected lockdowns.

speed up the construction time and forecast

as $25,000 to $500,000.

We’ve all been on the receiving end of the

the completion of this macro project in three

supply-chain shortages, climate change, a

years, the company said. The town’s sustain-

Photos courtesy of Brickless

global pandemic and more. Now, we’re de-

able masterplan features solar farms, modu-

Developers Group

The project should be completed in three years.

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May 2022

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A.E.C

Kimmerle Group Office Expands and Renovates 650 From Rd. in Paramus, NJ

K

Cafe - 650 From Road

Exterior Amenities - 650 From Road immerle Group, a New Jersey-based, multifaceted design, real estate, planning, development and branding practice, has completed a full-building renovation and expansion at Onyx Equities’ 650 From Rd. in Paramus, New Jersey. Onyx

Equities, a real estate investment and property services firm specializing in commercial properties, acquired the 350,000-square-foot, five-story building from Mack-Cali in 2019.

Kimmerle was retained by Onyx Equities to carry out capital improvements throughout the building’s office and amenity spaces. The design firm provided site design, conceptual and architectural design, interior design and product purchasing and procurement services for all interior and exterior areas. The firm’s full-service engagement also included conceptual studies for branding, signage and messaging elements in 650 From Rd.’s common areas.

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A.E.C

3 Giralda Farms-Conceptual Cafe

The lobby and atrium were upgraded.

Completed in 2021, the renovation of 650 From Rd. features a rede-

Urban amenities come to the suburbs.

contemporary furniture in a similar color pale"e and tones.

signed and upgraded suite of tenant amenities, such as new café with indoor/outdoor dining areas, recreation center with a putting green,

A completely redefined and relandscaped lakeside common activity

pool table, lounge seating and arcade games. Tenants also have ac-

area includes outdoor seating under a new canopy, pergola shelters

cess to a high-end conference center and lounge with accent lighting

with Wi-Fi and power access, active fitness/walking paths and recrea-

and custom perforated metal celling details. The upgrades have an

tion stations, new site lighting and pavers throughout the landscaping,

urban ambiance in an otherwise suburban location.

as well as outdoor workstations and collaboration areas for tenant use.

A reimagined central atrium lobby with a custom-designed chandelier

“Working with Kimmerle Group on the modernization of 650 From

features a five-story, live green wall and customizable RBG lighting fea-

Road, with the addition of a myriad of desirable amenities and fea-

ture wall that can accommodate tenant and owner branding. This new-

tures, has elevated the property to a class-A destination that is sure

ly designed lighting at the feature walls and in the atrium is highlighted

to a"ract a variety of tenants that will enjoy the offerings for years to

throughout the day and evening hours and is a landmark visible from

come,” said D.J. Venn, senior vice president of asset management at

the Garden State Parkway. With the primary design intent of “bringing

Onyx Equities. “This project points the way for the reinvention of older,

the outside in,” the five-story green wall lines a new corridor leading

suburban New Jersey office assets, as active and amenity-rich office

to the conference center and lounge. The adjacent lobby is finished in

parks gain new appeal and market advantage for a new age of users.”

warm wood tones and concrete and porcelain LVT flooring, as well as

mannpublications.com

Photos courtesy of Kimmerle Group

May 2022

109 | MR

National Jewish Health

Breath of Life New York Golf Tournament Honorary Chairs Robert E. Helpern* Tannenbaum Helpern Syracuse & Hirschtritt LLP Stephen B. Siegel* CBRE, Inc.

Chair Emeritus Samuel B. Lewis* SBL Property Consultants, LLC *National Jewish Health Trustee

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39 Brae Burn Drive | Purchase, NY Register Today Mattie L. Shepheard | 212.297.0857 | ShepheardM@njhealth.org

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BENEFITING

COLLEGES

STEMming the Sprawl: Mt. San Jacinto Community College Breaks Ground on Tech Facility

MSJCC STEM Main Entry

MSJCC STEM South Rendering

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May 2022

MSJCC STEM North View

mannpublications.com

COLLEGES

G

MSJCC STEM Study Space Labs

MSJCC STEM Lobby

rowing an academic program dedicated to science, tech-

MSJC is part of California’s 116 community college system that trains

nology, engineering and mathematics is great — except

local residents for jobs and prepares students to earn associate de-

when students must travel among multiple buildings. That’s

grees and transfer to four-year universities. MSJC is a comprehensive

why Mt. San Jacinto Community College District (MSJC), has

college serving a 1,700-square-mile area from the San Gorgonio Pass

broken ground on a centralized STEM Science & Technology facility at

to Temecula.

the San Jacinto, California campus. C.W. Driver Companies is constructing the $37 million building in partnership with LPA Architects. MSJC’s voter-

“Our goal at MSJC is to provide our students with the best possible ed-

approved Measure AA facilities bond will fund half of the project while the

ucation to prepare them for their future endeavors,” said Todd Franco,

state’s Prop. 51 will fund the other half. The facility is anticipated to reach

dean of facilities planning, district construction and support services

completion by Fall 2023.

at Mt. San Jacinto Community College. “This new centralized hub for our math and science departments will allow our teams to collaborate

The three-story, 57,374-square-foot STEM building will include science

in a permanent space that will contribute greatly to the STEM educa-

labs, lecture rooms, general classrooms, math and general studies labs

tion and research at MSJC.”

and faculty offices. The San Jacinto campus’ growing biology, physical science and math programs are currently not centralized due to space

In 2021, C.W. Driver Companies completed the construction of Mt. San

constraints and are located in several buildings across the campuses. In

Jacinto College’s Temecula Valley Campus.

addition to providing centralized buildings, the project will provide the math department with a permanent place for instruction.

In addition, the college recently debuted an animatronic makerspace at MSJC contracted with Redlands visionary Garner Holt Education Through

“C.W. Driver Companies is proud to continue our partnership with Mt. San

Imagination (GHETI). Taking over two classrooms in the 100 Building on

Jacinto College to provide their students with a best-in-class campus,”

the campus and adjacent to the future STEM building, the GHETI AniMak-

said David Amundson, project executive at C.W. Driver Companies. “It

erspace — in conjunction with MSJC design and engineering classes —

was an honor to be able to leverage our decades of experience in higher

will give students the ability to learn the practices and skills needed to be-

education to provide students and faculty with a centralized, permanent

come great problem-solvers, designers, builders and technical operators,

facility to further their research and learning.”

the college said.

Photos courtesy of LPA Architects

mannpublications.com

May 2022

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National Jewish Jewish Health National Health LOS ANGELES REAL ESTATE

GOL F C L AS S IC Monday, May 16, 2022 El Caballero Country Club Tarzana, California 2022 COMMITTEE Anthony Behrstock

Co-Chairs

Commonwealth Land Title

David Sonnenblick

Sonnenblick-Eichner Company

Zach Brandler

Ron Friedman

Jeff Mann

Jonathan Canter

Carrie Jenkins

Deborah Medway

Steven Cohen

William Mark Levinson

Eric Nelson

Fred Lionetti

Christine Ouzounian

Corcoran Global Living

Marcum LLP

JP Morgan Securities

Triumph Business Capital

Real Estate Investment and Operational Exec and Principal

Charles Eberly

The Eberly Company

Carlton Fields

Business Broker and Consultant

Mann Publications Stewart Title

Rimrock Real Estate Ventures Commonwealth Land Title

Michael S. Rosenblum Law Offices of Michael S. Rosenblum

Josh Rubin Nico

Todd Sherman

First Pacific Financial

Matthew Winnick

Managing Partner Kilowatt Capital

Don’t miss this opportunity to play at the newly redesigned course at El Caballero Country Club.

Reserve your foursome or sponsorship today at njhealth.org/lagolf or contact Keri Henning at 818.905.1300 or HenningK@njhealth.org.

The health and safety of our guests is of the utmost importance.

We will be complying with the latest COVID-19 guidelines and strive to make your experience as safe as possible.

www.kaufmanorganization.com

A MODERN APPROACH TO COMMERCIAL REAL ESTATE POWERED BY A CENTURY’S WORTH OF EXPERIENCE

KAUFMAN'S REPOSITIONED PROPERTIES

WEST 23

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EXECUTIVE CHANGES

leadership team. During this period, Gem-

Ferguson Partners Promotes Burgess to CEO

ma has strongly demonstrated her ability to maintain the Ferguson Partners standard of Gemma Burgess

excellence while implementing her vision to evolve the business. Her experience and impact across industries in addition to her

Ferguson Partners, the talent management

inally based in Ferguson Partners’ London

broad, global background and perspective

and strategic advisory firm for the global real

office, and then transitioning to oversee its

makes her uniquely qualified for the role and

assets industries, has promoted President

New York City office before taking on respon-

absolutely the right leader to take Ferguson

Gemma Burgess to chief executive officer,

sibility for the U.S. search business and then,

Partners into the future,” Ferguson said.

effective June 1. Burgess has over 15 years

most recently, the global search business.

of global leadership experience and brings

Burgess is also a staunch advocate for di-

Burgess’s appointment comes as the firm plans

a vision for 2022 and beyond, which will

versity, equity and inclusion (DE&I) and was

an expansion of its corporate leadership team,

continue to focus on providing customized,

responsible for creating the inaugural diver-

with future announcements to follow.

client-centric solutions today while growing

sity partnership in 2020 with the Real Estate

and evolving the business for tomorrow’s

Executive Council (REEC); she continues to

“I am incredibly excited for the future of our

needs. Co-founder and current CEO Wil-

be an active participant with the association.

firm,” said Burgess. “With confidence we will continue to grow our global platform and

liam J. Ferguson will continue as chairman and remain actively focused on leading

“Gemma’s transition reflects the culmination

uphold the Ferguson Partners standard of ex-

client engagements.

of a well-planned multi-year succession plan-

cellence. I will continue to be hands-on with

ning project. She has built an excellent part-

our clients who, as always, can expect our

Burgess joined Ferguson Partners in 2007

nership with Jeremy Banoff, vice chairman,

signature tailored, a#entive approach to their

and has developed a global acumen, orig-

and is supported by a best-in-class global

unique needs.”

Ripco Names Von Schmid as Managing Director for Tri-State Area Markets

and landlords for nearly two decades and will have a positive impact on the firm from day one.”

Prior to joining Ricpo, Von Schmid had served Brian Von Schmid

as vice president of SRS Real Estate Partners since 2015. He completed notable deals while there, including the leasing of Linden

Independent NYC retail brokerage Ripco has

state area. He will work out of the firm’s Long

Legacy Square in New Jersey and Volvo’s

named Brian Von Schmid managing director

Island, New York office.

60,000-square-foot lease in Midtown West.

He also served as vice president at Related

for the firm’s tri-state area markets.

“We continue to actively recruit top talent and are

Companies. Earlier, he served as director of

Von Schmid, who has nearly 19 years of

excited that Brian is joining us. Brian is a highly re-

leasing at Cappelli Enterprises. His successful

expertise in handling leasing with landlord

spected retail broker across the tri-state area and

track record includes representing landlords

agency and tenant requirement work, will

will be a valuable addition to the team,” said Mark

and tenants such as Fogo de Chao Brazilian

work closely with Ripco’s team to expand

Kaplan, chief operating officer of Ripco. “He’s

Steakhouse, Export Fitness, Ceruzzi Properties,

the company’s presence throughout the tri-

been representing an impressive roster of tenants

Harbor Group Properties and TF Cornerstone.

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EXECUTIVE CHANGES

Goulston & Storrs Adds Two Laterals as Counsel in its Real Estate Group

Nelson joins Goulston & Storrs from a major law firm in New York City where he was of counsel, handling real estate leasing for comAmelie H. Mailloux

Ronald G. Nelson

mercial landlords and tenants. Before that, he spent six years at DLC Management Corp., most recently as senior real estate counsel.

Goulston & Storrs announced that Amelie H.

liam Dillon, co-managing director of Goul-

He has nearly 20 years of real estate industry

Mailloux and Ronald G. Nelson have joined

ston & Storrs.

and legal experience including working inside real estate companies in leasing, acqui-

the firm as Counsel in its Real Estate Group.

Prior to joining the firm, Mailloux was the direc-

sition and investment roles. He will continue

Amelie H. Mailloux has joined the firm’s Bos-

tor of leasing and dispositions at Retail Busi-

to concentrate his practice on sophisticated

ton office, where she will continue to focus

ness Services LLC, where she provided real

lease agreements for commercial spaces

her practice on a wide range of complex real

estate leasing services to multiple operating

and land parcels. His experience spans many

estate and retail leasing ma#ers. Nelson has

brands including major supermarket chains.

property types, including office, medical,

joined the firm’s New York office, where he

In this role, she also directed and managed

laboratory, industrial, hospitality, restaurant,

will continue to concentrate his practice on

the real estate activities for Ahold Delhaize’s

retail and shopping center spaces.

sophisticated lease agreements for commer-

non-supermarket real estate assets in the U.S.

cial spaces and land parcels.

She brings more than 20 years of business

Mailloux received her J.D. from Suffolk Uni-

and legal experience in commercial real estate

versity Law School and her bachelor’s degree

“We are very excited to have these two sea-

transactions to the firm, and will continue to

from Wi#enberg University. Nelson received

soned real estate a#orneys join our practice.

focus her practice on a wide range of complex

his juris doctor degree from Northeastern

Amelie and Ron will be excellent additions

real estate and retail leasing matters. She has

University School of Law, his master’s degree

to our leasing team in Boston and New

deep experience in the leasing and disposition

from New York University and his bachelor’s

York. They both bring deep in-house and

of assets, including the negotiation and docu-

degree from Binghamton University/State

outside experience to the firm and will be

mentation of new leases, extensions, amend-

University of New York.

invaluable resources to our clients. We are

ments, lease assignments, lease terminations,

thrilled to have them on board,” said Wil-

buyouts and sales agreements.

(PRNewsfoto/Goulston & Storrs PC)

In 2017, after more than 40 years of engi-

OLA Consulting Engineers Promotes Amicone to Principal

neering projects throughout New York City, OLA opened an office in Manhattan. The Ma!hew Amicone

firm tasked Amicone with leading the New York City team and managing the day-today operations — including marketing and

OLA Consulting Engineers has promoted

projects for clients New York-Presbyterian, Arch-

business development, client relationship

Matthew Amicone to principal in charge of

Care, City of Hoboken, NYC Department of Con-

management, project management and

the firm’s New York City office.

struction & Design and Touro College.

quality assurance.

An electrical engineer, Amicone’s expertise in-

Amicone, a resident of Yonkers, New York, first

OLA Consulting Engineers’ expertise in-

cludes the design of electrical systems for various

joined OLA Consulting Engineers as a sum-

cludes HVAC, electrical, plumbing and fire

building types. During his 20-year tenure with

mer intern and then began full-time in 2002

protection, as well as mechanical, electrical

OLA, he managed many of the firm’s significant

a$er graduating from Villanova University.

and energy engineering.

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May 2022

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EXECUTIVE CHANGES

Levin Management Announces COO and CFO Promotions

commitment to leadership continuity as we work to provide clients with the highest quality service and plan for our future.”

Jennifer Mercer

Paul Tavaglione

Carson joined LMC in 1992 as vice president of property management. He was promoted to

Levin Management Corp. has announced two

joined LMC as controller in 2019, has played

executive vice president in 2006 before being

executive promotions, with Paul Tavaglione

a critical role in overseeing departmental

named company president in 2019. Throughout

named executive vice president and chief

management and providing financial and

his tenure, he has been integral in the firm’s day-

operating officer, and Jennifer Mercer named

operational oversight for key assignments,

to-day operations, overseeing coordination

vice president and chief financial officer. The

including The Paramount Building, a 33-story

of new client properties and transitioning new

advancements precede the July retirement

Times Square office tower.

management assignments to the Levin team.

the company in key leadership positions for

“This is an exciting time at Levin Manage-

For seven decades, LMC has served as a

three decades.

ment,” said Ma"hew K. Harding, chief exec-

single-source commercial real estate services

utive officer. “One of the key indicators of an

provider for institutional and private owners.

Tavaglione joined Levin in 2001 as control-

organization’s strength is its ability to pro-

The firm offers leasing, property management,

ler and became assistant vice president in

mote from within, and these well-deserved

financial management and reporting, construc-

2007. In 2016, he was elevated to deputy

advancements capitalize on the breadth and

tion management and development, lease

chief financial officer, and in 2017 rose to the

depth of our seasoned managerial team. The

administration, marketing services and acquisi-

position of vice president/CFO. Mercer, who

changes taking place here also reflect our

tion and disposition consulting services.

of President Robert Carson, who has served

plex deals is valuable for the future growth

Kaufman Organization Elevates Sternberg to Partner

of Kaufman.”

Jared Sternberg

Previously serving as managing director, Sternberg will join Greenspan and Partners Michael Kaufman and Michael

Kaufman Organization has promoted Jared

strategies to understand the needs of his

Heaner to co-lead the division, which spe-

Sternberg to partner of the company’s

clients as well as the ever-changing com-

cializes in the representation of tenants,

leasing division, Kaufman Leasing Compa-

mercial landscape of New York City,” said

landlords and buildings. Some notable

ny. Sternberg, who has been with Kaufman

Grant Greenspan, principal of Kaufman.

assignments he completed include the

since 2012, has been instrumental in the

“It’s important to have a leader like Jared

repositioning and 100% leasing of 115

firm’s growth throughout New York City, fo-

on our team as he has formed strong, long-

West 23rd St. as well as the reposition-

cusing on Midtown South and Downtown,

term client relationships over the course

ing of 625 Broadway, 236 Fifth Ave. and

Manha"an, the firm said.

of his time with the firm, and more recently

131-133 Spring St. He has completed

set a strong example during COVID-19 for

deals with retailers and owners such as

“Jared has played a vital role in advancing

our other brokers. His optimism towards

ButterflyMX, Softomotive, Gemdale USA,

Kaufman’s leasing division by developing

the market and push to complete com-

Sabio and Alliance Bernstein.

118 | MR

May 2022

mannpublications.com

EXECUTIVE CHANGES

struction division at Trimble, launching Trimble

Lobby CRE Names Hollander Chief Executive Officer

Construction One.

Anne Hollander

Lobby CRE emphasizes speed to value as a central component of client experience and ensuring they realize the value of their capital. The Thirty

Lobby CRE, a subsidiary platform of tech ac-

With both a background in real estate technol-

Capital team has more than 20 years of bespoke

celerator Thirty Capital, has appointed Anne

ogy and experience in growing and scaling

experience in real estate management, invest-

Hollander as chief executive officer. Formerly

technology companies, Hollander understands

ment and optimizing financial returns.

the chief strategic officer, Hollander is now

real estate management, investment and the

taking over the role of CEO from Lobby CRE

potential of tech in CRE, and integrates these

“Everybody on the team is excited about the future,”

and Thirty Capital founder Rob Finlay. Finlay

insights to meet the needs of property owners,

Hollander said. “We’re bringing clarity to the com-

will stay on as chairman to support his vision

managers and investors, the company said

plex world of real estate. Our vision for the next year is to establish Lobby CRE as the preeminent solu-

for the platform.

Prior to Thirty Capital, Hollander led product

tion in the CRE mid-market for managing the perfor-

“I’m excited to see where Anne will take Lobby

marketing for RealPage, where she developed

mance of commercial real estate assets. Stakehold-

CRE. We’re at a unique point as the business

and executed go-to-market strategy for emerg-

ers entering the CRE space from other industries are

transitions into rapid growth. We validated Lob-

ing technology and high-growth markets and

accustomed to a wide variety of tool sets and data

by CRE with our initial partners and clients and

launched the first artificial intelligence tenant

at their fingertips. But when transitioning to real es-

now we’re geared to scale. Anne is a core part

screening solution in the real estate industry.

tate, they realize none of that exists in this space —

of that vision,” said Finlay.

She also led product marketing for the con-

Lobby CRE is here to solve that problem.”

experience second home ownership and

Pacaso Adds Cumberland as Chief Operating Officer

pioneering a new category in real estate,” said Cumberland. “I look forward to workLara Cumberland

ing with Austin and the rest of the team to continue building upon their momentum and rapid growth, while enhancing the Pac-

Pacaso, the technology-enabled real estate

berland will report directly to Chief Executive

marketplace that helps people buy and co-

Officer Austin Allison.

aso owner and buyer experiences.”

Prior to joining Pacaso, Cumberland led

own a luxury second home, has appointed Lara Cumberland as chief operating officer,

“Lara is a dynamic leader with extensive experi-

mergers and acquisitions at Meta, formerly

effective May 16. Cumberland brings more

ence building, scaling and optimizing complex

Facebook, where she oversaw the integra-

than 20 years of experience working at pre-

operations at some of the world’s leading tech

tion of all global acquisitions from 2015.

mier technology companies, including Meta,

companies,” Allison said. “Lara is perfectly po-

Before that, she held senior leadership

PayPal, eBay and IBM. In this newly created

sitioned to help propel Pacaso forward during

roles overseeing M&A integration for more

role, Cumberland will lead Pacaso’s key

this stage of accelerated growth.”

than 100 acquisitions at premier technology companies including IBM, eBay

cross-functional initiatives to deliver on great owner experiences on a global scale. Cum-

mannpublications.com

“Pacaso is truly changing the way people

and PayPal.

May 2022

119 | MR

24TH ANNUAL

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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

Real Estate Here and Abroad

By Myles Mellor

Across

Down

1. UAE island, the site of a new integrated

1. Color of honey

resort development by Wynn, two words

2. Type of residential property, two words

6. Estate land measure

3. ___rule (usually), two words

9. What zoning determines

4. The R in STR

11. Distribution of the visual weight of objects,

5. Artist’s workplace

colors, texture and space

7. Former diner waitress who started a real

12. Column style

estate company with a $1,000 loan and

13. Money to the bo"om line, abbr.

years later sold it for $66 million

14. Able to adapt quickly

8. And all that jazz, abbr.

15. Original manufacturer’s item, abbr.

10. Advantage

17. First name of the founder of Kushner Studios

16. NYC real estate brokerage and ad-

19. Skilled cra#smen

visory firm that focuses on close

21. Dorothy’s auntie

collaboration with landlords

23. Vibrance in design

and tenants

25. Popular

18. Mann’s “___ Zauberberg”

27. Jamaica in NYC?

20. Won’t take “no” for an answer

28. Method of decorating metal with enameling

22. Affectedly trendy, two words

30. Dear

24. Dark-colored heartwood

31. Concern for developers of new residential

26. “Inventing___,” Netflix miniseries about

buildings in urban areas 32. Vital design element

a “German heiress” 27. Garden section 29. Land portion

124 | MR

May 2022

mannpublications.com

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COMMERCIAL CORNER

Fimida Enterprises Daniel Figotin Founder

D

owners to understand the management of

Fimida Enterprises, a real estate

How long have you been in the real estate business?

management, investment and

Since I was eight years old. I accompanied

lems, so you can correct everyday issues

development firm that manages

my mother to collect rent from her tenants

because in real estate there are issues

a diversified portfolio across an array of sec-

and met with contractors who worked in

every day.

tors and locations in New York City, Florida

buildings she owned. This inspired me to go

and the East Coast.

into the real estate business, and in 2011, I

What deals are you proudest of?

decided to work in real estate full time and

Probably my last deal at the moment. We

founded Fimida.

purchased four Queens buildings. Within

aniel Figotin is the principal at

Figotin, a seasoned real estate veteran,

a building and to learn how to solve prob-

the first 90 days, we increased the rent roll

founded Fimida in 2011. The firm is focused on his love of deal making and the desire to

Who inspires you?

by 20%, more than doubling our equity in

create worth out of nothing from smart real

Definitely my mother, Mila, is my biggest inspi-

both the apartments and retail units that

estate investments.

ration. She came to the United States from Rus-

were significantly below market and had

sia with nothing in her pockets and a one-year-

COVID-19 clauses that we brought back to

Under Figotin’s leadership Fimida is buy-

old boy to take care of in her arms. Despite this

market rents.

ing investment properties in Queens and

hardship, she managed to build a real estate

Brooklyn’s Williamsburg and other emerging

business. She began by investing in two Wil-

neighborhoods, such as Sunset Park, South

liamsburg properties in the late 1980s.

What do you think makes your company different?

Our deep knowledge of the neighborhoods

Slope and Greenwood Heights.

What pushes you to the next level?

we are active in. We have a vision on how to

Born in Moscow but raised in New York City,

I love to find new, challenging projects. Of-

reconfigure space to maximize rents.

Figotin has had a lifetime front row seat to

ten, the ones I see the most potential in are

the city's rocketing real estate landscape. His

run down, with longtime owners who don’t

It is exciting to execute renovations and re-

family owned multifamily homes in Brooklyn,

see value in their properties the same way I

habs at a reasonable cost, often lower and

and he helped manage the properties on a

do. I somehow have the vision and capac-

faster than some of our competitors.

part-time basis since he was 18 years old.

ity to turn these neglected or dismissed

He developed a discerning eye for low-risk

buildings around. Seeing the end result is

investments that bring solid return. Whether

very gratifying.

What investment trends are you seeing in NYC? We see rent growth at an all-time high, sur-

it’s refurbishing decades-old properties or

passing pre-COVID-19. We see a limited sup-

profitable partnership. Before going into real

What is the best advice you would give to someone starting in the real estate business?

estate, Figotin ran the Rydan Group, an event

Keep learning because knowledge is

(i.e., Just Cause Eviction) that will make it

planning and talent booking agency for top

power. It is not good to just have a “sales-

more difficult to reposition a building and

names in fashion, music and nightlife.

man mentality.” It is important for building

cause higher rents.

purchasing a new building or land parcel, he is passionate about creating a trusted

126 | MR

May 2022

ply on free market rents because of rent laws passed in 2019 and new ones on the horizon

mannpublications.com

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

Retail Resurrection Many observers believed that 2020 and its pandemic-related store closures would prove the death of brick-and-mortar retail. Instead, it proved the importance of the physical store as a means of quick distribution and socialization. As the economy has reopened, shoppers are flocking back and spending more on apparel, and weak merchants have been replaced by those who couldn’t survive the shock. Retail is back, as you can see by the numbers.

42

$

7.4trillion 66 minutes

The number of retail center sales transactions

Total retail and food service sales in 2021, up

The median length of stay at an enclosed mall

from January through November 2021

19.3% from 2020. Apparel sales rose 48.4%

in Q4 2021, representing a nearly 10% drop

(Marshall Stevens, U.S. Shopping Center Sales

year-over-year (JLL Retail Outlook Q4 2021)

over the same period in 2019 (Placer.ai)

21

The number of retail bankruptcies in 2021,

6.5%

Overall shopping center vacancy rate

9/10

down from 52 in 2020 (CBInsights)

in the U.S. as of Q4 2021 (Cushman &

by retailers that also operate brick-and-mortar

Wakefield Marketbeat)

stores (National Retail Federation)

Volume & Buying Trends – November 2021)

The proportion of e-commerce websites run

Your Square Footage and Dollar Values, Delivered.

128 | MR

May 2022

mannpublications.com

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 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

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MR March 2022 COVER.indd 3

12/11/2020 2:22:00 PM

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