PROJECT REAP
CELEBRATES 25 YEARS OF DIVERSIFYING THE TALENT PIPELINE
FALL 2023 RESIDENTIAL MARKET PREDICTIONS
HOW REAL ESTATE AGENTS CAN FLOURISH IN TODAY’S AI-FLOODED MARKET
Grabbing the Bull by Its Horns in the Heart of Manhattan’s Financial District
Kramer Levin has decades of experience representing NYC’s leading owners, investors and lenders in complex real estate and land use matters, including many of the city’s signature projects that shape our skyline. We understand market terms and conditions and the regulatory environment, and we know how to position you for success. Let us help make your next project a reality, whether you’re at the top of the New York real estate market or on your way up.
www.kramerlevin.com
Kramer Levin Naftalis & Frankel LLP 1177 Avenue of the Americas, New York, NY 10036 212.715.9100
We’ve done hard things before, we do them all the time.
For most cancer patients, the usual options are surgery, chemotherapy, or radiation. So we’re working on ways to get the immune system to deploy billions of cancer-killing cells and help more patients survive.
When some people experienced mysterious COVID symptoms and had nowhere to go, our team created the first Center for Post-COVID Care.
It wasn’t that long ago we had to open up your whole chest for heart surgery. Now we’re pioneering a bypass that goes through a few tiny incisions. With this surgery, we can get you back on your feet in weeks instead of months.
So if anyone ever tells you there’s no other way—don’t listen.
be done.
We didn’t listen.
From coworking memberships to turnkey o ces, WeWork gives you more flexibility with your workspace. Discover solutions that make hybrid work for you.
Meridian’s national dominance in multifamily financing gives us a unique vantage point from which to approach markets on our clients’ behalf. By leveraging our 30+ year relationships and depth of experience, we are able to see what others can’t and produce exceptional outcomes — especially in turbulent markets. Remain informed and be agile with Meridian.
TODAY’S MARKETS MOVE MORE QUICKLY THAN EVER.
editorial Editor
Debra Hazel
Associate Editors
Alexandra Baumbusch
Laurie Melchionne
Copy Editor
Geraldine Melchionne
Director of Communications and Marketing
Penelope Herrera
Director of Newsletter
Division
Cheri Phillips
Director of Special Events
Mirusha Damiani
President & CEO
Jeff Mann
art
Art Director
Krystal Peguero
Graphic Designer
Serena Bhullar
Ran Jing
Cover Photography
Deutsch Photography
contributors
Jared Antin
Bobby Bonett
Jennifer Busch
Frank DeLucia
Janie Jefferies-Freer
Kris Kiser
Pam Knudsen
Elyssa Marcus
Joseph Mecagni
Myles Mellor
Carol A. Sigmond
Curtis Williams
business
Technology Consultant
Joshua Fried
Distribution
Mitchell’s Delivery Service
Editors
Alexandra Baumbusch
Debra Hazel
Penelope Herrera
Laurie Melchionne
Cheri Phillips
Web Developer
CS DesignWorks
East Coast Office 450 7th Ave., Suite 2306 New York, NY 10123 212-840-MANN (6266)
West Coast Ofice 110 E. 9th Street CMC, Suite A1169 Los Angeles, CA 90079 866-306-MANN (6266)
The opinions expressed by our columnists are not refective 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. mannpublications.com
In business and in life, timing is everything. Our cover subjects, Adam Michael Levy and Andrew Goldenberg, were both successfully practicing law independently after launching their careers at large firms. Just as New York began emerging from the pandemic, the two were introduced and, as they tell us, immediately saw a synergy. The resulting combination, Levy Goldenberg LLP, has been thriving in its short life and providing a model for entrepreneurship. It’s a great Q&A.
And now, with fall here, we’re seeing events coming back to life. This month, we’re highlighting the annual golf outing of the Hudson Gateway Association of Realtors and the golf
and tennis outing to benefit the Jewish Children’s Museum. It’s great to combine a bit of fitness and networking with supporting terrific organizations. You’re probably reading this right before or right after the National Realty Club’s Annual Golf Outing, so I’ll just take a moment to express my gratitude to our committee and our sta for a great day. The outing supports The National Realty Club Foundation, which gives funds to non-profit organizations in New York City that need help so that the city can be prosperous.
Enjoy the last few warm days of the year (we hope) and we’ll see you next month.
Foresight is not about predicting the future, it's about minimizing surprise.
– Karl Schroeder
Cell:
Welcome to our Diversity issue – or perhaps it should be called the Diverse issue, because we cover a lot of diferent topics.
First and foremost, however, we focus on the eforts to make real estate look more like the people the industry serves. Early on in my career, I was frequently the only woman in a room and there were even fewer people of color in real estate. That’s why this month, we highlight the 25th anniversary of Project REAP, which has brought many more professionals of color into the industry.
I was stll an editor at the Internatonal Council of Shopping Centers when it partnered with the program, and recall thinking how long overdue the initatve was. As some of its leaders and graduates tell me, we’ve come a long way, but we stll have a long way to go.
Also, take a look at some advice about having diverse perspectves in design and development, as well as predictons about the fall home-selling season and how AI can help in that process.
Happy fall, Happy Halloween, and see you next month for our year-end issue.
PHOTOS BY JANINE MOSHER
The Bronx Chapter of Hudson Gateway Association of Realtors (HGAR) hosted its 88th Golf and Tennis Outing at The Village Club of Sands Point. Vincent Buccieri of Today Realty Corp. was the 2023 Outstanding Realtor Member and James Slattery was the 2023 Outstanding Affliate Member.
The outing featured a golf tournament, tennis tournament, networking cocktail hour, silent charity auction of sports memorabilia, dinner program and much more. The spirit throughout the day was extremely upbeat and contagious.
“Over 90 of the most suc-
cessful professionals active in the real estate industry attended the Outing and took advantage of the full day of activities, networking, and saluting Vinny and Jim,” said Eliezer Rodriguez, Esq., regional director of government affairs/Bronx Chapter director for The Bronx Chapter of HGAR.
During the dinner portion, Mark Engel, chairman of the Golf and Tennis Committee, raised $11,650 for Camp Good Days & Special Times (The Camp).
"That money will beneft families who have been touched by cancer and other life challenges,” Engel said.
ROBERT MILLER, HERTZ CHERSON & ROSENTHAL P.C.; STEPHEN WOLINETZ, WOLINETZ MANAGEMENT LTD.; ELIOT CHERSON, HERTZ CHERSON & ROSENTHAL P.C. AND DAVID LEVY, EMPIRE MANAGEMENT
BEAU OWEN, ARKER COMPANIES/PROGRESSIVE MANAGEMENT; KYLE MCCARTHY, START ELEVATOR; LISOO KIM, ARKER COMPANIES/PROGRESSIVE MANAGEMENT AND MIKE HERITY, START ELEVATOR
RYAN MULLER AND ANTHONY MORMMILE, ORANGE BANK & TRUST WITH FRANK REALI AND SANDY KRUGER, SIBOR
PATRICK SOUNDY, DAN MORRIS, DAN ROWOTH AND ASHLEY THOMAS, CLIFTON BUDD & DEMARIA LLP
TOP: SEAN SLATTERY AND RYAN LIEBERMAN. BOTTOM; JASON LIEBERMAN, DEC COPIERS AND JIM SLATTERY, SLATTERY ENERGY CONSULTING GROUP
JOE COSENTINO, MORRIS PARK REALTY GROUP; VINNY BUCCIERI, TODAY REALTY CORP.; MARK ENGEL, LANGSAM PROPERTY SERVICES CORP. AND JIM SLATTERY, SLATTERY ENERGY CONSULTING GROUP
MARK ENGEL, LANGSAM PROPERTY SERVICES; BILL JEBAILY, AGGRESSIVE ENERGY; MATT ENGEL, LANGSAM; FRANK DELUCIA, HUB INTERNATIONAL AND EVAN JACOBS, F&F SUPPLY
BOZ REILLY AND MARK VALENTIN, ENERGO; ANTHONY KENNY, CAM ENERGY AND NICOLAS KENNY, BRIDGE2IPO
The Jewish Children’s Museum’s 17th Annual Golf and Tennis Celebration took place at the Cold Spring Country Club in Huntington, New York. Approximately 180 friends gathered for a great day of great golf, great food and even better company. This year’s guest of honor was Tang Fan of JPMorgan Chase Bank.
“This year, with God’s help, the outing continued to grow, with a new circle of friends introduced by our guest of
honor and committee. Everything went just right and we spent a great day with our friends and supporters. Our close network of supporters and friends look forward to this enjoyable and meaningful event. It delivered,” said JCM Director of Development Mendel Spalter.
The outing includes a full breakfast, barbecues, cigars, “Rabbis on a Knish Cart,” an extensive auction, cocktails and a dinner reception.
Ma Engel, Langsam Property Services; Kyle McCarthy, Start Elevator; Alex Hirsch, Milbrook Properties and Sean Sla ery, Lee & Associates Mitchell Bloomberg, Bobby Wasserman, Michael Rai and Nathan Sher, International Lights Major Sponsors PHOTOS BY SHALOM PHOTOGRAPHY
1. Alan Steinberg, Phil Steinberg, Ira Steinberg and Aaron Ehrlich, Park Row Equities
2. Elliot Katz, Greenthal Realty; David Lipsic, Abington Properties; Rob Morgan and Steve Tilchen, Champion Elevator
3. Moshie Horn, Hon. Jeffery Landy, Dr. Jason Ostreicher and Mitch Wechter, Tusk Equities
4. David Pelton, Greg Goldberg, Josh Forst, Ronald Katz, Merrill Lynch
5. Ronald Edelstein, Ron Properties and Joseph Popack, Dira Realty
6. Michael Cherney, JPMorgan Chase; Gershon Eichorn, Up Realty; Rabbi Benjaminson, Jewish Children’s Museum; Joseph Popack, Dira Realty and Lev Mavashev, Alpha Realty
7. Event Chairman Mark Engel, Langsam Property Services; Mendel Spalter, Jewish Children’s Museum and Tang Fan, JPMorgan Chase
8. Mark Engel, Langsam Property Services; James Slattery, Slattery Energy; Mendel Spalter, Jewish Children's Museum and Anthony Kenny, CAM Energy
Brennan Investment Group has partnered with Walker & Dunlop Investment Partners to acquire a freestanding manufacturing and distribution facility totaling 160,561 square feet in the Rancho California Business Park at 43195 Business Park Drive in Temecula, California. Furniture City will lease the building
back on a short-term basis.
The dual-purpose warehouse manufacturing design includes a heavy power system of 4,000 amps at 480 volts, 24-foot clear ceiling heights, and eight dock doors with three ground level doors. The property sits on 11.5 acres.
Designer lab-grown diamond jewelry brand Jean Dousset opened its frst-ever fagship boutique at 607 West La Cienega Blvd. in West Hollywood, California, marking what the company calls “a signifcant milestone in the evolution of Jean Dousset into a luxury heritage labgrown diamond brand.”
The discovery wall highlights Jean Dousset’s principal engagement ring designs, with each display exhibiting a style at three different angles, including the back. The design also features a tip to family history. Founder, Designer and CEO Jean Dousset is the great-great grandson of Louis Cartier.
Already the largest publicly traded owner and operator of open-air, grocery-anchored shopping centers, Kimco Realty continues to expand its portfolio, agreeing to acquire RPT Realty, also an owner of neighborhood centers, in an all-stock transaction valued at approximately $2 billion.
The transaction will add 56 openair shopping centers, including 43 wholly owned and 13 joint venture assets, comprising 13.3 million square feet of gross leasable area, to Kimco’s existing portfolio of 528 properties. In addition, Kimco will acquire RPT’s 6% stake in a 49property net lease joint venture.
BGO LAUNCHES MIRO: MOVE - IN READY OFFICES
BGO, a global real estate investment management advisor and provider of real estate services, has launched MIRO (Move-in Ready Offces) by BGO to provide small and medium-sized business tenants with fexible workspaces.
Suites range from 1,000 square
feet to 18,000 square feet and offer immediate occupancy and fexible lease terms. Each ready-to-move-in offce is tech- and hybrid-enabled, emphasizing human-centric design.
BGO has MIRO suites available in New York, Boston, Chicago, San Francisco and Washington, D.C.
FIRST PURPOSE - BUILT STUDIO CAMPUS IN MANHATTAN TO COME TO PIER 94
It’s literally Hollywood coming to the Hudson. Vornado Realty Trust, Hudson Pacifc Properties, Blackstone, the City of New York and New York City Economic Development Corporation (NYCEDC) have entered into Manhattan’s frst public-private partnership venture to build a purpose-built studio campus at Pier 94.
VICI COMPLETES $162M ACQUISITION OF FOUR
VICI Properties Inc. has completed the acquisition of the real estate assets of Century Casino & Hotel Edmonton, Century Casino St. Albert and Century Mile Racetrack and Casino, each in Edmonton, Alberta and Century Downs Racetrack and Casino in Calgary, Alberta from Century Casinos Inc. for C$221.7 million
Sunset Pier 94 Studios will house flm and production technology and amenities for all New Yorkers including new public restrooms for Hudson River Park, an 1,850-square-foot community amenity space, 25,000 square feet of waterfront open space and pier access and safety improvements to the bikeway.
(US$162.4 million).
The transaction was funded through a combination of proceeds from the partial settlement of forward equity sale agreements and from drawing down funds under the VICI’s existing revolving credit facility in Canadian dollars.
Cignature Realty has facilitated the sale of a 16-building multifamily portfolio for $47 million. The Inwood and Washington Heights Portfolio is comprised of 433 residential units and two stores and are located across three neighborhoods in Manhattan — Inwood, Washington Heights and Harlem.
OneKey MLS has launched an enhanced version of OneKeyMLS.com, the consumer property search portal offering listings in New York City, Long Island and the Hudson Valley region for 49,000 subscribers and 4,500 participating offces.
The new site features more in-depth
The properties include: 109 Sherman Ave., 113 Sherman Ave., 117 Sherman Ave., 121 Sherman Ave., 125 Sherman Ave., 129 Sherman Ave., 133 Sherman Ave., 252 Sherman Ave., 22 Post Ave., 26 Post Ave., 30 Post Ave., 34 Post Ave., 38 Post Ave., 66 Vermilyea Ave., 519 West 143rd St. and 574 West 161st St.
residential and commercial listing data in all fve boroughs of New York City, as well as on Long Island, in Westchester, Putnam, Orange, Rockland and Sullivan Counties. Every listing connects consumers directly with the listing agent(s) and brokerage. Searches are available in 21 languages.
NEURO - INCLUSIVE HOUSING DEVELOPMENT APPROVED BY RED BANK
Thrive Red Bank, the frst of its kind planned neuro-inclusive for neurodiverse adults to be developed in New Jersey, received approval from the Red Bank Zoning Board.
The approval paves the way for construction to begin on the three-story, 32-unit residential building at 273
Shrewsbury Ave. at Drs. James Parker Blvd., for a 2025 opening. Thrive Red Bank will provide one-bedroom apartments for independent living for neurodiverse adults, with shared amenity space, including a teaching kitchen, common event space, health and wellness spaces and workout spaces.
David Lulgjuraj and Michael Cuniberti of Houlihan-Parnes Properties have arranged frst mortgage fnancing in the amount of $2.25 million and a line of credit for a six-story elevator cooperative apartment building containing 49 apartments in the Inwood section of Manhattan. The property is located at the corner
of Seaman Avenue and West 218th Street. The Loan was placed for a 10-year interest only term at a sub 6% interest rate.
Houlihan-Parnes Properties provides management, sales and mortgage brokerage, back-offce operations and consulting.
Jersey City Mayor Steven M. Fulop and Cardinal Joseph W. Tobin, Archbishop of Newark, joined partners Catholic Charities of the Archdiocese of Newark, Arc Building Partners, Claremont Development, City Council members and Jersey City residents for the opening of the St. Lucy’s Complex, a
60,000-square-foot facility providing housing and supportive services individuals experiencing homelessness in the community.
The Grove Street facility features 150 beds for individuals who are homeless, and other residential facilities.
What summer doldrums? New home listings rose 1.8% sequentially in August, bucking the typical July-to-August seasonal trend of decline, reported Re/Max.
Last year, new listings declined 12.8% in August, the second month in a streak of six month-to-month declines
that ended in January. Home sales rose 7.4% over July and the median sales price of $425,000 was unchanged across the 50 metro areas surveyed. Homes sold for an average of 99% of the listing price in August, compared to 100% in both July and August 2022.
Meanwhile, year-over-year new
listings were down 13.2% while home sales dropped 13.1%. The median sales price was up 3.7%.
The number of homes for sale increased 2.7% in August, the ffth straight month of inventory buildup. Compared to August 2022, however, inventory was 13.2% lower.
Carnegie — a maker of sustainable textiles and acoustical management solutions — has acquired the Xorel Artform manufacturing division of DFB Sales Inc., a producer of high-quality interior fnish products.
This acquisition will give Carnegie end-to-end control of Xorel Artform
from design to manufacture and distribution, resulting in a streamlined and optimized supply chain that yields process effciencies, expedited lead times, and expanded product options for designers and specifers, the company said. Control over production will also simplify the design-to-manufacture process.
HOCHUL LAUNCHES $20M FUND TO DECARBONIZE DISADVANTAGED COMMUNITIES
New York Governor Kathy Hochul announced a $20 million State Energy Financing Fund for entities offering affordable fnancing for decarbonization projects that beneft to disadvantaged communities.
This fnancing vehicle provides a complementary funding opportunity
for entities also applying to the U.S. Department of Energy Loan Programs Offce Title 17 Clean Energy Financing Program’s Section 1703, to support capital deployment for projects in New York State that reduce emissions from the built environment, including buildings and other infrastructure.
MALL OF AMERICA TEAMS WITH AXIS COMMUNICATIONS ON SECURITY UPGRADES
Mall of America (MOA) and Axis Communications announced upgrades to the surveillance and security system deployed by the complex in Bloomington, Minnesota. The upgrades include intelligent Axis cameras to augment safety staff.
MOA’s security offcers are now
equipped with Axis body cameras designed to capture their surroundings for suspicious activity as they traverse the mall alongside K-9 units. They are further assisted by surveillance cameras including the AXIS Q63 PTZ Camera Series, AXIS M50 PTZ Camera Series, and AXIS P37 and P47 Panoramic Camera Series.
JLL has been appointed by motor and propulsion giant Rolls-Royce to run global facilities management (FM) operations across the company's 15 million-squre-foot real estate portfolio across 44 sites in China, Germany, India, Singapore, the United Kingdom and the United States starting in February 2024.
The U.S. Green Building Council (USGBC) announced the recipients of its 2023 USGBC Leadership Awards. The Leadership Award for Organizational Excellence recipients are: JBG Smith, Ohio Facilities Construction Commission and Shaw Industries Group. Shaw Industries Group is a model for manufacturers worldwide,
USGBC said. The organization has implemented cross-cutting strategies to achieve resource optimization and waste minimization. It has increased clean energy use, sustainable sourcing, supplier diversity and other initiatives to reduce its footprint and generate positive returns for the environment and its communities.
“Effectively planning, managing and operating our diverse real estate locations to create safe, sustainable and inspiring environments for our people has never been more important for us as we navigate the changing world of work,” said Andrew McManus, global head of property services, Rolls-Royce.
The Kate Hurst USGBC Leadership Award will be given to Bahar Armaghani, University of Florida, an educator who has introduced thousands of students and professionals worldwide to green building. In addition, The Malcolm Lewis Impact Award for volunteer teams will be given to Change Inc.
Victory Property Management, a Wilmington, North Carolina-based property management frm, has rebranded to MoveZen Property Management. This name change refects the company's ongoing commitment to a customer-frst approach and the introduction of new, dynamic service offerings, it said.
The rebranding to MoveZen aligns with a new range of services including proprietary market research and reports, built-to-rent development and a minor repair service, tailored to expedite essential property maintenance.
The change is effective immediately.
Ambiq, a creator of ultra-low-power semiconductor solutions, has introduced the Neural Network Speech Enhancer (NNSE), its latest addition to its NeuralSpot’s Model Zoo. The AI model removes background noise from speech on the device in real time, allowing clean speech capture in noisy environments.
NNSE includes scripts and tools to help developers add speech denoising capabilities to their applications. It also consists of a simple graphical user interface, allowing users to easily record and save the enhanced speech along with the original noisy audio on their PC for demonstration purposes.
Analytics and data company CoreLogic and computer vision provider Restb.ai are teaming up with First Multiple Listing Service (FMLS) to provide generative AI tools to FMLS’s subscribers, delivered through the CoreLogic suite of MLS solutions.
Restb.ai AI services will be fully inte-
DEALPATH DELIVERS
grated into FMLS’s CoreLogic Matrix platform and CoreLogic OneHome client collaboration portal. Generative AI will automatically extract insights from property photos to streamline the listing input process. Using this technology, once integrated, homebuyers can upload a photo in OneHome and search for listings.
AI - POWERED SOLUTIONS FOR REAL ESTATE INVESTORS
Dealpath has added AI-powered solutions for real estate investors within its platform. These include:
AI-Powered Search: The global search capability automatically associates terms and information.
AI-Powered Offering Memorandum
Abstraction: This solution extracts
key data felds from deal fyers and offering memorandums to jump start underwriting and comp analysis
AI-Powered Investment Summary and Memo Generation: This solution leverages generative AI to interpret fyers and Offering Memorandums to create one-page summaries.
Mount Sinai New York–Concierge Care is a membershipbased medical practice that has brought the worldrenowned care of the Mount Sinai Health System in New York City, here to you in The Palm Beaches.
Our new concierge program o ers an outstanding patient experience and access around the clock. Our members receive comprehensive primary care, cardiac and dermatology assessments, and nutritional counseling, as well as amenities you would not find in a typical medical practice, such as home visits, urgent care, coordination of specialist care, travel medicine, and much more. Members will also have access to Mount Sinai’s Hudson Yards concierge practice in New York.
Most importantly, you gain access to the full resources of the Mount Sinai Health System, for all of your health care needs. This is the health care experience you have been looking for.
Learn more at mountsinaiconciergecare.org
To inquire about membership, please call 561-328-7112
625 N. Flagler Drive, Suite 200 West Palm Beach, FL 33401
Delta Media Group, a technology provider for real estate brokerages, has launched what it called “one of the industry’s most advanced CRMbased, all-in-one digital marketing platforms.” The “made for mobile”
DeltaNET 7 leverages artifcial intelligence (AI) and automation with brokerage and user-level customization.
LONE
Large real estate brokerages can create and design a custom-branded platform to meet individual needs based on specifc roles, from agents to admins to other support staff. The DeltaNET 7 also allows ultra-personalization that features down-to-thebutton design and navigation that brokerages can fully control.
Lone Wolf Technologies has expanded its relationship with Realtor.com to include exclusive buyer intel reports from Listing Toolkit, the newest product offering from Realtor.com, available in Lone Wolf’s comparative market analysis solution Cloud CMA.
Through Listing Toolkit's integration
Nimbio, a cellular solution allowing electronic gates and buzzer doors to be opened with a cell phone, announced a partnership with Alfred International Inc., a manufacturer of residential, commercial and industrial grade door hardware.
Through the companies’ efforts, Al-
with Cloud CMA, mutual users can add several premium report pages to their CMAs, including Realtor.com reports with insights into matching buyers and buyer demand.
The integration with Listing Toolkit adds both Cloud CMA and Realtor. com to Lone Wolf Marketplace,
fred’s locks can be set up, managed and opened from within the Nimbio app. When combined with Nimbio cellular controllers installed at common access points, the solution provides enhanced digital key sharing capabilities, and remote control and monitoring of all access points through a single interface.
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.
Counsel to Google in connection with its US$2.4 billion acquisition of Chelsea Market in New York City.
Counsel to BlackRock in its 850,000square-foot lease for its planned headquarters relocation to 50 Hudson Yards.
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.
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.
Counsel to J.P. Morgan, as lead lender, in its US$900 million construction loan syndication to Extell Development for the development of Central Park Tower.
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.
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.
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.
“An extremely talented real estate group with an impressively deep bench: the team is ideal for handling the most complex matters.”
— Chambers USA
BBX Logistics Properties, a logistics development frm specializing in identifying high barrier to entry infll locations in Florida and other Eastern U.S. markets and a wholly owned subsidiary of BBX Capital Real Estate and BBX Capital Inc., has formed a joint venture with PCCP LLC, a real estate fnance and
investment management frm, and acquired approximately 40 acres of land north of Atlantic Avenue on U.S. 441 in Delray Beach, Florida.
The joint venture intends to develop the site, which is entitled with rights to build up to 672,533 square feet of logistics space.
Multifamily investment management and development frm Cityview and Stockbridge, a private equity real estate investment management frm, have begun construction on Apollo, a 265-unit multifamily development at 12888 Crenshaw Blvd. in Los Angeles’ South Bay. It slated for a 2025 completion.
Apollo features studio, one-bedroom and two-bedroom foorplans with stainless steel appliances, quartz countertops, luxury vinyl plank fooring, smart thermostats, keyless entry and smart home systems. Turnkey fber optic internet and Wi-Fi will create strong connectivity throughout the community.
T&T Construction Management Group Inc., a woman-owned concrete specialty contractor, announced the launch of its 10-weekinternship program, designed to give back to future generations and provide insight into what it means to be part of a concrete specialty contractor business.
Four interns joined the company during the summer months as part of this inaugural program. Two work in the Southeast Region, and two in the Northeast Region. Among the interns are students from Williamson College of the Trades, Pennsylvania College of Technology, Temple University and Everglades University.
Understanding tax planning can be a taxing experience. It requires a dynamic knowledge of everchanging codes and regulations, plus a deep understanding of your individual needs and goals.
That’s where Janover comes in. We get to know both you AND your business. We then leverage our knowledge of the system to tailor a detailed tax plan that is unique to your specific needs.
At Janover, our greatest value is the ability to help you look at the whole picture - numbers, family, business. You’ve worked hard to have it all... wouldn’t you like to keep it?
Marketplace Homes has launched Marketplace One, a full-cycle real estate service offering that helps single-family rental (SFR) investors, regardless of portfolio size and market. It provides services for acquisitions/dispositions, real estate sourcing, underwriting, brokerage, title, fnancing, renovations, leasing,
Newmark Group Inc. has launched NewliticQuest, a solution to bring together Newmark’s expertise in real estate, technology and consulting onto a single platform. NewliticQuest, the company said, offers accelerated insights to develop strategic and tactical recommendations, inform business case develop -
property management, HOA and utility management, bookkeeping, legal and taxes.
Marketplace Homes' Disposition Team does the research to create a detailed plan, offering investors the best possible fnancial outcome for the asset.
ment and achieve optimal results for property portfolios.
Together with Newlitic, Newmark’s proprietary data visualization platform, NewliticQuest is another addition to Newmark’s growing suite of technology solutions serving corporate real estate leaders.
TruAmerica Multifamily has expanded its Southern California portfolio with the $102.9 million purchase of Nineteen01, a 264-unit apartment asset at 1901 East 1st St. in Santa Ana, California. The Class A property, which was acquired in partnership with PCCP LLC, includes a three- and fve-story wrap building
that was developed in 2016.
Nineteen01 features one- to three-bedroom apartments, with open-concept foor plans and an average unit size of 1,033 square feet.
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.
Bonnie Heatzig is the Director of Luxury Sales for Douglas Elliman and rated nationally as the top 1% of real estate agents nationwide with over 1 Billion Dollars in sales She ranks among the most elite agents in South Florida thanks to her unparalleled knowledge of the ultra-luxury real estate market, especially in Boca Raton.
What truly sets Bonnie apart is the fact that she is a licensed attorney, making her able to navigate even the most complex contracts with ease and finesse. Bonnie approaches every deal with a deep sense of empathy and a genuine desire to help her clients. Her ability to build strong and lasting relationships is a testament to her exceptional interpersonal skills and her unwavering commitment to providing the most personalized, ultra-exclusive services
For more information, please cont act penny@nationalrealtyclub.org
Nestled in the bustling heart of downtown Manhattan’s Financial District — just steps from the Charging Bull — Levy Goldenberg LLP focuses its practice predominantly on commercial and real estate litigation. Built on what it calls “a commitment to extraordinary legal representation,” the new law firm is already carving a niche as a trusted partner for businesses and individuals endeavoring to navigate complex legal landscapes in and around the Big Apple.
Levy Goldenberg is quickly earning a reputation for its unwavering dedication to its clients, and is raising eyebrows amongst their peers. The firm’s namesake partners — Adam Michael Levy and Andrew Goldenberg — blend sharp legal acumen with an innovative approach to consistently deliver favorable outcomes for their clients. Combined with a strong sense of community engagement and a vision to contribute positively to the ever-evolving legal fabric of New York, Levy Goldenberg is here to stay.
What does it take for a law firm to not only thrive but shine in the heart of New York City, where the legal landscape is as dynamic as the city itself? In this exclusive profile, Mann Report sat down with the partners of Levy Goldenberg LLP to find out.
Tell us about the journey that led you to cofound Levy Goldenberg LLP.
Adam Michael Levy (AML): My family has been practicing law in New York City since the 1920s, beginning with my great-grandfather Murray A. Meyerson who, in addition to
being a litigator, was also heavily involved in various New York civic organizations and was a former Master of the Nathan Hale Masonic Lodge; continuing with my Uncle J. Stanley Shaw, a one-time candidate for Mayor of New York City who subsequently headed various iterations of the Shaw Licitra law firm; to my uncle Stanley M. Moskowitz, cousin Judd Friedman, etc. I began my career knowing I had some big shoes to fill, and I humbly intended to carry on this tradition.
Coming out of New York Law School, I began my career as a litigator working at Shaw Licitra Gulotta Esernio and Schwartz, which ultimately (years later) led to an association with Goldberg Weprin Finkel Goldstein LLP’s litigation department. After 10 years of honing my craft working for others, I endeavored to follow in my forebears’ footsteps and hung my own shingle with the establishment of Adam Michael Levy P.C. During the following nine years I built that firm from the ground up, having launched without a single client. That said, I always knew that I wanted to partner with others who shared the same vision, work ethic and dream of building a legacy in New York. The trick was finding the right person.
In 2022, as we emerged from the pandemic, I was introduced to Andrew by a mutual colleague. We connected immediately. I think we saw a lot of ourselves in each other — we’re both from Long Island and share similar pedigrees, ambitions, character and values. Once the chemistry was clear, we launched forward to establish Levy Goldenberg LLP with sheer will, grit, an entrepreneurial spirit and, of
course, with the well-heeded advice obtained from those we trust. But if you ask me where our motivation really comes from, it was an answer to a simple question: Why not us?
Andrew Goldenberg (AG): I am the proud child of first-generation immigrants who came here in the 1970s from Romania. Born in New York City, I have always considered this place my home. Having been raised by parents who came here from a former Sovietbloc country, the importance of family, education and hard work was ingrained into my mind at a very early age.
After graduating from Albany Law School in 2007, I began my career at Bryan Cave (now Bryan Cave Leighton Paisner) as an associate and developed an appreciation for big firm culture. However, it wasn’t until I began working for the boutique law firm, Stamell and Schager LLP, that I cut my teeth and gained hands-on, complex litigation experience alongside my mentors, Jared Stamell and Richard Schager. However, like Adam, I understood that my vision and professional goals would never be realized under the umbrella of someone else. So, in February 2020, a month before the world shut down, I went out on my own, founding Goldenberg Law LLC. While being a solo practitioner was both a highly challenging and rewarding experience, I knew I needed more support to grow and see out my vision.
Meeting Adam through a mutual colleague was fortuitous. Not only do we have similar skill sets and tremendous drives to succeed,
but we also complement each other on many levels. If we had to define our dynamic, Adam is more of the big picture guy, while I excel at execution. That said, we collaborate daily on strategy and everything else to e ectively represent our clients and push the firm's continual growth. At the end of the day, though, we are both Long Island-bred family men, who share a passion for hard work and creative problem-solving. During o hours, we both enjoy the solace of skiing and snowboarding in Vermont.
Since we founded Levy Goldenberg in January 2023, we have already grown leaps and bounds by nurturing relationships and going the extra mile for every client. While there is always a learning curve involved in starting something new, the energy and limitless potential inspire and give us the drive to succeed each and every new day.
Building a new firm requires a strong
vision. What was the vision behind Levy Goldenberg LLP?
AML/AG: We wanted to provide clients with a practical, honest and transparent approach to navigating commercial and real estate disputes in New York City. While we know we’re not blazing any trails, we also see that firms can practice more e ciently and e ectively by incorporating modern technology with the more traditional tenets of practice — which can never be replaced. Moreover, the complex challenges that individuals and businesses face when entangled in commercial and real estate disputes have motivated us to demystify the legal process and make it more accessible for our clients.
We also wanted to provide more coste ective services to ensure that excellent legal representation remains within reach and is not reserved exclusively for those with the most means. We are dedicating ourselves to being forthright and direct with our clients
while translating complex legal concepts into plain English. This guarantees that our clients are not only well-informed, but also actively involved in their legal proceedings. This vision has laid the foundation for our firm’s identity.
What are some of the key legal challenges and opportunities in New York City, especially in commercial real estate litigation?
AML/AG: There are many challenges and opportunities that have flowed from the pandemic. One of the biggest challenges gaining a lot of press in the past year relates to Manhattan o ce buildings and their evolving role in a post-pandemic world.
The rise of remote work has prompted businesses to reassess their o ce space needs, which has presented a challenge for our commercial landlord clients who have faced reduced demand for traditional o ces. The pandemic has also led to an increase in commercial lease disputes, as tenants and
landlords grapple with issues related to rent abatements, force majeure clauses and other unforeseen circumstances arising from business disruptions. In our experience, these disputes often result in lease renegotiations or, when negotiations fail, abandonments and bankruptcy filings.
Although these and other challenges exist, as always there are unique opportunities that arise, including the adaptive reuse of commercial properties for residential or mixed-use developments that could help revitalize certain areas of the city, including the Financial District which we call home.
There is no denying that the post-pandemic environment has been tough on the city and our clients. However, adapting to changing tenant demands is essential for our client’s continued success and the success of Manhattan as a whole.
What are your long-term goals and aspirations for the firm, and how do you see it contributing to the legal community and New York City in the years to come?
AML/AG: First and foremost, we are focused on continuing to expand our footprint in the New York market. Since we launched in January 2023, our client base has grown significantly from those clients that migrated with us from our respective individual practices. Also, any New York City firm will tell you how competitive the market is for acquiring talent to augment a growing firm. Nevertheless, we’ve continued to add attorneys to our team, and our intentions are to continue expanding with an eye toward providing a one-stop, full-service shop for all of our clients’ real estate and commercial needs.
To achieve this, we must maintain an unwavering dedication to excellence and tenacity in achieving our clients’ goals. At the end of the day, we are fully cognizant of
the fact that our clients’ successes go hand in hand with our own.
We are also committed to nurturing the next generation of legal talent. We view our firm as a platform for fostering young lawyers’ growth and development, mentoring them to become leaders in their own right. By providing opportunities for learning and professional advancement, we hope to contribute to a thriving legal community in NYC and beyond, while simultaneously improving the firm’s own prowess.
Ultimately, we see our firm contributing to the legal community and New York City by not only providing exceptional legal services but also by being a force for progress and innovation. Our overarching goals center on making a meaningful and enduring impact, not just within the confines of our practice but on the broader legal ecosystem.
Lastly, why did you choose Fraunces Tavern for the cover shot?
AML/AG: We love Fraunces Tavern and everything it stands for. The history, the atmosphere, its warmth, the food, etc. Last year we hosted our holiday/launch party in the Piano Room (where we are sitting) and we intend to keep doing so for years to come. Frankly, we’re in awe of what Fraunces has meant to New York and our entire country, and we are honored to contribute to even a small part of its continued success and tradition.
For those who do not know, Fraunces is located one block from our o ces (54 Pearl St.) and is one of the oldest taverns in the United States. Moreover, Eddie Travers, his family, and their partners who currently own and operate the Tavern, are clients of ours and we’ve established what we can only hope will be an enduring relationship for years to come.
PHOTOS BY DEUTSCH PHOTOGRAPHY
A mature industry dominated in many respects by family-owned businesses is wonderful for stability but is a challenge to break into, especially for a person of color. Such has been the case in commercial real estate for generations.
Then came Project REAP, which for the past 25 years has been working to attract and train professionals of color into the industry. Now celebrating its silver anniversary, the organization released a report that shows formidable progress.
Many of its 1,700 graduates began lucrative careers in the industry — from owning brokerage firms to heading site selection and store development for Fortune 500 companies, the report said.
According to the research, 71% of alumni who completed the survey were able to transition into, maintain or enhance their positions in CRE, with 56% reporting a
significant shift in the trajectory of their career soon after graduating.
As a result, the survey showed a 20% increase in senior-level employment positions, as reported by alumni, and a 14% increase in executive-level employment positions. In addition, REAP graduates saw statistically significant increases in salary. Those making between $100,000 and $200,000 reported an overall 33% increase in salary, and those making more than $200,000 saw a 13% increase.
“Our goal is to build the tent to make sure that we’re constantly putting in front of the industry,” said Mannika Bowman, REAP’s current executive director. And we’ve created a space for those people to be seen.”
REAP, then the Real Estate Apprentice Program and now the Real Estate Associate Program, was developed by
Mike Bush, then vice president of real estate for Giant Food, to train minority prospects to work in retail real estate. It became a 501(c)3 in 1998 and partnered with the then International Council of Shopping Centers and, eventually, other trade organizations to provide training and classroom space.
That helped recruit other associations to It even helped to provide training, said Osayamen Bartholomew, founder of The Gift Agency and formerly chief program o cer at Project REAP.
With a master’s degree in media management and communications, Bartholomew had gone into the music industry, representing makeup artists, and working in event production and marketing. She began pursuing opportunities in the nonprofit trade association sector and was a coordinator for the New York City Bar Association.
A family background in entrepreneurship and retail, and experience working with Jay-Z during his involvement with the development of Barclays Center kindled Bartholomew's interest in real estate.
“I was so intrigued by all of that, but I didn’t know how to get my foot in the door,” she said. “I would look up the development companies and I saw no one who looked like me. I got discouraged.”
In 2013, a recruiter called, and while she wasn’t
interested in that particular position, she did express interest in working in real estate. “But I didn’t want to sell. I wanted to work for a real estate trade association on diversity and inclusion,” she continued. “We stayed in touch, and he told me about ICSC and a program they supported called Project REAP. I said, ‘Sign me up!’”
Her career progressed from project manager to chief program o cer, and eventually to interim executive director.
“We had the support of ICSC, BOMA, ULI and NAIOP. We were able to put a planning team together from those trade associations and school alumni,” she said.
The program needed to scale. A Brand Ambassador program was created to identify REAP alumni who could serve to represent the organization in new markets. And then came COVID-19. The organization pivoted to a six-week virtual program. But as the pandemic dragged on, it became clear that more would be needed.
“We knew we needed to make the whole thing virtual,” Bartholomew added. “We reached out to a board member, Gwinnett Cody of ULI, to turn the whole REAP program into a 10-week virtual program, but we didn’t have the platform. Within 24 hours, we were told, ‘Let’s do it.’”
Ironically, going virtual helped Project REAP
grow even faster, Bowman observed.
“It expanded our reach,” she said. “Before, we would be in one or two communities a year. COVID-19 forced us into the 21st century.”
And now, it’s reaping (pun intended) the benefits of its previous work as REAP graduates are spreading the word about the program, and in the case of London Kemp Boykin, director of worldwide real estate development at Amazon, serving on its board.
Boykin, a lawyer, joined REAP in 2012 in its second Los Angeles class.
“I was already working in commercial real estate at In-n-Out Burger, but I knew long-term that I wouldn’t continue in restaurant real estate," she said.
At that point, her experience was solely on the transaction side. REAP o ered a survey of all aspects of commercial real estate, as well as new contacts. Boykin was quickly recruited by Walmart, a presenter in the program, to an operations role. Eventually, she was a speaker, too, and went on to join REAP’s national board. She later moved to NBC, overseeing real estate for its studios.
Now, having moved on to Amazon, where she oversees all real estate except for stores and o ces (think fulfillment and hangars for its airplane fleet), Boykin is working to develop new scholarship programs for REAP.
“REAP was the launchpad for my career,” she said. “I got exposure to the largest portfolio you could possibly imagine in my first rollouts. I was managing 80 million square feet. It made me a better legal drafter.”
Another graduate, Otto Beatty III, president of The Otto Beatty Companies, also was an entrepreneur and attorney, working in the transportation business when he found Project REAP.
“I was interacting with a lot of building owners — at that time I was looking to transition from my current business and looking to be educated in di erent disciplines,” he said. “The program was brought to Columbus in 2014 and was fortunate to be selected. I got a lot of exposure to many great real estate
companies and really enjoyed the class and the networking in class.”
Using those relationships he went into the co-working sector, and by 2021 was involved in development, which brought him back to REAP. “I was looking for a refresher, so I approached REAP during the pandemic and asked about retaking the class. I went through the academy a second time,” he said.
The second go-round was di erent — Beatty observed that he had more experience and clarity about his goals, and the educational component through the partnership with ULI was a bit more academic. But the virtual format also helped in another way.
“It allowed you to interface with multiple individuals in other cities,” he said. “We would then go to a ULI Fall or Spring meeting or the ICSC, and regather.”
And the networking has continued. Beatty has reached out for assistance from REAP graduates in Atlanta via an exclusive social media portal and o ered his expertise as a market leader and expert when asked. Now, he said, his responsibility is to encourage other interested professionals to enroll in Project REAP.
“One of the things I’m most proud of is in that last three to four years since I’ve been involved, we’ve gotten more people exposed, and that turned into employment opportunity,” he said. “I’m seeing more people becoming aware. That’s the first thing. In many communities of color, there’s been a lack of awareness of the opportunities that exist in real estate.”
Problems still remain. Cracking the C-suite and venture capital firms is still a challenge.
“Real estate is so dominated by closely held, family-owned companies,” said Bartholomew, who left REAP, joined the Real Estate Executive Council and now runs her own talent and service management company. “I’m more optimistic now that we will see more diverse organizations rise up. The knowledge and experience gap is starting to close. We need to teach young people about commercial real estate and its path to generational wealth.”
Though there has been some incremental progress, Boykin said, “I still at my level am statistically insignificant in my industry.” Education is still critical, Beatty said.
“People are generally aware there are brokers and developers,” he said. “They’re not aware of asset managers, property managers, appraisal and surveying. And there’s such a strong interest in communities of color, especially in a ordable housing. That represented an opportunity.”
Society remains segregated in di erent ways, Bowman said, based on schools, where lifelong networks are built. That’s why REAP’s continuing expansion around the country is so important. It has inspired another networking platform, Avant-Garde Network (see sidebar)
“Certain circles rarely connect, and that’s the problem. Within commercial real estate, 25 years later, there are barriers. People have to push themselves to go beyond the network,” she said. “Hope springs eternal. I’m a clergywoman at the end of the day. What makes me hopeful is when I engage with our alumni, they’re dynamic, engaging individuals. We’re planting seeds for the industry. We know diverse environments create better outcomes for our organizations.”
At least one Project REAP alumna has taken networking for professionals of color to new levels. Adeola Adejobi, founder of Avant-Garde Network, is now more than 25,000 strong. The network hosts an annual Diversity in Commercial Real Estate conference focused on commercial real estate, real estate investing, technology, opportunity zones and more, intending to diversify the industry from the executive leadership and entrepreneurial perspective.
Avant-Garde Network works in multiple industries, with real estate still a challenge, she said. “Obviously last year there was a big increase in interest from commercial real estate organizations. From a broader perspective — people trying to break into space and making an impact and change,” she said.
Despite growing public commitments to DEI in commercial real estate, it still isn’t easy. Real estate is more insular than other industries because it can be, she observed.
“The commercial real estate is an industry where people don’t necessarily look outside their network to build their teams,” she said. “But the market conditions are di erent.”
The goal has been to build a cross-section of professionals from various real estate sectors to build even more diverse networks. This year’s conference drew attendees from 31 states, up from 29 last year. That’s what the industry is about — relationships. The more you have, the more successful you’ll be.”
Diversity also extends to gender.
“At least 50% of our speakers are women — around 50% of our attendees are women,” Adejobi reported.
The conference itself has evolved from an initial focus on development and has grown as Avant-Garden partners with businesses in the industry that are looking to broaden their diversity.
“DEI is not charity, it’s good for business,” Adejobi said. “With that in mind, there is still a lot of work to get done in this area, even as we’re finally starting to get more diverse folks into the industry.”
In the retail leasing sector, a huge about-face has taken place in recent years. After decades of pursuing national or regional credit-worthy chain retailers, many managers are now looking to bring uniqueness and local flavor to their properties, be they shopping centers or main streets, by leasing to momand-pop, entrepreneurial tenants.
The result can bring diversity to the property but can pose a challenge. Mom and pops may know how to make and sell their wares, but do they know how to market
themselves?
To help, marketing agency Zenergy Communications and Downtown Strategies, a division of Retail Strategies that is a specialist in recruiting businesses and redeveloping communities, have teamed to create a program that teaches entrepreneurs in very small markets the basics of marketing today, including social media and more.
“During the pandemic, we saw large companies like Walmart and Starbucks focus on their apps. They
went all in,” said Jennifer Gregory, president of Downtown Strategies. “We could bring these trends to local mom-and-pops who have not focused on social media.”
The pandemic exposed just how vulnerable small retail could be, she continued, especially as consumer expectations increased to include online ordering, curbside pickup and more. But it also offered opportunity, as shoppers stayed close to home.
“People remained in their
secondary markets, and they remain more important now,” said Linda Farha, founder and president of Zenergy. “How do we help these merchants and vendors?”
Gregory’s business initially worked with the municipalities and landlords, helping to bring in loans and grants to support downtown retail and find entrepreneurs. But she saw that these business owners also needed help with the basics of building a database of customers, websites and more. That’s when she turned to Toronto-based Zenergy,
LINDA FARHAwhich has worked on media and marketing campaigns in multiple industries, including aerospace, life sciences and telecommunications as well as retail and real estate.
“This is not a linear world we live in,” Farha observed. “We show them how to be online, how to build a customer database, segment that database,
and create content that hits these di erent segments. It drills down to what are their preferred social media, what time of day to post.”
The program features a webinar entitled "Retail Through the Lens of Omni-Channel," supported by sessions guiding small business owners through the process of creating
marketing campaigns using relevant channels, platforms, and devices to promote products to customers and prospects. The module provides an integrated understanding of omnichannel and digital marketing possibilities along with one-on-one sessions for personalized support. For example, a Powerpoint drills down into the definition and importance of customer segmentation, by geography, demographics, psychographics and more. Case studies illustrate the points. And the number of new businesses continues to grow.
“During the pandemic, we started to see people questioning their livelihoods, and this is creating a new generation of entrepreneurs,” Farha said.
Farha and Gregory remain available to o er advice going forward. One entrepreneur had to shut down her storefront because she couldn’t risk exposing her husband, then battling cancer, to COVID-19. Instead, the two suggested that she sell one new item per day, available for pickup at the window. Her husband remained safe and she reopened her business.
“The training is so important, but just having an advocate who is not part of your everyday operations helps, too,” Gregory said.
Its focus on tertiary markets, often with 15,000 people or less, such as Youngstown, Ohio makes even more of an impact. Even as shoppers are returning to the o ce, at least part-time, they’re still staying closer to home. And that bodes well for the future.
“There’s a real opportunity for these businesses to grab,” Gregory said. “But you have to o er a good experience, which could include uniquely wrapping gifts.”
“Being under the FirstService umbrella is more than building management. We’ve refnanced our mortgage through their fnancial team, completed major cap ex projects with the construction management team, and are now working on Local Law 97 compliance and an EV charging installation. The board has never had access to this level of expertise and I feel like we’re just getting started.”
- Stephen V., NYC Board Member
Although the future is uncertain, one thing we know for sure about 2024 is that compliance with New York City’s Local Law 97 (LL97) will make it more expensive to operate most commercial and residential buildings over 25,000 square feet.
The law, aimed at sharply boosting energy e ciency and reducing carbon emissions, was passed in April 2019 as part of the mayor’s Green New Deal. LL97 requires most buildings over 25,000 square feet to meet energy and GHG (greenhouse gas) emissions targets by 2024, with even stricter limits coming into force in 2030. Given the stringent financial penalties against aggressive reductions targets and the annual reports that need to be filed from May 2025 onward, compliance is going to be challenging.
In many cases, meeting requirements will likely entail expensive system upgrades or physical changes to buildings’ infrastructure and/or equipment. But there may be a very viable way for owners and property managers to significantly o set the new cost burden: using the wealth of available data to eliminate unnecessary energy consumption.
The process may seem daunting, but in most cases, it’s straightforward, because it relies on analysis of data from tools that are already in
place, such as sensors, loggers, smart meters, utility bills and building automation systems.
Ripping and replacing before analyzing this data is like a doctor cutting into a patient before conducting a medical assessment. Here’s what I suggest owners do before taking drastic — and costly — action to comply with LL97:
To understand where you’re going, you need to determine where you are today. You will need this information in a simple-to-use format so you can clearly understand how you are performing against buildings of similar size and function. Energy management systems equip you with cloud-based data in user-friendly formats that create the transparency you need to succeed. You must aggregate and drill into data so that it can be audited. For example, you may want to separate out by tenant, area or system. Doing so will also enable you to determine where best to spend money to drive towards these targets.
To avoid costly implementations, any energy management system must integrate with whatever data is available in the building already (building automation systems, meters, loggers, etc.). The additional benefit of doing this is that your data will then be available in
a single, centralized platform and much easier to manage.
To start your baseline, you must determine your building’s current GHG emissions and from there, determine the requirements you need to meet. Once you understand the numbers, you can create a plan that drives toward the compliance requirement over time.
Understand Tra c and Consumption
It’s important to know how levels of pedestrian tra c (residents, o ce tenants, sta , shoppers or visitors, depending on the building type) within a space drive the requirements of energy consumption (and therefore GHG emissions) and adjust accordingly. Is the energy consumption of your building aligned with the amount of pedestrian tra c that comes through it? Take a close look at available data, including interval data or even energy bills — what you find might surprise you.
For example, one of our clients uncovered a discrepancy between pedestrian tra c and energy consumption, which in turn led to the discovery that the company had been running escalators connecting four floors after business hours — for five years! Or consider the case of a multifamily building that was incurring surprisingly high bills for water use even though occupancy levels and pedestrian
tra c were normal. Upon investigation, management found that a resident was illegally operating a car wash out of the back of the building. Perhaps an extreme example, but it goes to demonstrate that you can’t manage what you can’t measure. Visibility is critical.
Much has been written about companies adjusting their o ce footprints in response to hybrid work, but much less is written about adjusting the operation of systems, which can also yield savings. In this post-COVID-19 world of remote/hybrid working, buildings are not occupied as they once were. However, we may not have adjusted the way the building is operated to sync with these behavior changes. For example, many o ce buildings attract fewer workers on Fridays, which means that lighting and cooling/heating can be reduced on those days.
The sensors or WiFi-based systems that many companies use to track the number of users in an o ce provide the information needed to make adjustments. My colleagues in the U.K. used our own sensor-based data to compare the levels of pedestrian tra c in our London o ce with our energy use. When we discovered that our energy use was high on the weekends when tra c was low, we adjusted our heating and lighting systems accordingly.
Owners and managers of o ce buildings should follow our lead. They can also join forces with their tenants on such initiatives. Installing sensors and zoning energy in a building (on certain
days) o ers opportunity for fast reductions in energy usage.
The biggest challenge we see from clients is reliability of data. Data can be missing, contain spikes or other such anomalies, and unless anomalous data can be caught, reliability will always be an issue. A solid energy management system should provide you with alarms or a dataverification solution to track and inform you of “bad data” as it happens.
If issues in data are down to usage rather than errors, then finding out that you had a problem days after it happened (when it’s too late to do anything about it) is also suboptimal. Look for a system that provides automatic methods to catch not only bad or missing data, but “unusual events” in data that may indicate unexpected building performance or unauthorized adjustments in energy usage, thermostats or other building systems.
Measurement of real-time consumption shows you which systems are already providing high levels of energy e ciency. In other words, you know which parts of your utility infrastructure do not require retrofits. Most owners, I imagine, would be happy with that status quo. Any alternatives to “rip and replace” will undoubtedly be most welcome.
How do you start? Assess options for an energy management system and, where relevant, engage with a pedestrian-tracking solution. If possible, combine the data and obtain a baseline.
JANIE JEFFERIES-FREER
You can then set targets and understand more clearly if you are on track to meet your compliance requirements and avoid penalties.
Find a system that incorporates artificial intelligence (AI) into analytics, so that you can normalize data, manage GHG conversions and access auditable data, which will be a requirement.
And finally, don’t go it alone. There are plenty of resources and consultancy companies o ering to guide you through the process, as well as valuable resources online, including government websites, to help you get started.
Energy savings from tracking data and implementing simple fixes can be significant — and in fact as much as 30% of all energy used in buildings is wasted. What's more, that percentage can convert to millions of dollars and thousands of tons of CO2 emissions, exactly the kind of outcomes that align with the goals of LL97.
So, make sure to take the important step of data analysis before you embark on a costly rip-and-replace program. You may just find that compliance and financial savings are not mutually exclusive.
AI is changing everything — a statement that comes as little surprise to anyone these days, and least of all to the many real estate agents whose markets are being saturated by artificial intelligence (AI)empowered buyers. With the advent of proptech services entering the real estate industry, buyers are becoming more thoroughly informed every day, long before they even speak to an agent.
Here is just one example among many: Proportunity helps would-be property owners get a fair and up-to-date valuation of residential real estate. Its model gathers property data, real estate market data, crime rates and similar inputs to provide automated property evaluation.
To fear that redundancy lies on the horizon is only natural in light of such dramatic
change. Fortunately, those fears are misplaced. The world yet has much use for real estate agents, and the advent of realty-focused AI presents more opportunities than threats for those who are willing to change with the times. Below are detailed three ways to do exactly that:
AI is making buyers smarter. That means that agents need to become smarter, too. Agents should be continually furthering their education and research to ensure that their expertise remains relevant and, ultimately, invaluable to buyers. This translates to consistently being the first authority on the local market and keeping a careful pulse on its fluctuations and trends. An understanding of the information that will be available to buyers before enlisting an agent’s services is also vital here, as it o ers
insight into the areas in which agents can contribute the most value.
Agents must not, furthermore, fall behind the very same technological advancements that buyers are using to their advantage. Just as AI empowers the buyer, it can be a game-changing instrument for agents who are apt enough to utilize it. Agents should therefore follow suit and maintain a watchful eye over developing technologies, being quick to spot new AI-assisted tools that could help maintain their usefulness to buyers and keep them one step ahead of the competition.
It is useful to think of the agent and buyer as members of a team with a common goal. The agent provides leadership and expertise, while the buyer — the final authority
on what he or she actually wants — provides direction. Either party relies on the other to succeed, and what benefits one party benefits the other; they are a team. So when buyers are empowered by an AI that assists in elucidating what exactly they are looking for, it works in favor of the agent by progressing the team toward a more e cient resolution.
For instance, HomeByte, an AI assistant designed for the home-buying journey, not only makes it easy to pinpoint the exact homes you’re interested in buying, but it also helps you decide if you’ll like your new neighborhood.
That makes AI a part of the team as well, and it ought to be embraced as such. Instead of waiting for the buyer to bring new tools to the table, agents should proactively seek out technologies that will make the process easier and
faster for the buyer — and, by extension, for the agent as well.
What, then, if it becomes too easy for the buyer? Will it become so easy that they no longer require the services of a real estate agent? While that may one day be the case, it certainly isn’t yet. The agent still has a unique place within the team; they need merely to realize the value they o er, and then aim to fill that role as well as possible.
Good agents are still the most experienced, relevant source of information for any buyer. While most AIs are necessarily trained on historical data, the agent is constantly immersed in their present market and has been for years. Agents are therefore far better equipped to make real-time judgments and o er expertise tailored to the precise time and place.
Even the best AI tools are only just that, and most buyers who are serious about making wise investments are willing to bypass the cheap alternative of doing it all themselves for the assurance of an expert who is more than likely to save them money in the long run.
Whenever the market takes a drastic turn, it is easy to assume the worst. And, to be fair, change never does come without risk. But for those who are willing to grow with the business, risk is always accompanied by opportunity.
It is plain to see that artificial intelligence is altering the face of real estate and will continue to do so into the future. All that remains now to be decided is whether the agent will harness this change for the better, or indeed risk becoming obsolete.
With the beginning of fall, it’s time to take stock of homebuying trends and see where we’ll be headed in the near future.
Nationally, real estate transaction volumes tend to peak in the spring and summer, aligning with the beginning of the school year. This fall, we anticipate a decrease in these volumes. High mortgage rates are discouraging potential buyers who might otherwise purchase out of desire rather than necessity. On the flip side, current homeowners with lower interest rates may be hesitant to sell due to the increased cost of securing a new mortgage. Consequently, the market is experiencing a standstill: in the general market, necessity rather than desire propels most transactions.
However, in the luxury market — where financial
considerations like interest rates have less impact — desire remains a significant factor in decisions.
Focusing on the New York City market, activity generally picks up in the fall when residents return from summer breaks.
According to Elegran | Forbes Global Properties' Consumer Sentiment Index, NYC is hovering around its seasonally adjusted pre-COVID-19 longterm average, indicating a robust market. We describe the current market as discerning yet liquid, a trend we foresee continuing into the fall.
With NYC's real estate
market characterized by more transient behavior and shorter average holding periods than the national average, high transaction volumes are expected even in the face of rising interest rates. A significant number of cash transactions, international buyers and luxury enthusiasts who desire a slice of the NYC experience, especially post-pandemic, fuel this. These groups are largely undeterred by interest rate fluctuations.
We project an uptick in transaction volumes this fall, accompanied by limited inventory, especially for prime properties. Renovated properties are
likely to command a premium, while those needing refurbishments might see discounted prices.
Renters face a dilemma: choose between soaring rental prices and high interest rates. However, for those considering a fiveto seven-plus-year tenure, purchasing might still be a more viable option. The possibility of refinancing during periods of lower rates can be a saving grace.
Once interest rates drop by approximately 150 basis points, anticipate a dynamic shift in the market. Such a decrease could invigorate the landscape, drawing in fresh sellers and
buyers. The resulting surge in transaction volumes could match or even surpass those observed in 2021.
While interest rates are climbing, thus elevating borrowing costs, home prices haven't shown signs of weakening. This resilience can be attributed to a significant drop in supply, even with reduced demand (especially when compared to the 2020-2021 peak). A more pronounced supply decrease coupled with diminished demand cultivates a competitive market, exerting an upward pressure on prices. The current reluctance among homeowners to sell, given the favorable interest rates they're locked into, acts as a price stabilizer.
Many anticipated a dip in prices with increasing interest rates, as traditional economic theory suggests. However, the reality is that rising interest rates have affected potential sellers more profoundly than prospective buyers. In simple terms, current homeowners, enjoying low interest rates, are not eager to swap those for current higher rates. Meanwhile, firsttime buyers, often driven by necessity, are less deterred by these rates.
This scenario propels a sustained demand from first-time homebuyers while trade-up buyers hesitate. This consequently strains the supply of starter homes. Many homeowners now remain in their initial homes longer than they had anticipated, unwilling to abandon their advantageous rates.
Larger homes, too, are less frequently available on the market. Traditionally, homeowners might sell and downsize to minimize expenses. However, with the current scenario, maintaining a large property with a low interest rate might be more viable than purchasing a smaller property at a higher rate.
For the forthcoming six to 12 months, anticipate elevated interest rates to persist. A potential easing might be on the horizon once the Federal Reserve signals an end to rate hikes and conveys confidence in containing inflation. Still,
a significant drop in interest rates might only manifest when the Fed initiates a consistent series of rate cuts. As the gap narrows between an owner's existing interest rate and a new, more attractive rate, we might witness a surge in market activity, with transactions driven more by desire than mere necessity. In such an environment, property prices will likely maintain their upward trajectory. Barring a substantial financial downturn, a broad decline in residential real estate prices remains unlikely in the foreseeable future.
Anticipated inventory constraints are likely to persist for the foreseeable future, with relief primarily contingent on a decrease in interest rates. Once these rates drop to the 5.0 to 5.5% range, it's expected to alleviate the current standstill in the real estate market. This decline will narrow the gap between homeowners' existing interest rates and
the rates on potential new mortgages. As rates fall, we can anticipate an increase in properties listed on the market. However, this will also likely attract a surge of buyers, ensuring that the market remains competitive, if not intensifying the competition even further.
Buyer’s or Seller’s Market?
This fall, consumers should anticipate a market that doesn't distinctly favor either buyers or sellers. Instead, the landscape is shaping up to be predominantly balanced, or what’s often referred to as a "neutral market." However, given the nuances of the current real estate trends, there might be a subtle tilt in favor of sellers. This means that while opportunities will emerge for both parties, sellers might find themselves with a slight advantage in negotiations or in terms of getting closer to their asking price. It's crucial for both buyers and sellers to stay informed and adaptable to navigate such a nuanced environment successfully.
Elegran | Forbes Global Properties’ Leverage Indicator is a comprehensive market snapshot, informing us whether conditions favor buyers or sellers — i.e., which party possesses transactional leverage.
Looking at the graph above, this is indicated by the direction of the curve. Our indicator also informs us regarding the relative strength of that leverage, indicated by the slope of the curve.
Four metrics power it: supply, demand, median price per square foot and median listing discount.
Even in the years leading up to this transformative time of intense focus on diversity, equity and inclusion, the lack of diversity in the design professions was obvious and under a ack.
“More perspectives on race, color, economics and religion expands design priorities,” wrote Nick Schaden, at the time a UI Engineer for Square in a 2017 article on the Inside Design blog.
In an October 2020 article in Fast Company titled “4 Steps to Design a Be er Future A er COVID-19,” Bobby C. Martin, Jr., co-founder of graphic design firm Champions Design, responded, “What’s more important is to go beyond empathy and make sure that the people that are creating the work — that are thinking and strategizing — are coming from diverse perspectives.”
As these sentiments took root across multiple industries, they also gained momentum in the building industry. Over the last several years, diversity has had an increasingly important role to play in our thinking about how physical spaces are designed and built. The logic is that more diversity represented among building industry professionals will result in a higher level of empathy for user populations with a diverse set of physical,
psychological, cultural or economic realities. This thinking applies whether you are talking about a corporate headquarters, an education or healthcare facility or an urban development. The theory carries particular weight when it’s applied to the built environment for people who typically have little exposure to good design and the associated benefits.
Billed as “the people’s design firm,” Washington, D.C.-based Determined by Design focuses on affordable housing and shelter for marginalized communities — low-income users, o en people of color — that might not normally have access to good design, much less a voice in its creation.
The firm’s foundational principle, Design Equity, underscores Founder Kia Weatherspoon’s commitment to elevating the quality of the built environment for everyone.
“Design is not a luxury for a few, it is a standard for all,” said Weatherspoon. Informed by time spent visiting her incarcerated brother in prison, her military career as an Air Force veteran deployed four times in the Middle East following 9/11 and her experience creating high-end hospitality spaces, Weatherspoon has devoted her design and teaching careers (as a professor at the Savannah College of Art & Design) to addressing social and econom-
Jennifer Busch Director of Client Partnerships, Eventscapeic inequities through design.
“There is a bias that exists when designing for low-income communities, and predominantly people of color,” Weatherspoon said. “I don’t see demographics. I came from a luxury hospitality and multifamily space, so the only way I know how to design is how I design spaces for everybody else.”
Weatherspoon represents a growing group of socially responsible professionals who are empowering marginalized communities to determine their own spatial destinies. Another is Open Design Collective, an Oklahoma City-based, not-for-profit firm that brings together underrepresented communities and the design and city planning resources necessary to promote social and spatial change.
“Empathy is an important value, especially working in communities that have been harmed,” said Vanessa Morrison, chief executive officer, who co-founded Open Design Collective with her partner Deborah Richards, chief design officer. “Another value that is equally if not more important is shared power.” Morrison pointed out that as professionals in the building industries grapple with how to address patterns of inequity in marginalized communities, translating solutions to actual practice can be elusive.
“One of the best ways we can address those challenges is by working alongside community members and creating space for them to be leaders in the shaping, planning and designing of their physical spaces,” Morrison continued. “Every time we step into a neighborhood we have to lead with that sensitivity. You can’t do that if you’re not working with the people who are most heavily impacted.”
History is rife with examples of urban development that have caused social and spatial harm. When David Geffen Hall recently celebrated its grand re-opening following a $550 million renovation, Lincoln Center chose to address the questionable history of its site head-on. Once known as San Juan Hill, the neighborhood was home to thousands of Puerto Rican and Black residents and hundreds of small businesses in the 1950s, before controversial urban planner Robert Moses oversaw its destruction to make way for the development of Lincoln Center. The renovated hall reopened last October with a performance of Etienne Charles’ San Juan
Hill: A New York Story, an immersive multimedia work that honors the history of the San Juan Hill neighborhood and the indigenous and immigrant communities that populated the land on which Lincoln Center was built.
More recently, we’ve tried to do be er. Steven Pedigo, executive director of LBJ Urban Lab and professor of practice at the LBJ School of Public Affairs at the University of Texas at Austin, said that in urban development, there’s an acute awareness about issues across communities related to development.
“The issues of urban development have become much more front and center, and the public is demanding community engagement,” he said. “Fi een years ago, community engagement was nice to have. Now it’s a must-have because of our political process.”
One reason for developers, planners and designers to engage communities, he said, is that real estate has moved beyond singular developments to city development, large-
scale community development and neighborhood development.
“There are larger implications,” he said. “We’re building out destinations with mixeduse public amenities that are taking advantage of public incentive dollars. All of that has required a new level and type of engagement to service the needs of the community.”
Community engagement allows real estate, planning and design professionals to understand the needs and desires of the community, to understand the gaps and to ensure that a development remains a good community partner and a good community anchor.
“Through co-creation, developers can also address fears that come along with gentrification and displacement,” added Pedigo. Though development is not new to community engagement, “the newer facet is the question of how you achieve your community development goals and also your economic development goals in the process.”
In fact, there are very real economic arguments for empowering communities to help determine their own built environments.
“When you start to gather the opinions and desires of a specific community, their cultural identity is going to be expressed through that project,” said Pedigo. “Don’t just do it to check a box. Do it in a way that’s thoughtful and intentional. Second, make a commitment to le ing that community engagement influence the project or change its direction.”
The third point, according to Pedigo, is where many developers miss opportunities.
“Communicate impact,” he said. “Be very clear about how that engagement shaped that development and communicate that back to community stakeholders.”
With a reported 100,000-plus asylum seekers in New York City, the city is struggling with a fnancial burden of approximately $12 billion. In a frantic effort to deal with the asylum seekers, the city is turning former industrial buildings, hotels, dormitories, schools, offce buildings and warehouses, as well as parks, playing felds, and parking into Humanitarian Emergency Response and Relief Centers (HERRC) in many neighborhoods.
The HERRCs are not built, equipped or operated as homeless shelters. In many locations, lavatories and showers are limited and supplemented by portable facilities on the streets. Kitchens are undersized or non-existent, so migrants receive pre-packaged meals. There are no living spaces, so residents congregate on streets. Security protocols are questionable. Migrants are only entitled to emergency health care, so there are no vaccinations or other public health measures in place.
For owners of cooperative shares and condominium units in the city, this infux of migrants presents a host of issues: public health, public safety, public education, loss or reduction in other public services and tax increases.
According to the New York State Community Health Indicator Reports, rates of Shiga Toxin, Salmonella and Shigella (all communicable intestinal ailments) are increasing within New York City. Rates of venereal diseases such
as syphilis and gonorrhea are increasing as well. There are also signs of antibiotic-resistant tuberculosis (TB) and other respiratory infections on the rise. Flu, antibiotic-resistant pneumonia and antibiotic-resistant TB will be dangerous as we move into winter.
Property managers and boards of multifamily residential properties located near a HERRC should meet with local public health offcials and local law enforcement authorities to ensure public safety. Discuss with public health offcials the steps to manage rats attracted by container food waste and the hazards from wastewater from portable showers. Additional trash pick-ups may be required. Depending on the circumstances, you may decide to employ additional security.
Parents of school children should insist that all children be screened for communicable diseases. Migrant children entering public school should be inoculated against polio, measles, mumps and chicken pox.
The coming budget constraints mean that public services may be curtailed. As the leaders of your buildings, you will need to learn about these changes and ensure that your residents are informed.
This column presents a general discussion. This column does not provide legal advice. Consult your attorney for legal advice.
Reinsurance, which is insurance for insurers, is an essential element in determining the cost and availability of commercial real estate coverage. Because reinsurance costs have risen more than 30%, according to the Guy Carpenter U.S. Property Catastrophe Rate on Line Index, and capacity has fallen 20%, fnding affordable coverage remains challenging.
Reinsurance challenges have resulted in insurers increasing premiums and limiting capacity for commercial real estate. But there are ways for owners and operators to cope.
Frank DeLucia
Senior Vice President
Hub International Northeast
frank.delucia@ hubinternational.com
(212)338-2395
The main cause of woes in the reinsurance market was global natural disasters, which totaled $275 billion in 2022, one of the costliest years on record, reported the Swiss Re Institute. Insurance carriers buy reinsurance to protect themselves fnancially from major losses (like those from disasters in 2022). When reinsurers raise costs or limit capacity, insurance companies must take on more risk; in turn, they will raise rates, limit their exposure to risk through higher deductibles or lower the amount they’re willing to insure.
Real estate owners and operators can’t do anything about the reinsurance market, but they can minimize the fallout.
Property owners who aggressively manage risk, especially to minimize exposure to food and fre, will fnd more options and better
pricing. It is also critical that properties are well-maintained and have excellent security to help prevent theft and damage.
Replacement cost values on property policies have not been adequately increased to cover skyrocketing rebuilding costs. Carriers are shying away from policies with valuations that are too low or inaccurate. They may automatically increase premiums to cover higher replacement costs where they deem values underinsured. In some cases, a coinsurance penalty may be added to the policy or claims denied if the owner was underinsured.
A third-party reconstruction appraisal submitted with a property insurance application or renewal may help assuage carrier worries.
A parametric policy covers the risk of property damage from a given peril, like storms — a parametric policy will pay out even if the property does not incur damage. Because the payout is expedited, real estate owners and operators can immediately cover losses such as business interruption costs.
It is important to have the resources to leverage creative solutions that can save on insurance costs, such as CAT modeling, splitting off less-desirable locations, using multiple carriers or looking for hidden liabilities in property leases. A trusted advisor can help.
OF
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.
The backyard is an important extension of a home’s living space, so it makes sense for a family’s individual style to be refected in its design. By marrying your unique design perspective with your backyard needs, you can create even greater memories with your family and friends, amping up the yard’s purpose and value.
Even small changes to your yard can make a big impact on how much you and your family enjoy spending time at home and doing what the TurfMutt Foundation calls “backyarding.”
Kris Kiser
President and CEO
Outdoor Power Equipment Institute
1605 King Street
Alexandria, VA 22314
turfmutt.com
(703)549-7600
This is the trend of taking activities traditionally done inside (dining, exercising, working and more) into our own backyards and community parks. Decide which backyard style suits you and understand how you’ll use your dream yard. Here are suggestions:
Zen Garden. Serenity is the name of the game. Elements could include a water feature, easy-to-maintain plants and shrubs, strategically placed lighting and a hammock.
Play Yard. A play yard has a single mission: to have fun with family and friends. Create zones for all of the activities your family may want to tackle. Have a budding soccer star? Use the grassy area for a practice feld. Need a place to cool off? Think about adding a pool or splash pad. Have kids and pets that need a place to work out the wiggles? Add a sandbox for digging. Remember, live plants, shrubs and trees make great boundaries between different zones in the yard.
their home as the hottest spot in the neighborhood, an entertainment oasis is just the ticket. Map out different areas for eating and conversing. A fre pit can help keep guests warm during chilly evening gatherings, and you can whip up a delicious dinner in an outdoor kitchen. If neighbors are nearby, consider a wall of bushes or potted plants to create privacy. Hang string lights for ambiance and add lots of plants and fowering bushes.
Wildlife Sanctuary. Those who want to create a wildlife sanctuary in their own backyard should opt for a mix of native and adaptive plants that are recognizable and useful for local wildlife. A diverse array of fowering plants attracts birds, bees and butterfies. A bee fountain or hummingbird feeder can help pollinators thrive by providing important hydration. For other wildlife, provide natural sources of habitat by planting shrubs and trees.
Outdoor Offce. Set up your outdoor offce for success by selecting a comfortable, quiet spot that offers seating and shade near electrical outlets and a strong Wi-Fi signal. The appropriate lighting and heating features can help extend the usefulness of the outdoor offce. Jazz up your video conference background by making sure trees, bushes and plants are viewable or add a green wall or a tall potted plant behind your seat.
Entertainment Oasis. For those who view
For more information, sign up for Mutt Mail, a monthly e-newsletter with backyarding tips and news from the TurfMutt Foundation. To learn more about creating the yard of your dreams, visit turfmutt.com.
Langsam Property Services Corp. is a Bronx-based real estate management company. These buildings are located in the Bronx, Manhattan, Queens, Brooklyn, and lower Westchester County.
Langsam is designated as an Accredited Management Organization (AMO), a standard of excellence in management conferred by the Institute of Real Estate Management (IREM).
1601 Bronxdale Avenue
Bronx, New York 10462
Tel: 718. 518. 8000
Fax: 718.518. 8585
German value grocer Aldi is continuing its U.S. expansion in a big way. In August, it announced that it will acquire Winn-Dixie and Harveys Supermarket as part of a larger divestiture by their parent Southeastern Grocers to various entities. The move includes approximately 400 Winn-Dixie and Harveys Supermarket locations in Alabama, Florida, Georgia, Louisiana and Mississippi.
Debra Hazel
Debra Hazel Communications
North Las Vegas, NV
(201)618-5247
"Like Aldi, Winn-Dixie and Harveys Supermarket have long histories and many loyal customers in the Southeast and we look forward to serving them in the years to come," said Jason Hart, CEO of Aldi, in the announcement. "The time was right to build on our growth momentum and help residents in the Southeast save on their grocery bills. The transaction supports our long-term growth strategy across the United States, including plans to add 120 new stores nationwide this year to reach a total of more than 2,400 stores by year-end."
Aldi has been in the Southeast since the 1990s and has been investing in the region ever since. It recently opened its 26th regional headquarters and distribution center in Loxley, Alabama, to support new stores and plans 20 new locations in the region by the end of the year.
"Aldi will operate Winn-Dixie and Harveys Supermarket stores with the same level of care and focus on quality and service, as we also evaluate which locations will convert to the Aldi format to better support the neighborhoods we'll now have the privilege of serv-
ing," added Hart. "For those stores we do not convert, our intention is that these continue to operate as Winn-Dixie and Harveys Supermarket stores."
The deal should comfort Winn-Dixie’s and Harvey’s landlords, which will see a prominent anchor that will be more fnancially stable.
Of course, that’s not the only big deal going on in the supermarket sector. The $24.6 billion Kroger merger with Albertson’s, announced in October 2022, is still working its way through various regulatory issues, and will entail the entity selling more than 400 stores around the country to C&S Wholesale Grocers. The two operate more than 5,000 stores nationwide.
It continues a decades-long consolidation in the industry, in New York and nationally. IBISWorld reports that there are 63,348 supermarkets and groceries in the U.S. as of this year, down 0.6% from 2022, and down from more than 72,000 10 years ago.
By comparison, even with 2,700 stores in the U.S. after the acquisition closes, Aldi has a long way to go for national penetration. It operates in 38 states, and there’s no store anywhere near me in Las Vegas, a market dominated by Kroger (Smith’s) and Albertson’s, so a little competition would be welcome.
And at a time when high grocery prices are still lingering even as infation has moderated, expanding value and the number of supermarkets is a good thing.
When properly implemented, a charitable remainder trust is one of the best tax strategies to defer tax, increase cash fow and obtain a charitable income tax deduction when selling highly appreciated assets such as real estate.
A charitable remainder trust is an irrevocable trust established by taxpayers with charitable intent. The taxpayer will donate the property to the trust and name an income benefciary and fnal charitable benefciary.
Joseph Mecagni Partner, Tax and Business Marcum LLP
Boston, MA
joseph.mecagni@marcumllp. com
The income benefciary can be the taxpayer, spouse, child or another individual. More than one income benefciary can receive set payments from the trust or a set percentage of the worth of the property for a defned term. The trust document determines how long the benefciary will receive income from the trust or until the benefciary dies. The fnal benefciary is the charity which receives the remainder of the assets.
A charitable remainder trust can turn highly appreciated assets into cash without paying capital gains tax. The taxpayer donates an asset to the charity using a charitable remainder trust, which sells the asset at fair market value and retains the proceeds. The taxpayer benefts with an immediate charitable contribution income tax deduction.
The charitable contribution income tax deduction is determined based on the present value of the charitable organization’s remainder interest. This is calculated as the value of the
donated property minus the current value of the annuity payments to the income benefciary. The IRS provides life expectancy tables for taxpayers to calculate the deduction.
There are two types of charitable remainder trusts based on how they pay benefciaries. Both trusts can be created while the taxpayer is alive or upon death.
Charitable remainder annuity trusts (CRATs) pay the benefciaries a specifc dollar amount yearly. The amount must be at least 5% and no more than 50% of the property’s value in the trust when it was established. A charitable remainder unitrust (CRUT) pays a percentage of the current value of the property in the trust yearly. The payments generally must equal at least 5% and no more than 50% of the assets' fair market value, valued annually.
Charitable remainder trusts can offer many benefts, including: helping taxpayers plan major donations to charities, providing predictable income for life or over a specifc time period, allowing taxpayers to defer income taxes on the sale of assets transferred to the trusts and allowing taxpayers a charitable contribution income tax deduction.
Before creating the charitable remainder trust, taxpayers must consider potential drawbacks. The charitable contribution deduction is less than had the taxpayer donated outright to charity. There is no access to the assets in the trust. The charity will eventually own these.
The fall festival season is offcially underway. For host communities, this means managing a momentary population boom that can strain municipal resources and test residents.
The short-term booms can be substantial. Sturgis, South Dakota, a town of about 7,000 residents, draws more than 400,000 people to its annual biker rally. Park City, Utah's population of about 8,500 explodes to more than 100,000 during the Sundance Film Festival. While the crowds give local economies a boost, they also create challenges.
Pam Knudsen Avalara
255 S King St. Ste 1800 Seattle, WA 98104
Short-term rentals (STRs) have become increasingly popular in the era of Airbnb and Vrbo. For local hosts, the events are an opportunity. But for neighbors and the community at large, STRs create plenty of controversy. Hosts don’t always bother complying with vacation rental regulations and taxation obligations. Neighbors often complain about increased traffc, noise and excessive partying.
STRs also can be diffcult for municipalities to track for the purpose of enforcing vacation rental laws and taxation. Noncompliant STRs can cause the most problems and generate no tax, license or registration revenues.
For example, Maui County in Hawaii now requires hosts to submit government-issued Tax Map Key (TMK) numbers indicating property locations before listing them on the online rental platforms. Maui also has prohibited STRs in residential areas. In San Diego, new
rules require STR owners to complete a ShortTerm Residential Occupancy (STRO) application process and comply with all host requirements before they can rent their properties.
The question is, how far should these regulations go? How can cities and towns strike the right balance to avoid locking themselves out of the economic benefts of STRs?
Fort Worth, Texas requires an initial $150 registration fee for hosts that must be renewed yearly for $100. The city is using compliance offcers to enforce STR rules. But Fort Worth and more than 20 other municipalities are looking at technologies such as artifcial intelligence (AI) to enforce compliance.
AI solutions employ data mining to scrape information from STR booking platforms to identify active properties. The information is compared with property data held by tax authorities to determine if the properties are following rental rules and paying their taxes. Such an approach could be a game changer. For hosts who have operated under the radar of local and tax authorities, it could mean the party is over. But it doesn’t have to be.
Rather than wait for authorities to catch up with them, property owners can leverage technology that simplifes compliance. Automated tax management solutions for STRs handle all compliance-related tasks, from licensing and permits to calculating tax rates to processing returns.
Chances are, you’ve listened to a podcast. According to reports, 62 percent of Americans have tuned in to a podcast, and Insider Intelligence reports that 144 million people in the United States listen to podcasts monthly. For the real estate and AEC sectors, they represent untapped audiences. The opportunity to leverage the potential reach of a mainstream format can mean the difference between being heard or fading into the background. Read on for three key benefts that the podcasting format offers for new ways to connect with clients and build brands.
Bobby Bonett
Executive Vice President, Strategy
Sandow Design Group
3651 FAU Boulevard
Boca Raton, FL 33431
(561)961-7600
The Linchpin of a Content Marketing Ecosystem. Business leaders have a responsibility to keep their marketing channels populated with engaged content daily. That may mean writing blogs, deploying newsletters, creating content for Instagram and TikTok, developing outbound sales collateral and more.
A sound podcast content strategy can be the tipping-off point for content campaigns across each channel. For example, by launching an interview-style show, content creators walk away from each interview not only with great audio but with content that can be curated down, optimized and reformatted for distribution as a blog post, Instagram feed post or as a teaser email showcasing a memorable moment shared between you and your guest. That may be two weeks of content from one engaging conversation!
Build Authority and Credibility. By sharing valuable insights, market trends and expert advice, frms can position themselves as trust-
ed authorities. This can play a role in attracting potential clients, investors and partners. A frm’s expertise is further enhanced by its guests. By curating the right experts, they can offer listeners a second, trusted perspective whose presence will also reinforce the frm’s position as a thought leader.
New Format for Networking. The podcasting community is ripe for making new connections. Consider these two angles: frst, frms will meet new individuals by the guests they welcome onto the podcast. As time goes on, experts may fnd themselves on the receiving end of pitches from communications frms.
Each guest may individually offer inroads to new potential clients and new business connections. Second, podcast hosts are often invited to sit in the guest chair on other shows.
Launching a podcast takes more than just hitting the “record” button; it demands careful planning and execution. However, when you consider the growth of the industry, projected to reach $4 billion by 2024, coupled with the potential to cultivate content, establish credibility, and foster meaningful connections, the opportunity becomes compelling.
Our team at Surround proposes a strategic approach: conceptualize an engaging format and a theme tailored to your target audience, identify a roster of 10 to 15 captivating guests and assemble a small but adept production team. Audio quality is about as important as content quality! Now is the time to seize the podcasting medium.
BROOKLYN’S GROWTH AND EVOLUTION:
The well-rounded and forward-thinking nature of Brooklyn means that it has the bandwidth and resources to support the growth and evolution of businesses of all kinds. However, with progression or transformation comes gentrifcation, which must be managed with a balanced approach so that Brooklyn remains a hub for artistic expression and community-conscious development.
Elyssa Marcus Vice President of Asset Management and AcquisitionsRubenstein Partners
2929 Arch St., 28th Floor
Philadelphia, PA 19104
(215)563-3558
Amid massive recent residential and commercial development in North Brooklyn, the Under the “K” Bridge Park (located directly under the Kosciuszko Bridge in Greenpoint) was conceived through a community-driven design process that converted an abandoned site into a seven-acre public park and cultural venue. Projects like these are essential for offsetting some of the effects of rapid gentrifcation — preserving community space combats over-densifcation and provides an outlet for expression or reprieve.
As a board member of the North Brooklyn Parks Alliance as well as a representative of Rubenstein Partners’ 25 Kent building, I advocate for the continued development of open green spaces, inclusive of the 27-acre Bushwick Inlet Park, as a vital component for the sustainable growth of Brooklyn.
Regarding retail, national brands’ approaches to a Brooklyn presence are very different from how they might open a shop in Manhattan. In Brooklyn, many brands will forge their own Brooklyn-inspired identity, curating a more deliberately and conscientiously designed
presence, often an alt-culture adaptation or offshoot of their existing brand. Retailers are less heavy-handed with their storefront signage and displays, experimenting with new concepts and product offerings and striving to collaborate with the Brooklyn landscape and community. There is a level of respect that brands show to Brooklyn that ameliorates the impact of gentrifcation and homogenization, spurring innovation way above its weight.
Similarly, in the emerging offce market in Brooklyn, the burgeoning creative class across the borough is habituating to more dynamic and specialized offce or offce-hybrid uses. In Williamsburg, at 25 Kent, the frst leases we signed for our upper foors were Kith and Amazon. Both tenants utilize and confgure their space in ways that exemplify the artisan-driven spirit of Brooklyn: Kith’s 60,000-square-foot space, which serves as its global headquarters, combines light manufacturing (such as producing new designs and prototypes) with an open-foorplan creative offce. Kith has since opened its fagship retail store on the ground foor.
Amazon Music’s 30,000-square-foot presence at 25 Kent, which houses its Music and Streaming divisions, utilizes its 16-foot foorto-ceiling windows with views of the Manhattan skyline as the ultimate backdrop to host and stream live concerts, entertain talent, produce and record music and podcasts and to draw employees back to the offce for scenic conference room meetings and desk-time. In short, Brooklyn does offce differently.
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, fber solutions and fre alarm installations for any size project. The project management team has over 100 years of experience.
Students at UC Santa Barbara will begin enjoying access to the school’s newest learning facility, the four-story, $70 million Interactive Learning Pavilion at its core.
The 95,000-square-foot structure provides approximately 2,000 seats of learning space, which includes five lecture halls, three classroom spaces for project-based learning and 20 flexible discussion rooms. Each of the 32 classrooms and lecture halls is designed to seat between 30 and 350 students. The project also provides 1,700 new bicycle parking spaces to facilitate the widespread bike culture of the university. It’s estimated that approximately 14,000 U.C.S.B. students and sta commute daily by bicycle when school is in session.
But that tra c also complicated the logistics of the construction.
“The project is located in the middle of campus and required an early re-route of bicycle and pedestrian lanes, as well as planning for just-in-time deliveries in the early morning to keep clear of student tra c,” said Je Bara, senior project manager at C.W. Driver Cos.,
which completed the building. “We worked closely with the university to develop offsite staging where delivery vehicles could enter the campus individually, therefore limiting the number of trucks on campus at any given time and minimizing the impact of construction on the community.”
Breezing through the middle of the pavilion is an open-air “street” space that serves as a corridor between the two major buildings. Exposed stairs and terraces receive sun and
daylight throughout the day. Upper levels provide views of the campus, including Pardall Mall to the west, Library Mall to the north and the ocean to the south.
Designated LEED Gold, it will be powered exclusively by electricity with no natural gas usage. Driver’s construction team received the Liberty Mutual Insurance Safety Commendation Gold Award from the University Controlled Insurance Program (UCIP) for their outstanding performance in safety.
the newly renovated Limelight Hotel Aspen features 126 guest rooms and suites with an upgraded modern aesthetic that feels like Aspen itself. Eaton Fine Art (EFA), an Austin, Texas-based art consultancy, collaborated with the Limelight Hotel Aspen to curate the art collection for the newly renovated property. Aspen Skiing Company and its hospitality brands, The Little Nell and Limelight Hotels, are owned by
“Art has the ability to promote thought and discussion; the art in this program was curated to showcase artists whose work does just that,” said Terry Eaton, president and chief curator of EFA. “Included are artists from across the world, with unique points of view and varying backgrounds, all utilizing art to make their voice heard.”
For Limelight Hotel Aspen’s guest rooms, EFA collaborated with several women artists throughout the state of Colorado and one from Europe. Meredith Nemirov, a Colorado-based artist, created a mixed media art series titled, “Rivers Feed the Trees,” which addresses issues of climate change. Highlighted by vintage topographic maps combined with paintings of trees in Aspen, fed by rivers and their tributaries, Nemirov depicts extreme temperatures affecting the surrounding landscape. United Kingdom-based artist Emma Lawrenson created a series of graphic, hand-pulled screen prints that embody the simplicity of nature found throughout the region. EFA also collaborated with several artists to conceive unique, yet simplistic, art for the guest suites. U.S.-based artist Matthew Shlian expertly crafted hand-folded geometric paper sculptures, reminiscent of the surrounding mountains.
Transitioning away from a locally inspired experience to a more expansive perspective, EFA and the ownership of curated artwork in public spaces sets the stage for prominent artists to express their unique voices. A few pieces from the collection include a Robert Rauschenberg signed print titled “Earth Day, 1990,” which adorns a wall in the lounge. Selected for his messaging and importance of the environment, this piece also represents Rauschenberg’s importance early in his career as an openly gay artist and his inclusion as a renowned artist of the 20th century, EFA said.
Works from Scott Reeder and UK-based David Shrigley, both of which have a sense of levity and humor about them, creatively use text to engage with the viewer. In the communal spaces, a screen print from Brazilian artist Beatriz Milhazes, sits across from a pair of prints from Brooklyn-based artist Derrick Adams. While Milhazes' work is inspired by blending her Brazilian roots with inspiration from classic French artists Henri Matisse and Piet Mondrian, Adam’s work leans into pop culture to depict contemporary Black Americans and their communities.
JLL has announced the further strengthening of its national life science platform with the addition of Thomas Burrus as associate vice president. He will concentrate on the New York metropolitan area and work under the leadership of John Cahill, senior vice president of JLL's Northeast Life Sciences Practice Group.
“New York’s life science industry is emerging as a contender to the nation’s established hubs,” said Cahill. “As the supply of lab space continues to grow, and the commercialization in cell and gene therapy, customized medicine and translational medicine pick up speed, Tom will have a pivotal role in our work with innovative life science companies who demand best-in-class real estate solutions.”
Burrus joined JLL from Newmark, where he served in a real estate advisory capacity nationally and as a tenant representative working with leading life science tenants in the New York metropolitan area. Among several high-profile transactions, he represented Blue Matter Consulting, a leading strategic consulting firm serving the life sciences industry, in a headquarters lease at 909 Third Ave. He also arranged a headquarters transaction on behalf of a virtual behavior healthcare company, AbleTo, at 320 West 37th St.
Hellman Electric LLC, an Electra USA company and provider of extensive fiber infrastructure and wireless construction in the New York metro region, has formed Datacom a liate Hellman Electric Datacom and promoted Thomas Caruso, vice president of operations Datacom Division, to president of Hellman Electric Datacom.
Caruso brings extensive background experience from both the customer and contractor sides to his new role. As president, he will oversee Hellman Electric Datacom’s operation and expansion in its wireline and wireless construction initiatives. He will be responsible for future growth into new markets.
“As one of our founding datacom division leaders, Thomas not only brings an extensive background of experience and knowledge, but a true dedication to not only the division’s growth but the company’s growth,” said Steven Lazzaro, president and CEO at Hellman Electric. “With his new role, we will accelerate our reach in the New York Metro area, expanding our current and future customer capabilities."
Hellman Electric Datacom o ers design-build solutions for all aspects of the datacom industry, including colocation facility build-outs, full turnkey wireless deployment, data center design and construction, as well as the build and maintenance of carrier backbone and local loop fiber networks. While the company’s primary service area is the New York Metro area, it covers the entire tri-state area as well.
Coldwell Banker Real Estate LLC announced that Sandra Vidal has a liated with Coldwell Banker Exclusive from Compass. Vidal serves an extensive list of developers and entertainment clients from Los Angeles, Europe and Latin America.
Vidal brings more than 24 years of real estate experience in Greater Los Angeles, rehabbing properties and negotiating deals for herself as a developer, as well as for her clients as a realtor. A native of Rosario, Argentina, Vidal came to the U.S. to play the lead role on a Telemundo television series. Most recently, she appeared on the Spanish reality television show, “Rica, Famosa, Latina” and shares a look at her personal life with her 100,000-plus Instagram followers.
Vidal's approach includes targeted advertising campaigns on Instagram and Facebook, email marketing, content marketing and personalized 1-to-1 neighborhood outreach programs. Her notable deals include a home for composer Henry Mancini's family in the Bird Streets neighborhood and an 18-acre property once owned in part by former First Lady Betty Ford.
Co-founded in 2020, Coldwell Banker Exclusive has grown from 25 agents at its inception to over 180.
Michael Graves Architecture (MG) announced the appointment of Julie Yurasek as international director of interior design. With a prior tenure at MG, which commenced in 1996, Yurasek held the positions of senior interior designer and director, providing her with a distinct perspective and firsthand knowledge.
“Human experience is at the heart of MG’s DNA, and we’re confident Julie’s addition to the team will allow us to expand our horizons into new markets and industries while upholding the fundamental values that define our firm,” said Joe Furey, president and CEO of MG. “We eagerly anticipate establishing enduring connections with new cultures, communities and partners in the process.”
Yurasek will leverage her knowledge of the global hospitality industry to serve as a liaison to project architects, advocating for the decisions of her clients. Yurasek’ draws inspiration from the cultural and material surroundings of a project, utilizing her personal cache of resources to meet the ambitions of her clients. A direct result of her collaboration with custom manufacturers worldwide, her library of artisan finishes, one-of-a-kind stones, unexpected finishes and striking textiles creates a distinctive foundation for each project. Her projects include the St. Regis Cairo at Nile Corniche in Egypt, the 51 Degrees Spa Residences and the Espa Spa at Resorts World Sentosa.
1 All the tech tools used by real estate experts to optimize the way people buy, sell, research, market and manage a property
5 French fashion designer
9 ____ renewal (city-related)
10 Outdoor retailer opening a Co-op in Ithaca, NY
11 Build a new wing, for example
12 Box of tools
14 City with Paulo
15 Arts supporter
18 Meta post
19 NYC association which co-signed an agreement for the Induction Stove Challenge, abbr.
22 Ward off insects, e.g.
24 Global real estate brand, ____ Seekers
27 NYC company whose business is multifamily rental properties — "We deliver more than just nice apartments. We create places to build a life."
28 Online game platform and game creation system
30 Hospital show
31 "Suits" TV character who "knows everything"
32 Supermarket opening a new Astor Place store at 770 Broadway
1 AI-powered home analytics platform which provides real-time home valuation date
2 Trip around earth, say
3 Does badly at the box office
4 Solar ____: innovative structures transforming everyday parking lots into powerful eco-friendly energy farms
6 Innovative school of medicine at Mount Sinai
7 Garnet's hue
8 Auction a endee
13 Campus climber
16 ___ Miss
17 High quality watch
19 Go-ahead
20 Non-profit association operating in 50 countries with strategic responsibility for the real estate assets of large corporations
21 Deviation from the norm
23 Architectural columns
25 Alien who was too good for earth
26 Sequoia, for one
29 Cathedral instrument
31 Boxer or beagle
32 Make one
33 Uma's "Pulp Fiction" role
34 One who collects inside data
As Chief Development Officer of Appellation, Courtland Palmer leads the fundraising and capitalization efforts for Appellation’s hotel projects and oversees the company’s real estate investments. Prior to joining Appellation, Palmer served as director of finance for The Robert Green Company, where he led the underwriting efforts for several notable hotel projects including Four Seasons Hotels and Resorts, Montage, Pendry, Marrio and more. He also spent three years as an investment banker where he oversaw more than $4 billion in transaction volume and managed banking relationships with some of the largest publicly traded F&B and consumer and retail companies in the U.S.
Palmer also is president of Charlie Palmer Collective (Appellation’s sister company), an independent fine-dining restaurant companies.
How long have you been in the industry?
A er transitioning from the banking industry, I have now been working in the hospitality real estate industry for five years.
What brought you into the business?
I’ve always had a passion for hospitality and food & beverage. I started in banking and developed a foundation in finance that I would eventually translate into a career in hospitality.
I then served as director of finance for a wellknown hotel developer named Robert Green. Now, as chief development officer at Appellation, I oversee the growth, fundraising and capitalization strategies for our first five hotel projects. I concurrently serve as president of Charlie Palmer Collective, more than a dozen restaurants and roo op bars across the U.S.
Who inspires you?
My team inspires and motivates me on a dayto-day basis. Surrounding yourself with successful, intuitive and high-performing people empowers you to push yourself and set an example. Embracing the strengths and talents of those around you is a powerful thing.
How is the hotel sector doing right now?
Demand for travel and experiential dining is higher than ever. People are craving discovery and connection and experiences are replacing demand for material possessions.
Historically, hotel sale transaction volume has indicated the health of the lodging market, which of course correlates to the overall health of the economy. Today, the balance of that decline in hotel sale transactions is much less a result of organic demand for travel, and much more a result of the state of the capital markets, and the Fed’s decisions to raise rates to the highest levels in 22 years.
How are you handling pricier capital?
This is the hospitality real estate sector’s biggest challenge. Hospitality has always been the most elastic asset class within commercial real estate, with the highest propensity to perform in strong economic environments, and to underperform in tough environments.
However, we are seeing institutional investors and lenders gravitate toward the higher end of the market in order to combat rising yields. The ceiling of financial potential for the upscale and higher-end of the hotel market is much higher than that of mid-scale and lower-end hotels.
When the federal funds rate is fixed at north of 5.0%, investors and lenders will gravitate to the sector that can sustain that higher level of expense. The overall gross volume of transactions will decrease, but the net proportion of volume at the upper end will increase.
Sonoma County, California. Sonoma is twice the size of Napa, produces almost twice as much wine and is home to more AVAs and more wineries than Napa. Appellation is developing Petaluma’s newest flagship hotel. With a culinary-first hotel concept, we are flipping the traditional hotel model on its head, infusing food and beverage into the experience.
The financial backing of a global bank, and the streamlined structure and agility of a boutique bank that will keep your business moving forward.
BHI offers full commercial banking services that combine the personal attention of a prestigious boutique bank with the expertise and financial strength of Bank Hapoalim – the leading financial institution in Israel.
With a footprint in the largest U.S. metropolitan areas, we are committed to creating innovative funding solutions for your short– and long-term needs and providing convenient banking and liquidity products for your everyday business needs.
As an industry that has long been centered around family ownership, real estate has had particular challenges to becoming more diverse. And even with programs and commitments in place for the business to look more like the people they serve, there’s a long way to go, as we can see by the numbers.
92%
The percentage of real estate appraisers who are white, compared with 59% of the general population and 82% of real estate agents and brokers (U.S. Bureau of Labor Statistics)
The number of prospective homebuyers across one in six prospective homebuyers across races/ethnicities who report facing discrimination in the homebuying process. (National Association of Realtors)
92%
The percentage of frms surveyed that reported having some type of DEI initiative in place (Urban Land Institute)
11.6%
The percentage of people of color in C-suites and executive teams across top frms in the industry, up from 10.9% year-over-year (Local Logic)
13%
The percentage of real estate agents who identify as LGBT (Zippia)
33.7%
The percentage of North American real estate frms that planned to introduce anti-bias hiring training in 2023, on top of 39.8% that already do (Ferguson Partners)
Zetlin & De Chiara LLP, one of the country’s leading law frms, has built a reputation on counseling clients through complex issues. Whether negotiating a contract, resolving a dispute, or providing guidance to navigate the construction process, Zetlin & De Chiara is recognized as a “go-to frm for construction.”
