Mann Report October 2024

Navigate turbulent times with confidence.

With our deep insight and experience, where others see challenges, we see opportunities.

TODAY’S MARKETS MOVE MORE QUICKLY THAN EVER.

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.

EDITORIAL

Editor

Debra Hazel

Associate Editor

Alex Baumbusch

Director of Communications and Marketing

Penelope Herrera

Director of Newsletter Division

Cheri Phillips

PRESIDENT/CEO

Jeff Mann

ART

Art Director

Serena Bhullar

Graphic Designer Madi McCreesh

Cover Photography NYSE Group

CONTRIBUTORS

Sean Burke

Frank DeLucia

Kris Kiser

Adam Levine

Ira Meister

Ilana Preuss

Carol A. Sigmond

BUSINESS

Technology Consultant

Joshua Fried

Distribution

Mitchell’s Delivery Service

DIGITAL MEDIA

Designers

Serena Bhullar

Madi McCreesh

Editors

Alexandra Baumbusch

Natalia Finnis-Smart

Debra Hazel

Penelope Herrera

Cheri Phillips

Web Developer CS Designworks

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ONE MANN’S OPINION

A while back, we were thrilled to feature Metropolitan Commercial Bank’s reinvention of its Retail Banking Centers — it was a great look into how banks can serve a new and discerning customer.

This month, I was even more excited to read about the Bank’s 25th anniversary, as Founder, President and CEO Mark DeFazio relates his company’s journey from a staff of three in sublet space on Park Avenue to becoming the only middle-market bank headquartered in New York City and ringing the bell at the New York Stock Exchange in August. It’s a great story.

And we’re also focusing on cities, and especially New York City, even with an upcoming event. I’m looking forward to our autumn National Realty Club Foundation Golf Outing, set for October 7 at the Fresh Meadow Country Club. We’re delighted to be honoring Mark R. DeFazio and Daniel Vitulli, a partner in Marcum LLP’s New York office and national partner-in-charge of its real estate group. Our Humanitarian Award will be given to Mark F. Engel, CEO of Langsam Property Services Corp.

It’s always a great day, and raises funds for the NRC Foundation, which supports causes that benefit all New Yorkers. Thanks to our Golf Committee Co-chairs Bob Knakal of BK Real Estate Advisors and Jaimee Nardiello of Zetlin & Chiara LLP for all their efforts. For more informa tion about future events, please contact me or Penny Herrera at pherrera@nationalrealtyclub.org.

I can’t believe this year is almost over – see you at our November/December double issue!

“The man who has confidence in himself gains the confidence of others.” -Hasidic Proverb

by

Photo

David Lipman

COVER FEATURE

Image courtesy of NYSE Group

KNOW GREATER VALUE

From financing considerations, to property performance metrics, today’s real estate business is inundated with both challenges and opportunities.

PKF O’Connor Davies has decades of experience working with a variety of assets including industrial, office and residential sites. Our experience in this complex field gives us the expertise to deliver strategic advice that drives real value.

With the PKF O’Connor Davies Real Estate Team, our clients know greater service, know greater insights, Know Greater Value.

Edward O’Connor, Partner 201.712.9800

eoconnor@pkfod.com

EDITOR’S

LETTER

As a Brooklyn native and nearly life-long New Yorker, I’m a city girl at heart. (Even when I lived in New Jersey, I was in Jersey City.) So I’m thrilled to focus on city living and trends in this, our Urban Issue.

Cities are our economic engines, and balanced neighborhoods are the engines for cities, as you’ll see in our summary of Cushman & Wakefield’s report about how cities can avoid creating downward spirals. New York has already survived more than one, and has become a prototype for other cities. Also, take a look at what Shvo has done to reimagine the iconic Transamerica Pyramid in downtown San Francisco. And learn what Toll Brothers has done in my former home town of Jersey City.

Meanwhile, our columnists tell us how to keep buildings safe from lithium ion battery hazards and estate planning, among other crucial topics.

With just our November/December issue left to finish 2024, let me know what you’re seeing as we head into next year!

See you next month.

Bronx Chapter of HGAR Hosts 89th Golf, Tennis & Pickeball Outing

Photos by HGAR

The Bronx Chapter of Hudson Gateway Association of Realtors (HGAR) hosted its 89th Golf, Tennis & Pickleball Outing at The Village Club of Sands Point, New York. Over 90 players and guests came out to celebrate and honor the chapter’s Outstanding Affiliate Member, Anthony Mormile of Orange Bank & Trust Co. For the first time, the chapter also chose to spotlight Eliezer “Eli” Rodriguez, Esq., former CEO of The Bronx Manhattan North Association of Realtors and now The Bronx Chapter of HGAR’s regional government affairs director/Bronx chapter director, and Janine Mosher, Bronx liaison.

The outing featured a golf tournament, pickleball tournament, networking cocktail hour, dinner program and more.

“Our 2024 honorees are terrific professionals and truly deserving individuals,” said Mark Engel, general committee chairman and CEO of Langsam Property Services Corp. “The outing was a success, and the players and guests had a ball!”

In accepting the awards, the honorees mentioned how they have benefited immensely from the many relationships they have cultivated over the years because of their membership and involvement with The Bronx Chapter of HGAR.

During the dinner portion of the Outing, Engel generated laughter as he raised money for Camp Good Days & Special Times (The Camp).

“Thank you for helping us raise $6,100 for The Camp, as that money will benefit families who have been touched by cancer and other life challenges,” Engel added about The Camp, which is located near Rochester, New York.

2024 pickleball players

Kenneth Coder, Coder and Company; Andrew Rafii, Horizon Real Estate Partners; Nicholas Puelo, Paro Management and Byron Valdez, Chatam Management Co. Inc.

Michael Spencer, Orange Bank & Trust Co.; Greg Sousa; Anthony Mormile, Orange Bank & Trust Co., 2024 Outstanding Affiliate Member and Jeremiah Downing

Michael Steiner and Eliot Cherson, Hertz Cherson & Rosenthal P.C.

Beau Owen, Arker Companies/Progressive Management; Kyle McCarthy, Start Elevator; Lisoo Kim, Arker Companies/Progressive Management and Mike Herity, Start Elevator

Eliezer Rodriguez, HGAR Bronx Chapter and, 2024 Spotlight Award Recipient; Mark F. Engel Langsam Property Services Corp. and Janine Mosher, Bronx Liaison, 2024 Spotlight Award Recipient.

Mark F. Engel, Langsam Property Services Corp.; Jim Slattery, Slattery Energy Consulting and Anthony Mormile, Orange Bank & Trust Co., 2024 Outstanding Affiliate Member

Marc Zadrima; Sean Slattery and Anthony Corvino, Slattery Energy Consulting and Shaun Lyons

Boz Reilly, Mark Valenti and Chris Donnellan, Energo

JNF Hosts 16th Annual Charity Golf Tournament

One hundred and fifty Long Island philanthropists and corporate executives in the real estate and finance industries recently attended Jewish National Fund-USA’s 16th Annual Long Island Golf Classic at Pine Hollow Country Club.

The exclusive event was chaired by Mark F. Engel, Langsam Property Services Corp., and honored Kenneth Lovett, president, John B. Lovett & Associates, for his dedication and support of the land and people of Israel.

After a day on the greens, attendees heard from Lt. Col. (Res.) Tiran Attia, the director of Jewish National Fund-USA’s Special in Uniform, a world-first program that integrates young Israelis with disabilities into the Israeli military, where they serve according to their unique talents and abilities. Today, over 950 participants are enrolled in the program.

“We believe that everybody has an ability, even if they have certain

challenges that they have to overcome,” said Attia. “If we find this ability, we can boost it and empower these teens to reach their full potential. Our program also assists these individuals with the transition out of the army and into the workforce so they can be productive and successful members of Israeli society while continuing to achieve greatness in all aspects of their lives.”

Tournament highlights were:

Closest to the Pin #14 – Craig Marshall. Closest to the Line #1 – Bob Cleese.

1st Ind Gross – Brandon Gordon.

2nd Ind Gross – Kevin Smith.

1st Team Gross – George Smith, Kevin Smith, Bob Cleese and Larry Chiraz. 2nd Team Gross – Ira Gordon, Brandon Gordon, Josh Goldman and Daniel Wollman.

1st Team Net – Bruce Azus, Charles Hirsch, Alex Hirsch and Zachary Azus. 2nd Team Net – Peter Cosentino, Thomas O’Neill, Matthew Buggenhagen and Desmond Hollins.

Photos courtesy of Ben Gabbe Photography

Bruce Azus and Zachary Azus, Affiliated Adjustment Group and Charles Hirsch and Alex Hirsch, Milbrook Properties

Bill Jebaily, Aggressive Energy; Frank DeLucia, Hub International; Ken Lovett, John B. Lovett & Associates and Joe Mawad, Tekniverse

David Levy, Empire National Management; Nathan Halegua, Jonis Realty; Brett Vetensky, Janney Montgomery Scott and Larry Ingber

Robert Eisman and Jason Eisman, HUB International and Seth Robins and Brian Robins, National Maintenance Supply

Adam Cole, A’isha Torrence, Alex Horowitz and Matthew Becker, BDO

Ricky Wolbrom, MALC; Brian Fink, NYECS and Stephen Hazelkorn

Mark Engel, Langsam Property Management; Frank DeLucia, Hub International; Ken Lovett, John B. Lovett & Associates and Bill Jebaily, Aggressive Energy

Ken Lovett, John B. Lovett & Associates; Mark Engel, Langsam Property Management and Rosemarie Klipper, Jewish National Fund-USA

Scott Jaffee, Metropolitan Realty Group; Rosemarie Klipper, Jewish National Fund-USA and Michael Kessler, Douglaston Development

Samuel Waxman Cancer Research Foundation Hosts the 42nd Annual Golf Tournament

The Samuel Waxman Cancer Research Foundation’s (SWCRF) 42nd Annual Golf Tournament took place at the scenic Fresh Meadow Country Club in Lake Success, New York. More than 100 participants and numerous supporters raised more than $250,000 in support of SWCRF cancer research initiatives such as the Institute Without Walls, the International Network for Aging and Cancer Research and the SWCRF Women’s Cancer Research Program. Together, these research programs fund more than 60 scientists across the United States and around the world.

Over the last 20-plus years, scientific advancements have led to a decrease in cancer mortality by nearly 30%. However, despite significant progress in prevention, cancer incidence is increasing worldwide. To combat this, SWCRF directed more than $2.3 million in donor-supported funds to some of the world’s leading research institutions and scientists this year alone. Unique to SWCRF, funded investigators must collaborate with labs outside of their focus to help accelerate the pace of discovering new treatments.

Dennis A. Herman, chairman and CEO of Beekman International Center Ltd. and Gary Jacob, executive vice president of Glenwood Management Corp. co-chaired the SWCRF Golf Tournament. Herman and Jacob are members of the SWCRF board of directors. The golf committee members included Frederick W. Barney, Jr., Michael Hight, James A. Ingram, Gerard F. Joyce, Samuel Waxman MD and Ari Zagdanski.

Event sponsors included: The Durnan Group (brunch sponsor), Dennis A. Herman (lunch co-sponsor), Gary Jacob (dinner sponsor), Lorber Charitable Fund (BBQ at the Turn sponsor), M&T Bank (reception sponsor), Fredrick W. Barney Jr. (hospitality station sponsor), Greenberg Traurig, Glenwood Management and Taub Family Companies/Palm Bay International (patron sponsors) as well as a very special thanks to the Max B. Cohn Family Foundation.

In-kind donors included: Coty, Johnson’s Popcorn, JP Morgan Chase & Co., Greg Norman, Tharanco Lifestyle LLC, Mindset Wellness, Friedman Rosenthal Team at Brown Harris Stevens and Neuhaus.

PHOTOS COURTESY OF CHARLES MANLEY

Samuel Waxman

Guests enjoyed refreshments.

Event co-chairs Dennis Herman and Gary Jacob

Golf tournament participants

Guests taking a break from the green

Friends gather

Event co-chairs Dennis Herman and Gary Jacob

Golfers enjoying the day

$995/YEAR MEMBERSHIP

Be a part of the who’s who in real estate while listening to guest speakers, enjoying an assortment of food and drinks and having a good time.

Be a part of the who’s who in real estate while listening to guest speakers, enjoying an assortment of food and drinks and having a good time.

Be a part of the who’s who in real estate while listening to guest speakers, enjoying an assortment of food and drinks and having a good time.

Be a part of the who’s who in real estate while listening to guest speakers, enjoying an assortment of food and drinks and having a good time.

A space where members can meet, connect, and work together to help real estate prosper more than ever

A space where members can meet, connect, and work together to help real estate prosper more than ever

A space where members can meet, connect, and work togetherto helprealestateprospermore thanever

A space where members can meet, connect, and work together to help real estate prosper more than ever

We hope you see the vision of filling NYC with an abundance of success

We hope you see the vision of filling NYC with an abundance of success

We hope you see the vision of filling NYC with an abundance of success

WehopeyouseethevisionoffillingNYCwithanabundance ofsuccess

Exbo Group Relocates to 740 Broadway

GFP Real Estate LLC announced that Exbo Group Inc., a boutique financial consulting firm that provides growth-stage companies and investors with finance, accounting and advisory services, has signed a new, three-year lease for 6,031 square feet of built-to-suit office space on the seventh floor of 740 Broadway in NoHo.

Neith Stone of GFP Real Estate LLC and Newmark’s Robert Silver, Anthony Sciacca and Brittany Silver represented landlord LafayetteAstor Associates LLC. Jason Majlessi of Venture Commercial and Remy Liebersohn of Cushman & Wakefield represented the tenant. Exbo Group Inc. is expected to move in this month.

“GFP’s ability to deliver a quality turnkey space at a great price made 740 Broadway a bit of a no-brainer for our client,” added Majlessi. “The landlord’s team made it easy for Exbo to design the perfect space for their current and future needs.”

Built in 1912, 740 Broadway is a 12-story, 152,000-square-foot loft building designed by architect Francis H. Kimball in Beaux-Arts style. Prominently situated on the southeast corner of Broadway and Astor Place in NoHo, the landmarked building offers a unique combination of history and modern appeal.

Tenants enjoy unobstructed views wrapping around the corner, high ceilings and flexible floorplates. The building’s recent renovation includes a state-of-the-art lobby featuring architectural media walls showcasing nature scenes.

“740 Broadway has become a hub for tech and finance-related companies seeking cool, flexible office space in a dynamic neighborhood,” said GFP’s Stone. “The building’s blend of historic charm and modern amenities makes it an ideal location for firms like Exbo Group that are looking to grow and thrive in a vibrant environment.”

Brooklyn Mixed-Use Development Nears Completion

The partnership team of BEB Capital, Totem/Ailanthus and SK Development announced the topping out of 737 Fourth Ave., a 193,000-square-foot, 14-story, 187-unit mixed-income housing and retail development in Sunset Park, Brooklyn.

Of the 187 residential units, 46 units will be permanently affordable at an average of 48% of area median income (AMI), one of the lowest AMI averages achieved in the last five years in Brooklyn.

“[This] marks an exciting day for our partnership team and the Sunset Park community as we celebrate the topping out of 737 Fourth Ave. Once completed, this amenity-rich development will be a fantastic addition to the neighborhood, featuring new retail offerings and modern, mixed-income residences, addressing the city’s need for more affordable housing,” said Lee Brodsky, CEO of BEB Capital.

737 Fourth Ave. will also include 6,200 square feet of ground-floor retail space, with an executed lease to former tenant Dunkin’ Donuts for 1,275 square feet. The building’s amenities will include a fitness center, game and media lounge, co-working lounge, private dining and entertainment areas, tenant storage and a roof garden with sweeping views of Brooklyn and New York Harbor.

“Access to affordable housing is one of the greatest challenges facing our city today, and we are proud of our efforts to tackle this issue through projects like 737 Fourth Ave., which increases affordable units in Sunset Park at one of the lowest AMI averages in years,” said Ofer Cohen, principal of Ailanthus.

The development also includes a Community Benefits Agreement (CBA) signed with area community-based organizations including Fifth Avenue Committee (FAC), which will ensure lasting benefits for the neighborhood, such as local jobs, M/WBE contracting and green infrastructure improvements.

“This topping out marks an exciting milestone for the city and highlights our dedication to building inclusive communities where people can live, grow, and thrive,” said Scott Shnay, principal of SK Development.

Marketing of the new units is expected to begin in early 2025.

Photo via GFP Real Estate

Photo courtesy of BEB Capital

Fried Frank

Where major real estate transactions happen

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HUDSON YARDS

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

CHELSEA MARKET

Counsel to Google in connection with its US$2.4 billion acquisition of Chelsea Market in New York City.

BLACKROCK HEADQUARTERS

Counsel to BlackRock in its 850,000square-foot lease for its planned headquarters relocation to 50 Hudson Yards.

MANHATTAN WEST

Counsel to Brookfield Property Partners on all aspects of the development of Manhattan West in the Hudson Yards District, including its recent lease to the National Hockey League.

PENN STATION

Counsel to Vornado Realty Trust and Related Companies on the redevelopment of Penn Station, including the redevelopment of the James A. Farley building and construction of Moynihan Train Hall.

CENTRAL PARK TOWER

Counsel to J.P. Morgan, as lead lender, in its US$900 million construction loan syndication to Extell Development for the development of Central Park Tower.

ONE VANDERBILT

Counsel to SL Green Realty Corp., including all zoning approvals, in connection with the development and leasing of One Vanderbilt Avenue, an iconic 1,401-foot tall, 1.7 million square foot office tower being constructed on the full block to the west of Grand Central Terminal.

20 TIMES SQUARE

Counsel to Maefield Development in its approximately US$1.5 billion acquisition of the EDITION hotel, retail, and signage project known as 20 Times Square.

JP MORGAN CHASE HEADQUARTERS

Counsel to JP Morgan Chase in connection with various aspects of its planned 2.5-million-square-foot headquarters redevelopment at its 270 Park Avenue location.

THE EVENTS

Hartz Mountain Industries Opens Hoboken Point

Hoboken Point, the luxury apartment development situated along the Hudson River on the border of Hoboken in Weehawken’s Lincoln Harbor enclave, has celebrated its grand opening. Just three months after making its market debut, the waterfront property is now over 50% leased, reported developer Hartz Mountain Industries.

Hoboken Point offers “sanctuary-like” residences and a wealth of amenities crafted for balance, wellness and convenience, including a large co-working space dubbed the Work Lab. Designed by CetraRuddy, Hoboken Point’s interior design stems from the concept of an urban marina with sophisticated details that evoke the feeling of being aboard a luxury yacht.

“The enthusiastic response to Hoboken Point underscores the desire for a premium living experience that balances all elements of everyday life,” said Gus Milano, president and chief operating officer at Hartz Mountain Industries. “As demand for live-work-play communities grows, we’re proud to lead the way in creating extraordinary developments throughout the state of New Jersey.”

Each of the building’s 262 residences — ranging from studios to twobedroom-plus-den layouts — features include condo-level finishes; floor-to-ceiling windows with views of the Manhattan skyline, Hudson River and Hoboken, 12-foot to 14-foot ceilings in certain units; custom plank French white oak flooring; spacious custom closet systems; custom-designed chef-inspired kitchens and well-appointed bathrooms.

Hoboken Point’s 40,000 square feet of amenities include the Work Lab, a 5,200-square-foot private coworking space with tech-enabled

conference rooms, an outdoor terrace and panoramic views. Residents can also enjoy a fitness center and yoga studio with 180-degree views of the Hudson River and Manhattan skyline; dining lounge with a demonstration kitchen; game lounge with a multi-sport simulator; screening room with a library and a dog park. On the multi-level roof deck, residents can indulge in hotel-inspired living with a sky pool and spa, lounge areas, an outdoor kitchen and landscaped green space.

Lincoln Harbor is a 60-acre live-work-stay-play neighborhood offering a range of lifestyle services and amenities, including popular culinary destinations, an expansive public park system and various recreational and cultural centers. Located at 100 Harbor Blvd., Hoboken Point offers direct access to the 18.5-mile Hudson River Waterfront Walkway and an array of transit options including the New York Waterway ferry, NJ Transit and the Hudson-Bergen Light Rail.

Commercial real estate advisor and service provider Newmark Group Inc. announced that it served as strategic advisor to Blue Owl Capital Inc., Chirisa Technology Parks and PowerHouse Data Centers in a joint venture worth up to $5 billion to develop large-scale AI/High-Power Computer (HPC) data centers across the United States.

Blue Owl Capital is a New York City-based alternative investment asset management company. Chirisa Technology Parks focuses on developing highly connected data center campuses in the United States and Europe. PowerHouse Data Centers, a wholly owned division of American Real Estate Partners, is a developer and owner of nextgeneration data centers and provides technical real estate solutions for hyperscalers nationwide.

the United States,” said Roeschlaub. “As demand for data centers continues to grow, we anticipate that investors and developers will continue to show interest in similar projects.”

Newmark Research reported in January that the data center industry is growing rapidly, fueled by expanding needs of hyperscalers, AI and HPC users and large enterprises. The increased demand has spurred a surge in new development and land banking for future development, with data center construction pipelines hitting new all-time highs in 2024. Global spending on cloud infrastructure in the third quarter of 2023 was more than $68 billion worldwide, up 18% year-over-year.

Newmark’s Co-President of Global Debt and Structured Finance Jordan Roeschlaub and Brent Mayo, who leads Newmark’s Data Center and Digital Infrastructure Capital Markets team, acted as strategic advisor

As the first stage of the partnership, the JV will provide capital to develop turnkey AI/HPC data center assets. The initial 120 megawatts of capacity under the program will be delivered for CoreWeave in 2025 and 2026 at Chirisa’s 350-acre campus near Richmond, Virginia.

“The rapid growth of emerging technologies like artificial intelligence (AI) is fueling demand for data center capacity, already driven high by the cascade of digital innovations over the past decade, such as content streaming, cloud computing, machine learning (ML), Internet of Things (IoT), e-commerce and more,” the report said.

Further deployments in the pipeline include brownfield and greenfield campuses in New Jersey, Pennsylvania, Texas, Kentucky and Nevada.

“This joint venture represents an innovative and flexible capital solution allowing for the rapid development of new AI/HPC capacity across

Photo courtesy of Hartz Mountain Industries

Oasis Hallandale Secures $85M Loan for West Condo Tower

The developer of the Oasis Hallandale (Florida) mixed-use project has secured an $85 million construction loan for the 10-acre mixed-use project’s first condo tower. The financing, provided by New York-based FBRED BDC Finance LLC, will fund the construction of the west tower and an accompanying parking garage.

Oasis Hallandale broke ground on the first of two 25-story towers in 2023. Designed by architectural firm Arquitectonica, the tower features 250 one- to four-bedroom residences with wrap-around balconies and floor-to-ceiling glass, offering unobstructed, 360-degree views of the City of Hallandale Beach and the water. The west tower, which has already achieved a 75% pre-sale rate, is slated for completion in 2025. Condo units range in size from 900 to 4,750 square feet, with prices from $675,000 to $4.4 million.

“From breaking ground last year to securing this significant financing, our vision for Oasis Hallandale is rapidly coming to life,” said Giuseppe Iadisernia, developer of Oasis Hallandale. “We are grateful to FBRED BDC Finance LLC for their support and belief in the future of Hallandale Beach. This milestone brings us one step closer to delivering a landmark development that will redefine luxury living in the area and contribute to the city’s ongoing growth and transformation.”

Located on 10.1 acres at 1100 E. Hallandale Beach Blvd., Oasis Hallandale is strategically positioned near the Village at Gulfstream Park, a horse racing, casino and entertainment facility. Hallandale Beach has experienced a surge in luxury condo developments and lifestyle destinations in recent years, attracting affluent individuals who are seeking better home values and proximity to the beach. Oasis Hallandale is also home to a vibrant commercial district with more than 59,000 square feet of retail and restaurant space, 35,000 square feet of office space and nearly 1,500 parking spaces.

Residents of both towers will enjoy a wide array of amenities, including pool decks with cabanas, lounges, a six-level waterfall, a golf simulator, banquet hall, children’s playroom, business center, fitness center, indoor and outdoor movie theaters, splash pad, ping pong room, mini soccer field, pet park and electric car charging stations.

The general contractor for the Oasis Hallandale project is Hallandale Beach-based MGM Construction Group.

Northwind Group Provides $100M A-Note for Multifamily Conversion of The Hudson Hotel

Northwind Group, a Manhattan-based real estate debt fund manager and private equity firm, has provided a $100 million senior A-Note as part of a $207 million senior lease-hold mortgage. The loan was secured by the Hudson Hotel, a 24-story, former 878-key hotel which is being converted into 441 multifamily units and 51,474 square feet of retail space. The property is located on 58th street between Eighth and Ninth Avenues. It was acquired by a repeat borrower of Northwind Group and was originally capitalized by Montgomery Street Partners as the fee holder and Parkview Financial, which provided a leasehold mortgage in 2022.

This loan is being provided by Northwind Group as part of its recently launched A-Note financing product, a vehicle that is targeted to provide the most senior tranche of the capital stack on real estate transactions. This pool of capital can be provided as an A-Note or Loan-on-Loan and will be available for all major asset types across the country, with a major focus on residential transactions with loan size of $50 million and above.

Northwind Group provided the A-Note with flexible terms, which will provide the owner and existing lender with the required capital to complete the conversion project. Northwind Group remains committed to lending in New York City and is actively providing capital to quality borrowers with well-located assets.

“Northwind Group is excited to provide our A-Note loan, as we recognize a big gap in the market for financing due to commercial banks stepping back from regulatory and macro issues,” said Ran Eliasaf, founder

and managing partner of Northwind Group. “We are pleased to work with experienced sponsors and financing counter parties like Parkview Financial and Montgomery Street Partners to deliver much-needed rental units due to the significant shortage of new rental products in Manhattan. We look forward to also continuing to provide senior financing to other lenders.”

Photo via Oasis Hallandale

Photo via PRNewswire

Corcoran Welcomes First Franchise in Raleigh, NC

Corcoran Group LLC has added Corcoran DeRonja Real Estate, its first franchise in Raleigh, North Carolina, owned and led by Frank DeRonja. The newly established Corcoran DeRonja Real Estate will serve clients throughout the greater Raleigh metropolitan area.

“As the Corcoran brand enters the dynamic Raleigh market, I look forward to seeing Corcoran DeRonja Real Estate build on their remarkable achievements while continuing to deliver the exceptional client service they are known for,” said Pamela Liebman, president and CEO of the Corcoran Group.

DeRonja Real Estate, now Corcoran DeRonja Real Estate, was founded at the tail end of 2010 by Frank DeRonja following a successful career as an independent real estate agent in the greater Raleigh marketplace. After seven years of steady development, DeRonja partnered with local industry veteran Amy Butler to help lead the firm as managing broker, ultimately spurring the growth of the company.

“I am honored for DeRonja Real Estate to be affiliating with Corcoran, one of the finest real estate companies in the world,” said DeRonja.

“The beautiful and iconic Corcoran branding, paired with the marketing systems, seamless technology suite and incredible network, is an ideal fit for our firm, aiding our agents to deliver an even higher level of care and support for both our new and repeat clients.”

Regarded as a swiftly growing city, Raleigh is known for its thriving technology, banking, gaming, pharmaceutical and insurance industries, as well as a high quality of life, that continues to attract new residents, the firm said. Housing options across Raleigh are diverse, catering to a wide variety of lifestyles and price ranges.

As there are urban hubs, as well as many surrounding suburban and rural areas, consumers can find everything from modern condominiums

in the downtown district, to historic homes in established neighborhoods, to newly constructed residences in amenity-filled developments and one-of-a-kind luxury estates on expansive properties.

“Frank, Amy, and the entire DeRonja Real Estate team have become locally renowned for their collaborative spirit and supportive environment, which is exactly what we look for when establishing a new Corcoran affiliate,” said Stephanie Anton, president of the Corcoran Affiliate Network. “Now supported by Corcoran’s stellar marketing, innovative tools, and international network, I am confident that Corcoran DeRonja Real Estate will only see further success in their marketplace.”

The Residences at Six Fisher Island Breaks GrounD

Related Group and partners Teddy Sagi, BH Group and Wanxiang America RE Group have broken ground on the Residences at Six Fisher Island. Situated on the final development site of the 216-acre island, Six Fisher Island features 50 bespoke residences across 10 stories. Coastal Construction is overseeing construction for a 2026 completion.

“The groundbreaking of the Residences at Six Fisher Island marks a transformative moment for this historic island, being the first new development in over five years and one of its final luxury residential ventures,” said Nick Pérez, president of Related’s condominium division.

With architecture by Kobi Karp Architects and interiors by Tara Bernerd and Partners, the building is designed to promote a seaside aesthetic that blends signature Miami style with tropical touches.

The homes, ranging from three to eight bedrooms, offer the exclusivity of a single-family residence while providing the ease and convenience of condominium living. With soaring ceilings, expansive terraces and panoramic windows, each residence offers an indoor-outdoor experience and water and city views. Residents will enjoy custom kitchens featuring Sub-Zero and Wolf appliances, dual walk-in wardrobes in the primary suites, and Bernerd-designed bathrooms with elegant natural stone finishes. Each home includes private elevator foyers, with select residences offering private pools and outdoor kitchens.

The project’s amenities enhance the five-star lifestyle that defines

Fisher Island. With more than 1,000 linear feet of shoreline, residents have access to two separate, resort-style pool decks, complete with swimming pools, sunbeds, private cabanas and full-service bars. The oceanfront wellness facility offers dedicated spaces for cardio, Pilates, weight training and yoga, while the full-service spa boasts saunas and treatment rooms. Additional amenities include a virtual reality game room, multi-sport simulator, interactive children’s playground, as well as a variety of on-demand services, including a 24/7 concierge, a house car and private transportation on and off Fisher Island.

The project has already generated $500 million in sales, including two penthouses that sold for a total of $150 million.

Rendering courtesy of Related Group

Hines Partners Adds MilkMate to Wellness Rooms at 205 Hudson

Nursing mothers have a new benefit at The Square at 205 Hudson in New York City. Hines, the global real estate investment manager, has integrated MilkMate’s breast pumping solution into its wellness rooms at The Square, a flexible office space in New York City.

MilkMate provides a multi-user pumping solution for mothers’ rooms, allowing mothers in the Hudson Square portfolio access to an inviting, comfortable and purpose-built space as needed. It includes single-use and multi-use equipment, so moms don’t have to lug their pumping equipment around and store it at the office.

“The MilkMate team and I are thrilled to partner with an organization as value-aligned as Hines,” said Patrice Meagher, founder and CEO of MilkMate. “Their commitment to creating best-in-class and inclusive workplace environments is consistently ahead of the curve, making them an ideal partner in our mission to support working parents.”

In today’s competitive real estate market, attracting and retaining tenants is more critical than ever. According to a survey conducted by CBRE, 42% of employers actively seek to improve their office environments with better amenities to attract and retain talent. For landlords and owners, investing in health and wellness initiatives, hospitality services and outdoor spaces is key to increasing foot traffic and providing an exceptional experience.

“We are dedicated to supporting working parents, especially mothers, as they return to work. Creating inclusive workplaces drives value for employers and landlords while also fostering a culture of equity and support,” said Whitney Burns, senior vice president of global client

strategy at Hines. “Partners like MilkMate are essential in providing the resources and spaces needed for everyone to feel valued and supported. Together, we are building a work environment that empowers all employees to thrive both personally and professionally.”

MilkMate’s FDA-cleared breast pumping solution is designed to support working parents, simplifying the return to the office after maternity leave, the company said. By incorporating such progressive amenities, real estate stakeholders can enhance their buildings’ appeal, cultivate a vibrant and productive atmosphere and maintain a competitive edge in the evolving amenities landscape.

This MilkMate solution becane be available upon The Square’s opening in September.

R-Zero Launches Reset-Certified Indoor Air Quality Monitor

R-Zero, a provider of smart building solutions, has launched a Resetcertified indoor air quality (IAQ) monitor and connected dashboard to visualize and act on IAQ data on demand. The solutions are designed for application in offices, schools and healthcare facilities to inform how indoor environments support occupant comfort, operational performance (including HVAC fault detection) and energy use.

Studies show IAQ affects how people feel and how well they live, especially when there is a problem with poor airflow. This is often caused by broken or bad HVAC systems. Energy waste is also a common problem in spaces where HVAC is not functioning properly.

“Monitoring indoor air and environmental quality goes beyond meeting the minimum compliance levels for standards like ASHRAE; it’s about enhancing occupant experiences and delivering tangible benefits for building owners and operators. As building stewards, we must embrace innovations that safeguard well-being, ensure comfort, and deliver efficient, sustainable operations,” said Dean Stanberry, past chair of the global board of directors for the International Facility Management Association. “You can’t manage what you don’t measure. By monitoring real-time building performance, you can swiftly address mechanical issues and assure occupants that their environment is safe and healthy, driving both satisfaction and value.”

With access to real-time air quality data and environmental comfort measures like temperature, humidity, pressure, light intensity and noise, building owners and operators can achieve a return on investment across various applications. Productivity can be maximized

by maintaining optimal CO2 levels in office and school facilities. In addition, smart building controls can take corrective action when needed and reduce occupant risk by preventing exposure to offgassing from furniture and carpets with formaldehyde measurements. Buildings can also identify and fix ventilation problems before they become widespread and costly.

R-Zero’s IAQ solutions include a range of battery-powered and wireless sensors for air quality monitoring, thermal comfort and HVAC fault detection. Set atop R-Zero’s smart building platform, users can collect integrated data insights to unlock improvements in productivity, space optimization, energy efficiency and operational performance.

Photo courtesy of Hines

Photo via PRNewswire

Artaic Expands “Designs on Demand” with New Designs and Colorways

Artaic, a mosaic manufacturer that utilizes robotic technology and innovative design tools to customize, design and fabricate mosaic installations, has expanded Designs on Demand, a selection of Artaic’s mosaic design patterns available by the square foot for quick delivery at a competitive price.

The brand has introduced three new designs in three new Custom on Demand colorways. Patterns “Pueblo,” “Hacienda” and “Pueblo Medley” join the Designs on Demand collection in “Old Fashioned,” “Sandy Sea” and “Shoreline” colorways.

Using the vast array of vitreous glass tile colors in the Custom on Demand palette, the Artaic design team has created the Old Fashioned, Sandy Sea and Shoreline colorways to further inspire customers looking to add mosaic artwork into their projects. With the addition of the Pueblo, Hacienda and Pueblo Medley repeating patterns to Designs on Demand, Artaic’s clients have additional true mosaic designs to choose from that can be produced and shipped in as little as two to four weeks.

The Pueblo tile pattern is a repeating geometric design, and the Hacienda pattern features a daring repeating pattern of bold shapes. Pueblo Medley features the Pueblo design in a vibrant mix of all three new colorways. The three colorways can also be used for any of the existing Designs on Demand patterns — Adana, Athena, Citadel, Retrograde, SoHo Stripe and Sunshade — or to create a completely unique mosaic artwork from any inspiration, be it an image, painting, fabric or idea.

The Custom Mosaic On-Demand Program features curated in-stock colors of Artaic’s vitreous glass tile, applicable to any mosaic pattern or

design. Inventory of Custom on Demand color palettes is kept on-site in Artaic’s Boston headquarters for domestic mosaic manufacturing that’s made-to-measure. Mosaics ordered in a Custom on Demand color palette are available to ship in as little as four to six weeks, with same-day sampling and rapid renderings.

The Designs on Demand collection is a carefully curated selection of designs from Artaic’s in-house mosaic collections, resized to be offered by-the-square-foot repeating module. Mosaics ordered from the collection can be manufactured and shipped in as little as two weeks and are priced at $49 per square foot (MSRP) with a minimum order of 60 square feet.

Special trade pricing is available, providing designers with an excellent solution for addressing supply chain delays, budget constraints or project deadlines.

Artaic will continue to introduce additional Designs on Demand patterns and Custom on Demand colorways throughout 2024.

Gertrude Vanderbilt Whitney Sculptures Installed at The Breakers

Welcome home, sort of! Two bronze relief sculptures by Gertrude Vanderbilt Whitney have found a new home at The Breakers, her family’s former mansion in Newport, Rhode Island. The sculptures are in the circular service area of The Breakers where visitors exit the house after their tour.

Whitney was a noted sculptor and founder of the Whitney Museum of American Art in New York City. These two reliefs are smaller casts of her panels on a 1919 Victory Arch in New York’s Madison Square. The arch was built of plaster and wood, triumphantly soared over several parades of World War I soldiers, then was torn down.

The bronze reliefs were kept at Whitney’s Long Island, New York studio for decades until last year, when the Preservation Society of Newport County purchased them from her estate. The Preservation Society owns, maintains and operates The Breakers and 10 other historic properties that are open for tours.

The larger piece, “America at War,” depicting soldiers engaged in a chaotic battle, is 5 feet long and weighs more than 300 pounds. The smaller piece, “Blinded,” features a soldier blinded by poison gas being assisted by a comrade. These figures formed the central group on a larger panel from the Victory Arch.

Whitney was one of the few American sculptors with firsthand experience of World War I. She traveled to France in 1914 and founded a hospital for wounded soldiers in the town of Juilly. There

she comforted wounded men and made drawings that she later used when designing her public memorials. Another famous commission was her 20-foot-high sculpture for the American Expeditionary Forces Memorial in Saint-Nazaire, France, with its figure of a “doughboy” standing with his arms outstretched atop a giant eagle. A maquette, or study, of that memorial is displayed in her bedroom in The Breakers.

The public display of these commemorative works coincides with the installation of a monumental new sculpture at the National WWI Memorial in Pershing Park in Washington, D.C. The 58-foot bronze relief by Sabin Howard, titled “A Soldier’s Journey,” was unveiled by the United States World War One Centennial Commission.

Photo courtesy of Newport Mansions

Photo courtesy of Artaic

DashLoops Introduces New Mobile Platform

DashLoops officially launched its new mobile-friendly platform, designed to enhance collaboration within the real estate industry. Developed by Terry Peterson, an entrepreneur with an extensive background in both technology and real estate, DashLoops combines essential tools that enable brokers, team leads and coaches to maintain seamless connections with their real estate agents and manage their operations more efficiently.

“Real estate agents should be in the field meeting clients, not tied to their desks,” Peterson said. “DashLoops equips them with everything they need right at their fingertips, streamlining communication and organizational tasks.”

The platform introduces a suite of features tailored to the needs of real estate professionals. With DashLoops, users can organize resource links, schedule events and even allow agents within specific user groups to contribute content, the company said. This functionality is designed to smooth out the workflow and tackle the common communication challenges that can disrupt real estate teams and brokerages. For effective event management, DashLoops allows Business and Pro account holders to designate Event Leaders, streamlining the process of whom to contact for specific details about events, thus ensuring clear and effective communication. The platform also supports multiple dashboards so users can switch between views tailored for brokerages, teams or coaching without needing to log in multiple times. This multiplicity helps keep all essential tasks neatly organized and easily accessible.

Moreover, DashLoops is enhancing user engagement through a notification system. This feature enables users to set up alerts for upcoming meetings or when new resources are added, ensuring that all

team members are timely informed and can prepare adequately. This proactive communication tool is crucial for maintaining high productivity and reducing the downtime associated with miscommunication.

Zillow Expands Natural Language Search

Zillow’s AI-powered search experience, which allows homebuyers and rents to use natural language to find their ideal house, has been upgraded. Now buyers and renters can search for their next home using simple, everyday language in even more ways — including by commute time, affordability, schools and nearby points of interest. Through natural language search, Zillow analyzes millions of listings to deliver the most relevant homes or rentals personalized to the user’s preferences.

Zillow is the first and only major residential real estate marketplace to implement this AI-powered search experience. Users can skip the filters and search in the Zillow app by simply describing their ideal home, just as they would when talking to a friend. They can specify details such as layout, location and style — and now have new options to search by commute time, affordability, schools and nearby points of interest. Users can also save their searches and have Zillow notify them when new qualifying listings come online.

“From streamlining the home search to personalizing the user experience, Zillow applies AI in practical ways to help people get home,” said Josh Weisberg, senior vice president of artificial intelligence. “Search is one of the bedrocks of our platform, and we’re always improving it to make it easier for users to find homes that meet their unique needs.”

At press time, the upgrade was live on the Zillow app for iOS and Android devices and will be coming soon to Zillow.com. Zillow’s enhanced search takes users’ queries and scans millions of listing details to bring relevant results to the surface. At the same time, the feature is training machine learning models to better respond to search queries that use natural, human-like sentences.

To use this enhanced search, users simply open the most up-to-date version of the Zillow app and type criteria for a home into the search bar. Users can now find their ideal home or rental by typing prompts such as “Homes 30 min drive from Millennium Park”, “Apartments near Denver Union Station”, homes under a certain price point or “threebedroom houses near Roosevelt High School”.

Many of Zillow’s features are powered by AI and machine learning, including the neural Zestimate valuation, personalized home recommendations and unique AI-powered Showcase listings, each of which gives shoppers a deep understanding of the home virtually before they ever step inside.

Photo courtesy of PRNewswire

Photo via ?

Lev Expands Digital Platform to Support Debt Brokers

Lev, a digital financing platform for commercial real estate, has debuted a major expansion of its AI-powered commercial real estate platform to support debt brokers. This strategic move extends Lev’s technology beyond sponsors, providing brokers with a comprehensive suite of data and tools designed to solve critical pain points in their daily operations.

The expanded platform, the company said, addresses the most pressing challenges faced by debt brokers: time-consuming lender research, inefficient deal management and fragmented data tracking. By centralizing these functions in a single, automated platform, Lev aims to significantly increase broker productivity and deal flow.

“Since our earliest days, we consistently heard from brokers about the hours lost to repetitive tasks and disjointed processes and a desire to leverage our platform for that purpose,” said Yaakov Zar, founder and CEO of Lev. “Our expanded platform is a direct response to these requests, providing brokers with the tools they need to focus on what truly matters — closing more deals and building stronger client relationships.”

Lev’s expanded platform offers a comprehensive suite of AI-powered tools that it said revolutionize how debt brokers operate. The platform dramatically reduces lender research time by providing a comprehensive lender database of over 4,000 lending institutions, leveraging AI to help brokers understand every lender’s preferences, historical transactions and current market activity. Automated deal management features,

like AI-generated deal books and task automation, can save hours of manual work.

The platform centralizes all client and lender information, offering a unified view of deals and communications, and instantly surfaces the most relevant lenders for their specific deal. Real-time market intelligence tools help brokers structure deals more accurately andcompetitively for their clients.

This expansion sets a new standard for efficiency in commercial real estate financing, and enables brokers to focus on high-impact activities that drive business growth.

RentSpree Announces Income Verification

RentSpree, a provider of rental software in the U.S., announced the launch of its new income verification report, a tool that confirms an applicant’s income based on their bank account transactions from the past 12 to 24 months. The result should boost accuracy and cut down on potential fraud.

RentSpree has partnered with Finicity, a Mastercard company, which powers the entire process. Finicity provides a one-time encrypted connection during which an applicant is prompted to log into their bank account, thereby generating a detailed financial report.

Income verification is a critical need for rental agents, supplementing traditional credit reports by offering a comprehensive view of an applicant’s financial stability and their capacity to meet rent obligations. As RentSpree’s fourth report offering — alongside credit, background and eviction details— the new feature significantly reduces the time agents spend on manual document requests and reviews, enabling a quick assessment of an applicant’s ability to fulfill their rent commitments.

“This enhancement provides substantial value to our users and addresses a significant pain point faced by rental agents,” said Michael Lucarelli, CEO and co-founder of RentSpree. “This feature facilitates the rapid verification of an applicant’s income based on actual transactions, providing clear evidence of their capacity to afford the monthly rent.”

A recent NMHC Pulse Survey including responses from apartment owners, developers and managers highlighted the prevalence of fraud in the real estate sector, with about 93% of respondents reporting incidents of fraud over the past year. Common issues included falsified pay stubs, misrepresented application information, identity theft and fraudulent payment methods.

“It’s extremely challenging to accurately assess the income of rental

property applicants,” said Lucarelli. “This is a possible fraud and financial risk in the event that a future tenant cannot pay their rent, which then results in lost rental income and possibly legal costs.”

Known for its user-friendly rental management software, RentSpree consistently delivers a comprehensive suite of tools designed to streamline the rental process. This latest feature underscores the company’s commitment to providing innovative solutions that enhance efficiency and reliability for rental agents and property managers, the company said.

Era Ventures Launches Initial $88M Fund

Era Ventures, a venture capital firm focused on investing in a broad range of business model innovations to catalyze positive change in the built world, announced the launch of its inaugural $88 million fund. Era Ventures will deploy capital across multiple stages and a full spectrum of sector-focused innovations, from enablement technologies that improve existing processes to truly disruptive platforms that reshape the industry.

The firm has identified several core business models driving change, including but not limited to SaaS and AI, marketplaces, embedded fintech and hardtech ventures leveraging new technologies to optimize physical assets, and will actively invest across these categories.

Founded by industry veteran Clelia Warburg Peters, Era Ventures’ investors include institutional investors such as Ivy League Endowments, ICG Advisors, New York Presbyterian Hospital, The Ashforth Company, BentallGreenOak (BGO), Continental General Insurance Company (CGIC), Pelwood Holdings, First American, Bain Capital Ventures, Fenwick & West LLP and others.

“We are proud to have invested in and to support Era Ventures in its mission to drive transformational change in the real estate sector,” said Jeff Assaf, chief investment officer at multifamily office ICG Advisors. “We’ve seen specialist venture funds consistently outperform in similarly complex sectors like financial services and healthcare, and Era’s approach positions it to drive fundamental disruption in a massive, yet technologically lagging, industry.”

Peters has been an investor in the proptech space since its early days — first as a co-founder of MetaProp, one of the original, strategically backed proptech funds, and then as a venture partner at Bain Capital Ventures, a generalist venture firm. She is the first woman to raise an

initial fund of this size in the category.

“I’ve seen firsthand the need for a new approach to physical world innovation that combines the creativity and quality of the generalist investing approach with the sector knowledge and relationships brought by specialist funds,” said Peters, founder and managing partner.

Fund 1 has already backed Honey Homes, a digital handyman subscription service provider; Latii, a cross-border construction materials marketplace; Welcome Homes, a platform to manage and build custom homes online; Ostrich, a next-generation real estate listing service in the U.K.; Shepherd, an embedded insurance platform designed for the construction industry; Truehold, a single-family rental company that combines home sales and rental leases; Homeward, an embedded financial platform powering residential real estate transactions; PassiveLogic, an AI-enabled platform for autonomous buildings; ViaBot, a Robotics-as-a-Service facility management platform and Indigo, an AIpowered platform to facilitate residential real estate transactions.

Measurabl Launches ESGx Benchmarks Report

Home buyers or renters can assess how much to pay for a home on comps from other area sales of houses with similar amenities. The same hasn’t been true for buyers or tenants at commercial buildings, especially when it comes to all-important sustainability, which affects operating costs and more.

Measurabl, a provider of ESG technology for real estate, has launched ESGx Benchmarks, a free new report that provides real estate owners, operators, investors and lenders unrivaled insight into sustainability performance — allowing for comprehensive global comparisons into measured energy usage and carbon emissions intensity across different property types and geographies.

The report offers asset-level sustainability comps based on meterlevel energy data from 110,000 anonymized assets across 93 countries. Users can find insights from Measurabl’s Quantum Cloud and data encompassing 18 billion square feet of real estate and 1,000 customers worldwide, that will help measure and compare sustainability performance between buildings.

Updated monthly, Measurabl’s ESGx Benchmarks offer data across six geographic tiers, including global, continent, subregion, country, country subregion and state or province.

Quantum Cloud can report on energy and carbon benchmarks, nearly 100 supported property types, six-tier geographic cohorts and six comparative benchmarks (percentiles and mean).

With coverage of up to 100 property types and six benchmarking metrics — 15th, 25th, 30th, 50th, and 75th percentiles, as well as the mean — the benchmarks deliver a robust perspective on asset-level performance. While traditional benchmarks often rely on self-reported

data and provide entity-level insights updated only once annually, ESGx offers monthly updates at the asset level, based on actual energy use and derived carbon emissions. This approach provides a more granular, transparent and reliable measure of real estate sustainability, free of charge, the company said.

“The launch of ESGx Benchmarks represents a transformational step for Measurabl and the real estate industry,” said Maureen Waters, president of Measurabl, the exclusive ESG data provider for the FTSE Russell, EPRA and NAREIT Green Index Series. “For the first time, stakeholders have access to globally consistent, asset-level data on energy and carbon performance that is updated monthly. This innovation is not just about providing data; it’s about empowering real estate owners, operators, investors and lenders with the insights they need to make informed, strategic decisions. ESGx Benchmarks will help them navigate sustainability challenges with greater accuracy and confidence, ultimately driving more effective management of their properties and investments.”

Photo courtesy of Measurabl

MillerKnoll Announces New Global Hubs in New York and London

Global furnishings showroom MillerKnoll has opened two new flagship locations in London and New York, including contract showrooms and stores from across the company’s collective of brands.

“This is truly an exciting milestone for our collective. We’re thrilled to showcase the full breadth of our design portfolio in such creative and innovative locations in London and New York,” said Andi Owen, CEO of MillerKnoll. “We’re taking the approach of locating brands next to each other based on feedback from design partners, dealers and customers. We look forward to the collaboration these spaces will facilitate as we continue to redefine modern design.”

Now occupying 11 floors and more than 77,000 square feet at 251 Park Avenue South, MillerKnoll New York is the first flagship location in the United States to combine contract showrooms and retail stores from across the portfolio. The space includes Knoll, Herman Miller, Geiger/DatesWeiser, Muuto and Maharam, corporate office space and a MillerKnoll Studio that will highlight additional brands like Hay and NaughtOne.

“MillerKnoll New York offers our customers, A+D partners and dealers a convenient and unparalleled experience to engage with the best of our collective under one roof,” said Ben Watson, chief creative and product officer at MillerKnoll. “We’re immensely proud of this new design hub and can’t wait to use it as a forum to share insights, innovations and ideas that meet our customers’ most pressing needs and inspire the future through design.”

The Herman Miller and Knoll retail stores are now open. At press time, the contract showrooms were planned to open for scheduled customer tours beginning in late September.

Located in The Sans at 20 St John’s Square in the London design neighborhood of Clerkenwell, MillerKnoll London is the first major MillerKnoll destination outside of the United States. The location

includes three floors spanning 1,700 square meters of contract showrooms and retail stores from brands including Knoll, Herman Miller and Maharam. A dedicated MillerKnoll Studio serves as a working showroom, bringing together the collective of brands, to showcase a unified approach for the modern workplace, according to the company.

“We believe there is substantial opportunity to grow internationally,” said Ben Groom, president, international contract at MillerKnoll. “The opening of MillerKnoll London is just one step we’re taking to offer an enhanced experience to our customers across the United Kingdom and Europe.”

Time Equities Inc. Launches TEI Quarterly Debt Fund LLC

Real estate investment and development company Time Equities Inc. (TEI) has launched the TEI Quarterly Debt Fund LLC, a TEI-sponsored investment opportunity structured as a $100 million debt offering that provides investors with an attractive short-term yield and the ability for investors to access liquidity on a quarterly basis.

“With the fund, TEI will be top of mind for investors with a fresh and compelling investment product line alongside its traditional real estate investment offerings, marking a significant step forward as the company continues to diversify and innovate within the investment landscape,” said Francis Greenburger, chairman and CEO of TEI. “As we expand our horizons and navigate an ever-evolving market, we empower our investors to grow alongside us, seizing new opportunities for enhanced returns, without the need to seek external options.”

The offering is designed to complement and expand on the existing TEI-sponsored investment platform, which includes a range of diversified real estate funds (designed for tax-advantaged income and growth), short-term debt offerings and custom 1031 exchanges into single assets.

“This open-ended fund offers a versatile alternative to traditional options such as money market or savings accounts and broadens the

scope for investors while enabling TEI to leverage a newly established private credit line,” said Alexander Anderson, senior director of TEI.

For those investors seeking to participate and diversify their portfolios, TEI is currently offering an introductory rate of 8% annualized on a pro-rate basis until the end of 2024. Beginning in January 2025, the rate will convert to a floating rate that adjusts on a quarterly basis against the three-month U.S. Treasury Bill, in addition to 150 basis points (1.50%). The minimum investment amount is $25,000, and investors will have the option to redeem their earnings after the first full calendar quarter.

Photo courtesy of MillerKnoll

ANNUAL GOLF OUTING

OC TOBER 7, 2024

Itinerary

8:30 AM

Arrival and Registration

9:00 AM

Breakfast/Brunch

11:00 AM

Call to Carts

11:15 AM (SHARP)

Shotgun S tart

5:00-6:00 PM

Hors D’oeuvres and Cocktails

6:00-7:00 PM

Dinner and Presentation of Golf Winners and Honorees

Tickets

GOLF

$850 per person

$3,400 per foursome DINNER & COCKTAILS ONLY

$300 per person

Join us for the National Realty Club Foundation golf outing at the lovely Fresh Meadow Country Club in Lake Success, New York for a great day of golf, food, and networking. The National Realty Club was founded 76 years ago by Harry Helmsley. Currently leading the charge has been Jeffrey Mann with the help of Robert Romanoff, Bob Knakal, Jamiee Nardiello, Gregg Schenker, Orin Wilf, Dean Palin, Jay Neveloff, Lou Switzer, Steven Sladkus, Michael Romer, Aaron Boyajian, and others. We are unifying individuals who can gain from one another as well as having a charitable arm to raise money to support NYC in areas that need help.

For more information, please contact penny@nationalrealtyclub.org

Metropolitan Commercial Bank | Quarter Century Anniversary A Solid Past, A Brighter Future: We’re Ready for What’s Next

By Mark R. DeFazio Founder, President and CEO Metropolitan Commercial Bank

How It All Began:

The Birth of a Bank with a Vision

In the late 1990s, I was thriving as a senior lender at Israel Discount Bank. When the opportunity to lead a de novo bank arose, I wasn’t sure if I was ready for the challenge. However, with the unwavering support of my professional network and family, I decided to take the leap, a decision that would shape not only my future but also the future of Metropolitan Commercial Bank in ways I could never have imagined.

Metropolitan National Bank opened its doors in June 1999, starting from humble beginnings. Our first office was a sublet space at Two Park Ave. in New York City. In just 800 square feet, a small but determined team of three managed $8 million in assets. From the very beginning, our focus was clear: to provide personalized service to high-net-worth individuals with a global perspective. Our commitment quickly paid off, and after just one year of operations, we were profitable and had significantly grown our assets.

The Early Years: Building a Foundation

In May 2003, we relocated to the fourth floor of 99 Park Ave., occupying approximately 15,500 square feet. This move marked the beginning of our expansion. In 2005, we opened our first full-service Banking Center on the ground floor of 99 Park Ave., setting the stage for future growth. By 2019, we had established five more full-service Banking Centers: three in Manhattan, one in Boro Park, Brooklyn and one in Great Neck on Long Island, all designed with a distinctive style that reflected our brand.

During these formative years, we achieved several key milestones:

• Acquisition and Expansion: We acquired, expanded and eventually sold CashZone, an ATM check cashing business, further broadening our digital banking experience.

• Rebranding: We rebranded as Metropolitan Commercial Bank, becoming a statechartered bank and embracing our new identity as “The Entrepreneurial Bank.”

• Growth: By March 31, 2016, we had surpassed $1 billion in assets, a significant milestone in our journey.

• Going Public: On November 8, 2017, we became a public company, listing on the New York Stock Exchange under the ticker MCB.

• Ongoing Success: By December 31, 2019, our assets had grown to $3.36 billion, reflecting the strength and stability of our Bank.

Addressing the Need for Space: Strategic Growth and Modernization

In 2020, as part of our strategic plan, we expanded our headquarters at 99 Park Ave. by moving from our traditional fourth-floor banking offices to a modern, digitally equipped space spanning 50,000 square feet on the 12th and 13th floors.

Looking ahead, our commitment to growth continues with the planned renovation of the 11th floor in 2024, ensuring that our headquarters remains at the forefront of modern banking.

November 8, 2017. Members of Team Metropolitan Commercial Bank gather outside the NYSE, ready for the Opening Bell ceremony.

November 8, 2017. Mark DeFazio, founder, president and CEO, rings the NYSE Opening Bell, joined by members of Team Metropolitan Commercial

Metropolitan Commercial Bank Headquarters at 99 Park Ave., Manhattan. | Above: The 12th floor reception area and its connecting stairway to the 13th floor. Below: Left: Conference room designed to accommodate 18 at the table. Center: One of two state-of-the-art cafeterias. Right: Board Room that seats 22 at the table and provides cushioned bench seating for 18.

Re-imagining: Modern Banking Centers

• Garment District and Times Square Banking Center: In 2022, we relocated our Garment District Banking Center to a prime location at West 40th Street and Broadway. The new space offers greater convenience and reflects our commitment to creating modern banking environments.

• Boro Park Banking Center: On July 14, 2022, we acquired a 10,000-square-foot commercial building directly across from our existing Banking Center on 13th Avenue in Boro Park and developed a spectacular new Banking Center at 5102 13th Ave. The new facility exemplifies our dedication to providing top-tier modern banking services in every community we serve.

• Park Avenue Banking Center: In September 2024, we began renovating our Park Avenue Banking Center, with completion scheduled for Spring 2025.

Commitment to Community: A Legacy of Service

At Metropolitan Commercial Bank, our success is measured not just by our financial achievements but by the impact we have on the communities we serve. Over the past 25 years, we’ve dedicated countless hours and resources to various local, national and international organizations that do good. We are proud of the difference we’ve made, and we remain committed to giving back.

Recognition and Rewards: Hard Work Pays Off

Our team’s dedication to our clients and communities has not gone unnoticed. Over the years, we have received numerous accolades that reflect our commitment to excellence:

• Fortune’s 100 Fastest-Growing Companies (2021): Recognized for our rapid and sustainable growth.

• Top 50 Community Bank (S&P Global, 2021): Highlighting our performance among community banks.

• Piper Sandler Sm-All Stars (Class of 2022): An elite group recognized for outstanding financial performance.

• S&P Global Market Intelligence Rankings (2022): Ranked ninth among community banks with assets between $3 billion and $10 billion, and eighth in the Northeast region.

• ICBA Top Ten Loan Producers (20232024): Recognized for our success in loan production across various categories.

• Newsweek’s Best Regional Banks (2024): A testament to our continued excellence in banking.

Additionally, in 2024, we proudly became the only middle-market commercial bank headquartered in New York City.

Joseph Schaefer, Long Island University.

Metropolitan Commercial Bank Garment District and Times Square Banking Center Located at 1431 Broadway in Manhattan, opened in September 2022.

Metropolitan Commercial Bank Boro Park Banking Center. Situated at 5102 13th Ave. in Brooklyn’s Boro Park, opened in October 2023.

99 Park Avenue Banking Center Renovations. Began in September 2024, reflecting Metropolitan Commercial Bank’s commitment to modernizing client experiences.

Mark DeFazio, founder, president and CEO of Metropolitan Commercial Bank, proudly holds the Proclamation from The Honorable Eric Adams, Mayor of New York City, declaring November 17, 2022, as “Metropolitan Commercial Bank Day” in recognition of the Bank’s contributions to the community.

Looking Forward:

The Future of Modern Banking Metropolitan Commercial Bank is embarking on a comprehensive, enterprise-wide technology upgrade, described as “Modern Banking in Motion,” through 2025. This initiative is designed to modernize banking capabilities, elevate user experience and enhance security.

Key Initiatives:

• Revamped Website: Launched in September 2024, featuring easier navigation and a fresh design.

• New Digital Services: Simplified online account opening and new platforms for consumer and commercial clients.

• Upgraded Payments Platform: Faster, easier money transfers.

• Enhanced Security: Advanced fraud protection and risk management tools.

Thank You All

On August 29, 2024, I had the honor of ringing the Opening Bell at the New York Stock Exchange to commemorate our Quarter Century Anniversary, surrounded by colleagues, trustees, family and friends. This momentous occasion marked not just a milestone in our history but a commitment to the road ahead. With our strong foundation, dedicated team, and unwavering focus on innovation, Metropolitan Commercial Bank is poised to lead the next chapter of modern banking. Fortes Fortuna Adiuvat — fortune favors the bold. We are ready to embrace whatever the future holds.

August 29, 2024. Metropolitan Commercial Bank colleagues, trustees, family and friends gather outside the NYSE before the historic Opening Bell.

Seated (from left to right): Dixiana M. Berrios (executive vice president and COO), Mark R. DeFazio (founder, president and CEO) and Daniel F. Dougherty (executive vice president and CFO).

Standing (from left to right): Danny Tommasino (senior vice president and group head, Commercial Lending); Nick Rosenberg (executive vice president and chief business development officer); Fred Erikson (executive vice president and general counsel); Scott Lublin (executive vice president and chief lending officer); Laura Capra (executive vice president aand head of retail banking); Gregory Gaare (senior vice president and chief risk officer); Norman Scott (senior vice president and chief credit officer); David Bonnar (senior vice president, chief accounting officer and corporate controller) and Mark Wancier (senior vice president and head of Commercial Real Estate)

August 29, 2024. Mark DeFazio, founder, president and CEO, rings the NYSE Opening Bell, joined by enthusiastic members of Team Metropolitan Commercial Bank.

Remastered Transamerica Pyramid Center Reopens Following $1 Billion Investment

BY DEBRA HAZEL

Is it the beginning of the rebirth of San Francisco’s office market? The September reopening of the Transamerica Pyramid featured developers, officials, dining and the unveiling of a 50-year-old time capsule. But it also comes at a time when the office market remains challenged, especially in the city.

“The Transamerica Pyramid has always been ahead of its time, and now it always will be. The remastering of this historic block will mark a new chapter for this iconic landmark, ensuring it remains a vibrant hub for creativity, business and community,” stated Michael Shvo, chairman and CEO of luxury developer Shvo, which undertook a $1 billion redevelopment of the property in partnership with architect Norman Foster and Foster + Partners.

The Transamerica Pyramid opened in 1972 at 600 Montgomery St., the gateway to the city’s Financial District. Designed by William L. Pereira & Associates, the quartz-studded concrete tower has over 3,000 windows — at 853 feet tall, it is currently the tallest pyramid structure on the planet. In 2020 the building was sold for the first time in its history to Shvo and Deutsche Finance America for $650 million, the United States’ largest commercial transaction to occur amid the COVID-19 pandemic.

The complex covers an entire city block and includes three buildings totaling approximately 750,000 square feet — the iconic pyramid-shaped tower, the office building at 505 Sansome St. and a site set for approximately 100,000 square feet of office redevelopment at 545 Sansome St. Anchoring the three buildings is the Redwood Park, which features mature redwood trees shading public open space.

The team reimagined the Pyramid and two adjacent buildings at Two and Three Transamerica with a hotel-like aesthetic that welcomes tenants and guests with luxury amenities and expanded public spaces. Features include a renovated grand lobby, exclusive top-floor bar, sky lounge, gym, spa, conference spaces and more. Transamerica Redwood Park has also been restored and expanded.

“We are delighted to see Transamerica Pyramid

Center entering a new era,” said Foster, founder and executive chairman, Foster + Partners. “Our transformation honors the building’s history while creating interior spaces that are world class and outdoor public gardens that reconnect with the city.”

The reopening also marked the launch of Pyramid Arts, a new series of public exhibitions celebrating innovation in the arts and sciences. The first installations, both curated by Foster, will be on view to the public from September 12, 2024–January 28, 2025: The Vertical City, a selection of his architectural achievements focused on skyscrapers, and Les Lalanne at Transamerica Redwood Park, an outdoor exhibition honoring the work of iconic French artists Claude and François-Xavier Lalanne.

The Pyramid’s spire was re-lit for the first time with over 1,300 feet of newly installed LED lights as part of a comprehensive lighting design — from the base to the spire, both interior and exterior — by global firm L’Observatoire International.

Despite all the galas, San Francisco’s downtown office market remains challenged, most recently continuing a streak of eleven consecutive quarters of negative net absorption, said Kidder Matthews’ 2Q 2024 San Francisco Office Market Report. Total office vacancy rose to 30.8% in the second quarter, up 260 basis points from the first quarter of the year.

“While trends are still down, they are doubtless starting to change, with Q2 negative net absorption the second lowest since Q1 2022 and the fifth lowest in the post-COVID-19 era,” the report said. “Overall, the picture of the market becomes clearer: long-term work-from-home trends have stabilized, most of the city’s office tenants with a desire to have already rightsized, and owners of non-performing assets have begun to restructure their financing, incentivizing them to do business again.”

The total number of leases increased quarter over quarter — but quality counts. Leasing activity throughout the first half of the year grew year-overyear by 24.6% to 3,251,131 square feet, with Class A and B office buildings accounting for approximately

52.9% and 42.2% of total leasing activity, respectively, Kidder Matthews reported.

The same is true for rents, with Class A buildings with top amenities can command $65 per square foot and more, while Class B and C buildings are asking $41.20 per square foot and $33.40 per square foot, respectively.

Tech firms are continuing to adjust their labor needs and, thus real estate, said Newmark’s San Francisco Office Market Overview for the second quarter of 2024. The information sector saw negative employment growth year-over-year, declining 10.1%. But AI jobs are on the rise.

In addition, landlords are now facing some nearterm decisions that could signal a turnaround, according to Kidder Matthews.

“Years of large vacancies coupled with a bottoming out of both the office and retail markets will drive many properties back into the hands of lenders, force debt restructuring, and/or drive many into discounted sales of their underperforming assets,” the report said. “This reset should not just drive up sales activity but will increase landlord willingness to lease their product at current market rates, thus driving up leasing activity and bringing tenants back into the market. Secondly, looking forward there are limited deliveries scheduled for San Francisco in the near term. This consistency in supply will help to bring about a return to positive net absorption and will help to stem the decline in rental rates.”

And the newly reinvented Transamerica complex is now there to spearhead the rebirth.

“The Transamerica Pyramid is more than just a building, it’s part of our story as a city committed to rebuilding and reinventing itself, and a symbol of San Francisco’s spirit,” said San Francisco Mayor London Breed. “This renovation not only cements an iconic building to continue as a landmark site for generations to come, but it also is creating a thriving hub for businesses and fostering a vibrant public space for everyone to enjoy. “

Photos by David Lipman

Waking Up to the Value of Balanced WalkUPs

By Debra Hazel

Real estate companies often talk about live/work/play environments — but how valuable are they in urban areas?

As it turns out, the right percentages of all three components are “crucial economic engines,” according to “Reimagining Cities—Disrupting the Urban Doom Loop,” a report from Cushman & Wakefield. While the pandemic had a significant impact on Walkable Urban Places (WalkUPs), early fears that it would destroy urban living for the foreseeable future were unfounded, the report said.

“The key finding of this research is that an optimal real estate product portfolio mix exists, and cities, particularly downtowns, must rebalance their portfolios accordingly. This optimization would generate the highest real estate valuation per square foot and GDP for WalkUPs,” the report said.

The report studied data on multifamily, for-sale housing, office, retail, industrial, cultural, sports and events facilities, convention centers, government buildings and universities, among other uses. Cushman studied 15 cities: gateway cities Boston, Chicago, Los Angeles, Manhattan, San Francisco and Washington, D.C.; large secondary cities Atlanta, Dallas, Miami, Philadelphia and Seattle and moderate secondary cities Austin, Denver, Phoenix and Raleigh. In those, they identified 208 WalkUPs.

The flight from urban areas to the suburbs during the pandemic had been expected to kick off a doom loop, with a negative situation triggering others and an overall decline. These loops had happened before, especially in the post-World War II era that gave rise to suburban living.

“Cities in the U.S. began a steep population decline starting around 1950. Of the 15 cities we examined, 39% of the metropolitan areas’ population lived in these cities in 1950,” the report observed. “By the end of the 20th century, the ratio was 18%.”

That trend had begun to reverse with the dawn of the 21st century, with cities seeing residents return. That 18% share of the population in 2000 had grown to 21% by 2019. Then came COVID-19 and renewed fears of a doom loop as populations moved to less densely populated areas to avoid infection. But Cushman found that as the pandemic waned, people returned to the cities.

“In the 15 cities studied, population losses were for two years only (2020-2021) and have reversed, increasing in 2022 and 2023,” the report said. “So, while visitor and (non-resident) employee return to WalkUPs is still below 2019 levels, there has been more than a complete recovery in residents across cities and WalkUPs.”

That is critical, as the built environment (real estate and infrastructure) is the largest asset class in the U.S. economy and WalkUPs are their primary economic driver. WalkUps, the report notes, command rent and price premiums and have been gaining market share as pedestrian-oriented mixed-use projects

continue to be built and expand. WalkUPs comprised 3% of the landmass in the cities, but represented 26% of the real estate valuation, 37% of the city budget tax revenues and 57% of the cities’ GDP.

Downtown WalkUPs were more work-centric with nearly 70% of value, while other WalkUPs (downtown adjacent, urban commercial and urban university) were more balanced. Work-dominant areas must increase their allocation of space to Live (currently only 16%) and Play (15%) spaces to create a more balanced and sustainable real estate mix, the report advised.

The ideal balance consists, on average, of 31% of space dedicated to Live, 42% to Work, and 26% to Play. This split generates the highest real estate value and GDP per acre. Expanding residential and entertainment offerings will create more vibrant, resilient urban environments.

Even with the current work-from-home challenges plaguing the sector, office remains the largest component of WalkUPs’ real estate mix, accounting for the highest share (42%) of the three real estate types.

Downtowns are especially work-centric, but all four WalkUP types need to rebalance, the report said. More housing is needed, especially in Downtown WalkUPs, while workspace should be reduced. And more “play” spaces should be built in all types. And that requires teamwork.

“Turning around a walkable urban doom loop requires strong civic leadership and effective place management,” the report observed. “While public sector support is crucial, redevelopment efforts are often led by the private sector in terms of investment dollars and leadership.”

There are multiple options for how cities can facilitate this rebalancing, Cushman & Wakefield said. Strategies can include expediting the entitlement process, moving toward form-based codes and offering incentives to accelerate adaptive reuse of space dedicated to work. For example, New York City converted several vacant office buildings into residential after 9/11, and both the city and state streamlined zoning and permitting processes and provided tax incentives after the attack to keep Lower Manhattan active. The private sector, meanwhile, has focused on revitalizing downtown Detroit in recent years.

“Our study is really a call to action,” said Kevin Thorpe, Cushman & Wakefield’s global chief economist. “Some of our great cities and downtowns are at risk of entering into an urban doom loop, which is a very difficult cycle to break. The bottom line is a portion of the real estate most cities have today made sense for the economy 20 years ago, pre-hybrid work, but do not make sense for the economy today. Our downtowns and central cities are transforming with the knowledge economy, but also with the experience economy. Cities are increasingly about experience and consumption, and not just knowledge sector production. From this study, we now have the data, we know where the problems are and we know what the solutions are. Doom loops are not inevitable, but the time to take action is now.”

Building Spec Industrial in Texas

Creating a cross-border logistics facility needs a company that can cross between design and construction — so Arco Design/Build’s groundbreaking on a 236,693-square-foot speculative industrial facility in Laredo, Texas, shows the latest trends in the sector.

Developed by Alliance Industrial Company in partnership with Realterm, the new facility will address the increasing demand for logistics facilities in a crucial U.S.-Mexico trade corridor, while it typifies current trends in industrial development, including the need for smaller factilities.

“We are excited to initiate our first project with the Alliance Industrial team in Laredo, a city rapidly emerging as a key center for cross-border logistics,” said John Atcheson, president of Arco Design/Build Houston and Salt Lake City. “Our partnership with Alliance Industrial and Realterm on this speculative project underscores our commitment to delivering high-quality industrial

spaces that cater to the evolving market needs. We look forward to contributing to Laredo’s ongoing growth.”

The Port of Laredo was the busiest commercial port among all U.S. sea, air and land ports in 2023, said CBRE in its “Texas Industrial Figures Q2 2024” report. From January through May of this year, U.S./Mexico exports crossing through Laredo were $53.8 billion, and imports were $81.3 billion, constituting 39% of U.S.-Mexico trade.

“Alliance is excited to kick off our first project in Laredo. We are bullish on the nearshoring trend occurring along the Texas border as companies continue to realign their supply chains,” said Andrew Peeples, director at Alliance Industrial Company. “The major infrastructure investments Laredo is making ensures leasing activity will remain robust, and we believe the market has a long runway of continued growth for cross-border logistics assets like this one.”

The facility will encompass a 236,693-square-foot rear-load concrete tilt-wall warehouse with a 32-foot clear height, 50 dock-high loading positions and 190 trailer parking spaces. Designed to enhance logistics efficiency, particularly for cross-border trade, the facility is expected to be complete by summer 2025.

As a speculative development, this facility offers potential tenants the advantage of a state-of-the-art logistics space, eliminating the lengthy wait times associated with custom-build projects and positioning Laredo to capitalize quickly on emerging trade opportunities.

It also fulfills a growing demand for smaller spaces after a boom in industrial building throughout the decade that is just now subsiding.

“As occupiers built out their supply chains throughout 2021 and 2022, we saw robust demand, specifically within spaces greater than 500,000 square feet,” said Cushman & Wakefield in its report “Industrial Construction Pipeline Resets to Normal After Four Year Boom”. “However, in 2023, demand began to shift to smaller leases (less than 300,000 square feet), which led developers to focus their new developments on smaller industrial facilities. Nearly half of the square footage delivered from 2022 to 2023 was within product greater than 500,000 square feet. Now, the under-construction pipeline has seen over 60% of the total, concentrated in buildings under that size threshold — with the 100,000-300,000-square foot range accounting for 34.4% of the pipeline.”

Since 2020, the CBRE report noted, 1.8 billion of industrial product has been delivered in the U.S., more than the construction total of the previous decade. Even though tenant demand has slowed, they largely are looking for new, modern facilities. Over the past four years, 54% of new leasing transactions greater than 50,000 square feet occurred within facilities built since 2020.

Nationwide, 379 million square feet of industrial space was under construction, a significant drop from year-ago levels of nearly 595 million square feet, said CommercialEdge’s “U.S. National Industrial Report August 2024” report.

Arco’s design-build approach is particularly advantageous for speculative projects like this one, integrating design and construction processes under a single contract, the company said. This method allows for greater flexibility to meet potential tenants’ needs while maintaining cost effectiveness and speed of delivery. OneFourTwo Design Group, Arco’s integrated partner for architecture and structural components, ensures coordination between design and construction phases, which is crucial for the successful execution of this project.

The facility is set to enhance Laredo’s economic landscape by boosting trade efficiency, creating jobs and reinforcing the city’s role as a pivotal logistics hub. With its strategic location and advanced features, the project is well-positioned to meet the growing demand for cross-border logistics, contributing to the region’s long-term growth, Arco noted.

BLUEPRINT 2024

Practicality, Regulation Pushing Investment in Proptech

At first, real estate companies were implementing new technologies — especially those related to conserving energy — because it was the right thing to do to save the planet. Then, it became the practical thing to do as they sought ever more ways to save money. Now, however, conserving energy and resources is becoming the required thing to do.

“The Inflation Reduction Act was the most game-changing for climate change in history,” said Simon Brandler, vice president of policy at Brimstone, a climate tech firm focused on decarbonization, at the Fifth Wall Climate Summit held in conjunction with BluePrint 2024, a proptech conference held in September in Las Vegas. The benefits transcended politics, especially given that Republican states benefited from the infrastructure spending it authorized, he added.

Unlike earlier in this decade, when proptech’s potential was more theoretical and venture capital flowed freely, investors and users today want results. It’s no longer enough to be “cool”.

Brad Pilgrim, co-founder of HVAC optimizing service Parity noted that pragmatism is now the key. For example, it took 10 years for LEED to really take hold, he said in an interview at Blueprint.

And for users, it’s about marketing the programs so that they’re appealing.

“Sustainability is the broccoli in the pasta sauce,” said Arie Barendrecht, chairman and founder of Wiredscore. “It’s good it’s there, but we really care about the pasta sauce.”

“People want to live in a LEED-certified building, but they don’t care what level of LEED it is,” said Nick Durst, senior analyst at The Durst Organization, at the Fifth Wall summit. “A few products out there are sustainability related, but they are also a tenant service. That’s where you find the demand. “It’s about [offering} things that are sustainable but also have that user delight.”

Smart thermostats save energy, but they can also keep multifamily units more comfortable, Durst observed.

“People buy Teslas because they’re better cars — and they’re good for the climate,” said Lee Hoffman of Runwise.

Many jurisdictions are now implementing laws to require conservation, with New York City’s Local Law 97 perhaps the ultimate example, Hoffman said added.

“But in the vast majority of cases, this is what we should have been doing all along,” he noted.

The opportunity is there, Hoffman continued, especially in old cities like New York, which has stock built for a very different era. Many buildings boast windows that can remain open because they were designed for the last pandemic, but waste energy now.

One problem: “They regulated solutions, but not the outcomes,” said Robert Bernard, chief sustainability officer of CBRE. Since the passage of Local Law 97, tenants and landlord have been debating who is responsible for implementing the necessary changes and technologies for compliance, he said, with CBRE trying to

broker between the two.

Increasingly, municipalities are legislating conservation, with cities including Baltimore, Boston, Denver, and Washington D.C. having strong programs in place, Parity’s Pilgrim added at an interview during the conference.

“People aren’t talking about tech as much,” he said. “They’re talking about costs.”

To do that, the hotel sector is focused on renewable energy. The conference’s location was a prime example of using tech to conserve both funds and resources, said Henry Shields, vice president of research and analytics for MGM Resorts International. Nevada received only 1.8% of the water allocated to the seven states that share the Coloado Rriver, and uses just 62% of the amount it is allocated.

“It comes down to a relatively straightforward concept — operate your resorts differently and do more with less,” said Shields. Already operating vast solar arrays to reduce energy, the company plans to cut greenhouse gas emissions 50% from 2019 levels by 2030. “Because we operate on such a large scale, we’ve been able to make material impacts to the local system here.”

Not all technology discussed at Blueprint was focused on the environment. Others focused on creating greater connections and understanding of existing data. During the conference, Measurabl announced ESGx Benchmarks, a free new report that provides real estate owners, operators, investors and lenders global insight into sustainability performance based on data from 110,000 properties in 93 countries (see story this issue)

“One of the most important things we can have is a ‘green’ comp,” said Matt Ellis, Measurabl CEO.

And COVID-19 pushed the need for data.

“COVID was fortuitous for our business,” acknowledged Jonas Bordo, CEO and co-founder of Dwellsy, a comprehensive database of rental homes that allows renters to conduct customized searches without pay-to-play listings and provides managers the ability to list their vacant units for free. The data it compiles can be invaluable for researchers and others needing valid comparables on amenities and rents. “It created an opportunity for property managers, who were concerned about data and market.”

Creating more affordable housing, with a dash of sustainability, is the basis for Backflip, a real estate and fintech platform for fixand-flip investors that CEO and Co-founder Josh Ernst calls a cross between Zillow and Shopify. The platform uses advanced algorithms to provide investors with the data they need to value a property as-is, and then after it is repaired.

Most housing was built in the 1950s and 1960s and has become obsolete. Bringing them to current standards would go a long way toward fixing a severe housing shortage that has driven prices in many markets beyond affordability.

“It all starts and ends with what the customer needs,” Ernst said. “And we need to take what’s already there.”

Photos

First Residents Move into 151 Bay St. in Jersey City

Toll Brothers Inc., through its Toll Brothers City Living division, and Sculptor Real Estate, the real estate business of Sculptor Capital Management Inc., have completed construction and begun closings at 151 Bay St. in downtown Jersey City, New Jersey. Located in the Powerhouse Arts District, 151 Bay St. rises 34 stories and offers 259 luxury condominiums with a full complement of amenities.

“We are excited to welcome our first homeowners to their new residences and thrilled with the positive response we have received from the community,” said David Von Spreckelsen, president of Toll Brothers City Living.

“The exceptional amenities, finishes and location of 151 Bay St. have been in great demand among homebuyers. Sales have been brisk since opening our doors and we are now over 75% sold.”

Designed by SLCE with interiors by Bernheimer Architecture, 151 Bay St. is the third and final building surrounding the newly created Provost Square, a pedestrian-friendly plaza on Provost Street between Morgan and Bay Streets. This public plaza has defined the community with its restored cobblestone and rail line, seating and landscaping and performing arts theater.

Offering views of Manhattan, the Statue of Liberty and New York Harbor, 151 Bay St. features studio to three-bedroom homes with open-plan living areas, white oak floors and oversized floor-to-ceiling windows. Open kitchens are outfitted with custom Italian walnut and dove gray cabinetry, quartz countertops and Bosch and Thermador appliances. All the residences have vented washer and dryers. For those looking for open and airy space, The Loft Collection is a select group of residences that honor the industrial history of the neighborhood with varying ceiling heights from 11 to 13 feet.

Primary and secondary bathrooms include custom Italian vanities and porcelain tile walls, while the powder room features a white ash custom Italian vanity. Porcelain floor tiles, quartz countertops and Kohler fixtures create complementing levels of texture and depth in the powder rooms.

Amenities include the 34th floor Sky Lounge with sweeping cityscape and waterfront vistas. A south-facing rooftop terrace affords one of the best places to watch the setting sun and bright city lights.

The eighth floor houses the fitness center with a yoga room and an expansive residents’ lounge with a kitchen that opens out onto a sprawling sundeck with a gas fire pit and grills, seating for dining and a pool with chaise lounges. Residents will enjoy the lounge’s kitchen, fully outfitted with professional quality appliances, along with a dining room and media lounge. Additional amenities include a game lounge with arcade games, children’s playroom, dog run and spa, onsite parking and a 24-hour attended lobby.

Residents have many options for entertainment just outside their door. The Historic Downtown Jersey City Farmers’ Market on Grove Street is a neighborhood favorite, as is Groove on Grove, a free concert series at the Grove Street Plaza. The vibrant Newark Avenue pedestrian plaza serves as a hub for the thriving arts and cultural scene and is home to dozens of restaurants and shops.

Residences at 151 Bay St. begin in the low $800,000s.

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Condo-Co-op Helpline: Trends in New York City

As 2024 dwindles down, we look forward to the upcoming year and wonder what to expect in 2025 for residential real estate in New York City, particularly for cooperative and condominium apartments. Looking ahead, 2025 may be a hard year for residential cooperative and condominium owners and managers.

There appear to be five trends that are emerging on the horizon: 1) pressure, including fines and taxes, from the government at all levels, on residential buildings to reduce their respective carbon footprints; 2) rising property taxes; 3) reduction in public services; 4) possible erosion of the city-wide income tax base and 5) the need for additional affordable housing and associated services, including schools, parks and libraries.

Local Law 97 of 2019 is now impacting residential cooperatives and condominiums. The property tax penalties for “excess” energy use are becoming real. Buildings are looking at significant property tax increases over the next three years. Recently, I read a report on an Upper East Side building that suggests the building would absorb an additional half million dollars in property taxes during that period. Nothing could be more counterproductive. These buildings need to assess unit owners for energy efficiency improvements; instead, the money is going directly to the government.

Fines and penalties for energy inefficiency are an addition to the anticipated property tax increases for cooperative and condominium buildings, most of which are already over-taxed. This is due to the expected drop in value for commercial properties, particularly for “B” and “C” class commercial buildings. The city will need to make up the lost revenues and, historically, Manhattan condominiums and cooperative apartments have been targeted.

The pressure may be amplified for pre-1974 buildings, as they will likely see significant tax increases because of the current differential treatment of pre- and post1974 cooperative and condominium buildings. The former are taxed at a reduced rate based on the use of rent-controlled units for comparables. At the same time, the latter has a market rate of stabilized units for comparison, leading to significantly higher property taxes and disparate impacts in minority neighborhoods.

Over the last two years, city services, including recreational facilities and libraries, have been reduced to

allocate money to pay for the mass influx of undocumented immigrants. Much as the city council would like to reverse this trend, there is simply no money, and property tax revenues are likely to fall for the reasons noted above.

The Citizen’s Budget Commission is warning that the service reductions may motivate some to relocate out of the city. Many businesses now allow workers to report to offices only two to three days per week, so relocating to distant locations with lower taxes becomes easier. Many young families also leave the city for distant suburbs with better public schools and services.

The best outcome would be for the New York State Legislature to craft a new property tax system. Single-family homeowners pay a fraction of the property tax paid by cooperative and condominium unit owners for properties with similar values. Moreover, cooperative and condominium unit owners do not receive city refuse or recycling services.

Two solutions appear obvious. The first is to create one tax rate and apply it to all residential property based on fair market value. This would include not valuing cooperative and condominium units based on rental values, and simply using sale values. As for the second solution, single-family homes should be charged for refuse and recycling services.

Finally, the city has an overwhelming need for affordable housing, that is, housing for those of moderate incomes, including police officers, firefighters, teachers, public health professionals, librarians and other professionals, many of whom are public sector employees. I hope this will encourage innovation and development, including the repurposing of older and underutilized commercial properties, into housing and community facilities. These facilities could include schools and recreational areas, which are essential for a good quality of life in the city.

For owners and managers of residential cooperatives and condominium units, this is mixed news. The housing shortage should help keep prices stable, but rising costs and property taxes may provide countervailing downward pressures.

Thiscolumnpresentsageneraldiscussion.Thiscolumn doesnotprovidelegaladvice. Pleaseconsultyourattorneyforspecificlegaladvice.

Frank DeLucia Senior Vice President

Hub International Northeast

frank.delucia@hubinternational.com (212)338-2395

Proactive Measures to Avoid Major Structural Issues

Modern building codes and advancements in structural engineering have made buildings safe place to live and work. Yet, like any infrastructure, buildings require ongoing maintenance to ensure long-term stability. If structural damage goes unaddressed, the risk to occupants and the financial implications for building owners can be significant.

Here are five primary actions building owners should take to avoid major structural issues in their buildings:

Annual Inspections by Third-Party Professionals

One of the most crucial steps for building owners is to conduct annual inspections carried out by experienced third-party professionals. These inspections are vital in identifying potential issues that could lead to structural deficiencies or serious damages. A structural engineer should be part of this team, especially when inspecting major structural components like load-bearing walls, beams and foundations.

Inspections should not only focus on routine checks but also on post-event evaluations. Natural events such as earthquakes, hurricanes or heavy snowfall can cause unseen damage. Post-event inspections help catch issues such as blocked drains, roof damage or structural weakening that could worsen if not addressed. For instance, water ponding due to a blocked drain may seem like a minor inconvenience, but it can lead to significant damage or even structural weakening over time.

Concrete Spalling and Crack Monitoring

For owners of high-rise buildings, regular inspections for concrete spalling are particularly important. Spalling occurs when pieces of concrete break off or detach from structural columns, walls or floors, which can be a sign of deeper issues like corrosion of the reinforcing steel. If spalling is detected, building owners should immediately have a structural engineer assess the damage and determine any deterioration.

Additionally, owners should be vigilant in monitoring cracks in walls, especially in newer buildings that may still be settling. While small, superficial cracks can occur naturally, cracks that grow or show signs of spreading indicate more serious problems needing immediate attention. Structural cracks, particularly in load-bearing walls, can compromise the integrity of a building if left unchecked. Owners should ensure that cracks are regularly inspected and, if necessary, repaired before they evolve into more severe issues.

Financial Planning

A key part of any building’s maintenance strategy is financial planning for major improvements and capital expenditures. Many building owners make the mistake of deferring

necessary repairs or upgrades due to budget constraints, but this can lead to bigger problems down the line. Skipping or delaying maintenance can exacerbate small issues, turning them into expensive, complex repairs or, worse, catastrophic structural failures.

For example, failing to repair minor foundation cracks could lead to water infiltration, which might cause severe damage to the foundation over time. By implementing a long-term financial plan that includes allocations for building improvements, owners can stay ahead of potential problems and maintain the integrity of their structures.

Early Risk Identification and Regular Assessments

Another proactive measure is to involve building management and maintenance staff in early risk identification. Building managers should be thoroughly familiar with the structure and conduct regular assessments in addition to formal inspections. Training maintenance staff and leadership to recognize early warning signs of structural damage can prevent serious issues from developing.

This can be as simple as recognizing unusual sounds in the building, detecting changes in the alignment of doors and windows, or noticing new water stains on walls or ceilings. Having a system in place to document these findings ensures that small issues are tracked and not overlooked. This documentation can also help in maintaining a comprehensive record that aids in future inspections and reduces liability risks for both the building and its residents.

Regular Insurance Coverage Reviews

A building’s insurance coverage is an essential component of risk management. Owners should regularly review their insurance policies with a trusted advisor to ensure the building is adequately covered. Many owners, to reduce costs, might cut back on their coverage, but this can leave the building exposed to substantial risks.

It’s crucial to ensure that the insurance coverage matches the current value of the building and the potential risks it faces. In addition to general liability and property insurance, owners should consider additional coverage for specific threats, such as flooding, earthquakes or wind damage, depending on the building’s location. A formal review by an experienced insurance professional will help owners make informed decisions about their insurance needs and ensure comprehensive protection.

By taking these precautions, building owners can protect their investment, safeguard their occupants, and avoid the costly consequences of structural failures.

A MODERN APPROACH TO COMMERCIAL REAL ESTATE,

POWERED BY A CENTURY'S WORTH OF EXPERIENCE.

We would like to take this opportunity to thank the following people:

Our team & staff for their endless dedication and support

Our tenants for their cooperation to keep our buildings safe

Our partners for their trust and confidence in these challenging times

All New Yorkers working tirelessly to keep our city moving

We hope everyone continues to be healthy and safe in 2021.

Kris Kiser

Outdoor Power Equipment Institute

TurfMutt Foundation Equip Expo

1605 King St. Alexandria, VA 22314

turfmutt.com

opei.org

(703)549-7600

TurfMutt’s Tips to Maximize Backyarding Benefits When You Have a Small Yard or No Yard at All

For 15 years, the TurfMutt Foundation has advocated for the care and use of yards, parks and other green spaces. Caring for and spending time in green space is good for people, pets and the planet. Studies have shown that spending just a few minutes a day in nature elevates moods, reduces stress and improves physical health.

Backyarding — the practice of taking everyday activities like entertaining, dining, working and relaxing into the green space around us — is the best way to capture the amazing benefits of the green space around us.

But how do those who live in urban areas where they have a smaller yard (or no yard at all) reap the benefits of backyarding?

Thanks to community parks, neighborhood green space and even dog parks, backyarding is available to everyone, even in big cities. It simply takes a little planning and adopting what the TurfMutt Foundation refers to as a “master backyarder” mindset.

This is terrific news since a recent survey conducted for the TurfMutt Foundation by The Harris Poll indicates that backyarding is increasingly important to Americans.

More than three-quarters of Americans who have a yard (76%) say the family yard space is one of the most important parts of their home, according to the poll. Additionally, nearly a quarter of Americans who have a yard (24%) say they spend more time in their yards now than before the pandemic.

The TurfMutt Foundation offers this advice for getting outside and enjoying green space when you have a small yard … or no yard at all.

Enjoy community green space. Community parks and public green spaces are great equalizers. They promote physical health and boost mental well-being. In fact, people who visited urban parks for just 21 minutes showed a reduction in cortisol (stress hormone) levels and reported increased overall well-being, according to numerous studeies, including one published in 2019 in “Frontiers in Psychology.”

Some ideas: tap into the power of parks by taking

your kids to one for a study session or to practice their preferred sport. Take a family walk with the dog through the community green space at the end of your road. Plan a doggie playdate at the local dog park.

Plant with purpose. Plan carefully and creatively to utilize every square inch of your home’s outdoor real estate in support of your lifestyle.

Need a place for your pet to do her business? Plant a small strip of grass. Long to take work outside? Set up a table in an under-utilized side yard (complete with a living landscape backdrop for video calls, of course) that can double as an outdoor dining area. Love to connect with nature? Plant a butterfly bush in a patio pot.

Consult the United States Department of Agriculture Plant Hardiness Zone Map, the standard for gardeners and farmers to know what to plant and when, to determine which plants will do best in your microclimate. This will not only ensure you end up with plants that will thrive with minimal upkeep, but they will also be best for supporting local pollinators on a micro level.

Go vertical. Don’t forget to incorporate vertical space into your planting plans. You can hang flower baskets on your fence or railing. A trellis laced with living vines creates a gorgeous focal point. Green walls are all the rage and utilize blank wall space to create a living plant feature.

Utilize balconies and patios. Even if you don’t have grass or any soil to plant in, you can utilize containers to plant flowers, herbs and even fruit and vegetables that can sit on your patio or balcony. There are also planters available that attach to balcony railings.

Create privacy with plants. Rather than putting up a fence in a small yard, consider a “living fence” of trees or shrubs. It can make your outdoor space feel bigger and has the added benefit of offering support to backyard wildlife and insects. That’s a win/win!

For more information, sign up for Mutt Mail, a monthly e-newsletter with backyarding tips and all the news from the TurfMutt Foundation. To learn more about creating the yard of your dreams, visit turfmutt.com.

LANGSAM PROPERTY SERVICES CORP., AMO

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

Mark Engel, CEO President

Debra Hazel Communications

North Las Vegas, NV debra@debrahazelcommunications. com (201)618-5247

Deb’s Retail Dish & Deals: The Good News Continues

For most of the years I’ve written about retail and retail real estate, this sector has been volatile, to say the least. I’ve seen periods where office was the preferred investment, or industrial or multifamily. It’s rarely been retail. And yet, retail has continued to defy expectations over the last couple of years, as consumers continue to spend.

It’s downright odd.

Of course, the last decade has seen retail construction, pioneered by visionaries who genuinely believed that “If you build it, they will come,” come to a virtual standstill. That’s helped occupancy rates across the board as retailers compete for the best locations.

Last year set a new low for retail construction as only 9.8 million square feet (0.2% of existing inventory) came online, according to Cushman & Wakefield’s U.S. National Shopping Center Marketbeat for Q2 2024, down from an average of 0.6% per year from 2015 to 2019.

Currently, there is only 11.3 million square feet of retail space under construction, so new supply will remain paltry for the next several years. That’s why vacancy remains at 5.3%, the lowest rate in the last two decades.

Of the 81 markets tracked by Cushman & Wakefield, 10 exhibited a vacancy rate of 3.5% or lower, with eight of them located in the South. Nashville, Raleigh-Durham, Sarasota, Miami and Charlotte have the tightest market conditions nationally. Asking rents continue to increase in response to a tight market. Average asking rents in the second quarter were $24.37 per square foot, up 3.8% from a year earlier.

Where are retailers locating? The Sunbelt. The South accounted for more than three-quarters of the quarter-over-quarter improvement, with Dallas/Ft. Worth (a net of 568,000 square feet); Austin, Texas (255,000 square feet) and Jacksonville (257,000 square feet) and Fort Myers/Naples, Florida (215,000 square feet) leading the region.

Elsewhere, Phoenix (up 380,000 square feet), Chicago (310,000 square feet) and New York City Metro (232,000 square feet) recorded the strongest absorption. The West region had negative net absorption for the second consecutive quarter, with less than half of the region’s markets seeing positive demand.

All of this is underpinned by continuing consumer de-

mand. Americans clearly just like to shop.

“Through May, real personal consumption expenditures (which strips out the impact of inflation) rose 2.4% from a year ago, which is slightly stronger than the annual average for 2023,” the report said. “Healthy spending is underpinned by increases in real disposable personal income, which rose 1.1% over the past year.”

There are some concerning issues. After declining in the first quarter, net absorption of space was 1.4 million in the second quarter for a net of 834,000 square feet year to date. That’s a huge drop from the 39 million square feet absorbed in 2022 (following a pandemic-related series of closures), and 18.9 million square feet in 2023.

Shoppers increasingly are using savings and credit cards to finance their purchases. The report observed that the average personal saving rate of 3.7% over the last six months is half that of 2019, credit card usage is at an all-time high and delinquencies are rising.

At some point, those bills will come due. But even there, some categories will benefit.

“Amid higher prices, shoppers have been gravitating toward discount offerings to stretch their budgets further, which helps explain why nearly one-third of planned retail store openings this year are discount retailers,” the report said.

Cushman & Wakefield noted that the report focuses largely on open-air centers. Top-tier malls are doing fine, while older regional centers continue to face challenges and likely require redevelopment.

“Urban retail, especially in gateway office-using districts, is also likely to remain a laggard in certain neighborhoods, but revitalization efforts already underway will be crucial to a full recovery,” the report said. “Despite these challenges, the overarching takeaway is that retail real estate remains in a healthy place.”

Right before press time, the Federal Reserve Board at long last cut interest rates — by a whopping half point — which should drive investment in other sectors, and lower mortgage rates, boosting housing sales. That, of course, boosts retail as homebuyers purchase new furnishings, fixtures and more.

And that’s even more good news as we enter the all-important holiday season.

Debra Hazel

Sean Burke Partner Marcum LLP

Boston, MA sean.burke@marcumllp.com (617)807-5116

Estate Planning for Real Estate Assets: Preparing for the Sunsetting Gift Tax Exclusion in 2025

There are many provisions of the Tax Cuts and Jobs Act sunsetting in 2025. One of the most notable is the lifetime gift tax exemption. As we approach 2025, there is a genuine estate planning opportunity, particularly for those with substantial assets. With a shift on the horizon, proactive measures are necessary to optimize estate planning strategies and ensure a smooth transition of wealth.

Understanding the Gift Tax Exclusion

The gift tax exclusion is a provision that allows individuals to transfer a portion of their wealth without incurring federal gift taxes. As of 2021, due to the Tax Cuts and Jobs Act of 2024, this exclusion was set at $13.61 million per individual. In 2025, there will be another adjustment for inflation, which should be released later this year. This significant threshold has enabled the wealthy to transfer substantial assets, including real estate, without a hefty tax burden.

However, this provision is slated to sunset at the end of 2025. Without new legislation, the exclusion amount will revert to pre-2018 levels — approximately $5 million per individual, adjusted for inflation. This reduction signifies a crucial change in the financial landscape, particularly affecting estate planning for high-value properties.

Implications for Real Estate Owners

The impending reduction in the gift tax exclusion rate has significant implications for real estate owners. Assets that can be transferred tax-free under the current generous exclusion rates may be subject to substantial gift taxes if transferred post-2025.

Key Considerations

Asset Valuation: Real estate appreciates over time. Accurate valuation of real estate assets provides clarity on current worth, which is vital for assessing the potential future tax impact of transfers. In the current economic environment, some real estate values have decreased, creating a good time for gifting.

Gift vs. Inheritance: Gifting real estate now instead of transferring it through inheritance later has different tax consequences. Gifts can reduce the taxable estate size; however, inherited property benefits from a stepped-up basis, which may lower heirs’ capital gains tax liabilities.

Utilizing Trusts: Trusts offer an effective mechanism for managing real estate transfers. They can lock in the current gift tax exclusion rates and ensure structured property management and distribution.

Generation-Skipping Transfers: For those planning to leave assets to grandchildren or beyond, it’s essential to consider that the generation-skipping transfer (GST) tax exemption will also decrease. Coordinating GST planning with gift tax strategies is vital to maximizing tax benefits.

Strategic Actions to Take Before 2025

To take advantage of the current high gift tax exclusion rates before they sunset, real estate owners should consider the following strategic actions:

Early Gifting: Start the process of gifting real estate assets now. Transferring properties before the end of 2025 allows individuals to utilize the higher exclusion amounts and reduce future tax liabilities.

Utilize Family Limited Partnerships (FLPs): FLPs can be a crucial tool in estate planning for real estate. They allow the transfer of ownership interests in real estate to family members, potentially discounting the value of the gifts for tax purposes.

Review and Update Estate Plans: Regularly review estate plans with a financial advisor or estate planning attorney. Ensure these plans incorporate the forthcoming changes to gift tax exclusions and align with long-term financial goals.

Consider Spousal Strategies: Married couples can optimize their gift tax exclusion by each using their individual amounts. Coordinating gifts between spouses effectively doubles the exclusion available for real estate transfers.

The sunsetting of the gift tax exclusion in 2025 marks a significant shift in the estate planning landscape, particularly for real estate assets. By taking proactive steps now, real estate owners can secure current tax benefits and facilitate a smoother wealth transition for future generations. Consulting with your accounting and legal professionals is crucial to navigate these changes and develop a robust estate plan that mitigates tax liabilities and preserves the real estate legacy.

Your Legal Partner for Financial Excellence

RICHARD SIMON, ESQ. | PARTNER CHAIR, BANKING AND FINANCIAL SERVICES

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Ira Meister President and CEO

Matthew Adam Properties, Inc.

375 Pearl Street – 14th Floor New York, NY 10038

212-699-8900

imeister@matthewadam.com

Airbnb – Yes or No?

It’s a tale of two cities: the one we love to travel to and the other where we live. In the former, many opt to stay in an Airbnb, usually saving money and getting more of an experience of the town or city. In the other, where we live, Airbnb has reduced housing stock as owners and tenants rent units for profit.

In a city with a tight housing market and rapidly declining affordable housing, this has become a major issue. There are also questions of safety and maintaining the residents’ desired quality of life — no loud parties, strangers in hallways and visitors who don’t respect the building.

To address this, the City Council passed the ShortTerm Rental Registration Law, also known as Local Law 18. The law also applies to other sites such as Vrbo and booking.com.

Though the law was passed in January 2022, enforcement didn’t begin until Sept. 5, 2023, as Airbnb unsuccessfully challenged it in the courts and implementation needed activation.

The law established new regulations for those with short-term rentals:

• Only one or two guests are permitted regardless of the unit size. Short-term is defined as less than 30 days. Rentals of more than 30 days are not covered by the restrictions.

• The host must be physically present for the term of the rental. In effect, this means that the exclusive use of entire units is no longer allowed throughout New York City.

• Hosts and visitors must leave the doors inside the dwelling unlocked, so occupants can access the entire unit. There are exceptions for bathrooms, bedrooms and private areas when in use.

Owners and tenants of units they want to rent must register with the city’s Office of Special Enforcement (OSE). The application costs $145. If the department approves the filing, it issues a registration number that will appear on the host’s online listing. Airbnb has said that listings without a registration number cannot accept new reservations.

Fines for hosts can range from $100 to $1,000 for a first violation. Guests do not incur penalties for staying at an illegal property.

Buildings can also opt out of permitting short-term rentals by filing with OSE.

The result has that Airbnb short-term listings have plunged, according to a report in the New York Times. From August 2023, a month before the law went into effect, to March 2024, short-term listings plummeted 83% to 3,705 from 22,247. But these figures may be deceptive of the entire picture.

We are seeing owners and residents becoming more creative in listing apartments. There are more underground notices on social media instead of postings on Airbnb or similar sites. This is more prevalent in condominiums where many absentee owners offset costs and profit from short-term rentals.

In some buildings without a doorman, this has created unpleasant situations when a resident confronts someone on a short-term rental. In others, usually smaller buildings, this apparently has not been an issue.

In doorman buildings, we have instructed the doorman/concierge to ask for identification from strangers to see if they are going to a short-term rental.

William D. McCracken, a partner at law firm Moritt Hock & Hamroff LP, reported that most of the co-ops he represents welcome the legislation and have opted out of deciding to prevent short-term rentals.

“Condos also have the option of opting out under Local Law 18, but they should consult their by-laws to confirm that their board has the authority to prevent their unit-owners from entering into short-term rentals,” he said.

He also has noticed renters using alternative venues such as Craigslist and other sites more aggressively, though it is more difficult for prospective guests to find the listings. The situation is different, however, in rental buildings.

“We find that these buildings are not coming to us as attorneys to opt out,” he observed.

New York City is not alone. Other U.S. cities such as Dallas, Miami and Memphis have laws regulating shortterm rentals; so, too, do numerous foreign cities such as Paris, Barcelona and Amsterdam.

While the law is praised by housing proponents, questions arise about the impact on the city’s economy, in particular the again-vibrant tourism industry. Hotel occupancy rates and prices have taken off since the Airbnb legislation and economists wonder if the higher prices to

Adam Levine, P.E.

President

Capitol Fire Sprinkler Co. Inc.

51-51 59th Place Woodside, NY 11377 (718)533-6800

A Critical Discussion on LithiumIon Battery Fires

A recent gathering of fire protection professionals, including firefighters, contractors, engineers and product vendors, took place at the Nassau County Police Academy in Garden City, Long Island, New York. Organized by the National Fire Sprinkler Association (NFSA), the event focused on the growing threat posed by lithium-ion battery fires. The keynote speaker, Lt. John Cassidy of the New York City Fire Department (FDNY), delivered an eye-opening lecture that underscored the urgent need for increased awareness and better safety measures.

Lithium-ion batteries, now ubiquitous in daily life, are found in a wide range of devices and systems. While these batteries are an efficient power source, their potential to overheat, catch fire or even explode is significantly heightened when they are damaged or mishandled during charging or storage.

Lt. Cassidy highlighted the alarming rise in lithium-ion battery fires in New York City. The batteries, which power everything from e-bikes to handheld vacuums and electric vehicles, were responsible for 362 fires in 2023 alone, tragically resulting in 18 fatalities. It is fully anticipated those numbers have already increased in 2024. Cassidy warned that these fires can ignite without warning and spread rapidly, often leaving little time for escape.

As the president of a leading fire safety firm, as well as vice president of the New York Fire Sprinkler Contractor’s Association (NYFSCA), one of the event’s sponsors, the information for me was both startling and cautionary.

Lithium-ion batteries store a significant amount of energy in a compact space. When this energy is released uncontrollably, it generates intense heat, which can turn internal components into flammable, toxic gases. Lithium-ion battery fires happen for a variety of reasons, such as physical and electrical damage, exposure to extreme temperatures and product defects. According to the FDNY, city records indicate that more than half of lithium-ion battery failures occurred when the batteries were not even charging.

Many of the more recent problems are the product of unregulated aftermarket chargers, which are

not required to be certified. It is not uncommon for older batteries — even when left unplugged — to overcharge, causing batteries to malfunction, overheat and combust.

Delving into the science behind these perilous fires, the focus now is on the phenomenon of thermal runaway, a process in which the heat generated within a battery cell surpasses the amount of heat that can be dissipated. The resulting fires are notoriously difficult to extinguish and produce highly toxic smoke, making them particularly dangerous. Alarmingly, even after a lithium-ion fire is seemingly extinguished, the batteries can still reignite.

The lieutenant’s message included recommendations for bolstering lithium-ion battery safety. He called for stricter battery certification regulations, enhanced public education on safe battery practices and further research into fire protection methods to prevent thermal propagation, i.e., the chain reaction where a thermal runaway event in one battery cell triggers neighboring cells, potentially causing the entire battery to catch fire.

With the exponential increase in use, it is critically important for all of us to be aware of their presence in our everyday lives and take practical safety measures. For example, when riding on the subway in a car with an e-bike, the best choice is to move to the next car. If witnessing multiple delivery bikes with lithium-ion batteries stored haphazardly inside a restaurant or food delivery kitchen, immediately call the building’s landlord or report it to the FDNY.

Fortunately, New York State has extremely knowledgeable and effective fire prevention departments. Iit is equally essential for insurance companies to play a critical role. By adjusting insurance premiums for building owners and tenants, insurance companies can incentivize adherence to proper safety measures in properties housing lithium-ion products.

As Lt. Cassidy pointed out, “Every little bit counts, but don’t let perfect be the enemy of good.”

In other words, taking practical steps, even if they may not be flawless, is crucial in reducing the risks associated with lithium-ion batteries.

Ilana Preuss Founder and CEO

Recast City

Washington, D.C. ilana@recastcity.com

New York City’s Zoning Overhaul Offers New Way to Fill Vacant Storefronts

In June, the City of New York enacted the largest overhaul of its commercial and manufacturing zoning in 60 years. A key element offers a new way to fill vacant storefronts. It gives blanket zoning approval for small clean production businesses (up to 3,000 square feet each) in all commercial corridors. That’s an opportunity for property owners with vacant storefronts to seize.

Small clean production businesses include small-scale manufacturing businesses, which create products — from hardware to handbags to hot sauce — that are sold in retail shops and online and are thus not solely dependent on foot traffic for revenue. That makes them well-suited to neighborhoods and business districts seeking to revitalize from significant vacancies.

The appeal of small-scale manufacturing businesses is strengthened further by the fact that they often combine production facilities with a retail store and even experiential space for programming. That enables them to play a larger role in the civic life of communities.

Small-scale manufacturers or groups of them can become destinations for local residents and visitors, bringing much-needed economic vitality to neighborhoods and business districts eager for it.

New York City has a long tradition of storefrontdriven destinations in all five boroughs. Some, like SoHo, are world-renowned. By taking advantage of this new zoning overhaul, property owners can introduce small-scale manufacturers individually or as a group with a specific focus.

The challenge, then, is how to do it, because there is one obstacle that must typically be overcome: small-scale manufacturers generally cannot pay the rent that previous storefront occupants may have paid. That’s where property owners should consider not just how to fill the space but how to enable that space to enhance the value of the property.

Small-scale manufacturers — like craft breweries and other food makers, or jewelry and other handmade craft producers — add cachet to a property or neighborhood.

To the extent that they include experiential space, they can further bring people and energy to the area. When they become destinations, they increase an area’s identity and uniqueness. All of this enhances the economic competitiveness and the brand awareness of the real estate upstairs.

Specific steps that property owners can take include the following:

First, consider whether the vacant space could be subdivided to make it more affordable. Sub-dividing not only reduces individual costs but enables the assembly of small-scale manufacturers that provides a broader sense of place and identity.

Second, determine whether there is someone who could identify potential tenants. Is there a group with a particular focus who might come together to fill the space? Small-scale manufacturers often emerge from the culture and heritage of a community, so there may be ways to reinforce that through retail. In that regard, consider engaging a local community organization to envision how small-scale manufacturers could enhance the area.

Third, evaluate ways to reduce the rent or cost of set-up for new or young companies. There may be a municipal program or a community foundation with an interest in economic revitalization that could support build out or subsidize the lease.

Fourth, if making such changes might jeopardize existing underwriting of the property, consider working with local real estate associations to get banks and other mortgage-holders to go along. New York City has the great advantage of having many locally based banks and real estate companies with a long history of working together for the city’s economic prosperity. The mortgage holders have a stake in a property’s success, and they are not helped by vacant spaces.

The zoning overhaul offers new ways to revitalize the city. Small-scale manufacturers should be a major focus of filling vacant storefronts, energizing city streets and restoring economic vitality.

Changing Majors from Science to Law

As education evolves, so must education institutions and their facilities. That’s why C.W. Driver Companies recently completed a $29.3 million renovation at Riverside (California) City College that transformed the former Physical and Life Science Buildings, built in the 1960s, into the new Business, Law and Computer Information Systems Building.

The work involved significant changes to the original incarnation with the demolition of all interior spaces to make room for new classrooms, conference rooms, computer labs, testing centers and a multipurpose room. The 34,055-square-foot building, which took 18 months to complete, will provide instructional and support services to accommodate the program’s growth.

C.W. Driver Companies and 19six Architects were challenged with creating an entirely new interior and joining two buildings while not dramatically altering the footprint. As a result, the school’s original structures on the site (a two-story building with classrooms and laboratories and a four-story service tower that housed a mechanical room, restrooms and storage) received seismic retrofitting in the renovation. The two are now united via an addition on the upper level.

The move created a lobby and main entry, as well as circulation spaces, meet-

ing rooms, an engagement center and an open study area.

On the addition’s lower level, the underside of the existing balcony was enclosed to provide interior access between the two buildings. The renovation also include a large meeting room, courtroom lecturing space, a network operation center, cybersecurity Lab and more computer server room space.

“This is our second project with the Riverside Community College District in the last couple of years. Previously, we worked on the Ben Clark Public Safety Training Center at Moreno Valley College,” said Dave Amundson, project executive at C.W. Driver Companies.

The project is designed to LEED Gold Certifications with multiple updates to the former buildings’ antiquated infrastructure systems.

Located at 4800 Magnolia Ave., Riverside City College offers more than 100 degrees and certificates. The college serves approximately 15,500 full- and part-time students annually.

C.W. Driver Companies collaborated with architecture firm 19six Architect on the project.

Photos by Nadia Geller Designs

A Filipino Take on Art Deco at Belle on Bev

It’s a classic design, with a special flair. Interior design firm Nadia Geller Designs (NGD) has completed the interior design installation at Belle on Bev, a mixed-use multifamily community owned and managed by developer Cityview in Los Angeles’ Historic Filipinotown (HiFi) neighborhood. The detail of the development’s interior design pays homage to the Art Deco movement of the 1920s and 1930s, the popular style when the first wave of Filipino immigrants settled in Los Angeles.

The six-story building, located at 1800 West Beverly Blvd., has 3,500 square feet of ground-level retail space, offers studio-, one- and two-bedroom apartments and features several unique and stylish amenities. A grand player piano is the centerpiece of Belle on Bev’s lobby, set against the geometric patterns found in the surrounding flooring, lighting and decorative room dividers.

While Belle on Bev’s design is a modern take on Art Deco themes, there are also thoughtful nods to the Philippines and its culture. A sunny corner of the lobby is furnished with comfortable wicker seating and decorated with a custom-made mandala by local artist Nicanor Evangelista Jr. Commissioned by NGD, the piece combines several symbols important in Filipino heritage, including the lotus flower, palm fronds, the guiding star and Sampaguita (the national flower of the Philippines).

Once inside, residents can enjoy the community’s spacious clubhouse, which features a towering ceiling with exposed beams and dark gray accent walls. Open shelving is built into the stairs leading to the residents’ remote workspace, CV Works, furnished with bright, modern

workstations and conference areas. For intimate lounging, the community boasts an elegant speakeasy decorated with peacock motifs and metallic light fixtures. NGD selected and procured the lighting, furniture, fixtures and textiles throughout the property. The firm designed the building’s fitness center and yoga space, as well as the roof deck, courtyards and dog wash pet spa.

Belle on Bev also features well-appointed outdoor space, including two rooftop decks which offer scenic views of downtown Los Angeles, as well as a cocktail bar, lounge seating, movie screen, projected art installation, outdoor kitchen with BBQs and pizza oven, wine and whiskey lockers and a media wall. A 30-foot pool and nearby spa area features lounge chairs with umbrellas, a see-through fireplace and day beds, all within a community courtyard.

“Belle on Bev gave us the rare opportunity as interior designers: to go big in our colors, patterns and motifs,” said Nadia Geller, president of NGD. “Art Deco style lends itself to bold and modern looks, and that guided us in the visioning process.”

NGD partnered with other firms during the design and installation process including architecture firm A.C. Martin and WPIC Construction.

This is NGD’s fourth recent project for Cityview and was preceded by Jasper, a 296-unit opportunity zone project near Downtown Los Angeles; The Parker, a 123-unit multifamily project in West Los Angeles and Atrio, a 276-unit value-add renovation in Burbank, California.

Photos courtesy of Central Construction

A New Face at 30 Broad St.

As a building approaches its 100th anniversary, a bit of exterior renewal usually is in order. But in the case of an Art Deco gem, it can take a bit of time.

For nearly two years, Central Construction, a full-service company specializing in exterior building restoration services, has been working on a building-wide façade restoration of the 50-story Art Deco tower at 30 Broad St. The work has encompassed extensive corner and parapet rebuilding, structural steel reinstallations and repairs and select terrace replacements.

“This multi-phase, multi-year project is coming to fruition and we are proud of the accomplishments of our supervisors and crew,” said Michael DiFonzo, president of Central Construction. “Safely bringing the building back to its original luster was a full team effort requiring both skill and patience.”

The office tower opened in 1932 in the heart of the Financial District. Designed by architects Morris and O’Connor and formerly known as the Continental Bank Building, the 476,000-square-foot structure stands approximately 564 feet high and is located next to the New York Stock Exchange, stretching along Broad Street, Exchange Place and New Street.

“We have had the privilege of working with a dedicated group of professionals on this project,” said Andrew Bardolf, principal, Central Construction. “All of us appreciate how much this stately building has been an integral part of our city’s glamorous history. Seen in multiple films over the decades, it was notably called the ‘Larrabee Building’ in the 1954 Oscar-winning 1954 version of ‘Sabrina,’ starring Humphrey Bogart, Audrey Hepburn and William Holden.”

Central Construction worked on the project with building ownership, Tribeca Associates LLC, CBRE Management and building enclosure consultant CANY.

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Ware Malcomb Names Khorram and Reed to Director, Strategic Accounts Roles Executive Changes

International design firm Ware Malcomb announced that Azin Khorram and Lisa Reed have joined the firm as directors, Strategic Accounts. In their roles, Khorram and Reed will focus on building global and national corporate account relationships to support regional leaders.

Khorram and Reed will support Ware Malcomb with expanding its national presence through the firm’s corporate accounts program and working closely with companywide leaders to advance opportunities in all service sectors.

Based in New York, Khorram brings 15 years of experience in architecture and interior design, combining design, project management and business development expertise. Her recent client relations role at a leading international design firm demonstrated her commitment to strategically supporting clients through a consultative, business-forward approach. Previously, she held leadership roles at other large firms focused on interior and architectural design and growth Strategy.

“Azin’s multifaceted background and adeptness in relationship management are qualities that will help expand Ware Malcomb’s global client partnerships,” said Bill Sotomayor, principal, Ware Malcomb. “We are excited to welcome her to the firm.”

Khorram earned her bachelor of architecture degree from the University of Southern California and is LEEDaccredited. She is a CoreNet Women’s Leadership Committee member and an active member of the American Institute of Architects (AIA), IFMA and PWC.

Based in the firm’s Los Angeles office, Reed is a multidisciplined interior designer with 20 years of experience in designing global corporate headquarters and campuses, boutique restaurants and luxury residential projects. She has worked for top-ranked international architecture firms and small-scale design studios.

“Lisa brings a unique skill set to the role — her previous design and leadership experience, coupled with her exceptional communication skills, will allow the firm to engage in new business opportunities across multiple sectors,” said Ted Heisler, vice president, interior architecture and design. “We are thrilled to welcome her to the Ware Malcomb team.”

Reed is NCIDQ-certified, a LEED-accredited professional and a California-certified interior designer. Her design work and thought leadership have been published in Interior Design Magazine and Metropolis and featured on various in-person Dwell Tours.

Reed’s previous clients include A-list Hollywood actors, global technology leaders and award-winning top chefs. She earned her graduate in architecture and interior design from UCLA and holds her Bachelor of Arts from Occidental College, where she graduated summa cum laude.

Ware Malcomb is a full-service design firm providing professional architecture, planning, interior design, civil engineering, branding and building measurement services to corporate, commercial/residential developer and public/ institutional clients throughout the world.

Group PMX Welcomes Brenner as Project Director

Project, program and construction company Group PMX has added Joel Brenner, AIA, as project director. Brenner will lead the planning, execution and delivery of complex commercial projects, strengthening existing partnerships and identifying opportunities for strategic growth.

“The foundation of our ‘One team. Shared success.’ framework relies on collaboration, accountability and precision,” says Michael Giaramita, CEO of Group PMX. “Joel is an adaptable leader with the skill set and experience required to champion the standards we put forward, while respecting the nuance that comes with each project and client partner.”

Bringing nearly 40 years of experience to his new role with Group PMX, Brenner’s portfolio includes mixed-use developments, commercial office buildings and luxury

multifamily residential projects, as well as multi-site migration and consolidation initiatives, across the New York metropolitan area.

Overseeing real estate planning, design and construction from the owner’s side for much of his career, Brenner has managed budgets of up to $2.8 billion for facilities as much as 2.3 million square feet in size, including the construction of the 10-acre platform that serves as the foundation of 30 Hudson Yards.

Prior to joining Group PMX, Brenner held executive leadership positions in real estate portfolio oversight at Global Holdings Management Group, American International Group and Warner Bros. Discovery, in addition to previous supervisory roles with Deloitte, Citigroup and Goldman Sachs.

Photo via Group PMX

Photos courtesy of Ware Malcomb

Photos courtesy of Ware Malcomb

Pastor Promoted to Chief Operating Officer of Time Equities Inc.

International real estate firm Time Equities Inc. has promoted Max Pastor to chief operating officer, effective September 1.

Pastor joined the company in 2002 as a legal intern, and returned to TEI in 2015. In addition to his new role, Pastor will continue to lead a national investment, acquisitions and asset management team. He also serves on TEI’s executive committee and acts as a registered principal of Time Equities Securities LLC (a FINRA-licensed broker dealer).

“This announcement is part of our long-term strategic planning and a result of the significant growth of Time Equities,” said Francis Greenburger, CEO and chairman of TEI. “Max’s passion and commitment to TEI’s success are integral to our future.”

With over two decades of real estate experience, Pastor has been actively engaged in various aspects of the commercial real estate industry, including acquisitions, dispositions, financings, leasing, ground-up development and the structuring of joint ventures and partnerships .

Pastor received his B.A. from The Ohio State University and his J.D. from the Yeshiva University Benjamin N. Cardozo School of Law. He is a member of the New York and Florida bars and holds Series 22, 63 and 39 licenses. He serves on the board of trustees and executive committees of Art Omi, Inc., Art Omi Pavilions @Chatham Inc. and The Francis J. Greenburger Foundation.

TEI’s portfolio includes some 43.5 million square feet of residential, industrial, officeand retail property and 2.8 million square feet in pre-development and development.

Curbio Names Sim Chief Financial Officer

Home repair and improvements platform Curbio has appointed Jeff Sim as chief financial officer.

“Jeff is a seasoned executive leader with a proven track record of building great growth companies and driving impressive financial returns,” said Rick Rudman, CEO of Curbio. “His expertise in finance and organizational development will help Curbio continue on its path to becoming one of the biggest success stories in proptech.”

Curbio is a home repair and improvement source for real estate agents who are getting properties ready to list for

sale. It provides a streamlined and reliable project process designed specifically for the home sales process.

Sim joins Curbio following his role as CFO at Snapfish and District Photo, where he was instrumental in doubling the value of the business through strategic acquisitions, financial restructuring and a comprehensive change management initiative.

He has led over 26 mergers and acquisitions, guiding companies through growth phases and developing global finance and human resources infrastructures.

Multifamily Specialist Conam Hires Raap as Executive Vice President of Property Management

San Diego-based multifamily real estate company Conam has named Gregory Raap as executive vice president of property management.

Raap brings over two decades of leadership experience in the real estate industry, with a proven track record of success in multifamily operations including conventional, affordable and military housing. Conam’s portfolio comprises 60,000-plus units across 26 metropolitan areas in 11 states.

Raap will co-lead Conam’s property management business focused on the conventional housing portfolio, while Wes Daniel, also an executive vice president of property management, will remain focused on the company’s affordable housing portfolio.

A graduate of California State Polytechnic University with a bachelor’s degree in finance, real estate and law, Raap is also a licensed broker in California and Hawaii.

“Greg’s extensive background in multifamily operations combined with his strong leadership skills will help to build on Conam’s successes to date,” said Rob Singh, president and chief executive officer of Conam. “In his new role, Greg will support our company’s mission, goals and culture while helping to expand and develop the conventional housing side of our business.”

Prior to joining Conam, Raap held senior leadership positions at Goldrich Kest, The Hunt Companies and Forest City Enterprises, where he successfully guided multifamily operations which included diverse geographic portfolios.

Photo courtesy of Newmark

Photo via Business Wire

Photo courtesy of TEI

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CHARLES HEYDT

Director of Planning

Dresdner Robin

Charles Heydt, PP, AICP, LEED AP ND, is director of planning at Dresdner Robin, a land-use consultancy firm specializing in urban and suburban design and development.

His diverse planning experience includes land use, redevelopment, sustainability, resiliency and environmental/natural resources for a variety of developments (including industrial, commercial, educational and residential projects). He is often called upon as an expert witness in planning before local and regional boards throughout the Tri-state area.

Throughout his career, Heydt has been involved with the preparation of municipal master plans, redevelopment plans and sustainability plans. He is also experienced in obtaining National Environmental Policy Act (NEPA), EO215 (New Jersey), New York’s State Environmental Quality Review Act (SEQR) and City Environmental Quality Review (CEQR, New York City) compliance. This includes environmental assessments and environmental impact statements.

Heydt is also experienced in the permitting process for freshwater wetlands and flood hazard area permits under U.S. Army Corps of Engineers (USACE), New York State Department of Environmental Conservation (NYSDEC) and New Jersey Department of Environmental Protection (NJDEP). He is a licensed New Jersey Professional Planner (PP) and certified member of the Ameri-

Charles Heydt

can Institute of Certified Planners (AICP).

How long have you been in the industry?

In 2008, I entered into graduate school for planning under a co-op program with the New Jersey Sustainable State Institute. I graduated in 2010 and have been working in the field ever since. By my count, that’s 16 years.

How did you come into the business?

Early in 2008, we experienced the Great Recession and the collapse of the real estate lending markets. I was just completing my undergraduate degree and had an interest in land use economics, but general real estate jobs were scarce.

I looked into careers within land use that were one step removed from real estate financing. I was drawn to the applied theory of urban planning and the idea of trying to make the places we live and work in better for today and tomorrow.

Who inspires you?

The colleagues I work with here at Dresdner Robin, who take on some of the most complicated and challenging projects and achieve results by thinking through each step in the process.

How does land planning differ in urban and suburban environments?

Where do I start? The theories are the same:

• Promote density in the right locations in downtown areas that are served by mass transit.

• Reduce automobile dependency by providing a variety of uses that are accessible by biking and walking.

• Create a living, breathing land use process that is transparent and inclusive.

Urban environments benefit from existing infrastructure with more opportunities for infill development or redevelopment that is compact and dense. Suburban environments have similar opportunities but need help creating the concentration in the appropriate areas.

The concerns of sprawl and auto dependency are more apparent in a suburban setting, but there are

strategies to help focus development and investment in specific places.

Cities by nature tend to be diverse, or at least more socio-economically diverse than suburban areas, which contributes to different perspectives of how places grow and change.

How important will your new resiliency division be in coming years?

Very. Resiliency is an undeniable shift in the paradigm of how all places need to be ready to adapt to the continually changing environment. We are seeing new vulnerabilities present in communities that may not have felt these impacts previously, and we are learning how climate change impacts exacerbate other challenges that many communities already struggle to cope with.

The densest portion of many communities in the region are historically oriented around or adjacent to water, putting high concentrations of people and infrastructure at risk. It affects all sectors and land uses.

Public infrastructure will need to be fortified and located in appropriate areas, and solutions to the problems are complex, costly and time intensive. As professionals, the exciting aspect of this work is that strategies require a multi-discipline approach. That involves bringing a diverse set of professionals to the table to collaborate and develop innovative planning and design solutions. We will be working in unchartered territory in some ways, which leaves a lot of room for creative problem solving and community visioning.

What keeps you up at night?

Water. We have too much and yet not enough. My 10-year-old daughter reminds me that water is the fastest depleting resource on the planet. Four billion people — almost two thirds of the world’s population — experience severe water scarcity for at least one month each year, according to UNICEF. The management of and access to water has such an impact on our built environment. It is a reminder that water demands us to be fluid in how we plan for the future.

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BY THE NUMBERS

Back to Town

Remember the flight to the suburbs that took place during the pandemic, which so many thought would remake city life for decades to come? Think again. Bit by bit, workers are returning to offices, residents are coming back to the city and retail traffic is picking up, as we can see by the numbers.

870,471

The gain in major metro area residents in 2022-2023 compared with a loss of 138,385 in 2020-2021. (Brookings Institution)

29 million

The number of immigrants in 2022 (constituting 63% of the nation’s foreign-born population) who live in just 20 major metro areas, with New York, Los Angeles and Miami topping the list. (Pew Research)

66%

The percentage of downtown hybrid office workers who visit their central business districts on days they work remotely. (Gensler, “The Future of Central Business Districts Depends on More Than Office Buildings”)

$800 billion

The value of office space in just nine cities that could become obsolete by 2030. (McKinsey)

14%

The increase in the amount of occupied five-star office space in New York City since mid-2022, as nearly all new supply has been absorbed. (Office of the New York City Comptroller)

10.6%

The rise in pedestrian traffic in New York City retail hubs in June 2024 over the previous month. (MRI Software)