Mann Report September 2022 by Mann Publications

By Jeremy Bergstein

The ProptechLosNewIssueYorkAngelesMiamiHamptonsLasVegas Lights On How Traffic Signal Priority Technology Contributes to Increased Urban Mobility and Improved Property Values The Future of Luxe Diverse, Accessible and Eco-Conscious All StorylinesAboardDeveloping a Residential Community at Sea Putting the Metaverse to Work in Commercial Real Estate

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We’ve done hard things before, we do them all the time. For most cancer patients, the usual options are surgery, chemotherapy, or radiation. So we’re working on ways to get the immune system to deploy billions of cancer-killing cells and help more patients survive.

It wasn’t that long ago we had to open up your whole chest for heart surgery. Now we’re pioneering a bypass that goes through a few tiny incisions. With this surgery, we can get you back on your feet in weeks instead of months. So if anyone ever tells you there’s no other way—don’t listen. said

When some people experienced mysterious COVID symptoms and had nowhere to go, our team created the first Center for Post-COVID Care.

it listen.Webecouldn’tdone.didn’t

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The opinions expressed by our columnists are not reflective of the views and opinions of the publisher or editorial staff of Mann Report. Publication of such views and opinions does not constitute endorsement by Mann Report. Any reproduction, including but not limited to internet usage, is prohibited without the express written permission of the publisher. mannpublications.com

& CEO Jeff Mann business Technology Consultant Joshua Fried Distribution Mitchell’s Delivery Service art Art Director Krystal Peguero Graphic Designer Ran Jing Cover Photography Illustration by The Science Project editorial Editor Debra Hazel Associate Editors Lauren D’Errico Lauren Schuster Copy Editor Laurie Melchionne Director of Communications and Marketing Penelope Herrera Director of DivisionNewsletter Cheri Phillips Director of Special Events Mirusha Damiani Social Media Manager Le’Trice DeShon digital media Editors Lauren PenelopeDebraD’ErricoHazelHerrera Cheri Phillips Lauren Schuster Web Developer CS DesignWorks contributors Michael Beckerman Jeremy Bergstein Frank DeLucia Ran StephenAndresEliasafEscobarGilmanRyanHarrisDustinHarber Kris Kiser Nate Lamore Joe AaronNathanielLégerMallonEricMargulesIraMeisterMylesMellorTimothyMenardBonnieMurraySaagarPatelRudensteinCarolA.SigmondMichaelStein

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It’s September, and we’re back to school, back from the beach or the mountains, and back, more than ever in the office! In our Garment District offices, we’ve been watching as workers and visitors have returned to the city. We’re not at pre-pandemic levels yet, but we’re getting there, day by day. But some of what we’ve learned and gained from COVID-19 remains, as you can see in this issue devoted to proptech. I’ve been around real estate for a long time, and one thing I can say is that our industry has been a bit slow to adopt new technologies. But the enforced shutdown and then quarantining compelled all industries to adopt new methods of working, including real estate. And that process continues, as you’ll see in these pages as we discuss the metaverse, traffic technology and more. It’s a new world, one that we’re enjoying exploring. The real world also beckons as normalcy returns. We’re excitedly planning the Annual Golf Outing celebrating the 75th Anniversary of the National Realty Club on October 3 at Fresh Meadow Country Club. As you may recall, my father, Irving Mann founded the NRC with some of the other legends of the industry, including Aaron Gural and Harry Helmsley. I’ve been honored to take on the presidency of the organization, and we’re working hard to reinvent it with new young voices, and to support charitable organizations that benefit our great city.

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News Briefs 28 Commercial News 32 Residential News 36 Management News 40 Tech Talk 44 Breaking News Events 16 Jewish National Health Hosts Breath of Life Golf Classic 18 Ariel Property Advisors Hosts Coffee & Cap Rates 20 Jewish Children’s Museum 16th Annual Golf & Tennis Outing Honors Hub International’s DeLucia 22 Shawmut Design and Construction Celebrates 13th Annual Safety Week 24 JRM Construction Management Hosts 15-Year Anniversary Celebration Features 56 The Only Thing Holding Back Real Estate Tech is Talent 58 Lights On: How Traffic Signal Priority Technology Contributes to Increased Urban Mobility and Improved Property Values 60 How AI and Machine Learning are Reshaping the Way Transit Systems Move Traffic Patterns 62 How Proptech Can Help Multifamily Real Estate Owners Overcome Modern Challenges 68 What’s Happening in the West Village in a PostPandemic World? 70 Five Trends in Commercial Leasing 76 All Aboard: Storylines Developing a Residential Community at Sea 78 The Future of Luxe: Diverse, Accessible and EcoConscious COVER FEATURE 50 Putting the Metaverse to Work in Commercial Real Estate By Jeremy Bergstein CONTENTS 28 16 50 78

AEC 108 Space Hero, Lava and One Digital Team for Space Village 110 Resilient, Affordable Homes Come to Downtown Far Rockaway Colleges 114 Fordham University Hosts Industry Leaders on Interest Rates, Inflation and Impact on Business and Real Estate Departments 8 One Mann’s Opinion 12 Editor’s Letter 84 The Articles 118 Executive Changes 124 Crossword: Be Sea-ing You 126 Commercial Corner: Josh Berger, vice president, Norman Bobrow & Co. 128 By the Numbers: Propping Proptech 108 110 126 128 114

Elsewhere in this annual issue dedicated to proptech, you’ll learn more about changes to traffic signals and what they mean for projects, how to apply tech to multifamily and a discussion from CREtech’s Michael Beckerman about the human element of proptech — recruiting talent. We also look at the way we may live in the future, with a guide to lux design and the possibility of living full-time at sea. The future is already here. We’re excited to offer you a glimpse.

VISIT US AT mannpublications.com

The first fax machine (remember them?) I ever saw was the size of a desk and had a dedicated line to one place — a printing firm. Now, we email, FaceTime, Zoom and Google Meet with people around the globe on phones and watches. In just a few short decades, the way we interact in the business universe has shifted dramatically — except for, until recently, the real estate industry. The pandemic changed a lot of that. Virtual tours now allow homebuyers, renters and prospective commercial tenants to tour spaces without leaving their desk or sofa. Digital twins can help improve the efficiency of massive office buildings. Leases and other critical documents can now be signed online, with nary a sheet of paper to be found. And that’s just the beginning; more and more, we’re seeing discussions of entire virtual worlds — the metaverse — giving us the opportunity to shop, interact and do so much more online. That’s why I’m personally thrilled that Jeremy Bergstein, CEO of The Science Project, has written our cover feature to give all of us a primer on how the metaverse can be used to improve the physical one. It’s a compelling guide to lead you to question what can be applied to your business.

Editor’s Letter

Since 1983, the Rent Stabilization Association has worked for property owners in good times and bad. Now, during a public health crisis that is straining the economics of our industry, we are working hard to keep tenants in their homes and ensure that owners can continue providing safe and adequate housing. RSA represents over 25,000 members with more than one million apartments. We provide cost effective and practical solutions to help owners run their buildings. In Albany and at City Hall, we are a forceful and consistent voice for the common sense needs of property owners. Our membership is deeply diverse and in every neighborhood. Though government and policy is unbalanced now, we’ve fought back through tough times before. And we’re doing it now. We advocate for programs and funding. We provide services to help our members comply with all laws and regulations. We ﬁght against reckless policies that unfairly target the industry. Our counselors help members with any problems or government agency issues that come up. Our monthly RSA Reporter is an industry must-read, always providing information necessary to keep owners up to date on compliance issues and other policies. We have weekly email blasts, policy action alerts, and updates on political and legal issues. We are constantly ﬁghting for policy that provides a fair balance to the needs of both building owners and their tenants. 123 William Street, New York, NY 10038 · 212-214-9200 ·

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RSA is the largest real estate trade association in New York. We’re a non-proﬁt that has one priority: Housing New York

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The event benefited the leading respiratory hospital in the nation. Be fore COVID-19, many of people took breathing for granted, but for 123 years, there has been one place in the nation where people struggling to breathe could find hope through unsurpassed care and research –National Jewish Health. This Denver-based medical center is a leader in lung, heart, immune and related medicine, finding answers and developing treatments for asthma, COPD and many rare conditions. In 2020, as the COVID-19 pandemic surged, National Jewish Health shared its expertise with colleagues on both U.S. coasts, including caring for patients at Keck Hospital of USC. For more than 30 years, the Breath of Life Golf Classic has supported this world-class institution and the medicine that saves and improves lives of people across the world.

PHOTO EVENT O n May 16, 2022, the sold-out Los Angeles Real Estate Breath of Life Golf Classic raised a re cord-breaking $175,000 for National Jewish Health. No other event of this caliber and size remains ded icated to the real estate industry in Los Angeles. David Sonnenblick of Sonnenblick-Eichner Company and Tony Behrstock co-chaired the tournament and are both trustees of National Jewish Health. The Classic was held at the recently restored El Caballero Country Club, which put a modern spin on the traditional course design, cre ating a rewarding experience for players of all levels. Short Mountain Distillery and Nosotros Tequila provided tastings, while Trackman Ex perience compiled a personalized swing data report for each attend ee. Players competed in multiple contests, with several beating the pro on the eighth hole.

Photos courtesy of National Jewish Health First Place Net winners of the 2022 Breath of Life Golf Classic pose with their trophy.David Kopitz; David Sonnenblick, tournament co-chair and National Jewish Health trustee; Todd Bedingfield and John Karaczynski.

National Jewish Health Breath of Life Golf Classic

16 MANN REPORT | SEPTEMBER 2022

PHOTO EVENT 01 Jon Praw and Daniel Feiner, National Jewish Health board member, with event committee members Josh Rubin and Matthew Winnick. 02 Larry Russ; Mark Werts; Ron Friedman, National Jewish Health trustee and Steve Kris, National Jewish Health board chair. 03 Player attempts to sink his shot on the green. 04 First Place Gross winners of the Breath of Life Golf Classic celebrate their victory. 01 04 02 0305 06 07 08 05 Players warm up at the driving range before their tee times. 06 Deborah Medway, event committee member, and Chris Wayne. 07 Joey Behrstock and Tony Behrstock, tournament co-chair and National Jewish Health trustee. 08 Players competed to see who had the best swing, as analyzed by Trackman Experience. SEPTEMBER 2022 | MANN REPORT 17

PHOTO EVENT A

Ariel Property Advisors Hosts Coffee & Cap Rates

Following the presentation, a panel discussion explored economic trends and market indicators that influenced the performance of the

The program led off with a brief presentation of Ariel’s data and research on New York’s real estate investment sales market by event host and moderator, Shimon Shkury, president and founder.

NYC investment sales market in 1Q 2022, and incorporated observa tions from commercial real estate experts: Will Blodgett, founder and CEO at Tredway; Andrea Himmel, principal and chief investment of ficer at Himmel + Meringoff Properties and Rashid Walker, founder and CEO at First Street Capital. All ticket proceeds from the event were directly donated to the nonprofit Legal Outreach. At the event, James O'Neal, executive director of Legal Outreach, shared the goals and objectives of his organization, which helps young people from underserved New York City communities gain admission to the country’s most competitive colleges and universities. Ariel Property Advisors hosted its first in-person event in two and a half years.

18 MANN REPORT | SEPTEMBER 2022

fter a two-and-a-half year hiatus because of the COV ID-19 pandemic, Ariel Property Advisors held its first in-person Coffee & Cap Rates event at Club 101, with more than 150 real estate professionals registered.

PHOTO EVENT 01 04 07 02 05 08 03 06 09 10 11 01. Will Blodgett, Tredway and Victor Sozio, Ariel Property Advisors 02. James O'Neal, Legal Outreach 03. Event speakers James O'Neal, Legal Outreach; Will Blodgett, Tredway; Andrea Himmel, Himmel + Meringoff Properties; Rashid Walker, First Street Capital and Shimon Shkury, Ariel Property Advisors 04. Douglas Giles, Five Points Abstract and James Bozza, NYCB 05. Sean R. Kelly, Ariel Property Advisors and Rashid Walker, First Street Capital 06. Liska Blodgett, Liskor International; Laska Blodgett, Will Blodgett, Victoria Tran, Joshua Glasser and Chris De La Rosa, Tredway 07. Andrea Himmel, Himmel + Meringoff Properties and Shimon Shkury, Ariel Property Advisors 08. Andrea Himmel, Himmel + Meringoff Properties and Will Blodgett, Tredway 09. Victor Sozio, Ariel Property Advisors; Laura Gilbert, First Nationwide Title and Michael A. Tortorici, Ariel Property Advisors 10. Sean R. Kelly, Ariel Property Advisors; Eric Schwartz, Pilot Real Estate Group LLC and Jim Cinelli, Liberty Environmental 11. Shimon Shkury, Ariel Property Advisors Photos courtesy of Ariel Property Advisors SEPTEMBER 2022 | MANN REPORT 19

The outing featured a full breakfast, barbecues, cigars, “Rabbis on a Knish Cart,” an extensive auction, cocktails and a dinner reception.

“We are thrilled to continue to lead this event for the JCM,” said Mark

20 MANN REPORT | SEPTEMBER 2022

Ira Gordon, Land Appliance and Mendel Spalter, Jewish Children’s Museum lenge. We hosted a great event with our close network of friends and like-minded businesspeople who look forward to this enjoyable and meaningful event,” said Mendel Spalter, JCM director of development. “It was a delight to spend time with our friends, while networking, en joying good food, a L’Chaim, and a little golf and tennis. The event was a great success!”

Jewish Children’s Museum 16th

he Jewish Children’s Museum’s (JCM) Sixteenth An nual Golf and Tennis Celebration took place at Pine Hollow Club in East Norwich, New York. Approximate ly 200 friends gathered for a day of good food and great company. The outing’s guest of honor was Frank DeLucia of Hub “LastInternational.year,theouting came back strong. This year, with God’s help, the outing was the most successful yet. We moved to a new club and anticipated spending an amazing day with our friends and supporters. Thank God, it went very well, even with the weather being a chal

Golf & Tennis Outing Honors Hub International’s DeLucia

PHOTO EVENT

SEPTEMBER 2022 | MANN REPORT 21 PHOTO EVENT 01 Frank Delucia, Hub International; Bill Jebaily, Aggressive Energy; Joe Kanner, Quantum Properties and Ken Lovett, Lovett Group 02 Roni Shoyfer, Steven Lowenthal, Steven Khatimskiy and Peter Huertas, Investors Bank 02 Brian Fink, Melvin Turner, Nick Esteves and Mike James, Bargold Storage 03 Moshie Horn, Hon. Jeffery Landy, Dr. Jason Ostreicher and Mitch Wechter, Tusk Equities 04 Mark Engel, Langsam Property Services; Ira Gordon, Land Appliance; Jim Slattery, Slattery Energy and Howard Cogan, Gallo Vitucci Klar 01 04 07 02 05 08 03 06 09 05

“I’m honored to be accepting this award from an organization where values, together with diversity, are so well blended and a source of pride,” DeLucia said. “It’s wonderful when people come together with such a positive atti tude and approach to the future,” Spalter concluded. “We are deeply grateful to our honoree, chairmen and committee for making this event a truly great success!”

Steve Wolinetz, Wolinetz Management; Neal Berman, Brainstorm Promos and Bruce Sadowitz, Michael Sadowitz and Jacob Sadowitz, Amtech 06 Joe Mawad, Tekniverse; Todd Slaper, Slaper & Lapidot; Anthony Gallo and Anthony Bruno 07 Serge Hoyda, S&H Equities; Alan Kaufman; Peter Lehr, Kaled Management; Robert Frank, Academy Energy and Charlie Rey 08 Alan Steinberg, Park Row Equities and Milton Cohen 09 Mark Engel. Langsam Property Services) and Mendel Spalter, JCM, presenting award to guest of honor Frank DeLucia, Hub International Photos by Richard Parasimo and Matt Engel of Langsam Property Services, event chairmen. “We are able to spend time with fellow supporters and committee mem bers, and thank them for their involvement in this important cause.”

Firm focuses on both physical and mental health, expands partnership with AI predictive analytics platform

The week kicked off with the unveiling of Shawmut’s new Safety Week mantra, “Not a mandate, a mindset,” underscoring the firm’s com mitment to not only sending everyone home safely, but improved, so they come back even better and more aware. This approach requires focusing on the entire person — total worker health — and Shaw mut’s safety week events ranged from fall protection and electrical safety, to Narcan and substance use disorder training, to mindfulness and “Constructionmeditation.is

22 MANN REPORT | SEPTEMBER 2022 PHOTO EVENT S

hawmut Design and Construction, a $1.3 billion national construction management firm, hosted its 13th annual Safety Week, focusing on physical and mental health, safety and well-being. The week consisted of 602 events and training sessions held across 112 locations, including Shawmut’s job sites and 11 offices around the country.

one of the most demanding and dangerous jobs, which is why it’s critically important that we train and educate everyone on our job sites and in our network so they are always mindful of not only their actions, but those of the people around them,” said Shaun Carvalho, chief safety officer. “Safety Week provides the opportunity for us all to learn from each other, bettering not only our own ap proaches to safety but safety in the industry as a whole. This wouldn’t be possible without the commitment of each of our people.”

Shawmut Design and Construction Celebrates 13th Annual Safety Week

Shawmut also announced its expanded partnership with Newme trix, which uses AI to predict risks on job sites, and has helped drive Shawmut’s increased safety engagement and reduction in OSHA recordable incidents over its four-year partnership. Now, Shawmut is engaging Newmetrix’s predictive analytics on some of its largest projects to identify the top hazards specific to each jobsite. With this data, Shawmut’s safety and project teams will work together to deploy the proper resources and training to mitigate and eliminate these risks. “With safety as a core value, it’s ingrained into everything our teams do — it’s part of our mindset,” continued Carvalho. “Our culture of care and openness to innovation has allowed our partnership with Newme trix to evolve, driving us one step closer to a predictive, zero-incident safety program.”

Since Shawmut’s inception 40 years ago, the firm has remained ded icated to the holistic health, safety and wellbeing of every employee, the company said. Safety is embedded into Shawmut’s culture as a top-down and bottom-up business imperative. This drives a sense of ownership, with buy-in and engagement from each employee. It also drives results — seeing a decrease in incidents fuels an increase in employees working to uncover even more safety systems and technol ogies to push Shawmut closer to its goal of zero incidents.

SEPTEMBER 2022 | MANN REPORT 23 PHOTO EVENT 01. Aerial lift training at Shawmut’s project for Culture Kings in Las Vegas 02. Ladder safety training at the 843 N Spring Street jobsite in Los Angeles 03. Training and demonstration at a Los Angeles jobsite 04. Lift training at a building repositioning project in New York City 05. COO Reza Amirkhalili and chief safety officer Shaun Carvalho leading the Safe ty Week Closing Ceremony 06. Starlite Building Services sponsored a distracted driving event at Shawmut’s Boston office Photos courtesy of Shawmut Design and Construction 01 04 07 02 05 08 03 06 07. Fall protection training at one of Shawmut’s project sites in Los Angeles 08. During a fire prevention safety meeting at a Los Angeles jobsite, the team host ed a live fire extinguisher demonstration which included detailed explanations of the type of extinguishers commonly found onsite and the classes of fires that would typically be encountered.

departments to deliver for our clients has been something to marvel at, and I feel humbled to have been and continue to be a part of it.”

JRM Construction Management Hosts

24 MANN REPORT | SEPTEMBER 2022

“One of the most common sayings around JRM has always been the day we stop striv ing to improve is the day we start regress ing,” said McWilliams. “It is truly humbling to look back now, 15 years in, to what we have all created [and] seeing the passion and commitment of our team members and how strong of a base they have built in getting us JRMhere.”has seen tremendous growth in both its interiors and large-scale Core & Shell di vision in recent years. The firm also recently expanded its business capabilities in the bur geoning Healthcare and Life Sciences space to better serve some of the largest medical clients in the city.

JRM’s leadership, from left, David B. McWilliams, COO; Anthony Iandoli, executive vice president; David G. McWilliams, CEO; Joseph P. Romano, president; Marc Reissman, executive vice president; Jimmy Connolly, vice president-general super; John Jackson, JRM West managing partner; Kevin Griffin, vice president-core & shell and Charles Ciccarelli, vice president-construction

“First and foremost, when making a decision, it is critical that we always take into account how it affects both our clients and co-work ers,” Romano noted. “Maintaining our values has made JRM the success that it is today.” These include overarching principles like Honesty and Integrity Above All, a Commitment to Delivering Unparalleled Client Service and a drive to Never Settle, Always Improve.

PHOTO EVENT

J RM Construction Management LLC (JRM) celebrated its 15-year anniver sary at Gotham Hall in New York City, sharing the evening with more than 600 em ployees, clients and partners. Many of JRM’s senior leaders spoke at the celebration. In addition to CEO David G. McWilliams, the list included President Jo seph P. Romano, COO David B. McWilliams and Executive Vice Presidents Marc Reiss man and Anthony Iandoli. “There is no doubt that what has gotten JRM to where we are now, as we look back on the last 15 years, has been the talent within our organization,” McWilliams said. “From our earliest days to now, the sheer will and deter mination exhibited by our different teams and

At JRM, the firm’s guiding mission through the years has been to make construction a better experience for all parties involved.

Photos by Natural Expressions NY

15-Year Anniversary Celebration

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As a combined platform, Centennial will now have a wider national reach with more than 23 million square feet of managed properties in 18 states. The combined organization will take the Centennial name and the headquar ters will remain in Dallas.

In the largest new office lease in Brooklyn since January, design and innovation firm Huge will relocate its global headquarters to Dock 72, a 16-story, 675,000-square-foot of fice tower at Brooklyn Navy Yard, announced Boston Properties (BXP) and Rudin. Huge signed a 12-year lease to occupy 71,000 square feet of office space spanning the entire 15th floor and a portion of the 14th floor of Dock 72. Huge will move from its cur rent location at 45 Main Street to Dock 72 in the first quarter of 2023.

Centennial, a real estate investment firm with a national portfolio of retail and mixed-use des tinations and a full-service advisory services platform has acquired the operating platform of Birmingham, Alabama-based Bayer Properties, with a portfolio nearly eight million square feet of open-air fashion, power and neighborhood centers as well as mixed-use destinations. Centennial operates over 15 million square feet of owned or managed assets in 11 states.

Boston Properties, Rudin Sign “Huge” Deal at Dock 72

28 MANN REPORT | SEPTEMBER 2022

Operating Platform Photo courtesy of BXP and Rudin Photo courtesy of PRNewswire this expansion,” said Dave Lawler, chairman and president of BP America. The first Ampm store opened in Southern California in 1978.

Centennial Acquires Bayer Properties

The store features BP branding throughout the fuel experience and Ampm’s food menu, includ ing a hot deli and grocery with fresh fruit and extensive dry goods. The entire customer-cen tric experience is modeled after Thorntons, the Kentucky-based fuel and convenience retailer that BP took full ownership of in 2021. “As BP transitions toward becoming a net zero company, convenience will play a huge role in delivering our integrated strategy. The experience customers feel at our retail sites will be key to attracting them in and ensuring they return. Because New Yorkers are always on the go, the Empire State is a perfect fit for

BP Expands Ampm Convenience Brand to East Coast

Like Centennial, Bayer Properties provides leasing and merchandising, investment and asset management, development, property management, marketing, construction, ten ant coordination, research and technology services to its partners, creating immediate synergies between the two organizations.

COMMERCIAL NEWS

BP has opened its first Ampm convenience store in New York City, expanding from the West Coast. The store, at 824 Allerton Ave. in the Bronx, is the first unit on the East Coast.

Huge was represented by Winter Stockwell, Huge’s global vice president, real estate, as well as Cara Chayet, David Hollander, Liz Lash and Ken Rapp of CBRE. Andrew Levin, senior vice president, leasing at BXP, and Robert Steinman, senior vice president at Rudin, along with Joe Cirone, Ron Lo Russo, Patrick Dugan and Pierce Hance of Cushman & Wakefield and Sacha Zarba and Freddie Fackelmayer of CBRE represented building ownership.

The information contained herein has been obtained from sources believed reliable. While we do not doubt its accuracy, we make no guarantee, warranty or representation about it. The prospective tenant should carefully verify each item, and all other information herein. Darell Handler, COO 646.597.6171 dhandler@handler-re.com Alex Bush, Senior Director 646.517.8782 abush@handler-re.com Kyle Galin, Director 646.998.6012 kgalin@handler-re.com Richard Farley, SVP 646.597.6179 rfarley@handler-re.com212.398.1888 | Handler-re.com • BUILT SPACE IN GREAT CONDITION • Available Immediately • Concrete floors, raised ceilings + glass front offices • Access to all transit WORKING FROM HEREWFH Entire 16th floor: 6,500 RSF CREATIVE + EFFICIENT FLOOR PLATE 263 West 38th Street Between 7th & 8th

“Executing in today’s debt markets presents a degree of challenge that we are proud to have met through close partnership and collaboration across several unique facets of the Mesirow franchise, including our muni desk and the more traditional CRE fixed income sales and trading channels,” said Nat Sager, president of Mesirow Capital Markets. Mesirow served as placement agent and ad ministrative agent on the financing. Cushman & Wakefield also served as advisor to the borrow er in shaping the loan request and brokering the ultimate engagement with Mesirow.

Blackstone Funds Complete $13B Acquisition of American Campus Communities

Blackstone Core+ perpetual capital ve hicles, primarily comprising Blackstone Real Estate Income Trust Inc. (BREIT) and Blackstone Property Partners (BPP), have completed the previously announced ac quisition of all of the outstanding shares of common stock of American Campus Com munities, Inc. (ACC), the largest developer, owner and manager of high-quality student housing communities in the United States, for approximately $12.8 billion, including the assumption of debt.

Properties is completing a $400 million redevelopment of the building. The redesigned tower features a new lobby, elevators, mechanical systems, upgraded in frastructure and a new façade reclad in 11x19 foot single-pane glass units. David Hollander, vice chairman and Brad Auerbach, senior vice president of CBRE brokered the deal on behalf of 400 Capital. Brookfield Properties was represented inhouse by McCuaig, Dave Caperna and P.J. Massey, as well as Bruce Mosler, Josh Kuri loff, Ethan Silverstein, John Santora, Matthias Li, Nicholas Dysenchuk and Howard Cross of Cushman & Wakefield.

Mesirow, an independent, employee-owned financial services firm, recently led the $275 mil lion financing of NASA’s Washington, D.C. head quarters at 300 E Street S.W. The property is owned by Hana Alternative Asset Management and managed by Ocean West Capital Partners. Through this financing, the partnership recap italized its equity interest in the property and effectively monetized what is currently the sixth largest Government Services Administration lease in the country.

Mesirow Leads $275M Financing of NASA's Washington, D.C. Headquarters

Photo courtesy of Brookfield Photo courtesy of PRNewswire ley & Co. LLC, SMBC (a member of SMBC Group) and TSB Capital Advisors served as Blackstone’s financial advisors. Simpson Thacher & Bartlett LLP acted as Blackstone’s legal counsel.

Alternative credit asset manager 400 Cap ital Management LLC has signed a lease at Brookfield Properties’ 660 Fifth Ave. The firm will occupy 25,572 square feet on the 27th floor beginning August 2024. In relocating, 400 Capital Management will more than double the size of its office footprint at 660 Fifth BrookfieldAve.

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BofA Securities served as ACC’s lead finan cial advisor in the transaction, while KeyBanc Capital Markets Inc. also acted as a financial advisor. Dentons US LLP served as ACC’s legal counsel. Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Goldman Sachs, Morgan Stan

400 Capital Management LLC Signs at 660 Fifth Ave.

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30 MANN REPORT | SEPTEMBER 2022

With Miami facing a growing affordable housing crisis, locally based entrepreneur Dennis Agalli has announced plans to help struggling families in the city’s Little Haiti and Wynwood neighborhoods. The initia tive comes after Miami recently announced that the city is experiencing an affordable housing crisis that is hurting middle and low-income families the most. Through this initiative, Agalli said that he plans to help pre serve the neighborhood as locals struggle with rising rents. Agalli said that the initiative will help to pro tect residents of Little Haiti as gentrification grips the area. Low-income families with chil dren are the primary target of the initiative. Agalli is providing families with affordable rents at below market rate to help them stay in their homes.

Construction Begins on 126 East 57th St.

Cozza Realty Group Introduces Concierge Luxury Real Estate Division and Expands to South Florida

This initiative also helps low-income fam ilies avoid having to find housing through government programs, such as Section 8. Agalli is also working with city officials to find solutions.

Construction has started at 126 East 57th St., a project designed by architect ODA, with interiors designed by Gabellini Sheppard. The project is being developed by owner MRR 1326 LLC, a company owned by Anand Mahindra and real estate eevelopers Rotem Rosen and Zahi Hagag. The site spans the width of a city block from 56th to 57th Streets, with a plan to erect a 175,000-square-foot tower. Almost all units would have private outdoor terraces, pixelat ing the cast-in-place concrete façade with projections and recesses. The residential entrance is planned to be on 57th street, bringing residents through a copper mirrored gateway into a six-story tall atrium with views of a lushly landscaped courtyard. A gallery will lead residents to the lobby and access to the 28-story residential tower. An alternate entrance to the lobby would be through a porte cochere at 56th street for car drop off. The amenity package is planned to begin on the two sublevels, which will include an ex ercise room, sports court, indoor swimming pool, sauna and steam rooms. The second floor is planned to have a private lounge.

Cozza Realty Group Inc., powered by Cozza Investment Group (CIG) with 20 years of expe rience, has expanded into the South Florida market with luxury projects while it continues to expand its presence along both of Florida’s coasts. CIG has built a team of 20 bilingual and diverse agents who will specialize in luxury homes throughout the Miami metro area, in cluding Downtown Miami, Brickell, Wynwood, Coral Gables and Coconut Grove, with plans to expand to Palm Beach in the near future.

“As one of the fastest growing markets in Florida, and highly sought-after internationally, Miami is a region we have been targeting as a key com ponent of our expansion strategy," said Brad Cozza, owner of Cozza Investment Group. Because of Cozza’s commitment to creating the experience of purchasing a luxury property, he provides his clients with a “Ritz-Carlton” Three Steps of Service experience: a warm and sin cere greeting of the client’s name, but also with champagne, caviar and local shellfish bites on deck of their company-branded boat.

RESIDENTIAL NEWS 32 MANN REPORT | SEPTEMBER 2022

Agalli Takes on New Affordable Housing Initiative in Miami

Renderings by Brick Visual Photo courtesy of PRNewswire Photo courtesy of PRNewswire

Absolute Electrical Contracting of NY services commercial, industrial, residential and retail clients. Our construction division has the ability to do any task that is required of an electrical contractor. Our low voltage division provides electronic security, voice & data, fiber solutions and fire alarm installations for any size project. The project management team has over 100 years of experience. Robert Romanoff, President 307 West 38th St., Suite 1301, New York, NY 10018 917.693.5416 • Absoluteelectric.com

United Real Estate Expands to NYC Area Photo courtesy of Ritz-Carlton penthouse residences. The hotel’s culinary venues and in-room dining are helmed by Michelin-starred chef and global citizen José Andrés. The Bazaar by José Andrés will make its New York debut in late 2022.

The Ritz-Carlton recently announced the opening of The Ritz-Carlton New York, No Mad. Soaring 50 stories above the North of Madison Square Park neighborhood, the newly constructed hotel and residences was developed by New York-based Flag Luxury DesignGroup.teams including Rafael Viñoly Archi tects, Rockwell Group, Lazaro Rosa-Violan Studio, Martin Brudnizki and SUSSURUS International, delivered a bold, contemporary design that pays homage to the hotel’s loca tion in the city’s Flower District. An art collec tion by curator Culture Corps and Founding Partner Yvonne Force Villareal includes local artists Pat Steir, Ross Bleckner and Don ald Baechler. Seasonal floral installations throughout the hotel welcome guests.

The Ritz-Carlton NoMad Debuts United Real Estate (United) announced a part nership and the newest member of its national network, United Real Estate|Fortune, based in Great Neck, New York. The move ushers Dallas, Texas-based United into New York State and the New York City area for the first time. United is the seventh largest independent real estate opera tion in the United States. The alliance equips United Real Estate|Fortune agents with proprietary technologies, marketing programs and resources provided by United’s national organization. Some resources include: 100% commission, flat-free transaction com pensation, automated listings marketing and personal marketing programs, lead-generating agent websites, listings videos and a national referral network. United Real Estate|Fortune's team provides representation for residential, commercial, mul ti-family, land and rental properties. They service Long Island and all five NYC boroughs. The of fice is also fully equipped to serve both Englishand Mandarin-speaking clientele.

Housing Inventory Rises at Record-breaking Speed in July

The housing inventory recovery accelerated in July, as active listings increased at a record annual pace (+30.7%) for the third month in a row, said the realtor.com Monthly Housing Trends Report. Although buyers had options, competition remained in sellers’ favor, with listing prices near all-time highs and homes selling more quickly than pre-COVID-19. “The U.S. housing market continues to move toward more evenly balanced supply and demand compared to the 2021 frenzy. Our July data shows elevated mortgage rates left many buyers tightening their budgets and sellers responding with price reductions, while home shoppers who kept searching saw more available options,” said Danielle Hale, chief economist for realtor.com. “New listings declined in July, suggesting that some prospective sellers are wondering what recent market shifts mean for their plans to list. But data indicates that homeowners grappling with this decision are still in a good position in many markets, with buyer interest keeping well-priced homes selling quickly. Plus, many sellers have a substantial equity cushion to leverage, thanks to the past dec ade of rising prices. Whether or not they take advantage of these opportunities will be key to inventory trends moving forward."

RESIDENTIAL NEWS 34 MANN REPORT | SEPTEMBER 2022

The hotel’s 250 guestrooms include 19 suites, with an additional 16 one- and two-bedroom

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Solomon Engineering is the engineer of re cord for the project.

The integration between QuoteToMe and Pro core helps effectively eliminate data entry and frees time for project managers and site supervi sors. Using the QuoteToMe app, field and office users will have the ability to create purchase or ders from their mobile devices or desktop com puters that can automatically sync with Procore’s Project Financials product.

QuoteToMe, a provider of procure-to-pay auto mation software, announced a new partnership with Procore, a global provider of construction management Constructionsoftware.isa$10 trillion per year global industry, with more than $1 trillion spent on materials and equipment in the U.S. and Can ada alone. Due to an inefficient incumbent procure-pay workflow, the result is billions of dollars of waste on project overspend and re-work. The construction industry standard for procure-pay workflows includes manual non-centralized communication (phone, text, email) between project teams and suppliers, many paper-based processes and little to no visibility between contractor departments (field, office and QuoteToMe’saccounting).end-to-end platform saves con tractor field and office teams 75% of the time spent to source goods and process purchase orders (POs) and creates up to 15% cost savings on materials and equipment, the company said.

“Despite predictable wear-and-tear to the ma sonry and sheer age, this building is in excellent condition thanks to a diligent co-op board,” said Wayne Bellet, president of Bellet Construc tion. “Nevertheless, we will consult with the Landmark Preservation Commission through out the process to ensure every detail — from the pigment of the mortar to roof parapet re pairs — comports with their requirements.”

Pye-Barker Fire & Safety has added one of the largest full-service security providers in New Jersey, Complete Security Systems Inc. (CSS), to its alarm division and family of CSS,companies.headquartered in Marlboro, New Jersey, specializes in customized security solutions including intrusion alarms, fire alarms, CCTV and access control for commercial and resi dential customers. It was founded in 1983 by Chris Mosley, CSS is the only security company to receive the New Jersey Electronic Life Safety Associ ation (NJELSA) Dealer Award for three years. “I'm thrilled to be able to forge this partner ship with Pye-Barker,” said Mosley, Com plete Security Systems President. “Their cul

MANAGEMENT NEWS Bellet Construction has been engaged by the cooperative corporation at 141 Prince St. to implement repairs mandated by the Façade Inspection Safety Program (F.I.S.P.), formerly referred to as Local Law 11/98. The seven-story masonry building was built in 1900 and is located in the Historic Soho Cast Iron District, between Wooster Street and West Broadway. In addition to five full-floor residential co-op units, the building is occu pied by the Meisel Gallery at grade level.

Pye-Barker Fire & Safety Merges with Complete Security Systems

Bellet Construction Prepares F.I.S.P. Repairs for 141 Prince St.

QuoteToMe Launches Procore Integration

Photo courtesy of Bellet Construction Photo courtesy of PRNewswire ture, people and way of doing business align perfectly with who we are at CSS.” Mosley will continue to lead CSS along with his leadership team.

36 MANN REPORT | SEPTEMBER 2022

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Photo courtesy of PRNewswire Photo courtesy of PRNewswire

Valet Living, the national full-service amenities provider to the multifamily housing industry, has expanded its Valet Living Turns business with the acquisitions of Contemporary Contractors Inc. (CCI), an Irving, Texas-based traditional turns company that also provides plumbing and HVAC work, and A Rite Way, a Boca Raton, Florida-based multifamily solutions provider that has accommodated residential communities for over 20 years while routinely pulling in capital expenditure projects.

Seagram Building Debuts The Playground

Savills Forms Strategic Alliance with Integrative Partners

“Valet Living Turns’ purposeful expansion strat egy will be fueled by additional acquisitions and organic growth,” said Steve Davis, executive vice president of Strategic Development.

to Enhance the Office Experience

Photo courtesy of PRNewswire The Playground’s open court, designed for basketball, pickleball, volleyball and soccer, can be transformed into a 150-person theat er for town hall meetings and large-screen presentations.

38 MANN REPORT | SEPTEMBER 2022

Since 2019, Valet Living Turns by Valet Living has been building out a national platform to ensure efficiencies in real estate turnover by expanding current markets and acquiring the best-in-class local multifamily solutions pro viders. In January 2022, Valet Living acquired Portland, Oregon-based turns company All Aspects Renovations, Valet Living Turns Acquires Contemporary Contractors Inc. and A Rite Way

A $25 million recreation, fitness and con ference space named The Playground + Conference Center has opened in New York’s Seagram Building, fulfilling owner RFR’s vi sion to “breathe oxygen into the workplace” by offering tenants a community where peo ple can work, socialize and exercise.

MANAGEMENT NEWS Savills has entered into a strategic alliance with Integrative Partners (IP), a certified minority- and women-owned business enter prise (M/WBE) and commercial real estate services firm founded and led by Shawna O. Menifee, a 25-year industry veteran. The alliance with Savills will allow IP to benefit from Savills global platform and, in turn, will enable Savills to leverage IP's wide-ranging relationships with its national network of mi nority and women-owned suppliers. Menifee founded IP in 2005 to address sup plier diversity initiatives on behalf of Fortune 500 companies, government entities, city agencies and institutional owners across the country. Since then, IP has built a national net work of certified minority and women-owned commercial real estate-centric businesses including top brokerage professionals, archi tects, engineers and legal counsel. IP pro vides a single source for companies seeking diverse real estate service providers for multi-market initiatives and acts as the liaison and trusted advisor on every transaction.

The 35,000-square-foot facility was con ceived by RFR four years ago but gained urgency post-pandemic as the building’s corporate tenants looked for incentives that would encourage their employees to return to the office after more than two years of working from home. RFR restructured the building’s underground parking garage to hold a 3,500-square-foot fitness center, a multisport open court, 22-foot-tall climbing wall, stadium seating for 150, a 50-seat boardroom and 40-seat training room.

Bringing Innovation to Matthew Adam Properties is a long-time leader in bringing innovative ideas and programs to the properties we manage. Contact us to ﬁnd out how we can innovate your building to a new level. Ira Meister, President | 375 Pearl Street - 14th Floor | New York, NY 10038 T: 212.699.8900 F: 212.699.8939 imeister@matthewadam.com | matthewadam.com property management

TECHTALK GoDocs and Applied Business Software, mak ers of The Mortgage Office (TMO) private lend ing software, unveiled an integration that will provide an end-to-end, single-system solution for processing commercial loans. Companies that have struggled to keep up with demand will be able to process hundreds of more loans per month and operate at scale without adding resources. Moving forward, lenders can pro cess loans through one platform with just a few clicks while also improving commercial loan document strength. For decades, TMO has provided software solutions to help manage any size and vol ume of loans, the company said. GoDocs has offered automated documentation solutions ensuring every application is complete, com pliant and accurate. As a result, loans can be processed at an unprecedented speed while also improving document strength and sup porting the needs of enterprise-level lenders.

GoDocs, The Mortgage Office Announce New Loan Processing Integration

Offerpad Reveals New Mobile App

RealOpen, which helps high-net-worth cryp to holders purchase luxury real estate, has launched RealScore, the world’s first crypto purchasing power feature. RealScore pro vides high-end real estate buyers and sellers with a real-time, credible context to evaluate the asset strength behind a specific offer, the company said. Using the buyer’s cryptocurrency wallet ad dress, patent-pending RealOpen analyzes buyers’ mix of crypto assets and ultimately determines their reliable purchasing power — assuring the seller of sufficient available equity with a cryptographic analysis. Factors used to provide a score include the diversity of the basket of coins used to fund the offer, buyer-held cryptocurrency above the offer price and escrow duration. These factors are then translated into a visual RealScore.

Graphic courtesy of Business Wire Photo courtesy of PRNewswire

By integrating both platforms, users now have access to an end-to-end solution that will produce complete and compliant loan documents in a matter of minutes.

RealOpen launched in April 2022 as the first company focused on accepting cryptocur rency for real estate transactions.

RealOpen Unveils World’s First RealScore Feature

40 MANN REPORT | SEPTEMBER 2022

The customizable and flexible loan appli cation process allows users to navigate the application process from the mobile app, online portal or toggle back and forth for a flexible and frustration-free mortgage expe rience. They can access loan applications, complete tasks, securely scan, upload and e-sign documents, check on loan progress and communicate with an Offerpad loan officer. Users also can access loan products, pricing, quotes and rates from anywhere, with push notifications providing immediate transparency into loan progress, including pre-qualification or pre-approval status. Inapp notifications for critical requests and required tasks ensure faster loan processing.

Offerpad, the tech-enabled platform for buying and selling residential real estate, un veiled its newest mobile app that simplifies the home loan process to make it faster and easier for borrowers.

Peter S. Duncan I 212.481.1137 I pduncan@gcomfort.com Matt Coudert I 212.542.2121 mcoudert@gcomfort.com Andrew F. Conrad 212.542.2101 I aconrad@gcomfort.com Bold New Entrances & Retail Storefronts New Turnstiles for Touchless Entry Newly Renovated Lobby with Sleek Modern Design State-of-the-Art Facial Recognition at Select Turnstiles New Grab & Go Coﬀee Shop & Lounge Area New Touchless Destination Dispatch Elevators to Maximize Service Experience the Transformation as it Unfolds 12,712 RSF - 30,289 RSF VISION

Zillow Inc. and Opendoor Technologies Inc. have announced a multi-year partnership that allows home sellers on the Zillow platform to request an Opendoor offer to sell their home. Potential sellers on Zillow apps and sites may request and view an offer directly from Open door and compare it to an open-market sale using a real estate agent. Opendoor offers will be available on Zillow, and customers will be able to use the service as a standalone offering or package it with other Zillow home shopping services such as financing, closing and agent selection. Zillow customers will be able to work with a licensed Zillow advisor.

Yardi has released RentCafe CRM IQ, a cus tomer-centric relationship management solution for multifamily operators. Built into Yardi Voyager and RentCafe product suites, CRM IQ helps manage prospects, applicants and residents through every stage of the leasing and resident lifecycle. CRM IQ centralizes leasing offices with CLO-friendly features that streamline lead management, lease conversion and resident services. Leasing agents can take advantage of a dashboard that prioritizes customer-ori ented data and provides a consolidated view of the customer journey across a portfolio. The new features give site teams more ben efits including segmented prospect stages to ease strategically targeting higher-quality leads without extensive training, and tools for managing lease renewals, resident services, maintenance requests and more. CRM IQ includes a new Communication Hub, provid ing a single aggregate view of all customer interactions and engagement capabilities. It also has a tenant advocacy feature to create more opportunities for resident referrals and testimonial engagement.

"By bringing together Zillow's market-leading audience and Opendoor’s e-commerce plat form, more consumers will have the option to sell to Opendoor and save themselves the stress and uncertainty of a traditional sale process,” said Opendoor President Andrew Low Ah Kee. Zillow, Opendoor

TECHTALK Realtor.com has introduced a buying power tool to help home shoppers see whether a specific home is “affordable,” “a stretch,” “difficult” or “out of reach.” It uses a home buyer's specific financial details, current mortgage rates, taxes, insurance and HOA fees to determine if the monthly payments will be Buyingcomfortable.powerlabels now appear directly on home listings on realtor.com, making it the first national home search site where shop pers can filter their search by selecting their desired affordability range. Realtor.com surveys found that more than two-thirds (68%) of shoppers were surprised by what they could afford for their first home. Visitors to the affordability calculator enter their income, monthly debt payments and available funds. By saving this information to their profile, listings on realtor.com will include an affordability label — “affordable,” “a stretch,” “difficult” or “out of reach.” Users can also filter their search by homes that are within their desired affordability range.

Yardi Releases Customer-Centric CRM IQ

Announce Multi-year Partnership Photo courtesy of PRNewswire Photo courtesy of PRNewswire 42 MANN REPORT | SEPTEMBER 2022

“As we bring the housing super app to life, we’re empowering our millions of visitors to understand all their options and transact in the way that best meets their housing needs,” said Zillow Chief Operating Officer Jeremy Wacksman.

Realtor.com Adds Buying Power Tool

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The program is available to homeowners and buyers in all the markets Kentwood serves, including the entire Denver Metro area and Northern, Western, Southern and Eastern KentwoodColorado.Advantage gives buyers access to new cash offer programs to help them quick ly win an offer on a home. In addition, a new rent-to-own program helps first-time buyers get into a home of their own faster. Kentwood Advantage also offers traditional real estate services for sellers and buyers. Participating iBuyer, Power Buyer and concierge firms in clude Curbio, Divvy, Feeasy, HomeGo, Hom eVestors, Offerpad and Opendoor. Michelle Berliner

COLLEGES 20 The Jewish Museum 26th Annual Most Amazing New York Art & Design Tour 22 Corenet Women’s Golf Outing Partners with Bees Trees Water 23 UJA-Federation of New York’s Hospitality Division Honors Ian Schrager THE EVENTS 24 REBNY Hosts Annual Golf & Tennis Outing 26 CHIP’s 21st Annual Golf & Tennis Outing 28 15th Annual Hamptons Happening Supports SWCRF DEPARTMENTS8 One Mann’s Opinion 86 The Articles 80 Tech Talk 110 Commercial Corner: Bruce Schanzer, president and CEO of Cedar Realty Trust 112 By The Numbers: More than Warehouses 68 Having a Voice: Student Input Aids Design of Pratt Residence10 Editor’s Letter 102 Executive Changes 30 Crohn’s & Colitis Foundation Bruce Schanzer 44 MANN REPORT | SEPTEMBER 2022

InTheMarket (ITM), a new interactive deal platform for the CRE leasing industry, has soft launched its beta platform. ITM streamlines the LOI and transaction process for the com mercial real estate leasing industry, deliver ing speed and data-capture to an analog and antiquated process. The ITM platform cap tures negotiated deal terms and tracks every change in real time, facilitating on-demand cash flows, NER calculations, comparison matrices and deal activity reports. “The platform is going to materially improve the way brokers and landlords negotiate lease terms, from initial proposal to the final term sheet, making the process easier and faster,” said Steven Renbaum, InTheMarket’s

“ITM'sco-founder.modern and real-time deal experience will have an immediate impact on an industry that's ripe for innovation,” added co-founder Michelle Berliner. “With a focus on speed, transparency and data, this platform is the future of commercial leasing.”

Photo courtesy of PRNewswire

To help Denver area homeowners sell in a shifting market, Kentwood Real Estate is launching its Kentwood Advantage program, powered by Zavvie. Sellers can now choose from an instant, all-cash offer from an iBuyer, a buy-before-you-sell modern bridge solu tion, and pre-listing home improvement ser vices to fix now, pay when the home is sold on the open market to maximize seller profits.

Kentwood Advantage Aids Colorado Homeowners, Buyers Steven Renbaum

InTheMarket Launches Interactive LOI Platform for CRE Leasing Brokers and Landlords

Fontainebleau Las Vegas Reveals Immersive Retail Experience

BREAKING NEWS Fontainebleau Development has revealed the first details for the new luxury retail ex perience to debut within Fontainebleau Las Vegas, the first luxury resort destination to be built on the Strip in 15 years. The project is scheduled to open in winter 2023, nearly 70 years after the company’s founding. The 90,000-square-foot shopping district will feature approximately 35 luxury retail concepts across two levels. The resort shopping district is conveniently connected and visible from the larger resort ecosystem, as every space will be neigh boring, either adjacent or above, Fontaineb leau's 173,000-square-foot casino, dining experiences and other offerings. Branding and design visionary Peter Ar nell leads Fontainebleau's property-wide branding and design, partnering with firms including Rockwell Group, London-based David Collins Studio and other architects and designers.

Schulte Roth & Zabel’s Real Estate Group TRUSTED ADVISERS ON DEALS THAT DEFINE THE MARKET The contents of these materials may constitute attorney advertising under the regulations of various jurisdictions. Schulte Roth & Zabel LLP New York | Washington DC | London www.srz.com COMPLETING BILLIONS OF DOLLARS IN TRANSACTIONS ANNUALLY FOR MANY OF THE MOST INFLUENTIAL PARTICIPANTS IN THE REAL ESTATE INDUSTRY

Premier Secures Contracts with Landstar Hotels and Door Capital Partners

46 MANN REPORT | SEPTEMBER 2022

Wilden Rejoins Nelson Worldwide as Mixed-Use Design Leader

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Premier’s services includes architecture, interior design, procurement and project management. It will spearhead the compre hensive transformation of two hotels for Door Capital Partners. These include Holiday Inn Express in Cleveland, Texas and La Quinta Inn and Suites in Cedar Park, Texas. The firm will be responsible for the full renovation of the public areas and guest rooms. For Land star Hotels, the team at Premier will execute the renovation of two select-service hotels in Texas: Holiday Inn Express in downtown El Paso and a Courtyard by Marriott in Laredo.

Photo courtesy of Nelson

Architecture, design and strategy firm Nel son Worldwide is welcoming back Richard Wilden as mixed-use design leader of its Al pharetta, Georgia office. He will lead master planning and architectural design, leveraging his experience designing complex mixeduse projects and ability to conceptualize projects throughout the design phases. Wilden brings over three decades of exper tise in complex mixed-use design and plan ning, urban design and master planning. His architectural education history in design the ory has contributed to the design approach he has spearheaded throughout his career — providing real-world exposure to the con structability, building systems technology and business aspects of architecture. He is actively involved in industry associa tions and currently co-leads the ULI Cleve land District Council’s Technical Assistance Panel (TAP) initiative. He works directly with organizations and professionals in address ing development and urban planning issues.

Premier, an end-to-end project management firm specializing in the hospitality industry, has signed multiple contracts with Land star Hotels (a hotel owner and hotel man agement company) and with Door Capital Partners — a private equity firm that invests in hotel assets. Premier will spearhead mul timillion-dollar renovations of four North American properties for both Mexican-based entities, respectively, giving them the neces sary confidence to break into the U.S. market.

BREAKING NEWS Francisco Nacorda, senior vice president of originations at Mag Mile Capital, closed a $43.1 million loan in connection with the de velopment of a four-story hotel with a parking garage in the booming West End/Midtown region of Nashville, Tennessee. Situated close to Vanderbilt University, the hotel site is only a block away from Broadway. The hotel, to be located at 2221 Elliston Place, will host 184 rooms and 70 parking spaces. The projected opening date is Summer 2023. Mag Mile Capital is a boutique firm that offers preferred access nationwide to high-lever age, non-recourse, commercial real estate bridge loans, construction loans and per manent mortgages with cash out for hotels, self-storage, multifamily, industrial, retail, office and other commercial real estate Mag Mile Capital Closes $43.1M for Nashville Hotel

Photo via PRNewswire

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Jeremy Bergstein is CEO of The Science Project. He is creating new experiences, productivity and new revenue platforms for malls, retail and commercial real estate around the world. T

This article gives a broad overview of the metaverse’s potential to benefit physical property owners and for managers to dis cover what is possible and what questions to ask to make their physical buildings more efficient and profitable — and create better experiences for their tenants.

he Metaverse makes sense to everybody. Cor rect? No, not at all. In fact, this concept of an immersive virtual digital world has mostly gone over with a thud. As Facebook CEO Mark Zuckerberg struggles to fend off lawsuits and convince the world (as he tried when speaking to investors in July 2021) that he should lead what Precedence Research projects to be a $1.6 trillion mar ket by 2030, we are seeing different visions take shape. In its place we are seeing the emergence of something that is far more exciting, that possibly represents the largest innovation and change that commercial real estate has seen in a generation.

We are seeing a pervasive, persistent layer of 3D digital experiences and information overlaid onto our physical world. These experiences are springing to life in our pub lic places as art projects and video games. Soon, they will rapidly move inside of our Whetherbuildings.these are immersive games, step-bystep guided navigation, 3D instructions for fixing HVAC, or exciting brand media pro motions, our near-term metaverse is likely a universally accessible, integrated world of digital value embedded into our properties and not a “sit at home and wear goggles” video game. It is up to building owners to make sure they do not let this transformation be solely owned by technology giants. Commercial real estate missed the e-commerce revolu tion; it must not let this happen again.

By Jeremy Bergstein

The Metaverse of Real Estate Call it The Metaverse of Real Estate, if you like, but this transformation will happen on our properties and owners and operators must capitalize on this shift and own their “Digital Square Footage.”

As with any universe, the metaverse is far reaching, limited only by the imagination of those operating within it. Any discussion of how it can be applied to physical real estate is complex. But one thing is clear: the metaverse isn’t going anywhere. Remember those people who thought online shopping was a fad? The question is how this new tool can work for the “real” world.

JEREMY BERGSTEIN THE METAVERSE CAN SHOW PROMOTIONS. COVER STORY 50 MANN REPORT | SEPTEMBER 2022

Putting the Metaverse to Work in Commercial Real Estate

For consumers, it will give us an exciting layer of embedded promo tions, loyalty-driven offers, contextually aware games and contests for venues. For owners and operators, it will give us greater insight, new interac tion with our spaces, new revenue platforms and massive amounts of new data.

What is the Opportunity?

1. Visitor/Tenant/Consumer Experience — Better experience drives productivity, engagement and ultimately greater profitability as each visitor spends more time and money onsite. Examples include augmenting property concierge applications and loyalty pro grams with layers of information along a visitor’s journey to drive more sales.

IMPROVING CUSTOMER EXPERIENCE IS KEY. COVER STORY SEPTEMBER 2022 | MANN REPORT 51

We are not discussing games and non-fungible tokens (NFTs) in your office lobby. We are discussing meaningful digital interactions layered on top of your physical property. Yes, it will have NFTs; yes, there will be digital goods and services.

2. New Media Revenue Platforms — Perhaps the greatest opportu nity for new revenue lies in a new and unlimited “metaverse” of new media experiences to offer to brands and businesses. Imagine embedding promotions throughout a property, packaging up and selling new services in situ or new advertisements overlaid in dig ital? Done properly, the inventory is unlimited, three-dimensional and incredibly profitable.

Opportunities at this digital core of our properties are focused in three sectors that either open new revenue opportunities or help to make properties run better:

We can extend the reach, utility and profitability of our buildings by layering on services that create new value. These digital services are embedded in and around our physical properties.

3. Property Productivity/Environmental Sustainability — This is perhaps the most critical of all; our next decades will see massive revision in building’s sustainability and efficiency, saving operators money and creating more productive properties. Connecting with service calls, collaborating with other technicians and sharing effi ciencies and efficiencies will, hopefully, create better outcomes for our building’s energy future. These applications make up a profitable “layer” available to our building's inhabitants. This is our “Metaverse for CRE,” and we must seize this opportunity before technology and ad networks de cide they will serve up ads in 3D in our buildings. Why the Metaverse?

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The Metaverse of Efficiency

It is commonly referred to as Smart Infrastructure, seamlessly integrating digital intelligence into physi cal spaces; it is time to put this in place. While this is brand-new technology, builders, developers and oper ators will find it somewhat familiar. Despite its sophis tication, it is relatively easy to understand and built in much the same way we are accustomed to building properties, from the ground up. First, physical properties are scanned using Lidar, a technology that uses light in much the same way we use radar. A Lidar scan creates a Digital Twin, the foundation. This scan is then translated into a highly accurate digital architecture (this is no ordinary digital twin). Computer vision helps identify and measure spaces, artificial intelligence makes our spaces “smart”, and a network of IoT-controlled devices integrates into the space. Once this is in place, we can layer ap plications, services, value and so much more on top.

Each and every one of our end users is already armed with mobile devices and an understanding of how to use this technology. Very soon, glasses will arrive and this technology will be pervasive, unavoidable, and capitalized on, everywhere.

NFTS ADD ENTERTAINMENT.

DIGITAL TWINS CAN IMPROVE EFFICIENCY.

On top of these accurate models and maps, we build integrated IoT endpoints for all appliances, and perva sive 5G WIFI for speed and delivery.

This is not rip-and-replace software; this is capital in frastructure for the future.

This metaverse can simultaneously mean many things. For owners, operators and facility managers, there is a world of business-to-business applications awaiting that will integrate layers of live data showing how to improve environmental conditions in a space in real Thistime.“Metaverse of Efficiency” will help create a more efficient, responsive property, optimizing facility man agement and providing a layer of smart information for asset operators. Is this “The Metaverse?” It surely is; this is simply a business-level Metaverse of Efficiency where the end user is a facility manager optimizing repair times in a building or a general manager doing a scan of vacan cies and tenant traffic flow.

A complete digital infrastructure married to the physical property will be in place for generations. Something like this could final ly be a great fit for the business and provide real value. It is obvious that our properties and occupants are headed in this direction.

When Will All This Happen? I spoke with a mall owner several months ago who reminded me of all the successes and failures technology has served up over the past. He also was very enthusiastic about the promise of this “Metaverse for Commer cial Spaces” because it actually seamlessly fuses with the space.

3. The Drive to Monetize Experiences Everywhere is Already Underway —Mo bile AR ad placement will grow from an estimated $1.36 billion in 2020 to $6.68 billion in 2025, wrote Marketwatch in January. Tech giants and media networks are at work monetizing “The Digital Square Foot.” The Road Ahead Our Built World had the original direct in terface with its inhabitants on a daily basis. We were the original owners of our occu pants’ bandwidth. It was compulsory that they spend time with us. We have seen that occupancy, traffic and crowds are not inevi table regardless of the location. It is time we take back some of our “screen time” with our visitors. To do this, we must deliver more value, more experience and more productivity for our spaces. After many false starts I can definitively say that I do believe the digital square foot for our physical spaces is being constructed right now and there is a world of opportuni ty it will uncover.

Photos courtesy of The Science Project AUGMENTED REALITY MARRIES THE PHYSICAL AND DIGITAL.

2. Augmented Reality is Officially an Embed ded Behavior — According to a HootSuite blog, augmented reality (AR) functions are a major part of daily Snapchat usage. In an overview for investors, Snapchat claimed that over 200 million (or 63%) of the platform’s daily active users engage with AR features, like filters, every day. What was once thought of as innovative cutting-edge behavior is now ingrained into everyday lives.

I would like to offer up a few data points and facts:

1. Our Buildings are Becoming Digital As sets — The digital twin market is expect ed to grow from $6.9 billion in 2022 to $73.5 billion by 2027, according to Mar kets and Markets; it is expected to grow at a CAGR of 60.6% from 2022 to 2027. Soon all assets will have this Digital Twin; how will this be monetized?

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2100 ATTORNEYS | 41 LOCATIONS WORLDWIDE ˚ GREENBERG TRAURIG, LLP | ATTORNEYS AT LAW | WWW.GTLAW.COM Helping clients identify opportunity and manage risk. With five decades of business-driven legal experience and more than 60 real estate lawyers serving the New York real estate market. Greenberg Traurig, LLP | MetLife Building | 200 Park Avenue | New York, NY 10166 | 212.801.9200 The hiring of a lawyer is an important decision and should not be based solely upon advertisements. Before you decide, ask us to send you free written information about our qualifications and our experience. Prior results do not guarantee a similar outcome. Greenberg Traurig is a service mark and trade name of Greenberg Traurig, LLP and Greenberg Traurig, P.A. ©2019 Greenberg Traurig, LLP. Attorneys at Law. All rights reserved. Attorney advertising. Contact: Robert J. Ivanhoe, in New York at 212.801.9200. °These numbers are subject to fluctuation. Images in this advertisement do not depict Greenberg Traurig attorneys, clients, staff or facilities. 32969

Michael Beckerman CEO, CREtech

One factor that is decidedly not holding back progress in proptech is capital. Investment in 2021 alone was $32 billion, with over $50 billion in venture capital being placed in new startups between 2019 and 2020. However, the availability of funding is only one part of the equation. The most cutting-edge soft ware, such as what is needed to create and maneuver a digital twin model, or program

Despite the veritable explosion the real estate tech landscape has experienced over the past 10 years, that growth must be accompanied by the talent needed to handle these new companies’ operations. As is often the case with emerging technologies, there is a gap between the latest technological advance ments and those who express the most interest in taking an active role in their implementation. This gap has historically been generational, although issues such as the male-dominated nature of the industry, the general volatility of startups and the skill sets required to navigate this tech have also posed challenges to the industry’s ability to attract talent.

By Michael Beckerman, CEO, CREtech automated tools, is relatively new and requires a significant amount of training. While univer sities today offer highly specialized degrees in this field, they have only begun doing so re cently, severely limiting the number of individ uals who are qualified to fill these technology positions. This is exacerbated when consid ering geography; New York, Boston and San Francisco represent significant tech hubs, meaning that qualified graduates are often faced with relocating in order to participate in the proptech scene. Tech startups must also overcome the hurdle of attracting candidates who are qualified, interested and located within proximity. This challenge is nothing new to startups, as they have also been facing similar challenges when appealing to investors. In recent years, inves tors have been gravitating toward more estab lished real estate tech companies over start ups, likely drawing upon the role these firms played in bringing the CRE industry through the height of the pandemic. In the first half of 2021 in particular, pre-seed and seed funding rounds received roughly 8% of venture capital funding, which has generally been the case since 2000, according to a recent JLL report. Conversely, between 2006 and 2008, Series C funding jumped from approximately 10% to 70%, a figure which has been maintained to this day, barring occasional dips.

As it pertains to appealing to talent, today’s proptech startups must be able to show lon gevity and resilience. The number of these startups has risen 300% from 2,000 to nearly 8,000 since 2011, and many have questioned whether this growth is sustainable. While many — myself included — believe that mass consolidation is around the corner and nec essary, the fact remains that startups have a failure rate of around 90%, per the Small Busi ness Administration. Knowing this, it can be difficult for new members of the workforce to place their faith in all but the most promising or established tech companies. The demographics of both the real estate and tech industries also pose barriers. Be cause real estate tech is positioned at the intersection of both, the real estate tech industry is similarly one-sided today. In fact,

FEATURES 56 MANN REPORT | SEPTEMBER 2022

Longevity and Demographics

The Only Thing Holding Back Real Estate Tech is Talent

Capital is Not the Issue

only between 5% and 20% of real estate tech founders are women, per a 2019 Forbes arti cle. Further, nonprofit Transparent Collective found that only 1% of venture capital startup founders are Black, meaning that of the 10,400 companies that received funding in 2019, fewer than 400 are Black-founded. This lack of representation can make the prospect of entering the field particularly daunting for members of minority communities.

A Promising Outlook

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Overall, the real estate tech industry has faced unique challenges in acquiring talent that stem from the unique and evolving nature of the real estate tech industry itself. However, recent years have been particularly transform ative for the industry due to the pandemic’s effect on the corporate landscape, leading to increased funding, greater necessity and an overall heightened reliance on technology in facilitating how business is conducted. With all of these factors combined, real estate tech is positioned to attract significantly more tal ent in the coming months and years and bring greater diversity to a blooming industry.

Fortunately, there may be solutions on the horizon. Because the real estate tech industry has thrived over the past two years and has seen tremendous surges in investment, the stage is set for the industry to make a signifi cant leap forward in terms of which companies are able to remain viable for longer, especially once consolidation begins to occur on a wide scale. Additionally, the corporate landscape is far different now from it was even as recently as 2019, with the adoption of work-from-any where and hybrid models fueled by the same technology spurred by many of these real estate tech companies. This greater flexibility extends to both the manner that employees conduct business as well as who the employ ees are themselves. As an example, it is no longer as necessary for interested candidates to be in proximity to their employer’s physical location in order to join the workforce. Final ly, the increased reliance on tech solutions in today’s CRE landscape means that more real estate tech companies will likely be able to compete with even the more established firms, leading to a healthy competition that will encourage more candidates to consider a career in property technology.

How Traffic Signal Priority Technology Contributes to Increased Urban Mobility and Improved Property Values

By Dustin Harber

The transit signal priority system plays a significant role in providing the enhanced benefits of BRT.

TECHNOLOGY

Helping Our Neighborhoods

With these advanced transit signal priority technolo gies in place, urban regions and community hubs can enjoy a renaissance of mobility options, connecting residents with desired transit locations in a more effi cient and environmentally friendly way. What’s more, the improved way of life will help these communi ties flourish in ways that translate into prosperity for everyone.

Many urban locations are making significant invest ments into transportation and transit systems. These implementations are significant because they can link residents with critical infrastructure, such as schools and universities, hospitals and health networks, em ployment, retail and recreational activities. In addition to Cleveland, the study reviewed BRT systems in other regions, including Boston, Massa chusetts; Chicago, Illinois; Eugene, Oregon; Everett, Washington; Kansas City, Missouri; Los Angeles, California; Miami, Florida; Oakland, California; Pittsburgh, Pennsylvania and Seattle, Washington.

The number of American cities currently facing a housing crisis increases by the day, generating move ments to demand the densification of single-fam ily zoned neighborhoods and the shift away from car-centric development patterns. Many densification efforts call for enhanced transit service to encour age residents to ditch cars in favor of transportation options that support denser development. Modern transit signal priority systems can serve as a tool to rapidly expand and enhance transit service without costly transportation infrastructure improvements that might hinder densification efforts.

These smart traffic platforms allow cities to build upon current investments in infrastructure to deploy city-wide TSP, avoiding the need to add the bulky and expensive field equipment of conventional signal priority systems. To enable safe and secure connec tions with traffic signals, each city requires just one device for use that is a computer that resides at the “edge” and serves as the protective link between city traffic signals and the platform. It is designed to securely manage the information exchange between traffic lights and the cloud platform. It is the only additional hardware necessary and, depending on the existing city network configuration, the platform may receive vehicular data directly or via the city’s network using secure connections. Communities benefit from having smarter infrastructure that adapts to real-time traffic conditions instead of being stuck with statical ly programmed infrastructure that quickly becomes ill-suited to the dynamic nature of traffic.

Conventional transit signal priority systems availa ble today typically consist of two parts: a unit in the traffic cabinet and another unit placed on the vehicle. The transit priority logic is the same, regardless of the detection and communication medium. When a ve hicle is within predetermined boundaries, the system places a request to the signal controller for prioritiza tion. Since the original systems used fixed detection points, signal controllers were configured with static estimated travel times. Since travel times are depend ent on several environmental factors, the industry implemented GPS-based, wireless communication systems. With this method, vehicles found within de tection zones replace the static detection points and the vehicle’s speed is used to determine arrival time.

How Transit Signal Priority Assists BRT Bus rapid transit is somewhat different from tradi tional bus lines because it offers dedicated service lanes, added frequency of routes, traffic signal priority and elevated platforms and stations that travelers can easily access.

The study showed that overall residential property values in Cleveland grew by nearly 15% in areas in close proximity to the Greater Cleveland Regional Transit Authority’s seven-mile HealthLine, which runs along Euclid Avenue from downtown Cleveland through University Circle to East Cleveland. The rate of value improvement was approximately 41.5% when isolated to the value of multifamily residences.

A recent study from Ohio State University has re vealed that bus rapid-transit lines (BRT) can actually help increase the property values of multifamily locations in cities. The study was initially located in Ohio, and Cleveland was one city to show this type of property value improvement.

Many urban and municipal leaders today have been inquiring about this technology, what it is and how it works. This interest is now driven by the fact that BRT lanes currently utilize either radio or GPSbased Transit Signal Priority (TSP). However, AI/ cloud-based TSP is now leading the way in helping cities improve their mass transit systems to alleviate gridlock and traffic congestion, improve on-time performance of mass transit networks, assist in the arrival of emergency vehicles and increase rider levels that have socioeconomic and environmental benefits.

As a result of drastically improved processing power, transit system technologies can now take advantage of the huge gains made in the areas of AI and ma chine learning that were previously reserved for wide ly known tasks such as image recognition, and apply them to longstanding traffic problems to generate insight on the mix of density, traffic and overall rate of flow in a region. These optimized algorithms can analyze large volumes of data to learn not only local traffic patterns but also cross-region traffic flows, nea bling the redistribution of traffic flow more optimally for all road users at all times of day. AI-powered transit signal priority systems leverage the power of the cloud to track and learn the patterns of transit vehicles to inform intersections of the arrival of these vehicles, giving them frictionless travel along routes while minimizing disruption to general traffic. Mu nicipal transit systems can access these new insights from these systems to make better decisions that serve riders, their operations and their communities.

In addition to Cleveland, the study reviewed BRT systems in other regions, including Boston, Massa chusetts; Chicago, Illinois; Eugene, Oregon; Everett, Washington; Kansas City, Missouri; Los Angeles, California; Miami, Florida; Oakland, California; Pittsburgh, Pennsylvania and Seattle, Washington.

Now that transit signal priority systems can run primarily in the cloud, we’re entering an era where transit agencies and partner traffic agencies can have their cake and eat it too; communities that want to make transit more reliable and accessible to their rid ers no longer need disrupt their neighbors by tearing up their roads or sink precious community dollars into expensive signal or transit equipment. Transit agencies can leverage data from cloud-based transit signal priority systems to show communities where infrastructure improvements make sense. Perhaps most importantly, advanced transit signal priority systems can empower transit agencies to demonstrate meaningful progress toward climate emissions goals by minimizing transit vehicle braking and idling time at red lights and utilizing transit vehicles more effec tively in operations planning.

TECHNOLOGY SEPTEMBER 2022 | MANN REPORT 59

Dustin Harber is the chief technology officer of Lyt, a pro vider of cloud-based smart traffic solutions.

Helping Our Neighborhoods

The transit signal priority system plays a significant role in providing the enhanced benefits of BRT.

How Transit Signal Priority Works Smart traffic light systems and the cloud technology platforms they operate on are now designed to man age and predict traffic more efficiently, which can save a lot of money and create more efficiencies not only for the cities themselves but also for drivers. Modern AI and machine learning technology can process highly complex data and traffic trends and suggest optimum routing for drivers in real time based on specific traffic conditions. Conventional transit signal priority systems availa ble today typically consist of two parts: a unit in the traffic cabinet and another unit placed on the vehicle. The transit priority logic is the same, regardless of the detection and communication medium. When a ve hicle is within predetermined boundaries, the system places a request to the signal controller for prioritiza tion. Since the original systems used fixed detection points, signal controllers were configured with static estimated travel times. Since travel times are depend ent on several environmental factors, the industry implemented GPS-based, wireless communication systems. With this method, vehicles found within de tection zones replace the static detection points and the vehicle’s speed is used to determine arrival time.

Dustin Harber is the chief technology officer of Lyt, a pro vider of cloud-based smart traffic solutions.

Timothy Menard is the founder and CEO of LYT, provider of cloud-based smart traffic solutions. LYT makes traffic lights smart by enabling them to see and respond to traffic.

AI promises to streamline traffic flow and re duce congestion for many of today’s busiest roadways and thoroughfares. Smart traffic light systems and the cloud technology plat forms they operate on are now designed to manage and predict traffic more efficiently, which can save a lot of money and create more efficiencies not only for the cities them selves, but also for individuals. AI and ma chine learning can process highly complex data and traffic trends and suggest optimum routing for drivers in real-time based on spe cific traffic conditions.

Across the U.S., traditional mass transit sys tems including buses, subways and personal vehicles have returned to struggling through gridlock, rider levels and congestion. How ever, advanced AI and machine learning solutions built on cloud-based platforms are being deployed to reduce these frustrations.

How AI and Machine Learning Are Reshaping the Way Transit Systems Move Traffic Patterns

AI’s Current Impact These technologies are already being de ployed around the country. As one example, the Santa Clara Valley Transportation Author ity (VTA) in partnership with the City of San José, California has been piloting a cloudbased, AI-powered transit signal priority (TSP) system that utilizes pre-existing busfleet tracking sensors and city communi cation networks to dynamically adjust the phase and timing of traffic signals to provide sufficient green clearance time to buses while minimally impacting cross traffic.

The cloud-based transit signal priority system combines asset management and automation to produce a system capable of providing services to an entire region. Un like hardware-based systems, this platform uses pre-existing equipment and leverages

FEATURES

Exciting Transportation Opportunities with AI Transportation is one of the most important areas where modern AI provides a significant advantage over conventional algorithms used in traditional transit system technology.

As a result of drastically improved processing power, transit system technologies are now used in various IoT (Internet of Things) de vices to achieve real-time image recognition and prediction that took place in legacy data centers during the last half century. This new decentralized-focused architecture helps in crease the implementation of machine learn ing and AI. Today’s recognition algorithms offer enhanced insight on the mix of density, traffic and overall rate of flow. Furthermore, these optimized algorithms can leverage data points by region, resulting in a stream lined pattern to reduce traffic problems while redistributing flow more optimally. Municipal transit systems can then make better deci sion-making power, and the control system has a much higher degree of failure tolerance as was previously demonstrated in legacy hub-and-spoke systems.

By Timothy Menard Timothy Menard

f the many ways artificial intelli gence (AI) and machine learning are poised to improve modern life, the promise of impacting mass transit is significant. The world is much different compared with the early days of the pandemic, and people around the world are again leveraging mobility and transit systems for work, leisure and more.

Because the new platform leverages pre-ex isting infrastructure, it required no additional hardware installations inside traffic signal cabinets or buses. And unlike traditional, location-based check-in and check-out TSP solutions, the platform processes live bus lo cation information through machine learning models and makes priority calls based on estimated times of arrival. The platform has so far improved travel times on VTA’s Route 77 by 18% to 20% overall, equating to a fiveto six-minute reduction in signal delay.

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Sophisticated Process to Prioritize Traffic

SEPTEMBER 2022 | MANN REPORT 61

The system’s method of placing priority calls to traffic signals is more sophisticated and is not constrained to fixed-point locations. Unlike the current state-of-the-art of placing priority calls from the detection of buses at specific locations that starts a pre-pro grammed time of arrival, this platform uses a “vectorized” approach. In mathematics, a vector is an arrow representing a magnitude and a direction. In this platform’s software, the arrow points in the direction of the traffic light and the magnitude is the travel time. When the system is set up, traffic signals, bus routes and bus stops all get a digital representation on this vector. This ends up producing a digital geospatial map where software is then able to track bus progres sion along bus routes. This results in a sys tem that can dynamically place transit calls regardless of its location. Instead, the system makes precise priority calls based on the expected time of arrival which is the basis for all TSP check-in calls supported by all signal controller vendors. And due to the nature of the tracking algorithm, any significant changes to ETA can be adjusted. For exam ple, if a bus was predicted to skip a bus stop but didn’t, the system will detect the change and adjust the priority call accordingly. The combination of AI, machine learning and cloud-based technology all have great potential to not only improve the current mass transit system but reimagine it alto gether. This advanced technology is already proving how it can improve coordination between GPS, navigational apps, connect ed autos and even taxi and ride-sharing services to efficiently combine into a sin gle transit entity based on real-time data.

In the not-too-distant future, it is expected that connected self-driving cars and trucks will be more prevalent on the roads and highways, offering even greater potential for AI to reduce both the duration and risk of rapid mobility.

TECHNOLOGY cloud technology to facilitate operations. This removes the need for vehicle detection hardware at the intersection because vehi cle location is known through the CAD/AVL system. This enables both priority calls from greater distances away from signals and priority calls coordinated among a group of signals. Furthermore, the system provides real-time insights on which buses are cur rently receiving priority along with daily re ports of performance metrics. The advanced transit signal priority systems available today consist of two parts: a unit in the traffic cabinet and another unit placed on the vehicle. The transit priority logic is the same, regardless of the detection and com munication medium. When a vehicle is within predetermined boundaries, the system plac es a request to the signal controller for pri oritization. Since the original systems used fixed detection points, signal controllers were configured with static estimated travel times. Since travel times are dependent on several environmental factors, the industry implemented GPS-based, wireless commu nication systems. With this method, vehicles found within detection zones replace the static detection points and the vehicle’s speed is used to determine arrival time. The platform allows cities to build upon cur rent investments in infrastructure to deploy citywide TSP. To enable safe and secure connections with traffic signals, each city requires just one device for use that is a com puter that resides at the “edge” and serves as the protective link between city traffic signals and the platform. It is designed to securely manage the information exchange between traffic lights and the cloud platform. It is the only additional hardware necessary, and depending on the existing city network con figuration, the platform may receive vehicular data directly or via the city’s network using secure connections.

Overcome ChallengesModern

The Problems Multifamily Owners Face Today

How Proptech Can Help Multifamily Real Estate Owners

Problem 2: Operational Efficiencies

Here’s how proptech can help cut costs, im prove the resident experience, save time and maximize NOI.

FEATURES W hen many people think of real estate, innovation and technology usually aren’t their first thoughts. In fact, real estate has historically been behind the times when it comes to adopting technology. But that’s all changing thanks to modern real estate innovators and disruptors. By embracing technological innovations including analytics, sensors and smartphones, property technology (proptech) companies are taking real estate into the 21st century and beyond. According to the market intelligence platform CB Insights, investments in proptech grew from $186 million in 2011 to a whopping $8.9 billion in 2019. Undoubtedly, proptech is the next big thing in real estate — and it has the power to help multi family property owners overcome big challenges.

There are plenty of challenges affecting multi family owners these days, but perhaps the three biggest are property management turnover, op erational efficiencies and revenue growth.

Problem 1: Property Management Turnover

Your property management staff handles end less paperwork, facilitates move-ins and moveouts, oversees property access permissions, works with vendors, coordinates maintenance requests, manages package deliveries and so much more. It’s a difficult job rife with tedious, manual processes that lack much-needed auto mation. And turnover is especially concerning considering that management staff keeps the building running smoothly and contributes sig nificantly to cultivating the resident experience.

Problem 2: Operational Efficiencies

There are plenty of challenges affecting multi family owners these days, but perhaps the three biggest are property management turnover, op erational efficiencies and revenue growth.

On a granular level, building operations encom pass everything from property access control and maintenance repairs to delivery manage ment and lease administration. When you zoom out to view the bigger picture, you see that these processes create the keystone to your success.

Today, multifamily apartment staffing suffers an annual turnover rate of around 33%, which is well above the national average of about 22%. What’s causing property managers to quit? Job-related stress and burnout are perhaps the leading caus es of turnover. And it’s easy to understand why.

According to a survey conducted by the National Apartment Association (NAA) and ndp | analyt ics, staffing and recruitment are the biggest con cerns plaguing multifamily professionals. Wheth er you have an in-house property management team or work with a third-party company, high employee turnover is hurting your bottom line. Today, multifamily apartment staffing suffers an annual turnover rate of around 33%, which is well above the national average of about 22%. What’s causing property managers to quit? Job-related stress and burnout are perhaps the leading caus es of turnover. And it’s easy to understand why. Your property management staff handles end less paperwork, facilitates move-ins and moveouts, oversees property access permissions, works with vendors, coordinates maintenance requests, manages package deliveries and so much more. It’s a difficult job rife with tedious, manual processes that lack much-needed auto mation. And turnover is especially concerning considering that management staff keeps the building running smoothly and contributes sig nificantly to cultivating the resident experience.

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How Proptech Can Help Multifamily Real Estate Owners Overcome ChallengesModern

Aaron Rudenstine is chief executive officer of ButterflyMX, a provider of access control technology for multifamily, commercial, gated communities and student housing properties. He was a co-founder of Citymaps, which was acquired by TripAdvisor in 2016, and is an investor in Reddit, Button, Omaze, Henry The Dentist, Parallel Wireless, Clear Ballot, Pinata and FilmRise.

Everyone wants to maximize revenue but increas ing NOI and returning a property’s performance to pre-pandemic levels pose big challenges. Of particular concern are mass movements away from many urban areas and a shift in what renters look for in apartments (due to new remote jobs, changing lifestyles, etc). Generating revenue in these uncertain times feels especially daunting. Maximizing revenue also means differentiat ing your building from others. According to RealPage, demand for apartments is espe

FEATURES

Undoubtedly, proptech is the next big thing in real estate — and it has the power to help multi family property owners overcome big challenges. Here’s how proptech can help cut costs, im prove the resident experience, save time and maximize NOI.

The Problems Multifamily Owners Face Today

W hen many people think of real estate, innovation and technology usually aren’t their first thoughts. In fact, real estate has historically been behind the times when it comes to adopting technology. But that’s all changing thanks to modern real estate innovators and disruptors. By embracing technological innovations including analytics, sensors and smartphones, property technology (proptech) companies are taking real estate into the 21st century and beyond.

You might not be the person handling these daily operational tasks, but you should be focused on streamlining them. That means sourcing reputable vendors, automating labor-intensive processes and cutting costs where possible — which is a tall order, especially now amid labor shortages, high turnover and market volatility.

By AARON RUDENSTINE

Problem 3: Maximizing Revenue

At the end of the day, your NOI depends on smooth building operations. Improving opera tional efficiencies will boost your bottom line.

By AARON RUDENSTINE

At the end of the day, your NOI depends on smooth building operations. Improving opera tional efficiencies will boost your bottom line. You might not be the person handling these daily operational tasks, but you should be focused on streamlining them. That means sourcing reputable vendors, automating labor-intensive processes and cutting costs where possible — which is a tall order, especially now amid labor shortages, high turnover and market volatility.

Problem 1: Property Management Turnover

Maximizing revenue also means differentiat ing your building from others. According to RealPage, demand for apartments is espe

According to the market intelligence platform CB Insights, investments in proptech grew from $186 million in 2011 to a whopping $8.9 billion in 2019.

Increase Employee Retention

○ CRM software: Invest in a CRM (customer relationship management) platform to keep leads organized and stay on top of communication with prospects.○Self-guided tour technologies: With self-guided tours, prospects can view your building on their own schedule — and staff members don’t have to take time out of their busy days to lead tours.

Boost Resident Acquisition

According to a study by Wakefield Research, 86% of millennials are willing to pay more per month to live in a smart apartment — which gives wise property owners the chance to ride a market trend while streamlining building opera tions and reducing operating expenses.

Believe it or not, ensuring simple yet secure property access can help im prove the resident experience, cut costs and save time for staff. In fact, imple menting access control is one of the most effective ways to boost your NOI.

For example, many property owners have installed smart pipes equipped with sensors that can detect potential leaks, exchange information and talk to each other. By analyzing the data, a smart pipe system can notify you before structural failure happens so you can send in a mechanic before you have a costly problem on your hands. Another helpful tool is property maintenance software. By automating main tenance workflows with software, you’ll streamline each step of the process. Automatically, maintenance crews can receive new work request notifica tions, technicians can be assigned to requests and management or owner ship is notified when maintenance is complete — there is no manual work at all.

Proptech solutions that can boost resident acquisition efforts include:

Retaining your staff helps maintain a positive resident expe rience and reduces expenses associated with recruiting, hiring and training new staff members. The key to retain ing property staff is making their jobs easier through automation. Modern proptech makes building au tomation a breeze, saving management time and hassle. You can automate building processes by: ○ Adding a controlled-access package room to expedite the de livery process and spare staff the hassle of accepting, storing and distributing deliveries. ○ Adopting robust prop erty management soft ware, which everythingstreamlinesfromleaseadministrationtorentcollection.

Streamline Building Maintenance

Simplify Property Access

Staying on top of building maintenance is vital to keeping your property safe, reducing liability, saving money on costly repairs and retaining residents. And proptech can help you keep your building in tip-top shape.

Think about it: your residents want an easy way to let in their guests and deliv ery carriers. Your staff is sick of spending hours vetting visitors or organizing mountains of delivered packages. Even if you have a staffed front desk, their time is better spent offering personalized services to residents. And outdated access solutions like physical keys, key cards and fobs are a nuisance and an unnecessary expense.

TECHNOLOGY SEPTEMBER 2022 | MANN REPORT 63

More multifamily properties are investing in smart technology by the day — and with good reason. As you’ve seen, proptech today can help you over come the challenges of inefficient building management, employee turnover, resident acquisition and lackluster NOI. Who knows what it can help you overcome in the future?

How Proptech Can Help You’re all too familiar with the problems afflicting the industry today. Luck ily, there’s a property technology solution for virtually every frustration you’re facing.

Proptech solutions like smartphone-powered video intercoms and access control systems save you time and money by empowering residents to man age access for themselves and their visitors right from their smartphones. These systems offer a convenience and versatility that many residents are finding hard to live without — in fact, residents will even pay more for them.

The success of your investment hinges on maintaining a low va cancy rate. And while there are steps you can take to reduce tenant turnover, you can’t eliminate it altogether. So, it’s important to put am ple effort into your resident acquisition strategies — and your best bet is to invest in technologies designed to simplify those tasks.

cially high right now, but what will make a renter choose your building over the competition?

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66 MANN REPORT | SEPTEMBER 2022

A lthough New York City suf fered immensely during the COVID-19 pandemic, the West Village has rebounded nicely. Businesses continue to open, while the residential real estate market outpaces the competition. However, as we transition into a post-pandemic environment, locals question their community’s future. Will these trends continue? Or will the real estate mar ket bust, and will retailers be forced to vacate due to growing economic concerns?

Originally built in 1912, [the hotel] has been lovingly restored and reimagined for travelers and locals alike. [It] is surrounded by cultural institutions, animated neighborhood streets, and some of the city’s most exciting shops and restaurants,“ according to the building’s website. This exciting new establishment also features three new restaurants, includ ing a grill, a corner-tavern-style bar and a cocktail lounge. In addition to these hot spots, several new restaurants have opened in the West Village, including Bella Dea Wine + Raw Bar, an in novative concept specializing in sustainable seafood and low-intervention wines. Orig inally a pandemic pop-up, Bella Dea is the East Coast outpost of Santa Monica-based Crudo e Nudo and is transforming the local restaurant scene by meeting the newest New restaurants have come to the neighborhood.

FEATURES

About the West Village With its gorgeous blend of 19th-century brownstones, cobblestone streets and treelined sidewalks, the West Village has become a popular setting for contemporary film and television. Because of its inspiring atmos phere, the neighborhood attracts artistic vi sionaries and features an abundance of small

Nathaniel Mallon managing partner, Verada RetailBy Nathaniel Mallon art galleries, quaint bookstores and charming cafes. With an endless number of activities, premier shopping, access to transit and the world’s most sought-after restaurants, the West Village is considered one of the most coveted neighborhoods in New York City. Post-Pandemic: The West Village True to its history, the West Village continues to be a site of change and evolution within the city, even in a post-pandemic era. Over the past year, both residents and small busi nesses have enjoyed a sort of renaissance following two years of social distancing during the pandemic. Gentrification has brought a new generation of restaurateurs and retailers, enhancing the scene the area has already established. Popular standbys like Dimes Square, Clan destino, Metrograph and Coming Soon are being joined by new retailers such as Susan Alexandra, Colbo, Desert Vintage and Le Dive. Additionally, in anticipation of in creased tourism, Nine Orchard, a 14-story ho tel featuring 116 guest rooms, is opening. The hotel is transforming an existing landmark, the former Jarmulowsky bank building, “into an elegant hotel and culinary destination …

What’s Happening in The West Village in a Post-Pandemic World?

Taking a closer look at both trends — a booming real estate market and thriving food and beverage scene — it appears that West Village residents, landlords and businesses can continue comfortably knowing there is no immediate downturn foreseeable in their future.

Photos courtesy of Verada Retail

The eternal Village Vanguard Small boutiques draw shoppers

Furthermore, attention to newer amenities within the West Village has also been at the forefront of local developers. For example, construction on Gansevoort Peninsula Park, a new, 5.5-acre public recreational space on the Hudson River waterfront, is progressing nicely. Located next to Pier 53, directly across from the Whitney Museum of American Art, the park will feature a public beach, a soccer field, a children’s playground, kayak slips, a salt marsh and a dog run, as well as viewing platforms and verdant landscaping. The park’s southern edge will be home to David Hammons’ Day’s End, a skeletal outline of a pier shed built over the Hudson River on the former site of Pier 52. What Does the Future Hold? The West Village offers something for every one, including lush parks for kids and the outdoorsy type, trendy restaurants for food ies, and celebrity sightings for pop culture fans. Increasing property values and recent real estate developments continue to attract and support new residents and businesses. Whether the real estate market drove the food and beverage scene or vice versa, the question is a moot point. The reality is that whatever prompted this shift in the historic West Village has catapulted a transformation that residents, both current and prospective, can look forward to.

SEPTEMBER 2022 | MANN REPORT 67

Accordingsupply.torecent

The continuation of new retailers in the area has increased demand for residential units, attracting some of the top developers in New York City. Whether it is just coincidence or a direct correlation is insignificant — the critical fact is that the residential market in the West Village has seen a drastic trans formation since the onset of the pandemic, with housing prices soaring as demand surpasses data from Redfin, “In April 2022, West Village home prices were up 14.4% compared to last year, selling for a median price of $1.9 million. On average, homes in West Village sell after 60 days on the market compared to 120 days last year. There were 86 homes sold in April this year, down from 124 last year.” Sale prices are not the only aspect of the residential market that spiked; West Village rents also soared. Redfin revealed that the average for a 1-bed room in the West Village is currently renting for $4,495, a 22% increase compared to the previous year. Furthermore, “Over the past month, the average rent for a studio apart ment in West Village increased by 14% to $3,995. The average rent for a one-bedroom apartment remained flat, and the average rent for a two-bedroom apartment increased by 8% to $6,800.”

COMMERCIAL demands of local consumers. The restaurant currently shares its West Village home with Breakfast by Salt’s Cure, an American diner recognized as one of the hottest breakfast spots in the West Village.

Real Estate in the West Village

One of the most recently closed transactions making headlines in the West Village is the sale of a mixed-use building at 35 Bedford St. A pair of limited liability companies tied to Abby Modell, sister-in-law of Mitchell Modell, the former CEO of the now-defunct Modell’s Sporting Goods, purchased the commercial asset for $31 million. This six-story building is in the heart of the neighborhood and in cludes 33 apartments and three retail units. Responding to rising prices and ongoing supply, developers are taking action. A joint venture of 15 Central Park West developers plans to build a $1 billion luxury tower in the West Village. Having recently purchased 570 Washington St., a 1.3-acre vacant lot between Houston and Clarkson on the West Side Highway, developers plan to erect a $1 billion-plus, 36-story, super-luxury condo tower featuring open river and skyline views. Apartments will be priced in the $5,000-persquare-foot-range, which is unprecedented in the downtown area. While the vacant parcel traded for $350 million — an extreme price for even New York standards — de velopers are optimistic that this new devel opment will attract some of the wealthiest people in the tech industry.

Installation is also nearing completion on 76 Eighth Ave. Located at the intersection of West 14th Street, this 120-foot, 10-story com mercial structure features a decorative steel façade and borders the Meatpacking District, Chelsea and West Village neighborhoods. With 30,000 square feet of office space and ground-floor retail, the building is close to several restaurants, bars and retail spaces and offers quick and easy access to Chelsea Market, the High Line and Hudson River Park.

Lending has been volatile lately, to say the least. Here are some trends we’re seeing:

nities for attractive risk-adjusted returns for non-bank lenders. Alternative lenders that can move quickly and efficiently will succeed in today’s volatile market. Given that banks and other financial institutions continue to scale back their lending, many developers unable to secure bank financing have begun to seek alternative solutions to finance and re-fi nance their projects. Further, more owners are refinancing as they face the inability to bring their business plans to fruition due to rising costs and prolonged sales periods.

We predict that banks, specifically, will scale back their lending activity in the second half of 2022. Economic uncertainty and a rising cost of capital make it more difficult for banks to be competitive in the lending market. In turn, opportunities will arise for alternative lenders who can finance areas of the market where banks no longer feel comfortable.

FEATURES 68 MANN REPORT | SEPTEMBER 2022

Overall, a more challenging investment environment has led to less transaction volume in 2022, yet the future holds opportu

To fill this void, alternative lenders can move fast to provide creative and flexible financing solutions to distressed borrowers and find success in the current market.

Five Trends

Due to the increased risks present today, it’s critical that these alternative lenders carefully assess real estate assets on a case-by-case basis to understand the true value of the collateral. Lenders across the board will be come more conservative to ensure that their loan basis will be secure even in a downside scenario. However, capital necessary to ac

Banks will scale back their lending to commercial real estate assets. Commercial real estate owners and developers depend highly on borrowing cash, as the construc tion of large properties requires millions of dollars of investment with no revenue being generated for years at a time while a project is being completed. Historically, banks have dominated the origination of loans to com mercial real estate developers, owners and investors by lending money at lower rates than competitors on high-quality assets in prime However,locations.intimes of uncertainty such as the COVID-19 pandemic, banks tend to get more conservative and tighten their underwriting standards. For example, banks pulled back on financing many grade-A real estate pro jects, historically safe investments, creating an opportunity for alternative lenders such as REITs, finance companies and private equity funds to step in and lend with a higher cost of capital to account for the added risk.

However, due to the recent 40-year high infla tion, recession concerns and rising interest rates, real estate owners and developers are feeling more pressure to complete projects profitably. Consequently, lenders are begin ning to tighten their underwriting standards and will more cautiously monitor their bor rowers’ ability to pay off loans in a higher rate environment and slowing economy.

Ran Eliasaf, founder and managing partner at Northwind Group

ByCommercialinLendingRanEliasaf Bank activity in the space came roaring back, accounting for 38.1% of commercial loan closings in Q2 2022, up from 27.5% in Q1 and 10% from a year ago, according to data from CBRE. As the economy reopened, banks regained confidence in the real estate sector.

COMMERCIAL SEPTEMBER 2022 | MANN REPORT 69

quire and construct property must be priced for developer’s profit or development will stagnate in coming years. Given the current housing shortage across the U.S., it is nec essary for alternative lenders to continue to fund multifamily projects to prevent further price increases due to low supply.

Look for more office-to-residential con versions. Especially in the United States’ largest cities, office-to-residential conver sions will continue to be a popular area for real estate investment. Due to the continued popularity of working from home, office va cancy remains high in cities including San Francisco and New York. Many companies have chosen to either scale back on the amount of office square footage they require or have implemented no plans to return to the office at all. However, due to lack of supply and in creased demand, condo prices and rents in multifamily buildings have skyrocketed since 2020, with less than 2% rental vacancy in New York City. Currently, the large unmet need for housing across the United States brings issues that are more intense in cities with scarce land and government regulation restricting the amount of ground-up develop ment opportunities available. Thus, there are many opportunities for office-to-residential conversion projects. While a good idea on paper, conversions can be very expensive and must overcome structural and financial challenges along with zoning and other regulations. Often, it's far less expensive to build housing from scratch and only certain kinds of buildings can be converted successfully. For example, the floor plate of an existing building cannot be too large because to be converted into res idential apartments, units need to be close to windows. However, for 50 years, build ing the largest floor plate possible was the popular design for modern office buildings. Therefore, older, run-down buildings with smaller floor plates are the best candidates for conversion. Despite these challenges, office-to-apart ment conversions created a total of more than 13,000 units nationwide from 2020 to 2021, according to data from RentCafe. While this isn’t enough to solve the housing short age, we believe that the strategy is becoming New York City will see more office-to-residential conversions

More borrowers may fail to make mortgage payments in 2023.

FEATURES 70 MANN REPORT | SEPTEMBER 2022

The rise in popularity of ARMs demon strates that Americans are struggling to find affordable housing and are desperate for al ternative ways to finance their homes during a period of rising costs and limited housing supply. When used appropriately, ARMs can serve as a useful tool to give Americans more flexibility and freedom to purchase homes. ARMs can help homebuyers save in the near term, but it’s important to note that they result in higher payments over the life of the mortgage. It is critical that home buyers and lenders alike approach ARMs with Whilecaution.useful, ARMs are not a solution to the current housing shortage. Instead, they serve as a short-term fix to larger hurdles such as unsustainably low housing availability, rising interest rates, higher material and building costs and government regulation, which discourages homebuilding and multifamily investment in many cities. However, with mortgage rates rising we believe this trend will continue and it’s important that lenders carefully assess the financial stability of their borrowers, both large and small.

more and more de-risked. Developers are beginning to realize that working from home is no longer a trend, but rather a lasting impact of the pandemic. Additionally, gov ernment officials are easing restrictions on these conversions. NYC Mayor Eric Adams, for example, recently tried to encourage more investment in the conversion space. Increased appetite for residential apartments coupled with a lack of demand for office space leases suggests that more real estate developers will take on these projects in the coming years. Defaults rates by commercial lenders will rise. While the CMBS delinquency rate skyrocketed to 10.32% as a result of the COVID-19 pandemic, the CMBS default rate has dropped dramatically to all-time lows as of July 2022, according to data from Trepp. At just above 3%, the low delinquency rate sug gests that commercial real estate lending is largely de-risked. However, we believe that in future months we will see the default rate tick back up. The Federal Reserve is likely to continue to raise rates in the coming months, which will add more pressure to existing and future projects. Additionally, we believe the unprec edented amount of liquidity throughout 2020 and 2021 led to loose underwriting standards and overinvestment in some markets, but we have yet to see a correction in the real estate market in the same way that we have seen a correction in the broader market. As noted earlier, banks have become unwilling or unable to forbear notes, which will continue to cause an abundance of distressed oppor tunities to materialize if alternative lenders do not step in and bear the risk of these pro jects. Consequently, we predict that we'll see more borrowers fail to make their mortgage payments in 2023. Adjustable-rate mortgages will increase in popularity. According to the Mortgage Bankers Association, during the first half of 2022 the share of adjustable-rate mortgages (ARMs) nationwide rose from 3% to 10% of all mortgages, the highest percentage since before the 2008 housing crash. ARMs be come more popular when interest rates rise, as homebuyers are forced to turn to cheaper alternatives than traditional fixed-rate mort gages. As the Fed has increased interest rates in 2022, mortgages have become less affordable and demand for housing across the board has fallen substantially. However, ARMs are one area in the mortgage market where activity has increased.

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.

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.

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.

ONE VANDERBILT

JP MORGAN HEADQUARTERSCHASE Counsel to JP Morgan Chase in connection with various aspects of its planned itsheadquarters2.5-million-square-footredevelopmentat270ParkAvenuelocation.

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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.

BLACKROCK HEADQUARTERS Counsel to BlackRock in its 850,000square-foot lease for its planned headquarters relocation to 50 Hudson Yards. New York | Washington, DC | London | Frankfurt | friedfrank.com Attorney Advertising. Prior results do not guarantee a similar outcome. “An extremely talented real estate group with an impressively deep bench: the team is ideal for handling the most complex matters.” — Chambers USA

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.

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

Fried Frank Where major real estate transactions happen

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.

OCTOBER 3, 2022 Join us at 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 75 years go. Harry Helmsley was a founder member along with, David Rose, Irving Mann, Herb Tenzer, Alvin Schwartz and Bernard P. Day; attorneys Lawrence Wien and Harry J. Halperin, Esq.; architect Hyman I. Feldman and developer Jack D. Weiler. Real estate legends Barbara Corcoran, Aaron Gural and Louis Smadbeck have also been involved with the NRC. We have come back bigger and stronger than ever and have added a charitable arm to raise money to support NYC and with many of the other problem areas that we face now. Tickets GOLF $750 FOURSOME $3,000 DINNER & COCKTAILS $250 HONOREE Bob Knakal Chairman, NY Investment Sales Capital Markets Itinerary 8:30 ArrivalAMand Registration 9:00 GolfDinner6:00-7:00Hors5:00-6:00(SHARP)Shotgun11:15Call11:00Breakfast/BrunchAMAMtoCartsAMStartPMD’oeuvresandCocktailsPMandPresentationofWinnersandHonorees Founded in 1947 by Harry Helmsley and other leading real estate legends, the NRC is the most enduring organization of its kind in the industry. ANNUAL GOLF OUTING For more information, please penny@nationalrealtyclub.orgcontact

| BALLOON SPONSOR Sponsor’s name & logo on balloons. Reservation for one golfer. $2,000 | CIGAR SPONSOR Sponsor’s name & logo on cigar table. Reservation for one golfer. $2,000 | TEE MARKER SPONSOR Sponsor’s name & logo on tee markers per hole. Reservation for one golfer. $1,500 | PRIZE SPONSOR $1,500 | MENS/WOMENS LOCKER ROOM SPONSOR $1500 | RAFFLE SPONSOR $1500 | CLOSEST TO PIN On holes 4, 7, 11, 13 & 15 (sold separately) $1500 | LONGEST DRIVE On holes 10, 2 & 16 (sold separately) $1000 | FLAG SPONSOR: SPONSOR ONE HOLE Flag framed and sent to you after event. $500 | TEE GREEN SIGN Sponsor’s name on tee green sign. $15,000 SPONSOR OF THE DAY: SPONSOR WILL BE FEATURED AS “YOUR COMPANY NAME” PRESENTS THE NATIONAL REALTY CLUB’S ANNUAL GOLF OUTING.

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he internet is filled with sto ries of retirees selling homes and living on cruise ships, but the founders of Storylines are creating a full-time residential community scheduled to set sail in 2024.

COVID-19, which shut down the vacation cruise industry, delayed the process, but has given impetus to the concept as people re-evaluated how they want to live their lives.

In fact, the entire world will be the residents’ home. The ship will have no home port, and at times the team will offer “Residents’ Choice Days,” where they will vote on the next port of call.

The ship will spend an average of three and a half days in each port, with a minimum of an overnight docking to allow the residents time to visit. In effect, the plan is to combine a world tour, while still allowing visitors to spend each night in their own, owned bed if they wish.

Storylines’ MV Narrative ship will be 741 feet long and 98 feet wide with 547 fully furnished residences ranging from 237 to 1,970 square feet. The prices of the residences range from $1 million to $8 million for the lifetime of the vessel with a limited number of 24-year leas es available starting at $647,000. Targeting young families as well as traditional cruise goers, the MV Narrative will offer travelers

All Aboard:

“This is not just for one demographic; it really is for everybody,” Punton said. “We have a lot of families coming on board, retirees and more.”

the ability to work and have a full life as they circumnavigate the globe over three years.

With technology allowing many jobs to be performed remotely, the ship also accommo dates people who must continue to work.

“The ship is your base. It’s your home that just happens to travel,” observed Alistair Punton, Storylines co-founder.

The MV Narrative will set sail in 2024.

Storylines Developing a Residential Community at Sea 74 MANN REPORT | SEPTEMBER 2022

The team, which boasts a background in real estate, considered acquiring a ship, but decided that the needs of full-time residents required new construction built to Storylines’ specifications. The buyers helped a bit, too.

RESIDENTIAL SEPTEMBER 2022 | MANN REPORT 75

a medical clinic with a doctor, nurse, pharmacist, nutritionist and physiotherapist. A 10,000-square-foot health and wellness center will offer medical servic es including wellness visits, weight loss, an ti-aging, immune therapies, detox treatments, dietary planning, meditation room, relaxation pods and more. The facilities also include a hospital for emergency medicine and a heli copter landing pad for medical evacuations. But giving birth to a genuine citizen of the world on board? It’s not happening. Just as airlines ban flying after a certain number of weeks, pregnant residents of the Narrative will be required to depart the ship and have their babies on land.

A range of one-to-four-bedroom residences are outfitted by leading maritime design teams. Owners may choose from coastal or contemporary interior design styles. Some will come with kitchenettes and cooking options, and most have balconies. Each resi dential deck will have a lounge where owners can grab a bite or even host a dinner party. Families and owners’ guests are welcome aboard and owners can rent out their resi dences when not in use. Just as with any res idential property, owners can sell at any time. The ship also features a youth educa tion program, the first of its kind world traveling school.

“Traveling isn’t much fun, anyway, with what we’re experiencing with airports and airlines,” Punton said. “We’re taking the good parts of cruising and the good parts of traveling.”

Each deck will have lounges to encourage community. Photos courtesy of Storylines

“That’s really important for a lot of peo ple,” Punton said. “I have two kids who will be on board. What better education about Rome can you get than standing in the TheColosseum?”shipwillboast

“We went to our resident community in the early design phase; it’s a ship for the resi dents,” Punton said. “We got that feedback and put it into the ship.” Owners will enjoy an all-inclusive experience with dining, cultural enrichment program ming and wellness and fitness facilities avail able 24 hours a day. Just beginning construc tion in Croatia, the ship will boast 20 dining and bar venues, a microbrewery, marina land ing with personal watercraft, three pools with sundecks, pet exercise area, business center and a beauty salon. Religious observances also will be accommodated. Entertainment options include a 10,000-book library, movie theater, art studio and bowling alley. Active and adventurous travelers will enjoy an out door running track, full gym, yoga studio, golf simulators, dance floor and more.

Residents will be able to grill their own meals at barbecue stations.

Some 75% of the buyers thus far have come from the U.S., but interest is growing from Europe, Australia, New Zealand and Canada.

The ship has been sustainably designed with liquid natural gas propulsion (LNG), the most environmentally friendly option currently available for powering ships. Other initiatives include converting waste into energy and growing produce onboard at the solar pow ered hydroponic garden. A first-of-its kind zero waste farmer’s market will also be avail able with locally sourced products where everything is compostable or recyclable.

Andres Escobar partner and design principal at New York-based Lemay+Escobar Architecture D.P.C. FUTURE OF LUXE: Diverse, Accessible and Eco-Conscious

One no longer needs be a multimillionaire to create what is perceived as an ultra-chic and aspirational environment. This keen aesthetic vision permeates all applications of design, whether retail design, fashion/apparel, resort or home design. It’s everything.

UNDERSTATED LUXE FEATURES 76 MANN REPORT | SEPTEMBER 2022

Luxury has taken on a new meaning because you can deliver products that exude luxe but are execut ed in a more pragmatic way. But this doesn’t mean our jobs have become simpler. The combination of different cultures, new generations and changing ex pectations is creating tremendous challenges — and opportunities — for luxury designers and architects.

By Andres Escobar

hat it means for some thing to be “luxury” has dramatically changed over the years.

Money is useful, obviously, but one can still achieve a level of luxury with a limited budget, and that projection of luxury can reflect different demographics and cultures.

THE

Today, luxe has become highly segmented, highly subjec tive across cultures and without question more present and accessible in our society. Our constant exposure to luxury via imagery, even through social media, has provided means to achieve it without being overly extravagant.

Formerly, true luxury wasn’t easily obtained; it was reserved for the ultra-wealthy, perhaps even only the generationally wealthy. However, today the word has morphed into some thing a bit different.

Luxury has been borrowing from many worlds. An example of this is a product called Barrisol, a membranous finish application for ceilings, which originally was intended to be used in operating rooms. This inert product does not develop any kind of bacteria, and suddenly you see it everywhere: swimming pool ceilings, museums, private homes. The availability of unique materials is unlimited.

It’s worth noting that now, ultra-luxury is defined not only by how places look but also by how they feel. Comfort is paramount: ultra-plush mat tresses and duvets, multifunction or rain showerheads and smart thermo stats. Guests also want the conveniences of home, such as ports and outlets for a variety of devices. Meeting the Expectations of Younger Generations

OPULENT CHANDELIERS DENOTE LUXURY MANAGEMENT SEPTEMBER 2022 | MANN REPORT 77

Hotels & Residences Moving Toward Each Other In Asia or the Middle East, what people are trying to achieve with villas and mansions is to create their own resort. High-end world travelers de velop an affinity for specific elements that are a part of their experience. So, your design inspiration can be more serene and Zen, inspired by places like Aman resorts, for example, or rich and flamboyant, like a Jean-Georges: old-world style, with rich chandeliers, exotic railings and marble stairs. But ultra-luxury has evolved quite rapidly in the past two decades, re sponding to a market that wants to allow that personal sense of luxury — even if you are not the owner of the particular environment. We can see that luxury is pervading more and more of our everyday life. An example is multifamily, mixed-use residential, which went from basic to highly luxurious and highly amenitized. You are creating a vertical resort for those Multi-residentialindividuals. housing has borrowed from the hospitality world, and in the same way, hospitality is borrowing from the residential world. Hos pitality does not want the hotel to feel sterile and utilitarian. So, you have this new development of the “lifestyle hotel,” like the Edition Hotels or the W, where you can live in and create a connection with the spirit of the place through the realm of the art, design, food and the package of experi ences offered there.

Photos by Andres Escobar

This kind of innovation and evolution is critical now. Every brand in hospitality is questioning themselves. They are all trying to find the right ingredient to go to the next level. As a quick example, think about Tulum, Mexico, which is almost a hospi tality lab. The millennial and the younger generation are looking for some thing very organic. People are looking for places that are not “glitz” but nature-driven, where they can simply rest — absolute paradise.

The Interpretation of Luxury Differs Across Cultures True luxury is to be able to identify and deliver products to the end user that they will perceive as ultra-luxury. There’s not just one way of achiev ing this. If I’m executing a work for somebody in Abu Dhabi or in Du bai, or somebody in London or in New York, the perception of luxury changes Ultra-luxury,drastically.atleast in the architectural and design realm, is being able to deliver exquisite and well-appointed environments that resonate with the specific market you are relating to and with the lifestyles the individuals are living in the different areas. In the Middle East or Russia, luxury is very opulent and lavish; it borrows from the very high-end retail environment and brands. It is highly ener getic, whimsical and assertive. In New York City, and in the East Coast in general, the style is more tempered, effortless and understated. The clients have everything but no need to show it.

The aesthetic has changed its entire vocabulary to be able to address these different markets. At the forefront, a hotel that is sustainable and more ecologically responsible is a new thing that people are per ceiving as luxury. Many existing hoteliers will utilize products that are plant-based. Luxury is a combination of many things. I ultimately think the new generation are lucky because they can have luxury without spending millions of dollars. I think that luxury in the commercial world has a place for a diversity of people. Luxe, ultimately, is not really about the price tag but what makes people feel good.

CAPTIONS 78 MANN REPORT | SEPTEMBER 2022

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A simple reading of the text of the CLCPA shows that regulators are directed to consider “localized” impacts of rulemaking and impacts of climate change on local communities. How ever, the CLCPA appears to intend a statewide and region-wide plan for addressing climate change. The only language that expressly leaves any role for local government is a pro vision that the CLCPA does not provide relief from “state air and water quality requirements, and other requirements for protecting public health or the environment.” That would ap pear to be intended to leave certain clean air, clean water and environmental regulations in place, not to allow for New York City to cre ate its own climate program separate from the rest of the state of New York.

Carol A. GreenspoonSigmondMarder LLP 590 Madison Ave., Suite 1800 New York, NY (212)524-5074carol.sigmond@gmlaw.com10022

84 MANN REPORT | SEPTEMBER 2022

Depending on your perspective, Local Law 97 is either a great leap forward in reducing climate change or another unrealistic piece of legisla tion set forth by the New York City Council. Local Law 97, as amended, is intended to re duce carbon emissions in New York City by focusing on larger buildings including resi dential and commercial buildings of 25,000 square feet or more. Additional provisions are intended to capture mid-rise and garden-type apartment buildings by including buildings on the same lot totaling more than 50,000 square feet and condominiums on multiple lots with common boards. Oddly, there is no mention of cooperative apartment buildings; it appears that the New York City Department of Buildings (DOB) is including “cooperative” apartment buildings in the definition of “con dominium.” Specifically, the law is intended to force approximately 50,000 buildings to con vert from natural gas, steam and heating oil to electric service within eight years, at a likely overall cost of $16.6 billion to $24.3 billion. These costs do not consider the engineering and permitting costs, current inflation, the current supply chain issues and the current labor shortage. Additionally, many unit own ers will have to incur costly loans to pay the required special assessments. The law penal izes the condominiums and landlords with a fine of $268 per unit per year. These fines will fall heavily on residential buildings, particular ly condominiums, including those which have previously spent money to convert from heat ing oil to natural gas.

Condo-Co-op Helpline: New York City Local Law 97 of 2019

ARTICLES

In Glen Oaks Village Owners Inc. et al. v. City of New York, et al., three residential buildings and two-unit owners are challenging the law’s constitutionality. There are four basic conten tions: 1) The law is preempted by the New York State Climate Leadership and Community Pro tection Act (CLCPA); 2) The law violates the 14th Amendment of the U.S. Constitution; 3) It violates Article I, Section 6 of the New York State Constitution and 4) It imposes improp er taxes in violation of Article IX, Section 2 (c) (ii)(8) of the New York State Constitution and Sections 10(1)(i) and 10(8) of the Municipal Home Rule Law. In July, the city moved to dismiss the chal lenge on the following grounds: that CLCPA does not preempt the law; that it is not void for vagueness nor is it applied retroactively and, lastly, Local Law 97, as amended, imposes neither a tax nor excessive penalties. Of these arguments, the most interesting is the issue of the reach of CLCPA.

Likewise, there is specific language that allows for local governments to enhance labor stan dards above the minimums set by the state under the CLCPA. There is no similar provision for greenhouse gas emissions nor is there any other similar provision for any other issue.

To counter the remaining attacks, the city relies on a regulatory process for exemp tions from the law’s requirements, as well as rulemaking under the statute intended to ad dress the deficiencies identified by the plain tiffs. However, the regulations are not in place and the regulatory system in the City of New York suffers from certain flaws, including a toothless and largely ineffective New York City Administrative Procedure Act.

For condominiums and likely cooperative apart ment buildings, Local Law 97, as amended, may be a costly and burdensome program. In one interesting respect, the law’s focus on residen tial condominiums as a target for penalties and burdens is contrary to the letter and the spirit of the CPCLA, which is intended to ensure rela tively equal impacts statewide of climate initia tives. CPCLA does not appear to contemplate specific burdens on landlords of small apart ments or small businesses nor condominiums, regardless of size, while Local Law 97, as amend ed, is geared specifically to burdening this group of property owners and users. This column presents a general discussion. This column does not provide legal advice. Consult your attorney for specific legal advice.

By Carol A. Sigmond, partner, Greenspoon Marder LLP

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• Provide training in defusing or deescalating potentially violent situations and inform employees of the risks of work place violence.

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

Having a crisis management plan that you practice periodically is crucial. Unfortunately, senseless acts of violence are often unavoid able even with the best practices in place.

86 MANN REPORT | SEPTEMBER 2022

• Establish procedures for obtaining medi cal care and psychological support after a violent incident.

• In the event of a shooting, property own ers or tenants should record any physical property damage to broken windows and doors or bullet holes in walls or floors and take pictures.

As a real estate owner or property manager, it is your responsibility to ensure a safe environ ment for your employees, tenants and visitors. The best time to develop a workplace vio lence prevention program is before you need one. If you don’t have one in place, now is the time. Workplace violence consistently ranks in the top three causes of worker fatalities, and OSHA reports that over two million people are affected by workplace violence annually.

• Consider the risk of assault when directing workers to take out garbage, store items in external areas, transport money, etc.

ARTICLES

By Frank DeLucia, senior vice president, Hub International Northeast

• Institute policies and procedures that in dicate a zero tolerance of workplace vio lence and provide direction for reporting and handling incidents.

Workplace Violence and Active Shooter Preparedness for Real Estate Operations

• Establish an Employee Assistance Pro gram (EAP) with trained counselors who are able to address workplace stress and violence issues. As a confidential service to employees, the EAP provider will assess whether a situation needs to be brought to management and can intervene in em ployee conflicts.

Although it is crucial to take steps to protect from hostile intruders, it is also important to remember that many incidents of workplace violence occur from within. When hostile workplace behavior goes unchecked, it can have a wide-ranging impact. The consequenc es can be severe, from lost productivity, em ployee turnover, reputational damage, lawsuits and even workplace violence/loss of life. Recognizing the warning signs of workplace vi olence and taking appropriate action is essen tial. It’s important that the focus is not just on individual illegal behaviors, but more broadly, the toxic workplace cultures that create un productive, disheartened workforces. When unaddressed, toxic cultures and workplace be haviors like bullying, harassment and discrimi nation can escalate toward violence. Evaluate the workplace and identify both physical and administrative adjustments that you can make:

With over 300 mass shootings so far already across the United States in 2022, according to the Gun Violence Archive, the reality is that real estate operators and all businesses must be aware of how to protect their employees from acts of violence. They have been increas ingly exposed to risk, potentially exacerbated by the current stressors, such as health con cerns and economic uncertainty. Many employers are wondering how best to protect their people, property and profit ability. According to the Occupational Safety and Health Administration (OSHA) and lead ing industry associations, the short answer is employers should develop and implement a Workplace Violence Prevention Program to identify concerning employee behaviors early and provide a structured approach to prevent and respond to violence and threats.

• Establish an internal threat assessment team to assess and manage any threats of violence or concerning behaviors that you may become aware of. Threats toward a business can come from a variety of sourc es. If you become aware of a threat toward a location or person it is critical that your team is capable of assessing and managing the matter before it escalates.

• Create a crisis response plan that describes procedures to follow in the event of an emergency, which should include evacua tion routes and exits or building lockdown procedures depending on the situation, and have the plan posted for all staff and patrons to access.

Workplace Violence Prevention Program de velopment can often be a challenging process for the business leaders, safety and security managers, and human resource professionals tasked with building a program. However, they are imperative. Work with your insurance bro ker and its dedicated risk management team to ensure that you’re prepared and protected.

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The healing power of nature is right outside your backdoor and the finest “green” spa is the one in your own backyard. Let stress blow away in the breeze as you swing in a hammock or clear your mind with a few breaths of fresh air. Use retaining walls as a base for standing push-ups, patio steps for calf raises or a picnic bench for triceps dips. When it’s time to cooldown, your lawn makes a lovely mat and a tree trunk is a sturdy spot for balancing while you’re Nostretching.matter what different uses you have for your yard, taking care of the living landscape is key. Remember, work for your yard and your yard will work for you. Assess the backyard and do some basic clean up. Fix bare patches in the grass. Use a leaf blower to clean out flower beds. Prune bushes and trees. Cut the grass to a healthy height. Add a fresh layer of mulch around your trees and in flower beds. Freshen up by weeding and planting flowers. To learn more about the many uses and bene fits of the family yard, visit turfmutt.com.

Kris OutdoorKiser Power Equipment Institute 1605 King (703)549-7600opei.orgturfmutt.comAlexandria,StreetVA22314

Your backyard is a living laboratory for learn ing, and research indicates that learning out side can help children develop important skills for future success in the workplace, including social and problem-solving skills. Your kids can brush up on STEM education by planting and studying flowers in your backyard or going on a bug safari in your community park. There are also plenty of spots in the backyard for study sessions in nature. Think homework on the back patio, reading in a hammock or online classes under the shade of a tree.

Classroom & Living Lab

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

Here are just a few of the ways families are en joying the different uses of the backyard:

88 MANN REPORT | SEPTEMBER 2022

ARTICLES The Diversity of the Backyard

Many studies show that our moods improve and we have more energy when we spend time outside. Spending time in nature — starting in our own backyards — can also help improve memory function. These are just a few of the reasons why relocating your office to the back yard is a good idea. All you need is a quiet spot, a strong wi-fi connection and a shady place to position your laptop and you are ready to get to work outside. When it’s time for a break from work, double down on your dose of nature by taking a short walk around your neighborhood or shake off a stressful meeting by sitting under a tree, breathing deeply and listening to the birds.

Staycation Destination A backyard vacation can be a fun, affordable, convenient and safe way to spend time to gether, building new memories as a family while spending time in green space. Make a plan for what you want to do on your stayca tion, then map out the zones for each activity in your yard. Think about ways to creatively use what you already have. Build excitement by getting the entire family involved in the plan ning process and counting down the days to your family staycation.

Al Fresco All Day Eating outside is a nice change of pace, no matter the meal. Some families have gone all-out for outdoor dining by building extensive outdoor kitchens with built-in sinks, refrigera tors and even pizza ovens. But all you really need to create a cozy outdoor eatery right at home is a grill, patio seating and some string lights to use at night.

Health & Wellness Studio

The backyard is arguably one of the most di verse spaces at your home. The family yard can be everything from a functional outdoor office to the neighborhood’s hippest dining hot spot or a five-star-worthy staycation re sort. The art of utilizing the backyard for these many uses is called backyarding. It was called into play during the pandemic, but now we know it as a way of life. Backyarding is an af fordable and safe way to live and spend time with family and friends.

Outdoor Office

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It’s been both strange and wonderful to be back on the road, especially when it entailed briefly returning to New York after more than a year of living in Nevada (I’m happy to report my subway brain kicked right back in, but my coping with July humidity, not so much). But the optimism shown at the Lead Innovation Summit in Brooklyn was worth the trip. Organizers reported some 1,900 attendees, all looking for the latest and newest tech and trends.

“Are consumers spending or not spending because they can or can’t, or because they bought a lot of candles [for example] and don’t need any more?” said Simeon Siegel, BMO Capital markets. “[A consumer replen ishes] cereal faster than gas, which is faster than candles, which is faster than a Peloton.”

That includes accelerating the trend shift toward mixed-use. At Macerich’s Scottsdale (Arizona) Fashion Square, the company had already spent $350 million prior to the pandemic to introduce a luxury apparel wing, experiential dining, Lifetime Fitness and even a Tesla store. Plans call for a ho tel and multifamily housing to be added in the next phase of the redevelopment.

“We realized the pool of national retailers is re ally shrinking,” she said. “We developed a brand, ‘Emerge,’ to help new brands open stores.” Again, the pandemic helped the landlord, providing what Higgins called “phenomenal” vacancies that they could offer to new retail ers. Given Taubman’s portfolio, which includes some of the best-performing projects in the country, Emerge with Taubman has attracted some serious brands, including Gucci and Mi chael Aram to test product and presentations.

By partnering with the Guesst sales platform, a software that calculates hybrid and percentage rents, and automates rent payments, these new retailers could achieve a national-chain level of sophistication in terms of sales reporting anal ysis. Seriously, the stories I’ve heard over the years of pop-ups writing sales reports on bits of paper, then slipping them under the general manager’s door are both hilarious and scary.

90 MANN REPORT | SEPTEMBER 2022

By Debra Hazel, president of Debra Hazel Communications

“Nordstrom came to us,” he related. “They wanted our technology, and they’d fired their menswear department. We said we’d be more than happy to give you our technology as long as it’s selling our product.”

Rowan, which offers ear piercings conducted only by registered nurses, already has a store on the Upper East Side and has been opening up to 30 pop-up locations a month. But it now also is looking at in-store boutiques after a pre-pandemic partnership with Target ended, said founder Louisa Schneider.

There was some positivity for established retailers, too — if they’re smart and operate properly — in a session on Macro Trends. It’s important to analyze shopping trends consid ering the last two completely unprecedent ed years and the velocity of replenishment. Someone who has cut back on shopping right now may return in six months.

A discussion of “The American Mall Reimag ined” also showed that the comeback is real.

Meanwhile, Taubman Vice President of New Business Development Amy Higgins discussed how landlords themselves can bring about the retailers of tomorrow.

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

“We have top-of-the-line shopping centers. We have onsite services,” Higgins said. “Of those brands, 10 have gone permanent and they’re continuing to grow.”

But retail still needs to feel like an event, and that may be why some new brands at the conference are partnering with established retailers. Matthew Mueller, co-founder of Knot Standard, a customer menswear maker, dis cussed his company’s journey from its found ing as a tech-oriented provider of bespoke clothing in 2012 using AI-based in-store fitting services to its partnership with Nordstrom. Until the pandemic, Knot Standard could open a standalone store in 90 days — now it can take six to nine months.

ARTICLES Deb’s Retail Dish and Deals: On the Road Again

Clearly, physical retail is still important. And it was a pleasure to see its reinvention.

Kurt Ivey, senior vice president of marketing and communications at Macerich reported that traffic at some of the REIT’s East Coast centers was healthy, with Brooklyn’s Kings Plaza reporting 74,000 visitors the previous weekend, all looking to spend money. That’s a huge audience for retail and other uses that pandemic-related closures are enabling. “The shopping center industry is a mature industry,” Ivey said. “The pandemic gave us a huge opportunity. What we thought was going to take 10 years took two years. At one point we had 50 open anchor stores. It gave us a huge opportunity to rewrite our playbook.”

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The Impact of Biden Administration Tax Proposals on Real Estate

Unrealized appreciation on property held by a trust, partnership or non-corporate entity will be subject to tax if the property has not been the subject of a recognition event in the prior 90 Theyears.initial measuring date is December 31, 1939, which would make the date of the first recognition event deemed to occur Decem ber 31, (There2030.arevarious exclusions and exemptions to above rules which are beyond the scope of this article.)

Currently, most long-term capital gains and qualified dividends are taxed at a maximum rate of 20% plus a net investment income tax of 3.8% (where applicable, depending on mod ified adjusted gross income).

Recapture of Depreciation as Ordinary Income Under current law, when real estate is sold, the depreciation taken on real property is referred to as “unrecaptured section 1250 deprecia tion.” Any long-term gain on the sale of the real property in excess of the unrecaptured section 1250 depreciation is taxed at long-term capital gain rates. The portion of the gain up to the section 1250 depreciation is taxed at 25%.

Capital Gain Rates

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The above does not include all of the propos als under the Biden Administration plan, but the ones with the greatest impact on the real estate industry. Consult with your tax advisor so you can plan ahead.

Tax Rates

By Stephen Gilman, tax partner, Marcum LLP

92 MANN REPORT | SEPTEMBER 2022

Currently, the top marginal tax rate through the end of 2025 is 37% on taxable income over $647,850 for married individuals filing jointly and surviving spouses, $539,900 for unmarried indi viduals and heads of household and $323,925 for married individuals filing separately. The tax bracket thresholds are indexed for inflation.

Stephen M. Gilman Marcum LLP Boston, stephen.gilman@marcumllp.comMA

The proposal would treat transfers of appre ciated assets either by gift or upon death as a current taxable event. The amount of the gain realized upon transfer would be the excess of the asset’s fair market value on the date of gift or date of death over the holder’s basis in the asset. The gain would be taxable on either the gift tax return or the estate tax return, or some other type of capital gains tax return. The tax paid would be a deduction on the estate tax return.

In March 2022, the Treasury Department issued General Explanations of the Biden Administra tion’s Fiscal Year 2023 Revenue Proposals, com monly referred to as the “Green Book.”

The proposal would tax long-term capital gains and qualified dividends for taxpayers with taxable incomes greater than $1 million at ordinary income tax rates, with 37% being the highest rate, or 40.8% including the net invest ment income tax. The threshold for married individuals filing separately would be greater than $500,000. This could have a dramatic ef fect on taxpayers with a large liquidation event of their real estate holdings.

There are several provisions that would affect the real estate industry as well as those who work in it. The following discusses the most applicable provisions.

The proposal would increase the top margin al rate to 39.6% and lower the taxable income thresholds to $450,000 for married individuals filing jointly, $400,000 for unmarried individu als, $425,000 for head-of-household filers and $225,000 for married individuals filing sepa rately. The increases would be effective for tax years starting after December 31, 2022 and then be indexed for inflation.

Limitation on Like-Kind Exchanges

This is probably one of the most impactful proposals for the real estate industry. Individ ual taxpayers would only be able to defer cap ital gains of $500,000 per year ($1 million for married filing jointly). Any gains from like-kind exchanges in excess of those amounts would be recognized as a sale of real estate.

The proposal is to tax long-term capital gain from the sale of real property up to the sec tion 1250 depreciation taken as ordinary in come. This is only on the depreciation taken after enactment. The prior depreciation is still subject to the lower 25% rate. It also only applies to non-corporate taxpayers with ad justed gross incomes greater than $400,000 ($200,000 for married filing separately).

Transfers of Appreciated Property Under current law, making a gift of a partner ship interest (including those that hold real es tate) to a family member or trust is not taxable upon transfer. In addition, real estate that is in herited receives a step up in basis to fair market value, eliminating gain on a subsequent sale.

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Gyms have been an issue since day one of the pandemic, with many closing for months in the beginning and then at surge times. Many build ings still require proof of vaccination and boost ers, and boards are asking users to wear masks, though it is not mandatory. Since the start of the pandemic, some buildings have improved the air circulation systems in the gyms, which usually are located in windowless spaces.

Added to the above, we have significantly stepped up our cleaning protocols by increas ing the number of times a day our staff clean the public areas. Probably no issue has caused more controver sy regionally, nationwide and globally, than the use of masks. While requirements and prac tices are changing, many buildings we manage still require staff to wear masks to protect themselves as well as residents and guests. One concern is that many of the staff take public transportation to work and, increasing ly, fewer people are wearing masks on the sub ways and buses. The mask requirements also apply to vendors and contractors. We also are continuing to monitor the health of each member of our staff. We expanded our cleaning protocols to include sanitizing employee locker rooms. While the city and medical facilities reduced availability for test ing, we encourage staff to test regularly, par ticularly now when there are a growing num ber of cases where people are asymptomatic.

By Ira Meister, president and CEO, Matthew Adam Properties Inc.

One lesson from the COVID-19 pandemic is that we need to be prepared for the unexpect ed. In fact, the unexpected is now common place. As I write this, New York City is in another surge cycle and we do not know which variant, if any, will pop up next. This puts a burden on all of us as we schedule events and go about our daily lives — what guidelines do we follow and what personal decisions do we make?

Continued Vigilance for the Unexpected

Property managers face the same quandary. What procedures and rules should we relax, and which to maintain? For our properties, in consultation with the boards, we have taken a conservative approach and maintained many of the rules and procedures established when the pandemic overwhelmed us more than two years ago. Yes, it’s been a long haul. Let’s look at what we have been doing. For more than a decade, Matthew Adam Proper ties has emphasized the use of non-toxic and extremely effective cleaning materials. While we have been using these in many of the prop erties we manage, we have extended this to additional properties. Not only are these more effective cleaning materials, they provide a safer and healthier environment for residents, visitors and staff. In conjunction with this, we have expanded our warehousing of supplies. We all know about supply chain issues that have been prev alent since the pandemic began for cleaning materials and almost everything else. We have adapted the practices of many of our institu tional clients to maintain adequate supplies rather than rely on “just-in-time” deliveries. In doing so, we invest in having sufficient PPEs (personal protective equipment) and other products and applications on hand.

With all of the focus on health and safety, and with the resulting added expense over the past two-plus years, it’s important that properties maintain their preventive maintenance pro grams for systems. Failure to do so can only lead to costly future problems. If a property has fallen behind, now is the time to bring the inspections and maintenance up to date. With rising costs throughout the economy, repair costs will only increase as we move forward.

Matthew Adam Properties represents a broad range of clients including foreign governments, medical institutions and universities, as well as co-ops and condominiums. It’s interesting to see that each group, with variations within the groups, have their own priorities on rules and procedures. Those that handle considerable traffic each day, such as medical facilities and universities, have different protocols than, let’s say, a small co-op or condo.

ARTICLES

Ira MatthewMeisterAdam Properties Inc.

375 Pearl Street – 14th Floor New York, NY (212)699-8900imeister@matthewadam.com10038

Most of our staff’s union insurance provides testing kits. While restrictions have lessened in the past few months, some buildings still do not permit deliveries to individual units. When they are permitted, the staff makes certain that the de livery person goes directly to the correct floor and apartment.

94 MANN REPORT | SEPTEMBER 2022

ARTICLES

Eric (212)684-7079New381MargulesMargulesPropertiesParkAve.SouthYork,NY10016

Tenants suffer from lack of building-wide up grades. Under the current rent regulation sys tem, buildings will not survive as viable hous ing. If the intention of the state government is to preserve affordable housing, this is a failure with potentially catastrophic consequences.

96 MANN REPORT | SEPTEMBER 2022

Existing tenants are protected from unseemly rent hikes and can stay in their homes. Land lords will invest in the building and apartments to get market rent. Of course, there would have to be reasonable protections for in-place ten ants to discourage unseemly landlords from forcing vacancies. But upgraded buildings and apartments are what landlords and tenants all need in order to keep housing viable.

The current system of rent stabilization in New York is untenable. Each year we go through the same chaos and animus to determine rent in creases, pitting tenants against landlords in a zero-sum game. On cue, each side proclaims itself the loser. Tenants claim they can’t afford rent increases (and many can’t) and landlords claim they can’t afford to maintain their build ings (and many can’t).

Buildings with the majority of apartments under rent stabilization are in grave danger. There is not enough money to maintain them.

Thoughts about Rent Stabilization in New York

The surface seems cut and dry. Each side has valid claims against the system; each side has winners and losers. There is no means test for tenants, so some are enriched by a system which keeps their rents low regardless of their income. And landlords with only a handful of rent-stabilized apartments make so much money from free market apartments that a few rent-regulated units in their building are merely a nuisance. The real situation is much more nuanced. While some buildings can cover losses from rent-stabilized apartments because they con tain free-market apartments, many others have only low-rent rent stabilized units and in come truly does not cover expenses. Inflation has exceeded 8% in the past year, yet new rent guidelines allow an increase of only 3.5%. And rent stabilization doesn’t help young people or people new to New York. It is nearly impossible for a new tenant to find a rent-stabilized apart ment in the city. Because there is hardly a mechanism for a landlord to recoup investment into a proper ty, there is virtually no investment going into buildings where landlords are losing money. Apartments which become vacant after hav ing been occupied for decades by a tenant invariably need major capital investment, of ten $30,000, $40,000 or more. If a landlord were to invest $40,000 into an apartment, the monthly rent would increase by $89. That’s a lot of work for a 2.5% return. After 15 years, that increase goes away and the rent reverts to its original level. What rational businessperson would invest that money and effort with that return? So, tens of thousands of units, possibly more than 50,000, sit vacant when housing is in dangerously short supply. Landlords who rent an apartment without a proper renovation risk being sued by the city and/or the tenant claiming the unit does not meet various codes, thereby forcing the land lord to make further upgrades for which the landlord is not compensated. Century-old buildings must be constant ly maintained if they are to remain viable. Yet, due to the extreme shortsightedness of current rent regulations, there is virtually no investment into these buildings.

By Eric Margules, founder of Margules Properties

Currently, landlords must keep reams of paper work for decades to prove a rent charged is le gal when called upon. This is cumbersome and unwieldy. New York State agencies spend hun dreds of millions of dollars monitoring rent lev els and on housing court to resolve rent level disputes. These millions could be better spent building affordable housing. If apartments are allowed to go to market upon vacancy, rent cal culations are limited to current occupants and it becomes very easy to monitor.

Most agree that there is a housing crisis and a dearth of affordable housing. Allowing dete rioration by discouraging investment and pit ting tenants against landlords every year is not the Thesolution.bestsolution is to safeguard current oc cupants from unseemly rent hikes while en couraging landlords to maintain their housing stock and improve their buildings. This could be done by a system which continues to reg ulate in-place rents (perhaps those less than, say, $3,500). Once an apartment is vacated, it should go to market rent. This would encour age landlords to invest money into vacant apartments and the building. Once the apart ment is re-rented, it becomes regulated again until it is vacated. And so on.

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At an industry level, we are beginning to see more women and diverse teams, but the prog ress is painfully slow. Just examine funding for new real estate-focused businesses. According to PitchBook, female-founded businesses re ceived 2% of venture capital funding in 2021, the lowest since 2016 — hardly progress. And it’s not because there is a lack of capital avail able; proptech received over $300 billion in funding in 2021 across 14,000 deals, Pitchbook reported. If I were asking my two boys to split their candy equally, that is not exactly the math I’d be happy with.

I’m excited and proud that everyone’s voice matters at Raccord. Everyone’s voice should matter elsewhere, too.

Journey

I spent over 20 years in finance, working across various investment verticals and international markets. The common thread throughout was that every role sat right at the intersection of data and technology. From the very early days of my career, when I started using Bloomberg, I began to appreciate the enormous val ue of data and analytics to drive investment decisions. That link between data and deci sion-making has fascinated me ever since.

I’m equally proud of the culture and team that we are building at Raccord. Despite being the founder and CEO, I really don’t see myself as a CEO in a traditional sense at all. Instead, I see myself as a leader of a diverse, female-led team of incredible individuals, operating in an industry that is still overwhelmingly male. I feel an immense sense of responsibility to them and to the legacy of the company that we’re building together. Their drive for consistent improvement, cognitive flexibility and a solu tion-oriented mindset motivates me every day.

Organizations must adhere to these standards across all three buckets to build true diversity.

By Bonnie Murray, CEO and founder of Raccord

98 MANN REPORT | SEPTEMBER 2022

I am extremely cognizant of every decision of the role my female-led team can play. That is not to diminish the value of our male team members at all; they, too, are integral to cham pioning greater diversity and equality across the industry. Rather, I view building diversity and equitable distribution from a three-legged stool approach: founder, team and capital base.

A into Motherhood,Proptech: Determination and Success

I would take this a step further and say there must also be equal empowerment across all company operations to avoid box-checking.

From solving real estate’s data problem, to building a diverse team of talented individu als, leading a proptech company teaches me something new every single day. If I have one tip for other ambitious women who aspire to lead, it’s to never ever sacrifice the “self” in pursuit of working dreams. Life is a journey. We should not fear the lessons life presents us with nor should we fear failure. I’m an ardent believer in the process of test, fail, iterate and learn. This, and only this, is how you build a sol id foundation for growth.

In 2021, I founded Raccord to solve that very problem, with a vision of becoming the Bloomberg of real estate data. Fast-forward a year and having secured funding and our first raft of clients, I sometimes have these pinchme moments where I look at what we have built and I realise I’m the CEO of a technology business, solving a huge problem.

ARTICLES

When I was working at a technology hedge fund, I would, more often than I’d like to admit, spend Sunday evenings reading charts, trying to identify patterns and variances. Later, as an equity trader during the global financial crisis, I relied heavily on data and analytics to drive my own decision-making and navigate the tur bulence of the market. The valuable lessons learnt over those 20 years are ultimately what led me into property technology.

Bonnie support@raccord.comNewRaccordMurrayYork,NY

After having my second son, I transitioned into private equity real estate in 2015, in search of more balance between work and mother hood. Joining a firm that focused on the mul tifamily space, it quickly became apparent to me that the real estate industry was failing to leverage data when it came to investment decision-making. Despite being the world’s largest asset class, with the greatest real-world impact, there was no data standardization, no interoperability across systems and no holistic implementation of analytics. That really matters. With the capital base of real estate investment often sourced from school en dowments, foundations, family offices, healthcare systems and sovereign wealth funds, the deploy ment of capital has significant implications that extend far beyond physical infrastructure. Em powering investors with the insights needed to make sound decisions is critical.

Donald info@Champion-Elevator.comPresidentGelestinoandCEO • Champion-Elevator.com Realtime - Honest - Transparent - Communication New 212.292.4430York 914.287.7353WestchesterNassau & 516.307.0907Suffolk 203.350.3550Connecticut New 908.996.7800Jersey Pennsylvania215.770.6679

Over the last few years, glamping, the trend where people go camping in cabins that come with hitherto unseen comfort and amenities, has steadily risen in popularity. In 2022, the U.S. glamping market is valued at $569.21 mil lion and has an expected compound annual growth rate of 18.26% (2020-2026), according to a report by research firm Arizton. With over 67% of travelers considering glamp ing as a unique vacation experience and 81% of glampers wanting more, says a Kampgrounds of America (KOA) report, this rising trend has no intentions of stopping. If landowners have “campable” land — close to a popular out door attraction such as a river or lake — then glamping can offer a welcome source of addi tional income.

Glamping is a camping trend that shows no signs of losing steam anytime soon. For con sumers, it offers a great escape from the hus tle and bustle of the city in a manner that can be enjoyed by even those who are typically not eager to roughen it up. For landowners, glamp ing offers a welcome stream of additional reve nue, where they can choose between different levels of investments in accommodation that runs the gamut from tents to A-frame cabins.

The spectrum of options is as varied as the trails our country’s beautiful camping grounds offer, providing a solid return on investment for every investment option a landowner might choose.

There is room for a differentiated approach to how landowners set up glamping facilities. De pending on their financial resources, landown ers can choose to build different types of lodg ing that come with varying levels of comfort — and price tags. The most basic approach offers large, beautifully designed and protec tive tents to campers. There are no amenities in the basic scenario — campers must pro vide their power and potable water. There are shared showers and restrooms available for the campers. The cost of acquiring such a tent is typically $500 to $2,000. Wood frame constructions with power and electricity are a level up from the previous of fering. The cost of this construction is typically between $2,000 and $4,000. Another level up from the wood frame construction is the A-frame, hand-built cabin which will typically come with power and electricity. This third op tion’s cost is between $10,000 and $20,000.

Mashvisor reports that across the nation, land owners will charge on average $250 for a night in a vacation rental, which we can equate with the rental of a comfortable cabin, our third op tion, for the sake of this exercise. So, let’s make a conservative assessment and run a simula tion where we dive 20% below that average and charge only $200 for a cabin that has cost us $20,000. We take the highest end of the cost range and go low, setting our rental fee. In this simulation, it takes no more than 100 nights of occupation to earn back the cabin, meaning that the investor earns back the in vestment in a year.

100 MANN REPORT | SEPTEMBER 2022

By Ryan Harris, land professional with National Land Realty

Ryan NationalHarrisLand Realty Little Rock, (866)931-4452AK

This set-up will usually have plumbing, though that will ultimately depend on how close the cabin is to a sewage line. While the cost of some of the glamping accommodations for guests might seem steep to some landowners, a simple calculation shows that investors can be confident they will get a solid return.

Any glamping accommodations will quickly be booked 200 nights a year in warm parts of the country in camping hotspots. But, of course, not every campground is in the South; in colder locales, camping seasons have highs and lows. But even in a bell-curved market, an occupancy rate of 100 nights a year is very do able. In our example, we focused on the com fortable cabin. Still, the return on investment ratios look as favorable for the other two cat egories for the most expensive segment.

How Glamping Can Give Landowners Extra Cash

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For more information contact: Mark Mindick, mdevito@citrincooperman.comMichaelmmindick@citrincooperman.comPartnerDeVito,Partner

CITRINCOOPERMAN.COM

For more information contact: Mark Mindick, mdevito@citrincooperman.comMichaelmmindick@citrincooperman.comPartnerDeVito,Partner

Waiting for sustainability requirements to be defined is not an option. There are meaning ful actions businesses can take to create a net zero plan in the interim:

1. Tackle energy reduction (i.e., operational carbon) first, before investing in offsets.

As organizations move forward with net-zero plans, and adjust them as future regulation comes about, I recommend initially tying tar gets to the Paris Agreement, as this will likely be the sticking point for all climate change ini tiatives and directives to come.

Saagar EnvironmentalPatel Systems Design Inc. 233 South Wacker Dr #5300 Chicago, IL (312)372-120060606

The news there is a bit more dire. According to the report, “unless there are immediate and deep greenhouse gas emission reductions across all sectors, 1.5°C is beyond reach.” The report out lines how emissions can be reduced by half in key sectors and outlines how humanity can improve their chances for success.

ARTICLES Net Zero Outlook

2. Address embodied carbon when con structing new real estate.

The SBTi is described by the organization as “the gold standard for net-zero target setting, which is vital in enabling companies to identify and reduce their emissions and limit tempera ture rise to 1.5°C.” That is the limit most scien tists agree must be achieved by 2050 to avoid the worst effects of climate change. SBTi released its 2021 Progress Report which indicated that the initiative doubled the num ber of new companies setting and committing to net zero targets. The report also showed a tripling of the rate at which these targets were validated. More than 2,200 companies repre senting over one-third of the global econo my’s market capitalization were working with SBTi in establishing net zero emissions goals, the organization reported.

With major cities like New York setting the pace, the rest of the United States seems to be joining the effort for a cleaner, more efficiently built environment.

By Saagar Patel, PE, LEED AP BD+C, WELL AP, CCP, operations director for ESD

It is clear that the need for universal guidelines is pressing. According to analysis by the En ergy & Climate Intelligence Unit (ECIU), while some producers of greenhouse gases have committed to clearly defined and binding net zero plans, others may be gaming the system. Without clear, agreed-upon standards and pro cesses, some entities may be making vacuous promises such as not making changes in the near term, but setting future goals based on the assumption that new carbon capture tech nologies will become available down the road.

102 MANN REPORT | SEPTEMBER 2022

The Intergovernmental Panel on Climate Change (IPCC) also recently issued a special report, “Cli mate Change 2022: Mitigation of Climate Change.”

In March, New York City announced plans to develop the city’s first net zero community of affordable housing in an area hit hard by Hurri cane Sandy. The $1 billion project on 116 acres of oceanfront property on the Rockaway pen insula in Queens will meet its zero emission goals by incorporating geothermal heating and passive house design to optimize energy efficiency. It’s part of the city’s commitment to achieving carbon neutrality by 2050. Commercial real estate (CRE) developers are working with local governments to set these sustainability and net zero targets. However, the continued lack of consensus on exactly what “net zero” means makes this type of plan ning a Progresschallenge.isbeing made by the International Organization for Standardization (ISO) in de fining the world’s first consensus-based net zero guiding principles and the benchmark for the climate agenda. The organization re cently announced the launch of the Interna tional Workshop Agreement (IWA) to help accelerate the development of net-zero guid ing principles. The initiative hopes to solve a tricky conundrum: How do you translate the science-based concept of net zero into specif ic, actionable rules and guidelines? Until a consensus is adopted, companies and developers can follow guidelines suggested by the Science Based Targets initiative (SBTi).

For these net zero efforts to be successful, it will require the cooperation of building owners, operators and occupants to work together to meet these challenges while the engineering design and construction industries continue to push for a greener future.

3. Review opportunities to electrify (i.e., de carbonize) equipment when performing end-of-life system replacements. 4. Capitalize on existing local utility incen tives and federal tax programs to help fund initiatives.

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While some families and individuals moved to other cities and states for reasons of econom ic hardship, those states with “hot” housing markets tended to gain. In fact, Florida’s redhot housing market was largely being driven by the multifamily sector. Overall, the state ranks second (after Texas) in terms of population gain, seeing roughly 211,000 incoming resi dents between 2020 and July 2021. This aligns with the marked rise in rent since March 2020, with rent in Naples increasing 48.9%, Sarasota 48.3%, Tampa 34.3% and Ft. Myers 33.6%.

Today’s multifamily sector is experiencing con sistently strong growth. Migration to more suburban areas has shifted the landscape as city dwellers are moving away in a popular trend where hybrid and remote work models have become the norm. Many have begun to reassess their needs in terms of housing over the past two years as apartments and homes became full-time offices. In addition, people have taken jobs in new locations and are finally getting the chance to put down roots in a new state. Multifamily owners and developers are adapting quickly as multifamily housing growth has posted some of the strongest gains over the last two years in a post-pandemic world. In 2021 alone, multifamily housing ended the year with overall occupancy and net effective rents well above pre-pandemic levels.

ARTICLES Today’s Multifamily Market:

As a high point, Q4 2021 was noted as the best quarter recorded in multifamily history at nearly $150 billion nationwide, nearly double to that of the previous quarter. At the time, apartment vacancy rates dropped to 4.8%, down from the pandemic peak of 5.4% in the first half of 2021. The numbers dropped fur ther to 4.7% in Q1 2022.

Michael Stein

Fortunately, for multifamily housing developers, the good news is that the multifamily landscape is projected to continue upward. Macroeco nomic conditions such as rising median home prices and interest rates tend toward a housing shortage where multifamily shines as a bright spot with strong fundamentals and investor interest. Trends now indicate a unique oppor tunity for multifamily developers to increase housing availability where people want to live.

777PensamBrickell Ave., #1200 Miami, FL (786)539-499933131

By Michael Stein, founding partner at Pensam

As for migration patterns, U.S. Census Bureau statistics show that neighborhoods receiving the most influx are predominantly falling in Ida ho, Utah, Montana, Arizona and South Caroli na, which have seen a percentage population gain of 2.9%, 1.7%, 1.7%, 1.4% and 1.2%, respec tively, between 2020 and July 2021. Migration has been a net benefit to several multifamily markets such as Boise, Idaho, where asking rents rose 33.6%. Migration patterns, however, are not always correlated with increased eco nomic prosperity or a desire to spend on new housing as the U.S. largely saw workers nation wide moving to states that offer a lower cost of living and/or lower asking rents.

Today, rents are up approximately 17%, and median home prices are up approximately 15% over the last year. As vacancy rates in rentals continue to diminish, multifamily housing de velopment is set for unprecedented opportu nity in meeting increased demand for housing needs. Capital providers can look for unique opportunities to serve this market as strong multifamily fundamentals and potential for growth bode well for investment opportuni ties in an otherwise uncertain rising interest rate environment. Multifamily remains an at tractive investment proposition.

104 MANN REPORT | SEPTEMBER 2022

A Delicate Balancing Act and Unique Opportunity

Much of the market growth was centered in Sunbelt regions, with Jacksonville, Tampa and Palm Beach in Florida alone topping national charts. What this means for 2022 is that devel opers and owners must maintain a close eye on where people are migrating and why. A ten uous nationwide balance exists between rent levels, population growth and job creation, and will likely continue to shift as renters and homeowners make more decisions on lon ger-term housing needs.

This is great news for multifamily developers and firms like Pensam, which can take advan tage of this influx of data. It enables the devel opers to cater to tenant needs while establish ing strong communities that will last. Pensam has always valued a superior resident experi ence and this increased market will allow for developments to be customized as they are created, upgraded or acquired. On the other hand, people seeking multifamily housing are not always simply seeking out superior ameni ties. As evidenced by growing neighborhoods and communities, people are on the move in the aftermath of the pandemic.

As more professionals are relieved from time-consuming tasks, employee productivity and engagement increase, with an ability to focus on being creative and solving problems.

When it comes to the supply chain, less time needs to be spent on keeping track of infor mation and more on managing industry rela tionships and finding new solutions. Purchase orders can be automated and optimized to stay ahead of constraints (as much as possi ble), and information for invoices can be ex tracted, input and processed to help stream line quotes from suppliers. In the realm of cost management for proj ects, RPA and data analytics help businesses achieve more accurate forecasting and risk management. As contractors continue to welcome advancing technology, their adop tion of RPA holds the potential to completely transform how the industry operates. RPA can automate laborious tasks such as extracting submittals, and use the time gained to focus on project timelines and budget. Immense amounts of data from projects that were for merly left to employees can instead be orga nized and generated, leveraging data from previous projects to produce predictable and successful outcomes for future developments.

How Robotics Process Automation is Alleviating the AEC Industry’s Supply Chain Issues

Why RPA?

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According to a 2022 “Robotic Process Auto mation Market” report, RPA is expected to grow at a rate of 16.2% and is set to reach $47.19 billion by 2029. This is because RPA is finding more enthusiastic adoption in the in dustry, especially since the pandemic. With implementations easing manual labor of con struction plants and projects, RPA systems aid specifically in back-office operations, allowing contractors to save both time and money.

Challenges and Concerns of Use Appropriate training programs on the use of RPA software must be instituted for employ ees. This will not only support effectiveness, but also help avoid inaccuracies in construc tion projects. From a fiscal perspective, there are upkeep considerations for these tools, in cluding regular maintenance and upgrades for performance efficiency. These considerations should not discourage construction compa nies from utilizing this program — it’s ultimate ly about properly allocating resources and be ing disciplined about process. The industry-wide hesitation to implement RPA stems primarily from uncertainty of job security in the AEC industry. Since the key objective is to streamline repetitive, time-sink ing work, there is some fear of people being replaced, but as with other industrialized con struction processes, the technology doesn’t replace people. It enables them to be more efficient and productive. Industry profes sionals will learn to use RPA to their benefit, just as they do with BIM, drones or any other time-saving advances. RPA’s sizeable footprint is continuing to push the boundaries of tech nological advancements in construction, as well as other industries, endorsing opportunity for widespread application.

By Joe Léger and Nate Larmore, vice presidents, MGAC

Joe Léger Nate Lamore

106 MANN REPORT | SEPTEMBER 2022

Joe 5525MGACNateLégerLarmoreLakeview Dr., Suite 200 Kirkland, WA (425)822-780098033

It isn’t so much that new technology has been developed quickly, but rather that industry ex perts are finding innovative ways to support existing technology to solve new problems, specifically in the AEC industry. RPA implemen tation cuts down on manpower through au tomation, redirecting the focus to examining construction drawings and reviewing materials and equipment. Administrative efforts, such as filing, collecting and submitting contracts, are neatly arranged with RPA, reducing the risk of misplaced paperwork. RPA technology solves workflow problems for all sectors of labor who all stand to reap its benefits.

A primary benefit of robotics and automation becoming more ubiquitous across industries is that they afford teams the time and ability to be more creative and focus on value-add, judg ment-based tasks. This is especially true for the architecture, engineering and construc tion (AEC) industries, in which large amounts of time are spent inputting and analyzing proj ect data and tracking and coordinating the supply chain. This time would be better spent on ideation and execution, as well as client re lationship management.

In response to the widely publicized labor shortage, materials scarcity and supply chain delays, robotic process automation (RPA) is becoming a more relied-upon solution in the design and construction of buildings. This innovative program is calibrated to advance how construction firms and the AEC sector approach development, production and ad ministration operations.

A media studio to produce Space Hero, the global competition se ries, and a hotel where fans of the series can watch events unfold in real-time, will also be part of the mix.

The Final Frontier?

Space Hero, Lava and One Digital Team for Space Village

Inside Space Village, the finalists' living quarters will model spacecraft Space Village will offer a glimpse of life in 30 years.

108 MANN REPORT | SEPTEMBER 2022

“Visitors to Space Village will experience what life could be in 30 years; sustainable, yet comfortable, healthy and happy,” said Thomas Reem er, founding partner of TDGA Holdings Limited, owner of the Space Hero IP. “We want to show our visitors a future that they can look for ward to, using the endless possibilities our planet has to offer.”

As part of the Space Hero series, 24 Space Hero finalists complete nu merous challenges in a setting that resembles the various conditions in space to prepare for an extraordinary mission, including thriving underwater in a buoyancy tank. The challenges will resemble the en durance tests astronauts must complete when training for a mission.

aptains Pike, Kirk, Picard et al. would feel right at home: Space Hero, Lava and One Digital Entertain ment are teaming for the creation of Space Village, a series of 10 futuristic, space-inspired landmarks in different locations around the world. Space Village is designed by Alexander Rieck from German architectural firm Lava. Each Space Vil lage will feature a large space center and a glimpse of forward-looking technology that will stimulate the visitor’s imagination.

Over the next two decades TDGA Holdings Limited plans to build 15 Space Villages around the world.

“Traveling to the stars continues to be the dream of millions of people around the world, and the Space Village will offer visitors that spacethemed futuristic thrill of a lifetime,” said Deborah Sass, a founding partner of TDGA Holdings Limited, owner of the Space Hero IP. “Chil dren will be inspired to prepare for a career in Space and join exhibi tions to the Moon, Mars and beyond.”

“We didn't just want to simulate a spacecraft or living on Mars but showcase how technology that is developed for conditions in space, is benefitting the future of living on planet Earth. With 10 more Space Villages to be built all over the world, we have a chance to explore any living condition and how to react to it,” said Rieck, who is also a professor at the renowned Fraunhofer Institute. “Space Village brings back the hope for an astonishing future world full of miracles. It con nects the old dream of traveling to the stars with more actual needs of a sustainable, healthy and healing earth.”

"We see this as an opportunity to not just build something extraor dinary but also extremely futuristic, as people on Earth are inevitably finding ways to live sustainably in the future,” said Shabir Momin and Gurpreet Singh, founders of One Digital Entertainment. “We believe that we will create experiences and motivate people in general on all elements of travel, sustainability and empathy for our environment.

SEPTEMBER

Space Hero contestants will compete at the Village. 2022

conditions and finalists will be challenged to create their own energy and grow food. A jury, which will include a group of experienced as tronauts, scientists and professional athletes, will observe the finalists' behavior and character. Global audiences will be able to vote for their favorite finalist during weekly episodes.

| MANN REPORT 109

Space comes closer with jaw dropping experiences for everyone, which only a handful of a lucky few have experienced so far. We are ful ly capable technologically and at scale to make this a global success.” Renderings courtesy of Lava Up to 15 Villages will be built worldwide.

110 MANN REPORT | SEPTEMBER 2022

Resilient, Affordable Homes Come to Downtown Far Rockaway

massive impact on the Far Rockaway communi ty for years to come,” said New York State Sen ator Joseph P. Addabbo, Jr. “By building more than 200 affordable housing units, this project will benefit hundreds of current residents and has the potential to bring in new people who may not have been able to live in Far Rockaway and become part of this amazing community.

ringing more affordable hous ing to downtown Far Rock away, Queens, is one matter — but the recent completion of two major projects in the neighborhood also is increasing the area’s safety through major infrastructure upgrades and climate re siliency, just in time for the 10th anniversary of Superstorm Sandy. “The completion of these projects will have a

The new pedestrian plaza will beautify the area, while the improved storm sewers and climate resiliency measures will better fortify Downtown Far Rockaway against flooding and other issues brought about by climate change.”

The new project will include more than 200 affordable housing units.

By the Boardwalk:

Led by the New York City Economic Develop ment Corporation (NYCEDC), the New York City Department of Housing Preservation and Development (HPD) and the New York City Housing Development Corporation (HDC), the $120 million Beach 21st transformed vacant, city-owned land into a 100% af fordable, mixed-use development project

A.E.C with 224 affordable homes near the Far Rockaway-Mott Avenue subway station. Supporting access to transit, daycare, and jobs, the building offers apartments affordable to New Yorkers earning between 40% and 80% of area median income, with 23 homes with onsite services reserved for New Yorkers who for merly experienced homelessness. The building includes on-site laundry, a fitness room and a rooftop terrace with a walking track, as well as approximately 28,000 square feet of retail and community space, including a day care center.

SEPTEMBER 2022 | MANN REPORT 111

Photos courtesy of Bernstein Associates and Laurie E. Donald the addition of more sidewalks, new landscap ing and green infrastructure. It also includes upgrades to 25 blocks of stormwater draining to help reduce the flooding risk from heavy rain.

The infrastructure project received the Award for Excellence in Design from the New York City Public Design Commission in 2017. DDC is also building the new Far Rockaway Library for Queens Public Library in the same community, which is anticipated to open next year.

A new, 15,000-foot pedestrian plaza will offer community space maintained by DOT, the Rock away East Merchants Association and the Horti cultural Society of New York for events, seating, greenery, bike racks and a public restroom. In total, the work included: more than two miles of new storm sewers and 88 new catch basins to alleviate flooding; more than two miles of new curbs; 101,000 square feet of new sidewalks; 10,000 feet of existing sanitary sewers replaced with new pipes; 10,000 feet of aging water mains replaced with new pipes and a net gain of 71 new trees for the neighborhood. “In fulfilling its pledge to the downtown Far Rockaway community, the Department of De sign and Construction completed seven years’ worth of infrastructure work in less than three years and did so well under budget,” said DDC Commissioner Thomas Foley. “Above ground, the streetscape has been vastly improved, with Community space Rooftop terrace Amenities include retail.

Carried out by the New York City Department of Design and Construction (DDC), in partnership with the New York City Department of Environ mental Protection (DEP) and the New York City Department of Transportation (DOT), the $114 million infrastructure project was originally es timated to cost $139 million and require seven years, then promised to the community in three years. Instead, it was delivered three months ahead of the promised three-year schedule and $25 million under budget. The project includes critical street safety improvements, including new streets, curbs, and sidewalks, a new pe destrian plaza, and new bike lanes and green space. Below ground, the neighborhood now has more than two miles of modern storm sew ers along with new catch basins and 10,000 feet of new water mains. We saved even more time using innovative solutions like our Early Completion pilot and by adding financial incen tives at critical milestones to achieve schedule savings. These initiatives shaved months off the schedule, while providing upgraded sewers and streetscapes and allowing businesses to return to normal operations more quickly. Overall, it’s a remarkable transformation for a neighborhood that has been historically underserved and was heavily impacted by Superstorm Sandy.”

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T op minds in real estate, finance and economics set the stage for an indepth discussion on how rising interest rates, historic inflation and global economic uncertainty are impacting business and commercial real estate region ally and in key markets nationwide at a sum mertime conference in New York City hosted by the Fordham Real Estate Institute. Hundreds of business and industry profes sionals attended “Rising Interest Rates and the Impact on Commercial Real Estate,” a panel discussion and networking event at Fordham University’s School of Law that was offered both in person and virtually. The panel was moderated by Tony Fineman, senior managing director at Acore Capital, one of the largest investment managers in commercial real estate lending. The panel featured Andrea Balkan, managing partner at Brookfield, Adam Doneger, vice chairman of Cushman & Wakefield and Ryan Severino, chief economist at JLL. Fineman recapped market conditions over the last few months.

From left: Ryan Severino, JLL; Lou Mirando, Streamline CRE Funding Group and co-chairman of the Fordham Real Estate Institute at Lincoln Center's Executive Advisory Council; Ryan O’Connor, Clinton Management and co-chairman of the Fordham REI’s Executive Advisory Council; Adam Doneger, Cushman & Wakefield; Bob Morgenstern, director of the Fordham REI at Lincoln Center; Andrea Balkan, Brookfield and Tony Fineman, Acore Capital.

“What we’re seeing right now is a market that is very much in flux … in a drastically rising interest rate environment,” said Balkan, of

Industry Leaders Weigh in on Interest Rates, Inflation and Impact on Business and Real Estate

Fordham University hosts expert panel on managing through volatility and rethinking strategies in a changing world

The “bottom line,” Fineman said, is that the cost of borrowing is much higher. He asked the panel to weigh in on how this is impact ing their business and the market, overall.

“The indices that we base our loans on, and that the market bases cap (capitalization) rates on, have risen a couple hundred basis points,” he said. “Spreads have risen some where between 75 and 150 basis points.”

COLLEGES 114 MANN REPORT | SEPTEMBER 2022

“It is going to get objectively interesting in the economy in the real estate markets over the next 10, 15, 20 years as we go from an era of labor abundance to labor scarcity,” Severino said.

Brookfield. “We are still active, we are still lending, but we’re having to look at every deal with a new lens and say, ‘This deal has to cover its debt service at the forward curve.’ So, it is resulting in our changing terms on deals, which we haven’t done in the 20 years I’ve been there.”

Photos courtesy of Fordham University

Severino cited “massive ramifications” from a global labor shortage, “not just for the overall economy, but to some of the larger questions such as where people want to work, where they want to live and what kind of industries that they want to be in.”

The conversation focused on a number of economic and real estate topics including global uncertainty, fears of a recession, labor shortages, the war in Ukraine, housing af fordability, supply and demand and convert ing office buildings into residential spaces. “What we’ve seen over the last couple of months has been unprecedented in terms of transactions being sidelined due to the rise in interest rates, coupled with the war and overall economic uncertainty,” Doneger said. “If you break it down by asset class, the office business — the number one seller over the last 20 years in New York City — has slowed significantly. Select office trades have been put on pause mainly due to the evaporation of financing across the office spectrum. When financing stops, equity is going to stop alongside it.”

COLLEGES SEPTEMBER 2022 | MANN REPORT 115

From left: Panelists Adam Doneger, Cushman & Wakefield; Andrea Balkan, Brookfield; Ryan Severino, JLL and moderator Tony Fineman, Acore Capital.

Doneger pointed to investment opportuni ties in multifamily housing, particularly as de mand for rental apartments in New York City outpaces “Multifamilysupply.fundamentals and sales are on a tear,” he said. “Agencies are still lending and aggressively quoting.” The pandemic and a structural labor short age are compounding the challenges office building owners and employers are facing in a changing work environment. “If we’re going to get people back into the office, then employers are increasingly going to look at the office space as part of attract ing and retaining talent,” JLL’s Severino said. “Not just compensation [and] flexibility, but what is the office space actually like? Is it conducive to being productive, a place you want to come to, especially if you have an onerous commute? That’s very different from prior to the pandemic.”

“We think there’s still great opportunities and we’re going to continue to lend and invest, but we’re going to be lending on high-quality assets that are going to trade below intrinsic value because other people are sitting on the sidelines,” she noted.

Balkan said Brookfield’s lending strategy will be focusing on Class A assets.

The panel agreed that cities like New York and Boston, which boast strong medical and educational institutions, are well-positioned for Donegergrowth. pointed to the growing de mand for spaces to accommodate the life sciences boom. “Most of our clients that are in the office busi ness have pivoted into the life sciences space and they’ve all made a home for themselves. That industry, in particular, has a tremendous amount of room and it all ties into cities that have the medical and educational resources,” he said.

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EXECUTIVE CHANGES

Burns brings with him three decades of experience in accounting and risk manage ment, most recently serving as vice president at H/2 Capital Partners, a Stamford, Connect icut-based hedge fund. Prior to H/2 Capital, he served as vice president and manager of the Profit and Loss Explanation and Report ing Division at Mizuho Capital Markets Cor poration. He graduated from Loyola Universi ty with a bachelor’s degree in accounting.

118 MANN REPORT | SEPTEMBER 2022

BEB Capital Appoints Burns As CFO, Rayman As Real Estate Controller ing, property accounting, financial analysis and forecasting that will assist the executive team in making sound business decisions, as well as evaluating and advising on the im pact of long-range planning and introduction of new programs and strategies.

BEB Capital, an investor and developer of industrial, office and multifamily assets throughout the East Coast, has appointed Thomas Burns in the newly created role of chief financial officer (CFO) of the firm’s real estate holdings. Burns will report to Lee Brodsky, CEO of BEB Capital and Keyvan Ghaytanchi, chief operating officer and pres ident of BEB Capital’s lending division, BEB Lending. Thomas Landherr, who has served as CFO of BEB Capital since 2015, will shift focus to the Brodsky family office and con tinue to oversee fiscal functions of the firm’s non-real estate related holdings.

As CFO, Burns will be responsible for over seeing the fiscal functions of BEB Capital’s real estate holdings, including providing leadership and guidance to the finance and accounting teams. His responsibilities in clude investor relations, investment account

Alan RaymanTom Burns

Repking, who boasts 20 years of legal exper tise, came to Savills in 2021. Before joining Savills, he spent 10 years at CBRE as senior counsel based in Los Angeles. Prior to that, Repking spent nearly eight years as an as sociate with the national real estate law firm Cox, Castle & Nicholson and an additonal three years with the multinational law firm Latham & Watkins. He holds a J.D. from the University of California, Berkeley.

“We’ve seen tremendous growth in our real estate portfolio, and the additions of Tom and Alan, two executives with rich industry experience, will further enhance our financial analysis and forecasting to enable us to con tinue to capitalize on opportunities ahead,” Brodsky said. “We’re looking forward to their contributions and are confident that they will add tremendous value to BEB Capital.”

BEB also named Alan Rayman as real estate controller. Rayman joins the firm with nearly 30 years of industry experience, including spending the last 16 years as a corporate controller at Tritec Real Estate. Rayman will handle the accounting for real estate deals during the development, con struction and management phases, ensuring the quality of the firm’s accounting depart ment’s output, including internal auditing, maintenance of control schedules, investor relations and C-Level internal reporting for the company’s properties and projects. Prior to Tritech Real Estate, where he oversaw the accounting operations of the company, Ray man served as controller at CLK Properties. He graduated from the State University of New York at Binghamton with a bachelor’s degree in accounting.

Savills has promoted James Repking to general counsel in North America. Repking, formerly associate general counsel, will suc ceed retiring General Counsel and Executive Vice President L. Stanton Towne. Repking will relocate to the company’s North American headquarters in New York and work closely with the firm’s CEO and its president, provid ing strategic planning advice and guidance

Savills North America Appoints New General Counsel regarding all legal matters and services for “WithSavills.significant in-house and private prac tice experience, James has established him self as an invaluable member of our internal legal team,” said Mitchell E. Rudin, chairman and CEO, Savills. “In a short time, James has demonstrated his ability to advance our strategic priorities and thoughtfully navigate complex issues. We are proud to have a pro fessional of his caliber in the role and join the firm’s leadership group.”

James Repking

Anjali Mathai

“We are absolutely thrilled to welcome this high-profile team, with its extensive and diverse experience in the food and beverage space, to the Mona family,” said Brandon Singer, CEO of Retail by Mona. “Their collective expertise is Retail by Mona Adds F&B Brokers to Growing Team

EXECUTIVE CHANGES

SEPTEMBER 2022 | MANN REPORT 119

incredible and will add a new dimension to our team as we navigate the challenges and oppor tunities of the ever-evolving retail landscape.” Turboff began her career at BCD in 2003, working with franchisees such as Quiznos. Over the years she worked with brands in cluding Mexicue, Boqueria, Five Guys Burg ers & Fries, Tacombi, Ippudo, Joe’s Pizza, Dai ly Provisions, Burger & Lobster, Joe Coffee, The Meatball Shop, Toby’s Estate, Shelsky’s, La Pecora Bianca, Wagamama and Veggie Grill. She was elevated to partner at BCD in 2021. She also has deep experience working with architects, expeditors and attorneys.

Leasing and advisory firm Retail by Mona is expanding its food and beverage reach with the addition of Alexandra Turboff’s team. Tur boff, previously a partner at Branded Concept Development (BCD), which was acquired by Ripco Real Estate, has joined Retail by Mona as executive vice president. Former associ ate partners at BCD Jason Lloyd and Marisa Simkin will join the firm as senior associates.

Lloyd brings significant firsthand knowledge of the food and beverage industry, having spent nearly two decades as an operator, investor, consultant and chef. Prior to joining BCD, he co-founded Cow & Clover, a 110-seat restaurant, bar and event space located in Williamsburg, Brooklyn. He joined BCD as manager of real Estate in 2018 and became associate partner in 2021. Recently, he has worked on deals on be half of Veselka, Everytable and Andrew Tarlow. Simkin spent her early career in hospitality, including positions at Peet’s Coffee & Tea and Plan Check Kitchen & Bar in Los Angeles. She joined BCD as a project manager in 2019 and moved to the real estate team in 2020, where she collected and analyzed market information and participated in lease negotiations on behalf of clients including Stand Up Burgers, HAGS, Bourke Street Bakery, Yellow Rose and Chinah.

Photo via PRNewswire Marisa Simkin, Jason Lloyd and Alexandra Turboff Anjali Mathai has joined architecture firm HLW as director of Diversity, Equity and Inclusion (DEI), operating out of the firm's New York City office. Mathai brings nearly two decades of experience in organizational design, development and change manage ment to the firm, with an emphasis on com munication transparency. Mathai's addition affirms HLW's commitment to cultivating a people-first work environment and culture of social responsibility, reinforcing its organiza tional foundation from which bold, innovative ideas can emerge, the firm said. "For over a century, HLW has used design to advance positive change in the world. Today, HLW Welcomes New DEI Director we recognize diversity, equity and inclusion is an indivisible part of creating a sustainable future,” said Susan Boyle, managing partner at HLW. “We’re excited to welcome Anjali into her new role and look forward to collaborat ing with her. With Anjali on board, we will fo cus on centering equity within the firm and its work, and we will use her insight and experi ence to find innovative solutions for some of our industry's most challenging issues.” In her previous work as a licensed social worker in the nonprofit field, Mathai devel oped a profound sense of empathy and passion for deepening human connections, solving complex challenges and implement ing best inclusion practices. At HLW, she will work closely with the firm's leadership team to cultivate a work culture open to transpar ent dialogue, which will enhance the employ ee experience and increase engagement and collaboration across the organization. She will oversee the convergence of the firm's various existing corporate social re sponsibility initiatives and culture-based programs under a single umbrella, including HLW's recent alignment with the International Living Future Institute and Just certification. Mathai will also support the human resourc es team in further building out the firm's eth nically and socially diverse professional staff –– a workforce that is currently more than 50% composed of women and minorities, with BIPOC (Black, Indigenous and people of color) and AAPI (Asian American and Pacific Islander) professionals accounting for 37% of the team.

Shawmut Design and Construction Expands West Region Capabilities with Key Executive Hire Dumke brings 40 years of industry experience to his role and will leverage his extensive portfolio of major, complex projects throughout California to drive the firm’s market share of increasingly larger projects across sectors. With previous roles as vice president, general manager and California district lead at other major construction firms, he is fluent in preconstruction, design-build and ground-up construction operations, bringing experienced best practices to the role. Dumke is an active member of the Associated General Contractors of California, having served on the Orange County and Los Angeles Board of Direc tors, and is currently a member of the State Con struction Education Foundation Board.

Joseph Chiarelli

EXECUTIVE CHANGES

As part of the expansion of its portfolio and offerings, Shawmut Design and Construction has hired Daniel Dumke as senior director in the West region, positioning the firm to aggressively expand market share in Los An geles and Orange County.

“As we grow our average project size and break into new sectors, we need a very specific skill

Daniel Dumke

“Jocelyn represents the next generation of project managers in the city, bringing both onsite experience and educational training to the job,” Caiola said. “She is exceptionally well-or ganized and already an asset to our team.” Glymph worked at Edison Properties as a pro ject manager for nearly five years prior to her position at Resolution. Earlier in her career, she served as an assistant project manager for three years at JAM Consultants. She holds certifications as a Procore Certified Project Manager in Core Tools, Quality & Safety and Project Management, and attended Borough of Manhattan Community College.

Resolution Real Estate Partners LLC, a member of NAI Global, announced that Jocelyn Glymph has joined its construction management divi sion as a project manager. In her new position, Glymph will work directly with Erik Caiola, director of construction, on projects including the $120 million restoration and repositioning of the McGraw-Hill Building at 330 West 42nd St. and the 42,000-square-foot, gut renovation of 150 East 45th St. for HAB Bank.

“Our firm is not only expanding exponen tially to meet market needs, but we are also adding more women to our team in our property management and leasing divi sions, as well as construction management,” said Dana Moskowitz, partner, Resolution Real Estate. “It all comes down to hiring the best candidates for the job and once again, we have!” Jocelyn Glymph Veteran New York area construction execu tive Joseph A. Chiarelli has joined EW Howell Construction Group as a vice president. Chiarelli has more than 30 years’ experience navigating the construction industry in the greater New York region, including New York City and Long Island. He most recently served as the president of NYC Metro Operations at Consigli Construction. He also spent 19 years

120 MANN REPORT | SEPTEMBER 2022

Construction Industry Veteran Chiarelli Joins EW Howell Construction Group at T.G. Nickel & Associates; as partner, execu tive vice president and director of operations, he was instrumental in transforming a small, upstart construction firm into a nationally rec ognized builder in the New York region. “Joe is well-respected in the industry, and we are pleased to welcome him to EW How ell. His construction industry experience aligns well with the firm’s direction and future goals,” said Daniel Williams, president of EW Howell. “As a new addition to our team, Joe supports EW Howell’s continued expanding presence as one of the leading general con tractors and construction managers in the New York metropolitan region.” Chiarelli sits on the board of the Minority and Women Contractors & Developers As sociation and volunteers with the Friends of NYIT School of Architecture & Design, which promotes a relationship between AEC design professionals and current stu dents. Chiarelli received his undergraduate education at NYIT and was a recipient of its Spotlight Award.

RE Expands ManagementConstructionDivisionwith Glymph

“I am pleased Ed made the decision to join us at Pegasus,” commented Pegasus Founder and CEO Lindy Ware. “A seasoned leader like Ed will add to the strength of the Operations Lead ership team that is taking us into the future.”

Buckley’s skills will be instrumental in the con tinued implementation of “Pegasus Next,” a multi-stage strategy to bring innovation to the multifamily sector through transformation of its digital tools, empowerment of its people and refinement of its systems, the company said.

James Buckley Mitti Liebersohn and Arthur J. Mirante, II, two of commercial real estate’s most successful and highly regarded professionals, have joined Savills as chairman, New York brokerage and vice chairman, North America, respectively. Liebersohn and Mirante, both of whom will be based out of Savills’ New York office and North American headquarters in New York City, are joining the firm from Avison Young. Over the past year, Liebersohn and Mirante were involved in several high-profile trans actions eclipsing the 100,000-squarefoot mark. In February, the duo represented Santander Bank in a 160,000-square-foot sublease at 437 Madison Ave., allowing the Liebersohn, Mirante Depart

Savills with our eyes towards the future and are eager to work in partnership with the firm’s leadership team to elevate its already stellar reputation in North America,” said Mirante. “It’s an exciting time to be a part of a company with its arrow clearly pointing up. We are looking forward to the op portunity to combine our market expertise and knowledge with Savills innovative platform.”

Under his leadership, the office more than doubled in size. He has also served as a vice chairman at JLL and Cushman & Wakefield.

EXECUTIVE CHANGES

Pegasus Residential Names Buckley VP of Operations designation and has served as a long-time member of the Atlanta Apartment Associ ation where he was a Leadership Lyceum graduate in 2019. Before joining Pegasus Residential, he was vice president of operations for Avenue5 Residential and a senior regional manager with Greystar, Integral Property Management and Signature Management.

Born and raised in Boston, Buckley now lives in the Atlanta metro area.

Boutique third-party management firm Pe gasus Residential has named Ed Buckley vice president of operations. Buckley began his multifamily career in 1998 with Equity Residential and has overseen the perfor mance of lease-ups, stabilized and mixeduse apartment communities as well as LIHTC properties throughout the southeast and mid-Atlantic. Buckley has the NAA Cer tified Apartment Portfolio Supervisor (CAPS)

Liebersohn, who joined Mirante at Avison Young in 2012, served as president and managing director of its New York City office.

Avison Young for Savills global bank to relocate its headquarters to the 40-story office tower. In October of 2021, they represented the Hospital for Special Sur gery (HSS) in a 200,000-square-foot lease at 403 East 79th St. “There are many reasons as to why Arthur and I were attracted to Savills; chief amongst them is the firm’s supportive and collabora tive culture, and its emphasis on providing its clients with an unparalleled level of service,” said “MittiLiebersohn.andIarejoining

Mirante, previously Avison Young’s prin cipal and chairman of the tri-state region, also served as Cushman & Wakefield’s CEO for nearly 20 years. During his tenure at Cushman & Wakefield, the firm’s revenues increased from $80 million to $1.2 billion, and its footprint expanded from 60 U.S. offices to 173, including 100 outside of the country.

Arthur J. MiranteMitti Liebersohn set including executional excellence, strong leadership and business acumen,” said Greg Skalaski, executive vice president of Shawmut’s West region. “Dan’s portfolio of major projects for the top higher education institutions and advanced technology facilities, coupled with his experience leading divisions and opera tions, made him a natural fit for this role.” Dumke’s appointment comes on the heels of continued market expansion across diverse sectors for Shawmut in Los Angeles and beyond, focused particularly on growing its education, ground-up commercial and life sciences sectors. From 2021 to 2022, Shaw mut’s West region revenue is slated to grow 104% for education, 94% for commercial and 46% for life sciences.

SEPTEMBER 2022 | MANN REPORT 121

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“Josh Berger is an exemplary leader who represents the next generation to help run our business,” said Norman Bobrow & Co. Founder and President Norman Bobrow. “Most importantly he follows each deal through to completion, often exceeding the expectations of his clients. Josh stresses accuracy, attention to detail and an unparal leled level of service and professionalism.” Berger joined Norman Bobrow & Co. as di rector of commercial leasing and investment sales in 2009. In 2014, he was named man aging director of commercial leasing and in vestment sales. He has represented firms in the fields of advertising, technology, non-profit, finance, public relations and fash ion, among others. Some of Berger’s clients include: Equinox, Make-Up Designory, Boyar Value Group, Clear Street Management, Jor Josh Berger Vice President, Norman Bobrow & Company

J osh Berger, managing director at Norman Bobrow & Co., was recent ly promoted to vice president of the independently owned tenant-rep commercial real estate brokerage firm. In his new position, Berger assists the brokers in the firm to drive higher revenues and transac tion activity in both Manhattan and the outer boroughs and help with the firm’s Broker De velopment Program and Internship Program.

My desire to create wealth for myself and my family. As the son of immigrant parents, the value of being able to stand on my own two feet financially was instilled in me from a young age. What is your most significant deal thus far? In 2021, I completed a 44,000-square-foot deal at 4 World Trade Center on behalf of Clear Street Management. I have represent ed Clear Street for many years, and this deal was the culmination of a lot of hard work and relationship management. What pushes you to the next level?

There’s no substitute for hard work in real estate. You have to put in the time and create efficient systems to maximize your day. Fail ure is a requirement — the question is how you respond in the face of adversity. Don’t give up; learn from your mistakes.

dache Enterprises, Museum of Women, WCD Group, Kargo and Transit Wireless. Outside of his time in real estate Berger ex plores his many creative passions including abstract painting, music production and photography. In 2018, he sold 40 works at his solo show, from which all proceeds were donated to The Lower East Side Girls Club. He received his B.S. in Marketing/Business Administration from Yeshiva University.

My desire to grow, learn and become more efficient. I try as hard as I can to always keep forward momentum to avoid stagnation. This brings its challenges. Without constantly challenging myself, I can get complacent and complacency leads to a disconnect from re ality and fulfillment.

I volunteer weekly with someone named Ed ery, who is blind. His level of happiness, zest for life and constant drive to further his career and help others are incredibly inspiring.

COMMERCIAL CORNER 126 MANN REPORT | SEPTEMBER 2022

A MODERN APPROACH TO COMMERCIAL REAL ESTATE, POWERED BY A CENTURY'S WORTH OF EXPERIENCE. 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 would like to take this opportunity to thank the following people: We hope everyone continues to be healthy and safe in 2021. K A U F M A N O R G A N I Z A T I O N . C O M L E A S I N G | M A N A G E M E N T | I N V E S T M E N T S

The percentage of proptech investors who plan to increase their investments over the next 12 months (Metaprop Year-End 2021 Global Prop tech Confidence Index) $18.2 Billion/ $86.5 Billion

PROPTECHPROPPING

Your Square Footage and Dollar Values, Delivered.

The stock market may be volatile, interest rates are rising and housing price gains may be slowing, but one investment that seems to be sustaining its momentum is real estate’s newfound love of technology. Proptech investment continues to rise as the industry sees the benefits of greater efficiency and connectivity. It seems that its growth won’t stop anytime soon, as we can see by the numbers.

BY THE NUMBERS

The projected size of the global digital signature market in 2025 (Adroit Market Research) $5 billion

The size of the U.S. proptech market in 2022 and project ed size in 2032, respec tively, a compound annual growth rate of 16.8% (Future Market Insights) 71%

Residential sector’s share of venture funding, the largest block (CRETI) 36%

Venture capital investment into proptech in 2021, up 28% from 2020 and a 3.23% rise from 2019 (Center for Real Estate Technology & Innovation) 162 The number of proptech mergers and acquisitions in 2021 (Houlihan Lokey) Billion$32

128 MANN REPORT | SEPTEMBER 2022

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Mann Report September 2022

Articles inside

Commercial Corner: Josh Berger, vice president, Norman Bobrow & Co

Crossword: Be Sea-ing You

Executive Changes

Fordham University Hosts Industry Leaders on Interest Rates Inflation and Impact on Business and Real Estate

All Aboard: Storylines Developing a Residential Community at Sea

Resilient, Affordable Homes Come to Downtown Far Rockaway

Space Hero, Lava and One Digital Team for Space Village

Five Trends in Commercial Leasing

What’s Happening in the West Village in a Post Pandemic World?

Breaking News

Management News

How AI and Machine Learning are Reshaping the Way Transit Systems Move Traffic Patterns

How Proptech Can Help Multifamily Real Estate Owners Overcome Modern Challenges

Lights On: How Traffic Signal Priority Technology Contributes to Increased Urban Mobility and Improved Property Values

The Only Thing Holding Back Real Estate Tech is Talent

Putting the Metaverse to Work in Commercial Real Estate By Jeremy Bergstein

Tech Talk

Ariel Property Advisors Hosts Coffee Cap Rates

Residential News

Commercial News

Editor’s Letter

JRM Construction Management Hosts 15-Year Anniversary Celebration

Shawmut Design and Construction Celebrates 13th Annual Safety Week

Jewish Children’s Museum 16th Annual Golf & Tennis Outing Honors Hub International’s DeLucia

Jewish National Health Hosts Breath of Life Golf Classic