THE RESIDENTIAL ISSUE
PROPTECH FOR THE HOME AND NEW YORK LOS ANGELES MIAMI HAMPTONS LAS VEGAS ASPEN
MORE DEBUTS AT CES 2024 DECARBONIZING YOUR BUILDING WITH MODERN CONTROLS: TAKING THE FIRST STEPS UNVEILING THE GRAND SHIFT: NAVIGATING THE REAL ESTATE WEALTH TRANSFER
On the Waterfront:
Dynamic Star Brings Wellness to the Boroughs Brad Zackson, Co-Founder of Dynamic Star
Navigate turbulent times with confidence. With our deep insight and experience, where others see challenges, we see opportunities.
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FEBRUARY 2024
| MANN REPORT 1
46TH ANNUAL
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They said it couldn’t be done. We didn’t listen.
We’ve done hard things before, we do them all the time. For most cancer patients, the usual options are surgery, chemotherapy, or radiation. So we’re working on ways to get the immune system to deploy billions of cancer-killing cells and help more patients survive. When some people experienced mysterious COVID symptoms and had nowhere to go, our team created the first Center for Post-COVID Care. It wasn’t that long ago we had to open up your whole chest for heart surgery. Now we’re pioneering a bypass that goes through a few tiny incisions. With this surgery, we can get you back on your feet in weeks instead of months. So if anyone ever tells you there’s no other way—don’t listen.
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FEBRUARY 2024
| MANN REPORT 3
A NEW VIEW As we enter New York’s next chapter, our commitment to the City’s vitality, to our community, to our partners, to our tenants, and to our portfolio remains steadfast. We look forward to a bright and shared future.
Ownership/Management/Leasing • Tenant Representation Agency Representation • Co-GP and LP Real Estate Investments Scott Galin, Principal/CEO | 212.398.1888 | Handler-re.com
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EDITORIAL
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FEBRUARY 2024
| MANN REPORT 7
Photo Courtesy of TBar 2018
Tony Fortuna OCTOBER 1947-JANUARY 2024 NEW YORK CITY HAS LOST A DEAR FRIEND On behalf of my wife Annie and I, it is with deepest sympathy we have to say goodbye to Mr. Tony Fortuna. Tony was a dear friend of ours for over 30 years as he was with most of New York City and anyone that got to know him. T-Bar has delicious food, a great staff and a great crowd. Tony brought a special touch into the place as he knew everyone that walked in. Anyone who walked in, Tony saw as a friend and he couldn’t do enough to make everyone feel welcome. Tony, on behalf of myself and Annie, along with our friends and the people of NYC, we will miss you very much. No restaurateur has the warmth, personality and love that makes dining in your place a great experience. We will remember you forever. With much love, Annie and Jeff Mann
ONE MANN’S OPINION Our February issue is always exciting — we’re producing it as the New Year begins and gives us a chance to see what’s on your mind. In addition to our cover feature on Dynamic Star’s developments along our waterways, I was excited to learn about new technology, and our ongoing concerns for maximizing the efficiency of our buildings, while our AEC section features some truly beautiful design and construction work. After a wintry January (shocking, I know), it is nice to revisit all that our industry does to celebrate success, educate our industry and help those in need through our events. Fried Frank, for example, always brings together the most amazing and successful people in our industry. I was delighted to learn about what the American Friends of Natal do to support those who are healing from trauma and PTSD, and Anchin has always helped us learn more about business so we can plan for the future. Our future at Mann Publications is bright, too, with bold new looks for our magazines, increasing our social media presence for Mann Report and some exciting plans. I hope you can take a bit of time for some sun and warmth this month — or that you’re too busy and productive to do so right now. See you in March.
“To be able to enjoy one’s past life is to live twice.” — Martial
FEBRUARY 2024
TABLE OF CONTENTS
EVENTS 16
Fried Frank Hosts Holiday Party
18
American Friends of NATAL Hosts a Night of Hope and Strength
20
Anchin Hosts State of the Construction Industry Event
NEWS BRIEFS 24
Commercial News
28
Residential News
32
Management News
36
Tech Talk
28
Photo via PRNewswire
40
Breaking News
FEATURES 50
Tri Pointe Homes Launches Customer Experience Application for Homebuyers
52
Proptech for the Home and More Debuts at CES 2024
54
Decarbonizing Your Building with Modern Controls: Taking the First Steps
60
Empowering Investors to Thrive in Challenging Market Conditions
62
Unveiling the Grand Shift: Navigating the Real Estate Wealth Transfer
60 10 MANN REPORT | FEBRUARY 2024
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FEBRUARY 2024
TOC
COVER FEATURE
DEPARTMENTS 9
One Mann’s Opinion
14
Editor’s Letter
66
Columns
90
Executive Changes
94
Commercial Corner: Joseph Caltabiano, Healing Realty Trust
96
By the Numbers: Residential Sales: Back to Business
44
ON THE WATERFRONT: DYNAMIC STAR BRINGS WELLNESS TO THE BOROUGHS
COLLEGES
NG SOUTH
Photo courtesy of Perkins Eastman
View Looking East (From Harlem River)
NY 10468
80
New York City: For Fordham’s Harris, the Ultimate Real Estate Classroom
AEC 82
IMC Architecture Completes New Le Café Coffee Location at One Dag in Manhattan
84
JRM Completes CAMP Space at Hospital for Special Surgery
86
McCarthy Building Companies Breaks Ground on $285M UC, Riverside Student Housing Project
82 mannpublications.com
Photo Courtesy of IMC Architecture
FEBRUARY 2024 | MANN REPORT 11
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12 MANN REPORT | FEBRUARY 2024 The information contained herein has been obtained from sources believed reliable. While we do not doubt its accuracy,mannpublications.com we make no guarantee, warranty or representation about it. The prospective tenant should carefully verify each item, and all other information herein.
KNOW GREATER VALUE From financing considerations, to property performance metrics, today’s real estate business is inundated with both challenges and opportunities. PKF O’Connor Davies has decades of experience working with a variety of assets including industrial, office and residential sites. Our experience in this complex field gives us the expertise to deliver strategic advice that drives real value. With the PKF O’Connor Davies Real Estate Team, our clients know greater service, know greater insights, Know Greater Value.
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FEBRUARY 2024 | MANN REPORT 13
EDITOR’S Maybe because it’s February, the dreariest month of the year, I’m all about sunshine and the water. It was a pleasure to speak with Brad Zackson and his vision for a New York that embraces and uses its waterfront. I adored commuting from the Wall Street area to the Rockaways via ferry and have never really understood why a city with four of five boroughs on islands hasn’t used the water more. His Dynamic Star has a terrific plan for the city, one I can’t wait to watch grow. Elsewhere, look at some of the new smart home and smart yard technology recently spotlighted at CES in Las Vegas, Trane’s Brad Meyers on how smart controls can contribute to decarbonization and Tri-Pointe’s new app that will help buyers of new-build houses get through the process more easily. (Trust me — I’ve purchased three new builds). And, as always, our columnists keep us up to date on the latest trends and challenges facing the industry today. It’s a new world that’s embracing the old — our seas and rivers — and cutting-edge tools. We’re excited to keep reporting on it for you. -Debra Hazel
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LETTER
14 MANN REPORT | FEBRUARY 2024
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FEBRUARY 2024 | MANN REPORT 15
EVENTS
FRIED FRANK HOSTS HOLIDAY PARTY Photos by Michael Priest of Michael Priest Photography and Patrick Nugent and Geoff Hauschild of Camera 1 Fried Frank’s 2023 Real Estate Holiday Party welcomed more than 850 guests to Cipriani 42nd Street. Hosted by Fried Frank’s real estate department and Jonathan Mechanic, chairman of the firm’s real estate department, the annual event brought New York’s real estate community and leaders together in celebration of the holiday season.
Marty Burger, Silverstein Properties; Ben Brown, Brookfield Real Estate; Bruce Mosler, Cushman & Wakefield and Jonathan Mechanic, Fried Frank
Valerie Kelly, Fried Frank and Lauren Corrinet, CBRE
Carl Weisbrod, HR&A Advisors; Judy Kessler, Vornado Realty Trust and Carol Rosenthal, Fried Frankank
Jennifer Yashar, Fried Frank; Lisa Harris and Rachel Rittman, Warner Brothers Discovery; Nicole Meyer, Kushner Companies; Anita Laremont, Fried Frank; Roxanne Donovan, Great Ink Communications; and Mary Ann Tighe and Linda Lindman, CBRE Group
16 MANN REPORT | FEBRUARY 2024
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EVENTS
Jonathan Mechanic, Fried Frank and Scott Rechler, RXR Realtyank
Peter Allen, Global Holdings; Michael Werner, Fried Frank and David Hochfelder, Naftali Group.
Robert Sorin, Fried Frank; Karen Holdridge, Boston Properties and Glen Feinberg, Citadel
Jonathan Mechanic, Fried Frank; Valerie Peltier, Tishman Speyer and Bill Rudin, Rudin Management
Jonathan Mechanic, Fried Frank and Alexis Kremen, Related Companies
Laurinda Martins, Fried Frank and Albert Picallo, Blackstone
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FEBRUARY 2024 | MANN REPORT 17
EVENTS
American Friends of Natal Hosts a Night of Hope and Strength Photos by Nicolette Richards/Ambassador Images American Friends of Natal (www.afnatal. org), an organization dedicated to trauma preparedness and recovery, hosted a gala focused on hope and healing honoring Ofer Yardeni, chairman and CEO of Stonehenge NYC and Dr. Itamar Barnea, Natal’s chief psychologist. More than 450 guests attended the event, hosted by tv Correspondent and Producer Natalie Serraf-Shiro.
Josh Yardeni, Ofer Yardeni and Jamie Yardeni
“This event was originally planned as a celebration of 75 years of the State of Israel, to reflect on the impact Natal has made in helping those with trauma and PTSD, and to mark the 50th anniversary of the Yom Kippur War. All of that changed after October 7 [when Hamas staged a terrorist attack],” said David Kostman, chairman of the board of directors of American Friends of Natal. “Tonight we gather to support Israel and Natal as it continues to be a beacon of hope for a better life for the millions of people who need to be helped through the power of healing.” Honored with the 2023 Humanitarian Award, Barnea was absent due to his commitment to helping families of those taken hostage and those who have returned, by training teams of mental health professionals. The award was accepted on Barnea’s behalf by Ran Eliasaf, American Friends of Natal board member, a retired captain of the Israeli Navy and founder and managing partner of Northwind Group. The 2023 Impact Award was presented to Ofer Yardeni, the founder and force behind Stonehenge NYC, which owns a portfolio of 23 residential apartment buildings encompassing over 3,000 units. The award was presented by Natal Co-founder and Chairperson Jude Yovel Recanati. Generous support came from Platinum sponsors Ran and Isabelle Eliasaf of the Northwind Group and Yardeni. On the Silver tier, the event had the backing of law firms Polsinelli and Greenberg Traurig LLP. City Parking, known for its urban parking solutions, also joined as a Silver sponsor, as did Lauren Schor and Martin Geller. Sara Rubenstein, Efart Sharupt, David Kostman, Jude Yovel Recanati, Dr. Dity Brunn and Ran Eliasaf
18 MANN REPORT | FEBRUARY 2024
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EVENTS
Chanie Apfelbaum, Natalie Sarraf Schiro and Melinda Strauss
Evan Silver, Ofer Yardeni and Josephine Warshauer
Alecia Messer and Maayan Aviv
Tanya Zuckerbrot and Anthony Westreich
Richard Dovere and Alina Dovere
Sheri Yardini and Lori Margolis
Ran Eliasaf and Pastor Chris Harris
Adi Cohen and Stephen Cohen
Emi Palmor, David Kostman and Jude Yovel Recanati
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FEBRUARY 2024 | MANN REPORT 19
EVENTS
Anchin Hosts State of the Construction Industry Event Photos by Ben Asen of Ben Asen Photography Accounting, tax and advisory firm Anchin held its 18th annual State of the Construction Industry breakfast reception and event at Club 101 on Park Avenue. The event was also sponsored by the New York Building Congress (NYBC), the American Council of Engineering Companies of New York (ACEC New York) and the Subcontractors Trade Association (STA). The event was keynoted by Janno Lieber, chair and CEO of the Metropolitan Transit Authority (MTA). Panelists included Carlo Scissura, president and CEO, New York Building Congress (moderator); Laura Bush, director of operations, NYC Metro region, Consigli; Ian McNamara, senior vice president, East region development director, WSP; John Rice, president and principal, Legacy Engineers and Kirsten Sibilia,
managing principal, Dattner Architects. Lieber provided an update on the MTA and the status of its financial stability as a significant factor in enabling an opportune moment for the MTA and the future of mass transit in the metro area. The MTA recently achieved its highest ridership since the pandemic, with over six million daily commuters, and its on-time performance is its best in the last 10 years. Lieber emphasized the importance of efficiency, and the vital role transit plays in getting people back to work in rebuilding the city and restoring the office sector. “We should be investing every year to maintain a 100-year-old operation that is worth $1.5 trillion. That’s what it takes, and we need to be willing to invest,” Lieber said, underscoring the
importance of making investments to maintain and repair transit infrastructure. On the need for upgrades, Lieber warned that “to operate a modern facility, we would be in serious danger if we don’t go beyond just maintaining a state of repair to continually meet the needs of a growing population.” With a $3.5 billion grant from The Federal Transit Administration (FTA), the MTA is currently working on implementing modern subway services, as described by Lieber. The next capital program may also include the recently proposed Interborough Express where the Bay Ridge freight line will be transformed into first-class transit. Lieber concluded by emphasizing the need for congestion pricing that has been largely
Carlo Scissura, New York Building Congress; Phillip Ross, Anchin; Ian McNamara, WSP; Laura Bush, Consigli; Janno Lieber, MTA; Kristen Sibilia, Dattner and John Rice, Legacy Engineers
20 MANN REPORT | FEBRUARY 2024
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Terry Pissi, Anchin and Ellen Ford Morelli and Joseph Morrelli, Power Resources International
unpopular, but much needed to reduce traffic in midtown so that emergency and other vehicles can provide critical service to the people within our city. Scissura described new challenges in housing, citing that “while we need 30,000 new homes, we are only at about a third of the way there.” Issues such as whether or not it makes financial sense to the developer and making housing work for the middle market were discussed. Spot re-zoning was suggested as a possible solution. Panelists described resiliency challenges while discussing the potential impact of climate change on future projects. Sibilia added that “challenges exist for resiliency in renovating our existing structures. For example, NYCHA housing is in great need of repair, and it’s a challenge to carry out any new construction without displacing tenants. Hurricane Sandy and other disasters are an example that new and more resilient housing needs to be built in a way that the units can live through multiple severe weather events.”
Keynote speaker Janno Lieber, MTA From left: Kristen Sibilia, Dattner; John Rice, Legacy Engineers; Ian McNamara, WSP and Laura Bush of Consigli. Moderator: Carlo Scissura of New York Building Congress
Planning for climate change is critical. “We have lots of work ahead of us in training a new generation of design professionals as we are working toward infrastructure that will accommodate climate change and cleaner energy sources,” said Rice. Other futuristic considerations in new technologies were discussed as MacNamara expressed that he expects technologies to have an outsized impact on A/E/C firms, stating that, “AI is absolutely going to change my business on a daily basis one hundred percent. We are seeing new guidelines across the board concerning AI, and how these new things are going to fundamentally change the way we work and conduct our businesses.” Other items such as frustrations with backlogs, continued delays in supply chains, and the impact of higher inflation costs were expressed among panelists. As infrastructure and IRA funding decisions are due out next year, panelists concluded that these will require the industry to be more adaptable and resilient than ever.
Guests and speakers mingling at the event
Facing: Guy Geier, FXCollaborative; Matt Hochman, Chubb and far right, Steven Linden, Anchin
More positive news included exciting new opportunities in new healthcare construction, education and life sciences. Bush added that “Consigli is currently working with five health care providers and that great opportunities were coming through the door.” Cameron Dake, Consigli (center) with guests
22 MANN REPORT | FEBRUARY 2024
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COMMERCIAL NEWS
Newmark Arranges $153.5M Sale of 1.1MSF Downtown LA Office Building Newmark Group Inc. has arranged the sale of Aon Center, a 62-story trophy Class A office tower located at 707 Wilshire Blvd. in the heart of the Financial District in Downtown Los Angeles. The asset was sold to Carolwood Equities for $153.5 million, marketing the largest Q4 2023 office sale in the western U.S.
Photo courtesy of Newmark
Newmark Co-Head, U.S. Capital Markets Kevin Shannon, Vice Chairmen Ken White, Rob Hannan, Laura Stumm and Michael Moll, Senior Managing Director Chris Benton and Managing Director Anthony Muhlstein represented the undisclosed seller. Newmark Vice Chairman David Milestone facilitated debt financing. The team was involved in two of the three largest office sales that occurred in Los Angeles County in 2023. “As the exclusive sales broker, Newmark ran a broad global marketing process for Aon Center, which included exposure to more than 119,000 principals, generating 156 confidentiality agreements, 26 property tours and 18 offers,” said Shannon. “Having sold four of the last five sales in the market, including Union Bank Tower, 801 Grand, 444 Flower and now Aon Center, our team has an unmatched pulse on the unique audience of predominately family office buyers for Downtown Los Angeles. The buyer of Aon Center actually was a backup buyer for our 801 Grand process earlier in the year.”
rooms, a fitness center, an on-site coffee shop, a bank and EV charging stations. The building was 64% leased at the time of sale to a diverse roster of tenants including Aon and Morrison & Foerster. No single tenant occupies more than 7% of the building (net rentable area), providing an investor diversity of income.
The third tallest building in Los Angeles and the fourth tallest in California, Aon Center is comprised of over 1.1 million square feet. Extensively renovated in 2020, the property features a three-story architectural lobby and a variety of tenant amenities, including training
Situated in Downtown’s Financial District, the property boasts a walk score of 99 and a transit score of 100. Aon Center provides immediate Metro access and is surrounded by walkable amenities including Crypto.com Arena and LA Live.
Fontainebleau Las Vegas Debuts After 18 Years More than 18 years after it was announced and 16 years after its groundbreaking, Fontainebleau Las Vegas, the 67-story luxury resort and casino by Fontainebleau Development, opened its doors on the Las Vegas Strip on December 13.
Photo by David Becker/Getty Images for Fontainebleau Las Vegas
Fontainebleau Las Vegas resides on nearly 25 acres in a premier location adjacent to the Las Vegas Convention Center District West Hall. The resort features a 150,000-square-foot casino, world-class dining, entertainment and nightlife, and more than 3,600 hotel rooms and suites. “The Fontainebleau era in Las Vegas begins now,” said Fontainebleau Development Chairman and Chief Executive Officer Jeffrey Soffer at the opening. Soffer announced the development in May 2005. “This magnificent resort is a testament to our 70-year commitment to excellence, a catalyst that will change the way the world views luxury hospitality and design on the Strip.” Originally projected to open in 2009, the complex went bankrupt in 2009 during the Great Recession and went through a series of owners (including Carl Icahn and Marriott International) and names in the following years. Construction was halted at the beginning of the COVID-19 pandemic, and Soffer reacquired the property in partnership with Koch Real Estate Investments in February 2021. The hotel was renamed Fontainebleau Las Vegas in late 2021. The festivities began with a “Bleau Carpet” arrival attended by celebrities, dignitaries and VIPs including Cher, Kim Kardashian, Kendall Jenner, Lenny Kravitz, Jessica Biel, Axl Rose, Las Vegas
24 MANN REPORT | FEBRUARY 2024
Raiders owner Mark Davis, Las Vegas Golden Knights owner Bill Foley, Sylvester Stallone, Tommy Hilfiger and local casino executives. These guests became the first to sample Fontainebleau Las Vegas’ signature restaurant and bar collection, including Fontainebleau originals Don’s Prime, Bleau Bar, Nowhere, Azul and Collins as well as Groot Hospitality’s Papi Steak and Komodo, Chef Evan Funke’s Mother Wolf and Asian-inspired hotspot Kyu, among others. Doors opened to the public shortly before midnight.
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COMMERCIAL NEWS
Monadnock Completes Gowanus/Carroll Gardens’ First Ground-Up Office Building Monadnock Development announced the completion and occupancy of 300 Huntington, a six-story, 136,000-square-foot mixed-use commercial development in Gowanus/Carroll Gardens, Brooklyn, and the neighborhoods’ only new ground-up office/commercial building. The building was designed by a partnership of Dattner Architects and Bernheimer Architecture. Concurrently, the Brooklyn-based developer has announced the completion of 300 Huntington’s public-facing 8,700-plus-square foot waterfront esplanade, a primary gateway to the Gowanus public waterfront park, designed by Scape Landscape Architecture. “Monadnock is pleased to usher in a new year by completing this innovative development and welcoming our tenants and the public to 300 Huntington,” said Nick Lembo, chairman of Monadnock Development. “Offering our community brand-new, column-free workspaces, beautifully curated outdoor spaces and creative retail opportunities is a testament to the work we’ve long undertaken as part of the Gowanus community.” Monadnock Construction has moved into its permanent headquarters on the second and third floors of the building. The firm, which has built more than 25,000 units of affordable and market-rate housing in New York City since its inception 45 years ago, was formerly located at 155 Third St. on the Gowanus waterfront and the site of a forthcoming 22-story residential building by Monadnock Development. Additionally, Hazel Village — an ethical handmade toy manufacturer that partners with artisans in Peru, Nepal, Cambodia, Colombia and locally in Brooklyn — has signed a lease for its new expanded workshop and showroom. “Hazel Village’s expansion to a new space at 300 Huntington marks a new era for our company,” said Jane Van Cleef, CEO of Hazel Village. “The building offers our Brooklyn-based team much-needed room for growth — to our physical space, to our workforce and to our operations overall — and we eagerly look forward to serving the local community
Photo courtesy of Coop
and our customers around the globe by meeting increased demand from our new home.” 300 Huntington boasts 49,000 square feet of column-free office and creative space, along with 17,000 square feet of optimally located ground-floor retail space. In addition to two 4,000-pound passenger/ freight elevators fit for light industrial tenants, the fully electric building offers energy recovery ventilation and a green roof. The building offers tenants access to 7,000 square feet of shared private amenity terrace space, along with the recently completed esplanade and public park, designed by Scape Landscape Architecture as a key point of entry to the Gowanus public waterfront space. The esplanade will deliver several amenities to the public such as waterfront spaces for community gatherings and performances, environmental education, ecosystem restoration and community nurseries. As the first phase to be completed as part of the overall plan, the esplanade is shaded by oak trees as well as metal latticework and vine trellises that evoke Gowanus’ industrial history. Flexible seating options along the building’s frontage provide moments of pause, reflection and relaxation. To help mitigate the effects of stormwater runoff and overflow, the esplanade steps down to a seated overlook and terraced stormwater planters along the canal. Additionally, varying bulkhead heights carve out additional space for a near-contiguous planter with native, water-tolerant plant species to soften the edge condition. Throughout the outdoor terrace, wooden ballast blocks and a textured concrete seat wall provide additional seating options, bordered on one end by a sculpture meadow planted with native grasses.
Ghirardelli to Open First New York Store at Empire State BuildinG Empire State Realty Trust (ESRT) will welcome Ghirardelli Chocolate Company to its first New York City store in a 2,758-square-foot retail space at the base of the Empire State Building (ESB). “Ghirardelli Chocolate is excited to open our first shop in New York. We are proud of our 171-year history that started in San Francisco, and pride ourselves in making quality chocolate so delicious it ‘Makes Life a Bite Better,’” said Ghirardelli Chocolate Company in the announcement. “We can’t wait to welcome our guests in New York to create sweet memories with friends and family for many generations to come. Our shops are designed to showcase our history and heritage and highlight our craft in handmaking our hot fudge. It truly feels like the cherry on top to open in New York City’s iconic Empire State Building. We welcome everyone to visit and grab our World Famous Hot Fudge Sundae this summer!” Ghirardelli will join other building food and beverage retailers which include Chipotle, Chopt, Juice Press, Tacombi, State Grill and Bar, Samurice and the new Starbucks Reserve. ESB retail tenants benefit from high volume foot traffic and access to major transportation hubs and subway lines.
26 MANN REPORT | FEBRUARY 2024
Photo via Business Wire
“Ghirardelli perfectly complements our excellent mix of food and beverage options for tenants and Observatory visitors at the Empire State Building,” said Fred C. Posniak, ESRT senior vice president, leasing. “We are pleased to welcome Ghirardelli Chocolate Company to the most authentic, iconic location in Manhattan.” Fritz Kemerling of Alvarez & Marsal Inc. represented Ghirardelli in the lease negotiations. Posniak and JLL’s Matt Ogle, Corey Zolcinski and Patrick Smith represented the property owner.
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FEBRUARY 2024 | MANN REPORT 27
RESIDENTIAL NEWS
The Ocean Club, Four Seasons Residences, Bahamas, Coming to Paradise Island Luxury hospitality company Four Seasons, U.S.-based real estate development firm Two Roads Development and Access Real Estate have announced their plans for The Ocean Club, Four Seasons Residences, Bahamas.
Photo via PRNewswire
Anticipated to open in 2027 and set within an oceanfront enclave on Paradise Island in The Bahamas, the upcoming residential community will present a curated collection of 67 turnkey Private Residences managed by Four Seasons located near The Ocean Club, A Four Seasons Resort, Bahamas. “We look forward to partnering with Four Seasons to celebrate this iconic destination and to set a new standard for luxury living in The Bahamas,” said Reid Boren, managing partner, Two Roads Development. “With convenient access from major U.S. and international gateways, The Ocean Club, Four Seasons Residences, Bahamas will allow owners and their guests to experience the very best service-rich luxury lifestyle paired with the amenities of The Bahamas’ most legendary resort right next door.” “Since 2017, Four Seasons has been proud to be part of the Paradise Island community and manage such a legendary property that is beloved by many,” said Bart Carnahan, president of global business development, portfolio management and residential, Four Seasons. “Our new Private Residences will be the perfect complement to The Ocean Club Resort while offering a more permanent address to those looking to make this special destination their home with the service and lifestyle excellence that only Four Seasons can offer.” Designed by SB Architects, a specialist in hospitality design, and with interiors by New York-based Champalimaud Design, a design and planning firm specializing in bespoke, high-end hospitality and residential design, The Ocean Club, Four Seasons Residences, Bahamas will capture the beauty of the island throughout the development, the builders said.
All homes will feature oceanfront or ocean views, floor-to-ceiling windows and expansive outdoor verandas for indoor and outdoor entertaining. In addition, each home will have an open floorplan that features premium fixtures, cabinetry, fittings and details throughout. Residences will range from 3,124-interior square-foot two-bedroom and 4,073-square-foot three-bedroom homes to 5,028-square-foot fourbedroom offerings. Five-bedroom beach villas will offer 7,459 square feet of interior living space with 6,604 square feet of outdoor terraces, including a private pool. Penthouses will offer an average of 5,263 square feet of interior living space and 3,917 square feet of outdoor space, as well as a private pool. On-site amenities will include an oceanfront swimming pool with private cabanas and clubhouse, an owners’ library, as well as a lounge, private cellar and rum room, co-working space, children’s playroom, multi-use media room, luxuriously-appointed indoor and outdoor spa treatment rooms and a state-of-the-art fitness center containing dedicated outdoor space. The property will also feature a beachfront restaurant and bar offering main and private dining rooms. Residents will also have access to the amenities at The Ocean Club, A Four Seasons Resort, Bahamas.
Mega Development Unveils Fabric Astoria Plans Mega Development announced its plans for 22-54 46th and 22-51 45th Streets in Astoria, Queens and unveiled Fabric Astoria, an eight-story, two-building development that will offer 99 residences. Building One will be a to-be-announced number of condominiums located on 46th Street, ranging from one- to three-bedroom homes. Building Two will be rentals located on 45th Street and will consist of 64 residences ranging from studios to three-bedroom apartments, of which 44 will be marketrate and 20 will be affordable to middle-income households. “As we continue to deliver quality housing to the communities of New York City, we are excited to produce residences with stylish finishes and a robust amenity package for the neighborhood of Astoria,” said Emanuel Kokinakis, development principal of Mega Development. Designed by New York City-based Dattner Architects, the condominiums at Fabric Astoria will feature energy efficient doublepaned windows, Herringbone-patterned oak flooring, central heating and cooling, fully integrated Liebherr and Bosch appliances, Bianco Calacata Quartz countertops, in-unit washer/dryers and Kohler plumbing fixtures. All residents (both owners and renters) will enjoy over 22,000 square feet of expansive amenity areas including a furnished and landscaped roof-top terrace with sweeping Manhattan views, a second floor furnished and landscaped terrace with a BBQ grill station, a ground
28 MANN REPORT | FEBRUARY 2024
Photo by Brett Fisher
floor courtyard for active exercise and children’s play area, a resident’s lounge with convertible billiards/dining table, a co-working space with private conference room and private work stations, a fitness center, sauna, a children’s playroom, bicycle storage and on-site parking garage with EV chargers. Estimated pricing for the condominiums will range from about $750,000 to $1.75 million and pricing for the rentals will range from about $3,000 per month to $7,000 per month. Located between Ditmars Boulevard and Astoria Boulevard North, Fabric Astoria is situated in a neighborhood that offers a variety of restaurants, bars and shopping.
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FEBRUARY 2024 | MANN REPORT 29
RESIDENTIAL NEWS
Luxury Market Home Sales North of NYC Post Double-Digit Declines in 2023 Faced with a lack of inventory exacerbated by high interest rates, nearly all luxury markets north of NYC experienced double-digit declines in the number of closed sales in 2023, many for the second consecutive year, according to the “Houlihan Lawrence 2023 Luxury Marker Report.” However, the report noted that interest rate cuts projected in mid-2024 will prompt more sellers to enter the market and help alleviate the inventory shortage. In New York, the total sales of Westchester County homes priced at $2 million and higher declined 26.7% year over year, while the median sale price rose 0.9% over 2022. In Putnam and Dutchess counties, sales of luxury homes (priced $1 million and higher) dropped 39.1% over 2022, with the median sale price down 3.9%. In Connecticut, the number of Greenwich luxury home sales (priced $3 million and more) was down 15.2%, while the median sale price rose 6.5%. Darien luxury sales (priced $2 million and higher) rose 7.3% with the median sale price down 5.8%. In New Canaan, the number of homes $2 million and higher declined 14.5%, while the median sale price rose 0.4%. According to the report, the number of sales over $10 million in Westchester County and Greenwich were close to all-time highs in 2023. Uber-luxury buyers and sellers had the wind at their back. Buyers at this level possessing multiple real estate holdings flexed their spending power as they pursued a well-diversified investment portfolio. For buyers, lack of inventory created competition. Luxury homes (on average) sold for close to 100% of list price. Though days on market ticked up slightly in 2023, listings sitting on the market over 100 days are often overlooked by buyers due to price and/or presentation. Conversely, a change in price or staging often transformed a languishing listing into a desirable offering.
Photo courtesy of Houlihan Lawrence
“There has been a growing interest in sustainability for luxury real estate buyers. Energy-efficient homes that monitor energy usage and reduce carbon footprint is one path to sustainability. Preservation is another trend of younger, eco-conscious luxury buyers purchasing period homes with the belief that the greenest home is one that is already built,” said Anthony P. Cutugno, senior vice president, private brokerage. “Homes built before 1940 tend to be inherently environmentally sustainable, and though updates are often needed, keeping an existing structure intact is the ultimate recycling project for this group of buyers.” All eyes are on this year’s presidential election, and the impact it will have on the economy and the global landscape, Cutugno added. “We are hopeful that the expectation of lower interest rates in the second half will help improve the trajectory of luxury real estate north of NYC,” he said.
Sotheby’s International Realty Opens in Anguilla Continuing its growth in the Caribbean, Sotheby’s International Realty announced the opening of Anguilla Sotheby’s International Realty. The addition marks the brand’s 31st office in the region. Anguilla Sotheby’s International Realty, based on the West End, will serve the entire island and is owned by Lesley Reed and Harrison Drouin-Reed, who have a combined 40 plus years of real estate experience. Reed and Drouin-Reed also lead St. Martin Sotheby’s International Realty, the real estate, vacation rental and property management firm on the island of St. Martin/St. Maarten. “Anguilla has a thriving luxury residential market with beachfront, hillside and cliffside properties, offering a unique lifestyle, rich culture, sub-tropical climate and world class beaches,” said Philip White, president and CEO, Sotheby’s International Realty. “The island attracts a wide variety of buyers, including expatriates, high-net-worth individuals and foreign investors due to the region’s tax laws. Lesley and Harrison have a strong understanding of the market and we are proud to have them represent the brand in Anguilla.” “The timing is perfect for Sotheby’s International Realty to be entering Anguilla,” said Reed. “The market is set to expand with the upcoming private jet terminal, the marina and the new ferry terminal, plus the
30 MANN REPORT | FEBRUARY 2024
airport is also accommodating commercial international flights. We are optimistic that the Anguillan real estate market is poised for success.” The Sotheby’s International Realty network currently has more than 26,500 affiliated independent sales associates located in more than 1,100 offices in 83 countries and territories worldwide. Anguilla Sotheby’s International Realty listings are marketed on the sothebysrealty.com global website.
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MANAGEMENT NEWS
Construction Defect Center Launches Affordable Nationwide Initiative for New Build Buyers
The bane of most buyers of new-construction homes is the punch list, the list of repairs to be completed by the builder prior to or the first year of ownership. To help homeowners in with building defects, the Construction Defect Center has launched an affordable service to repair construction punch list items.
Homeowners who purchased a new home in a single-family home subdivision or a custom home in the last two years that came with workmanship-or construction defect issues that the builder never repaired are eligible. The homeowner must possess e-mails or documentation that prove they did everything possible to alert the builder about the workmanship issues/construction defect issues within their one-year warranty period. “We have been assisting homeowners nationwide with construction defects for nearly two decades and, typically, the problems all started when the new homeowner’s homebuilder failed to fix the home buyer’s punch list of repair items, or the homebuilder ignored issues related to obvious workmanship or defective materials,” said the Construction Defect Center. “Some of these repairs might cost thousands of dollars or more — and in our opinion the homeowner should not be stuck with the bill. We are now offering a new homeowner in a subdivision or custom home anywhere in the U.S. an affordable service to try to get the homebuilder back in their home to repair construction punch list repair items that the homeowner identified to the home builder during the one-year home warranty period, along with other possible construction defect issues that have popped up since then.” If the center can help, it charges $225 up front to contact the homebuilder to try to get a date and time to get their representative
back in the homeowner’s home to see the issues and schedule a time for the repairs. The center will contact the home builder directly and copy the homeowner on all correspondence. The center will attempt to assist with defects such as: windows or doors that do not open or close properly, roof leaks and improperly installed shingles, plumbing pipe issues, cracked or warped interior crown molding, interior cabinet doors that do not open or close properly, warped or cracked exterior siding or stucco, first floors or basements that flood, warped or cracked interior wood flooring, appliances that do not properly work and drainage issues on the home’s exterior. “We will not spend more than four hours to get this accomplished,” the center cautioned. “If we are not successful with the home builder, we will try to find a law firm to assist the homeowner in their state. We are not a law firm, and our efforts are not an attempt to practice law.”
Cushman & Wakefield Unveils Asset Optimization Group for Underperforming and Distressed Assets Cushman & Wakefield has launched an Asset Optimization Group, renewing the company’s commitment to supporting lenders, investors and servicers of underperforming assets. “Commercial real estate is a highly cyclical business and, over the past few years has seen significant headwinds — from the pandemic to a significant shift in the cost of money and inflation,” said Revathi Greenwood, head of real estate optimization at Cushman & Wakefield. “The Asset Optimization Group provides integrated, tailored solutions to maximize recovery for office, industrial, retail and multifamily properties that are underperforming or distressed in this new environment.” Cushman & Wakefield will leverage services including receivership, property management, leasing, market research, asset and note sales, asset finance, valuation and advisory. The goal is to optimize asset recovery, mitigate deterioration and swiftly pursue the best resolution. “Our clients need strategic solutions to maximize the recovery of underperforming assets,” said Andrew McDonald, global president of Cushman & Wakefield. “Given the current market conditions, we formed the Asset Optimization Group, leveraging the expertise of our capital markets, asset management, asset services, valuation and advisory, agency leasing and project development services
32 MANN REPORT | FEBRUARY 2024
professionals in addition to our market research to support our clients with immediate solutions for their assets.” Cushman & Wakefield’s strategic insights and deep expertise help clients manage the complexity of today’s market – from asset-level cashflows, funding tenant improvements and regulatory and accounting issues, Greenwood said. “What’s different this time around from the GFC is that today in a lot of assets — particularly office — cash flows are compromised,” said Greenwood. “Creating an asset-level business plan and cash flow is critical to stabilize the asset and ultimately provide liquidity. Our clients will be able to utilize the breadth of our platform, wealth of information and deep market insights to help them consider their options — both on individual asset-level business plans and across portfolios of assets.”
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MANAGEMENT NEWS
Central Construction Management Replaces 1,000 Pieces of Terra Cotta at 26 Court St. Central Construction Management LLC is proceeding on the next stage of a far-reaching, multimillion-dollar restoration project with the installation of 1,000 pieces of bespoke decorative terracotta along the entire façade of 26 Court St., a 298,000-square-foot, 29-story office tower built in Brooklyn Heights, New York in 1927. The façade work follows the completion of the landmark building’s approximately 10,000-square-foot mansard roof requiring the installation of 10,000 pieces of copper, die-cast to match the original design.
Photo courtesy of Central Construction Management
The complex project, anticipated for completion in late 2024, exceeds Landmark Preservation Commission (LPC) façade rules and standards, which require only the first seven floors be replaced with actual terra cotta. Instead, the Central Construction team will install the time-honored, natural materials on all 29 floors. Regarding the roof restoration, LPC required the installation of copper tiles mirroring the original ones used nearly a century ago on the entire roof. “Ownership and management have gone above and beyond to ensure 26 Court benefits from a premium restoration that utilizes the finest materials available, all of which are American made,” said Michael DiFonzo, president of Central Construction Management. “Using organic terra cotta above the seventh floor, as opposed to fiberglass, adds at least 30% to project costs. It also reflects a committed ownership, and we are honored to be the firm chosen to implement this multi-faceted project.” Representing the building’s ownership was Joseph Schachter of JPS Management Corp. Kamen Tall Architects was responsible for the
design plans. Central Construction Management prepared the molds for the terra cotta installation, which were sourced and fabricated by Gladding, McBean, a 150-year-old company based in Sacramento, California. The copper roofing tiles were cast locally by CW Metals in Greenpoint, Brooklyn.
Construction Costs Still Rising, Says Rider Levett Bucknall Report While the construction industry remains “remarkably resilient” despite numerous challenges, construction costs are still on the rise, with a national average increase of 1.32% in the U.S. over the prior quarter and 5.28% year-over-year, according to the Fourth Quarter 2023 North America Quarterly Cost Report from international property and construction consultancy firm Rider Levett Bucknall (RLB). The report provides a perspective on the North American construction industry in 14 key markets. With data from mid-Q4 2023, the report showed that Boston (up 1.61%), Chicago (up 2.15%), Honolulu (up 1.33%), Portland, Oregon (up 1.57%), Seattle (up 1.59%) and Washington D.C. (up 1.66%) experienced increases over the national average during the quarter. Denver (up 0.57%) Las Vegas (up 1.22%), Los Angeles (up 1.02%), New York (up 1.24%), Phoenix (up 1.04%) and San Francisco (up 0.92%) experienced gains below the national average. “While there are a lot of positive indicators for the industry right now, including consumer confidence, moderating inflation and low unemployment, there are still enough other indicators showing us that the economic uncertainty hasn’t become any clearer,” said Paul Brussow, president of RLB North America. “The newest numbers on the ABI [Architectural Billings Index], the chronic workforce challenges and potential soft recession still feed the uncertainty and a potential slowdown for 2024.” The report also noted that the construction unemployment rate is up slightly to 3.8% from 3.4% in the same time period last year.
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“Labor continues to be shrouded in a dark cloud, as the most recent job opening numbers show a record 450,000 openings in the construction industry for the last reported month,” Brussow noted. “However, akin to finance costs and interest rates, labor shortages are not prohibiting construction projects from moving forward.” Even more telling, the ABI was 44.3, the third month in a row of significant decreases. Billings were soft nationwide, with firms in both the western United States and Northeast seeing the softest conditions.
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TECHTALK
Colleen AI Launches Post-Resident Recovery Service Colleen, an AI-powered platform solution that optimizes payment collections for multifamily property owners and management companies, announced the launch of its post-resident recovery service. As the latest addition to Colleen’s suite of AI platform solutions, which includes rent collection and lease renewals, this new service transforms the manual, time-consuming process of recovering unpaid balances from former residents into a simple, streamlined post-resident recovery experience, the company said. Through seamless integration with all property management software systems, Colleen instantly and automatically takes over residents’ move-out statements while also analyzing financial behavior to understand their circumstances and personalize outreach. By leveraging proprietary generative AI, Colleen immediately and proactively engages, follows up and negotiates terms with former residents at portfolio-wide scale, which has already been shown to increase collections by 20%. “Payment collections is more than a simple algorithm; it necessitates ‘human-like’ interactions that proactively prompt former residents to pay outstanding balances and avoid a collections process that is costly and frustrating for all parties,” said Itamar Roth, CEO of Colleen. “Speed is especially key in recovery as the chances of collecting drop 16% every 30 days an account remains delinquent, with larger balances dropping even more from 40% to a mere 5% recovery rate.” Having already proven to reduce unpaid rent by up to 40% with its AI Rent Collection solution, Colleen extends this business-critical capability to post-resident recovery. By offloading the time spent on contacting each former resident and arranging payment, Colleen delivers a seamless, flexible collections process that benefits property owners, managers, onsite teams and residents alike, it said. Colleen’s algorithm, trained on millions of resident interactions,
customizes outreach frequency, the timing and content of each message, while an advanced interface gives property managers visibility into all recovery efforts. The new service also removes roadblocks by helping to negotiate payment plans that fit each resident’s budget while offering flexible ways to pay directly to the property management or owner account, including ACH, Google Pay, Apple Pay, cash app, credit, debit and more. “Colleen’s post-resident recovery service has saved GNR Group invaluable time and resources otherwise spent chasing down former residents with unpaid balances,” said Colleen customer Gil Brenner, partner and CEO at GNR Property Management. “It has allowed our property management to shift more focus towards enhancing the current resident experience. Our former residents avoid negative credit reports, making a positive impact on their financial well-being.” Post-resident recovery launches on the heels of Lease AI, which Colleen debuted in late 2023 to automate and optimize the lease renewal process at scale while ensuring residents have a simple, quick path to renewing their agreement. In addition to boosting revenue, Colleen’s first-to-market, flagship AI Rent Collection product has saved a 2.5 million unit customer pipeline hundreds of hours per month on payment collections.
Yardi Launches Floorplan Manager to Optimize Space Management Real estate software solutions provider Yardi has released Yardi Floorplan Manager, an advanced solution that enables clients to create floor and stacking plans with real-time lease metrics and instant area calculations. Yardi Floorplan Manager is part of the CommercialEdge suite of revenue solutions.
Photo via PRNewswire
Yardi Floorplan Manager was developed to meet client needs including seamless integration with Yardi Voyager for real-time lease information along with tools that promote quicker turnaround. Features include the ability to color code spaces with lease metrics, add accurate area measurements and auto-calculate rentable and usable areas. Further, clients can annotate and customize unit labels, draw unit boundaries and use out-of-the-box KPIs for performance insights. “Working between systems to view floor plans, access lease information and view AutoCAD drawings is a time-consuming process. We created Yardi Floorplan Manager so our clients can centralize their floor plans for a single source of truth including area calculations,” said Kevin Yardi, vice president at Yardi. “Clients can leverage their existing AutoCAD drawings combined with occupancy data to make smart decisions. They can also share floor plans with tenants and prospects so they can easily visualize and right-size their space.”
36 MANN REPORT | FEBRUARY 2024
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TECHTALK
RealInsight Launches Loan Servicing and Asset Advisory Modules RealInsight, a Software-as-a-Service provider for commercial real estate (CRE) lenders, investors and servicers, announced the launch of both its RealInsight Servicing Module and Asset Advisory services via its new subsidiary, RealInsight Advisors LLC. The RealInsight Servicing Module provides for automated collections and disbursements, a portal for seamless collaboration between lenders and borrowers and granular detail on the accruals process for better loan management and tracking. The module is modernizing the relationship between lenders and borrowers providing unprecedented automation and transparency in the loan servicing process. The Asset Advisory offering will allow RealInsight clients to make smarter decisions faster through a holistic approach that aligns with the unique characteristics of the loan lifecycle, ensuring that investors and lenders are well-informed and well-supported throughout the life of the loan. By leveraging the experience and guidance of experienced asset management professionals and thorough analysis of each property’s potential, market conditions and risks, stakeholders can better make informed lending and investment decisions. RealInsight Advisors will be offering a wide variety of services to support servicing, monitoring, borrower requests/consents, problem resolution and detailed reporting. Advisors will utilize the loan servicing module to guide clients through the highly detailed loan management and tracking technology, ensuring unlimited visibility into the loan data provided on the platform. “We have created a platform that is technology forward and made for the modern age, and we are excited to be launching our asset
advisory service and loan servicing module. Our cutting-edge technology is designed to let RealInsight customers make the most of their commercial real estate investments, increasing the potential for success and profitability in a dynamic market environment,” said Dave Iannarone, CEO of RealInsight and RealInsight Advisors. “By integrating RealInsight’s state-of-the-art technology and RealInsight Advisors’ asset management expertise, we are taking another tremendous step toward providing the best possible service at any part of the loan lifecycle.” Available to all RealInsight customers, the business-process-asa-service will amplify existing asset management with customized recommendations, analysis and unprecedented automation. The service was first offered to RealInsight customers in October.
Clever Real Estate Acquires Gravy Technologies Education and tech company Clever Real Estate has acquired Gravy Technologies, a startup that has built the first loyalty rewards platform for first-time home buyers. As part of the acquisition, Gravy’s team, led by co-founders Jeff Dinter, Jimmy Lien and Will Dunn, will join the Clever team.
Photo via PRNewswire
Gravy was launched in 2021 to gamify the home-buying journey with a rewards program and financial fitness tools that help aspiring homeowners get mortgage-ready faster. To date, the Gravy app has helped over 30,000 people prepare for homeownership and earn $20 million in rewards. “Clever gives us a platform from which to expand the scope of Gravy’s mission,” said Jeff Dinter, Gravy co-founder and CEO, who is joining as Clever’s vice president of product. “In the future, our tech will serve not only renters but also homeowners, sellers and repeat buyers. With Clever, we’re tapping into an engaged audience of over 10 million people each year coming to Clever for online advice, data and education — who we can now bring into personalized interactive experiences inside the Gravy platform.” In addition to its consumer app, Gravy also provides a “loyalty-as-aservice” (LaaS) solution for real estate agents and mortgage lenders to offer a white-labeled loyalty app to its customers. The 2022 Loyalty Barometer Report by Merkle showed that 79% of consumers are more
38 MANN REPORT | FEBRUARY 2024
likely to do business with a company because of its loyalty program. With Gravy’s technology, any real estate professional can launch their own loyalty program, rewarding their clients for taking steps to get educated and financially prepared to buy a home. Since 2017, Clever has saved customers more than $160 million on realtor fees, with an average 5.0-star rating based on 2,600-plus verified customer reviews on Trustpilot. It recently launched Clever Pro, an all-in-one solution that empowers mortgage lenders to drive higher profits and provide more value to home buyers.
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Fried Frank Where major real estate transactions happen “An extremely talented real estate group with an impressively deep bench: the team is ideal for handling the most complex matters.” — Chambers USA
HUDSON YARDS Counsel to Related Companies and Oxford Properties Group in connection with the development of and all leasing activities at the 26-acre Hudson Yards on the West Side, the largest private development in Manhattan since Rockefeller Center. CHELSEA MARKET Counsel to Google in connection with its US$2.4 billion acquisition of Chelsea Market in New York City. BLACKROCK HEADQUARTERS Counsel to BlackRock in its 850,000square-foot lease for its planned headquarters relocation to 50 Hudson Yards.
MANHATTAN WEST Counsel to Brookfield Property Partners on all aspects of the development of Manhattan West in the Hudson Yards District, including its recent lease to the National Hockey League. PENN STATION Counsel to Vornado Realty Trust and Related Companies on the redevelopment of Penn Station, including the redevelopment of the James A. Farley building and construction of Moynihan Train Hall. CENTRAL PARK TOWER Counsel to J.P. Morgan, as lead lender, in its US$900 million construction loan syndication to Extell Development for the development of Central Park Tower.
ONE VANDERBILT Counsel to SL Green Realty Corp., including all zoning approvals, in connection with the development and leasing of One Vanderbilt Avenue, an iconic 1,401-foot tall, 1.7 million square foot office tower being constructed on the full block to the west of Grand Central Terminal. 20 TIMES SQUARE Counsel to Maefield Development in its approximately US$1.5 billion acquisition of the EDITION hotel, retail, and signage project known as 20 Times Square. JP MORGAN CHASE HEADQUARTERS Counsel to JP Morgan Chase in connection with various aspects of its planned 2.5-million-square-foot headquarters redevelopment at its 270 Park Avenue location.
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FEBRUARY 2024 | MANN REPORT 39
BREAKING NEWS
CoreLogic Unveils Clareity Assure for Advanced MLS Security CoreLogic announced a new offering to its Clareity security solutions for Multiple Listing Services by launching Clareity Assure, now available to all MLSs. The new, advanced security platform features adaptive authentication and leverages multifactor authentication to offer MLSs a highly fortified defense to protect its data and infrastructure against escalating cyber threats. Clareity Assure uses adaptive authentication with built-in artificial intelligence and machine learning to identify suspicious activity and selectively deploys multi-factor authentication when a login risk level exceeds an acceptable risk threshold. This offers MLSs one of the newest and most advanced ways to deter unauthorized users, bots and deceptive login attempts in real time, the company said. By preserving the integrity of MLS systems and data, Clareity Assure also protects real estate professionals and their clients. “Security is one of the top issues on the minds of every MLS leader today,” said Shaleen Khatod, executive, enterprise strategy and initiatives for CoreLogic. “CoreLogic is re-writing the MLS defense book for safeguarding MLS systems and data against threats like ransomware and cyberattacks. This includes Clareity Assure adaptive authentication meticulously analyzing user behavior patterns. It can identify and stop bad actors while ensuring authorized users get the safe, secure and frictionless access they need.”
Because CoreLogic’s Clareity Assure security solution is already integrated into more than 1,000 of the most common software tools used by real estate agents, the onboarding process for MLSs to add Clareity Assure with its Single Sign On (SSO) Dashboard can be done quickly and hassle-free. The security platform is available to all MLSs, regardless of if they use Clareity’s SSO Dashboard. “Clareity Assure provides MLS leaders and their subscribers peace of mind that their systems are resilient against existing and evolving threats,” said Khatod, adding, “Clareity Assure is an essential part of a comprehensive security strategy, providing the highest level of security to safeguard the data and applications that drive their business.” The number of ransomware victims globally increased 143% during the first quarter of 2023, according to a report from insurer Allianz Commercial. The study estimates the annual cost of ransomware to victims will soar to $265 billion annually by 2031.
HqO Acquires Symbiosy Smart Office Solution Real estate experience platform HqO has acquired Symbiosy, a workspace technology created by international workspace provider HB Reavis, which offers a portfolio of smart building solutions consisting of systems integrations, IoT and software interfaces. This acquisition further propels HqO’s growing occupier business and expands its geographical footprint, especially in European business hubs, including London, Berlin and Warsaw. The transaction comes on the heels of the company’s recent announcement of its Series D funding of over $50 million, along with the launch of the HqO Real Estate Experience (REX) Platform, an end-to-end experience solution built around the customer. HqO will continue to power HB Reavis’ portfolio of workspaces and support its growing global customer base through this strategic partnership. “Adding Symbiosy to the HqO family is the perfect fit with our vision to put people and their experiences of space at the center of the real estate industry. By pairing HqO’s newly launched REX Platform with Symbiosy’s deep expertise in creating intelligent and innovative workplaces, we are reimagining the future of real estate experience,” said Chase Garbarino, co-founder and CEO at HqO. “We are excited to bring Symbiosy’s intimate knowledge of the built environment and the people within it to our customers as we continue to scale and innovate our occupier product offerings.” Symbiosy’s portfolio of smart office technology solutions offers employee experience, data management and visualization tools that support enhanced workplace experiences for increased performance. “During HB Reavis’ 30 years of experience in real estate, our peoplecentric approach focused on well-being has proven to generate the most value for real estate businesses and people. Partnering with HqO will enable us to continue focusing on this path while providing the existing Symbiosy customers with enhanced services and solutions,” said Marcel Sedlak, CEO of HB Reavis, an international workspace
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provider with a consolidated Gross Asset Value of €4 billion. Symbiosy’s delivery of high-quality, digitally-led experiences across all assets is directly aligned with HqO’s mission to connect real estate to the people through a cross-property suite of powerful applications and services that foster dynamic end-user experiences. “During the five years spent creating Symbiosy within the HB Reavis universe, dedicated to refining the symbiotic connection between buildings, offices, and their users to deliver the best occupier experience, Symbiosy has been on a transformative journey,” said Tibor Nyitray, head of Symbiosy. “Now we are poised to extend this distinctive partnership with HB Reavis and HqO even further. Together, we aim to support our existing clients and introduce our combined product offerings to a broader audience, empowering more customers to harness the advantages of smart building technology, hybrid work support, energy optimization and tenant engagement to enhance the overall workplace experience and well-being.” Symbiosy is HqO’s third acquisition in two years. In June 2022, HqO acquired Leesman, the world’s leader in measuring employee workplace experience, and in November 2021 acquired Office App, a leading European tenant and employee engagement platform, which expanded HqO’s services into the corporate workspace.
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BREAKING NEWS
Church of Jesus Christ of Latter-day Saints Signs at West End Collegiate Church In an example of inter-faith cooperation, the Church of Jesus Christ of Latter-day Saints has signed a three-year lease for 40,000 square feet of shared and dedicated space at West End Collegiate Church’s facility located at 245 West 77th St. The occupancy of this historic Collegiate Church property by multiple faith communities heralds a new chapter in the spiritual life of the congregations, said Open Impact Real Estate, a woman-owned commercial real estate services company specializing in nonprofit and impact real estate. The two religious groups will occupy the building in tandem, with each having its own dedicated spaces in addition to shared programming spaces. “West End Collegiate was looking to activate the recently vacated space to support its programmatic and financial goals. The rare combination of a dedicated entrance and access to multiple public assembly spaces appealed to many religious and cultural organizations,” said Stephen Powers, co-founder of Open. “We are thrilled to have helped implement a shared space model that maximizes the use of large multi-purpose spaces which frequently are underutilized on many religious campuses.” The shared spaces include the building’s sanctuary, gym, multipurpose room, kitchen and chapel. West End Collegiate Church is also in talks with a third religious group to join the multifaith campus. “West End Collegiate has an opportunity to reimagine and reinvigorate
Photo courtesy of Open Impact
itself following the challenges of COVID-19,” said Margaret Tobin, West End Church member and chair of the strategic real estate committee. “We are adapting to our new circumstances, and thrilled with the outcome of our committee’s work which strengthens the financial position of the church and sets the table for its continued successful operations and growth.” West End is one of four congregations of the Collegiate Church of the City of New York, which is the oldest continually worshipping church in America, tracing its origins to Dutch settlers in the early 1600s. West End’s brick and terra cotta landmarked facility, designed by famed architectural firm McKim Mead & White and completed in 1892, was built in a Dutch Colonial style that evokes the church’s — and city’s — Dutch past. The building also features three windows designed by Tiffany studios. Stephen Powers, Lindsay Ornstein, Amy Lawrence and Julia Fish of Open represented the landlord, West End Collegiate Church, in the transaction; Mark Zussman of CBRE represented the tenant.
Urbahn Architects Establishes Urbahn International in Jakarta, Indonesia Urbahn Architects, a full-service planning and design firm based in New York City, has launched Urbahn International, a new affiliate to focus on public, commercial, hospitality, multi-family, healthcare, educational and institutional work globally. Urbahn International will operate in both New York City and Jakarta, Indonesia. The Minister of Trade of the Republic of Indonesia, Zulkifli Hasan, announced the formation of Urbahn International at the Consulate General of the Republic of Indonesia in New York during a business forum focused on real estate development opportunities in Nusantara, Indonesia’s planned new capital city. “We welcome Urbahn International to the family of major global companies joining the government of Indonesia in developing the new capital city of Nusantara. The initial public investment of $35 billion, devoted to building Nusantara’s infrastructure, has resulted in numerous real estate organizations from the U.S., Europe, Asia and Australia committing to developing commercial office buildings, housing, hotels, retail, R&D and other projects within this 633,000-acre sustainable urban project,” said Hasan. Urbahn International’s office in the region will be located at l. Bangka Raya No. 5H, RT.13/RW.11Bangka, Kec. Mampang Prapatan, South Jakarta City. “Following its design work in the U.S., Africa and India, Urbahn International will take advantage of the growing commercial real estate and public construction markets throughout the Association of Southeast Asian Nations (ASEAN) region,” said Urbahn Managing Principal Donald E. Henry, Jr., AIA, LEED, CPHC, at the announcement. “In particular, our Asian team will focus on projects in Nusantara, Indonesia’s new capital city.”
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Photo by Ola Wilk Photography/Wilk Marketing Communications
Pratt Institute-educated architect Rafi Haikal will serve as Urbahn’s director of ASEAN Region Business Development. The firm has already won two projects in Bali. In addition to its U.S. project portfolio, Urbahn has worked as a planner and architect delivering healthcare, education, hospitality and public service facilities around the globe. These include the Usha Martin University Master Plan in Ranchi, India; the Four Points by Sheraton Piarco International Airport Hotel in Trinidad; the Georgetown Marriott Resort Hotel and Gaming Center in Georgetown and the 140-room Courtyard by Marriott Hotel at the Cheddi Jagan International Airport in Timehri, both in Guyana and the Paradise Crossing Lifestyle Community and Recreation Center in Jamaica. In Africa, Urbahn led planning and design work for Somalia’s Lower and Middle Juba Regions’ Healthcare Delivery Planning Studies, Uganda Healthcare Delivery Planning Study, Nigeria Post Office Management Systems Study and Nigeria Primary Healthcare Delivery Study. The firm also served on the architectural team that developed Indonesia’s exhibit at the 1964-65 World’s Fair in Queens, New York.
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RSA is the largest real estate trade association in New York. We’re a non-profit that has one priority: Housing New York Since 1983, the Rent Stabilization Association has worked for property owners in good times and bad. Now, during a public health crisis that is straining the economics of our industry, we are working hard to keep tenants in their homes and ensure that owners can continue providing safe and adequate housing. RSA represents over 25,000 members with more than one million apartments. We provide cost effective and practical solutions to help owners run their buildings. In Albany and at City Hall, we are a forceful and consistent voice for the common sense needs of property owners. Our membership is deeply diverse and in every neighborhood. Though government and policy is unbalanced now, we’ve fought back through tough times before. And we’re doing it now. We advocate for programs and funding. We provide services to help our members comply with all laws and regulations.
We fight against reckless policies that unfairly target the industry. Our counselors help members with any problems or government agency issues that come up.
Our monthly RSA Reporter is an industry must-read, always providing information necessary to keep owners up to date on compliance issues and other policies. We have weekly email blasts, policy action alerts, and updates on political and legal issues. We are constantly fighting for policy that provides a fair balance to the needs of both building owners and their tenants.
mannpublications.com FEBRUARY 2024 | MANN REPORT 43 123 William Street, New York, NY 10038 · 212-214-9200 · WWW.RSANYC.ORG
COVER STORY
ON THE WATERFRONT: Dynamic Star Brings Wellness to the Boroughs By Debra Hazel
Fordham Landing (Photo by Perkins Eastman)
Think waterfront living, working and recreation are attainable only for New York City’s wealthy? Think again, as Dynamic Star is building mixeduse communities on the city’s rivers. With projects in the Bronx, Long Island City and Newark, New Jersey, Dynamic Star’s partners are determined to create affordable, healthy communities that embrace the metropolitan area’s many waterways. “New York is probably the most valuable island in the world, yet we have so few marinas, or docks or boats. We do have great esplanades, but we rarely let people actually get in the water,” said Brad Zackson, co-founder of Dynamic Star. “We think we have an opportunity here.”
FORDHAM LANDING SOU 320 W Fordham Road, Bronx, NY 10468
Dynamic Star was formed about in 2017 by Zackson, head of Dynamic Group, and Gary Segal, who had been the owner of and had recently departed construction giant Five Star. “I’d wanted a partner who had the same vision to do large-scale development,” Zackson said. Within a year, the two found the Bronx site,
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COVER STORY
what’s now known as Fordham Landing South, an almost four-acre site located just south of the University Heights Bridge, and saw the potential for a massive development.
UTH
“That is where Phase 1 is today,” he said. “Then, when we met the then-borough president, Ruben Diaz Jr., who now helps us, he asked if we had looked at sites on the other side of the bridge. We started to look at the sites there and got lucky. We bought all three, totaling 14 acres. Somehow, we ended up with all of this amazing waterfront property. The more we learned, the more we realized we were buying something special.”
View Looking East Harlem River) “And the neighborhood of University Heights is so charming, with a lot of homeownership,” he(From said. The timing worked well, with Inwood in the midst of rezoning and the redevelopment of nearby Roberto Clemente Park.
The two began assembling a team, bringing Penny Lee, a veteran urban planner on board in 2018.
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COVER STORY “We want to do something special,” Zackson said. “We’ve all had individual careers that helped us come together for something visionary.” Initial plans filed in 2021 called for a 17-story residential tower with some affordable units, as well as community space. Not surprisingly, COVID-19 delayed the project — but made the need for it even more apparent. Oddly, the pandemic prevented the team from building something that wasn’t needed yet. “COVID-19 knocked us on our heels — there are a lot of people still suffering, especially small businesses,” Zackson said. “We had our dark moments. We were thinking of a much larger project — over five million feet and we were going to rezone everything. Instead, we said, ‘Let’s do this and get it up and running so we wouldn’t lose the 421a we had. “COVID-19 was an amazing education for all real estate developers. Office buildings are not healthy. We were not ventilating appropriately. People were getting sick. And the newer generations are really into being healthy.” The first phase of One Fordham Landing, on the other hand, consists of a 350,000-squarefoot community facility building on the Harlem River just south of West Fordham Road. Targeted at medical and educational institutions seeking healthy, modern space adjacent to a waterfront promenade, the property has 360-degree views overlooking Midtown Manhattan, with asking rents on par with the national average. “The area has been rezoned and the neighborhood has been waiting for things to happen,” Zackson said. “So, we brought in one of the most brilliant architects, Stan Eckstut of Perkins Eastman. He was so excited that we had so much infrastructure on the waterfront.” Dynamic Star and its building and systems design team of Perkins Eastman, MG Engineering, MPFP Landscape Architects, Lemay + Escobar Interiors, LIVunLtd, and CBRE’s Energy and Sustainability Services team are designing an amenity-rich community facility building consistent with the Well Building Standard, developed by the International Well Building Institute. In fact, all future Dynamic Star buildings will be constructed to the Well Standard. “COVID-19 put us back over two years,” Zackson acknowledged. The building will boast 28,000-square-foot floorplates with 18-foot ceiling heights in the building base and 10,000-square-foot floorplates in the tower, well-suited for medical Opus Point (Photo by Lemay_id)
Gary Segal and Brad Zackson, Co-Founders, Dynamic Star (Photo courtesy of Dynamic Star)
and educational tenants. Tenants will also enjoy a fresh air-based ventilation system, enhanced filtration, UV air treatment, moisture and humidity management and control and touchless building systems, including doors and elevators. Unlike older buildings, where air is flushed twice a day, Well buildings are constantly turning over the air, Zackson observed. The goal is to attract young professionals back to the office by providing wellness and amenities they enjoy. “Millennials like trees on a wall rather than a painting,” Zackson said. Other amenities will include a 20,000-square-foot on-site landscaped outdoor roof, including community gardening space and use of a pickleball court, lap pool, basketball court and fitness center located in the adjacent apartment building. “These buildings are vertical communities. We’ll have the health club, a pool and cooking classes, even ping pong tournaments,” Zackson described. “That’s where the office is now.”
a healthy environment, combined with a rich mix of tenant amenities and a spectacular waterfront location, is essential for productivity and overall well-being.” The company also is working on Opus Point, a new office building being developed at 23-10 Queens Plaza South in Long Island City. The project will launch a 3,420-square-foot YMCA program space for local youth, a 2,410-square-foot space for local artists and cultural groups, a 15,000-square-foot LIC Food Innovation Hub and location for the Queens Tech Incubator Program and a 520-square-foot exhibit space devoted to the history of the Eagle Electric Company, the former owner and occupant of the building. This mix of food, tech, arts and cultural, youth programming and exhibit spaces will establish a local, entrepreneurial hub to activate and anchor a new 321,000-square-foot office building to be developed at the foot of the Ed Koch Queensboro Bridge in Long Island City, Queens. Zackson said the neighborhood has more than 30,000 apartments, making the need for convenient workspaces even more critical.
But the real amenity is the river itself. The project will offer an 810linear foot landscaped public waterfront esplanade, programmed with ample seating, shade cover, a Harlem River overlook, a paved walking path and exercise stations. The company has also worked to connect with a greenway to Roberto Clemente State Park, further helping to activate the greenway. In Phase Two, look for dinner boats and more programming for the river.
“I’m an advocate for the middle class, which has been priced out of Manhattan,” he added. “We have amazing cultures in Brooklyn, Queens and Staten Island. And the Bronx has such amazing cultures and food. The marina is not about the rich just as the office is not about the boss anymore. It’s about getting employees to want to come to work because they are part of the community. We need more mixeduse all over the city.”
Embracing public transit is also key. One Fordham Landing is located adjacent to Metro North’s University Heights station and is within a 10- to 15-minute walk to the Number 1 207th Street station and the Number 4 Jerome Avenue station.
The company is also working on two mixed-use projects in Downtown Newark. So, with seven million square feet in various stages, Dynamic Star is content for now. After all, it has one very specific criterion for its properties, Zackson said.
“We are excited to offer The Bronx a new standard in community facility buildings,” said Dynamic Star’s CEO Gary Segal in last year’s announcement. “One Fordham Landing is designed to promote the health and wellness of our tenants and their clients. We believe that
“We only look for special projects,” Zackson said. “It’s satisfying to do things the world needs, servicing younger people. I want to see more people enjoying the great New York, and we want to build things to keep them here.”
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FEATURES | RESIDENTIAL
Tri Pointe Homes
Launches Customer Experience Application for Homebuyers As buyers’ interest in purchasing new-build homes continues to increase, they can use all the help they can get with the process. To help, Tri Pointe Homes has launched the Tri Point Homes Homebuyer app, a proprietary customer experience and communication platform, nationally. Created to keep homebuyers engaged and provide ongoing communication throughout the home buying process, the application was designed to deliver automated updates on the build process with accompanying photography of the homes. It also organizes key documents and appointments, and sets expectations related to a customer’s newly purchased home as the property progresses through each construction stage. Additionally, the application allows direct access between homebuyers and builders with the goal of increasing collaboration and streamlining communication. The homebuyer app is live across all 15 of Tri Pointe Homes’ divisions nationwide. “We like to say we’re in the life-changing business and a big part of that people-first philosophy is setting trends and paving new paths forward,” said Linda Mamet, chief marketing officer at Tri Pointe Homes. “As part of our ongoing efforts to deliver an outstanding customer experience, we saw an untapped opportunity to further strengthen the relationship with our homebuyers through technological innovation and the development of the homebuyer app. It’s a convenient and consistent way to stay connected and keep our homebuyers excited and engaged throughout the construction process.”
Photos via Globe Newswire
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Once a customer signs a purchase agreement and places their earnest money deposit on a homesite, a Tri Pointe Homes New Home Advisor provides the homebuyer
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FEATURES | RESIDENTIAL access to the homeowner app, which initiates a process for ongoing and regular communication with homebuyers from contract to close. The personalized content that’s available through the homeowner app can be accessed and leveraged when convenient for the homebuyer — further enhancing the overall customer experience. Through a series of integrated technology elements and communication mechanisms, the homeowner app provides automated progress updates through every construction stage — with photography uploaded regularly — and gives customers a tool to communicate directly with their onsite community team. Photography can be shared with family and friends. Buyers can also track critical appointments such as new home orientations to review construction progress or Design Studio appointments to personalize home finishes such as countertops, tile, flooring and other curated selections. The app also serves as a dedicated library for important documents such as a Homebuyer Journey Guide, visual timelines of the build process brochures and links to other resources such as home financing with the builder’s affiliated mortgage company, Tri Pointe Connect. Tri Pointe Homes’ new homebuyer app was piloted across three divisions earlier this year before being implemented company-wide. As of January 1, 2024, a total of 4,314 Tri Pointe-constructed homes are live on the application with app users averaging nine sessions and engaging for over 11 minutes. Moving forward, Tri Pointe Homes will continue to seek support, feedback and refinements from team members and homebuyers around the country as it focuses on exploring and adding new enhancements to the app. “Being a customer- and technology-driven company is a high priority for Tri Pointe Homes, and we closely follow trends and invest in solutions that help us stay ahead of customer needs,” continued Mamet.
“Today’s homebuyers want convenient, personalized experiences both in-person and online that are powered by technology and relationships. As a premium lifestyle brand, we strive to positively impact the homebuying process from ‘foundation to finished,’ improving communication both in form and frequency.”-Linda Mamet One of the most noted benefits of the new app by Tri Pointe Homes for homebuyers is the “countdown to delivery.” Users have shared that the ability to follow the progress of their home build with photos and images increases their excitement and engagement during the build process. Tri Pointe Homes’ response to questions and scheduling, too, were noted as valuable. “The new app is a technological innovation that has enabled a more seamless operating model for our team and delivered an improved customer experience,” said Tri Pointe Homes Inland Empire New Home Advisor Joshua Chavez. “It has streamlined communication with homebuyers, especially given updated photos, which customers have shared, adds a uniquely personal touch and makes them feel more like a part of the overall build.”
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FEATURES | TECHNOLOGY
Proptech for the Home and More Debuts at
CES 2024
UEI Butler Smart Home Control Hubs (Photo via Business Wire)
Yes, CES 2024, sponsored by the Consumer Technology Association and held in Las Vegas in January, offered the usual innovations in television sets, smartphone accessories and even a flying car (thanks, Hyundai). But there were also a number of innovations that can make homes and offices easier to maintain and clean. The following are some of the residential real estate technologies introduced this year. Will all catch on with consumers? Time will tell. But they all offer a glimpse into a possible future.
bridging capability for control of non-matter devices via built-in iOS and Android Home apps; Matter Controller and multi-admin capability to work alongside other Matter Controllers for a seamless end-user experience, or to create a new Matter environment in a home; built-in support for nevo.ai virtual agent for an easy onboarding experience; personalization and troubleshooting when help is needed and option for far-field voice to add hands-free control to any smart television, streaming or cable/satellite set-top box or audio device.
Universal Electronics Inc. (UEI), a maker of universal control technology for smart home and entertainment devices, announced its family of UEI Butler Smart Home Control Hubs.
UEI’s complete family of Butler Smart Home hubs leverage Quickset Cloud’s device discovery and configuration abilities, and work with any Zigbee-enabled nodes or UEI-developed sensors with complete rule-based automation and scene creation features.
The products, powered by QuickSet Cloud, align with UEI’s product and technology strategy to enable discovery, control and onteraction across disparate connected devices in the home to create smarter living for a growing list of smart home B2B customers. This family of smart home hubs, complemented by UEI’s complete range of Zigbee Sensors and accessories, enables customers to deliver tailored and managed experiences for their products while allowing for greater interoperability with other brands and ecosystems consumers have in their homes. The hubs bring interoperability covering a wide range of wireless protocols including legacy IR for entertainment and airCon devices, Zigbee, Bluetooth and IP devices as well as the fast-growing Matter-compatible device category. The hubs deliver interoperability including pre-integrated support for a complete range of Zigbee sensors and thermostats to create tailored kits for energy management, climate control, smart lighting and more; built-in Zigbee radios, IR Blasters and support for Wi-Fi or Ethernet configuration for flexible placement in any room in the home; matter
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The UEI Butler Family of Smart Hubs Lineup includes four products: the Nevo Butler Entertainment Companion, enabling far-field voice control for existing entertainment devices; the Butler Zigbee Hub for a managed network that can be kitted with Zigbee devices including sensors and thermostats and offers Matter bridging capability to control Zigbee devices via native iOS and Android Home apps; the Butler Matter Bridge that brings legacy devices into the Matter ecosystem and Butler Smart Hub, a White Label Matter Controller with MultiAdmin capability and built-in Zigbee hub to deliver a managed experience while blending in other user-purchased devices in the home. “Our solutions are designed to help our customers bring products to market that work efficiently and seamlessly, ensuring end-users have the best smart home experience,” said Arsham Hatambeiki, senior vice president of products and technology. “Today’s announcement demonstrates UEI’s commitment to creating products for today’s consumer homes whether they are starting out on their first smart home system or if they have an existing smart home system that they want to maintain interoperability with tomorrow’s emerging standards.”
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Photo via PRNewswire
3i Debuts World’s First Water-free Intelligent Cleaning Station
3i, a premium smart appliance brand that specializes in advanced home appliances powered by artificial intelligence, introduced the 3i Intelligent Cleaning Station — the H1 series, exemplified by the H1 Pro. This water-free intelligent cleaning station promises to deliver a hands-free home cleaning experience, the company said. The 3i Intelligent Cleaning Station is the world’s first water-free intelligent cleaning station in the global robot vacuum cleaner market. The H1 Pro is equipped with 3i’s proprietary water recycling system, which purifies wastewater into distilled water and can extract water from the air, enabling continuous cleaning without the need to add water or dispose of wastewater. This also enables the device to be positioned anywhere in the house.
The H1 Pro performs six coordinated cleaning steps: collection, sweeping, vacuuming, water spraying, mopping and dirt scraping, ensuring a thorough and deep clean of the home. It features an 8000Pa high-performance, high-speed brushless fan that provides powerful suction, capable of absorbing dust, hair, cat food and cat litter. The H1 Pro also includes a Roller Mop Self-drying with Warm Air feature, which automatically dries the roller mop after cleaning to prevent odors and bacterial growth. In addition, with a 5L dust bag capacity, the frequency of garbage disposal is reduced to approximately once every 60 days. In addition, the H1 Pro is built with a green laser dirt detection feature that identifies various types of dirt, including liquids, stains, dust and particles. Using AI and deep learning algorithms, the H1 Pro can identify 52 types of dirt and common objects, enhancing its cleaning efficiency by devising specific cleaning strategies.
Dreame Goes Outdoors with Robotic Lawn Mower A1 Known for its indoor home cleaning products, appliance maker Dreame Technology is moving to the great outdoors by introducing Roboticmower A1. It incorporates several of the company’s proprietary technologies, including its patented 3D high-precision laser sensor technology, OmniSense 3D Ultra Sensing System and U Path Planning Program. The Dreame Roboticmower A1’s signal stays strong and stable even in complex outdoor environments. With centimeter-level positioning, it eliminates repeated mowing or missing areas and guarantees exceptional mowing results, the company said. Powered by the U Path Planning technology and the OmniSense 3D Ultra sensing System, A1 accurately maps and mows the lawn in customized and uniform user-controlled patterns, eliminating uncut or over-cut areas. With its advanced AI algorithm and OmniSense 360-degree sensing range, long-distance detection and millimeter-level accuracy, Dreame Roboticmower A1 identifies and avoids more than 11 common lawn obstacles. Featuring advanced rain-sensing technology, Dreame Roboticmower A1 automatically returns to its charging station whenever it detects precipitation – and then picks up where it left off when the rain stops.
MaxiCharger DC HiPower Redefines High Power EV Charging In what it called a significant milestone in its commitment to enhancing charging infrastructure and fostering an integrated energy network, Autel Energy, a provider of electric vehicle (EV) charging technology, launched MaxiCharger DC HiPower. “The MaxiCharger DC HiPower, with a maximum output power of 640 kW, sets a new industry standard and delivers up to 250 miles of range in just 10 minutes,” said Shane Long, Chief Technology Officer of Autel Energy U.S. “The MaxiCharger DC HiPower, designed for high-power charging requirements, is set to be a cornerstone in building a robust global charging infrastructure. Alongside, the MaxiCharger AC Elite 2 caters adeptly to both residential and commercial applications, offering versatility and convenience.” Following the initial deployment in Europe, Autel is extending its high-power charging network globally. The North American expansion began with facilities in Anaheim and North Carolina, with further developments across Europe, APAC, and other regions. Charging hubs will be strategically located near highways, major intersections, as well as suburban and urban areas, which are equipped with surveillance for added security. Each hub will feature at least one MaxiCharger DC HiPower, capable of delivering up to 640 kW, alongside other chargers. Intelligent charge-load management ensures optimal charging efficiency, minimizing wait times and enhancing the overall charging experience.
Aiper Debuts Cordless First Robotic Lawn Mower
Photo via PRNewswire
Aiper, known for its smart yard robots, debuted the Horizon U1, its first cordless robotic lawn mower. The Horizon U1 expand Aiper’ss product offerings from not just the swimming pool but to the yard, helping effortlessly maintain even the unruliest of lawns. The new robot will feature wireless mowing capabilities as well as first-of-its kind technologies that enable the lawn mower to cut all grass types fast and efficiently, the company said.
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FEBRUARY 2024 | MANN REPORT 53
FEATURES | MANAGEMENT
Decarbonizing Your Building With Modern Controls: Taking the First Steps By Brian Meyers System Controls Portfolio Leader, Trane Commercial Commercial and residential buildings consume around 40% of the nation’s energy and account for around 35% of carbon emissions, according to the U.S. Department of Energy. While energy providers are working to meet high demand, greener products are being produced, and local, state and federal regulators are implementing measures to address energy efficiency and decarbonization. These and other factors are putting pressure on commercial real estate owners to pursue sustainability. However, there’s another reason for landlords to decarbonize: the bottom line. According to the American Institute of Architects’ “ROI: Increasing Asset Values,” sustain-
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able buildings increase occupancy, rents and property values — and decarbonization is a big part of green initiatives. For building owners, adding modern controls and automation systems can help their equipment run more efficiently, as well as increase energy savings — reducing emissions and costs and providing impressive returns on investment.
Start with a Plan
The decarbonization journey is unique for every building. This journey may include retro-commissioning, modernized controls and/ or upgraded equipment, even the adoption of
newly emerging smart technologies, like artificial intelligence. Decarbonization begins with the organization’s goals and a plan to support them. Here are a few potential areas to address: • Reducing energy consumption. • Minimizing on-site greenhouse gas emissions. • Producing clean energy on-site. • Offsetting hard-to-abate emissions. Throughout this process, each owner will want to consider their organization’s operational needs and leverage available financing, funding and incentives to upgrade the building.
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By sequencing their investments properly, they can generate the highest impact at the lowest cost. Energy experts can help companies evaluate buildings and design solutions that match reduction targets and budgets. For example, Trane Energy Services helps companies develop energy plans, pursue financing and measure results. Trane recently helped create a decarbonization roadmap for a 94-year-old building in Manhattan. Initial assessments determined the potential options for the building, which were weighed against key performance indicators, to develop a cost-effective plan. The new equipment and controls are expected to eliminate 642 metric tons of carbon and save more than $60,000 annually. In addition, the building now complies with New York City’s Local Law 97, one of the most ambitious emission-reduction plans in the nation.
The Essential Role of Data
According to Energy Star, around 30% of the energy consumed by commercial buildings is wasted. To begin solving this problem, owners must collect detailed facility information to establish current energy usage and emission levels and compare those to similar buildings and regulatory requirements. Controls play an essential role in this process. Connected controls integrate and manage data from HVAC and other systems, creating a cohesive management system that informs building teams where every kilowatt is going. Commercial buildings often rely on multiple, independent systems to keep tenants safe, productive and comfortable: heating, ventilation, air conditioning, lighting and many others. Integrating these systems can offer incredible opportunities to collect and analyze energy data, identify inefficient equipment and deliver sustainable automation. One great example is HVAC and lighting, which constitute about two-thirds of energy use, according to reports. Controls can schedule and coordinate these systems to save energy and reduce costs. According to the Commercial Real Estate Development Association, approximately 75% of facilities in the U.S. were built before 2000. These facilities often contain older equipment, controls and systems, and are significantly less energy-efficient than their modern peers. Trane Tracer SC+ is a modern building automation system that can integrate with past, present and future equipment, regardless of who made it. With this integration flexibility, Tracer SC+ can help modernize a facility without ripping and replacing the entire existing system. This flexibility puts owners and facility managers back in control to iteratively improve their existing facility without starting from scratch. Modern, connected, smart building systems are central to increasing and maintaining efficiency. By controlling HVAC, lighting, electricity and other functions, software coordinates these systems to help them perform optimally. Occupancy sensors can turn off lights when nobody is in the room. System schedules can integrate optimal start/stop times to balance comfort and energy
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use. These systems can even identify anomalies and alert the maintenance staff well before they become comfort complaints. Connected systems support operators by providing actionable data and analytics, helping them identify problems even before tenants. Intuitive interfaces, combined with training and support, help operators keep these systems automated.
Stair-Stepping to Decarbonization
Ideally, a building could be upgraded all at once, achieving maximum efficiency immediately. That’s not always feasible, but teams can successfully embrace phased approaches. Adding or upgrading controls is a smart starting point because they collect data that inform other decisions. They can also introduce new efficiencies while extending the life of existing equipment. One strategy is to create a green revolving fund, using energy savings to pay for additional carbon reduction and efficiency improvements. In recent years, switching from incandescent bulbs to LEDs has generated significant savings, which have been funneled into building improvement funds to pay for future measures. Each refinement increases energy and financial savings, driving decarbonization and optimizing budgets. Grants and tax considerations can also help upgrade old structures. Federal, state and local government incentives and energy-focused nonprofit and utility programs can fund a wide array of improvements. Incentives are often state and locally dependent, and a good consultant can help identify them.
The Payoffs of Modern Controls
According to Forbes, commercial occupancy in New York City is about 50% of pre-COVID-19 levels. Sustainable systems can help differentiate properties and attract tenants. Also, a smart building is easier to manage. A unified approach that provides advanced data gathering, monitoring, and analysis means facility managers need only interact with one system. Given the ratios of tenants and square footage to building managers, this automation is essential. Controls also drive more proactive operations. Intelligent analytics identify problems before tenants even feel them. Consider a stuck outdoor air damper in a cold environment. Advanced controls scan the system three or four times an hour to flag these problems. As a result, building engineers can fix the damper before anyone feels discomfort, and energy waste is minimized. Decarbonization may seem challenging, but building owners have many tools to achieve it. Modernizing buildings to meet environmental goals can reduce utility and maintenance costs, automate troubleshooting, attract tenants and contribute to a long-term climate solution — that’s a lot of wins.
Brian Meyers is the system controls portfolio leader for Trane, where he has product responsibility for Tracer SC/SC+/Synchrony and Legacy Tracer Communications Bridges. Additionally, he drives and supports products and offerings that span across control product lines in areas that include cloud connectivity, cybersecurity and others.
FEBRUARY 2024 | MANN REPORT 55
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ALAN FELDMAN September 15, 1941 - January 20, 2024
I lost a dear friend a couple weeks ago— Alan Feldman, who I knew my entire life. There was not a better guy ever that I had met and when I did see him, there wasn’t a warmer feeling that I could get from anybody. My parents were very close with his parents Gus and Vita, and they went to the bar mitzvahs of my two brothers, Bobby, and Michael Mann and me. My father, Irving Mann, was a close friend to Gus, was a pioneer in the dress business, and was part of the group from the apparel industry that formed The Jack Martin Fund, in honor of Alan’s uncle. Jack Martin’s partnership began in 1950 with Mount Sinai and they’ve raised over 45 million dollars during its 74-year history. Alan ran all the operations out of his office. As time went on with the partnership, I too got involved with Mount Sinai with The Mann Charitable Foundation, of which I am very proud. So, indirectly, I owe that involvement to Alan, and will forever have him in my memory. To his wife Judith, sons and grandchildren—my deepest sympathies. In closing, I can’t say enough about the great person that Alan was. It was an honor to know the Feldman family, and to you Alan—you will be missed. With love and respect, Ann and Jeff Mann
The size of our company is our ultimate strength. Simplifying your life as a board member is our purpose. “Being under the FirstService umbrella is more than building management. We’ve refinanced our mortgage through their financial team, completed major cap ex projects with the construction management team, and are now working on Local Law 97 compliance and an EV charging installation. The board has never had access to this level of expertise and I feel like we’re just getting started.” - Stephen V., NYC Board Member
Let’s talk. www.fsresidential.com/new-york 212.634.5410 58 MANN REPORT | FEBRUARY 2024
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More than 35 years of real estate, condominium & cooperative experience WilkinGuttenplan uses expert industry knowledge in accounting, audit, and tax services to assist New York City real estate owners, developers, and investors of commercial and residential properties identify opportunities and guide them on implementing strategies to stay ahead of changing times.
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New York | New Jersey 212.247.9000 | 732.846.3000 FEBRUARY 2024 | MANN REPORT 59 wgcpas.com
FEATURES | COMMERCIAL
Empowering Investors to Thrive in Challenging Market Conditions By Derrick Barker CEO and Co-founder of Nectar
It’s a hard time out there for real estate.
a foregone conclusion! Here is a list of risks to consider:
The main impact of the Fed’s interest rate hikes is that capital is harder to come by. That has resulted in credit standards tightening and fewer transactions happening in the market. (According to CBRE, commercial real estate volumes were down 54% through Q3 2023). As has been reported thoroughly, this will be a problem for people who are not well-positioned.
Property Condition
Let me explain. In 2021-2022, many investors purchased properties at high prices, using two- and three-year bridge loans. They underwrote these deals with aggressive rent growth and price appreciation assumptions, which matched with cheap capital and allowed for record prices. Now they have to find a way to meet their obligations, which they took on by promising to achieve these aggressive assumptions. When their two- to three-year loans come due, they will have to refinance or sell their properties in an environment where capital is scarce and expensive (if available at all). Meeting their mortgage and investor obligations will be difficult for these aggressive operators. Some will make it. Many will underperform. And when their high-leverage debt obligations come due, they will have no choice but to recapitalize by paying down their existing loans or selling at prices in line with a more capital-starved market. When this happens at a large scale across the market, it is called deleveraging. After deleveraging has happened and leverage rates in the market are in line with current growth expectations, reflation and price appreciation can once again proceed. There are many buying opportunities in a deleveraging. However, the capital to allow for this deleveraging will have to come from somewhere, and it will not be traditional banks. It typically comes from prudent investors who are well-positioned to take advantage of this type of environment. There are many of these investors out there who have low leverage, cash-flowing properties with low interest rate debt locked in place. Many of them are buyers, but they are underwriting deals based on the new interest rate and pricing reality in the market. This is a reality that many sellers are unwilling to accept unless they are forced to.
Biggest Risks in the Current Market
If you are a buyer in the current market, the good news is that downturns are typically the best time to buy if you are able to hold onto your property until more normalized market conditions have returned. However, holding on until the market has stabilized is not
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Issues such as structural defects, environmental hazards or unexpected maintenance costs can pose significant risks. Many current sellers have begun a renovation but have run out of money prematurely as inflation has caused cost overruns and capital is less available to fund shortfalls. These sponsors may skip steps and cover up shoddy work. Thorough due diligence, including property inspections and assessments, and adequate cash reserves are crucial to identify and address potential concerns.
Supply and Demand Dynamics
We are coming off of a construction boom where record numbers of units were built in the aftermath of the pandemic and are delivering now and in the coming months. As developers deliver units, they will be motivated to fill up their buildings, even if it means cutting rents in order to do so. Oversupply of properties in a given market can significantly impact the ability to maintain higher rents, occupancy and, ultimately, property values. Understanding what other properties are coming online and targeting similar renters in your market is essential for making informed investment decisions.
Interest Rate Changes
Interest rates play a crucial role in real estate financing and rates are higher today than in many years. This increase in interest rates will likely lead to higher exit cap rates when you go to sell and mortgage costs at acquisition. This should reduce property values today as buyers need lower all-in costs in order to make a return with higher expected interest expenses and higher expected final exit cap rates if we are in a “higher for longer” environment. Investors should conservatively underwrite how interest rates will affect their investment.
Before Purchasing
Investors should consider the following before buying:
Capitalization
The biggest mitigant to all of these risks is having the right capital stack. Having moderate leverage and adequate liquidity reserves will allow an investor to weather market volatility or any capital requirements that come along. This is particularly true for fixed-rate debt, with plenty of time before maturity and adequate reserves to manage the inevitable surprises.
Location, Location, Location
The adage holds true: location is critical to real estate investment success. Consider the property’s proximity to amenities, transporta-
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FEATURES | COMMERCIAL tion, schools and employment hubs. Research the neighborhood’s growth potential and overall desirability. Well-located assets will typically always have buyers. Now is the time to look for premium locations at more reasonable prices.
Market Pricing and Financial Analysis
The best way to mitigate risk is to buy at a low basis relative to other properties in the market and to buy at a price where your income at current market rents can generate adequate cash flow even with current mortgage rates. That way, even if market prices drop in the meantime, you will be able to maintain operations until conditions become more favorable.
Understanding Risk Tolerance and Execution Capabilities
Define your risk tolerance and investment goals before shopping for properties. Do you seek to renovate a property to generate short-term gains, or would you like to purchase a stabilized property for long-term stability? That will guide your property selection and investment strategy. Be honest with yourself about your ability to execute on and tolerate the risk inherent to renovations or a value-add business plan.
Exit Strategy
Develop a clear exit strategy before making an investment. Whether it’s selling the property for capital gains, refinancing or holding for rental income, having a well-defined exit plan with conservative cap rate assumptions will help you make informed decisions throughout the investment life cycle.
Network and Expert Team
Build a team of real estate professionals, including real estate agents, property managers and construction experts. Seek advice from experienced investors who can provide valuable insights based on their own successes and challenges.
Conclusion
Despite the current market volatility, there is a significant amount of potential in today’s market environment. It is in times of market dislocation and lack of liquidity that the best deals are made. Investing at a time with fewer competing market participants allows for better pricing, which is the ultimate mitigator of risk, assuming you have the team and diligence in place to manage typical pitfalls. Nectar is an Atlanta-based platform that provides cash flow-based financing to real estate operators in the short-term rental, multifamily, hospitality and other sectors.
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FEBRUARY 2024 | MANN REPORT 61
FEATURES | COMMERCIAL
UNVEILING THE GRAND SHIFT:
NAVIGATING THE REAL ESTATE WEALTH TRANSFER By Debra Hazel It’s a quiet force, but a force nonetheless in real estate: the generational transfer of wealth as Baby Boomers and members of the Silent Generation die and pass their holdings on to younger generations. The sum could total as much as $70 trillion overall and $24 trillion in real estate assets through 2042, according to brokerage National Land Realty, affecting not just the built environment but agricultural assets. Given that the average age of a farmer was 57.5 in 2017, according to the U.S. Department of Agriculture (USDA), the impact is likely to continue. The challenge is quiet for a reason. Who wants to discuss the death of an aging parent? “It’s morbid to talk about — ‘When my parents die, I’m going to get this farm or this car wash or apartment building or whatever,’” acknowledged Ronnie Richardson, president of National Land Realty. “But the facts are that we are all going to die, and people will inherit. And because of inflation and the rise in values, this will be the largest wealth transfer since the beginning of time in the next 10 to 15 years.” If that transfer involves farmland, the challenges are greater than ever before. Ninety-six percent of farm households derived some income from off-farm sources in 2019, according to USDA Economic Research Service data. Many descendants may not want to con-
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tinue in the business. In addition, the transfers may not necessarily be connected to inheritance. Some landowners may simply want to sell to fund a more comfortable, diversified retirement through a trust, or just don’t want to leave a large tract of property or building for their heirs to handle. “It may make more sense to sell. There are ways to liquidate those assets and move into an investment and defer those capital gains taxes,” Richardson said. “Money is easy to divide on that point. I’ve seen families destroyed over this. It’s hard to divide a Dollar General store or a strip center.” For those poised to inherit wealth in the form of money or land, the time to strategize is now, not years later, when the transfer of ownership materializes. Upon inheriting a property, beneficiaries are presented with a pivotal decision: they can opt to sell immediately, leveraging the “Step-up Clause” to circumvent capital gains exposure, or they can choose to hold onto the property and face capital gains taxes on any appreciation when they decide to sell later. Richardson noted that this is a situation his own family will face in the coming years. “What happens to the house and the land and the money that transfers to me and my siblings?” he said. “We’re talking $70 trillion [nationally] in transfers. When that wealth is transferred, the beneficiary of that wealth will have a stepped-up basis. There won’t be a capital gains tax. Some people may have an estate tax. But everybody’s situation is different.”
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A professional real estate consultant’s advice is critical. National Land’s agents train on 1031 exchanges, which can be helpful, daily, Richardson said. “If an owner just sells the farm or apartment building and the basis is really low, and he expects just to distribute that cash to his children, he’ll be in for a rude awakening when tax time comes,” he said. It can also avoid eventual family crises. An example Richardson has seen entailed three siblings inheriting 160 acres, and one wanted to liquidate. But the other two couldn’t afford to buy him out. The results — lawsuits that drained all of the money anyway. “At the end of life all you have is your family,” Richardson said. “Please don’t get in these huge family disputes. Liquidate the asset, invest the money and let it grow.” The recent pandemic did upend the cycle, in that city dwellers fled to less densely populated areas. But what could have been a difficult spike in the market thus far has worked out well. “What is stunning to me is during the COVID-19 pandemic, we had people buying properties from all over the country,” he said. “At the time I thought they were buying at an inflated value, but in today’s world they made a pretty good investment.” In time, those professionals who purchased outlying property to escape the pandemic or have a vacation home may be
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likely to return to National Land Realty to liquidate it. “They’ll enjoy it for five to nine years, and then come back to us to sell it,” Richardson said. “That’s the value of a recreational piece of property.” Buyers today can vary, depending on the nature of the land. Some smaller farms may be acquired by another, local farmer. “A 5,000-acre sugar cane farm in Louisiana will likely need an institutional buyer because that will be truly valuable. For a large timber property in the southeast, it may be in an institutional timber buyer,” Richardson said. Some real estate investment trusts may invest, or, for a smaller tract, perhaps a recreational buyer looking for a rural weekend getaway. Richardson said that he expected this year to be fairly steady in terms of transactions. Rates are actually at historic norms, he recalls. “It’s not going to be disastrous,” he said. “It will be flat in our opinion, while 2025 will be really good. And who knows from there?” What is certain is that as long as there are people, there will be people buying and selling property. “We’re never going to run out of customers, sellers or buyers,” Richardson said. “When I’ve been in the ground 1,000 years, there will still be people buying and selling land.”
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GINA SABIO
Licensed as Virginia Sabio | Licensed Associate Real Estate Broker
“Luxury Begins Here”
- GS
C: 917-325-8147 | O: 212-590-2473 GSabio@christiesrealestategroup.com | christiesrealestategroup.com Christie’s International Real Estate Group 1 Rockefeller Plaza #2402 | New York, NY 10020
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FEBRUARY 2024 | MANN REPORT 65
COLUMNS
Condo-Co-op Helpline: NYC Conundrum New York City is facing a financial crisis in 2024 of a scope not seen since the 1970s. The underlying cause of this crisis is 100,000-plus undocumented migrants now located in New York City and the additional migrants anticipated to be coming to the city demanding shelter, food and other necessities. Mayor Eric Adams has asserted that, at the current pace of undocumented migrant arrivals, the cost of the migrant influx is $4 billion per year for three years ending in mid-2025.
Carol A. Sigmond Partner Greenspoon Marder LLP
590 Madison Avenue, Suite 1800 New York, NY 10022 carol.sigmond@gmlaw.com (212)524-5074
In response, the city has cut the budget by 5% across the board to fund migrant programs. To date, the budget impacts have been hitting after-school programs, recycling efforts, library hours, classroom size, staffing for police and fire departments and more. The across-theboard cuts are expected to increase to 15% and be accompanied by a hiring freeze and a prohibition on paid overtime. Doubtless, middle-class New Yorkers will flee. Over the last few years, the people most likely to leave New York City are not high-income earners but middle-income earners who are squeezed by taxes and reduced services. To date, higher-income earners seem less concerned with increased taxes and reductions in services, as stated by the New York Times. The city’s political leadership is exchanging productive tax-paying residents for migrants who are costing billions of dollars. This is a formula for a negative outcome. This also presents a conundrum. Some believe that undocumented migrants are good for the economy; others maintain that undocumented migrants are harmful to the
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economy. On balance, research has shown that migrants are a net positive for the economy. However, the current situation in the city suggests that prior research and modeling may be flawed.
to five times that of comparably valued one- to three-family homes will be so untenable as to start to drive out wealthier families. Without the SALT deductions, increasing local income taxes is also problematic.
Practically, the city has two options — increase revenues or find structural budget reductions that do not impact services to the middle class.
Cooperative and condominium buildings need to resist all efforts to increase local taxes, regardless of the type of tax to preserve the existing tax base. Also, raising property taxes on commercial property increases them on cooperatives and condominium buildings so that the disparate treatment of property taxes grows larger.
Ending sanctuary status for the City and allowing the federal authorities to start deportations is one obvious solution. So-called “sanctuary” status is not consistent with the laws of the United States. No municipality should be interfering with the work of the United States Citizenship and Immigration Services (USCIS). Holding hearings and deporting economic refugees is part of the solution. Deporting economic refugees would materially reduce the current burdens on the city. The city should not expect the federal government to allow undocumented migrants to have work permits. That will only serve to drive down wages and job opportunities for citizens and legal residents. This is counter to the strategies and plans of the Biden Administration. It would also make the city less attractive to middle-class workers by driving down their wages and opportunities. The option of seeking more revenue from city residents is risky. Increasing local taxes, whether sales, property or income, may continue to drive out middle-class families. At some point, the tax inequities, particularly the reality that property taxes for cooperative and condominium owners are four
There is one other option available for the city and that is more assistance from the federal government. That would partly come if USCIS was more involved in handling the undocumented migrants flooding into the city and partly because once the city cooperates with the USCIS, the federal government would have to, in effect, “reward” the city for cooperating. The ultimate solution, meaningful reform of the U.S. immigration laws, seems to be too much for Congress to tackle. There are no good solutions for cooperative and condominium buildings and residents given the conflicting policies at all levels of government. Holding the line on local taxes may be the only constructive approach open to cooperative and condominium buildings to protect their property values. This column presents a general discussion. This column does not provide legal advice. Please consult your attorney for specific legal advice.
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For more than 20 years, our bankers have worked alongside middle-market and small business owners during the good times as well as the not-so-good – tailoring our traditional and innovative banking products and services to meet the challenges and seize opportunities in front of our clients.
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Weathering Winter Conditions: A Checklist for Property Owners and Managers
Frank DeLucia
Senior Vice President Hub International Northeast frank.delucia@hubinternational.com (212)338-2395
The start of the 2024 winter season has already proven to be wildly unpredictable with damaging storms causing major flooding throughout the Northeast. Now, with the first snow fall behind us and colder winter months still ahead of us, it’s vital to prepare your property for weather that can be harsh and unforgiving.
spouts are free from debris and snow. Check that guards are in place to prevent ice dams and water damage. Roof drains should be cleared immediately following a snowfall. Roofs need to be inspected for any signs of damage or leaks, including missing or damaged shingles, flashing issues and deteriorating sealant.
To ensure the safety and well-being of owners and tenants, as well as the preservation of property, a comprehensive winter weather checklist is indispensable.
• On an annual basis, have the roof inspected by a roofing contractor, making sure flashing is secured, caulking is bonded, and any blisters, cracks or tenting of membrane is repaired.
• When it comes to plumbing, inspect the property for any exposed pipes and insulate them to prevent freezing. Disconnect garden hoses and drain outdoor faucets to prevent bursting pipes. If your property is vacant, take extra precautions by draining the plumbing system and shutting off the water supply to prevent frozen pipes.
Prepare for Snow and Ice Removal
• Inspect and maintain heating systems, including furnaces, boilers and fireplaces. Ensure that owners know how to use the heating system efficiently and safely. • On a weekly basis, make sure gutters, roof drains and down-
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• It is highly recommended that the strata or condo corporation sign a contract with a snow and ice removal company, ensuring it has insurance, and that the corporation is listed as an Additional Insured under that policy concerning liability. • If snow and ice removal is being done by residents, keep a log of dates, times and names of residents who are performing the removal and de-icing on the building grounds. If an insurance claim happens, the log can be used as evidence that appropriate standards of care for residents and guests were maintained.
• Ensure the property has an adequate supply of de-icing materials.
Emergency Preparedness
• Develop a winter season emergency plan, identifying council members and owners available for onsite after-hours emergency response. • Post and provide a building notice to all residents on who to call and what to do when there is a storm or water incident. These include local contact numbers for emergency response members, contractors and the property manager, including an after-hours emergency line. • Schedule regular property inspections to watch for any issues and address them quickly. Importantly, review your property insurance coverage with a seasoned advisor to ensure that you are adequately protected against potential winter-related damage. Being proactive and prepared for winter weather is crucial to the integrity and value of your property. By following these steps, you can reduce the risk of winter damage and maintain the long-term health of your property.
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LEASING | MANAGEMENT | INVESTMENTS
A MODERN APPROACH TO COMMERCIAL REAL ESTATE, POWERED BY A CENTURY'S WORTH OF EXPERIENCE.
We would like to take this opportunity to thank the following people: Our team & staff for their endless dedication and support Our tenants for their cooperation to keep our buildings safe Our partners for their trust and confidence in these challenging times All New Yorkers working tirelessly to keep our city moving We hope everyone continues to be healthy and safe in 2021. KAUFMANORGANIZATION.COM
COLUMNS
TurfMutt’s Tips for Enjoying Your Yard, A Winter Wonderland Spending time outside in your own backyard and community green space — backyarding, as the TurfMutt Foundation calls it — is good for you no matter what time of year. When winter hits, the temperatures drop, snow falls for many, and the days get shorter. But with a little creativity your yard can still be an outdoor oasis.
Kris Kiser
Outdoor Power Equipment Institute TurfMutt Foundation Equip Expo 1605 King St. Alexandria, VA 22314 turfmutt.com opei.org (703)549-7600
Here are the TurfMutt Foundation’s suggestions for turning your backyard into a winter wonderland:
Take cues from your dog. Most dogs love to play in the snow because it offers new smells to sniff out and a new layer to dig through. Lace up your winter boots and enjoy your yard with your family, including your dog. Snowballs make for an excellent game of fetch. If you get enough snow, you can even create an obstacle course for your furry friend. Using a snow blower will make quick work of the task and can provide a clear path for your pup to do his “business,” too. Light it up. Create a welcom-
ing ambiance that draws your family outside by stringing lights in your trees and shrubs and on your patio. You can also add lanterns and solar and battery-operated candles around your yard to bathe your outdoor space in sparkly, inviting light.
Add warmth. Being comfortable
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in the wintertime is all about temperature. Firepits are an excellent choice to add warmth, and they create an opportunity to gather around to make s’mores or tell stories. Patio heaters and outdoor fireplaces are other options to warm up your outdoor living room. For an added layer of comfort, set out a basket of blankets and packets of hand and toe warmers.
Create snow activities. Lure your family outside by creating winter-themed activities that are fun for all ages. Snowball fights, snowman-building sessions, a game of freeze tag and even tic-tac-snow are just a few ways to make a game of being outside this winter. Attract wildlife. Throughout the year, your yard is an important part of the connected ecosystem, linking nature to the manmade world of our neighborhoods. Support wildlife in the wintertime by adding bird and squirrel feeders to your trees and patio. Then observe the kinds of wildlife that visit your yard and how they differ from other seasonal wildlife. Involve your community. Who says neighborhood block parties can only happen in the summertime? Create community this winter by inviting your neighbors to participate in a Winter Wonderland Block Party. You can host a
snowman-building contest or snowball competition and serve hot chocolate to warm up.
Explore community green space. Take your winter back-
yarding into the community by exploring your neighborhood parks and other community green spaces. Take a nature walk to identify the wildlife you can spot in the wintertime. Or lace up your snowshoes or cross-country skis to explore the winter landscape. Grab the other kids on your block or in your building and hit the sledding hill at the community park. The options are endless!
Dress for success. As the saying goes, there is no such thing as bad weather, just bad clothing choices. Bundle up and wear layers when you head outside this winter. You will also want to keep your pet safe by monitoring their time outside and removing the snow from under their bellies and in between their paw pads before heading back inside. Remember, if you are cold, your pet probably is, too. For more, sign up for Mutt Mail, a monthly e-newsletter with backyarding tips and all the news from the TurfMutt Foundation. To learn more about creating the yard of your dreams, visit turfmutt.com. Look for Mulligan the TurfMutt on the CBS “Lucky Dog” television show.
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LANGSAM PROPERTY LANGSAM PROPERTY SERVICES CORP., AMO SERVICES CORP., AMO
Langsam Property Services Corp. is a Bronx-based real estate management company. These buildings areislocated in the Bronx, Manhattan, Queens, Langsam Property Services Corp. a Bronx-based real estate management Brooklyn, and buildings lower Westchester company. These are locatedCounty. in the Bronx, Manhattan, Queens, Brooklyn, and lower Westchester County. Langsam is designated as an Accredited Management Organization (AMO), a standard of excellence management conferred by the Institute of aReal Langsam is designated as an in Accredited Management Organization (AMO), EstateofManagement standard excellence (IREM). in management conferred by the Institute of Real Estate Management (IREM). 1601 Bronxdale Avenue New Avenue York 10462 1601Bronx, Bronxdale Tel: 718. 518. 8000 Bronx, New York 10462 Fax: 718.518. Tel: 718. 518. 80008585 Fax: 718.518. 8585
Mark Engel, CEO Mark Engel, CEO
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Matt Engel, Matt President Engel, President
FEBRUARY 2024 | MANN REPORT 71
www.langsampropertyservices.com
COLUMNS
Deb’s Retail Dish and Deals: Return of the Tourists My visit back home to New York for the ICSC conference in December showed what seemed to be a lot more activity than in 2022, especially on the subway and the streets.
Debra Hazel
Debra Hazel Communications North Las Vegas, NV (201)618-5247
A December report on “City Retail 2024” from JLL revealed that observation wasn’t just wishful thinking on my part. Tourism is back for major urban areas and so, to a lesser degree, are office workers. That bodes well for retailers, especially in the luxury sector. “The return of foot traffic to urban areas has driven the positive activity in prime corridors this year,” the report observed. “Upon reopening the economy, foot traffic to physical stores rebounded almost immediately, underscoring consumers’ persistent desire for in-person shopping experiences. Even still, urban retail destinations lagged compared to suburban destinations, mimicking migration patterns that emerged during the lockdown. Thanks to the combination of increased tourism, stabilized population outflows and the gradual return of office workers to the CBD, half of the prime urban cities highlighted in this report have seen footfall completely recover as of October 2023.” International tourism has rebounded around the country, with what JLL called “signif-
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icant” numbers of travelers coming to the U.S. from the Middle East, Africa and Europe. Hotel occupancies are now nearly at pre-pandemic norms, and as of September, international visitors had spent $156 billion in the U.S., up 31.6% year over year. JLL predicted that by year-end New York City would have seen 63.2 million visitors and anticipates that it will exceed its previous high of 66.6 million this year. What’s driving all these visitors to major cities? New experiences, dining out and entertainment. Performing arts spending rose more than 37.2% in 2023 over the previous year, with tours from Taylor Swift and Beyoncé being major drivers. They also spent on clothing and accessories, too, and not just on friendship bracelets for Swift and silver dresses for Beyoncé, driving leasing. “Apparel retailers comprised a hefty 48% of overall prime corridor leasing this year, up from 35% in 2022. Athleisure retailers comprised 21% of new apparel leases, with their popularity rising in tandem with the emergence of hybrid and remote work,” the report said. Cases in point include Lululemon, Alo Yoga, Vuori and Hoka. And with the lack of available supply of space, that drove rents.
But what I find even more interesting in the report is the rise of the luxury boutique. I’ve been covering the slow and painful decline of the department stores — even the high-end ones like Barney’s — for decades, with consolidation and resulting merchandise uniformity a major cause. These stores no longer had a point of view. But retailers like Kith, Kirna Zabete, Kitson and Elyse Walker do, and they’re expanding in New York, Los Angeles, Boston and Miami. “Luxury consumers have demonstrated a persistent appetite for a thoughtful curation of products from their favorite high fashion brands,” the report observed, adding that, “As a result, luxury boutiques have emerged as a growing category within the luxury space, composing 12% of new luxury leases in the last year.” Bit by bit, office workers are returning too. The report noted that the 10 weeks following Labor Day 2023 saw an 8% increase in office attendance as more employers were issuing stronger mandates. That will result in even more urban shopping growth and, perhaps, a rise in leasing in Midtown and some other areas that had continued to struggle. It was a nice way to start 2024.
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COLUMNS
Talk to The Pros and Avoid Problems Over the years, New York City has imposed a variety of laws requiring inspections, reporting and remediation of many facets of a building, whether co-op, condo or rental.
Ira Meister
President and CEO Matthew Adam Properties Inc. 375 Pearl St. – 14th Floor New York, NY 10038 imeister@matthewadam.com (212)699-8900
Included in this are Local Laws 10 and 11 mandating inspection and repairing of building exteriors, the recently adopted annual inspection of parapets and a sweeping up of the building code in 2021 covering plumbing, building and mechanical systems and elevators. In addition, Local Law 55 set a timetable to reduce carbon emissions. These are important new laws, though building managers and boards must be careful in hiring companies to perform the inspections. I am concerned that companies are springing up without the proper experience. This type of contractor abuse surfaced in the first round of inspections for Local Law 10. Many of us who had been through that sequence of events understand mechanical systems and are able to work with clients to better understand the law and its impact and hire qualified companies. It is important to seek out experienced, licensed companies and not firms born with the new laws. This brings me to a topic I discussed recently on a podcast: a new client building had contracted with an air conditioning company to provide a new HVAC system. While this example does not involve complying with city regulations,
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it shows the vital need to work with a cadre of experienced professionals on almost all infrastructure issues. The mixed-use building in question has a complex setup — it is a unique property. Several years ago, prior to our being retained as property manager, it purchased a stateof-the-art, $1.5 million HVAC system to get off the city’s steam system. The building contracted directly with the manufacturer’s representative of a major company and did not consult an engineer or consultant. The property owners believed they knew enough to supervise the installation of the system and the sales representative pretty much convinced them they didn’t need one. This was a complete replacement to provide heat, ventilating and air conditioning replacing a system that was 35 to 40 years old. At the time, the building had no property manager, nor did they bring in an engineer. The system worked well at first, but with the warmer weather, air conditioning was pretty much non-existent. In effect, the manufacturer installed the system, provided the owner’s manual and said good luck. There were items that were not hooked up properly, and a lot of modifications had to be made to make the system work. I examined the system and recommended that they bring in a mechanical engineer just
to confirm what I was seeing, which they did. Fortunately, many years ago I started out as an apprentice to a master builder, so I know a lot more about building systems than probably 99.9% of the property managers. The main problem was air circulation and no return lines. There were no provisions for the unit to take in fresh air, so it was basically suffocating and turning itself off. No one was shown how to change filters, given a maintenance schedule or advised to get a maintenance contract. The property owners were trying to run the building on their own, and it didn’t pan out. On most major capital improvements, I recommend seeking expert advice such as from an engineer or architect. Property owners need to get the right people involved before commencing on an expenditure like this. A knowledgeable property manager can be invaluable. Buildings have to measure and reduce their carbon emissions to comply with the city’s timetable. Since the law passed, I get ads and emails every day from those claiming expertise in this area. It’s a difficult time and I really feel that many property owners are ripe to be taken advantage of. They really need to do their homework. Before working with anyone, vet their experience and try to speak to buildings where they have done similar work. It is a worthwhile exercise.
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Decades of Perspective PA S S I O N F U E L E D B Y H U S T L E
Since 1979 we’ve brought a passion for the details to every facet of our business. As a multi-faceted real estate company and owner/ operator of more than one million square feet of commercial space, our decades of perspective ground our get it done approach.
ESSH Investment Platform 110 total transactions including 20 in past two years
NYC Ownership Portfolio 95% leased
Tenant Representation Actively involved in over 50 transactions in 2023
Ownership/Management/Leasing • Tenant Representation Agency Representation • Co-GP and LP Real Estate Investments Scott Galin, Principal/CEO | 212.398.1888 | Handler-re.com
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Real Estate Tax Credits and Incentives to Look Out for in 2024
Joseph Mecagni, CPA, MST Partner Marcum LLP
Boston, MA joseph.mecagni@marcumllp.com
Builders and developers eagerly awaiting the end of rising interest rates have endured several false starts. Indeed, the most recent inflation data for December underlined the stubbornness of the current inflation trend with a slight increase. This is particularly unwelcome as the Federal Reserve only recently announced its intention for up to three rate cuts in 2024. The impact of the latest inflation data remains to be seen, but considering their oft-reiterated 2% inflation target, it wouldn’t be shocking for the Fed to rethink its path forward. Even amid economic uncertainty, there is one tried-andtrue method developers and property owners can greatly impact their bottom line — the exploration and identification of tax deductions, credits and abatements. Several favorable tax incentives and credit programs are available to owners and developers, and all too often, are not fully taken advantage of by taxpayers. Here are a few tax programs that could prove advantageous for taxpayers in 2024.
Bonus Depreciation
The Tax Cuts and Jobs Act (TCJA) included a statute stating that qualified purchases made between September 27, 2017, and January 1, 2023, were eligible for 100% bonus depreciation. That fell to 80% in 2023 and declines to 60% for 2024. From here on out, the bonus depreciation rate only falls further at 20% per year until it is eliminated after 2026 unless Congress acts to continue the deduction. It may be too late to claim full bonus depreciation, but we
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can all agree that 60% bonus depreciation is too tempting to pass up. What’s more, the TCJA also expanded the properties eligible for bonus depreciation to include used and newly qualified properties.
Expanded Energy-Efficient Commercial Buildings Deduction
IRS Section 179D was subject to a substantial expansion under the Inflation Reduction Act. Owners of qualifying commercial properties and multifamily buildings of four stories or more meeting energy-efficiency standards may be eligible for tax deductions of up to $5 per square foot. That’s a significant increase from the $1.88 maximum deduction per square foot under the prior version. To qualify, taxpayers must meet wage and apprenticeship requirements and contract an independent engineering firm to certify that improvements to the qualifying property’s lighting, building envelope and HVAC systems have resulted in significant energy efficiency improvements.
Historic Preservation Tax Incentives
The Historic Tax Credit (HTC) is a federal tax incentive program in the United States designed to encourage the preservation and rehabilitation of historic buildings. The program provides a 20% credit on federal income taxes for qualified expenditures incurred in the process of rehabilitating historic structures. Each year, the Technical Preservation Services, the agency responsible for administer-
ing the program, approves approximately $6 billion in credits stemming from private investment. To qualify as a historic building, a property must be listed in the National Register of Historic Places or located within a historic district, retain “historic integrity” as designated by the National Park Service and date back to a “period of significance.” Building owners can apply for their properties to be deemed a certified historic structure through the National Park Service’s website. Additionally, qualifying renovations must pass a substantial rehabilitation test, and the work must comply with the Secretary of the Interior’s Standards for Rehabilitation.
New Market Tax Credit
The New Market Tax Credit incentivizes investment in distressed communities. It also expires on December 31, 2025, so time is running out. Still, the credit is worth a careful look as its value amounts to 39% of the original investment, claimed over seven years. The program works like this: private entities invest in Community Development Entities (CDEs), which, in turn, qualify individuals and corporations to claim a federal income tax credit. According to the Community Development Financial Institutions Fund’s website, the program has financed nearly 11,000 businesses. Of course, each of these programs can be nuanced and complex and impact your overall tax position. That’s why it’s so important to have a dedicated team of industry professionals on hand to assess your unique tax circumstances.
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FEBRUARY 2024 | MANN REPORT 79
COLLEGES
NEW YORK CITY: For Fordham’s Harris, the Ultimate Real Estate Classroom By Debra Hazel For those just learning about the real estate industry, New York City is a unique classroom and laboratory, at least according to real estate economist and investment strategist Joshua Harris, Ph.D., CRE, named in December 2023 as the executive director of the Fordham Real Estate Institute (REI)’s Lincoln Center campus in the city. Harris is responsible for external relations, overseeing curriculum development, promoting thought leadership among the faculty, and expanding program offerings.
Harris told Mann Report in an exclusive interview. “REI has a very strong curriculum, and the instructors are industry leaders, with real-world experience. I look forward to working together to further develop REI’s offerings of unique and timely programs as we grow our enrollment and our national — and international — prominence.”
Harris is the managing partner of the Lakemont Group, a real estate and economic consultancy with offices in New York and Orlando, Florida, where he specializes in real estate development, finance, capital markets, and business organizational leadership and strategy. He is also the newly named chair of the Counselors of Real Estate’s Economic Advisory Council. He is a former adjunct professor of real estate development at REI, capping a long career in industry education at New York University’s Shack Institute, St. John’s University and the University of Central Florida’s Dr. P. Phillips School of Real Estate.
“I originally studied engineering in school. I liked buildings and construction and interned with a construction company,” he recalled. “But I found that engineering at that level can be boring, on a personal level. I found that finance courses existed, and it was way more interesting as a freshman in college. And then I found that once you discover real estate, everything else looks less interesting by comparison.”
“I am thrilled to collaborate with the amazing faculty and team at Fordham’s Real Estate Institute,”
Harris’ path is an unusual one, but perhaps one that uniquely prepares him to help the professionals of the future.
He later earned a Ph.D. in finance from the University of Central Florida. Prior to returning to his role at the Lakemont Group in 2023, Harris was the vice president of Investment Strategy for Skanska USA Commercial Development, a developer of high-rise office, multifamily and mixed-used projects nationwide.
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He then taught at NYU for a bit. In time, Fordham came calling. “Fordham is obviously a very highly regarded brand, and I was certainly well aware of Fordham prior to teaching here,” Harris said. “When I left NYU and joined Skanska, Bob Morgenstern (Fordham REI director) reached out to me and asked if I was interested in teaching, when they were launching the master’s program. I was impressed with how they built out three programs, a growing base of students and this tremendous faculty. ” New York City’s faculty base was a major draw. “Everyone had had prior teaching experience at NYU and/or Columbia or MIT,” he recalled. “For a new program, it has accumulated centuries of actual experience. That’s impossible to do.” Because New York is a living laboratory — where many students need to work full time — a major goal for Harris is to serve multiple communities, while maintaining its traditional fulltime, on-campus programs. “Fordham is obviously very successful at launching a core program — both for full-time and part-time students,” he contin-
Joshua Harris
ued. “They made a conscious choice pre-pandemic to have a full offering of programs online. With Fordham being a top recognized New York City school, my goal with this is that you can live anywhere. But you can still become a Fordham student, take the bulk of your class online, and then come to the city in person for a week and build that New York network.” Currently, he is overseeing the launch of a hybrid one-year program for REI’s Master of Science in Real Estate and Master of Science in Real Estate Development that pairs flexible online courses with short, intensive residencies on the Lincoln Center campus. During the 12-month program, which begins in July 2024, students meet in person five times to attend daytime sessions and collaborate on team projects. International students with F-1 visas may take one online course each fall and spring semester and therefore complete the majority of the remaining 19.5 credits on campus. Registration begins in March 2024. The program won’t just appeal to students outside New York City — or the United States. Another audience consists of working professionals who simply can’t commit to twice-weekly in-person classes in the city.
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Photos courtesy of Fordham University
“In our work style, we’re just more flexible now, and I think our program should reflect that,” he said. Diversifying an Industry In a city where multigenerational real estate firms are not unusual, one of Harris’ goals at Fordham is to broaden the industry, even to exploring working with programs internationally “We need to expand, to open up, expose more people to real estate at a much younger age,” Harris observed. “It’s one of the weaknesses of the industry, that it’s been so insular, even nepotistic at times.” The industry also needs be expanded to include more women and more ethnic and racial diversity, which have been historically underrepresented, he continued. “The industry wants to do it, and knows how to make it happen,” he said. “That’s one of the opportunities we have.” Technology, too, is becoming more important — and not just for allowing professionals to work from anywhere. It’s something Fordham is still figuring out. “We have faculty who are heavily engaged in the real estate tech space, and we’ve been talking about some other programming,” he said. “I feel like my own career since I was with Skanska is about how do we interact with proptech. As a curriculum leader, we don’t want to commit too hard on any one thing, because things are changing so fast. It’s more about learning the process and how to adapt.”
buildings?” he said. “It’s a difficult question.” Owners will be focusing on systems to cut carbon from buildings, whether it’s to comply with Local Law 97 or simply for efficiency. Sensors can help owners know how many people are in a building, allowing them to preplan utilities and more. “That will be baseline core technology that everyone will have in 10 years,” he said. “We want to host those discussions and where appropriate, integrate it.” That’s why real estate is so fascinating, he said. It offers multiple approaches, including the more intellectual side of finance and consulting and the fun and thrill of dealmaking. “That interdisciplinary nature makes it so fascinating. For most students who choose to come to Fordham’s programs, they see something exciting,” he said. “It’s not a study or career people pick randomly.” And New York is the best location for his students. “New York is the most interesting city to study, and we make them as ready as possible,” he said, but he encourages his students to customize their projects, “In my development capability course, you can pick a project from anywhere. I’ve had students do something nationally, in Miami Beach and in Westchester.” Going local is probably the best course of action. Being able to walk or drive by the site can help in the research and writing. And it can lead to future employment.
A key aspect for real estate students to study may be transportation technology, Harris observed.
“If you want to get hired in South Florida, do something in South Florida,” he added.
“One of the things you have to understand about a city is how you get around a city,” he said.
Just as he pursued multiple paths, Harris encourages Fordham’s students to do the same, even to applying lessons from real estate to other industries because of their basic knowledge of business and economics.
Airplanes, for example, are the dominant driver of where a city is located and how they can grow or expand. Following that, trains and roads determine locations within cities. “That’s a technology question. So, when you look at buildings, how will AI and other technology change how we interact with
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“You can come into this, and it’s not limited to real estate,” Harris concluded. “Other aspects — of thinking, of finance, even hospitality — are such a big part of our lives, that with a degree in construction or real estate, you have a hand in practically everything.”
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ARCHITECTURE | ENGINEERING | CONSTRUCTION
IMC Architecture Completes New Le Café Coffee Location at
One Dag in Manhattan Photos courtesy of IMC Architecture IMC Architecture’s interior design studio completed a new Le Café Coffee location and other alterations and upgrades at One Dag in Manhattan. Located at 885 Second Ave. (also known as One Dag Hammarskjöld Plaza), between Grand Central Terminal and the United Nations headquarters complex in Manhattan, the 49-story, 870,000-square foot One Dag was designed by Emery Roth & Sons. The skyscraper houses commercial office tenants as well as numerous permanent missions to the UN. The new Le Café Coffee at One Dag was a part of several IMCdesigned upgrades made throughout the building. Overall work included not only the new café, which was constructed to mainly serve the building’s tenants, but also a new bike room and new package room, as well as upgrades to select hallways and a new bathroom. Le Café Coffee launched in 1952 with the opening of the brand’s first coffee factory. The first Le Café Coffee store opened in 2013 in Manhattan’s Union Square. Since then, the company has grown to 12 locations in Manhattan. The 300-square-foot coffee shop is located closer to 48th Street and One Dag Hammarskjöld Plaza, which is part of the building. The coffee shop’s main entrance is located in the lobby. It has a secondary street entrance, facing one of the property’s promenades, which doubles as an after-hours entrance to the building. As the coffee shop’s operator, Le Café provided functional requirements, look and branding directions, and spec and equipment requirements. In the early phase of the design process, IMC’s designers collaborated with Le Café’s team in reviewing branding elements and materials, which included visits and meetings at the chain’s other locations. The building’s property management provided input and support throughout the process, as it was important to ensure comfortable, well-designed and functional amenities for the tenants.
Design and Construction
“Our team encountered several design challenges during the project,” said Roberto De Los Rios, IMC Architecture associate. “The coffee shop concept had to be redesigned for a much smaller square footage than the typical Le Café location. In order to accommodate all required functions in the smaller space, the operator and design team decided to specify a smaller line of appliances as well as a more compact
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stone serving counter. In addition, since the ceiling in the café contains mechanical systems that needed to remain accessible for maintenance, the layout had to be designed in a way that access to the ceiling wasn’t blocked by furnishings.” The completed café features top-of-the-line appliances and a Caesarstone counter. Some of the walls feature engineered wood in the European oak look and there are white birch-colored tiles behind the counter. There is wainscoting on the walls as well as shelving to display merchandise. In addition, the existing terrazzo flooring was preserved and repaired. The adjacent lobby’s marble wall tile was extended to bleed into the café entrance to provide visual continuity for customers when they enter the café from the lobby. The café’s branding elements include vinyl wallpaper with vertical green and red stripes in different shades. The wallpaper has a film finish for ease of cleaning. Lighting elements include light sconces on the walls, track lighting in the back of the house section and recessed lighting in the ceiling. Bookshelves hanging from the ceiling near the counter feature indirect LED lighting tape that is used for ambiance. The ceiling is drywall painted white and features a slick, linear air diffuser, which the design team chose for a more harmonious look with less visual distractions. The original package room in the lobby was demolished and reconfigured to house the new café. A new 500-square-foot package room was constructed in the sub-cellar. It features a new window counter with a roll-down gate for package pick-up. The package room houses an x-ray scanner for parcels and allocated space for additional future safety equipment. The package room also has two-foot by two-foot lighting fixtures in an acoustical ceiling. Sections of the sub-cellar hallway were also renovated. The refurbished sections of the five-foot-wide cellar hallway feature a concrete floor with a gray epoxy finish and two-foot by two-foot lighting in a new acoustical ceiling. The walls were painted white and feature diamond plate metal wainscoting. WB Engineers+Consultants was the MEP engineer, and the general contractor was Unity Construction Group.
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AEC The adjacent lobby’s marble wall tile was extended into the café entrance to provide visual continuity..
The lighting system includes sconces, track fixtures and recessed lighting in the ceiling.
AEC
JRM Completes CAMP Space at Hospital for Special Surgery
Dynamic features include a data visualization area
84 MANN Custom millworkREPORT was used | FEBRUARY 2024
Photos courtesy of JRM Construction Management
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ARCHITECTURE | ENGINEERING | CONSTRUCTION JRM Construction Management has completed the Center for Analytics, Modeling and Performance (CAMP) space at the Hospital for Special Surgery (HSS) located at 535 East 70th St. The project, in collaboration with client HSS, showcases a state-ofthe-art facility designed to elevate musculoskeletal care and research capabilities. An affiliate of Weill Cornell Medical College, HSS is a leading academic medical center focused on musculoskeletal health. CAMP was established to increase its capabilities as a data-driven organization. The newly constructed CAMP encompasses 3,045 square feet and introduces a range of dynamic features, including a spacious data visualization and conference area, private executive offices, collaborative huddle spaces equipped with video conferencing capabilities, open seating zones with individual workstations and a modern IT/AV Closet. The facility is fully equipped with cutting-edge technology, enhancing HSS’ commitment to advancing the quality of musculoskeletal care through research and innovation. Throughout the project, JRM Construction Management implemented minor alterations to existing surrounding offices, strategically facilitating the decanting of HSS staff before the primary CAMP construction phase. Working within occupied and sensitive areas posed challenges, particularly given the proximity to the hospital’s active C-suite. JRM
The entire space is equipped with state-of-the art technology
played a crucial role in reconfiguring the mechanical, electrical and plumbing (MEP) systems to align with post-demolition conditions, complementing concurrent MEP projects throughout the hospital. Key MEP contributions include the installation of three new fan coil units integrated into the hospital’s building management system (BMS), the incorporation of two water filtration units in pantry areas and the implementation of a standalone lighting control system. The project also involved a complex rerouting of an existing water riser, a critical component supplying water to the hospital’s central sterile, necessitating close coordination with HSS facilities and stringent safety measures to ensure uninterrupted surgical procedures. The finishes for the CAMP project feature custom millwork cabinetry and furniture, including an innovative automatic rolling whiteboard millwork piece. Acoustical millwork paneling was applied to all walls, and the main lounge area ceiling showcased custom acoustical baffles to enhance sound control. “We are proud to have been part of this transformative project, collaborating with HSS, Stantec, Mapos Architects, DPC and OLA Consulting Engineers. The completion of the Center for Analytics, Modeling and Performance represents a significant milestone in healthcare research and innovation,” said Peter Mulcahey, vice president of healthcare at JRM Construction Management.
FEBRUARY 2024 | MANN REPORT 85
ARCHITECTURE | ENGINEERING | CONSTRUCTION
McCarthy Building Companies Breaks Ground on $285M UC, Riverside Student Housing Project
McCarthy Building Companies, Inc. (McCarthy) has broken ground on the $285 million, 424,000 square-foot North District Phase 2 Student Housing Development at the University of California, Riverside (UCR). This intersegmental project, one of the first of its kind in California, will house students from UCR and Riverside Community College District (RCCD), providing those students the opportunity to experience affordable campus living. The recent surge in enrollment at UCR and RCCD colleges has created a substantial disparity between housing demand and available options. The fall 2023 semester saw a record 40,054 freshmen admissions at UCR, but not all could be housed. According to UCR, it has the greatest among the UC campuses shortfalls in terms of meeting student housing demand. There were 3,000 requests for on-campus housing in fall 2022 that the campus could not meet. There are 8,700 beds currently, and the campus projects it needs about 14,000 by 2035. Students have been compelled to explore off-campus housing alternatives, which may not always be safe or convenient. This project aims to address the current housing shortage and ultimately provide a secure, comfortable and modern living environment for both undergraduate and graduate students. “The McCarthy team is proud to be part of this revolutionary project, which helps bridge the gap between larger universities and community colleges,” said Sarah Carr, vice president at McCarthy. “This housing development will provide affordable options that will enhance graduation rates not only for UCR students, but for Riverside City College students as well – a benefit to the entire community.”
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Photos courtesy of McCarthy Building Companies
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AEC The project will be the next phase of UCR’s North District project, which has previously seen the addition of two residential halls – five and six stories respectively — on the 50-acre tract that was the site of a sparsely populated World War II-era family housing complex. Located on UCR’s main campus, the project will provide 429 modern single and double occupancy apartment-style units ranging from one to four bedrooms and complete with kitchen/living room spaces along with contemporary amenities such as high-speed Wi-Fi, air conditioning, designated study areas and communal spaces designed for both academic focus and social engagement, including a café/market, new recreation fields and a central park. Gov. Gavin Newsom signed a bill that will provide $126 million in state money for a student residence complex to be built on the UCR campus in partnership with the Riverside Community College District, or RCCD, bringing the total number of beds to 1,568 and ensuring that students from diverse backgrounds have access to safe, affordable housing. The $126 million state allocation includes $75 million for RCCD, and $51 million for UCR. “We can’t solve all the problems that are challenges for students, but we can solve those two by bringing students to the campus, letting them live here, wear their UCR or RCC T-shirt, and just be part of the campus,” said Kim Wilcox, chancellor, UCR. “It breaks down a barrier and aside from the housing, it provides them with a different sense of themselves.” This intersegmental housing project “is meticulously and intentionally designed to break persistent cultural and psychological barriers that many of our first-generation and low-income students experience through a process of total immersion into the UC system.” said Wolde-Ab Isaac, chancellor of RCCD. “My hope is this unique partnership and innovative approach will serve as a model for others to emulate around the state.” The first students of the North District Phase 2 Student Housing Development are expected to move in in 2025.
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FEBRUARY 2024 2024 || MANN FEBRUARY MANN REPORT REPORT 87 87
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FEBRUARY 2024 | MANN REPORT 89
EXECUTIVE CHANGES
FCA Announces 2023 Leadership Promotions
Architecture and interior design firm FCA began 2024 with a new slate of promotions, including the appointments of Chip Hemphill, AIA, RA, NCARB, CDT and Stephen Jouflas, AIA, NCARB as principals.
Stephen Jouflas
“These promotions are an investment in the passionate and talented members of our team who will help shape the firm’s future,” said FCA President Aran McCarthy, AIA, NCARB. “As FCA approaches its 70th year, I look forward to seeing how these individuals will continue to uphold the core values upon which the firm was founded while advancing the possibilities of design.” Throughout his 17 years at FCA, Hemphill has contributed his technical acumen and understanding of complex structural systems to the development of innovative and efficient design solutions. In his new role, he will mentor and advance the technological skills of junior staff members, while continuing to support quality assurance and control across design teams. During his career he has brought his expertise to a range of challenging healthcare proj-
ects including the MD Anderson Cancer Center at Cooper University Hospital and the Cancer Center at Cooperman Barnabas Medical Center. A 10-year FCA veteran, Jouflas will shoulder greater operational responsibility and focus on staff development and management while remaining involved in day-to-day project development. He has been instrumental in shaping such notable projects as Newark Beth Israel Medical Center’s master plan and its implementation, the firm said. In addition to the new principals, FCA has named four new senior associates and eight new associates. Promoted to senior associate were: Brian Kessler, RA, NCARB; Paige Macfarlan, NCIDQ, LEED AP ID+C; Jessica Roden and Jessica Rotenberger, RA. Promoted to associate were: Mario DeJesus, NCARB; Brian Fullen, RA, NCARB; Rachel Howren, NCIDQ, Well AP; Nicholas Husbands, RA, LEED AP, LEAN Six Sigma; Adam Musante NCARB, LEED AP BD+C; Lisa Patusky; Michelle Reese, NCIDQ, Well AP and Carol Vandiepen, Associate AIA.
Chip Hemphill
Suffolk Names Ellis VP, Business Development for Mission Critical
Industry veteran William Ellis has joined construction giant Suffolk as vice president of business development for its Mission Critical Center of Excellence. Ellis will focus on diversifying and expanding the sector’s project portfolio by building key relationships and overseeing client service to its key data center clients.
“Suffolk’s Mission Critical Center of Excellence is thrilled to welcome William, who I am confident will continue to drive our strategic growth and impressive project portfolio in this high-potential sector,” said Charles McCarthy, general manager of Mission Critical at Suffolk. “William’s established background in electrical contracting, longstanding relationships in the data center industry and deep understanding of client needs and concerns will positively position Suffolk’s Mission Critical group for continued growth and operational excellence.” Ellis joins Suffolk from Wasatch Electric Group, where he gained industry experience over his 25 years with the company in various roles including journeyman electrician and senior estimator. Most recently, he served as a business development manager for the company, during which time the company increased its revenue by 35%. In this
90 MANN REPORT | FEBRUARY 2024
role, he was involved in the procurement, preconstruction and delivery of projects in major industry sectors including data centers, refineries, heavy industrial and healthcare facilities. “Throughout my career, I have learned the importance of building lasting relationships, understanding client needs, and developing a genuine care and concern for the partners we collaborate with,” Ellis said. “When I made the decision to transition from working with trade partners to general contractors, my top priority was finding a contractor that I would have been proud to do business with as a trade partner. Suffolk not only meets those expectations but exceeds them in every way.” Ellis’ understanding of client concerns, include industry-wide labor shortages and the complex and expedited nature of data center projects. His perspective will help guide clients through these industry challenges in a time of rising demand for data center capabilities, due in part to the global boom in cloud computing and artificial intelligence. Suffolk’s Mission Critical Center of Excellence works with large institutional clients including Yahoo and Verizon.
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EXECUTIVE CHANGES
Oakley Joins Douglaston Development as EVP
Douglaston Development has named Liz Oakley executive vice president of affordable development and government relations. Douglaston Development is an arm of The Douglaston Companies, a private group of real estate-related companies including Clinton Management and Levine Builders. Her primary focus will be on Douglaston Development’s affordable housing development strategy, spearheading relations and communications with governmental agencies, conducting public and community outreach and ensuring that Douglaston’s affordable development team works in tandem with all construction and management entities involved to maximize efficiency. Oakley boasts more than 15 years of affordable
housing and community development experience. Most recently, she served as a special advisor at HCR, advising the agency’s executive team on debt structuring and potential new program term sheets. Prior to her work at HCR, Oakley served as HPD deputy commissioner, leading the development team to exceed production targets of more than 25,000 affordable units for both the 2020 and 2021 fiscal years, and setting new records for homeless, senior and new construction production. Oakley additionally served as a senior vice president at Wells Fargo Community Lending & Investment, held various roles including vice president at HDC and acted as a Housing Fellow within the NYC HPD Housing Fellowship, a post-graduate program.
Levin Management Taps Tocco as EVP
Levin Management Corporation (LMC) has added Greg Tocco as executive vice president, overseeing LMC’s property operations, accounting and lease administration. His responsibilities also include enhancing and maintaining the company’s internal quality control systems and identifying opportunities to maximize the value of Levin’s managed properties.
Prior to joining LMC, Tocco was executive vice president of asset services at Metro Commercial. He previously held positions at Seritage Growth Properties and Rait Financial Trust. He earned a Juris Doctor degree from Ohio Northern University’s Pettit College of Law, and a bachelor’s degree from the University of Maryland. Tocco is a member of the Pennsylvania Bar Association and a member of ICSC.
Tocco’s 20-plus years of property operations and asset management background ranges from strategic planning to risk management, business development and leasing as well as environmental, social and corporate governance (ESG). Tocco’s experience includes retail, industrial, mixed-use and office real estate projects in major markets throughout the United States and Puerto Rico.
“We are so pleased to welcome this accomplished and results-driven industry leader to the Levin team,” said Matthew K. Harding, chief executive officer at Levin. “With his wealth of commercial real estate knowledge and experience, Greg is poised to play a pivotal role as we continue to move our company forward and enhance the quality of service we provide.”
Valet Living Names Davis President of MultiPro Property Solutions
Valet Living, a residential amenities provider to the multifamily housing industry, announced Steve Davis as president of MultiPro Property Solutions. The apartment turns provider is owned by Valet Living. He will be responsible for the growth of MultiPro, including a focus on the geographic expansion into the top 25 markets in the U.S. To support that expansion, Davis is also responsible for broadening the MultiPro independent contractor network to meet growing demand and enhance the services offered to clients. “Steve brings eight years of consistent success in creating pathways for sustained growth at Valet Living which positions him to lead MultiPro Property Solutions into the next phase of growth,” said Shawn Handrahan, CEO and president. “His keen sense of balance between expansion and
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operational support to sustain it is a critical factor in ensuring ongoing client satisfaction.” Davis joined Valet Living in 2015 as executive vice president of business development, where he focused on the continued development and build-out of go-to-market strategies as well as the operational execution strategies for the company. Davis has served in executive leadership roles for more than 35 years. After an 18-year career in the office solutions industry, Davis served in leadership roles for organizations providing products and services to the multifamily and hospitality industries. His past positions include executive positions at Safemark Systems, Digney York and HD Supply-Facilities Maintenance. He is a graduate of the University of Illinois at Urbana-Champaign.
FEBRUARY 2024 | MANN REPORT 91
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JOE CALTABIANO A respected voice in today’s emergent cannabis industry, Joe Caltabiano regularly provides guidance to startups and established companies alike. Caltabiano is the founder of JSC Fund, where he seeks to uncover and advance opportunities within the cannabis market. Prior to launching the JSC Fund, Caltabiano co-founded Cresco Labs, one of North America’s largest vertically integrated cannabis operators. With his extensive background in real estate, management and marketing, Caltabiano wore numerous hats at Cresco, guiding the company from a startup to a multi-state operator with annualized revenue of over $250 million and operations spanning nine states. He guided Cresco through numerous rounds of multimillion-dollar capital raises, including the company’s initial raise.
Joe Caltabiano CEO Healing Realty Trust
In addition to running all the revenuegenerating activities at the company, before entering the cannabis industry Caltabiano served as senior vice president of mortgage banking at Guaranteed Rate, one of the largest mortgage providers in the U.S. where he helped grow a sales division from 20 local members to over 1,000 nationwide. During his time at Guaranteed Rate, Caltabiano personally closed over $2.5 billion in loan volume and was ranked in the top 100 loan officers for 10 consecutive years, reaching number three in closed loan volume. Caltabiano’s work within the cannabis industry is personal. Caltabiano is a childhood leukemia survivor who continues to support organizations and efforts to help others in their fight against cancer. He has been honored as Man of the Year by the Chicago Leukemia and Lymphoma Society. Additionally, Caltabiano has been involved with the Gateway for Cancer Research, the Imerman Angels cancer support network, St. Jude Children’s Research Hospital and the Ronald McDonald House.
How long have you been in the industry?
I have been on the leading edge of the healthcare and wellness industries for more than 10 years.
What brought you into the industry?
I was just beginning to enjoy retirement when I was approached by Healing Realty Trust’s Co-founder and President Cody Shandraw, who shared the team’s mission to ensure that novel behavioral, mental and
94 MANN REPORT | FEBRUARY 2024
physical treatment programs are accessible to healthcare professionals and their patients, and I simply couldn’t say no. This role has allowed me to not only lend my expertise in real estate, finance and capital markets to guide the team, but to make a meaningful difference in meeting the demand for advanced healthcare facilities.
Who inspires you?
I believe that your biggest source of inspiration needs to come from within. As a successful entrepreneur and childhood leukemia survivor, my own personal experience of growth and healing has empowered me to foster further change in the healthcare industry to make much-needed therapies and treatments accessible to those in need.
Why are behavioral health therapies a good asset for landlords to consider leasing to?
Healthcare, in general, is one of the best-performing asset classes of all time. According to Precedence Research, the behavioral health market is projected to be valued at $132.4 billion by 2027. Whether it is physical health, mental health or a combination thereof, many of these treatments and services are U.S. Food and Drug Administration (FDA)-approved medicines that provide insurance reimbursement.
Why hasn’t it been focused on before?
This market is largely untapped because behavioral health is a fractured industry, traditionally dominated by sole proprietors. The “blue sky” opportunity exists within the psychedelic-assisted therapy medicine sector specifically, where there is little to no physical infrastructure that can appropriately support these emerging behavioral health modalities.
Does it have different requirements compared to a traditional medical office?
This depends on the specific treatments taking place in each facility but for the majority, no — these are typical medical office buildings that do not require much regarding tenant improvements. For clinics that intend to offer psychedelic-assisted therapies, we are seeing a few unique needs, such as private bathrooms and temperature controls for each room.
What keeps you up at night?
What keeps me up at night most frequently is knowing that I can still do more with what this life has given me, which helps me push forward to create new ventures that provide a positive impact in this world.
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FEBRUARY 2024 | MANN REPORT 95
BY THE NUMBERS
Residential Sales: Back to Business COVID-19 may still be around, but the pandemic — and its effects on residential real estate — may be easing as buyers and sellers adjust to higher mortgage rates. Homeowners are realizing that their sub-3% rates may not make up for their need to relocate or for more space, while buyers are adjusting their budgets (and maybe hoping for a refi by the end of this year or next). As of late 2023, this year looks to be one of gradual normalization, as we can see by the numbers.
0.8% The percentage increase of previously owned home sales
in November 2023 over the previous month, the first such rise since May (National Association of Realtors)
0.2%
The projected decrease in U.S. home prices in 2024, essentially flat (Zillow)
$113.6 trillion The anticipated value of the U.S. real estate market in 2023 (Statista.com)
$1.1 million
The median asking price in for a home in Manhattan in 2023 (StreetEasy)
0.44% The reported year-over-year decrease in New York City home prices in November 2023, with a median price of $797,000 (Redfin)
539,000
The number of unsold single-family homes on the market during the week of December 28, 2023, up 3.2% year-over-year (Altos Research)
96 MANN REPORT | FEBRUARY FEBRUARY 2024 2024
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