Top Real Estate Investment Tips From Expert Peter J. Connelly I lately had the opportunity interview real Estate Investment along with Development Expert Peter J. Connelly. Peter features decades involving experience in Commercial Property Development within Florida and has worked together with a number of the largest builders, developers along with investment companies inside the world. BC -Peter I comprehend you've many years' expertise as an industrial and residential property investment advisor. How have you get going in that field? PJC - Early in in my residential career I became considering commercial real estate as it was a lot more challenging in order to offering homes. I began taking lessons within commercial real-estate towards the particular earning with the "Certified Commercial Investment Member" (CCIM) Designation obtainable via the particular National Association of Realtors. While nonetheless doing perform in residential property I took a course in site selection for "fast food" restaurants. I took the actual illustration used within the coursework along with developed a "location requirement questionnaire" which usually has been forwarded to any or perhaps all of the main junk food chains at the time. I received several replies and ended up being in a situation to sell a site into a Rax Restaurant which had been built about U.S. Highway 1 in Vero Beach, FL. In yet another instance, I had leased office space to some cable television organization which served Vero Beach and also surrounding Indian River County. The Actual Company, United Artists Cable Vision (now Comcast) owned four acres that had been outside of his or her leased workplace that contained their own "head in" (large satellite antennas). A warehouse regarding about 6,000 Sq. Ft. containing "modular" self-storage units had been pertaining to sale next for their "head in" land. I performed an after-tax "Lease versus acquire analysis" together with parameters supplied by United Artists headquarters throughout Texas. Your organization accepted the actual "buy "recommendation in the analysis and also bought the actual property. The transaction developed the property assemblage with direct access to the United Artist's "headins". The Actual modular storage models were removed that developed space with regard to workplace space, warehouse room along with parking with regard to its' installation and repair service along with a "drive in" window pertaining to payments as well as the opening new cablevision accounts. BC - Exactly what sort involving credentials do you have? PJC - I am certainly one of approximately 15,000 commercial property practitioners within 40 countries to carry the CCIM Designation. Within addition, I support the Graduate Realtors designation (GRI) from the National Association involving Realtors. Furthermore, I have taken programs throughout Capitalization Theory from the Appraisal Institute and Property Accounting from your institute involving Real-estate Management (IREM).
College level course are employed in technical writing and construction estimating had been attended and completed. I took courses in public areas speaking and purchases from your Dale Carnegie institute. additional classroom research had been undertaken regarding property securities as well as mortgage brokerage. I have attended numerous seminars sponsored from the Urban Property Institute (ULI) Finally, I think about my principal "credential" to become able to happen in order to be earned although operating in the National Real-estate Consulting Firm, Landauer Associates, Inc. which in turn was located in Ny city using regional offices throughout your U.S. This I l received "hands on" training concerning the economic, demographic and also analytic facets of knowing numerous commercial as well as residential real estate products. BC - Have you primarily labored together with individual investors, developers or corporate entities? PJC - Primarily Investment Banks, Insurance Companies, National as well as International Lenders, Commercial as well as Residential real Estate Developers, Builder Publication list involving "Top 100" Builders, Corporations, Pension Fund Advisors and also wealthy families. These entities had big sufficient tasks and also investments in order to justify having to pay a new extremely recognized property consulting firm pertaining to his or her skilled advice. I have worked with individual investors on the limited time frame based around the smaller sized scope of the advisory assignment in inclusion to their monetary constraints. One instance could be the pricing, packaging and promotion of your 25 acre waterfront web site adjacent towards the Port of Fort Pierce, for the former Secretary associated with Agriculture regarding the State of Florida. Your website ended up being ultimately purchased by the Area associated with Fort Pierce and also incorporated into the master plan for its' deep water port. BC - Have you worked together with just about any clients we would recognize?
PJC - A Amount Of of the commercial as well as residential real estate clients I have got represented include: Aetna Realty Investors. Collier Enterprises, Safeco Insurance Company, Marine Midland Realty Credit, W.W. Grainger Industries, Merle Norman Cosmetics, Lehman Brothers, Parker Hannifin Corporation, Olympia & York U.S., Lloyd's Bank (London), Cornerstone Group, U.S. Realestate Advisors pension fund, KB Home, Arvida, William Lyon Organization amongst others. BC - What exactly are a quantity of the certain services you've provided like a property investment
advisor? PJC - Appraisal, Industry & Feasibility Studies, Portfolio Analysis together with "hold or perhaps sell" recommendations, Quarterly investment reviews regarding insurance organization loan collateral, Corporate acquisition analysis, non-performing loan analysis for the potential acquisition of your failed cost savings and also loan, asset/debt swaps. In addition, I have got provided the actual following real-estate services: Acquisition/Disposition regarding assets, Management, leasing along with grocery anchor expansion of your retail complex although below receivership. Loan restructuring outside of Bankruptcy Protection, Equity & debt Prospectuses, Request with regard to Proposals (RFP), Impartial review of management proposals upon behalf of a client with an industrial Park. Website choice with regard to multi-family tax-credit financed apartment communities as well as retirement communities. BC - Exactly what size projects maybe you have worked on? PJC - That They tasks have got ranged from a proposed 15,000 square foot retail complex situated in three acres involving terrain to some consortium of banks using $4.0 Billion in Loans for you to Olympia & York U.S. consisting regarding approximately 24 million square feet associated with office towers inside Manhattan as well as other Significant U.S. Urban Centers, positions in a pair of large residential communities throughout California and a variety of land holdings all through the actual United States. In the time it was the largest real-estate restructuring within the good status for the actual U.S. In addition, I have worked upon "Developments regarding Regional Impact" (DRI) containing a assortment of territory uses, Neighborhood Development Districts (CDD), equity as well as charge based country clubs and marinas along with wet as well as dry storage. BC - What exactly are a few involving the greatest challenges you've assisted clients overcome? PJC - Trust. The idea usually takes a couple of months for a client in add-on in order to their employees to accept a new alternative party outsider so as for you to instill a new level of trust as people may perceive that will their particular jobs will be in jeopardy more than under-performing real assets. However, the root of the situation could end up being declining marketplace conditions, overly optimistic supply and also demand assumptions, changing item demands in the market, misguided marketing and advertising programs, misreading the particular supply/demand characteristics associated with the marketplace or even poor management. As an advisor it may need long durations regarding market research, staff interviews, budgetary and file review along with forensic monetary analysis just to get one's arms round the concept of the actual real difficulty pertaining to complex property assets. However, your goal is never to judge any one of your individuals concerned in the process yet supply a group of solutions which improves and enhances value of the particular real estate asset. My belief is this just about all comes down to the term have confidence in which could be created as moment passes along with "Key" staff members. The Actual problem, as well as its solution, tend to be dictated by empirical data from main and also secondary study provided through the market, personnel interviews, marketing, product positioning, finance as well as other factors. Some solutions merely demand a "go/no go" for a proposed develop. Other People may be existing developments which might need "tweaking" by changing product mix, pricing, marketing approach,
etc. More extreme recommendations may include: lowering or perhaps growing densities, abandoning current item for manufacturer new much more market relevant product, as well as management change. Finally, intense cases may require extra capital infusion, loan restructuring or perhaps additional funding for infrastructure being more competitive, a great thing debt swap, deed-in-lieu involving foreclosure or perhaps contested foreclosure. All get-togethers to the above solutions have to go through the understanding method which ought to result in Trust. BC - How do you quantify the value of your services? PJC - Respect. Inside days gone by I represented Citicorp Real-estate and First National Bank involving Boston in the $150 million loan default. Your borrower "Good Gulfstream Holding Company" had each a territory development and homebuilding business together with tasks which range from Florida to be able to Virginia. Financial Institutions were no longer on speaking terms with all the business CEO and worked directly with the organization President. Over the actual period involving time associated with practically per year of interaction together with crucial staff members with the borrower, especially the President, we created a rapport based upon professionalism, reliability , mutual respect. During this occasion around period, the actual lenders required the actual President to lessen his annual compensation through over 36 percent! This, while operating lengthy hours, traveling for meetings along with bankruptcy attorneys throughout Manhattan as well as working with his staff for you to develop a new business strategy plan appropriate towards the lenders in order to avoid foreclosure. At the end regarding nine months, an asset/debt swap had been arranged via the mutual acceptance with the get-togethers for you to our business plan to get a land bank divestiture associated with assets through the lenders over any five 12 months period. This kind of relieved the borrower's development organization associated with $100 million money very first position debt. Three a prolonged time later, which President became the President in the former General Development Business (GDC), your largest home Builder and also Territory Developer inside the State regarding Florida. the business had just emerged from your largest real-estate bankruptcy inside the State's history. Your new business was named "Atlantic Gulf Communities" (AGC). At his appointment the particular President hired me along with my associates which worked about the Great Gulfstream Asset/Debt Swap to assist him and also staff in the "pricing, packaging as well as marketing along with advertising associated with some 88,000 acres involving remnant territory parcels within its cities and also communities all through the State of Florida. In addition, had been engaged to offer advisory services regarding AGC's new development including: master planned communities, waterfront and also downtown condominiums, rental apartments as well as other ventures. The lesson I discovered will be adversarial roles can transform for you to shared objectives by means
of mutual respect. BC - Can Be the compensation according to commissions or flat fees? PJC - Based around the assignment, compensation ended up being billed with an hourly rate, a fixed fee basis, month-to-month retainers and commissions/success fees. Most expenses were reimbursed for travel, hotel, meals, rental car, 3rd party research as well as consultants. BC - Perform you imagine your upcoming Trump presidency will possibly be bad as well as good for commercial real estate? PJC - In your event that Donald Trump follows via about his objectives for you to repatriate off-shore money from U.S. Based Corporations, Lower U.S. Corporate Federal income Tax Rates, address Trade agreements and imbalances with foreign entities along with encourage national fossil fuel exploration--all must lead to much more corporate investment within the United States Regarding America requiring a lot more office, industrial, store room along with intermodal infrastructure all through the particular country. BC - Just what type involving commercial development growth can you anticipate for Florida over the actual subsequent five to be able to ten years? PJC - Governor Scott, and previously Governor, Bush happen in order to be attempting in order to lure corporations for you to Florida by means of "Enterprise Florida" as well as other incentives. Previous transplants have got included Biotech and Personal Computer Generated Imagery (CGI) with firms such as the Scripps "Max Planck" Institute, Torrey Pines Institute, VGTI and also Digital Domain. VGTI provides failed in short order, Torrey Pines can be struggling while the Max Planck Institute has delivered nowhere nearby the work opportunities anticipated through the Bush administration. Unfortunately, Biotech will be funded by scholarships as well as demands success throughout its study to end up being able to obtain further funding. Digital Domain sought out involving enterprise within 6 several weeks involving opening its operations within Port. St. Lucie, Florida. Over the subsequent 10 years I think commercial real using become fueled in part through the relocation involving corporations via extremely taxed as well as regulated states like New York, New Jersey, Connecticut, California to identify a new few. This will dictate which terrain is likely to be put aside with regard to "build to be able to suit" corporate headquarters as well as single tenant workplace (back office) structures. Downtown substantial rise towers within Florida's major cities will demand larger "Floor Plates" along with preplanned connectivity in between numerous floors for large single tenants. Counties, such as Brevard tend to be already seeing tremendous need for office, industrial as well as analysis area thanks to growth in private space transportation, aerospace, communication and really soon to become increased defense shelling out beneath the particular Trump administration. The Particular prospect of your NASA Mars shot can be wild card. The current expansion with the Panama Canal has had extra a amount of thousand work opportunities in order to Florida's Ports that will ultimately lead to the dependence on much more distribution centers all through the particular state.
Tourism and also hospitality growth must carry on in wholesome rates leading to escalating development of resort rooms by each main resort Flagships and Boutiques. Convenience as well as fine dining must both be growth forces within the meals support sector. At current I do not really understand the role retail store development will play in future development over your subsequent decade. Walmart Grocery, Aldi along with Trader Joes are usually almost all creating inroads in to the State. However, with the advent of Amazon as well as other world wide web sources the future associated with regional mall tenants along with "Big Box" stores is in question. Could these spaces end up being "repurposed"? Just what will become the balance in between "Brick & Mortar" purchasing as well as surfing the internet? Whoever may predict individuals styles will likely earn a glance of cash within the retail store sector associated with commercial real estate over the next ten years. here