Foundry United Issue 10 by Foundry Commercial

A COMEBACK STORY THAT IS ONE FOR THE AGES

DON OF A NEW DAY SETTING OUR SIGHTS TO

THE FUTURE OF OFFICE SUMMER 2021

ISSUE 10

FOUNDRY IS BACK AND BETTER THAN EVER DURING

SERVE MONTH 2021

FOUNDRY UNITED ISSUE 10

Katie Trott and Matt Braun serving at Metropolitan Ministries Tampa, FL 3

FOUNDRY UNITED ISSUE 10

SET TING THE gold GOLD standard. STANDARD. At Foundry, we are in the relationship business. We have the privilege and opportunity to use every interaction to set ourselves apart, to make someone feel valued, no matter what our role is in the company. Ultimately, we are able to achieve a gold standard through working together as one team, with no silos, and we genuinely enjoy doing what we do in this walk alongside one another. In this, the tenth issue of Foundry United, take a look into the many ways we’re not only striving toward – but also leading the way in – setting the gold standard in our industry.

A M E S S AG E F ROM PAUL E L L IS The gold standard. Maybe a better way to say this:

We want to be a firm that customers want to work with. We want to be a place where really talented people want to work. We want to work with customers and partners that choose us because we can serve them the best, but they also enjoy the experience. We want to attract people who want to start their careers with us because others will pour into them. And we also want to attract legends who want to finish their legacy with us and pass along their knowledge to the next generation. We want talent who see a culture different than the place where they currently work, and want and believe they can have an impact on growing our platform. We aren’t there yet; there is always work to be done. But we are going to talk about it more and more. When you get the opportunity to build something, you had better take care of it, because… IT’S PE RS ON AL .

FOUNDRY UNITED ISSUE 10

THE TENTH ISSUE Looking at the many ways Foundry is not only striving toward – but also leading the way in – setting the gold standard in our industry.

E N C O R E 10 S TAT I S T I C S The most up-to-date statistics about Foundry Commercial.

12 IN CASE YOU MISSED IT From new market leaders to intra-office moves, catch up on the activity that’s been occurring across service lines and offices lately.

42 S E RV E M O N T H It may have looked different than in previous years, but we masked up and remained six feet apart to help feed the need in every market where Foundry has a presence during Serve Month 2021.

44 C U LT U R E Foundry associate milestones and much more. 6

Monica Boehm and Herlinda Bonilla Dallas, TX 7

FOUNDRY UNITED ISSUE 10

The Atlanta office serving at Food Well Alliance Atlanta, GA

ON THE UP AND UP Foundry’s Development & Investment team is growing, pressing ahead with several recently announced closings and more on the horizon.

THE FUTURE OF OFFICE Catching up with Foundry office brokers to get their thoughts about how offices have been impacted by COVID-19 and their sight lines into the future of office space.

F E A T U R E S 20

OFFICE 2021 AND BEYOND The world was left to figure out a new way of working amidst a global pandemic, and the way people use office space may never be the same again. Taking a look at the trends redefining office at this point in time.

SCOPE, SCHEDULE, BUDGET Foundry’s Project Management function provides clients with the know-how behind every step of the process, from design to permitting to building, from inspections to staying on budget.

Raleigh Office Serve Day Food Bank of Central and Eastern North Carolina

Steve Ball | Project Management Orlando, FL

Jennifer Jones and Gabe De Jesus Tampa and Orlando, FL

U N M AT C H E D E X P E R I E N C E . O U T S TA N D I N G R E S U LT S . Foundry’s Investment Advisory Group has emerged as a vital service component that allows our firm to serve clients during the entire life cycle of property ownership.

A L L T H AT G L I T T E R S ISN’T GOLD. S O M E T I M E S I T ’ S S I LV E R . The tidal wave of aging baby boomers is hitting the shore, and Foundry is well-positioned to grow in the healthcare and seniors housing industries.

THROUGH THICK AND THIN Following a chaotic 2020, we caught up with three long-time Foundry clients to get a glimpse into what has changed, what has remained constant, and how Foundry has been a part of their successes.

22 D O N O F A N E W D AY As we rounded the corner on a challenging 2020, Foundry Nashville managing director Don Albright was faced with a fight for his life. His comeback story is one for the ages.

Don and Julie Albright with their grandchildren Nashville, TN 9

FOUNDRY UNITED ISSUE 10

FO U N D RY C OM M E R C I A L

S TAT I S T I C S Like the Yellow Pages of yesteryear, these numbers will likely already be even more impressive by the time this issue of Foundry United hits your desk, but you get the point. We’re doing well by doing good.

LEASING & MANAGEMENT

UNITED

RECORDS PULLED AS OF 5/31/21

CARRIE MEEK

INTERNATIONAL BUSINESS PARK GROUNDBREAKING

SERVE WEEK RECAP CREWS COMMERCE CENTER

FOUR GROUNDBREAKINGS

MARKET SPOTLIGHT

PROJECT MANAGEMENT

IN FOUR WEEKS

GROUNDBREAKING

INDUSTRIAL

OFFICE

23.7M SF

21.8M SF

TEAM SPOTLIGHT

RALEIGH, NC

ISSUE 1

ISSUE 1 - 2016

ISSUE 3

ISSUE 2 - 2017

UNITED

ISSUE 3 - 2017

UNITED

58.3M

U LT I M AT E LY F U L L P O T E N T I A L AT F O U N D RY I S A B O U T O U R C A PAC I T Y T O M A K E A N I M PAC T, A N D T H AT M E A N S E X PA N D I N G O U R C A PAC I T Y T O LO V E W H AT W E D O A N D THOSE AROUND US.

SQUARE FEET OF LEASING & MANAGEMENT ASSIGNMENTS

Paul Ellis

THE ANATOMY OF A BUILDING

AND THE PASSION BEHIND LARRY STINAR AND HIS 3O-YEAR CAREER

BUILT FORD TOUGH

LEARN WHY OUR ACCOUNTING TEAM

LEARN HOW WE “CONNECT THE DOTS”

IS SO VITAL TO OUR SUCCESS

CROSS-MARKET

TEAM SPOTLIGHT

THE PERSONAL SIDE TO REAL ESTATE

ENGINEERS ACROSS THE MARKETS

WINTER 2019

ISSUE 6

ISSUE 7

ISSUE 6 - 2019

RELIGIOUS, E D U C AT I O N A N D N O T- F O R - P R O F I T

SUMMER 2019

BY GREGG ICKES

BUILDING RELATIONSHIPS WITH OUR TREASURED PARTNER ZURICH ALTERNATIVE ASSET MANAGEMENT, LLC

GROWING PAINS TURN INTO

OFFICE GAINS

WINTER 2020

ISSUE 8

ISSUE 7 - 2019

FIVE CORE PRINCIPLES THAT MAKE OUR

RALEIGH OFFICE A SUCCESS

ISSUE 8 - 2020

R E TA I L

11.4M SF

1.4M SF

FO U N D RY U N I T E D EX P LO RATI O N

W H AT P O P C U LT U R E W E R E W E TA L K I N G ABO U T I N T H E Y E A R 2016? THE FIRST ISSUE OF FOUNDRY UNITED WAS PUBLISHED IN THE SUMMER OF 2016. HERE’S A LOOK BACK DOWN MEMORY LANE TO RECALL WHAT WE WERE TALKING ABOUT IN 2016.

UNITED

BEYONCE SURPRISE DROP

HAMILTON ON BROADWAY

LEONARDO DICAPRIO

POKÉMON GO

THE MANNEQUIN CHALLENGE

CHICAGO CUBS

STRANGER THINGS

IN RIO DE JANEIRO, BRAZIL W I N N I N G 1 1 T O N Y AWA R D S

SERVE WEEK RECAP CREWS COMMERCE CENTER

GROUNDBREAKING

SUMMER OLYMPICS

MARKET SPOTLIGHT ISSUE 1

RALEIGH, NC

TA K E S O V E R T H E W O R L D

WIN THE WORLD SERIES

OF THE PHENOMENON: ‘LEMONADE’ WON HIS FIRST OSCAR

P E O P L E S T O O D S T I L L A N D I T WA S E N G R O S S I N G

WA S B O R N A N D WA S B I N G E D

FO U N D RY AS S O C I AT E S BY S TAT E

183

CALIFORNIA

FLORIDA

115

UNITED

SOUTH CAROLINA

UNITED

MASSACHUSETTS

GEORGIA

NORTH CAROLINA

TENNESSEE

TEXAS

NUMBER OF BROKERAGE TRANSACTIONS BY PROPERTY TYPE RECORDS PULLED FROM 8/1/20- 5/31/21

MILLENNIALS

AND THE NOT-SO-CRAZY DEMANDS FOR THEIR WORK ENVIRONMENT DIVE INTO ANDY HAWKINS’ STORY ON

WHAT GOODWILL MEANS TO HIM TEAM SPOTLIGHT

WINTER 2018

LEASE ADMINISTRATION

ISSUE 4 4 ISSUE

SUMMER 2018

ISSUE 5

ISSUE 4 - 2018

ISSUE 5 - 2018

UNITED

2020 HAS BEEN ANYTHING BUT TYPICAL, YET FOUNDRY’S 350+ ASSOCIATES CAME TOGETHER TO REMAIN

A COMEBACK STORY THAT IS ONE FOR THE AGES

FRONT AND CENTERED

ISSUE 9

VIRTUAL SERVE WEEK 2020

ISSUE 9 - 2020

TOTAL SF

Office

393

2,896,294

Industrial

321

14,204,368

Retail

240

1,492,953

Healthcare

58,595

Multi-Family

429,851

966

19,082,061

SETTING OUR SIGHTS TO

ADAPT AND OVERCOME THROUGH IT ALL, FOUNDRY FOUGHT THE ODDS AND CONTINUED TO SERVE WELL DURING

# OF DEALS

DON OF A NEW DAY

WHEN CHALLENGES ARISE, WE

SUMMER 2020

PROPERTY TYPE

THE FUTURE OF OFFICE

SUMMER 2021

ISSUE 10

FOUNDRY IS BACK AND BETTER THAN EVERY DURING

SERVE MONTH 2021

ISSUE 10 - 2021

CURRENT ISSUE! FEATURING, ON PG. 22, A MIRACULOUS STORY OF A TRUE SURVIVOR

TOTAL

D E V E LO PM E N T & I N V E STM E N T B U S I N E SS RECORDS PULLED AS OF 6/20/21

DEVELOPMENTS 76%

DEVELOPMENTS 65%

$1.51B TRANSACTION VALUE

ACQUISITIONS 35%

12.4M

ACQUISITIONS 24%

SQUARE FEET

11 11

IN CASE YOU MISSED IT F O U N D RY N E W S HIGHLIGHTS FROM AUGUST 2020 TO JUNE 2021

03 F O U N D RY B A N K S O N JPMORGAN EXECUTIVE TO GROW TA M PA O P E R AT I O N S Last Fall, David Kern was named Market Leader in Foundry’s Tampa office, where he is helping to increase the footprint of Foundry’s services and D&I business lines in that market. He comes to the company from J.P. Morgan, where he worked closely with Foundry to help develop Crews Commerce Center, Princeton Oaks, WestPark 85, and the Carrie Meek International Business Park.

SENIORS HOUSING – FULL SPEED AHEAD

CRE VETERAN JOINS F O U N D RY C O M M E R C I A L A S ITS TEXAS MARKET LEADER Foundry Commercial welcomes Steve Bassett to the position of Texas Market Leader with a primary focus on Foundry’s Dallas office. With more than 30 years in the commercial real estate industry, Bassett is a proven leader.

It’s been an exciting year for Foundry’s Healthcare and Seniors Housing platform! Following the announcement last summer that we’d formed a joint venture with Foster Senior Living to form FSL Senior Living Ventures, LLC, that venture went on to acquire two senior housing facilities – The Piper in Kansas City and Beach House Assisted Living & Memory Care in Jacksonville Beach. And just this June, formed another JV partnership with Cascadia Senior Living in the Pacific Northwest!

David Kern Tampa, FL

Steve Bassett Dallas, TX

05 PRIME PLAZA MIDWOOD REDEVELOPMENT TO I N C L U D E S U B S TA N T I A L R E TA I L A N D O F F I C E S PA C E Activity is heating up at the corner of Pecan and Central avenues, as developer Crosland Southeast recently announced Foundry Commercial was selected to handle property management for a revitalized shopping center in Plaza Midwood.

The Piper Senior Housing Community Kansas City, Kansas

02 HOUSES OF WORSHIP RECONSIDER THEIR REAL E S TAT E D U R I N G PA N D E M I C It’s no secret that various property types experienced the pandemic in different ways. For many churches, the sudden and oftentimes drastic decline in the number of people coming to their properties resulted in conversations about rethinking real estate. From long-term strategic planning to shortterm needs such as mass vaccination sites, churches and other religious properties have had to quickly make adjustments during this time of uncertainty. 12

Matt Messier Orlando, ChevalleFLSlaughter

Pecan and Central Charlotte, NC

DURHAM FIRM GRABS 144K SF TO A C C O M M O D AT E G R O W T H CandleScience, an online retailer of candle- and soap-making supplies, recently signed a lease for a 144,000-square foot manufacturing headquarters in Durham. Jim Allaire, SIOR represented landlord Scannell Properties in the transaction; Jackson Rives and Alexis Lambeth represented CandleScience.

T H E C S I C O M PA N I E S TA K E S T H E L E A P, S I G N S D E A L FOR HEADQUARTERS Despite most companies putting on the brakes to move office buildings during a global pandemic, The CSI Companies signed a lease to move its headquarters to The Point at Gate Parkway in Jacksonville. Brad Chrischilles represented CSI in its search. The CSI Companies provides national staffing in the technology, financial, accounting, health care, and other professional industries.

CSI Companies Jacksonville, FL

CandleScience Raleigh, NC

08 HERE WE GROW AGAIN

Steve Bassett, Jim Traynor, Dale Ray and Matthew Hurlbut Dallas, TX

It’s been an exciting past 6 months in Foundry’s Dallas office, as we recently welcomed Jim Traynor (who previously interned in Orlando with Foundry!) as Managing Director of D&I as well as Matt Hurlbut and Dale Ray as Senior VPs of Office Agency Leasing. They join recently appointed Market Leader Steve Bassett as Foundry’s presence in Texas and the Western U.S. continues to grow.

F O U N D RY A R R A N G E S 9 1 , 2 9 7 S F I N D U S T R I A L L E A S E I N M E T R O AT L A N TA FOR LOGISTICS FIRM Atlanta’s industrial market remains red-hot despite COVID-19, further underscored by the recent leasing of nearly 100,000 square feet by International Freight Forwarders, Inc. (IFF) at Eagles Landing Trade Center II. Foundry Commercial’s Jordan Camp and Reid Hanner represented the tenant in the transaction.

Eagles Landing Trade Center II Atlanta, GA

T R A D I N G S PA C E S One of the aspects that makes Foundry Commercial an amazing place to work are the career opportunities that exist in markets throughout the platform. In coordination with leadership, several associates have recently relocated to a new market to further grow their careers within the company.

ALEX GONZALEZ Senior Analyst, D&I – moved to Orlando from South Florida.

A N K O O R J I VA N Principal, D&I – moved to Atlanta from South Florida.

JENNIFER JONES HANNAH CHITTUM Senior Associate, Sr. Graphic Designer, Marketing Leadership – moved Office Brokerage – moved to Tampa from Orlando. to Nashville from Orlando.

J O N AT H A N B A LT H R O P Partner, D&I – moved to South Florida from Orlando. 1 3

FOUNDRY UNITED ISSUE 10

ON THE UP AND UP (and Up and Up and Up…) Few things went ‘up’ in 2020, except maybe our collective anxiety, purchases of N95 masks, and take-out order expenses. For the most part, we watched nervously as stocks tumbled, workforce numbers plummeted, and faith in once ‘sure-bet’ development projects waned. Not once during the past 18 months did Foundry’s Development & Investments (D&I) team lose sight of the opportunities on the horizon. Knowing the peaks and valleys of the commercial real estate industry, and the opportunities that arise because of the forces at play, the team immediately looked inward to stress-test deals in the pipeline, shifted their focus to the red-hot industrial market, and steadied operations for continued growth both during – and after – the pandemic.

14 14

Just in the past few months alone, Foundry has witnessed the fruits of the D&I team’s labors, with the addition of Jim Traynor, leading D&I efforts in the Dallas market, as well as a few more strategic hires planned in the near future.

that time, he has worked in New York City and Dallas establishing himself as a formidable commercial real estate professional, specializing in development and acquisitions in markets throughout the U.S.

Following Jimmy Grisham’s retirement, the D&I team turned its attention to the strategic hire of a new Deal Principal in the Dallas-Fort Worth area. In his role, Traynor is responsible for sourcing, capitalizing, and executing commercial real estate acquisitions and development opportunities in office, industrial, and retail product types throughout the Dallas metro. Traynor joining Foundry Commercial is a homecoming of sorts, as he interned for the company in 2009 while he was a student at the University of Central Florida. Since

Additionally, three major transactions have recently closed, including the first half of the Watkins development deal in Atlanta. Watkins is a 190,000-squarefoot industrial development deal in an infill location. This closing represented Ankoor “AJ” Jivan’s first closing since moving to Atlanta to head up Foundry’s D&I business there, and it was not without challenges. The deal was started during COVID and involved the assemblage of multiple parcels, but AJ and team persevered to the final closing this summer.

Melissa Alexander and Jason Holwerda from Nashville and Jim Traynor from Dallas Development & Investment Annual Event

AJ Jivan Partner, Vice President of D&I

AJ Jivan serves as Principal, Development & Investments for Foundry Commercial and has 12 years of commercial real estate experience. Since the inception of the Foundry D&I platform in 2013, AJ has been responsible for managing the Deal Hub.

Close on the heels of the Watkins announcement, Foundry – in partnership with HighBrook Investors – closed on the Americas International Center in MiamiDade County. This 147,000-square-foot shallow bay facility, which is 95% leased, is positioned within one of the most active industrial submarkets in the country. The deal marks the first closing for Ted Elam, who brought it back to life after it was shelved at the beginning of the pandemic. Foundry and HighBrook purchased the property from a family business unit that had owned AIC for more than 20 years. Conversations to buy AIC began in 2019 but stalled in early 2020 as the pandemic hit and were resurrected later in the year. Most recently, Foundry closed on the second phase of Lakeside Logistics in Plant City, a speculative industrial development that Foundry has partnered with Stockbridge to build. Development within Lakeside’s second phase will consist of two buildings totaling 414,000 square feet. This milestone occurred in tandem with the sale of the project’s first phase, a 505,160-squarefoot cross-dock distribution building sold to CBRE Global Investors. In total, the Lakeside Logistics development encompasses a 1,000-acre industrial park located just 22 miles east of Tampa and 56 miles southwest of Orlando.

2021 has already kicked off as a banner year for D&I, and there’s more to look forward to.

003 Lakeland Logistics 2-5-21 Aerial.jpg

“Watkins” Development Deal | 190,000 SF Development Smyrna, GA

Lakeside Logistics Phase I | 505,160 SF Development Plant City, FL

These projects and the expansion of the D&I team showcase the continuing momentum of Foundry’s development platform. For all the stress and uncertainties 2020 brought us, it’s clear that Foundry’s D&I team was not ready to let any barrier stand in their way.

005 Lakeland Logistics 2-5-21 Aerial.jpg

Americas International Center | 147,000 SF Development Miami, FL

THE FUTUR OF

FOUNDRY UNITED ISSUE 10

here has perhaps never been a more prolific shift in office dynamics than what occurred in 2020, as the spread of a global pandemic moved the majority of employed adults to a remotework environment. Of course, in the commercial real estate space, the reality quickly set in that the need for traditional office space may not ever look the same again. Will socially distanced seating arrangements and staggered scheduling be

a part of our new normal for the foreseeable future? Will we be able to participate in largescale events with our clients again? Will employers have demand for more – or less – office space? We caught up with several Foundry office brokers and leaders throughout the platform to get their thoughts about how offices have been impacted and their sight lines into the future of office space.

RE OF FFICE 17

FOUNDRY UNITED ISSUE 10

QUESTION: OBVIOUSLY, COVID-19 HAS HAD MAJOR IMPACTS ON THE OFFICE MARKET, PROBABLY MORE SO THAN ANY OTHER INDUSTRY SEGMENT. WHAT WAS THE BIGGEST SURPRISE OR LESSON LEARNED FOR YOU DURING THE PAST YEAR? Brian Howell, Atlanta: The biggest surprise for me was how quickly the office industry was able to adapt. The pandemic created a major impact to the office market, but considering how many companies across the globe had to transition to a workfrom-home model within a matter of days, it is absolutely amazing the office market

fundamentals are as strong as they are today. I think it really proves that companies do not have the dependency on office space they did 10 - 20 years ago. Can you imagine if this had happened pre-laptop or pre-cloud server? The main lesson I took away after a year of speaking with friends working remote and pushing through Zoom fatigue is that office space may not be a place that’s necessary to conduct business, but it continues to be a vital component to culture and collaboration. Brian Brooks, Dallas: We’ve seen a number of multifloor subleases hit the market. The spaces that have moved seem to be those that can be easily divided. Obviously, a tenant looking to sublease wants to get their entire obligation accounted for, but the prospect pool is much deeper with increased flexibility on size. While I don’t think tenants will design space only so it is easier to dispose, it is something to consider when building out multi-floor spaces (i.e. breakrooms, conference rooms, receptions, offices, open areas, training rooms, etc. on all floors). QUESTION: WHAT DO YOU THINK THE ‘OFFICE OF THE FUTURE’ WILL ENTAIL? John Mudgett, Nashville: While businesses grapple with how to return to the office, the near-term modifications to the office space will be relatively modest, especially in the B & C office segments. 18

High-end Class-A office or creative office to an educated workforce will need to focus on environments that foster creativity and collaboration while also inspiring people to come into the office. The office of the future will be highly adaptable, well-curated, personalized, creative, collaborative, and inspired. Many may include virtual and augmented reality, more digital screens throughout, content studios around videos, and sound recording. I suspect there will be many modifications around addressing this paradigm shift to living and working in a digital world. Karah Stumler, Charlotte: Not only did COVID-19 challenge companies to reevaluate their office needs, but the pandemic also forced companies to look at their internal technologies

as it relates to remote working. I think we will continue to see a trend of companies really investing in technology and taking advantage of how it can help grow their business. Separately, I think there is a big flight to quality as price isn’t necessarily a concern. Now, it’s all about providing a creative office space in a great area that will attract employees back into the office. QUESTION: WHAT ARE SOME OF THE MOST CREATIVE WAYS YOU’VE SEEN OFFICE SPACE TRANSFORMED / RECONFIGURED DURING THE PAST YEAR? Karah Stumler, Charlotte: This is an interesting question because I don’t think we have seen the full of effect of how companies will be reconfiguring their office spaces yet. I think we all went into

this thinking the “traditional/ old school” office layout with a bunch of private offices was going to come back, but in reality, it really hasn’t. However, I do think companies are adding more break-out space, phone rooms, and trying to find a component of outdoor space. Jennifer Jones, Tampa: We have continued to see designated areas where employees must enter and exit. It is kind of humorous to think we have come to a point where we need arrows on the floor to tell us which way we can walk in our office to avoid ‘cross contamination.’ I do think this particular change will quickly fade away, though. QUESTION: IN TERMS OF A STABILIZATION OF THE MARKET, DO YOU THINK WE’RE THERE NOW? IF NOT, WHAT ARE YOUR PROJECTIONS FOR WHEN WE WILL BE THERE? Brian Howell, Atlanta: I do not think we’ve hit a point of stabilization yet. In Atlanta, availability rates are the highest they’ve been since 2013. We also just hit our first quarter of negative rent growth in nine years. A major disrupter to market fundamentals is the amount of sublet space that has hit the market. At 5.9 million SF of sublease space, we are 84% higher than where we were pre-COVID-19. As vaccines are rolled out, there does seem to be a flood of inquiries and tours and I think this will ultimately lead to a busy 2021. There’s a buzz of optimism as people receive their shots and life slowly returns to normalcy. While I think we’re still six to nine months from that date, we are close enough for real estate decision-makers to start evaluating their office needs post-pandemic. Brian Brooks, Dallas: We’ve already seen an increase in activity, and I expect things to ramp up mid-summer. John Mudgett, Nashville: Yes. The market is stabilizing, and the recovery is accelerating with both local consumer confidence and market activity. It feels somewhat odd saying this, but the market is back in Nashville. Traffic is resuming. Restaurants are full. The tractors and bikes are carting tourists through the urban core. The airport is starting to fill up. Broadway is packed on the weekends. Economic development is accelerating at a rapid pace. There will be a little bit of slack in the market due to subleases or tenants right-sizing, but not much and it will dissipate quickly. Nashville has benefited and will continue to benefit significantly from the pandemic.

QUESTION: HOW DOES FOUNDRY SET ITSELF APART FROM OTHER BROKERAGE FIRMS DURING CHALLENGING TIMES LIKE THIS? Jennifer Jones, Tampa: We have phenomenal internal communication! I distinctly remember in the beginning of COVID-19 chatting with brokers from the bigger platforms about some of the changes that had been made in their offices. The majority of responses I heard were along the lines of “I have no idea; I was just told to work from home and I’m not sure when I can go back.” A local office was having to listen to decision-makers sitting in New York who were implementing the same rules for every office across the country. At Foundry, we got to see our CEO send constant updates from his home! John Mudgett, Nashville: In an increasingly complex and networked world, it is imperative to have a team of highly skilled individuals with the best resources at their disposal. That’s Foundry. The best of the big firms and the strongest of the boutique firms. We can compete with the large multimarket platforms at the highest level, but we haven’t lost the creativity or the hustle of the small and scrappy boutique firms. This competitive advantage allows us to navigate a rapidly evolving market, provide the best market intelligence and the highest quality of marketing materials to our clients. Brian Howell, Atlanta: I was relatively new to Foundry when the pandemic hit and was extremely impressed with the company’s response. The communication and collaboration across the platform allowed us to not only best position our assets in a time of uncertainty, but to be a resource for our clients so they had information from the field to go back to their internal teams and share best practices and market intel. Every client I spoke with said none of their other brokerage teams had such informative or personalized calls. While most shops turned to their corporate leadership to craft advice for their clients, Foundry’s leadership turned to the expertise of the local teams to advise clients on the new operating environment. I think this is a testament not only to the strength of everyone at Foundry, but also a display of how personal our business can be.

OFFICE 2 0 21 FOUNDRY UNITED ISSUE 10

A N D

B E Y O N D

Written by: Charles Jonas

Maybe more than any other segment in commercial real estate, the office sector must adjust to cyclical trends impacted by the economy, individual preferences, and changing technologies. This was perhaps no more evident than in 2020, a year that redefined what ‘going to the office’ meant to most people. While we are still probably months or even several years away from understanding the true impacts of a global pandemic on the office segment, there are several takeaways we can already glean and adjust to as we begin to define what a return to the office looks like.

Britney Ruffo Orlando, FL 20

EMPLOYERS ARE FOLLOWING THE LEAD OF EMPLOYEES. One of the primary takeaways from the past year is that employees – especially as unemployment numbers continue to decline – are speaking up like never before about the flexibility they require to perform their jobs well. Many employees are still faced with safety decisions specific to their own circumstances, necessitating they perform their jobs from home, and we’re learning that many people can be just as – if not more – efficient in a work-from-home setting. As the country starts to see vaccine rates nearing the levels required for herd immunity, employees are also expressing that the workplace they want to come back to should be one focused on flexible and collaborative spaces. Workplace cultures focused on collaboration are more important than ever, as employees are seeking to experience the benefits of coming into work that don’t exist in their WFH setup.

TECHNOLOGY INVESTMENT IS CRITICAL. The companies that were set up to quickly and efficiently pivot to a remote work environment were the ones that experienced few pain-points when it became necessary to do so. Employees took note of how easy the transition to working from home was, and how quickly they were able to adapt to performing their job functions away from the traditional office environment. As more employees seek flex working arrangements allowing them to both work from home as well as come into a collaborative office environment, employers will need to continue to provide the latest technologies that afford those opportunities.

John Cole and Mark Scott Jacksonville, FL

HEALTHY BUILDINGS HAVE BECOME ESSENTIAL.

OFFICE DESTINATIONS – ‘SURBAN’ SUBMARKETS

Before the pandemic, a healthy office building was a nice-to-have, with some building managers and landlords focused on achieving workplace wellness certifications and health-related amenities that placed wellness of both the building and those who worked there at the forefront. Now, employees who fully understand the impacts of being in close quarters with people outside the safety of their predetermined ‘COVID-19 pods’ are mandating that extra precautions be given to the health of the buildings where they work. Expect to see retrofitting or just more touting of building amenities such as outdoor space, access to walkable trails, and HVAC upgrades that showcase a building owner’s commitment to the wellness of those who work there.

The physical workspace and the submarket where that space is located has reached a level of importance like never before. To attract employees back to the workplace, an office location should provide a healthy, attractive environment close to employee’s homes and in walkable heavily-amenitized neighborhoods. These corridors are found adjacent to more traditional urban cores with the accessibility of suburban markets. These ‘Surban’ submarkets incorporate both. Employees aren’t looking for a long subway commute to an urban core where they are crammed into an elevator with 15 others on the way up to their respective floor. Rather, they want an office they can drive to, with plenty of fresh air and outdoor space, in a location that’s convenient to where they live, and in a hotbed of walkable restaurants and retail. Naturally, office spaces in these ‘Surban’ markets throughout the Sunbelt – where ample incentives, pro-business tax structures, and excellent quality of life – are going to attract employees and employers alike.

WORKPLACE CULTURES FOCUSED ON COLLABORATION ARE MORE IMPORTANT THAN EVER. 21

FOUNDRY UNITED ISSUE 10

DON OF A NEW DAY 22

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You’d be hard-pressed to find a commercial real estate professional in the greater Nashville area who hasn’t somehow been positively impacted by Don Albright. With a 40+ year career in the industry, Don has been a part of the leasing, selling, developing, and purchasing of just about every building that paints the Nashville skyline. Beyond the accolades he has received throughout the years for his professional achievements, Don is also one of the best stewards and representatives in our industry. Says Nashville Market Leader Jason Holwerda: “Throughout the years, he has been a personal mentor to many professionals in the brokerage community, including me. Don is a voice of wisdom and encouragement for those who are just trying to break into the industry all the way to seasoned veterans. It would be difficult to find someone in our city that has had a greater impact within the real estate community than Don Albright.” Foundry CEO Paul Ellis echoes similar sentiments: “For me, what strikes me about Don is how positive and joyful he is. I can’t remember not laughing when around him, and that shouldn’t take away from how talented he is in our space. His positive attitude is infectious, and how he makes others feel is accretive to his skill set.”

AN INTEGRAL PART OF FOUNDRY’S NASHVILLE LAUNCH + GROWTH Fortunately for Foundry, shortly after the firm launched a Nashville presence, Don Albright’s career path shifted in such a way that it was possible to begin conversations about joining the company. “I had always been with national flags, and to be honest, I thought that’s where I’d remain. But there’s just something special about Foundry,” said Albright. “It is as special and unique an organization as I’ve ever been fortunate enough to affiliate with. People genuinely care about each other. I have such an affection for Foundry, its people, and its culture. And who could have known – when I joined the organization – just how evident all of those things would become to me during this season of my life?” His leadership within the Nashville office has been a huge part of the success in the region during the formative years and beyond. “His presence on the Nashville team has been critical to launching and building Foundry’s brand in this market,” added Holwerda. “Don embodies everything that Foundry stands for. He puts others before himself; he has no idea what a silo even looks like; and he takes the success of our associates, clients, and partners personally. Don is passionate about raising the next generation of real estate professionals, and we are lucky to have his fingerprints all over the Nashville office.”

I had always been with national flags, and to be honest, I thought that’s where I’d remain. But there’s just something special about Foundry. Brandon and Don Albright Nashville, TN 25

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A WILLING AND ENCOURAGING MENTOR To that point, one of the character traits often attributed to Don Albright is his willingness to mentor up-and-coming commercial real estate professionals. Tara Hasenour, Graphic Designer in the Nashville office, said: “He knows everything there is to know about the business, and he’s willing to take other professionals under his wing to help them learn how to best navigate this industry, and he does it in a way that is so nurturing and not at all intimidating. We knew a few people in common before I had the opportunity to meet him, so I knew in advance I was fortunate to be working alongside him, but no one prepared for me for the fact that my connection with Don would be instantaneous. He immediately makes you feel like you’re the most important person in the room and mentors you in a way that is subtle and encouraging.” Paul Ellis reflects on the decision Don made to come to Foundry in order to continue to serve as a mentor to Jason Holwerda as the new office location was launched. “Don was clear that he wanted to come to Foundry based on his relationship with Jason and how they cared for each other. That kind of commitment within a business context doesn’t always get talked about, but it is an incredible testament to the type of company we want to be,” Ellis said.

THERE FOR ONE ANOTHER IN GOOD TIMES AND BAD In late 2020, Don Albright was admitted to the ICU, where he spent weeks fighting for his life. Across the company, associates prayed for Don and his family, sending messages of encouragement and support to the Albright family during a difficult season. True to the spirit of his character, Don has made a miraculous recovery. “It’s funny what I can and cannot remember from the time I was in the medically induced coma; however, I do recollect hearing my family members read the outpouring of love and notes,” added Albright. “Charles Jonas must have written me a note every day; I’m surprised he didn’t get carpal tunnel syndrome. And I even received cards from the entire class of Jason’s second-grade son. It’s been such an important part of my recovery to go back and read them all again now that I’m home.” 26

Julie and Don Albright Nashville, TN

He then went on to add: “When I was considering joining Foundry, I had the chance to meet with Ford Gibson for the first time, and I have always admired and respected him. Perhaps our relationship was born of divine circumstances, because as I was getting out of the ICU and I was feeling particularly discouraged, Ford reached out and shared some of what he went through several years ago. He said, ‘Whatever you do, just don’t ever, ever quit.’ I’ve held that advice close, especially on some of the harder days.” Tara Hasenour reflects on the time she, too, suffered a medical trauma and Don was there to encourage her and support her every step of the way. “I’d been involved in an accident as a pedestrian, and there was a long road to recovery ahead of me. Don could immediately sense that, and he’d just come over to my desk, invite me to church, and we’d find ourselves at church praying together on a random Tuesday morning. He was such a rock to me during that turbulent time, and I wanted to be the same for him and his family.”

FOCUSED ON THE RIGHT PRIORITIES As time wears on and Don continues to progress, his booming personality can’t be suppressed. He’s gradually making his way back into work activities, and there’s a big sigh of relief to see him pop onto a Zoom meeting or to receive an email in your inbox from him. While he knows the road to recovery won’t be easy, he’s encouraged by the support he continues to receive from his colleagues at Foundry… a term he is careful to reassess. “Friends. I have deep friendships at Foundry,” he states. Jason Holwerda echoes similar sentiments: “More than a professional, a mentor, a partner, or an associate, Don is a friend. His friendship has made me a better professional, but he’s also made be a better person, a better husband, a better son, a better father, and friend. I am forever grateful he chose to chart a course with Foundry, and I anxiously await what lies ahead.” 27

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Foundry Commercial Project Management

SCOPE, SCHEDULE, BUDGET. When discussing the notion of a gold standard, we’re often asked to consider what sets Foundry apart from others in the industry. What elements of our company make us stand out – above and ahead of – others in our space? In many instances, whether anecdotally or from the perspectives of our clients, Foundry is lauded for our boutique, personalized approach to our clients and projects. At Foundry, no one is met with a one -size-fits-all mentality, which often translates to better efficiencies and improved outcomes. Likewise, Foundry is frequently recognized for our ability to work nimbly across markets, involving the appropriate resources and team members as necessary, while maintaining the personalized approach we’re so proud of. Foundry’s Project Management service line is a true example of our cultural commitment to no silos… the embodiment of a cross-platform team that has come together to manage every aspect of a project from start to finish. Whether large-scale or small, industrial, commercial, retail, or not-for-profit, the approximately 20 Project Management associates and principals spread throughout the U.S. continue to prove just how well our teams can work together. Foundry’s Project Management function provides clients with the know-how behind every step of the process, from design to permitting to building, from inspections to staying on budget. The clients served by our Project Management team cross varying industries, including law firms, storage facilities, not-for-profit organizations, design and IT companies, manufacturing businesses, and many in between. From capital improvements such as a small lobby refresh to the build-out of an entire warehouse space, the projects managed by Foundry all differ in size and scope. 2 28 8

In recently catching up with David Kafel, a Senior Project Manager who works out of Foundry’s Raleigh office, he shared some of the recent successes and opportunities for the Project Management team. “As Project Managers, we oversee the scope, schedule, and budget of a project. We serve in a risk management capacity to help our clients avoid delays and extra costs. We also take the time to really dive into the scope of a project, finding areas where we can be more efficient, thus saving time and money for our clients. Our goal is to make the process more proactive than reactive for them,” Kafel said. Like most business lines, there were impacts from COVID-19, but the Project Management function was mostly insulated from any major shockwaves. “Fortunately, we had a healthy amount of projects in our pipeline heading into the pandemic that there wasn’t any time to slow down,” he added. “We were

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considered essential in all of the markets where we had projects going on, so there was never really any pause to the flow of projects we had active.” Kafel noted that Project Management billings in Raleigh hit record highs, in spite of the pandemic. “Of course, a lot of the projects we worked on last year were somehow related to the industrial and manufacturing segments.” Several office owners also made capital improvements at their buildings during

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2020, taking advantage of a time when many people were working from home. To date, the majority of projects completed or underway by Foundry’s Project Management team have been referred in some capacity by another team member or department at Foundry. “Often, brokers come to the Project Management team to let us know about a need of a tenant or landlord, or about an upcoming transaction that might make for a good Project Management opportunity,” added Kafel. “Being at such a closeknit company as Foundry gives us all the ability to reach across the platform to work in tandem with brokers, property managers, and deal principals to showcase our expertise in this area. And that’s something that makes us really unique.”

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Don Albright Partner 32

Rick Helton Partner

Foundry has become an established and trusted advisor to clients for leasing, property management, project management, tenant representation, disposition brokerage and investment/development services throughout the Sun Belt. Now Foundry is rounding out its stable of service offerings by boldly getting into the investment sale business with the Investment Advisory Group (IAG), based in Nashville, forming the tip of the spear for this initiative. WITH OV E R 7 5 Y E ARS AN D $ 4 . 5 BIL L ION COM BIN E D TRAN S ACTION E XPE RIE N CE , TH E IAG TE AM AT F OUN D RY TAKE S ON TH E ROL E OF TRUS TE D IN V E S TM E N T AD V IS OR WITH CL IE N TS IN TH E H AN D L IN G OF AS S E T D IS POS ITION S , A CQUIS ITION S , RE CAPITAL IZATION S , AN D 1 0 3 1 E XCH AN G E S ACROS S AL L M AJOR PR OD UCT TY PE S - OF F ICE , M ULTI-FAM ILY, IN D US TRIAL , AN D L AN D.

The scope of this team’s capabilities and track record ranges from over $50 million institutional investment sales to just under $5 million private capital property sales. The team has developed a systematic process for listings, while tailoring each assignment to the unique needs of the client and the asset. While the IAG team operates from Nashville, they can execute transactions in any of the markets and states that Foundry Commercial has an office, or wherever a client needs our services.

O U T STA N D I N G RESULTS 33

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Ally Lanahan Senior Associate

W.B. Scoggin Vice President

TH E HISTORY Foundry knew as it expanded its presence in Nashville, they would have the opportunity to start the investment sales service line for the platform. In 2017, Foundry added 40+ year industry veteran Don Albright to the team, bringing a wealth of knowledge and experience in leadership and capital markets. The following year, Foundry strategically acquired local real estate firm OakPoint, and with it, founding partner Rick Helton who has a 25+ year career in investment sales. Next, Ally Lanahan was added to the IAG team having started her brokerage career with OakPoint after previously spending 10+ years in sales and marketing with Conde Nast and NeueHouse in New York City. Jessica Laura then joined Foundry as a Marketing Coordinator for the Nashville office, and has played a crucial role in supporting the Nashville office as a whole as well as the IAG team. In spring of 2020, the team added W.B. Scoggin, who relocated from Dallas, TX and has 10+ years of commercial real estate experience focusing on investment and developments in the multifamily, urban infill land, retail, and hospitality sectors. The most recent member to round out the team is Lucas McIntosh, who joined as senior financial analyst with three years of experience performing investment analysis with Montecito Medical Real Estate and Healthcare Realty Trust. Together, this five-person team has grown its reputation throughout 34

the Foundry platform and beyond, offering truly unmatched experience and outstanding results by advising on investments of any size in any location. Investment sales is a unique service line within the Foundry platform. It involves more than simply listing multi-tenant, income-producing properties with the goal of maximizing an asset’s value at the time of sale. Investment sales services takes into consideration the entire life cycle of a real estate investment. The IAG team is able to provide a client with strategic investment advice from the initial acquisition of an asset through to the end of a holding period. During the ULTIMATELY, THE NO-SILOS APPROACH AT FOUNDRY PROVIDES MORE VALUE TO OUR CLIENTS AND STRENGTHENS OUR RELATIONSHIPS BOTH INTERNALLY AND EXTERNALLY.

ownership period, IAG can provide clients with annual property valuations through BOVs (broker opinions of value). These detailed BOVs include 5- and 10-year discounted cash flow analysis, financing assumptions, and market comparable data. The team can also stress-test an asset, provide multi-scenario analysis, and complete an operating expense audit. The goal is to give the client a comprehensive understanding of their asset and help them make important strategic decisions about their investments. W I NN ING FOR CL IE N TS TO G E THER W ITH NO S ILOS One of the many ways that Foundry differentiates itself from other firms is its collaborative effort across the platform. We always put the needs of the client first, allowing us to share resources and services with teammates in other offices. Recently the Investment Advisory Group has been able to work with several team members across the platform to serve clients on the dispositions of assets, as well as provide valuable underwriting and market research for off-market opportunities. During 2020, Matt Messier, who leads the Religious, Education, and Not-forProfit Practice Group for the company, shared that he was assisting a client with a relocation out-of-state and reached out to the IAG to assist with the disposition of the client’s headquarters building in Colorado Springs, CO. The team was able to successfully bring the property to market, which led to multiple offers for the client to choose from. Ultimately, the client selected a purchaser whose offer included a beneficial occupancy period to help with their relocation, at an attractive price within the team’s original valuation of the property. Another recent opportunity came from Paige Bryant, Senior Associate on Foundry’s Retail Services team in the Carolinas. Paige is the leasing broker for a suburban retail center, and as the building was approaching stabilization through her success in leasing, the ownership group began to consider a sale of the property. Paige introduced her client to the IAG team, and the team was able to quickly produce an opinion of value, which helped the client decide to list the property for sale at a specific, recommended price. In collaboration with the Charlotte retail team, the IAG built out a robust offering memorandum, and at the time of this writing, has placed a buyer under contract for this sale.

Jessica Laura Marketing Coordinator

The Nashville industrial market has seen an increase in demand as the population continues to grow and industrial users want to be closer to rooftops. Melissa Alexander, industrial broker for Foundry in Nashville, sourced an off-market opportunity for a 12.5-acre last-mile industrial site that was sure to garner strong interest from both local and nationwide investors. Melissa and the IAG were able to advise the owner on the property’s value using a combination of comparable sales and income investment analysis. Then the team used this underwriting data to solicit an offer from an institutional investor in California with a purchase price just over the original valuation. At the time of this writing, the parties are actively negotiating an LOI for the sale of the property.

Lucas McIntosh Analyst

Through the IAG team, the practice of investment sales is emerging as a vital service component that allows Foundry to serve clients during the entire life cycle of property ownership. In particular, the investment sales function integrates well with Foundry’s leasing and management services, with each service group enhancing each other’s capabilities. Ultimately, the nosilos approach at Foundry provides more value to our clients and strengthens our relationships both internally and externally.

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When Kevin Maddron joined Foundry Commercial in 2018, not only did he bring with him a dedication to the oversight of the firm’s financial operations, but also a wealth of experience in the development and management of projects in the seniors housing and healthcare services sectors. Data from the U.S. Census Bureau has long predicted the far-reaching impacts of the “Silver Tsunami,” a term being used to describe the mass movement of Baby Boomers – now entering their twilight years – into communities which better support their needs as they age. Case in point, the number of adults ages 85 and older, those often identified as needing higher levels of care or assistance, is expected to quadruple from 2000 to 2040. 36

Ryan Weekes Foundry Commercial Justin Younker and Doug Ellison Cascadia Senior Living Susan Foster Foster Senior Living Kevin Maddron Foundry Commercial John Foster Foster Senior Living Development & Investment Annual Event

In fact, according to reports by the Center for Medicare and Medicaid Services, spending on healthcare services is expected to grow in excess of 5 percent annually over the next five years to reach over $6 trillion by 2027. Likewise, as Baby Boomers continue to age, the industry expects demand for seniors housing to increase from 25,000 units of production per year (2015-2020) to 92,000 units per year (2025 to 2030). These supportive living environments will be in high demand as the number of elderly support persons will plummet from four to just two workers for every person age 65 and older by 2040. Upon joining Foundry, it was clear that an amazing opportunity existed to cultivate a healthcare and seniors housing platform to meet these growing needs. In preparation for this groundswell – and long before any of us had even heard of a virus called SARS-CoV-2 – the increased demand for medical office buildings, healthcare facilities more convenient to patients, and housing options for seniors was apparent. So, in 2019, Foundry launched its healthcare and seniors housing platform, with Maddron and Chris Mauth spearheading those efforts. Clients ranging from WakeMed Health and Hospitals in Raleigh, NC to Tribe513 in Greenville, SC, searching for a resource to vet and manage the real estate and development processes for their facilities, began to tap into the network and expertise of Foundry’s new platform. By June 2020 – in the middle of a global pandemic – Foundry announced a JV partnership with Foster Senior Living, forming FSL Senior Living Ventures, which acquires, develops, and manages seniors housing assets across the United States. In this arrangement, Foundry provides capital and transaction expertise for the JV partnership, while Foster Senior Living manages all day-to-day operations of the jointly owned and managed communities. The momentum continued. At the end of 2020, and then again within the next three months, FSL Senior Living Ventures and Fundamental Advisors partnered to acquire two additional seniors housing communities in Kansas City and Jacksonville Beach. This June, Foundry formed another JV partnership with Cascadia Senior Living, a leading seniors housing operator with 12 communities in Washington and Oregon. Like the relationship with Foster Senior Living, Foundry will assist with the sourcing of capital and investor reporting, while Cascadia will be responsible for day-to-day operations of the facilities. This partnership expands Foundry’s presence into the Pacific Northwest, adding 714 existing units to the seniors housing portfolio, with future expansion efforts already in the pipeline. This comes at a time when the healthcare and seniors housing industries are emerging from one of the most challenging years on record. As one might imagine, the number of new residents entering

facilities coming online, some just a few years too early for the wave of aging Baby Boomers who will soon occupy them. For Foundry, this scenario creates real estate opportunities, positioning Foundry’s operating platforms for continued growth in the sector. Given all of the opportunities in the immediate sight lines in the industry, Foundry’s healthcare and seniors housing team has grown quickly to keep pace with the amount of interest and activity in the market. In February, Jimmy Yu joined Foundry’s healthcare and senior living team as Vice President of Senior Living. Based in Tampa, Jimmy manages the platform’s senior living investments, while serving as the primary contact for operating and equity partners and assisting in acquisitions and due diligence. In addition, Ryan Weekes, a Senior Analyst in Foundry’s D&I group, has taken the lead within the Deal Hub on all healthcare investment underwriting. There are plans to add even more associates who will be specifically dedicated to healthcare and seniors housing in the coming months. During a year filled with uncertainty, the propulsion of Foundry’s healthcare and seniors housing platform remained a bright spot for the company, making it clear that unbridled growth and development opportunities would be on the horizon for many years to come and positioning the platform to be a part of the solution as the tidal wave of oncoming needs hits the shore.

independent living, assisted living, and skilled nursing facilities dropped dramatically during the pandemic. This timing also happened to coincide with many newly constructed 37

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This might sound cliché, but I’ve never worked for a company that truly cares about their people the way Foundry does. Jayleen Quinones, Accounting, Orlando Office

Check out more stories like Jayleen’s on our company Instagram page.

@foundrycommercial 38

THROUGH THICK & THIN CLIENT INTERVIEWS

SPECIAL THANKS TO THE FOLLOWING CLIENTS FOR TAKING THE TIME TO PARTICIPATE IN THIS ARTICLE

CHIP MEYERS Chief Financial Officer Insurance Office of America (IOA)

SUSAN SCHAEFER Vice President of Real Estate Lutheran Church Extension Fund (LCEF)

BRENDA WADLE Managing Director

tated front-and-center within Foundry’s guiding principles: “We take our associates’, clients’, and partners’ success personally.” As part of that commitment, we take a vested interest in their accomplishments, approaching the relationship as that of a partnership. Foundry’s clients have reiterated time after time that because Foundry assumes an active role on their team, they take comfort in knowing we are constantly looking out for their best interests. In 2020, when the world seemingly turned upside down, that partnership approach was more important than ever. We were fortunate to catch up with three long-time clients who sincerely value their relationships with Foundry, to get a glimpse into what has changed, what has remained constant, and how Foundry has been a part of their successes.

Principal Global Investors

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QUESTION #1:

WHAT WERE SOME OF THE KEY ELEMENTS OF YOUR BUSINESS OPERATIONS IMPACTED BY COVID-19, AND HOW DID YOUR ORGANIZATION RESPOND TO THE PANDEMIC?

QUESTION #2:

HOW LONG HAVE YOU WORKED WITH FOUNDRY COMMERCIAL, AND WHAT IS THE NATURE OF YOUR RELATIONSHIP WITH FOUNDRY?

QUESTION #3:

IN WHAT WAY(S) DID FOUNDRY SERVE YOUR ORGANIZATION DURING THE PAST YEAR?

MEYERS: Prior to COVID-19, our IT and operations teams were in the early stages of implementing the technologies necessary to be able to shift to a remote work environment. The spread of the pandemic served as the major determining factor and proving ground that many teammates could be effective in their roles working remotely. Long-term, due to the nature of their roles as well as several other personal factors, we are now better set up to allow some employees to continue working remotely as well as in hybrid scenarios. Also, like many businesses, we reforecast our expenses and revenue in light of the changing dynamics of the economy, but we were fortunate to still exceed many of those expectations as we closed out the year.

SCHAEFER: Foundry has been working with LCEF for over 20 years. Matt Messier did some loans work with us early on. I’ve been with LCEF for 19 of those years, so Foundry even pre-dates my work with the organization! Foundry provides national brokerage, asset management, consulting services, as well as property management not only for our properties throughout the country but also for our headquarters facility in St. Louis, MO, where we lease out approximately 60% of the building. Effective last August, we created a Real Estate Solutions Team at LCEF, and Foundry serves as our “bench strength.” This team includes LCEF CIO Rick Lauer and myself, along with Scott Renaud, Nick McKinney, and Matt Messier. The RES team truly understands the unique nature and requirements associated with religious-owned assets. Whether working with an individual church, district, or region, this team becomes an extension of their ministry and helps them best steward their entrusted assets. We love working with the Foundry Commercial team. What has always impressed me is that the Foundry team is always willing to roll up their sleeves, dig in, and help us figure out creative solutions. Foundry’s “It’s Personal” motto is really lived out; you walk alongside us, and we trust that you have our mission in mind first and foremost.

MEYERS: Gabe De Jesus has been fantastic throughout all this, providing us with a monthly report that we can share with our board that gives detailed updates on all of IOA’s locations that are coming up for renewals. Foundry has allowed IOA to approach our real estate more strategically, and Foundry is assisting us with negotiations, exits, and terminations. Gabe has jumped in to help us with anything we have going on; including helping to find a buyer for one of our properties in Ocala. Early in the pandemic, we were very impressed with how quickly Foundry assembled communications and we were able to coordinate a lot of those messages with our tenants and other internal parties. This coordination has really helped to streamline our process and has allowed us to close some gaps that had been happening before we engaged Foundry. I really want to reiterate how great this partnership has been; Gabe has been working day and night to support IOA, and we truly appreciate it.

SCHAEFER: Broadly, LCEF was very fortunate that our day-to-day operations could still be conducted virtually. The two of us who make up the Real Estate Solutions team had each worked remotely off and on over the years, so we were able to shift to a work-from-home model fairly seamlessly. In the last 10 years, LCEF – which acquires real estate through foreclosure or in lieu of foreclosure – has sold over $50 million in improved properties, leaving us with only seven unimproved properties at this time, which certainly was a blessing when we needed to halt all travel due to COVID-19. We work with Foundry in a number of ways, but one of those is property management services. With Foundry’s assistance, LCEF was prepared to walk through the challenges with the tenants in our building, providing guidance and applicable communications and tools as the needs arose.

WADLE: We have been working with Foundry approximately 7 years, primarily on sourcing development deals. I truly enjoy working with Foundry Commercial. Everyone we work with is humble and hard-working. We always like to work with groups whose missions and goals align with ours, focused on driving the best returns possible while providing the highest quality service to our tenants and clients. We’ve also had the opportunity to work with Foundry on the property management side, and we really like how Foundry takes an ownership approach even in property management. Foundry’s associates manage the properties as if they owned them, taking pride in the properties and doing everything in their power to make sure both landlord and tenants are happy there.

WADLE: While we are primarily weighted toward industrial and multi-family properties, Principal owns many grocery-anchored retail centers, so helping to keep struggling tenants afloat became a major focus during the pandemic. While we typically spend a great deal of our time sourcing development deals and acquisitions, those production efforts were put on the backburner as we turned our attention to serving as a key resource to tenants throughout the country. As did many other companies, we shifted to a work-from-home model and halted all unnecessary travel. That inability to travel, though, forced us to rely heavily on our property managers and partners in the respective markets, making us really grateful for the wonderful PMs we work with at Foundry and beyond.

MEYERS: The Foundry – IOA relationship is longstanding. Foundry provides IOA with a comprehensive overview of all our leases, helping us to develop a strategic plan for our footprint and determining the best options and next-steps for our properties in the near- and longterm. Foundry serves as a strategic partner with IOA’s renewal negotiations. We work most closely with Gabe De Jesus.

FOUNDRY TAKES AN OWNERSHIP APPROACH.

SCHAEFER: Among the varied services that Foundry assists us with, LCEF works with Foundry for property management services, and our facilities team was greatly assisted by Scott Renaud and his team in preparing for pandemic-related needs in the building, including communication, signage, and configuration frameworks for the offices. Foundry’s expertise and guidance with our facilities team enabled our building to remain largely open with very little tenant interruption. Additionally, Foundry quickly assembled a step-by-step presentation and walked our tenants through the entire CARES Act loan process. The documents that Foundry created allowed them to easily navigate the CARES Act. We actually had no requests for rent relief, and we have not lost tenants due to the pandemic. Foundry also put together a document detailing the steps we’ve taken as a landlord to mitigate the spread of COVID-19 and worked closely with us to communicate all that we have been doing in this regard to tenants and employees. The level of knowledge and experience brought to the situation by the Foundry team was just amazing.

WADLE: Foundry has done a great job of procuring development deals during the past year, including a 567,000-square-foot lease signed at WestPark 85 at the end of 2020. Bill Simerville and his team put forth a Herculean effort to get that lease secured in just three months, and that was a huge development win across our platform.

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SERVE MONTH

d e e N e h t eed

SERVE MONTH

5.4

2021

ORLANDO

This year, Foundry served in our varying markets to help alleviate the food insecurity crisis facing many families in our communities.

4.29

S E C O N D H A RV E S T F O O D B A N K O F CENTRAL FLORIDA Foundry’s Orlando office split into two shifts to volunteer at Second Harvest Food Bank of Central Florida. While there, all of the associate volunteers were able to sort and package over 37,260 lbs. of food, which goes directly to anyone in the local community who needs food assistance.

5.5 TA M PA

METROP OLITAIN MINISTRIES

Foundry’s growing Tampa office served together at Metropolitan Ministries. While there, the team helped package eight entire pallets of boxes, which amounted to 6,400 lbs. of food that will be donated to local recipients.

SOUTH FLORIDA

F E E D I N G S O U T H F LO R I D A

Kicking off Serve Month at Feeding South Florida, Foundry’s South Florida team helped sort and package over 14,300 lbs. of food, which translates to 13,000 meals. 42

5.6

5.19 AT L A N TA

FOOD WELL ALLIANCE

Taking things into the great outdoors! The Atlanta office served at Food Well Alliance. In doing so, the team worked together to prep community garden beds that directly provide for local food pantries.

JACKSONVILLE

FEEDING NORTHEAST FLORIDA

Moving North! The Jacksonville office helped sort and package 7,700 lbs. of potatoes at Feeding Northeast Florida. That’s a lot of spuds, directly benefiting the local community!

5.21

NASHVILLE

SECOND HARVEST FOOD BANK

6.2

5.13

RALEIGH

DALLAS

FOOD BANK OF CENTRAL AND EASTERN NORTH CAROLINA

NORTH TEXAS FOOD BANK The Dallas office served at North Texas Food Bank. While there, they helped bag 4,158 lbs. of meal packs, which roughly equated to 3,465 meals for local children in need.

The Nashville office served at Second Harvest Food Bank of Middle Tennessee. They helped sort and package over 4,300 lbs. of food for the local community in need.

6.3

CHARLOTTE

A zucchini a day keeps the doctor away! Or something like that. Foundry’s Raleigh office helped sort and package over 15,000 lbs. of zucchini, which is estimated to provide up to 12,500 meals for those in the community who need access to fresh fruits and vegetables.

SECOND HARVEST FOOD BANK OF METROLINA Foundry has had a long-standing relationship with Second Harvest Food Bank. Marking our third volunteer stop this year in coordination with Second Harvest, the Charlotte team served at the Metrolina location. They helped sort and package over 30,000 lbs. of food and hygiene items for the local community in need.

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CULTURE 01. Baby Marshall

12. They’re Married

Don Albright from the Nashville office welcomed his seventh grandchild and third grandson in the family. Donald James Marshall was born on June 21.

Wesley Nunnery from the Orlando office proposed on November 8. The happy couple were married on May 8.

02. Orlando Cloggers Michele Hochreiter from the Orlando office performed with the Orlando Cloggers at the Osceola County Fair on February 20.

03. Baby Hartung Brett Hartung and wife, Marla, from the Orlando office welcomed their son Denver Lawrence Hartung on May 14.

04. Baby Mattox James Mattox from the Raleigh office welcomed daughter, Margaret “Miller”, into the family on July 28.

05. Baby Jones Jennifer Jones and husband, Luke, from the Tampa office welcomed their daughter, Eliana Marie Jones on June 4.

13. The Maldonado Clan Maria Maldonado from the Orlando office and her husband Bill had their second granddaughter, Mila Rae, born on February 17.

14. Baby Betz Jordan Betz from the Raleigh office had his second child, Stella on December 18.

15. Baby Camp Jordan Camp from the Atlanta office welcomed son, Thomas Charles Camp, into the world on November 19.

16. Baby Guinard Alana Guinard from the Orlando office had her baby, Heidi, on February 2.

17. They’re Engaged

Ankoor Jivan and wife, Anika, from the Atlanta office had a daughter, Keira Shana Jivan, on March 3.

Claire Bennet from the Charlotte office met her fiancé, Mike Devon, on a blind date at a baseball game so he surprised her and purposed in Romare Bearden park (right next to the baseball stadium).

07. Giving Back

18. They’re Engaged

Over the holidays the Raleigh office collected donations to purchase personalized tumblers for nurses on the Covid Unit at WakeMed Hospital.

Shelby Hall from the Nashville office proposed to his girlfriend, Lindsey, in her hometown of Shreveport, LA out on a farm that their family has.

08. Easter Surprise

19. They’re Married

Maria Maldonado from the Orlando office dressed up as the Easter Bunny to surprise her grandkids.

Adna Rubio from the Raleigh office married Malik Daniel on March 20.

06. Baby Jivan

09. Baby Sundberg Cody Sunderg from the Charlotte office had a son Jack Sundberg on February 12, weighing in at 8lbs, 21”.

10. They’re Engaged Brian Howell from the Atlanta office proposed to fiancé, Jenna, on February 12. They got engaged at home then celebrated with friends and family at a brewery.

11. They’re Married Haley Bowan from the Charlotte office got married in Negril, Jamaica! The couple originally planned a June 2021 wedding in Charleston, SC, but with the uncertainty of events surrounding the pandemic, they decided to elope.

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20. A Furry Friend Carlin Beekman from the Orlando office and her husband, Michael, brought a cute kitty into their family in Dec 2020 named Oslo.

21. Baby Haines Andy Head from the Atlanta office welcomed son, Andres “Haines”, into the world on August 27.

22. They’re Engaged Emily Giordano from the Charlotte office got engaged to fiancé, Bobby, in August of 2020.

23. Grandson Giggles Yadira Gonzalez from the South Florida office welcomed grandson, Elias, into the family with lots of smiles!

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FOUNDRY UNITED ISSUE 10

Charlotte Office serving at Second Harvest of Metrolina Charlotte, NC 47

KEEP TRUCKIN’

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