MANN REPORT SEPTEMBER 2024

RXR

THE EVOLUTION OF SMART CITIES: TRANSFORMING URBAN LIFE A PROPTECH CRYSTAL BALL: MOSTLY MEASURED A NEW WAY TO THINK ABOUT MIXED-USE DEVELOPMENT

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National Jewish Health

Honorary Chair

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National

Larry A. Silverstein

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TODAY’S MARKETS MOVE MORE QUICKLY THAN EVER.

Meridian’s national dominance in multifamily financing gives us a unique vantage point from which to approach markets on our clients’ behalf. By leveraging our 30+ year relationships and depth of experience, we are able to see what others can’t and produce exceptional outcomes — especially in turbulent markets. Remain informed and be agile with Meridian.

EDITORIAL

Editor

Debra Hazel

Associate Editor

Alex Baumbusch

Director of Communications and Marketing

Penelope Herrera

Director of

Newsletter Division

Cheri Phillips

PRESIDENT/CEO

Jeff Mann

ART

Art Director

Serena Bhullar

Graphic Designer

Madi McCreesh

Cover Photography RXR

CONTRIBUTORS

Frank DeLucia

Stephen Gilman

Wayne Greenwald

Lee Hoffman

Kris Kiser

Erin McDannald

John Payne

Robert Rahmanian

Paul Roberts

Carol A. Sigmond

Bill Wilhelm

Ebby Zachariah

Technology Consultant

Joshua Fried

Distribution

Mitchell’s Delivery Service

DIGITAL MEDIA

Designers

Serena Bhullar

Madi McCreesh

Editors

Alexandra Baumbusch

Natalia Finnis-Smart

Debra Hazel

Penelope Herrera

Cheri Phillips

Web Developer

CS Designworks

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ONE MANN’S OPINION

As an owner, operator and investor, RXR has been a leader in New York real estate for many years, so it’s a thrill to have them on our cover this month, especially when we’re featuring an innovative new devel opment at 89 Dekalb. This new, all-electric building will show everyone how to comply with New York City’s local laws, and we’re excited for the new future they’re helping to build.

This issue is all about how future technology can help create better buildings in New York City and around the world. And helping to make New York an even better place to live and work is the goal of the National Realty Club Foundation. There are still tickets available to our autumn NRC Foundation Golf Outing, set for October 7 at the Fresh Meadow Country Club. Funds raised will be donated to causes that benefit our beloved city.

We’re delighted to be honoring Mark R. DeFazio, president, CEO and a founder of Metropolitan Bank Holding Corp. and Metropolitan Commercial Bank and Daniel Vitulli, a partner in Marcum LLP’s New York office and national partner-in-charge of its real estate group. Our Humanitarian Award will be be stowed upon Mark F. Engel, CEO of Langsam Property Services Corp.

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

See you next month!

“Doing what you like it freedom. Liking what you do is happiness.” -Frank Tyger

Photo by Philip Smith, National Aquarium

Image courtesy of RXR

KNOW GREATER VALUE

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

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

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

Edward O’Connor, Partner 201.712.9800 eoconnor@pkfod.com

EDITOR’S

LETTER

As a graduate of Long Island University, I’ve followed its redevelopment — and the incredible transformation of Downtown Brooklyn — with interest and joy. So, it was truly wonderful to speak with RXR about its latest development, 89 Dekalb, which will add to the growing residential scene. And even more important (and appropriate for this, our Proptech Issue), this all-electric building will set a standard for all buildings to come.

Also take a look at how technology is changing the parking experience and reinventing urban living, and how some leaders in the space see the future, as the booming, Wild West years of proptech growth give way to more practical solutions.

And as always, our columnists offer words of wisdom, this month on such diverse topics as debt cancellation, bankruptcy law, preparing our buildings for climate change, conducting renovations and more.

I’ll be at Blueprint in Las Vegas later this month — if you are, too, let’s talk about how you’re seeing the future!

Ariel Property Advisors Hosts Coffee & Cap Rates Event

Photos by Marko Tatarac, Ariel Property Advisors

Ariel Property Advisors presented its mid-year Coffee & Cap Rates event, sharing the latest trends in investment sales market and capital services in New York City with more than 200 real estate professionals. The event was hosted by TD Bank and held at its conference center at One Vanderbilt, across from Grand Central Terminal.

The theme of the latest gathering was “Visions for Future Growth in NYC Commercial Real Estate,” and featured a panel of industry professionals sharing their perspectives on the commercial real estate investment and development markets, including an exploration of New York State’s recently approved housing policy.

Shimon Shkury, president and founder of Ariel Property Advisors, moderated the panel and kicked off the event with a presentation discussing the performance of the New York City investment sales market in the first half of 2024 as well as key findings from the firm’s recently completed half-year reports.

The three industry expert panelists included Ralph Bumbaca, New York City market president, TD Bank; Christopher V. Albanese, president, Albanese Organization and Jasper Wu, vice president, ZD Jasper. Each provided a unique take on the state of New York City commercial real estate.

As with previous Coffee & Cap Rates, Ariel will donate all proceeds of this event to Legal Outreach, a nonprofit that helps young people from underserved New York communities gain admission to the country’s most competitive colleges and universities.

The Coffee & Cap Rates series is a semi-annual program; the next event will take place in February 2025.

More than 200 real estate professionals attended

The Ariel Property Advisors’ team

Stephen Vorvolakos, Lawrence Sarn, Jake Brody and Jason Gold, Ariel Property Advisors.

Ralph Bumbaca, TD Bank

Ralph Bumbaca, TD Bank and Michael Stoler, Stoler Report.

Christopher V. Albanese, Albanese Organization

Speakers Ralph Bumbaca, TD Bank; Christopher V. Albanese, Albanese Organization; Tamika Edwards, Legal Outreach; Jasper Wu, ZD Jasper and Shimon Shkury, Ariel Property Advisors

Adam Pollack, Ivan Petrovic and Paul McCormick, Ariel Property Advisors

Sean Kelly, Ariel Property Advisors and Tyng Patka, Adler & Stachenfeld LLP chat with Christopher V. Albanese, Albanese Organization

Paul Monaco, Erik Maloney, Karyanne Campbell and Waliya Ahmed, Ariel Property Advisors.

Shimon Shkury gives a market overview.

Jasper Wu, ZD Jasper

SMPS-NY Hosts 40th Annual Liberty Ball

PHOTOS BY FRAME STUDIOS

The Society for Marketing Professional Services New York (SMPS-NY) announced the winners of the Marketing Communications Awards (MCAs) and the Professional Achievement Awards (PAAs) at the 40th annual Liberty Ball at Dear Irving on Hudson in Manhattan. The grand celebration honored excellence in marketing communications among architecture, engineering and construction (AEC) firms and professionals. The long-standing awards program recognizes excellence in marketing communications and honors visionaries shaping the marketing landscape. An esteemed panel of industry leaders evaluated entries based on creativity, strategy, execution and measurable results.

The Marketing Communications Award of Excellence recipients included the following winners: STO Building Group, honored for both its Website and Social Media; KPF in the Video category; STV for Corporate Identity and Promotional Campaign; MdeAS for Direct-Mail Campaign and Newsletter and WB Engineers+Consultants in the Special Announcement category.

The Professional Achievement Awards recognized Katherine James, CPSM, LEED GA, of Jacobs as Vanguard of the Year; Marisa Maguire of STO Building Group as Marketer of the Year and Melissa Krenek-Whitman, Pricewaterhouse Coopers as Rising Star. The Peoples Choice Award was presented to The Berman Group, and the Mary Findlen Professional Development

Scholarship was bestowed upon Natalie Molina.

The MCA Merit Award was presented to the following firms: Turner & Townsend (Website); STO Building Group (Video), The Berman Group (Corporate Identity), WB Engineers+Consutants (Promotional Campaign and KPF (Newsletter).

SMPS-NY Director of Education Ivoire Lloyd was awarded Volunteer of the Year in memory of the late Pam Nugent, who served as the Chapter’s Director of Programs during the 2022-2023 chapter year. Immediate Past President Nathan Reyna received the Presidents Cup.

“As SMPS-NY celebrates four decades of service to the AEC industry, we are thrilled to recognize our members’ achievements through the MCAs and PAAs,” said Olivia S. Farquharson, president of SMPS-NY. “This year’s winners showcased exceptional talent and dedication to shaping the industry’s future. We are also proud to honor those who champion professional development and to highlight the graduates of our mentorship program.”

Sponsors of the event were OpenAsset, STO Building Group, STV, GEI Consultants Inc., Dragonfly AEC Consulting and ABC Imaging.

SMPS-NY President Olivia S. Farquharson and Volunteer of the Year Ivoire Lloyd, SMPS-NY Director of Education,

Immediate Past President Nathan Reyna and Julie Pampuch of award winner WB Engineers+Consultants

Ying Yang, Rosenthal & Rosenthal; Teresa Huang, Kulwant Kaur and Michelle Lin, CIT Commercial Services and Mennen Coleman, Rosenthal & Rosenthal

Tony Dang, Carmen Johnson and Kaitlyn Perez of award winner MdeAS Architect

Sarah Berman of award winner The Berman Group and guest

Olivia Farquharson with STV’s Erika Moshkovich, Justin Grundfast, Beth Miller, Aaron Jones, Staci Liu and Marcee Bernstein

Leslie McAllister, Michael V, Conor Schwenker, Sarah Lembo, Rebecca Leonardis, Kari Mullen, Nicole Marone and Megan Wojcik of award winner STO Building Group

Natasha Camarillo and Tony Dang, SMPS-NY

Olivia S. Farquharson SMPS-NY; Natalie Molina, recipient of the Mary Findlen Professional Development Scholarship and Cristiana Formica, SMPS-NY

Mann Charitable Foundation Hosts Annual Golf Outing

The Mann Charitable Foundation (MCF) hosted its 2024 Golf Outing at the Fresh Meadow Country Club. MCF raises awareness and donates to various charities that are fighting geriatric diseases including Alzheimer’s, macular degeneration, Crohn’s and colitis, liver disease and lymphoma.

This year’s honorees were Marc Grossman, leader, commercial services division, Wells Fargo Commercial Banking and Jamie Litvack, president and CEO, Bagatelle International Inc. Both were honored for their dominance and reputation in the apparel industry.

Leo Jacobs, Jeff Mann, Jeff Kirschenbaum and Sy Garfinkel

Standing: Peter Menna, Louis Barone and Michael Cipriani; Seated: Craig Miller, Josh Goodhart, Derek Sigler, Richard Stehl, Marc Federbush and Peter Pugliese

Marc Grossman, Jeff Mann and Jamie Litvack

Guest, Neil Wolfe, Grace Mak and Carolyn Raphael

Dan Goll, Tom Fingleton, Mike Hudgens and Jason Goldberg

John Coyle, Jamie Litvack, Matt Heslin and Frank Longo

Paul Wein, Eric Smiler, Serge Hoyda, Jacob Kravel and Marty Domnitch

Sandi Stumacher, Liza Diamond, Marty Domnitch, Bradley Diamond and Elliot Stumacher

Standing: Carl Gambino, Jamie Litvack and Tyler Williams

Seated: Charlie Rhee, Frank Cole and Dan Forman

SIAEA Hosts Annual Networking Cruise

The Society of Indo-American Engineers and Architects (SIAEA) hosted its Annual Networking Cruise, bringing together nearly 500 professionals. The evening boat cruise around Manhattan offered breathtaking views of the Statue of Liberty, while guests dined on Indian cuisine and danced to lively music.

Guest speakers sharing their expertise and support for the future of the industry included Gordon Tung, vice president, and Dean Johanson, chief project officer of the New York City School Construction Authority, and Sreoshy Banerjea, executive director of the New York City Public Design Commission. These speakers, leaving a lasting impact on all in attendance.

A highlight of the event was the recognition of honorees for their outstanding contributions to the community. This year’s honorees included: Hersh Parekh, deputy chief intergovernmental affairs, Port Authority of NY & NJ; Eric Alemany, senior director, supplier relations management, New York Power Authority; Nishant Shah, senior program manager, Gannett Fleming; Mark Ebrahim, director, New York City School Construction Authority; Lourdes Zapata, chief diversity and inclusion officer, MTA; Kalpana Patel, CEO and president, Unique Comp Inc. and Jose B. Febrillet, chief diversity, equity and inclusion officer, Port Authority of NY & NJ.

Gold sponsors of the event were Eagle 1 Mechanical Inc., Forte Construction Corp., Litehouse Builders Inc., Maven Construction Corp., Metro Fab, P&K Contracting Inc. and Unique Comp, Inc. Silver sponsors were ABC Construction Contracting Inc., Jacobs, Port Authority of NY & NJ and RJS Security Services. Bronze sponsors were Advantage Building Supply, AKM Construction Services, Apex Business Solutions, Ashnu International Corporation, Bravo Inc., Clean Perfect Janitorial, Intercontinental Construction Contracting Inc., J Stone Builders, JS Development Group, KeRi Engineering PC, KG Construction, Monpat Construction Inc., National Environmental Safety Company Inc., Nehal Contracting Inc., Rekhi Law Offices, Sitaras & Associates, Stellar Drones and White Rock Construction.

PHOTOS BY HITESH (TINU) BHATT

Amil Patel, Society of Indo-American Engineers & Architects with Silver sponsor The Port Authority of New York & New Jersey’s Jose Febrillet, Tobi Mettle and Hersh Parekh; Nayan Parikh, Ashnu International; Joann Spirito, The Port Authority of New York & New Jersey and guest.

All aboard

Sponsors received plaques

Avinash Chauhan, Avi MEP Consultants (second from right) and Chitra Radin, Radin Consulting (far right) greet guests

Amil Patel, Society of Indo-American Engineers & Architects; Mihir Patel, Monpat Construction Inc.; Guest; Ketan Shah, Intercontinental Construction Contracting Inc.; Heman Patel, East Penn Imaging and Ishan Shah and Nihal Shah, Intercontinental Construction Contracting Inc.

Heman Patel, East Penn Imaging; Yogesh Mistry, Mistry Design; Nimesh Shah, Superstructures; Bony Parikh, New York International Builders Corp. and Tejas Desai, Tri-State Light & Energy Inc.

Mitul Patel, KeRi Engineering; Sreoshy Banerjea, NYC Public Design Commission; Nayan Parikh, Ashnu International and Amil Patel, Society of Indo-American Engineers & Architects

Amil Patel, Society of Indo-American Engineers & Architects; Nayan Parikh, Ashnu International and Dean Johanson, New York City School Construction Authority

Amil Patel, Society of Indo-American Engineers & Architects with Shereef Zubi, Ferdinand Hernandez and Pothanamathya Vangala of Gold Sponsor Forte Construction Corp.

Daiwa Capital Markets America Inc. Takes 44,100SF at 1251 Avenue of the Americas

In a positive sign for the Midtown office market, financial services company Daiwa Capital Markets America Inc. (DCMA) and Mitsui Fudosan America (MFA) announced that DCMA has signed a 20-year lease for 44,100 square feet spanning the 49th floor of 1251 Avenue of the Americas. DCMA will relocate its New York headquarters from the Financial District.

“We are excited to mark our 60th anniversary as a registered brokerdealer in the U.S. in 2025 with a relocation to a new state-of-the-art office space in the heart of Midtown,” said DCMA Chairman and CEO Keiji Machida. “This investment is part of our commitment to providing our clients with the best possible service, and I am confident that it will help us achieve even greater success in the years to come.”

The design of DCMA’s new U.S. headquarters promotes collaboration and in-person relationship building to maximize the benefits of hybrid work. DCMA will introduce a hoteling concept into the design along with high-tech, user-friendly solutions so employees can work seamlessly in both the office and virtual environments.

The new office design will demonstrate DCMA’s commitment to sustainability by integrating energy-efficient features, and to promoting health and well-being through the pursuit of Well Certification, it said.

“We’ve had a unique opportunity over the past few years to study how our people work,” said DCMA CAO Brian McQuade. “The new office space is built on those findings, with a core focus on flexibility, collaboration space and state-of-the-art technology.”

MFA is currently wrapping up construction of a tenant-only conference facility at 1251 Avenue of the Americas. The freshly renovated lobby, complete with modern elevators, will feature three new restaurant offerings that are scheduled to open shortly.

2 Times Square Retail Condo Sells for $100M

Sherwood Equities has sold the retail condominium at 2 Times Square to South Korea’s Bando Construction for $100 million, announced Newmark. The 25,000-square-foot retail space, located at the northern anchor of the Times Square Bowtie at Seventh Avenue and 48th Street, sold for nearly $3,900 per square foot. Newmark’s Co-head of U.S. Capital Markets Adam Spies, Executive Vice Chairman Adam Doneger, Executive Managing Director Avery Silverstein, Executive Vice Chairman Marcella Fasulo and Associate Director Meaghan Philbin facilitated the transaction on behalf of Sherwood Equities.

“There is no retail environment as exciting as Times Square, with a constant flow of tourists from around the world,” said Jonny Snider of Sherwood Equities. Other Sherwood Equities projects in the district include 1600 Broadway and 1 Times Square, home of the New Year’s Eve ball drop.

2 Times Square is anchored by the flagship and highest-grossing branch of Olive Garden, a staple at the property for over 20 years. The retail condominium boasts other notable tenants, including Van Leeuwen’s, Lids and Max Brenner. The location attracts over 340,000 pedestrians daily.

2 Times Square is a mixed-use asset featuring retail, hospitality and signage components. In October 2023, the hotel portion of the property was sold to Newbond and Apollo for $165 million. Times Square remains a powerhouse of economic activity, directly responsible for

$74 billion in economic output and accounting for 5% of New York City’s economy and 12% of its total employment despite comprising just 0.1% of its land area, Newmark said.

Newmark’s David Falk and Peter Shimkin represented MFA. DCMA was represented by Savills’ Erik Schmall and Scott Weiss.

Photo via PRNewswire

Photo courtesy of Newmark

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Cityview, Wafra Acquire Newly Built 221-Unit Multifamily Project

Multifamily investment management and development firm Cityview and global alternative investment firm Wafra have acquired Silva, a newly constructed 221-unit, Class A multifamily community at 235 North Hoover St. in the Silver Lake neighborhood of northeast Los Angeles. Situated on a hilltop that provides 360-degree views of the city, Silva is the first institutional grade multifamily asset of its size delivered in the Silver Lake/Echo Park neighborhoods.

Silva is currently unleased and recently achieved its Temporary Certificate of Occupancy. Cityview and Wafra will lease up the community as construction is finalized and a Certificate of Occupancy is obtained.

“Silva is a rare opportunity to acquire a newly constructed Class A property in one of Los Angeles’ most desired and centrally located submarkets,” said Sean Burton, CEO of Cityview. “Cityview has delivered and leased up three other development projects near the area over the past year, giving us deep market knowledge and experienced on-site teams that ideally position us to lease up and manage the community alongside Wafra, a trusted partner of Cityview.”

Silva features top-of-the-line amenities including a sky lounge that offers coworking space and a large deck with panoramic views, a resort-style pool and spa overlooking the Hollywood sign, a club room with arcade games and a private screening room and programmatic outdoor space. A double-height fitness center features storefront glass on two sides, while outdoor dining areas with firepits and barbecues are scattered throughout the property. Additional amenities include a dog run and green space, secure storage areas and EV charging stations.

“Silva represents a unique opportunity to acquire a high-quality asset

at a material discount to replacement cost in a market that has some of the nation’s highest barriers to home ownership and is chronically underserved by rental apartments,” said David Hamm, head of real estate at Wafra. “We are excited to partner on this transaction with the highly talented and respected team at Cityview.”

The community offers expansive studio, one-, two- and three-bedroom floor plans with elevated interior finishes including nine-foot ceilings and floor-to-ceiling windows that highlight views of Downtown Los Angeles, Griffith Park Observatory and the Santa Monica mountains. The project’s designer kitchens feature quartz countertops, highend fixtures and appliances and full-height tile backsplashes. All floorplans include full-size, front-loading washer and dryers and smart thermostats. Most units offer large walk-in closets and private oversized balconies or patios. The units average 1,000 square feet, providing ample space for residents to work from home or entertain.

Newmark Arranges $300M Joint Venture Between Catalyst and Heitman

Newmark Group Inc. has arranged a strategic joint venture between Catalyst Healthcare Real Estate, a U.S. healthcare real estate development and investment firm, and Heitman, a $50 billion real estate investment management firm. Newmark also helped secure $300 million for the venture to fund the development pipeline of purposebuilt healthcare properties, including medical outpatient buildings, orthopedic centers and inpatient rehabilitation facilities.

“Catalyst works in partnership with its clients to design comprehensive real estate solutions that best support their mission, vision and values of providing better access to care, higher quality outcomes and lasting relationships,” said Chad Henderson, founder/CEO and managing partner of Catalyst Healthcare Real Estate.

The transaction was led by Newmark’s Healthcare Capital Markets Group Executive Managing Director Ben Appel, Senior Managing Director John Nero, Executive Managing Director Jay Miele, Senior Managing Director Michael Greeley and Associate Director Ron Ott.

“Catalyst prides itself on its people, its promise and the quality of its work,” said Appel in the announcement. “The firm has been recognized nationally for both its people, including CEO Chad Henderson, and for the quality of its developments.”

The initial phase includes funding seven ground-up or in-process developments totaling nearly 500,000 square feet, spanning five states

and encompassing blue chip tenants such as Ochsner Health, Andrews Medicine, University of Mississippi Medical Center and PAM Health.

“The joint venture with Catalyst is another significant milestone in Heitman’s 20-plus year history of investing in the medical office sector,” said Brian Pieracci, Heitman head of private equity, North America. “Medical office offers countercyclical qualities as a needsbased asset class, benefiting from secular demand drivers, including aging populations and migration of medical services out of hospitals and into outpatient settings. The properties in the Catalyst portfolio are attractive investments due to the high acuity and strategic uses in the buildings for its major health system tenants.”

Photo courtesy of Cityview`

Photo via Catalyst Healthcare Real Estate

Alina 20 Receives Temporary Certificate of Occupancy

El-Ad National Properties, an Elad Group company with a South Floridabased team, announced that the boutique, nine-story Alina 210, part of its Alina Residences phase two in downtown Boca Raton, Florida, received its temporary certificate of occupancy (TCO) ahead of schedule on July 26, 2024. Closings for Alina 210’s 30 move-in ready residences began in early August, with a selection of residences still available.

Alina 210 offers its residents 16,000 square feet of thoughtfully curated amenities, dedicated to only Alina 210’s residents. Exclusive amenities include a spa with dry sauna, aroma steam rooms, salon/treatment area, private locker rooms, state-of-the-art fitness facility and a bungalowstyle pool with poolside cabanas. Alina 210 residents will also have access to the amenities at Alina 200 and Alina 220.

“We are proud to announce that Alina 210 received its temporary certificate of occupancy ahead of schedule,” said Candace Jorritsma, vice president of sales and marketing for El-Ad National Properties. “This milestone is very meaningful to everyone on the team who has put so much time, care and effort into delivering this building to its future residents. We continue to have an assortment of move-in ready residences available, and our team looks forward to seeing Alina 210 residents enjoy their new home in downtown Boca Raton.”

Alina Residences is designed by Garcia Stromberg Architecture and Interior Design with construction by Moss Construction. Douglas Elliman Development Marketing is the exclusive sales team.

Alina phase two, which includes Alina 210 and Alina 220, is over 80% sold and features a variety of available residences and floorplans. When Alina 220 is delivered in late 2024, Alina Residences will be complete and comprise three nine-story buildings: Alina 200 (121 residences, which are completed, sold out and occupied), Alina 210 (30 residences, received TCO) and Alina 220 (152 residences, expected to be completed

in late 2024), for a total of 303 units.

Residences in the three towers range from one to four bedrooms and span 1,400 square feet to over 5,400 square feet, with many featuring dens and private terraces overlooking The Boca Raton golf course. Residences are complete with Gaggenau appliances, custom Italian cabinetry and porcelain flooring.

Alina residents enjoy a curated selection of upscale amenities across the sprawling campus including two private rooftop pools, his and hers spa facilities with dry saunas, steam rooms, treatment rooms and relaxation rooms, state-of-the-art fitness centers, a studio with a professional-level golf and sports simulator, fire pits, dedicated yoga areas, exquisitely appointed club rooms, a dog park and more

Marriott International Strengthens Leadership Position in Branded Residences, Announces Owner Recognition Platform

With plans to nearly double its existing footprint, Marriott International Inc. continues to expand its Marriott Branded Residences — and its offerings to its residence owners with the launch of Onvia, its newly integrated Owner recognition platform.

For nearly 25 years, Marriott International has offered whole-ownership, private branded residences that are consistent with the level of design and service experienced at its renowned hospitality offerings. Its portfolio of branded residences offers 16 distinct residential brands The company’s branded residence portfolio includes both co-located projects with a hotel of the same brand and standalone properties.

“Since Marriott opened its first branded residence property in 2000, we have seen the space continuously grow and evolve in exciting ways, expanding opportunities for developers, brands and residents,” said Dana Jacobsohn, Marriott International chief development officer, U.S. Luxury Brands & Global Mixed-Use. “With our wide-reaching brand portfolio, loyal customer base, and global recognition platform, we have not only created an exceptional product offering for prospective developers, but we are well-positioned for continued leadership in the segment.”

IIn July, Marriott announced the launch of Onvia, the company’s fully integrated and comprehensive residence owner recognition platform. The platform is designed to elevate experiences for residence owners.

“Onvia is designed to not only build on the current residence owner benefits, but also introduce a host of additional offerings that have been specifically tailored for Residence Owners,” said John Hearns, Marriott International senior vice president, global residential operations.

Elements of the program include elevated Marriott Bonvoy status for residence owners, preferred residence owner rates for select hotels within the global Marriott Bonvoy portfolio; special offerings and preferred access on voyages with The Ritz-Carlton Yacht Collection; exclusive offers on culinary experiences; a focus on wellness, including spa and treatment offerings and access to concierge service.

Photo via Elad Group

Photo via PRNewswire

Zillow: Lower Rates May Revive Housing Market competition

Competition for homes and price appreciation tapered off faster than normal in July as high housing costs continued to stymie shoppers, according to the Zillow’s August market report, but recent drops in mortgage rates should spur more competition into fall.

“If this relief from mortgage rates continues, we should see more buyers restarting their hunt for a home,” said Zillow Chief Economist Skylar Olsen. “But although rate lock among homeowners is easing, they probably won’t be as motivated to jump back into the market and sell. With housing inventory still scarce, this improved affordability picture could reignite competition and sales as we head into the fall, or at least delay the usual post-summer cooldown.”

Conditions vary by market. Among major markets, Denver, Pittsburgh, Indianapolis and Louisville lost their advantage for sellers and moved into neutral territory, while Orlando, Florida became buyer-friendly like the rest of the big Florida metros.

Homes are lingering on the market — even successful listings took almost a week longer to sell in July than last year. While that’s still five days faster than the average pace of sales in the years before the pandemic, it’s still a sign that buyers were much less eager to commit. Inventory accumulated further in July, and now stands nearly 25% above last year’s levels, marking the eighth straight month the year-over-year inventory gap has widened.

In an effort to win over cash-strapped buyers, home sellers again cut prices at record levels. More than 26% of homes on Zillow received a price cut in July, the highest share for any July since at least 2018, when the dataset began.

The cost disparity between renting and buying differs in every metro and even by neighborhood, Zillow acknowleged. But for those shoppers

on the edge of affordability — and who have enough cash on hand for a down payment — the significant drop in rates may offer enough relief to entice a move. The effect of a rate cut on mortgage payments is more significant in expensive areas.

Lower rates aren’t likely to encourage a comparable wave of current homeowners to sell, though. Zillow surveys show 80% of recent sellers were influenced by major life events, such as a change in their household size or working situation. New listings typically surge in spring and then taper off as homeowners aim to sell, buy another house and be moved in before school and the fall holidays begin.

Home value appreciation slowed to 2.8% year-over-year in July, but that could tick back up if the surge in demand outweighs an increase in supply, as expected.

Tampa tops list of most desirable u.s. cities, says clever real estate survey

Americans say Tampa is the most desirable city in the United Statewhile Florida is the most sought-after state, according to a survey from Clever Real Estate, a St. Louis-based real estate company. Nearly one in four survey respondents (23%) listed Tampa among their top five cities to live in, with its ranking rising from No. 10 in 2022 to No. 2 in 2023 before securing the top spot this year.

More than one-third (35%) of Americans say Florida is one of the top five states to live in, with three cities ranking in the top 10 metros: Tampa (No. 1), Orlando (No. 5), and Miami (No. 10).

Filling out the top 10 most desirable among the 50 most-populous U.S. metros were Charlotte, North Carolina (No. 2); Virginia Beach, Virginia (No. 3); Nashville (No. 4); Raleigh, North Carolina (No. 6); Atlanta (No. 7); Denver (No. 8) and Las Vegas (No. 9). Meanwhile, California, the most desirable state in 2023, fell to second place, with only 28% of respondents naming it among their top states.

Americans cited low crime rates (68%), affordable housing and living costs (66%), and good weather (62%) as key factors for a desirable place to live. On the other hand, high crime (73%), high housing and living costs (65%), and high taxes (62%) are major deterrents.

Perhaps not surprisingly, the 10 least desirable cities includes some of the nation’s most expensive. Washington, D.C., was named the least desirable for the second consecutive year, with 33% of respondents calling it one of the five worst cities to live in — up from 20% in 2023.

Following Washington were New York City; San Francisco; Chicago; Detroit; Los Angeles; Baltimore; Birmingham, Alabama; Atlanta and Buffalo, New York.

Photo via Unsplash

Founded over 30 years ago, Zetlin & De Chiara LLP is one of the nation’s leading construction law firms. Our attorneys deliver a full range of legal services centered around construction law throughout the United States and abroad.

Kirei Announces Partnership With ArtLifting

Kirei, a provider of sustainable acoustic design materials, has announced a partnership with ArtLifting. ArtLifting advances access to the art market by connecting artists impacted by disabilities and housing insecurity with socially conscious customers to create meaningful spaces and products. With ArtLifting and Kirei Ink custom printing, designers can specify innovative and socially impactful designs to deliver multi-function, purposeful artwork that inspires while it absorbs sound.

“We are thrilled to join forces with Kirei, an industry leader in sustainability,” said Liz Powers, co-founder and CEO of ArtLifting. “Teaming up with Kirei allows us to celebrate and elevate the creativity and diverse lived experiences of disabled artists on a grand scale. By creating custom-printed acoustic tiles, we are not only enhancing the sound environment but also bringing sound and art together to create welcoming and inclusive spaces. Together, we are setting a new standard for impactful design.”

ArtLifting is a Public Benefit Corporation and National Association of Women Business Owners-certified women’s business enterprise, creating economic opportunities through its “business for good” model. ArtLifting represents over 190 artists in 35 states. Artists earn 55% of profits from art sales and royalties directly. An additional 1% is contributed to the ArtLifting Community Impact Fund, which provides grants and support to art programs and individual artists.

“We are beyond excited to launch this partnership with ArtLifting; the

organization aligns with our company values not only by providing innovative and sustainable solutions to the architecture and design community but also by celebrating diversity and inclusion,” noted Dana Pucillo, vice president of acoustic solutions at Carnegie. “We cannot wait to see the talented visions of ArtLifting artists come to life while solving acoustic challenges in different environments.”

Kirei products are all made from 60% recycled post-consumer plastics. All of the products meet or exceed CDPH standards for VOCs and are Red List Free and Declare Label qualified/certified. The products are inherently Class A fire-rated, carry an Health Product Declaration and Environmental Product Declaration and qualify for LEED and WEll building credits.

Schneider Electrics: AI-Based Energy Platforms Speed Payback by 30 TIMES

Deep retrofits can improve energy efficiency, but the payback period can extend up to 30 years. In contrast, AI-based energy performance platforms can reduce this period to around one year, offering up to 30 times more efficient and economically viable solutions, said a newly released report on decarbonizing buildings through retrofitting from Vilnius, Lithuania-based Schneider Electric.

“Thirty-year payback period and reasonable solution are just two phrases that do not align. It is just too slow. If we look at the data for non-residential buildings, especially huge offices, they face significant challenges in achieving energy efficiency in old ways,” said Donatas Karčiauskas, CEO of Exergio, a company that develops AI-based solutions for buildings’ energy performance. “We already have solutions with payback periods of just a few years, so classical retrofitting is just not the right fit.”

The “Decarbonizing Buildings to the Benefits of Consumers and System Operators” report includes a comprehensive analysis of payback periods for both residential and non-residential buildings across different continents. Considering non-residential stock, the analysis consists of large offices, hospitals, small hotels, secondary schools and strip malls, for both new constructions and old buildings.

Overall, it showcases that deep renovation payback periods for old buildings stretch up to 30 years. The longest periods are projected for large office buildings worldwide, where southern and northeastern USA, Canada, Eastern China and Europe (particularly France, Italy, Denmark and Spain) should be at most concern.

“Managing energy systems in large office buildings, where data from thousands of meters must be analyzed continuously, is unique and

extra challenging. It requires adapting to dynamic conditions both inside and outside the building,” Karčiauskas explained. “AI tools can predict optimal settings to ensure efficient operation.”

For instance, AI-based energy performance platforms can adjust heating and cooling systems based on real-time data, reducing energy use in unoccupied areas and optimizing it before peak times. This maintains comfort for end-users while reducing energy waste up to 20%. AI-based platforms have a payback period of one to three years.

Previous use cases of Exergio’s solutions demonstrate significant savings. For instance, in Poznan, Poland, buildings equipped with Exergio’s AI platform achieved 20% reductions in energy waste, translating to financial savings of €80,000 in nine months.

NanaWall Reintroduces Generation 4 Folding Glass Walls as a Full Family

Opening glass wall technology maker NanaWall has completed its latest product family, Generation 4, which combines sleek design with superior performance for both residential and commercial projects, from exterior to interior applications.

The Generation 4 product family, available in aluminum, wood and clad frames, boasts ultra-thin profiles at less than 2 inches, which allows it to blur the lines between indoors and outdoors while maintaining energy efficiency. FourFold and SixFold panel sets offer flexibility and width, with systems capable of spanning over 100 feet. This allows for unlimited opening widths with floating panels unattached to the side jamb that can stack to the left, right, or center of the opening.

“Building on decades of innovation, we are immensely proud to complete the Generation 4 family, which embodies our commitment to industry-leading design,” said Ebrahim Nana, president and CEO of NanaWall. “Within Generation 4, you will find a product that offers a solution for any project, ensuring customers can achieve their design and performance goals with ease.”

The Generation 4 product line features turnkey design elements, offering beautiful aesthetics and nearly unlimited customization across different materials and configurations. The collection is made up of eight systems of varying heights and widths of aluminum or wood. A Gothic Arch Roller allows these folding glass walls to transform spaces easily, enabling up to 90% of an opening to be usable, a significant improvement over traditional sliders, the company said. Independently tested, Generation 4 systems are certified for air, water, structural,

Photo Courtesy of Nanawall

operation, acoustics and forced entry performance.

Additional benefits include: low profile sills, one of which is ADAcompliant; concealed cabling; exclusive Bionic Turtle Technology that provides an insulating thermal break within the frame and a tested structural integrity up to 20,000 cycles.

Terramont Infrastructure Partners Invests in Long Island Waste Services

Long Island Waste Services (LIWS) announced that it has completed a recapitalization transaction with a significant equity investment from Terramont Infrastructure Partners, a North American middle market-focused infrastructure investment firm. Founded in 2020, LIWS’ comprehensive services encompass efficient waste collection, state-of-the-art transfer stations, materials recovery facility and environmentally responsible disposal. LIWS specializes in materials processing and commodities recycling where various recyclables such as cardboard, paper, metals and construction materials are recovered for resale or alternatives applications.

“We have invested significant capital into the LIWS platform, and the company is now well positioned for continued growth,” said Anthony Avellino, LIWS president and CEO. “We are excited to be entering the next stage of our development with Terramont and Dickson Suit of Environmental Services Investors (ESI), who acted as our advisor throughout the transaction.”

LIWS, a locally owned and operated company located on Long Island, New York, provides solid waste solutions to commercial, residential and industrial customers.

“Terramont has been following the waste management industry very closely for the past few years and we admire the tremendous success LIWS has had in such a short period of time,” Chris Pih, partner at Terramont, which is focused on companies that are critical to the economy and which seek to make a positive, measurable sustainability impact. Investment sectors include renewable power, sustainable energy, transportation, digital, environmental and other

infrastructure businesses. “Anthony and the LIWS team have done an incredible job in transforming LIWS into a state-of-the-art waste management company with the ability to collect and utilize real-time route data in order to efficiently manage all aspects of the business including pricing, transportation and disposal and personnel safety.”

Comerica Bank, Tecum Capital Partners and Patriot Capital provided debt financing for the transaction. K&L Gates LLP served as legal counsel to Terramont, and Certilman Balin Adler & Hyman LLP served as legal counsel to LIWS.

Land id Unleashes New Interface

Land id has launched a new and comprehensive property info card interface, further enhancing the way real estate professionals, landowners and the land-curious interact with property data nationwide.

The new Land id Property Info Card design provides a more intuitive entry for Land id users, the firm said, unlocking over 40 datasets, by highlighting the most-used and time-saving overlays into seven distinct tabs. Each tab on mobile, or desktop, will instantly launch a default set of data overlays when swiped, saving time trying to research each data point separately.

The overlay tabs are created by Land id to combine related data into logical groupings, prioritizing the most frequently used overlays: Overview, which displays property ownership details along with any user-enabled overlays; Water, which shows nearby bodies of water, floodplain visualizations, wetlands and water wells; Outdoors, which provides detailed insights into the surrounding landscape including elevation contours and public lands; Boundaries, which offers visual guides to land uses, city limits, school districts and opportunity zones helping users understand a variety of divisions; Soil, which delivers comprehensive soil information, including soil names, capabilities and susceptibilities; Infrastructure, which reveals insights on and beneath the map surface, including transmission lines, pipelines, substations, solar/wind farms and more and Nearby, which focuses on active housing developments, public lands and points of interest.

Each overlay section includes descriptions and legends (e.g., FEMA Floodplain, Airports, Land Use) to help users clearly understand the

data presented, making any research easy and efficient.

“Land id is working tirelessly to modernize real estate tools, data and ease of access,” said Edwin Tofslie, Land id chief design officer. “We want to make the lives of real estate professionals, land owners and even people that just love knowing about and interacting with land and natural resources easier … even fun.”

The Property Info Card is now available for all users on all platforms and will enable real estate professionals to save time and provide indepth property insights, faster than ever.

Land id provides interactive property mapping applications for multiple industries, including land, residential and commercial real estate brokerages, property appraisals and more.

One Click LCA and USGBC Partner to Drive Construction Decarbonization

One Click LCA, a provider of construction life-cycle assessment software, has forged a strategic commercial partnership with the U.S. Green Building Council (USGBC). This collaboration supports USGBC members by providing discounted access to One Click LCA software, offering educational opportunities and increasing outreach efforts to promote decarbonization across the construction industry in the U.S.

The construction industry plays a major role in global climate change, accounting for nearly 40% of yearly carbon emissions, according to the World Green Building Council. These emissions stem from both embodied and operational sources. Recently, the U.S. federal government has ramped up efforts to promote decarbonization in construction through various zero-carbon initiatives and climate standards, such as the Investing in America Agenda, the national definition of zero emissions buildings, and new emission standards to eliminate onsite fossil fuel usage in federal buildings by 2030.

This strategic partnership will enable USGBC members to leverage these federal programs by offering educational resources and discounted access to life-cycle assessment software tools.

“We are excited to partner with USGBC to offer their members discounted access to our software and to promote the adoption of sustainable practices in the construction industry,” said Simon Slater, North American business development manager at One Click LCA. “This collaboration will help us reach a wider audience and support more professionals in their efforts to reduce the carbon footprint of their projects.”

“Our new partnership with One Click LCA will greatly benefit our members by offering tools and resources that empower projects with the knowledge and skills to create more sustainable buildings and communities,” said Rhiannon Jacobsen, managing director, U.S. market transformation and development, USGBC.

The benefits of the partnership include: a joint commitment to sustainability, discounted software access and enhanced educational opportunities for USGBC members and enhanced outreach efforts to promote decarbonization within the construction industry.

Photo courtesy of One Click LCA

Photo via PRNewswire

FoxyAI, a producer of real estate visualization and property intelligence, announced a collaboration with auction.com, the online marketplace focused exclusively on the sale of bank-owned and foreclosure residential properties via online auctions and live auction events. This collaboration marks a significant advancement in the use of AI technology to optimize property marketing and enhance the overall real estate process, the companies said.

Auction.com will leverage FoxyAI’s Condition Score, Quality Score, Image Quality Score, Room Classification and Scene Classification models into its analytics platform. This integration aims to refine the accuracy of property listings and provide additional insight by precisely assessing the condition of properties. Additionally, this collaboration enables auction.com to analyze past sales data, identifying opportunities to improve their sale strategies.

“We are excited to work with Auction.com, a company that shares our focus and commitment to AI integration,” said Vin Vomero, CEO of FoxyAI. “Their dedication to test cutting edge technology to benefit their platform aligns perfectly with our mission at FoxyAI.”

The proprietary FoxyAI Condition Score analyzes property media and provides a condition assessment on a six-point scale, ranging from Brand New to Heavy Damage/Not Livable. The FoxyAI Quality Score analyzes property media and provides a quality assessment on a

FoxyAI Partners with Auction.com to Elevate Real Estate Auction Analytics Indigo Launches to Bring AI to Home Transactions

Indigo, the AI-powered home transaction platform, has launched in Charlotte, North Carolina, with real estate agents and teams from Compass, Keller Williams, eXp, Re/Max and more. More markets will be added in the coming months.

Indigo’s flagship offering, Home Checkout, elevates the industry from search portals to transaction platforms in order to bring unparalleled transparency to the market, the company said. Indigo’s Contracts AI and automation platform streamlines all communications, bidding and negotiations to deliver a transparent transaction experience for real estate agents, buyers and sellers.

In light of the landmark industry settlement to decouple commissions, a seismic shift in how agents work and engage with buyers and sellers is underway. Today, agents and their clients are experiencing major change, communication challenges and an existential fear of being left out of the new industry model. Indigo’s technology gives real estate professionals the power to lead the industry forward — bringing transparency, data intelligence and market-first offerings to their buyers and sellers.

Indigo’s AI automation converts dozens of forms, contracts and processes into connected, intelligent workflows to save time, reduce human error and make the process intuitive. With the ability to map, extract and connect contracts automatically, Indigo is able to surface real-time trends from commission to offers.

“As an independent platform, we help all market participants — real estate agents, buyers, and sellers — by facilitating an open, transparent home transaction. We believe this will be the new industry model. As the industry shifts from a search-centric to transactioncentric model, consumers and agents will demand a more accessible and intuitive experience,” said Shaival Shah, co-founder and CEO of Indigo. “To bring the new industry model to market, the information, real-time intelligence and decision-making capabilities must improve

six-point scale, ranging from Luxury to Basic. Both are based on the Uniform Appraisal Dataset scoring system used by Fannie Mae and Freddie Mac for underwriting.

The FoxyAI Image Quality Score scores image quality on a continuous one to six scale, with low scores for blurry or extremely close-up images. Images scoring below three are excluded from analytics, ensuring only high-quality images are used. The FoxyAI Room Classification detects room types for easy classification, organization and search from photos/ media. Lastly, the FoxyAI Scene Classification detects scene types for streamlined classification, organization and search from photos/media.

to facilitate the transparency the market deserves. It requires great technical firepower to reimagine the new experience and workflow infrastructure. Indigo’s proprietary AI models do just that — solving new and existing problems that were previously impossible. In service of a more modern, transparent experience, we’re confident this is where we should be doubling down.”

Indigo helps listing agents get the terms sellers want via listing Storefronts that communicate critical seller preferences, drive demand and collect and validate all offers. It helps buyers’ agents write compliant offers and agency contracts in seconds — from any device — with its Contracts AI-powered writing and validation. This gives buyers and sellers unprecedented transparency into seller desires, market demand and negotiations.

“As the real estate industry rapidly evolves, the demand for accurate, timely market data has become essential. Agents and clients now depend on data-driven insights to navigate the complexities of transactions and make informed decisions,” said Kourosh Sharifi, CFO of Re/Max Executive. “Indigo offers a cutting-edge platform that leverages AI to provide these crucial insights, positioning itself as a game changer in the industry.”

Ace Hardware Launches Elevate³ Ace Experiential Format

Ace Hardware announced a new experiential store concept, Elevate³ Ace, to roll out at new and existing stores over the next five years, supported with a $1 billion investment. The immersive store design, unveiled at a convention in Chicago celebrating Ace’s 100-year anniversary, marks a fundamental shift in the Ace store model, the company said.

The Elevate³ Ace store model will feature top and exclusive brands in a brand-immersive shopping environment that is unique to Ace.

“Elevate³ Ace is not just a new store format; it’s our vision to become famous for four things in the neighborhoods we serve — namely paint, power, backyards and barbecue and home preservation,” said John Venhuizen, Ace Hardware president and CEO. “We believe in the power of local, and this initiative strengthens our community ties by creating experiential spaces that are not only places to shop but also places to connect. Our neighbors will benefit from locally relevant, premium products, expert advice and immersive retail innovation.”

Key features of the Elevate³ Ace experiential store model include premium brand showrooms featuring names such as Weber, Traeger, Big Green Egg, Craftsman, DeWalt, Milwaukee, Ego and Stihl in unique displays; enhanced customer service; an outdoor environment with a live goods display and grilling space for demos and events with the goal of providing an aspirational backyard experience and new product assort-

ments and features.

“Over the next five years, Ace Hardware will invest over $1 billion in opening new stores and remodeling existing stores to better serve our neighbors,” added Venhuizen. “The Elevate Ace store model will be at the heart of this investment.”

Roll out will begin in limited locations this year.

Legence Acquires New York City-Based AMA Group for Strategic Partnership with CMTA

Legence, a Blackstone portfolio company and integrated provider of energy efficiency and sustainability solutions for the built environment, has acquired AMA Group, a New York City-based national engineering services firm. Over the next several months, AMA will integrate into CMTA, Legence’s largest mechanical, electrical and plumbing (MEP) engineering services portfolio company. This deal marks Legence’s first acquisition in New York City, a priority market with a growing focus on building decarbonization.

“By championing building efficiency today, we are dramatically improving the possibilities of a healthier and more sustainable tomorrow. CMTA and AMA Group are leaders in their respective fields, and joining the firms will further establish Legence as a trusted partner in built environment decarbonization,” said Jeff Sprau, CEO of Legence. “We’re always seeking partners with aligned talents and values. The synergies between AMA and CMTA — and the synergies this new team brings to Legence — will provide best-in-class services to customers seeking the most efficient solutions for their facilities.”

The acquisition will expand Legence’s footprint into New York City, enabling the company to better support building owners and operators in meeting the stringent energy reduction mandates of Local Laws 87 and 97. In addition to expanding Legence and CMTA’s MEP and technology engineering capabilities, AMA brings new expertise in acoustic, lighting and immersive audio-visual design.

Founded in 2000, AMA Group is a 250-person firm with offices in New York City, Los Angeles, Miami and Madison, New Jersey. The company has completed numerous large-scale educational, residential and commercial projects. It has extensive expertise in the design and construction management of media and production facilities

nationwide, including marquee headquarters projects for NFL Media in Inglewood, California; NBCU Sports in Stamford, Connecticut; Telemundo in Miami; Univision in Miami, Brokaw News Center in Los Angeles and Discovery CNN HBO in New York City.

“By adding AMA Group to our family, we gain exceptional engineering talent and a strong experienced leadership team with a reputation for excellence in the New York City market where decarbonization policies create a great opportunity for CMTA and Legence,” said Jimmy Benson, CEO of CMTA.

CMTA is a multi-service practice, offering a wide range of expertise to guide clients through energy-efficient, sustainable projects.

AEC Advisors, through its registered broker-dealer affiliate AEC Transaction Services LLC, was the exclusive financial advisor to AMA Consulting.

Photo via PR Newswire

ReAlpha Launches AI-Powered Real Estate Super App

It what it says marks a significant milestone in the company’s mission to bring the real estate industry to the digital era, ReAlpha Tech Corp., a real estate technology company developing and commercializing artificial intelligence (AI) technologies, has launched ReAlpha (previously known as Claire), a Super App for mobile devices.

The Super App brings an end-to-end, commission-free, real estate experience to users’ mobile devices in addition to its online version, combining Claire, ReAlpha’s generative-AI buyer’s agent, licensed human agent support and a suite of homebuying tools, which currently includes title and escrow agent services. The Super App is now available for download on iOS devices.

In connection with the launch, ReAlpha changed the name of the Super App from Claire to ReAlpha. Claire will remain as the generativeAI buyer’s agent that will be integrated within the Super App, while providing the same services it did for users utilizing the platform under its previous name. The Super App will continue to be available online in addition to its mobile app version.

This launch of the Super App was timed to coincide with the National Association of Realtors’ (NAR) settlement to eliminate the standard 6% sales commission when buying a home. The rule xhanges went into effect August 17, and ReAlpha said it believes that such changes will make its commission-free offering to be even more compelling for property buyers.

The Super App brings ReAlpha’s AI-powered capabilities to homebuyers, allowing users to search for and purchase homes through their mobile phone. Key features include commissionfree homebuying, in that the Super App does not charge buyer’s commission fees; Claire, an AI real estate agent available 24/7; AIgenerated search and recommendations as well as natural language search; AI document review and analysis and a team of human licensed real estate agents available on a no-cost and no-obligation

basis. All combine to create an end-to-end transaction experience.

Following its acquisition of Hyperfast, ReAlpha now offers integrated title services, allowing the Super App to offer those services directly to its users.

ReAlpha plans to expand the Super App’s capabilities to integrate every aspect of a standard homebuying process in this one platform by eventually providing mortgage brokerage services and home insurance to buyers utilizing the Super App, whether online or via mobile device.

“At ReAlpha, we know buying a home is the biggest and most important decision many people will ever make. We believe in leveraging AI to create a more personalized and supportive homebuying experience,” said Mike Logozzo, president and chief operating officer of ReAlpha. “The ReAlpha Super App is designed to provide homebuyers with all the tools and support they may need to find their dream home, at a great price and with the best experience, all from their mobile device.”

Wells Fargo enters agreement to Sell the Non-Agency Third-Party Servicing Segment of its CMS Business

Wells Fargo & Company has entered into a definitive agreement to sell the non-Agency third-party servicing segment of its Commercial Mortgage Servicing (CMS) business to Trimont. The transaction is expected to close in early 2025, subject to satisfaction of customary closing conditions. Wells Fargo will continue servicing Agency/ government-sponsored enterprise (GSE) loans and loans held on its balance sheet.

“This transaction is consistent with Wells Fargo’s strategy of focusing on businesses that are core to our consumer and corporate clients,” said Kara McShane, executive vice president and head of Wells Fargo Commercial Real Estate. “We remain committed to our market-leading commercial real estate (CRE) business, and we will continue to serve our clients with a broad suite of lending, advisory and capital markets capabilities while leveraging our franchise to grow our corporate and investment bank.”

“Trimont and Wells Fargo’s Commercial Mortgage Servicing are recognized experts in their respective areas of concentration. The businesses are highly complementary and combining them allows Trimont to provide a unique and comprehensive service offering to the increasingly sophisticated CRE lending market,” said Bill Sexton, CEO of Trimont. “We look forward to welcoming the team from Wells Fargo

and working with them to capitalize on our strengths as we continue to deliver superior service and value to the clients of both businesses.”

Trimont, headquartered in Atlanta is a specialized global commercial real estate loan servicer and advisor, supporting lenders in the deployment, management and administration of commercial real estate secured credit.

Wells Fargo Securities LLC served as exclusive financial advisor to Wells Fargo and Wachtell, Lipton, Rosen and Katz served as legal advisor to Wells Fargo.

Photo courtesy of Wells Fargo

ANNUAL GOLF OUTING

OC TOBER 7, 2024

Itinerary

8:30 AM

Arrival and Registration 9:00 AM

Breakfast/Brunch

11:00 AM Call to Carts

11:15 AM (SHARP)

Shotgun S tart

5:00-6:00 PM

Hors D’oeuvres and Cocktails

6:00-7:00 PM

Dinner and Presentation of Golf Winners and Honorees

Tickets

GOLF

$850 per person

$3,400 per foursome

DINNER & COCKTAILS ONLY

$300 per person

Join us for the National Realty Club Foundation golf outing at the lovely Fresh Meadow Country Club in Lake Success, New York for a great day of golf, food, and networking.

The National Realty Club was founded 76 years ago by Harry Helmsley. Currently leading the charge has been Jeffrey Mann with the help of Robert Romanoff, Bob Knakal, Jamiee Nardiello, Gregg Schenker, Orin Wilf, Dean Palin, Jay Neveloff, Lou Switzer, Steven Sladkus, Michael Romer, Aaron Boyajian, and others. We are unifying individuals who can gain from one another as well as having a charitable arm to raise money to support NYC in areas that need help.

For more information, please contact penny@nationalrealtyclub.org

RXR USING TECH TO BUILD THE FUTURE OF BUILDING

By Debra Hazel

The August topping out of 89 Dekalb, the 30-story, 324-unit residential and academic tower on the Long Island University (LIU) campus in Downtown Brooklyn, was a symbol of continuing development both by the university and in the neighborhood. But even more significantly, as the first all-electric tower from developer RXR, it’s also a path for future building in New York City and elsewhere.

Situated at the intersection of Fort Greene and Downtown Brooklyn, 89 Dekalb is one of RXR’s most sustainable projects, featuring green design elements such as a fully electric power system, air source heat pumps and a smart glass façade. The project, designed by Perkins Eastman, is expected to welcome its first residents in Fall 2025.

“RXR has always looked for ways to improve our building and our efficiency. When you build in very dense areas, you need to think about that,” observed Rebecca D’Eloia, executive vice president, project executive for development at RXR. “We find it invigorating to find new and better ways to build.”

89 Dekalb will provide both affordable and market-rate housing along with state-of-the-art amenities and academic spaces for LIU. Consisting of studios, one-bedroom and two-bedroom units, the residential area includes 98 units designated for middle-income households under the nowexpired 421A program and offers nearly 15,000 square feet of interior and exterior amenity space.

Residents will enjoy 24-hour concierge service, co-working areas, a resident lounge, screening room, library, private dining room, indoor and covered outdoor fitness center and a spacious outdoor terrace.

The building in facts marks the second phase of RXR’s collaboration with LIU, a direct result of the resurgence of Downtown Brooklyn and the university’s long-standing embrace of the rest of its neighborhood.

Long Island University’s Brooklyn campus was founded in 1926, when the New York Board of Regents granted LIU a provisional charter. In recent years, the University, which had previously modestly expanded its buildings in a constrained 11-acre campus over decades, had undertaken a strategic analysis of its facilities and programs to grow its academic mission and accommodate more than 15,000 graduate and undergraduate students (as of 2022).

The revitalization of Downtown Brooklyn had begun in 2004, when the city, seeing that the neighborhood had

been struggling for decades, approved zoning changes that encouraged the creation of new residential, commercial, cultural and academic space. Since then, according to the Downtown Brooklyn Partnership, the district has seen more than 32 million square feet of new development. Construction spending has produced over $34 billion worth of economic impacts to the local economy, over 114,000 direct and indirect jobs and over $1.2 billion in fiscal impacts to New York City, the partnership reports.

“The university had been seeking ways to monetize the air rights above its buildings as the neighborhood changed around them, since the physical campus was planned as many institutions were in the 1960s and 1970s — as a campus turned inward,” D’Eloia said. “Around 2016, following the successes of the Downtown Brooklyn rezoning, they sought a private development partnership with someone who understood the needs of the university and its students.”

Through relationships and a development process, the university and RXR came together and created a campus-wide master plan.

In its first phase, in 2021 RXR completed The Willoughby, a 476-unit, 34-story tower nearby that also features academic and office spaces for the university, 25,000 square feet of programming area and a rooftop athletic field for soccer and softball above a 564-space garage.

The luxury building, which includes 143 middle-income units similar to 89 DeKalb, was also designed by Perkins Eastman. It offers Manhattan-style amenities, including a huge rooftop terrace. The building’s floor-to-ceiling glass windows give the structure its sleek and striking appearance, while optimizing views in every direction.

89 Dekalb had to offer something more, and New York City’s passage of legislation in December 2021 requiring new construction to be all-electric starting in 2024 was the last push to do so.

“It was coming into law as we were beginning the design process,” D’Eloia recalled. “We just decided that we would do it, building into a market where the residents want to know how their impact affects the city.”

Demand for housing in Downtown Brooklyn has remained strong, even during and after the worst of the COVID-19 pandemic. The only challenge for 89 Dekalb was a smaller site — and thus, a smaller building — because of local zoning. But that became a visual advantage, she continued.

“The design has a lovely wedding cake effect that steps back off Dekalb,” she said. “But that means we have a significant number of units with beautiful outdoor terraces looking over Dekalb Ave. and toward the east.”

There’s much to see.

“The amount of construction that’s going on at this moment including our project and a handful of others within eyeshot probably totals 1,500 to 1,700 units,” she reports.

Technology, then, became a key to efficiency and comfort as a competitive advantage. And its all-electric operation is not the only aspect of 89 Dekalb’s advances.

“One of the most interesting things about the building is that all the heating and cooling are provided by highly efficient packaged units from Europe,” D’Eloia said. “We’ll be one of the first projects in the city to utilize them.”

In addition, the building’s entire envelope will incorporate View Smart Windows that will automatically adjust tint to provide residents with optimal natural light, thermal comfort and unobstructed views.

“This will reduce heat gain. It’s all controlled from the resident’s app. It can be programmed to their habits and needs,” D’Eloia said, adding that RXR is working with View on its Hamilton Green development in White Plains. “We still do put window treatments in the bedrooms, but the windows can darken to the point where there’s no vision through it.”

Energy isn’t the only consideration. Studies show that View’s windows reduce eyestrain and headaches by over 50%, improve sleep by 30 minutes per night, and boost cognitive function by over 40%, the manufacturer said.

Another challenge is the 11-acre site, requiring clever design and logistics from general contractor LRC Construction.

“It’s definitely tight — you get to know your neighbors really well,” D’Eloia said. “With the site, we have maintenance and protection of traffic, getting pedestrians around the construction site safely. We walk pedestrians through our front lobby rather than the street because Dekalb Avenue is so narrow.”

Design and technology will also help to preserve separation between the residents and the 55,000 square feet of academic facilities for LIU faculty and students located in the basement, a portion of the ground level and the second floor. Largely to be used by the University’s pharmacy school, the 89 Dekalb space will include large classrooms. In addition, RXR was asked to incorporate an accelerator space for small businesses that can give students access to private companies that are pioneering technologies and therapies.

The University will have street presence on Dekalb for part of its program, but the main entrance to the pharmacy school will be on the campus side of the building.

“The flows of traffic are separated,” she said. “The students are protected from the residents and vice versa. We have columns supporting a tower up above, so we needed to shoehorn in a clear span and a 225-person lecture hall and have them be oblivious to the 325 residential units above. That’s an engineering feat in itself.”

Yet RXR also continues to focus on people, and 89 DeKalb will advance that principle, as well. Its resident’s app will provide a strong interface with all living in the building.

“We’re always thinking about how to make our buildings feel like communities, including the amenity space, how we staff the building and the programming,” she said. “We want people to choose to live here because they meet their neighbors in the elevator, to feel at home in the big city.”

Joseph Schaefer, Long Island University.

Ivann Kondili, RXR; Peter Palazzo, LRC Construction LLC and Joe Schaefer, LIU

Rebecca D’Eloia, RXR

Regina Meyer, Downtown Brooklyn Partnership and Joseph Schaefer, Long Island University.

Levy Goldenberg stands out for its unwavering dedication to clients. Located in downtown Manhattan, Levy Goldenberg LLP specializes in commercial and real estate litigation. With a foundation of extraordinary legal representation, Levy Goldenberg LLP is becoming a trusted partner in the Big Apple's complex legal world.

We aim to provide a transparent, practical approach to commercial and real estate disputes in New York. Our vision is to not only offer exceptional legal services but also to drive progress and innovation in the legal community and New York City.

The integration of artificial intelligence (AI) into urban environments is presenting a transformative opportunity to enhance the quality of life of city dwellers. From optimizing traffic flow to improving public safety and retail experiences, the possibilities are endless, promising a future of sustainable, efficient and livable spaces.

Massive investments across the globe are driving this innovation. In the U.S., the Department of Transportation released $94.8 million in federal funding in 2023 to support 59 projects focused on boosting road safety, improving transit reliability and utilizing drones and sensors for new projects. This level of investment and innovation ensures that urban areas will continue to evolve into more intelligent and connected spaces, enhancing the overall quality of life for their residents.

Traffic Patterns and Parking Management

Smart technology is revolutionizing how we navigate cities. Real-time data from tech-enabled traffic management systems allow for dynamic adjustments to traffic lights and routes, reducing congestion and enhancing safety for pedestrians and commuters. Equipped with sensors and cameras, these systems monitor traffic continuously, identifying bottlenecks and optimizing signal timings. By prioritizing main roads during rush hours and pedestrian crossings during quieter times, this technology improves travel times and reduces accidents. Additionally, by minimizing idle times and unnecessary stops, smart traffic systems contribute to a greener environment, lowering vehicle emissions and promoting cleaner air in our cities.

Parking has also long been a source of frustration in urban areas, but smart technology offers a transformative solution. Sensors detecting available parking spaces and directing drivers in real time help to significantly reduce congestion and increase patronage to downtown businesses that rely on street or public parking availability. As cities continue to innovate post-pandemic, this technology can be an important tool in spurring greater economic opportunity.

Emergency Response and Community Services

Smart city technologies can significantly enhance emergency services, improving the efficiency of fire, police and ambulance operations. Neural networks can predict traffic patterns and potential hazards, enabling faster and more accurate response times. AI analyzes data to predict the areas where accidents or crimes are likely to occur, allowing for proactive deployment of emergency services.

For example, these tools can recognize specific threats such as weapons, gunshots, aggressive behavior and large crowds and can automatically alert security personnel when such activities are detected. This capability also ensures that emer-

gency service vehicles can navigate through traffic more efficiently, reducing response times in critical situations.

On the neighborhood level, advanced camera systems and AI-powered heat mapping can help to inform where improvements in infrastructure or additional municipal services may be needed. By better understanding density and usage patterns for elements including pedestrian walking paths, public parks and playgrounds, cities can better anticipate the need for sidewalk repair, waste management and equipment or landscaping maintenance. This not only ensures the effective allocation of resources but also enhances overall community quality and resilience.

Retail Experiences

Smart technology is not only enhancing transportation and safety, but it’s also revolutionizing retail experiences in shopping centers. Imagine walking into a store and being greeted by a digital billboard that instantly analyzes your outfit using face-blind smart cameras. Based on your current style, it displays a curated selection of clothing items available in the store that match your preferences. This experience is similar to Amazon’s suggested items but takes personalization a step further by incorporating real-time visual data. The technology enhances the shopping experience by making it more interactive and personalized, and helps retailers engage customers more effectively, fostering greater loyalty and satisfaction.

Real-time inventory tracking and predictive analytics help retailers anticipate demand and optimize stocking levels, reducing waste and improving profitability. These innovations not only benefit consumers but also empower retailers to thrive in an increasingly competitive market. For example, AI sensors in stores can monitor stock levels on shelves and alert store personnel when items need to be restocked. This immediate feedback allows for timely replenishment, ensuring that popular items are always available for customers. Additionally, predictive analytics can forecast which products are likely to experience higher demand based on historical data and current trends, enabling retailers to adjust their inventory shipments accordingly. This approach not only minimizes the risk of overstocking or stockouts but also enhances customer satisfaction by maintaining product availability.

Smart technology can significantly enhance customer experiences at car dealerships by leveraging real-time data analytics. These tools can provide sales staff with the most current information on vehicle availability and pricing, streamlining inventory management. Additionally, smart sensors can monitor vehicle conditions, ensuring all cars are well-maintained and ready for potential buyers. This integration of technology not only in-

creases customer satisfaction but also boosts sales.

Energy Efficiency and Sustainability

Smart cities are leading the way in energy efficiency and sustainability initiatives. Energy management systems powered by AI optimize energy consumption by analyzing usage patterns and adjusting settings accordingly. For example, smart buildings can automatically adjust heating, ventilation and air conditioning (HVAC) systems based on occupancy levels and external weather conditions, reducing energy waste and lowering utility costs. Renewable energy sources integrated into the urban landscape, such as solar panels and wind turbines, provide clean and sustainable power for buildings and infrastructure. This gives owners and facility managers real-time access to critical data, enabling informed decisions to optimize energy usage and reduce waste.

The U.S. Department of Energy recently unveiled a new definition of zero-emission buildings, which highlights the need for emerging technologies to achieve these goals. Cities like Boston are already requiring many new buildings to be net zero, underscoring the importance of smart technology in this transition. The journey toward fully realized smart cities is ongoing, marked by continuous advancements in technology and innovation. By leveraging the power of AI and smart technologies, cities of all sizes can enhance traffic management, public safety, retail experiences, energy efficiency and sustainability.

Making Cities More Liveable

The American Opportunity Survey reports that a total of 58% of respondents have access to some type of remote work. This flexibility, combined with the high cost of living in cities, has led to a trend of deurbanization, where people move away from urban centers in search of more affordable living conditions. However, the implementation of AI smart city tools and services can make cities more attractive and livable. These technologies can help reduce living costs by improving energy efficiency and sustainability, enhancing public services and creating safer, more vibrant urban environments. As a result, cities equipped with smart technologies offer a better quality of life, potentially reversing the deurbanization trend and providing a competitive advantage in attracting residents.

These initiatives not only reduce carbon emissions but they also contribute to a more resilient and environmentally friendly urban environment. The possibilities for improvement are boundless, promising a future where urban environments are not only efficient and sustainable but also safe, vibrant and inclusive. As cities and campuses embrace these technologies, they pave the way for a future where quality of life is optimized and communities thrive.

The Evolution of Smart Cities: Transforming Urban Life

By Erin McDannald, CEO of Elevated

A Proptech Crystal Ball: Mostly Measured

By Debra Hazel

Any new-ish industry is bound to have its booms and busts, and proptech is no exception.

Real estate owners and managers, historically reluctant to implement new technologies that might not work as advertised or become obsolete quickly, were compelled to reverse course during the pandemic as the need for efficiency took hold. The result was a lot of puchasing by real estate companies and a lot of investment from venture capitalists, who appeared to throw money at every new app or software around. But the boom years of the early 2020s seem to be giving way to a more measured response, according to several global proptech leaders.

“It’s no secret that the past few years have presented some serious challenges for the proptech industry,” said Brad Pilgrim, CEO of Parity, a remote platform that optimizes HVAC systems for multifamily residential buildings and hotels. “A turbulent real estate market, the aftermath of the global pandemic and wider economic headwinds have put real pressure on technology providers to prove their value.”

Where investors seem to be finding value now is in energy efficiency and sustainability, which offer provable returns. This is a sharp contrast from in 2017, when climate-tech startups had the lowest expected returns compared to nine other emerging tech verticals; now, Pilgrim said, recent years have seen rapid growth in VC investment — outstripping many other submarkets within proptech.

In fact, the hottest technologies in proptech right now are focused on sustainability, construction tech and AI.

“Sustainability, in particular, has evolved from being merely an ethical consideration to a crucial financial driver, with savvy investors integrating ESG [environmental, social and governance] strategies to enhance profitability and property valuations,” observed Maureen Waters, chief growth officer at Measurabl, and a former partner at Metaprop. “While macroeconomic conditions have slowed new adoption, the commitment to proptech, particularly in multifamily and residential segments, remains steadfast.”

The situation, basically, is that real estate contributes 40% of all global emissions, pushing governments, investors, owners and operators to make serious changes, both to do good and to do well.

“Fundamentally, value is seen in solving a problem. It’s hard to argue

that there is a bigger problem facing real estate than the need to dramatically reduce carbon emissions,” said Parity’s Pilgrim. “Increasing legislation, as well as the potential for operating cost savings, shorter payback periods and increased asset value, have only added more reasons to cut carbon.”

Carbon measurement technologies are now being supplemented by solutions targeting specific carbon emitters like HVAC, which accounts for 43% of all energy use in the country, he added.

Centralizing the Data

On the residential side, the industry may be on the verge of yet another revolution, according to former city planner Jonny Britton, co-founder and CEO of LandTech, a U.K.-based solution that provides networking, site identification, market insights and more.

“Megatrends are happening that will change the way we work, to the same degree that the internet did,” Britton said. “AI improvements will enable proptech companies to train their own models to analyze data and automate workflows across the lifespan of a property.”

Surprised by the fragmentation of zoning ordinances, codes, development standards and Future Land Use data was in the United States, the leaders of LandTech invested $1 million into startup technology Zoneomics, that has centralized and standardized that data digitally across the country.

“In my view, zoning data determines so much about how we live,” Britton said. “Combine this with our work on other planning datasets such as site plans, rezoning applications and demographics and you get a crystal ball into market change.”

Current U.S. clients include larger homebuilders in Florida such as Toll Brothers, Pulte Group, KB Home and D.R. Horton, and the company expects significant growth, especially in the mid- to premium end of the market, where home buyers are more active.

Investment Outlook

As buyers continue to see the benefits of climate-related proptech, investment continues, although at a slower pace. Despite a brief lull in the U.S. due to political uncertainties, Waters observed, the ongoing need for sustainable solutions has driven continued investment, albeit not at the same levels as before.

“The market has notably shifted over the past year, with deal volume dropping significantly, especially for new startups,” observed Waters. “At MetaProp, we used to see around 200 new startup ideas monthly, but today, that number has halved.”

Even so, she said, activity remains robust, especially, yes, in sustainability.

“Despite the slowdown, M&A activity remains robust, particularly in sustainability,” Waters said. “Real estate sustainability has emerged as one of the stronger sub-sectors in proptech due to the increasing recognition of its importance in addressing environmental challenges.”

Brad Pilgrim

Maureen Waters

Jonny Britton

A NEW WAY TO THINK ABOUT MIXED-USE DEVELOPMENT

By Ebby Zachariah and John Payne

Over the past 20 years, mixed-use development has become a staple of urban development in American cities. It’s easy to see its appeal for developers and property owners. By combining several different use cases within a single development, developers and owners can benefit from a variety of potential revenue sources. And the diversity of uses can provide stability because when one sector slows down there will be one or more other uses remaining to pick up the slack.

Typically, owners and developers — and urban planners, for that matter — view mixed-use solely in the traditional context of a development combining parking and then some mix of retail, commercial, residential and/or entertainment development. But there’s another form of mixed-use development that’s worth considering: parking. Yes, just parking.

runs it. The best platforms can be customized to allow owners and developers to address their unique parking management needs, as well as the unique needs of their tenants and customers. The software stores information about each user’s parking needs to build an individual use case for that user. The use case determines how the parking can be utilized, managing when and where the vehicle owner can park, whether they will be charged and, if so, how much and whether the owner has access to a guest pass and, if so, how much they will be charged for each pass. The software should also have a robust accounting element that will automatically collect parking fees, transfer those fees to the appropriate bank accounts and provide accounting reports to both the owner/ developer and the tenant.

You might wonder how a development that revolves solely around parking can be an example of mixed-use. Most parking facilities serve multiple user groups. These groups have different needs, use parking assets differently and may pay different rates. This is true of commercial, residential and even institutional development with parking assets.

When developers and owners start to think about their parking assets in this context, it opens up a whole new world of revenue and tenant amenity opportunities.

Parking Management Technology

Until recently, it wasn’t possible to effectively and efficiently manage parking assets in multiple-use cases. Parking had to be treated as an afterthought at best — and a throw-in at worst — because parking management wasn’t automated. It was just too costly and time-consuming to manage different parking use cases by hand.

With the emergence of parking management software platforms, however, owners can now manage each user group differently, providing access to specific areas of a parking facility, offering access at different times and even allowing them to charge different rates to different users. This presents extraordinary financial and tenant amenity opportunities to owners and developers.

Before we discuss the different ways developers and owners can benefit from managing their parking assets with parking management technology, let’s first take a look at how it works.

There’s also a hardware component. Typically, parking entry and egress is monitored by license plate recognition (LPR) technology. When tenants or visitors drive into a garage or parking lot, the LPR cameras record the license plate information and associate the parking stay with an account.

The same happens when the car leaves. Once the stay is over, the systems determines whether a parking fee is indicated and automatically charges the appropriate account. If the vehicle has a permit, the system associates the stay with that permit.

How It Works: A Deeper Dive

Now, let’s look at specific types of development and how parking management technology works to manage different use cases.

The heart of any parking management system is the software that

Residential developments typically offer permit parking, with tenants provided one or more parking spaces as part of their lease agreements. The process is relatively straightforward in this case. The system merely monitors incoming and outgoing traffic and associates the vehicles with the appropriate resident permit.

Residential complex owners also commonly provide guest parking passes to tenants. Historically, this has meant giving guests paper passes that can be left of the dashboards of visitors’ cars to alert enforcement personnel that the car is authorized to be there. This low-tech approach limits how much you can do with guest parking.

However, using parking management technology allows you to manage guest parking much more closely and creatively. Owners can determine how many guest passes tenants can have on a given day, week, month, quarter or year — really, it can cover any period of time.

The system can also manage when during the day guests can use the parking. The technology also makes it easy to monetize guest parking. For instance, owners can charge a fee for each guest pass, which can automatically be added to the tenant’s monthly rent bill.

Of course, the system can also automatically collect the guest parking fee and distribute the fees to the appropriate bank account or accounts. The system can be set up to provide regular reports so the owner or parking operator can keep track of how guest parking passes are being utilized.

The same considerations are in play for commercial or retail properties, which typically serve a variety of different types of users. These may include employees of commercial tenants and visitors to those tenants or customers and employees of retail establishments. Just as mixed-use developments have several different types of tenants, each tenant has several different types of parking guests, each with their own unique needs. Parking management technology can be customized to recognize the unique needs of each and manage each one.

Win/Win

Parking management technology allows developers and owners to focus on the multiple uses that happen in their parking facilities. As a result, they can manage their parking assets more effectively, efficiently and, perhaps most importantly, more profitably.

Using the technology presents a win/win/win scenario that benefits owner/developers, tenants and parkers. Owners and developers derive numerous benefits: the technology makes managing parking much more efficient and cost-effective, it gives owners the power to automatically manage parking for multiple use cases and it can customize parking management to meet the specific needs of their tenants. It also provides powerful accounting benefits by collecting parking fees and automatically distributing them to the appropriate bank accounts.

The technology can also benefit the bottom lines of owners and developers. When you have this much control over parking assets, it is easier to maximize parking revenues. For example, the accounting reporting that comes with the technology allows owners and operators to be sure that they are charging enough for parking and receiving all of the parking revenues they are entitled to.

Tenants benefit, too, by eliminating the guesswork that’s so common with parking management. The technology seamlessly manages parking spaces, so tenants know exactly how their allocated spaces are being utilized. The accounting features assure that parking fees are charged from the appropriate bank accounts, so there are never surprises.

And, finally, drivers benefit from an improved parking experience. The experience is entirely frictionless, with drivers just driving in and out of parking facilities without having to stop to pull a ticket or pay.

Ebby Zachariah is founder and CEO of Parking Base, the leading provider of cloud-based parking management solutions. He can be reached at ebby@parkingbase.com. John Payne is founder and chief technology officer of Parking Base. He can be reached at john@parkingbase.com

Construction Solutions for California’s A ffordable Housing Shor tage

By Bill Wilhelm, President of R.D. Olson Construction

There is a problem in the lack of affordable housing nationwide, with a shortage of more than seven million affordable homes for our nation’s 10.8 million extremely low-income families, according to the National Low Income Housing Coalition (NLIHC). But in California, the difficulty is exacerbated due to the larger than normal reliance on multifamily housing. Renters in the state make up a much larger share of households (44%) than in the rest of the US (35%), reports the Public Policy Institute of California.

California has long been perceived as a leader in many ways (e.g., agriculture, science, technology), but it also leads the nation in less desirable areas. According to data from the NLIHC, the Golden State is ranked No. 1 in the number of Extremely Low-Income Renter Households (1,282,825). Additionally, it’s second to the leader, Nevada, when it comes to the number of affordable and available rental homes in stock for Extremely Low-Income Renter Households (24 for every 100). Unsurprisingly, the data on California’s homeless burden mirrors information on the lack of affordable housing: there are an estimated 180,000 homeless people in the state, which represents 30% of the entire nation’s homeless population.

The need for affordable housing is huge and cannot be remedied with only renovation or conversion of existing buildings. New buildings must be built to increase the availability, and the construction industry plays a big part in making innovative decisions to achieve that goal. The following are solutions from a construction point of view for developers to consider when looking to invest in creating these much-needed communities.

Fill in the Blanks

A major hurdle for affordable housing developers is finding available space to build in what are typically over-developed urban areas (where populations are higher and the need is greater). With slim pickings of empty lots, infill construction projects are becoming more common for developers, but they usually require an experienced builder who can handle the demands that come with working in a location that had previously been passed over for some reason. Tight quarters, taller designs and traffic-heavy streets can be a challenge for inexperienced construction crews.

A great example of urban infill affordable housing is Kettner Crossing in San Diego, the third affordable housing project from R.D. Olson Construction for nonprofit developer Bridge Housing. Construction is currently underway on the eight-story, 64-unit senior housing complex on a previously undeveloped lot near Little Italy. The 73,400-square-foot project is expected to reach completion in early 2025 and will serve low-income seniors who earn 30% to 60% of Area Median Income (AMI). The ground-up construction plans call for three levels of Type III-A wood framing over five levels of Type I concrete, which will include one subterranean level providing seven parking stalls. The things that make the property attractive (being a transit-oriented development, with close access to bus routes and the iconic San Diego Trolley) are the same factors which pose challenges for general contractors. Heavy machinery, specialized workers and material deliveries must navigate the busy streets of Little Italy with the least possible disruption to the neighborhood. These kinds of concerns are top of mind in construction management projects.

Go for the LEED Gold

Developers searching for height or density bonuses, or those who are interested

in low-income housing tax credit (LIHTC) financing, should look to hire a general contractor who is familiar with the many requirements for Leadership in Energy and Environmental Design (LEED) certification from the U.S. Green Building Council.

California has required third-party LEED certification for buildings larger than 10,000 square feet since 2004, with additional requirements on affordable housing, depending on local ordinances. These energy-efficiency standards may appear a big expense up front but are designed to offer cost savings for the owners and residents in the long term.

Strategies like solar thermal water heating require experienced construction work, and combined with proper window installation, meticulous insulation and efficient use of materials, all work together toward a LEED certification.

Most of R.D. Olson Construction’s affordable housing projects incorporate the requirements needed for LEED certification, regularly earning Gold and Silver ratings upon completion. One such example: this year they completed the first phase of Rose Hill Courts in Los Angeles for Related California, whose 89 LEED-certified units have more than doubled the previous number of apartments in the complex built in 1942. The older building was replaced with a modern, energy-efficient community that has improved the standard of living for its residents.

Get on the Fast Track

Lastly, while this is not necessarily an option for every developer, geography can help facilitate a building’s approval and construction. In the sprawling city of Los Angeles (bursting with a population of 3.8 million and covering 503 square miles), affordable housing developments began being “fast tracked” in early 2023 when Mayor Karen Bass’ Executive Directive 1 (ED 1) was enacted. The special order provides for the expedition of permits and clearances on new 100% affordable housing projects in the city.

As a direct result, in April of this year, R.D. Olson Construction broke ground on The Alcove in Woodland Hills for owner Meta Housing Corp. The new, 238,000 square-foot, seven-story 173-unit apartment complex was greenlit in record time and is expected for completion in fall 2025. Due to this local executive action, accelerated approvals are shaving cumbersome time off from projects that usually take considerably longer.

At a time when affordable housing is in desperate need in California, there are solid solutions for developers if they take the time and effort to do their homework before finding their construction partner. The earlier examples are just some of R.D. Olson Construction’s recent work in the sector. We are proud of the homes we’ve built in the past few years and look forward to being a part of much needed future affordable housing developments.

We’ve also worked on 50-unit Emporia Housing Development in Ontario for Related California; 142-unit Stony Oaks Apartments in Santa Rosa for developer Meta Housing; 73-unit Las Flores Apartments in West Los Angeles for Community Corporation of Santa Monica; 64-unit West Terrace Apartments in Hyde Park for developer Community for Friends; and 111-unit West Carson Villas for Path Ventures.

Rose Hill Courts, Los Angeles

West Terrace Apartments

ON THE GOLF COURSE WITH CLIENTS?

YOUR COMPETITORS MAY BE ON THE CHARGE

By Paul Roberts

It’s not so long ago that branding for a legal practice amounted to having a brass plate at the entrance to its building and an elegant letterhead that never changed. Each partner had their own roster of clients, whom they dealt with exclusively, and these relationships superseded any idea of a collective, corporate culture or reputation.

But times have changed and so has the image and working model of the legal industry. Practices are now more often referred to as firms or companies, and they tend to be housed in modern, glass-fronted city center high rises rather than in stone-built, terraced offices.

With many expanding their reach — working internationally and across multiple disciplines — the question of how legal firms are perceived by their clients has become more relevant and important.

The legal industry has moved on from the days of partners meeting new clients in gentlemen’s clubs and on the golf course. Today, a firm’s brand must do more of the heavy lifting and, to be effective, needs an ongoing supply of client feedback. It’s no longer good enough for partners to represent the name and reputation of their firm to their own clients. Firms need a powerful and distinctive brand identity that reflects their values, the quality of their work and the experience, expertise and reliability of all their staff.

That involves more than just choosing a corporate logo and a strapline. Brand alignment means evaluating both how clients perceive the firm and how it stands out from its competitors. Firms must be able to measure what they are promising through their branding and whether that matches up with what their clients are experiencing.

Below, I will explain the importance of customer experience and how that can be measured against what clients expect through brand messaging. Ensuring that there is a proper and effective alignment of both is essential for firms to succeed, for two reasons.

Firstly, if clients believe that promises made in a firm’s brand messaging are not matched by the quality of its service — that they have had a poor customer experience — they will feel let down and will likely take their business elsewhere in the future.

Equally important, if a company has invested time and money to ensure it is delivering a high quality of service by employing and training the best people and instilling a culture of excellence across the firm, but that is not communicated through its branding, then business will go to other firms with more powerful and effective messaging.

Insights and Feedback

Client expectations are evolving as more legal firms embrace automation, AI and 24/7 support. As a result, standout experiences can quickly become run of the mill. To command a price premium, firms must deliver a client experience that is different from or better than that of their competitors.

As firms expand, they can no longer rely solely on partners knowing and talking to

their own clients. Rather, they need a centralized view of what is being thought and said by the entire client base. Analyzing and summarizing this data in real time will enable firms to discover and respond to emerging client needs faster than their competitors.

For example, when bidding for new work, firms must know whether the expectations stated in a request for proposal (RFP) align with a client’s previous experiences with the firm. If they do, relevant testimonials need to be found; if not, then the firm must work harder during the pitch to close the experience gap.

Today’s clients expect a personalized, efficient and proactive service. To meet those client expectations, legal firms must leverage insights and feedback to continuously refine their approach. This involves collecting data through client interactions and platforms, then analyzing that data to uncover trends and areas for improve how they deliver that service. Implementing changes based on client feedback not only enhances satisfaction, but it also fosters loyalty.

Measuring and Enhancing Alignment

When a legal firm creates a proposal, marketing content or client communications, it is making promises to its audience about what it can expect. For example, the firm might pledge to provide services that are “solutions focused” and “client-centric” or that it will offer fresh thinking around a particular subject. But few firms have a systematic way of measuring whether clients or potential clients see the firm the same way, or to establish whether they stand out from their competitors.

A legal firm relies on its reputations to drive word-of-mouth referrals, but if its brand promises don’t align with clients’ perceptions, then it risks undermining trust and creating negative word-of-mouth. Its relationships, reputation and, ultimately, its revenues depend on its clients trusting it to deliver on its promises. It is easy to assume that clients are getting the best experiences, but brand alignment refers to how well a firm’s services, culture and communications reflect its brand values. Measuring brand alignment involves evaluating how clients perceive the brand and how it stands out from its competitors.

Client feedback can play a crucial role in assessing these parameters. Enhancing brand distinctiveness involves clearly communicating and consistently delivering the firm’s unique brand value proposition across all client touchpoints. If a brand’s value driver is

innovation, for example, it must reflect this in every client interaction. Simply claiming that it is innovative is not enough. If the client experience is still based on mailed letters and phone calls rather than GenAI and electronic signatures, there is a disconnect.

The way to discover this gap is to switch brand monitoring from annual research or key account interviews, to an “always-on” approach to listening to clients, consistently monitoring the voice of clients across all channels and touchpoints.

As legal firms consolidate, they need to rebrand (or at least refresh their brand) to reflect how their offer has evolved. However, unless they have invested in research, they have no way of measuring whether their new brand is resonating with clients, referrers and other stakeholders.

Rebranding is an expensive and timeconsuming process. If a firm cannot measure whether a rebrand has been effective in changing client perceptions, it cannot adapt its messaging and behaviors to maximize its return on investment (ROI).

The Impact of Rebranding Efforts

A rebrand is not simply a marketing project; it needs to be reflected in processes and behaviors across the firm. Don’t assume that a rebrand has worked after it has launched. Keep measuring and using the insights to refine how your firm is delivering on your brand promises.

Rebranding can be a powerful tool for refreshing a firm’s image and aligning it more closely with its strategic goals and client expectations. It is also important to maintain a distinct position in the market and in the minds of current and potential clients.

However, it also carries risks and it must be handled carefully. A successful rebranding effort can rejuvenate client perceptions and attract new business, but that involves clear communication of the reasons for the rebrand, maintaining consistency in messaging and ensuring that all aspects of the client experience reflect the new brand identity.

That means defining the behaviors that reflect the new brand positioning and the processes required to help your people to consistently exhibit those behaviors.

Paul Roberts is CEO of MyCustomerLens, an AI driven, always-on client listening platform for professional services firms.

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Condo-Co-op Helpline: Common Sense Renovation Policies in Co-operative and Condominium Buildings

For board members and managing agents, one issue that will rally unit owners to action is the renovation of individual units. I have observed that most boards and managing agents handle renovations poorly, treating them as liabilities and nuisances, not as enhancements to the property and quality of life.

Board members and managing agents are mainly illinformed on best practices when renovating, likely because if these processes were handled more efficiently, architect and engineer consultants would substantially reduce compensation. Typically, boards and managing agents focus on the alteration agreement, making it as costly and onerous as possible in the misguided belief that somehow this “protects” the building. This makes renovations more expensive without improving the building in any respect, while damaging the reputation of the building for buyers.

Boards and managing agents would be better off developing sensible policies based on practical construction considerations. One practice would be to prohibit “wet over dry” — kitchens and bathrooms (areas with plumbing) may not be relocated above areas that do not have plumbing on lower floors. Another is to encourage all-electric kitchen renovations to gradually reduce or eliminate gas service. Part of that entails supporting increased power to kitchens. New York apartment kitchens have traditionally been underpowered.

Another sensible policy would be to encourage unit owners to improve insulation in walls and ceilings to reduce energy waste. Making standard selections of acceptable insulation materials and techniques would be a better use of money than tormenting unit owners with uselessly complex alteration agreements.

Boards also need to assess fireproofing. New fire-retardant paints and coatings can slow the spread of a fire more efficiently and effectively than drywall. In small apartments, these new materials are projected to be popular and less expensive than drywall due to lower labor costs.

Replacing flooring is also problematic for some boards. The policy issue that should be considered is how to soundproof stone floors in living areas. If unit owners are replacing wood floors with tile or stone, it would be best to have a standard policy on soundproofing materials. However, the more common practice is using sustainable woods such as bamboo. Also, the law states that 80% of the living space floor is supposed to be carpeted

in multiple dwelling units.

Before implementing policies, it is important to review the building declaration or offering plan. Many offering plans and declarations include provisions for gas service to kitchens. If you choose to promote all-electric kitchens, do not penalize those who keep gas for now. As gas access becomes limited, unit owners will eventually switch to electric kitchens. The building documents may also limit a board’s ability to encourage additional insulation. The board may have the obligation to insulate if the unit owner’s property or leasehold is to the finished wall.

If the cost of insulation is minor, and in an atmosphere of cooperation, unit owners are likely to cooperate. On the other hand, the board may have to wrap pipes or blow in insulation if there is resistance.

One mistake to avoid is imposing burdensome insulation requirements if the obligation falls on the board. By doing so, the board is likely to be sued for breaching the offering plan or declaration. Even if the obligation falls on the unit owner, making it “excessively difficult” may be deemed against public policy, as outlined in Local Law 97 of 2019.

Be mindful that if boards make sensible rules about materials, there will be less motive and less reason for contractors to engage in risky work in units. Also, the more logical the safety and protection requirements are, the more likely the unit owners and contractors will comply with them.

One final word of caution to boards regarding adopting policies for renovations: Be reasonable and logical. Do not look to increase unit owner expenses or inconvenience; rather work to make the process simple and efficient. In the long term, that will work in favor of the building in terms of property values.

Finally, do not use unlicensed architects or interior designers to review engineering and architectural plans. It may look like an inexpensive route, but the unlicensed party is liable to suit for unlawful practice as a design professional, and the board opens itself up to charges of breach of fiduciary duty. Using unlicensed personnel will not be protected by the business judgment rule.

Thiscolumnpresentsageneraldiscussion.Thiscolumn doesnotprovidelegaladvice. Pleaseconsultyourattorneyforspecificlegaladvice.

Frank DeLucia Senior Vice President

Hub International Northeast

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

Preparing for the Claims Process: A Guide to Efficient Resolution

Although you can’t avoid an insurance claim, being prepared can significantly ease the process. Understanding the key participants and steps involved in the claims process can help ensure a swift resolution, allowing you to return to normal operations as quickly as possible.

Key Participants in the Claims Process

When a loss occurs, several parties are involved in managing your claim:

• The Insured

This typically includes the risk manager and may also involve the controller, treasurer, chief financial officer or chief operating officer. These individuals are responsible for overseeing the reporting, response and documentation of the claim against a commercial property policy.

• The Adjuster

This could be a company adjuster or an independent adjuster working for a company examiner. Adjusters investigate the loss, recommend reserves, assess the damage and settle the claim. They will inspect the damage, estimate the loss, evaluate coverage and, if coverage is confirmed, measure and settle the loss.

While the process ideally is professional and courteous, disagreements over coverage or valuation can arise. Remember, a claim is essentially a business negotiation. Being able to clearly present your case with solid, factual evidence can often influence the outcome in your favor.

• The Broker

Your broker, such as Hub’s claims management team, will assist in reporting the loss, coordinating the claim process, liaising with the adjuster, developing and presenting your claim and negotiating a settlement. If a coverage dispute occurs, your broker will advocate on your behalf to resolve the issue favorably.

Stages of the Insurance Claims Process

To prepare for the claims process, gather relevant documents (receipts, invoices, proof of ownership), collect photos and videos of the damage and write down a detailed account of the event, being sure to include any witness information.

The five stages are:

Contact Your Broker

Provide a detailed list of the damaged or lost property along with any supporting photos or videos. The adjuster will then follow up as the claim progresses.

Claim Investigation

The adjuster will investigate the claim to determine the extent of the loss or damages covered by your policy and identify any responsible parties.

Policy Review

After the investigation, the adjuster will review your policy to clarify what is covered, inform you of any applicable deductibles, and explain your coverage.

Damage Evaluation

The adjuster may consult appraisers, engineers or contractors to assess the damage. Following this, they will provide you with a list of recommended vendors for repairs.

Payment

Once repairs are completed and items are replaced, the adjuster will contact you regarding the settlement and payment of your claim.

Your claim may include various expenses such as freight costs, equipment rentals or temporary storage, all aimed at helping you resume operations quickly.

Ensure you keep the adjuster informed of your plans and seek their approval before incurring expenses.

A MODERN APPROACH TO COMMERCIAL REAL ESTATE,

POWERED BY A CENTURY'S WORTH OF EXPERIENCE.

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

Our team & staff for their endless dedication and support

Our tenants for their cooperation to keep our buildings safe

Our partners for their trust and confidence in these challenging times

All New Yorkers working tirelessly to keep our city moving

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

Kris Kiser

Outdoor Power Equipment Institute

TurfMutt Foundation Equip Expo

1605 King St. Alexandria, VA 22314

turfmutt.com

opei.org

(703)549-7600

The Top Five Benefits of Trees in Backyards & Neighborhood Parks

As urban areas grow hotter, the TurfMutt Foundation — which has advocated for the care and use of yards, parks, and other green spaces for 15 years — reminds homeowners of the importance of trees and other living plants for mitigating the heat island effect.

A report by the research group Climate Central shows that more than 40 million Americans live in urban heat islands, areas within cities that are hotter than nearby rural spaces. Trees, along with plants like grass, shrubs and bushes, help cool the environment through the processes of evapotranspiration.

Here are just five reasons why trees are tops at reducing heat islands and more:

Mother Nature’s Air Conditioner

By providing shade, trees lower surface and air temperatures. In fact, shaded surfaces could be 20° to 45°F cooler than temperatures in unshaded areas, according to the Environmental Protection Agency (EPA). Additionally, the EPA reports that the process of evapotranspiration can help reduce peak summer temperatures by 2° to 9°F.

Increased Tree Canopy = Decreased Heat-Related Illnesses

According to the U.S. Department of Health and Human Services (HHS), heat-related deaths have been increasing in the U.S. HHS statistics show 1,722 people died in 2022 from heat, and in 2023 that number increased to 2,302. But more trees can help people stay safe during hot days. In fact, according to a study published in “The Lancet”, increasing the tree canopy in 93 European cities to 30% coverage could prevent an estimated four in 10 premature heat-related deaths.

Better Mental Health

According to the Arbor Day Foundation’s “Canopy Report”, people who engage with trees and green spaces on a daily basis are happier and score higher in their mental and physical health than those spending time in nature less often. The report also indicates city dwellers with access to adequate green space experience 31% less psychological distress. Furthermore, children who live near more green space have a decreased risk of developing mental health disorders as they age.

Good for the Environment

Trees are one of nature’s environmental superheroes. One tree produces nearly 260 pounds of oxygen each year, notes savatree.com. Two mature trees provide enough oxygen for one person to breathe over the course of a year, reports American Forests. In Los Angeles alone, trees remove nearly 2,000 tons of air pollution each year, said the World Economic Forum.

Energy Savings

Trees properly placed around buildings can reduce air conditioning needs by 30% and can save 20% to 50% in energy used for heating, according to the USDA Forest Service. The U.S. Department of Energy devised computer models that predict the proper placement of only three trees can save an average household between $100 and $250 in energy costs annually.

To learn more about the many benefits of the green space around us, download the TurfMutt Foundation’s International Backyarding Fact Book.

Proper maintenance is critical to keep your trees and other living plants healthy so they can provide the many health and environmental benefits described above. Outdoor power equipment can make even big jobs easier. But before you use a chainsaw, mower, trimmer, blower, pruner or other piece of outdoor power equipment, it’s important to be up to date on their handling and safety procedures.

Read your owner’s manual and follow all guidelines for your outdoor power equipment. Protect your power by using only E10 or less fuel in gasoline-powered equipment. For battery-powered equipment, recharge the machines only with the charger specified by the manufacturer. When your battery pack is not in use, keep it away from other metal objects such as paper clips, coins, keys, nails or screws that can make a connection from one terminal to another. Last — but certainly not least — always keep children and pets away when operating outdoor power equipment.

To learn more about creating the yard of your dreams, visit turfmutt.com. For more, sign up for Mutt Mail, a monthly e-newsletter with backyarding tips and all the news from the TurfMutt Foundation. Look for Mulligan the TurfMutt on the CBS “Lucky Dog” television show on Saturday mornings.

LANGSAM PROPERTY SERVICES CORP., AMO

Langsam Property Services Corp. is a Bronx-based real estate management company. These buildings are located in the Bronx, Manhattan, Queens, Brooklyn, and lower Westchester County.

Langsam is designated as an Accredited Management Organization (AMO), a standard of excellence in management conferred by the Institute of Real Estate Management (IREM).

1601 Bronxdale Avenue

Bronx, New York 10462

Tel: 718. 518. 8000

Fax: 718.518. 8585

Mark Engel, CEO

Matt Engel, President

Debra Hazel

Debra Hazel Communications

North Las Vegas, NV

(201)618-5247

Deb’s Retail Dish & Deals: Moving Suburban

When I think of Jamestown, I think of cities — after all, the real estate company has been active in Times Square, Chelsea Market Brooklyn’s Industry City, San Francisco’s Ghirardelli Square and projects in Lisbon and Rotterdam, among others.

Now, however, the company is looking at suburban development, announcing in August that it will acquire the Atlanta subsidiary of Cincinnati-based North American Properties (NAP), a family-owned real estate company founded by William J. Williams, Sr. in 1954.

The Atlanta subsidiary has $2 billion in assets under management, a good chunk of that in suburban markets such as Peachtree Corners and Marietta, Georgia; Yonkers, New York; Naples, Florida and Sayreville, New Jersey. These third-party services engagements will add to Jamestown’s growing real estate services business, which currently includes 22 projects across 19 cities and 10 countries. It should be a perfect complement.

“Jamestown’s North Star is to create inspiring places that serve as the foundation of community life and reinforce a sense of place and belonging, while generating value for investors,” said Michael Phillips, president of Jamestown, in the announcement. “This acquisition will bolster our differential advantage in the market as a vertically integrated, mixed-use operator with a focus on placemaking. Their expertise around suburban placemaking is a great complement for our urban placemaking expertise, as well as our grocery-anchored shopping center business.”

The deal also brings expertise in mixed-use properties, which have become increasingly appealing as suburbs try to give their residents a more urban feel with live/ work/play projects, especially in growing secondary and even tertiary markets. In “Work Design Magazine,” architecture firm HGA’s Public/Corporate Practice Group Leader Rob Zirkle, AIA, LEED AP, noted that in the post-pandemic era, single-use zoning districts as pioneered by the Euclid decision in the 1920s are vanishing in favor of genuine neighborhoods in the 2020s.

“Ultimately, a recalibration of city centers by successfully integrating mixed-use buildings into the urban public realm is what will foster communities and revitalize the nation’s CBDs,” Zirkle observed.

That’s why Jamestown CEO Matt Bronfman said the firms’ goal was to be a “the best mixed-use investor and operator globally, focusing on creating innovation hubs and community centers.

“As part of the firm’s next chapter, Jamestown plans to

continue to scale its vertically integrated platform and mixed-use expertise to more markets. This acquisition advances our goal and is a major step toward realizing our long-term vision for the future.”

Upon closing, expected by the fourth quarter of 2024, the Atlanta-based operating platform and its assets will move forward under the Jamestown name — as will its more than 200 employees. Tim Perry, currently the managing partner of NAP’s Atlanta subsidiary, will join Jamestown’s executive team as a managing director and co-chief investment officer.

That size should also make the company’s projects more appealing to lenders as capital remains squeezed. (Let’s see what happens with the Fed this month.)

“Joining Jamestown represents an exciting new chapter,” said Tim Perry, managing partner of NAP’s Atlanta subsidiary. “We look forward to continuing to create dynamic, community-focused destinations and unlocking new value creation opportunities as part of Jamestown’s global platform.”

Established in 1996, NAP’s Atlanta subsidiary has a long track record of creating mixed-use destinations. Over the last decade, the subsidiary has scaled its hospitality-forward, vertically integrated operating platform and positioned itself as a boutique, full-service developer pursuing opportunistic returns. This has allowed the subsidiary to assemble a portfolio of underutilized lifestyle destinations and maximize their potential through value-add, experiential redevelopment projects. The platform’s portfolio size has grown substantially in the last four years under Perry’s leadership.

Cincinnati-based North American Properties will continue to own and operate real estate through its other affiliates and manage investments across its wide-ranging venture portfolio. The company will also continue to be an investor in the platform’s six owned assets.

“Since we founded the Atlanta office 28 years ago, the team has built a great platform for the communities and partners it serves,” said Tom Williams, CEO of North American Properties. “Finding a like-minded partner in Jamestown is a great outcome for our people, and we look forward to continuing to invest in real estate alongside them.”

As someone who moved from New York City to suburban Las Vegas, I can tell you it’s a very different animal — and that I’d love nothing more to have this kind of project nearby. I’m looking forward to seeing what this new combination creates.

Stephen Gilman Partner, Tax & Business Services

Marcum LLP

53 State Street, 17th Floor Boston, MA 02109

P: (617) 807-5015

stephen.gilman@marcumllp.com

Cancellation of Debt Income

A result of the pandemic is that employees no longer travel to their offices every day of the week. This new reality has put pressure on commercial real estate owners as tenant leases come due — there is even talk of a mortgage debt Armageddon as large numbers of commercial property mortgages will be coming due soon. That means that this is a good time to review the cancellation of debt rules regarding when cancellation of debt is taxable and when there are exceptions.

Generally, discharge of debt, or debt forgiven or canceled by the lender, is taxable income. The taxable amount is the difference between the amount of the existing debt and the amount that is ultimately paid.

A loan modification can also be considered a cancellation of debt income if deemed “significant”. There is a two-part test to determine if a loan modification is significant. First, were the terms of the debt instrument modified and, second, was the modification significant?

Tax significance is determined by examining different variables. Regulations help define modifications, which can occur by amending the terms of a debt instrument or by exchanging one debt instrument for another.

A modification is not:

• An alteration of a legal right or obligation that occurs by operation of the terms of a debt instrument.

• Borrower’s nonperformance, although the agreement of the lender not to exercise its remedies under the debt instrument may be a modification.

• The failure of the lender or borrower to exercise an option in the loan agreement.

The IRC Sec. 1001 regulations provide for the following loan changes that would make a modification significant:

• Loan yield: A change in yield of more than the greater of 25 basis points or 5% of the yield of the unmodified loan.

• Timing of payments: An extension of five years or 50% of the original term of the loan.

• Change in obligor or security: Substitution of a new obligor on a recourse loan.

• The nature of a debt instrument: Modification of the loan such that it is no longer considered debt for

federal income tax purposes.

• Changes to accounting or financial covenants: Tied to a borrower payment that affects the loan yield.

Cancellation of debt income (COD) is taxable as ordinary income. IRC section 108 provides for specific exclusions:

• Bankruptcy exclusion: Debt discharged from bankruptcy is excluded from gross income.

• Insolvency exclusion: Debt that is discharged can be excluded form gross income if at the time of the discharge the taxpayer is insolvent. Insolvency is the amount in which the taxpayer’s liabilities exceed the taxpayer’s assets. For both bankruptcy and insolvency, the taxpayer must reduce tax attributes for the amount of the COD excluded from income.

Tax attributes are to be reduced in the following order: net operating losses, general business credit, minimum tax credit, capital loss carryovers, basis in property, passive activity loss and credit carryovers and foreign tax credits.

Instead of reducing tax attributes, taxpayers could elect to reduce the basis first if it would benefit them.

Qualified Real Property (QRP) indebtedness exception is debt incurred or assumed by the debtor in connection with real property used in a trade or business. There are two limitations on how much COD can be excluded:

• The amount excluded cannot exceed the outstanding principal of the QRP property business indebtedness over the net fair market value of the qualified real property before the debt discharge.

• The amount of canceled QRP debt that can be excluded cannot exceed the total adjusted bases of depreciable property held immediately before the debt cancellation.

The tax consequences can differ depending on multiple factors, such as whether the debt is recourse or non-recourse.

Taxation of loan modification is a complex area. If you are in a situation where a debt may need a modification or there is a chance of foreclosure, it is well advised to familiarize yourself with all the rules, as there is an opportunity for some tax planning to minimize the tax ramifications of such transactions.

Lee Hoffman Co-founder and President Runwise

816 Avenue of the Americas

New York, NY

lee@runwise.com

Buildings are Not Prepared for Extreme Weather and Climate

This summer began with a heat dome in the Eastern parts of the United States, with the Midwest and South spiking temperatures into the high 90s and leaving us to combat extreme heat as we went along with our daily lives. For the real estate industry, it served as yet another wake-up call regarding building preparedness for extreme weather and climate events, which have increased in frequency and are expected to rise in severity in the coming years.

The U.S. building stock is old and, by most accounts, is not being maintained at a pace that is sufficient with its need. However, the more critical issue is that most buildings (including new construction) are operating on antiquated technology from 50-plus years ago. These systems aren’t capable of detecting issues or adapting in real time to extreme conditions. This was inefficient but adequate when weather conditions were milder, but as extreme weather has increased in frequency and intensity, it has become a national ticking time bomb.

So, what can be done to better prepare and protect our buildings as we continue to experience extreme weather?

The good news is that virtually every industry other than real estate has already determined that using software, data and sensors to operate systems in real time is critical to efficiency and safety. This technology is finally gaining mainstream adoption in buildings as Smart Building Controls and is now a non-negotiable tool that property owners must invest in to properly equip their buildings to run smoothly in the face of extreme climates and ensure the safety of tenants.

This technology has become a necessity in extreme weather because critical systems such as heating and cooling systems frequently develop small issues — leaks, minor failures, etc. In more moderate weather, these systems can compensate and chug along for years or decades without anyone noticing the problems. However, with extreme weather, these systems can fail abruptly.

The time to fix the systems is not when they have completely failed — often at the peak of the heating or cooling season — because it can be days, weeks or, in some cases, months to get them operating again.

Buildings with smart controls detect minor issues instantly. This means that not only can they be addressed before becoming major issues or failures, but also that they can be repaired outside of peak usage season and, importantly, long before they have an impact on occupants.

With more extreme and potentially deadly weather, buildings being properly and safely cooled and heated is no longer an amenity; it has become a critical tenant safety issue.

It’s also a major budgetary line item that is growing each year. The good news is that Smart Controls are called “smart” for a reason — they have the ability to help your building run more efficiently and increase tenant comfort in the process. This means that, in addition to extending the system lifespan and making tenants safer, they also save buildings money on energy. The typical Smart Control will drop energy costs by more than 20% and deliver a 20 times return on investment over a decade. This is ever more critical in a world where substantially more energy is being used to cool buildings in extreme heat and the cost of energy has risen over 30% in the last few years. These costs are a major component of increasing housing costs in most major cities.

While technology is vital, the human element of property management is still crucial, given that building staff is ultimately responsible for keeping operations running smoothly throughout the building.

It’s therefore worth noting the importance of regular building assessments that will identify weak links in systems and to best evaluate upgrades needed for each system multiple times. Property managers should also consider having a formulated action plan in place should an emergency occur due to extreme weather or climate conditions.

Buildings are equipped with outdated systems that prevent them from running efficiently, and in cases of extreme weather or climate events, can have drastic implications for tenant safety and comfort and the bottom line. Combined with proactive maintenance, we can ensure that our cities are resilient in the face of growing climate challenges and are safer, more comfortable and affordable places to live.

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Has the Second Circuit Extended the Automatic Stay... Again?

The Automatic Stay is a cornerstone of bankruptcy law, providing crucial protection to debtors by halting legal actions and creditor collection efforts upon filing for bankruptcy. Recently, the Second Circuit Court of Appeals issued a decision in Fogarty that has sparked significant debate and potentially expanded the scope of this protection beyond traditional boundaries. This article explores the implications of the Fogarty decision, its potential impact on bankruptcy proceedings and the broader legal landscape.

Understanding the Automatic Stay

The Automatic Stay, codified in Section 362 of the Bankruptcy Code, immediately goes into effect upon a debtor filing for bankruptcy. Its primary purposes are to provide debtors with breathing room to reorganize their finances, prevent creditors from pursuing individual claims outside of bankruptcy proceedings and centralize all disputes within the bankruptcy court.

Typically, the Automatic Stay applies solely to actions involving the debtor. However, exceptions exist, such as when claims against non-debtors could have an immediate adverse economic impact on the debtor’s estate, as established in the Queenie v. Nygard case. This exception broadens the scope of protection to include certain actions against non-debtor entities closely tied to the debtor’s financial interests.

The Fogarty Decision

In Fogarty, the Second Circuit introduced what some consider a significant expansion of the Automatic Stay. The court established a bright-line rule stating that as long as the debtor is a named party in a legal proceeding, the Automatic Stay applies not only to the continuation of that proceeding but also to the enforcement of any judgments arising from it. This rule applies regardless of whether the debtor’s involvement in the action is central or peripheral.

Critically, Fogarty did not differentiate between actions where the debtor is the sole defendant and cases where both debtors and non-debtors are named defendants. This lack of distinction suggests that the Automatic Stay could extend to protect non-debtors who are co-defendants in actions where the debtor is also involved.

Implications and Controversies

The Fogarty decision has generated controversy among bankruptcy practitioners and scholars. Traditionally, the Automatic Stay’s application has been interpreted narrowly to protect only the debtor and their immediate financial interests. However, Fogarty’s broad interpretation appears to extend this protection to non-debtors in specific circumstances, thereby altering established

legal precedent.

Opponents argue that Fogarty’s interpretation may lead to unintended consequences and inequitable outcomes, particularly in cases involving complex corporate structures or multiple defendants. Critics contend that such an expansion could disrupt judicial efficiency and fairness by unnecessarily delaying proceedings involving non-debtor parties who are not directly implicated in the debtor’s bankruptcy.

Legal Analysis and Response

The Second Circuit acknowledged potential criticisms of its decision, recognizing that its interpretation might appear formalistic or overly expansive. However, the court pointed out that Congress provided mechanisms, such as Section 362(d), for parties to seek relief from the Automatic Stay in cases where its application might lead to unfair outcomes.

Moreover, the court emphasized that its decision in Fogarty hinges on the plain language of the Bankruptcy Code, specifically the provision that the Automatic Stay applies to any proceeding where the debtor is a named party. This straightforward reading suggests that the Second Circuit intended to ensure consistency and predictability in the application of bankruptcy law across its jurisdiction.

Conclusion

The Fogarty decision represents a potential shift in how the Automatic Stay is applied within the Second Circuit. By establishing a broad rule that ties the stay to the mere involvement of the debtor in legal proceedings, the court may have inadvertently expanded its scope to include protections for non-debtors in certain contexts.

As the legal community continues to grapple with the implications of Fogarty, it remains to be seen how lower courts will interpret and apply this decision. Whether viewed as a necessary clarification or an overreach, Fogarty underscores the evolving nature of bankruptcy law and the ongoing efforts to balance debtor protections with the interests of creditors and other stakeholders.

In conclusion, while Fogarty may have extended the reach of the Automatic Stay, its ultimate impact will depend on future judicial interpretations and potential legislative responses.

Stakeholders in the bankruptcy process must stay vigilant and informed as these developments unfold, ensuring that the principles of fairness and efficiency continue to guide the application of bankruptcy law in the Second Circuit and beyond.

Robert Rahmanian

Co-founder and co-CEO

Real New York

64 Ludlow St. New York NY 10002

robertg@realnewyork.com

What NYC Apartment Landlords Should Know About the Good Cause Eviction Law

New York state legislators passed the Good Cause Eviction Law on April 20, 2024, requiring apartment landlords and owners to show “good cause” to evict a market-rate tenant. The law also guarantees lease renewals for already occupied apartments with existing eligible tenants who pay rent on time and follow lease terms, and caps rent increases for most New York City Apartments on lease renewals. This is a sweeping change for the NYC apartment industry as it impacts the rights and obligations of landlords and tenants.

The new law is in effect for all five boroughs of New York City but will not take effect for other cities and towns in the state unless those municipalities opt into them. So, what does this law mean for NYC apartment landlords and owners? Below are a few of the main highlights from the Good Cause Eviction (GCE) Law and considerations for apartment owners.

Raising Rents

Apartment owners who seek to raise rents on renewal to the lesser of 10% or 5% + CPI (CPI in New York City is the New York-Newark-Jersey City, NY-NJ-PA consumer price index) remain unaffected by the GCE. For example, if an owner sought to raise rent by 7.5% today, such increase on renewal would not trigger any GCE protections as it is less than the 8.82% promulgated by the New York State Division of Housing and Community Renewal (DHCR).

Increases on a renewal of more than the lesser of 10%, or 5% + CPI, are presumptively unreasonable, but such presumption is rebuttable. Owners must be able to demonstrate the reasonableness of such increases.

In determining the reasonableness of an increase, the law provides several landlord costs that a court may examine and circumstances the court must take into consideration (i.e., property taxes) in addition to whether the apartment was “significantly repaired.” There is anticipation that this may be a hotly litigated issue.

Unregulated Apartments

Owners of unregulated apartments must show “good cause” for why a lease is not renewed. There are several express bases of “good cause” in the law, including:

• The tenant’s failure to pay rent, provided that the rent is not unreasonable (noted above).

• The landlord seeks to demolish the apartment. The law only states that the apartment must be demolished, not the building and may be a basis worth exploring.

• The tenant has violated the terms of the lease (i.e. a substantial obligation of the tenancy);

• The tenant is committing a nuisance.

• The tenant’s occupancy of the apartment is in violation of the law or causes a violation of the law, subjecting the owner to penalties. It appears, however, that this provision requires the issuance of a vacate order and would require the restoration of the tenant to possession once the violation is cured.

• The tenant is using the apartment or part of the building for an illegal purpose.

• The tenant has refused access to the landlord for a legitimate purpose.

• The landlord seeks to occupy the apartment for his personal use.

• The landlord seeks to withdraw the apartment from the rental market; and the tenant refuses to agree to “reasonable changes” to a lease renewal.

Good Cause Eviction Law Notices

Good Cause Eviction Law Notices must be attached to vacancy and renewal leases and to predicate notices and petitions where an owner commences a holdover proceeding or nonpayment proceeding.

Where an owner chooses to increase the rent for more than the presumptively reasonable amount, or where an owner chooses not to renew an unregulated lease, a GCE Law Notice must be attached. The Notice requirement went into effect as of August 2024.

#4 – Exempt Apartments

There are several type apartments which are exempt from GCE. These include, but are not limited to apartments that are subject to rent stabilization or other regulatory agreements, owned by “small landlords” (i.e. landlords that own less than 10 units in total), occupied by a superintendent or employee of the owner, condominiums or cooperatives, in buildings issued a temporary or permanent certificate of occupancy after January 1, 2009 (an interesting exception in that it does not state that the first certificate must have been issued on or after that date) or occupied by tenants where the monthly rent exceeds 245% of the fair market rent established by the United States Department of Housing and Urban Development.

FEATURING: HEAT WAVE

A new exhibition combining works by blue chip and emerging artists with digital art and NFTs

Sally Buselt Elementary Opens in Menifee

As the population of Riverside County, California, continues to grow, so does its need for schools. Helping is the recent grand opening of Sally Buselt Elementary School, an all-new $54.5 million K-5 elementary school will serve up to 600 students.

Totaling 10.3 acres at 29810 Wickerd Road in Menifee, the new campus includes 23 classrooms, a kindergarten building, an administration building, library, food service kitchen and multipurpose room, with the various buildings laid out in a horseshoe configuration. The site boasts a modern multipurpose room with a state-of-the-art audiovisual system, play and track fields and playgrounds for children’s recreation. There will also be a 103-stall parking lot with student pickup and drop off areas.

“We’re extremely pleased to continue building our presence in Menifee,” said Andy Feth, a project executive at C.W. Driver Companies, which oversaw the construction of the elementary school and several other educational facilities in the region. “Sally Buselt Elementary School will serve as a benchmark of excellence in educational infrastructure, with a commitment to quality at every turn.”

Guests from the board, cabinet, district staff, elected officials, faculty, students and parents gathered on site for a ribbon cutting ceremony to honor the legacy of beloved first-grade teacher Sally Buselt, who died in 2001 in a car accident not far from the new school’s location, and learn about the future of teaching and learning at the brand-new campus.

This is the second project from C.W. Driver Cos. for Menifee Union School District, following the reconstruction of Menifee Valley Middle School, which was completed in 2022. Four hundred students began matriculating at the new school in August.

C.W. Driver Cos. has started its third project for the district, Kathryn Newport Middle School Phase 2, which is slated to be completed in the summer of 2025. Menifee, which incorporated in 2008, was recently ranked as the ninth-fastest growing city in the U.S. with a population over 100,000. From 2017 to 2022, Menifee’s population rose by 17.4%.

C.W. Driver partnered with architect DLR Group | BakerNowicki.

Photos by Philip Smith, National Aquarium

Celebrating Wetlands and the Sea

It only makes sense that an aquarium should also celebrate wetlands as well as the seas themselves — and that’s what multidisciplinary architecture firm Ayers Saint Gross has done with the just-completed landscape architecture of the National Aquarium Harbor Wetland in Baltimore.

With a prime location in Baltimore’s Inner Harbor and a goal of transforming its campus into a Chesapeake Bay demonstration landscape, the aquarium worked with Ayers Saint Gross to produce a sustainable and highperforming floating wetland on 10,000 square feet between Piers 3 and 4 in Baltimore’s Inner Harbor.

The project provides a free outdoor exhibit in which the National Aquarium can educate the public and study the harbor. The habitat allows visitors to immerse themselves in a salt marsh habitat like those that existed in this space hundreds of years ago. The learning dock will act as a new civic anchor in the Inner Harbor, drawing visitors in to experience the wildlife that fills the harbor.

In addition to being a social space, the wetland utilizes over 30,000 grasses and shrubs combined with water aeration technology and introduces a new kind of floating wetland that features layered topography with planting surfaces at tiered elevations to promote a variety of microhabitats and attract a greater diversity of species to the area,

Once the plants mature, the exhibit will act as green infrastructure to promote healthy clean waters, attract native species, and provide a variety of habitats to support a strong ecosystem. The wetland is already attracting wildlife to the area, including river otters, fish, ducks and Maryland blue crabs.

The Harbor Wetland project was born out of an earlier Waterfront Campus Plan, also completed by Ayers Saint Gross. That project led to the design of a Floating Wetland Prototype, on which Ayers Saint Gross worked with the National Aquarium and Biohabitats, McLaren Engineering Group and Kovacs, Whitney & Associates in continuation of Studio Gang’s EcoSlip concept.

ARCHITECTURE | ENGINEERING | CONSTRUCTION

MADGI redesigned the preexisting utilitarian stair that joins the 18th and 19th floors by enlarging the opening to 14.5 feet x 12 feet and converting it to an architectural statement by installing black steel handrails, which match black steel wall frames and furniture elements throughout the office.

Photo by Ola Wilk Photography

Supporting the Caregivers Through Design

The philosophy that caregivers also need a bit of TLC is a huge part of interior design firm Montroy Andersen DeMarco’s design of Vibrant Emotional Health’s recently completed national headquarters at 80 Pine St. in Manhattan, New York City. Vibrant’s offices span 60,000 square feet across the 18th and 19th floors of the 23-floor building, which is owned and managed by Rudin Management Company.

Vibrant connects individuals and families with emotional support and care when, where and how they need it. The firm runs community programs for people at all stages of life, and state-of-the-art crisis lines like the 988 Suicide & Crisis Lifeline, NYC 988, the Disaster Distress Helpline and the NFL Life Line. The organization has nearly 1,000 employees, of whom over 200 are based in New York City.

“Montroy Andersen DeMarco created a design that met our requirements for a very light, calming space that is welcoming to both employees and visitors,” said Lesleigh Irish-Underwood, chief external affairs officer and head of brand at Vibrant Emotional Health. “While we have adopted the hybrid/remote environment, we encourage both personnel and clients to take advantage of the well-designed and inviting workspaces and meeting facilities. It is an investment in the well-being and productivity of our dedicated staff. By fostering a positive and collaborative environment, we aim to empower our team to continue making a meaningful impact on mental health initiatives nationwide.”

Montroy Andersen DeMarco (MADGI) worked with contractor Benchmark Construction to complete the project, located in the historic Seaport District.

“Vibrant’s $10 million, two-story space is divided into 10 neighborhoods that offer dedicated space for the company’s different departments. The interiors feature the firm’s signature blue color and other branding elements, most visible in the expansive social areas and lounges as well as in the elevator lobby,” said Steven Andersen, a principal at MADGI. “The final design is a result of a collaboration between Vibrant, Rudin Management and MADGI’s design team.”

The two floors house national programs, executive and operations, people operations, finance, corporate excellence, information technology, communications, Here2Help (H2H) Connect crisis contact center, EPAE and business development departments, referred to as “neighborhoods.”

The employee-centric, highly flexible design emulates hospitality-like features and furnishings, with each neighborhood offering several types of workspaces, including open areas with hoteling arrangements, lounges, small and large meeting rooms, counter-type work spaces, private telephone rooms, shared large conference rooms on both floors, private offices for senior executives and wellness and mother’s/lactation rooms.

“One of the design challenges we faced was figuring out how to introduce sufficient natural light into the space, especially on the 18th floor. The design team chose to locate private offices closer to the core of the building and line the perimeter of the

floors where the windows are located with open work stations and lounge areas,” explained MADGI Job Captain Neely Leslie, Well AP. “On the 19th floor, the meeting rooms on the floorplate’s perimeter are completely glazed for the same reason. Thanks to these solutions, both floors feel very open and full of daylight.”

The 19th floor houses the majority of shared spaces and has a reception area, adjoining lounge and coffee bar and pantry, as well as executive and administrative offices. Exiting the elevator on the 19th floor to the east, one enters a voluminous reception area with double-height ceilings and a cloud lighting system by Hay. A coffee bar, lounge and waiting area are adjacent to the reception area and are further surrounded by conference and meeting rooms that can be expanded by opening up the glazed walls.

An employee pantry with bench seating and tables and chairs houses a lounge area and a counter with stool seating that incorporates a high-end coffee making system. Beyond the pantry is an open office for counselors and several private offices, with IT workstations nearby.

The 18th floor provides space for employee and back-office functions. The Library room sports darker walls and lounge-type furniture for comfort and ease of focus for individual quiet work. There is also an L-shaped open lounge with soffits, bench seating, tables and a counter east of the elevator lobby, as well as conference and meeting rooms, a training room and a studio sound room for recording marketing and training videos.

“We incorporated Vibrant’s light and dark blue brand colors into many of the design elements, especially the exposed ceilings in the reception area and the elevator lobby on both floors. The intent of the light blue ceiling color in the reception area was to refer to blue skies with light white clouds that are represented by the cloud lighting system of ball-shaped suspended light fixtures,” Andersen said.

As a way to welcome visitors and employees and communicate Vibrant’s identity, MAGDI installed custom wallpaper in the elevator lobbies that has a pattern of blue exclamation points that was copied from Vibrant’s logo. Lighter blue elements were used on the 19th floor and darker blue ones on the 18th floor to differentiate the two levels of the office.

“We narrowed the color palette down to these two shades of blue to create consistency and a calming effect,” Andersen explained.

The team also included furniture consultant Creative Office Resources, MEP engineer Loring Consulting Engineers and structural engineer Severud Associates.

The space features MillerKnoll, Hay, Darrab and Allermuir furniture supplied by Creative Office Resources, Muuto cloud lighting and linear LED fixtures by National Lighting. Tagwall manufactured the glazed office and conference room walls. 71 Visuals fabricated the custom wall paper in elevator lobbies. The caret tile flooring is by Shaw Flooring.

The 18th floor library room provides a dedicated space for individual quiet work. It features darker walls and lounge-type furniture for comfort and ease of focus.

Photo by Ola Wilk Photography

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Real Estate Veteran Knight Joins Berkshire Hathaway HomeServices California Properties

DeSimone Consulting Engineering Announces New Managing Principal Executive Changes

Kelly Knight, a market leading agent since 2005 and a former real estate attorney, has joined the Santa Barbara office of Berkshire Hathaway HomeServices California Properties.

“Kelly’s business sense and tactful yet strategic negotiating style have made her a perennial market leader in our area for years,” said Kyle Kemp, regional vice president for Berkshire Hathaway HomeServices California Properties in Santa Barbara and Ventura counties. “Her long list of achievements in real estate are no surprise given the strength of her resume and extensive professional background.”

Knight spent 15 years practicing law at one of Santa Barbara’s top firms prior to her transition to real estate.

Leveraging her experience in contract law, she served as the director of the Trust and Estates division for her previous brokerage, helping family members and executors manage nuanced transactions.

“Helping my clients during such a tender time in their lives is a responsibility I take extremely seriously … my

experience in the legal field has been essential to my success,” said Knight. “Real estate and the law are similar in that both require a high degree of knowledge, preparation and diligence, along with uncompromising integrity and discretion.”

Knight has amassed a career sales volume in excess of $375 million, personally managing over 230 transactions. She holds a Juris Doctorate from the University of the Pacific, McGeorge School of Law, a B.S. in Business from Bucknell University, and a Certificate of Mediation from Pepperdine University.

The Santa Barbara Association of Realtors honored Knight with the Howard Gates award in 2023 for navigating one of the most complex transactions of the year. She was also honored with the Realtor Community Service award.

Knight leads a team that includes Gabe Grandcolas, a graduate of the University of Southern California’s Marshall School of Business. A Santa Barbara native, he brings extensive market knowledge and concierge-level service to their clients.

Global engineering services leader DeSimone Consulting Engineering announced a new round of promotions, including the appointment of structural engineer, Mark B. Plechaty, P.E. as a managing principal.

“Mark Plechaty’s talent in developing innovative structural engineering design solutions and managing some of the firm’s largest and most complex projects has been critical to the success of countless iconic buildings from NYC to the UAE,” said Stephen DeSimone, chairman and CEO of DeSimone Consulting Engineering. “His astute, affable and highly effective leadership style has inspired those around him and earned him the respect of every client and project team he’s worked with.”

Plechaty has played a major role in the company’s growth since joining the structural engineering practice in 1995, having devoted much of his professional career to DeSimone. He was named a firm principal in 2019 in recognition of his project achievements and contributions to management and the company’s ongoing growth trajectory. He has worked on more than 100 projects at the firm.

Most recently, Plechaty led the award-winning officeto-residential conversion of the landmarked One Wall St. tower in Manhattan. He currently leads the structural design team for the reimagining and revitalization of the historic One Times Square into a premier tourist destination, as well as the transformation of the historic, block-long Terminal Warehouse into a mixed-use office complex, both in Manhattan.

A registered professional engineer, Plechaty has overseen the design and project management of numerous other tall towers in New York City, including the award-winning skyscrapers at 125 Greenwich St. and 111 Murray in Lower Manhattan and the Skyline Tower in Long Island City, Queens.

While based in DeSimone’s Abu Dhabi office, Plechaty directed overseas operations in the United Arab Emirates for four years. His work there included such projects as the 48-story Emirates Pearl Hotel, the Al Maryah Office Tower, the Special Security Hospital and the Zayed Military Hospital.

Photo via Business Wire

Spectorgroup Welcomes Tzolova to New York City Office

Multidisciplinary design practice Spectorgroup has added Senior Designer Gergana Tzolova to its New York City team. In her new role, Tzolova will draw on 10 years of experience across the hospitality and commercial sectors, furthering Spectorgroup’s commitment to connecting people to their environment through research-backed design solutions.

“Gergana will be an excellent addition to our New York City team,” said Principal Scott Spector. “Her collaborative spirit and dedication to shaping innovative spaces that speak to the core of each client’s ethos aligns perfectly with our mission here at Spectorgroup.”

Throughout her career, Tzolova has been instrumental in developing commercial offices for creative, tech and financial agencies as well as hospitality environments including restaurants, hotels and amenity centers. She has worked closely with such clients as Empire State Realty, MLBPA,

Booking.com and Conrad Hotels. Her design approach focuses on creating meaningful, experiential spaces in an overstimulating world, and she views each project as an opportunity to collaborate with a client and create something entirely new.

In her role at Spectorgroup, Tzolova will focus on devising creative solutions to design challenges for clients across a range of sectors including commercial, mixed-use, retail, and education. She will work closely with the internal design team as well as clients, design partners and contractors to guide those solutions from concept to reality.

Spectorgroup, which is celebrating its 60th anniversary this year and recently announced the opening of a Miami office, continues to shape the built environment through innovative spaces that enrich the lives of those who inhabit them. Clients have included including Carlyle Group, Stagwell and The SpringHill Company.

Newmark Hires Duffy as Executive Managing Director of Capital Markets Strategic Advisory Group

Newmark announced the hiring of Matt Duffy as executive managing sirector to co-head its Capital Markets Strategic Advisory group alongside Andrew Warin, cementing the group’s leadership. Duffy and Warin will focus on strategic advisory and liquidity solutions, expanding client service and further enhancing Newmark’s advisory services across asset types, including residential, industrial, retail, office and alternative asset classes. Duffy brings two decades of experience arranging programmatic joint ventures, project and fund-level capital raises and entity-level transactions across various equity structures.

“Newmark is dedicated to providing the highest caliber and most holistic capital markets advisory services to our clients globally. The addition of industry veterans like Matt to our team further strengthens our ability to meet evolving market demands and consistently deliver exceptional results,” said Newmark President of Capital Markets Chad Lavender. “We’re thrilled to collaborate with Matt, whose unique blend of investment banking, capital raising and advisory experience will greatly enhance our service

offerings and drive continued success for our clients.”

Duffy has had a heightened focus on multifamily and alternative real estate asset classes across various industries, including self-storage, manufactured housing, student housing, single-family rental and build-to-rent. Formerly helping to lead the U.S. Housing Platform NS Structured Transactions Group at Eastdil Secured, Duffy has led sales, joint ventures, equity raises and capitalizations ranging from approximately $50 million to $4 billion on behalf of large public and private entities across the U.S.

Based out of New York, Duffy will report to Newmark Chief Executive Officer Barry Gosin, and work closely with U.S. senior capital markets executives including Jonathan Firestone, Jordan Roeschlaub, Doug Harmon, Adam Spies, Kevin Shannon and Rob Griffin.

Newmark is strategically expanding its comprehensive suite of capital markets service offerings, with key experts providing services across various sectors.

Safe & Green Holdings Corp. Promotes Cross to Executive Vice President

Safe & Green Holdings Corp., a developer, designer and fabricator of modular as well as container-based structures, has promoted David Cross to executive vice president of SG Echo LLC.

Cross, a graduate of the Maine Maritime Academy, served as a deck officer, predominantly working with Maersk Line Limited. His career led him to managerial roles in intermodal/equipment container control spanning the U.S. and China, with the Maersk and Cosco Lines.

Among his accomplishments, he leveraged his industry expertise to utilize containers as not simply instruments of trade but rather as instruments of construction. This innovative approach with containers as building blocks for construction was notably featured on the Bob Vila Home

Improvement Show and HGTV.

Cross, with fellow founders of the company, developed a design and fabrication methodology centered around transforming standard cargo shipping containers into code-compliant, engineered structures. This led to the first recognition of the use of recycled materials by the International Code Council, marking a significant advancement in the field of construction and engineering.

“David’s dedication and innovative approach have been instrumental in driving our company’s growth and success,” said Paul Galvin, chairperson and CEO of Safe & Green Holdings. “His commitment to excellence and his visionary leadership have consistently inspired our team and set new standards in the industry.”

Photo courtesy of Newmark

Photo via Globe Newswire

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OUR EXPERTISE AT A GLANCE

Residential Property Management

Financial Management

Risk Management

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Project Management

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NICK OGDEN Founder and CEO

The Clear Blue Company

Nick Ogden is the founder and CEO of The Clear Blue Company (CBC), a Nashville-based private equity real estate firm. CBC manages over $850 million in assets and oversees 4,854 multifamily units across 16 markets in the United States. Ogden’s connection to Nashville began in 2003 when he moved to the city to attend Vanderbilt University. Currently living in East Nashville with his wife and two daughters, he engages with the community in a variety of ways, serving as a board member of the Nashville Classical Charter School and the East End Neighborhood Association.

Beyond his role at CBC, Ogden is an engaged entrepreneur and an active participant in the Entrepreneurs Organization, serving as a mentor through the Nashville Entrepreneur Center and Urban League’s Red Academy. His commitment to addressing housing issues and fostering community development reflects his deep ties to Nashville and dedication to creating positive change.

How long have you been in the industry?

I have been working within the real estate industry for nearly 17 years, focusing primarily on the multifamily and investment sectors of the market.

How did you get into the business?

I was first introduced to multifamily real estate while in college, thanks to my best friend’s father who owned an apartment complex and taught me the ins and outs of the business. A person that I look up to, Jimmy Webb, helped me secure an internship with Covenant Capital Group (CCG),

Nick Ogden

and this was also a pivotal step in my career as I went on to join the firm as an asset manager in 2007 following graduation. CCG is one of the best value-add private equity shops in the country, and I owe much of my career to the education that I received from the principals at that firm.

I learned the art of renovations and eventually purchased my first duplex in 2011. While my original intention was to create a portfolio of passive income assets, in 2017, I decided that I wanted to be a part of solving the affordable housing crisis. It was in 2019 that we accelerated scaling The Clear Blue Company (CBC) and began to fully build out the preservation and development platform.

Who inspires you?

I’m inspired by the residents we serve. The housing crisis is something that affects everyone and is more relevant than ever today. The team at CBC is dedicated to being a part of the solution and this is reflected in our mission and values.

I am proud of our efforts, and I look forward to growing our platform, where we can influence change to increase the number of units that are preserved and created across the Southeast.

Why specialize in affordable housing?

We are all fueled by a shared commitment to solving one of the largest challenges facing our nation — affordable housing. As an elder millennial, I’ve seen how my generation is especially focused on making a positive difference in the world and pursuing meaningful work. At CBC, we believe that everyone deserves a clean, safe and affordable place to call home, and we lead with the motto that “Community is based on one rule: Love your neighbor.” Specializing in affordable housing has provided our team with the vehicle and mechanism in which we can serve others, while still creating strong returns for our team and our investors.

How great is the need?

The scale of the United States’ housing shortage is staggering and complex. Current estimates show that the country is short by over seven million

apartments. This supply gap is particularly acute in the Southern and Western regions, where rapid population growth and shifting demographics have intensified demand. Nashville alone is projected to need an additional 53,000 units by 2030, as the city’s population has risen by approximately 17% over the past decade.

How is it attractive to investors?

Given the scale and severity of the affordable housing crisis, even a small contribution to the solution will result in significant financial returns.

Our track record at CBC has been outstanding, and we have been fortunate to perform deals that optimize returns. I spend a lot of time thinking about macroeconomics and our business model, which has led to several conservative approaches and strategic decision-making. For example, the last time we had floating-rate debt in our portfolio was early 2021. We also purchased a 1,200-unit portfolio in June 2020, as we were focused on the economic thesis behind workforce housing.

Solving affordable housing is done in two ways: preserving the existing supply and building new units. This two-pronged approach allows us to operate different business models cohesively and be nimble in our reaction to market conditions. Essentially, it has empowered our team to transact at times when others may not.

What keeps you up at night?

I sleep well. That said, the thing that I spend most of my time thinking about is how we can best serve our residents. One factor that has become clear in the issues surrounding affordable housing is that an owner’s primary customer is not their resident, but often their investor. Operators and owners are compelled to generate the best return on investment for their investor base, and I am focused on how to align incentives for our investors with those of our residents. Turnover is the single largest controllable expense, and if we can spend time making our communities a better place to call home, we can then reduce these expenses. This allows both our residents and our investors to succeed.

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Proptech’s Potential

The rollercoaster growth pace of proptech’s early years is a memory, but what the sector overall has been surprisingly resilient. Even as total venture capital investment has declined, projections call for a steady growth in value for the next eight years. The potential of new tech including the use of AI to predict future needs should feed a strong future, as we can see by the numbers.

$89.93 billion

The projected value of the global proptech market by 2032, a combined annual growth rate of 11.9% from 2024 to 2032. (Fortune Business Insights)

$11.38 billion

The value of venture capital raised by proptech companies globally in 2023, down from a high of $32 billion in 2021. (Statista)

50

The number of proptech capital raises that exceeded $20 million in 2023. (Houlihan Lokey, “2023 PropTech Year in Review,” February 2024)

70%

The percentage of global fintech funding accounted for by the Americas in 2023. (KPMG)

10,000

The projected number of proptech companies globally by the end of 2024. (Expert Market Research)

144

The number of completed proptech deals in 2023, with venture capital accounting for the vast majority of transactions. (Valley Bank, “The Present and Future of Proptech: Charting a Clearer Path in Murky Markets,” 2024)

MARCUM’S NATIONAL CONSUMER PRODUCTS GROUP LEADERS:

MICHAEL SACCO, CPA Partner & National Consumer and Industrial Products Leader michael.sacco@marcumllp.com

RONALD FRIEDMAN, CPA Partner & California Consumer and Industrial Products Leader ron.friedman@marcumllp.com