MANN REPORT JUNE/JULY 2024

Stephen Siegel

Robert Scheinman

Laura Gilbert

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

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Debra Hazel

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Jeff Mann

ART

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Serena Bhullar

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Laura Chousa

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Madi McCreesh

Cover Photography

Sarah Borukhov

CONTRIBUTORS

Frank DeLucia

Joel Ditchik

Garrett Kelly

Kris Kiser

Pamela Knudsen

Carol A. Sigmond

Steve Tishco

Curtis Williams

BUSINESS

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Joshua Fried

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DIGITAL MEDIA

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ONE MANN’S OPINION

How is it June already?

As we head into summer, I’m excited to introduce you to a new friend, Leo Jacobs, managing partner of law firm Jacobs P.C. Despite his relatively young age, he’s built an impressive track record of helping ma jor real estate owners, many of them much older than he, restructure loans, cope with bankruptcy and solve complex financial deals. He’s a force of nature.

A quick update on the National Realty Club, as we spend time this summer planning for an exciting series of fall chats, as well as our Annual Golf Outing, scheduled for October 7 at the Fresh Meadow Country Club. We’ll be honoring Mark R. DeFazio, president and CEO of Metropolitan Bank and Daniel Vitulli, national partner in charge of Marcum LLP’s Real Estate Group, as well as presenting the Michael Kerr Humanitarian Award, named for my dear friend, to Mark F. Engel, CEO of Langsam Property Services Corp.

For more information on the National Realty Club, the Foundation (which supports causes that improve life for all New Yorkers) or our events, please contact me or Penny Herrera at pherrera@nationalrealtyclub.org.

Meanwhile, join all of us at Mann Publications in taking a little time off. We’ll see you in August.

“For everything you have missed you have gained something else.” - Ralph Waldo Emerson

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Photo

Photo by Sarah Borukhov

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

Thank heavens, it’s almost summer, and time to think and write about all things beautiful. Welcome to our Design issue.

As a former Hudson County, New Jersey resident, I drove across the Bayonne Bridge most weekends to get back to Brooklyn, so it’s a particular thrill to report on the film studio being developed not far away. We also look at the practical aspects of historic renovation, beautiful new developments in Florida and Palm Springs, the growth in youth sports and Christian Rogers’ unique point of view about the luxury market in New York City.

Our columnists get into the details of tax law, management and even shortterm rentals, a perfect read as we all head out for a bit of vacation at some point this summer.

Speaking of which, that’s exactly what we at Mann Report are doing with this double issue. See you in August!

The size of our company is our ultimate strength.

Simplifying your life as a board member is our purpose.

“Being under the FirstService umbrella is more than building management. We’ve refinanced our mortgage through their financial team, completed major cap ex projects with the construction management team, and are now working on Local Law 97 compliance and an EV charging installation. The board has never had access to this level of expertise and I feel like we’re just getting started.”

- Stephen V., NYC Board Member

Let’s talk. www.fsresidential.com/new-york 212.634.5410

Marcum Hosts Annual Retail & Consumer Products Symposium

Photos by Darren Friedman

At the 2024 Marcum Consumer Products & Retail Symposium, held at the E-Central Downtown Los Angeles Hotel, industry leaders addressed the complex landscape of geopolitics, labor dynamics and evolving consumer trends.

Leaders from the fashion and retail sectors were briefed on the logistical headwinds affecting merchandise. Notable challenges include geopolitical tensions affecting transit through the Suez Canal and drought affecting the Panama Canal. Furthermore, the looming expiration of East Coast port labor contracts on September 30 while California’s issues are settled, resulted in one message for retailers.

“Go west, young man,” said Andrew Rotondi, chief operations/ information officer for Dynamic Worldwide Logistics USA. Retailers should also consider splitting shipments among different distribution centers. “Plan ahead and ship early.”

Effects from COVID-19 pandemic continue to affect what people are buying, said Marshal Cohen, chief retail advisor for Circana (formerly NPD Group).

“Thirteen of 15 areas that are seeing growth are related to COVID-19,” he said, including rising food prices, beauty items and a greater focus on home care and health care. “It changed how we buy and where we buy.”

People are now buying what they need and when they need it, creating a mismatch with traditional retail scheduling.

“The consumer is on a weather calendar,” Cohen said. “Retail is on a merchandise calendar, and they’re out of sync.”

Sponsors of the event were Mann Publications (publisher of Mann Report), Clark Hill, CIT First Citizens Bank, Dynamic Worldwide Logistics USA, White Oak Commercial Finance, Hub International, American Business Bank, Milberg Factors Inc., Rosenthal & Rosenthal, Krieger Worldwide, Insperity, Mahl & Associates, Retail Smart Guys and MMGNET Group.

“Marcum is proud to continue working closely with Jeff Mann to create the Marcum Retail Symposium for our guests and friends who have supported this great event for many years, with even more to come,” said Ronald Friedman, co-leader of Marcum LLP’s National Retail and Consumer Products Advisory Group.

Andrew Rotondi, Dynamic Worldwide

Marshal Cohen, Circana

Ronald Friedman, Marcum LLP

Ed Park, First Bank and Sierra Merille and John Merille, Zacharias Consulting Group

Martin Motesi, Come Alive Organics; Jayson Morgan, Marcum LLP and Daniel Sorger, J.P. Morgan & Co.

Abdiel Sanchez and Laura Noll, Insperity and Gino Clark, White Oak Commercial Finance

Paul Yang, CIT Commercial Services; Ronald Friedman, Marcum LLP; Marshal Mahl, Mahl & Associates and Mike Earnhart, CIT Commercial Services

Jason Carmona, Republic Business Credit; Chris DeRosa, CIT Group Inc.; Nick Susnjar, Comerica Incorporated; Thomas Novembrino, Gateway Trade Funding and Cameron McIntyre, Punch Gunk LLC

Zachary Martin, Assembled Brands; Robert Krieger, Norman Krieger and Andrew Miller, Banc of California Inc.

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

Laura Knoll, Insperity; Sungwook Han, White Oak Commercial Finance and Christopher O’Connor, Savills

American Friends of the Hebrew University Honors Edelman and Kappler with The George A. Katz Torch of Learning Award

Photos by Heckler Photographers

Milbank LLP Chairman Scott A. Edelman and Prudential Financial

General Counsel Ann M. Kappler received the 54th Annual George A. Katz Torch of Learning Award (TOL), presented by American Friends of the Hebrew University (AFHU) at Cipriani Midtown.

At the annual luncheon event, attended by over 300 guests, AFHU President Pamela Emmerich said, “AFHU is proud to honor Ann Kappler and Scott Edelman, two extraordinarily accomplished individuals who add luster to the Torch of Learning Award. Throughout their careers, they have distinguished themselves in the legal profession and their community.”

The George A. Katz Torch of Learning Award is named in memory of the late George Katz, founding partner of Wachtell, Lipton, Rosen & Katz.

As executive vice president, general counsel and chief compliance officer at Prudential Financial, Ann M. Kappler is the head of law, compliance, business ethics and external affairs, leading a global team of over 1,100 employees. She serves on the boards of directors of the Pro Bono Partnership (treasurer) and the National Health Law Program (chair). She has also actively served on the boards of the Washington Lawyers Committee for Civil Rights and Urban Affairs, Appleseed Foundation and Global Rights and was a longtime member of the board of trustees of the Lowell School in Washington, D.C., where she served as chair. She is a frequent speaker on topics such as legal and compliance best practices, diversity and inclusion, and is an advocate for workplace mental health issues.

David Ogden, chair of the WilmerHale Government and Regulatory Litigation Group, presented Kappler with her award.

“I am so honored to be receiving the prestigious George A. Katz Torch of Learning Award together with Scott Edelman,” said Kappler. “Hebrew University’s Faculty of Law is the preeminent law school in Israel, which educates outstanding future global leaders and innovators. I am humbled to be recognized by an institution that has graduated so many distinguished legal scholars. I thank American Friends of the Hebrew University and am supportive of their efforts.”

Edelman is chairman of Milbank LLP and a member of the firm’s Litigation & Arbitration Group. He specializes in high-stakes, bet-thecompany litigation across several substantive areas of the law, including securities, commercial and white-collar crime. Prior to joining Milbank, he served as an assistant United States attorney in the Southern District of New York from 1990 to 1994. Edelman started his career at Wachtell, Lipton, Rosen & Katz and is a member of the board of directors of the Legal Aid Society.

Atara Miller, a New York partner in the Milbank LLP Litigation & Arbitration Group and a member of its Global Executive Committee, presented Edelman with his award.

“I am honored and humbled to receive this award, together with my esteemed colleague, Ann Kappler,” Edelman said. “The Hebrew University of Jerusalem serves a vital role in educating Israel’s next generation of leading minds. In these uncertain times, the support that American Friends of the Hebrew University provides to this critical institution is more important than ever.”

In addition, featured speaker, Tomer Broude, dean of the Hebrew University Faculty of Law, gave a talk on “October 7th and its Aftermath: Legal Challenges and Responses.”

Co-chairs of the 54th Annual George A. Katz Torch of Learning Award. with honorees (top center left) Ann Kappler and (top center right) Scott Edelman

Frances R. Katz, AFHU

Atara Miller, Milbank LLP

Co-chair H. Rogin Cohen addresses the award luncheon

Ira Lee Sorkin, Mintz & Gold LLP; Pamela Emmerich, AFHU; Julie Gal, AFHU Northeast Region Board and Tomer Broude, Hebrew University Faculty of Law

Pamela Emmerich, AFHU and Adam O. Emmerich, Wachtell, Lipton, Rosen & Katz

Ann M. Kappler, Prudential Financial with co-honoree Scott A. Edelman, Milbank LLP

David W. Ogden, WilmerHale LLP and Ann Kappler

Scott A. Edelman, Milbank LLP; Pamela Emmerich, AFHU and Ann Kappler

Crohn’s & Colitis Foundation Greater New York Chapter Hosts Annual Women of Distinction Luncheon

The Crohn’s & Colitis Foundation hosted its 31st annual Women of Distinction Luncheon, an event honoring outstanding women who have made significant contributions in the fight against Crohn’s disease and ulcerative colitis, at the New York Hilton Midtown in New York City.

Fashion designer and “Project Runway” judge Brandon Maxwell presented his runway collection.

The Women of Distinction Luncheon celebrates exceptional individuals from various industries who are dedicated to improving the lives of women, the inflammatory bowel disease (IBD) community and society as a whole. The event raises funds to support the Foundation’s ongoing efforts to find cures for Crohn’s disease and ulcerative colitis, collectively known as IBD, which affects nearly one in 100 Americans.

From its beginnings in 1993, the luncheon has raised more than $34 million for research, support and educational programs. This event raised over $1.56 million.

The following are this year’s honorees, who have made significant contributions to the Crohn’s & Colitis Foundation:

Photography by Michael Yorkes

June Jacobs and Rochelle Jacobs, 2024 Women of Distinction — June Jacobs, a trailblazer in the skincare industry for more than three decades, co-founded Peter Thomas Roth Clinical Skin Care and serves as its president. She has demonstrated a commitment to socially responsible skincare through her June Jacobs and Naturally Serious skin care brands, which she launched alongside her daughter Rochelle. She also supports of the Crohn’s & Colitis Foundation.

Rochelle Jacobs, managing director of June Jacobs and Naturally Serious, brings her leadership to these brands while also managing IT and e-commerce for Peter Thomas Roth Clinical Skin Care.

Edrice Simmons, vice president, U.S. Oncology, AbbVie, Woman of Distinction in Healthcare, started her career at Eli Lilly and Company, garnering acclaim for advancing care in endocrinology, oncology and women’s/ men’s health, earning the Chairman’s Award for fostering diverse talent. Joining AbbVie in 2016 as vice president of gastroenterology, she prioritized elevating standards of care for IBD patients, collaborating with the foundation and engaging the scientific community. At AbbVie, Simmons accelerated the approval of two pioneering IBD therapies,

championing female gastroenterologists and raising significant funds — $200,000 personally and $1 million from AbbVie — to support IBD research.

Bella Pass, Rising Star Honoree, was diagnosed with Crohn’s disease at age 13. Despite ongoing treatment, she maintains her daily activities as a high school freshman, including school, sports and exploring various lifestyle modifications and therapies to manage her condition. Supported by her family, friends, and a dedicated medical team led by Dr. Marla Dubinsky at Mount Sinai, Pass remains optimistic about achieving remission and supporting others in the Crohn’s and colitis community. Her resilience, coupled with her passion for writing and advocacy, drives her determination to thrive.

Lori Stokes, former co-host of Fox 5’s “Good Day New York,” hosted the event.

“We are honored to recognize these outstanding people who have made a significant impact in the fight against Crohn’s disease and ulcerative colitis,” said Michael Osso, president and CEO of the Crohn’s & Colitis Foundation. “Their contributions have been invaluable, and we are grateful for their dedication and commitment to our mission.”

David Hirsch, Rhondell Domilici and Jeffrey Justin

Dan Crown and Dr. Howard Sobel

Debra Clements and Edrice Simmons

Lori Stokes

Dena Pass, Bella Pass and Stacey Feller

Edrice Simmons and Dr. Marla Dubinsky

Michael Osso and Marcy Nanus

Kansas City Current Announces Plans for Riverfront Mixed-Use District

The Kansas City Current, in collaboration with Palmer Square Capital Management, Marquee Development and the Port Authority of Kansas City, Missouri (Port KC), unveiled plans for the next phase of its transformational development on the Missouri Riverfront in downtown Kansas City. Building upon the opening of CPKC Stadium, the first purpose-built women’s professional sports stadium in the world, the Current will develop a mixed-use district anchored by the stadium, Berkley Riverfront Park and the Missouri Riverfront.

This next phase will add $200 million-plus in private funding, with all phases of the development exceeding $800 million in total investment. The project will break ground at the end of 2024, targeting a 2026 completion date.

The development will extend the fabric of Kansas City directly to the water’s edge, providing a pedestrian-focused experience for Berkley Riverfront residents, KC Current fans and visitors alike. Along with adding hundreds of multifamily residential units to the neighborhood, the project will create new public gathering and recreational spaces for the city, including a new town square and a riverfront promenade — continuing the work by Port KC to bring life and vibrancy to the Missouri Riverfront.

Food and beverage offerings will showcase local restaurateurs, creating a new destination for the community and unique amenities for adjacent neighborhoods. The public gathering areas will be programmed yearround, with family-friendly events like movie nights, food festivals, fitness classes, live music and more.

“Kansas City was founded at the confluence of the Missouri and Kansas Rivers. With the next phase of our investment in Berkley Riverfront Park, our goal is to reconnect Kansas Citians to their riverfront, bringing even more energy and activity to the water,” Angie Long, co-founder and coowner of the KC Current said. “We believe this foundational investment will benefit our community for years to come and cement the Berkley Riverfront as one of Kansas City’s great neighborhoods for residents

The district will attract more visitors to the Berkley Riverfront area and drive economic growth, housing opportunities and job creation for Kansas City and the State of Missouri. An economic impact study estimates that the first phase of this project will deliver over $210 million and $310 million of city and state economic output, respectively, over 30 years. Additionally, 10% of residential units across all phases of the development will be set aside for residents at a 50% area median income affordability threshold, creating hundreds of new affordable units for the city across all phases of the development.

“The long-neglected Kansas City Riverfront has been reenergized in recent years through thoughtful investments by Port KC and our partners. From trails to murals, housing to hotels, we have set the stage for what a vibrant riverfront should be for all Kansas Citians,” said Jon Stephens, president and CEO of Port KC. “Our partnership with the KC Current and this world-class development team is supercharging our vision of a walkable, creative, diverse and exciting public space. The conversation about Berkley Riverfront has now turned from what could be, to what will be.”

Simon to Expand Woodbury Common Premium Outlets

New customer experiences including a VIP suite, a luxury hotel and stores including Roberto Cavalli, Maison Margiela, Ladurée, Bogner, Sferra, Bollicine Champagne Bar, Jil Sander, Eleventy and Reformation, are coming to Woodbury Common Premium Outlets in New York’s Hudson Valley, announced Simon.

The VIP suite will feature multiple private spaces with their own dressing rooms, an upscale lounge area with plush furnishings and curated art and a private kitchen. The opulent ambience will allow guests to explore the latest fashions from luxury brands in privacy and comfort. The VIP Suite will host private events, as well as offer personalized service and curated customer experiences. This multimillion-dollar suite is expected to open later this year in the heart of the center’s luxury wing, The Adirondacks District.

“Innovation and continually enhancing our idyllic shopping atmosphere, along with our collection of the most desirable brands, is what excites Woodbury Common’s shoppers, and we look forward to enhancing our guest service experience with our luxurious VIP Suite,” said Mark Silvestri, Simon’s president of development.

In addition to the hotel, a second parking facility and upgraded customer amenities including a new children’s play area, improved crosswalks and wayfinding and generous landscaping are planned. The multi-year

redevelopment is advancing through the permitting and entitlements process, and approvals are underway.

“This visionary project will further energize Woodbury Common, the Hudson Valley and the entire New York City metro area as a worldclass shopping and tourism destination that is so crucial to the region’s economic success today and in the future,” said Silvestri.

Photo via PRNewswire and visitors alike.”

Photo via PRNewswire

Golf Tennis

THE EVENTS

LVXP Announces Entertainment and Sports Arena Development on Las Vegas Strip

Real estate development company LVXP announced plans to deliver a new, experiential mixed-use development on the Las Vegas Strip that will be anchored by a technologically advanced entertainment and sports arena on the Las Vegas Strip. The project will be located on a 27-acre site at 2601 South Las Vegas Blvd.

LVXP’s development site is situated across from the newly expanded Las Vegas Convention Center, adjacent to Fontainebleau Las Vegas and near Resorts World Las Vegas. The multi-purpose entertainment and lifestyle venue is expected to feature an expansive retail plaza, stateof-the-art convention space, a destination casino and several ultraluxury hotels and residences. The site could serve as the home for a new NBA franchise, representing what the developer calls a significant development for Clark County and the community.

“We are honored to be stewards of this significant milestone in the city’s legacy,” said James R. Frasure Jr., CEO of LVXP. “Our commitment is to create a destination that captures the essence of Las Vegas and provides lasting benefits for the community. For me, this endeavor is more than a project — it’s a promise to uphold the spirit of innovation and enthusiasm that defines our local culture.”

LVXP’s multibillion-dollar development will create a highly immersive, technology-driven environment that blends elegant accommodations and vibrant culinary experiences with gaming and entertainment. The

project will prioritize sustainable development and green initiatives.

LVXP’s leadership team includes experts in real estate, finance, marketing, technology, sports and entertainment. In addition to Frasure, whose background involves successfully executing large-scale development projects, LVXP will benefit from the experience of Chief Construction Officer Nick Tomasino, who most recently served as senior vice president of construction at Madison Square Garden Entertainment, where he managed the construction of The Sphere.

VICI Properties to Provide Capital for The Venetian Resort Las Vegas

VICI Properties Inc. announced that it will provide capital to The Venetian Resort Las Vegas for extensive reinvestment projects through VICI’s Partner Property Growth Fund strategy. The investment will fund several projects, including hotel room product renovations, gaming floor optimization and entertainment and convention center enhancements, among others.

VICI has agreed to provide up to $700 million of financing through the Venetian Capital Investment, comprised of $400 million to be drawn in 2024 and an incremental $300 million that The Venetian Resort will have the option, but not the obligation, to draw in whole or in part until November 1, 2026. The initial $400 million investment will be funded in three quarterly draws based on a fixed funding schedule: $100 million in Q2 2024, $150 million in Q3 2024 and $150 million in Q4 2024.

“We are thrilled to continue to grow our partnership with The Venetian Resort by funding impactful expansion projects through our Partner Property Growth Fund,” said John Payne, president and COO of VICI Properties. “Since we acquired this marquee Las Vegas asset alongside funds managed by Apollo Global Management Inc. in 2022, The Venetian Resort operating team has driven impressive performance at the property, and we are excited to be a partner in their innovative efforts to maximize the economic productivity of this iconic asset.”

Incremental Venetian Rent will begin escalating annually at 2.0% on March 1, 2029, and commencing on March 1, 2031, will begin escalating on the same terms as the rest of the rent payable under the Venetian Resort Lease with annual escalation equal to the greater of 2.0% or CPI, capped at 3.0%.

Annual rent under the existing Venetian Resort lease will increase commencing on the first day of the quarter immediately following each capital funding at a 7.25% yield (the “Incremental Venetian Rent”). The

The Venetian Capital Investment is expected to be funded with a combination of cash and the partial settlement of outstanding forward equity sale agreements.

GTIS Partners, Hovnanian Enterprises Expand JV to Build 12,600 Homes

GTIS Partners, a global real estate investment firm with a focus on residential and industrial/logistics investments, and national homebuilder Hovnanian Enterprises Inc. have expanded their partnership to develop, construct and sell homes in a new joint venture of eight additional for-sale homebuilding communities. To date, the partners have invested in approximately 70 homebuilding communities through multiple joint ventures.

The eight newly added communities comprise 1,392 homes located across New Jersey, Florida, Delaware and South Carolina. In addition to being geographically diversified, these communities are diversified by product type, consisting of townhomes, condominiums and both marketrate and active adult single-family homes.

Approximately $115 million of capital will be invested in the joint venture, with Hovnanian contributing 30% of the capital requirement and GTIS Partners providing 70%. Total build-out costs are projected at approximately $800 million. Hovnanian will manage the day-to-day operations of the venture.

“With this transaction we have a partnership totaling $1 billion in equity across 15 joint ventures in high-growth markets across the United States, representing approximately $6 billion in total project costs across 12,600 homebuilding units,” said Tom Shapiro, founder, president and chief investment officer of GTIS Partners. “Hovnanian has proven to be a tremendous partner and we are thrilled to continue working with such a highly experienced homebuilder.”

William Raveis Real Estate, Mortgage & Insurance Acquires Carson Realty

Shelton, Connecticut-based brokerage William Raveis announced the strategic acquisition of Carson Realty, a family-owned real estate company serving the greater Hilton Head, Bluffton, and Lake Keowee, South Carolina areas since 2006.

William Raveis is a family-owned real estate company covering Connecticut, Florida, Massachusetts, Maine, New Hampshire, New York, Rhode Island, South Carolina and Vermont. It is a member of Leading Real Estate Companies of the World, the largest global network of 140,000 real estate professionals and 550 brokerages in over 70 countries. Following three successful company acquisitions last fall, William Raveis is connecting the dots in key luxury markets up and down the East Coast. The Carson Realty acquisition gives William Raveis a significant market share increase in the Hilton Head and Bluffton areas of Beaufort County.

“We look forward to our partnership with Carson Realty. It’s always exciting to join forces with another family-owned firm that shares our deep commitment to our agents and our communities,” said William (Bill) Raveis, CEO and founder, who launched the luxury real estate brand 50 years ago. “Our business model is unique. As operating partners, we help agents succeed with our world-class coaching, marketing and innovations like Raveis365, a one-of-a-kind communication and technology platform developed exclusively for us by Microsoft.”

Specialty mortgage and insurance programs also give clients access to over 40 national lender options as well as competitive insurance products like homeowners, flood, boaters, renters, umbrella and more.

“It’s a win-win to have William Raveis’ in-house mortgage bankers to help prequalify our buyers and sellers and insurance experts to help them navigate a complex insurance market with affordable options,” said Matt Rowe, a Carson Realty principal and broker-in-charge.

Greenbrook Partners Completes $3M Conversion of Former Convent into Sustainable Apartments

Greenbrook Partners, a privately held, vertically integrated real estate operating and investment company headquartered in New York City, has completed the conversion of a former convent at 784-786 President St. in Park Slope, Brooklyn into 12 modern, family-sized apartments.

The deteriorating, vacant building, acquired from the Sisters of St. Joseph, has undergone a comprehensive $3 million gut renovation completed over the past 20 months without any government subsidies. This redevelopment included converting 30 dormitory rooms into four two-bedroom duplexes and eight three-bedroom units with outdoor green spaces.

“We are thrilled to bring 784-786 President St. back to life, marking the completion of a project that adds valuable housing stock to Brooklyn and demonstrates our commitment to sustainability and the vibrancy and economic health of the community,” said Gregory Fournier, managing principal of Greenbrook Partners.

Greenbrook Partners also focused on reducing the property’s carbon footprint and adding to the neighborhood’s portfolio with modern, sustainable homes, by switching from gas to electric heating systems, the installation of LED lighting, the implementation of low-flow water fixtures and more. In addition, the building was transitioned from a nontaxable religious property to a taxable entity generating $83,000 of new annual property tax revenue for New York City.

Edina Realty Expands to Southwestern Florida

Edina Realty, the largest residential real estate firm in Minnesota and western Wisconsin, recently announced its expansion into the southwest Florida market. A new Edina Realty office in Naples, Florida concentrates on serving communities along the state’s Gulf Coast between Sarasota and Marco Island. Florida listings are now available on edinarealty.com for consumers to search for primary or secondary homes anywhere in the state of Florida.

Edina Realty began expanding its footprint in 2023 to include southwest Florida, giving agents an additional opportunity to serve clients — especially snowbirds — looking to relocate or split time between the Midwest and Florida.

“A number of our agents who winter in Florida or spend significant time there asked for this expansion,” said Chief Executive Officer Greg Mason. “They want access to Edina Realty’s technology, products, network and services when they’re working with clients in the Sunshine State as well in Minnesota and western Wisconsin.”

Roughly 20 Edina Realty agents are now conducting business in Florida, and the company expects that number to increase.

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.

Airwavz Partners with Nuveen Real Estate to Redefine the Wireless Experience in Commercial Real Estate

Airwavz Solutions, a provider of wireless solutions, announced a partnership with Nuveen Real Estate, a global investment manager, to enhance the wireless experience across Nuveen’s extensive office real estate portfolio.

The collaboration represents a strategic alignment to meet the increasing demand for exceptional wireless experiences within commercial buildings. By harnessing Airwavz’ technology and expertise, Nuveen is committed to enhancing tenant satisfaction and prepare its properties for rapidly evolving technology, the companies said.

“As a leading investment manager, Nuveen is dedicated to delivering best-in-class experiences for our tenants across our real estate portfolio,” said Robert Amick of Nuveen Real Estate. “Our partnership with Airwavz reflects our commitment to innovation and ensuring our properties are equipped with the technology necessary to meet the evolving needs of our tenants.”

Through meticulous wireless assessments and customized strategies, Airwavz will collaborate closely with Nuveen to optimize wireless coverage and performance, ensuring seamless connectivity experiences for tenants and visitors alike.

“We’re thrilled to partner with Nuveen and enhance the wireless experience across their real estate portfolio,” remarked Brad Davis, CEO of Airwavz Solutions. “Airwavz is dedicated to delivering flexible

connectivity solutions for our clients that fit the needs of their tenants. We are eager to deliver on that promise to Nuveen, earning their trust as an innovative technology partner.”

Airwavz has enhanced wireless connectivity across the Washington, D.C., Dallas, Houston and New York markets, in Nuveen properties such as Lincoln Centre, Four Oaks Place and 730 Third Ave., setting a precedent for the transformative impact of this partnership. As the partnership evolves, Airwavz will remain dedicated to delivering reliable wireless solutions that exceed Nuveen’s expectations and elevate the wireless experience across its portfolio.

Skanska Awarded Contract to Develop Offshore Wind Port at South Brooklyn Marine Terminal

Global construction firm Skanska announced a contract award worth $861 million to transform the 73-acre South Brooklyn Marine Terminal (SBMT) into one of the nation’s largest dedicated offshore wind ports. This critical infrastructure project will support Empire Wind, which is currently being developed by Equinor 15 to 30 miles off New York.

“We are proud to play a role in the transformation of the South Brooklyn Marine Terminal, which will transition a historic feature of Brooklyn’s waterfront into an industry-leading offshore wind port,” said Richard Kennedy, executive vice president, president and CEO for Skanska in the United States. “This project underscores Skanska’s commitment to building sustainable infrastructure, and this state-of-the-art facility will provide New York City with clean and alternative energy, as well as serve as a national model for renewable energy hubs.”

Skanska will leverage its civil infrastructure and building expertise to provide construction services for the low-emissions facility. The extensive project scope includes the demolition of existing buildings, ground improvements to support the staging of the wind turbine components, installation of underground utilities, upgrades to site lighting, security and safety systems and the installation of two new heavy-lift crane pads. The work will also include significant waterfront and marine upgrades, including dredging of new and existing berths, bulkhead upgrades and installation of new wharf and dock facilities. A new, 85,000-square foot operations and maintenance building with warehouse, office and parking facilities will also be constructed to support the construction and ongoing operations and maintenance of the Empire Wind 1 project.

Upon completion, SBMT will function as essential infrastructure for the Empire Wind 1 project, facilitating the reception, storage and preassembly of critical offshore wind turbine components.

The port will serve as the operational and maintenance hub for the wind farm, and act as the point of interconnection to integrate power from Empire Wind 1 to New York’s electricity grid at the Gowanus Substation in Brooklyn. SBMT is designed to be a central, scalable hub for the expanding East Coast offshore wind market, including as a port for future offshore wind developments.

Photo courtesy of Equinor

Riva Spain and AIA Miami Announce the Riva Prize for Excellence in Sustainable Design

Riva, a high-end European wood manufacturer and surface solutions brand offering a luxurious connection to nature, announced a partnership with AIA Miami and the new, inaugural RIVA Prize for Excellence in Sustainable Design. The prize celebrates and honors outstanding architectural achievements in Florida, recognizing the talented architects and designers within the industry who demonstrate a profound commitment to sustainability.

“The partnership underscores Riva Spain and AIA Miami’s shared dedication to promoting environmental stewardship and innovation within the architectural community,” said Colleen Stovall, AIA Miami executive director.

Riva Spain’s roots date back to 1937 in Vigo, Spain, where the Iglesias family opened a small wood workshop. In 2018, CEO Borja Iglesias founded Riva in the United States with a clear mission: to create highend flooring solutions and deliver unparalleled design and quality to its clientele. The company offers wood, tile, cladding and moss, all sustainably manufactured and harvested.

“The Riva Prize aims to spotlight groundbreaking designs and inspire the broader industry toward more sustainable practices,” Iglesias said. “We couldn’t be happier to be partnering with AIA Miami.”

The winner of the Riva Prize will receive an exclusive trip for two to Spain, offering a unique opportunity to explore the rich architectural heritage

and contemporary design landscape of the country.

The Riva Prize will be integrated into the AIA Miami Design Awards. The winner will be announced by Riva Spain CEO Iglesias at the annual ceremony on October 18, 2024, in Miami. Submissions for the prize opened on May 10, 2024, and are open to all AIA members in Florida.

Skyline Construction Takes 9,630 SF at One East Wacker in Chicago

AmTrust RE, a national real estate owner-developer with a portfolio of commercial, mixed-use and residential properties across the Northeast, Midwest and Sunbelt, has signed a 9,630-square-foot office lease transaction with Skyline Construction at One East Wacker, AmTrust’s 41-story, 560,000-square-foot office tower overlooking the Chicago Riverwalk and River North. Jon Milonas and Kyle Kamin of CBRE represented the tenant in the transaction.

Skyline’s new Chicago office will be nearly three times larger than its current space.

“In the past five years, our team has experienced rapid and intentional growth with lofty goals for further expansion,” said Jim Smiley, project executive with Skyline. “Moving to One East Wacker will allow us to expand into a larger physical footprint to help facilitate productivity and collaboration while also providing a centralized location near many of our valued clients and business partners.”

In 2023, AmTrust selected Skyline to lead a major capital improvements program for the trophy office tower, upgrading the building’s exterior and conducting comprehensive interior renovations throughout the property, including: a completely redeveloped hospitality-grade lobby with modern finishings; a ground-floor tenant lounge and a residential-style mailroompackage; upgraded building entrances and other exterior improvements; a new, full-floor expansive amenity space with a top-tier fitness experience, double-height event space, work areas, lounge space, a bar area and various conferencing alternatives — all overlooking the Chicago River. The building also offers an enhanced top-floor lounge and 360-degree observation deck with modern furnishings and highquality fixtures.

“Skyline’s decision to relocate to One East Wacker is the latest example of the ‘flight to quality,’ where leading employers are increasingly committed to providing their employees with an energized office environment, from a work, social and wellness perspective,” said Patrick Kearney, AmTrust’s managing director. “With Skyline Construction overseeing the renovation process, its team has an intimate knowledge of our vision for the building. Skyline’s long-term commitment to the property is a testament to our well-conceived improvement program. The first phase of the new lobby will be open shortly, and we expect the full renovation to be complete when Skyline moves into the building this fall. Other upgrades to the building, including new food and beverage options, are also in the works, taking advantage of the prime frontage on the corner of State Street and Wacker Drive.”

Photo courtesy of AmTrust RE

AlphaGeo Debuts AI-powered Geospatial Platform

Climate Alpha has re-branded itself to AlphaGeo, underscoring its work in integrating thousands of datasets spanning climate risks, socioeconomic conditions, market factors, policy drivers and demographic trends into a spatial index that guides resilient investing across both real assets and public markets.

AlphaGeo uses advanced machine learning techniques to downscale projections of heat, storm, flood, fire, drought, sea level rise and other climate risks for any coordinate on Earth. It also captures the locations of all adaptation features such as sea walls, levees, desalination plants, fire stations and more. The result is a comprehensive library of more than 50 billion datapoints comprised of nearly 100 engineered features across over 40 million indexed locations. Over one dozen actionable metrics allow asset managers to rank and benchmark location performance under three major climate scenarios and four time periods to 2100.

“Risk is not the determinant of a location’s future — resilience is,” observed Chief Technology Officer Abraham Wu. “Our holistic yet quantitative approach is the first to measure that ground truth for any location in the world.”

AlphaGeo’s GeoSense customized tracking indices for equity markets, providing forward guidance into which public companies or ETFs demonstrate true climate resilience, the company said.

“Our foresight engine turns rising global volatility into a tailwind for alpha-seeking investors,” said Michael Ferrari, AlphaGeo’s chief

scientifi c and chief investment offi cer. In particular, AlphaGeo’s flagship Industrial Renaissance Tracker (IRT) correlates the wave of new greenfi eld corporate activity in America to location resilience, which helps to better assess which companies and communities will experience the greatest lift.

AlphaGeo was founded in 2022 by geopolitical strategist Parag Khanna.

“Complexity is overwhelming the global order,” he said. “We enable a geographical arbitrage towards the winning markets of the future as well as empowering governments and corporates to invest in greater resilience.”

Clients of AlphaGeo include some of the largest and most sophisticated asset managers across real estate, private equity, sovereign wealth funds, pensions, financial markets and insurance. The company raised a seed round in 2022 and is planning an A-round for mid-2024.

One Click LCA Acquires Buildrz Generative AI Platform

One Click LCA, a global provider in life-cycle assessment (LCA) software for construction and manufacturing, has acquired Buildrz, a generative AI software for real estate opportunity analysis and feasibility studies. Together, the companies will extend their offering and bring integrated feasibility studies, cost analysis and carbon analysis powered by a generative AI to their users.

Founded in 2016 in Paris, Buildrz supports property developers, architects and local authorities at every phase of their real estate development projects, starting from site sourcing and extending through the permitting process. Through its SaaS-based real estate development platform, Buildrz is a one-stop tool for property developers and architects to perform generative design in order to optimize buildable surfaces on any given plot while also meeting the necessary urban planning requirements. Backed up by the database of urban plans, Buildrz evaluates land use change, net zero artificialization, views and daylighting and economic value of the projects, enabling customers to identify and qualify sites that offer the best economic opportunities. Currently, Buildrz serves around 50 customers across France.

“At Buildrz, our goal is to provide developers and architects the tools to build more effectively and responsibly amid growing regulations and requirements,” said Manuel Verrier, founder and CEO of Buildrz. “Powered by artificial intelligence and open data, our comprehensive platform allows users to go deeper in their analysis and make faster decisions at all project phases, ultimately saving developer teams an average of €100,000 annually.”

In late 2023, One Click LCA secured a €40 million funding round led by InfraVia and PSG Equity to boost global growth. Buildrz’s complementary strength accelerates One Click LCA’s strategy to become the definitive end-to-end sustainability software platform for construction and manufacturing, the companies said.

One Click LCA helps architects, developers and other players in the construction value chain decarbonize their projects by providing global life-cycle assessment, environmental product declaration and sustainability solutions. Together with Buildrz, One Click LCA will bring an integrated feasibility study and cost and carbon analysis powered by a generative AI to its users, the companies said. The combination will allow users to identify low-carbon projects already before design is started, and ensures code compliance.

“We’re very excited to join forces with Buildrz and will be working together to bring out new tools that allow reducing cost and carbon emissions of projects starting from the pre-design stage, in France and globally,” said Panu Pasanen, founder and CEO of One Click LCA. “Generative design signifi cantly upgrades the capability of the real estate industry, and allows creating better projects faster, which also are more successful in planning applications. With Buildrz, we pursue our strategy of global expansion, with an enhanced presence in France, and delivering to our users an end-to-end sustainability software platform for the built environment.”

The first joint solutions are targeted for the end of the year, and will be made available to the customers through One Click LCA. An integration of the existing tools is also planned. With Buildrz, One Click LCA will serve customers in over 170 countries.

Photo via PRNewswire

Photo courtesy of One Click LA

Aareon Invests Up to €100m in Stonal

Stonal, a data management platform for real estate owners and investors in Europe, has announced a strategic investment by Aareon, a European provider of software-as-a-solution (SaaS) solutions for the property industry, to accelerate its European expansion.

Founded in 2017 by current Executive Chairman Michel Tolila and JeanMaurice Oudot, Stonal’s mission is to deliver data quality at scale for asset owners and investors. Its collaborative AI-powered platform extracts information from documents and blueprints, creating an accurate and up-to-date database on buildings,a open to stakeholders such as property managers, surveyors and insurers. Its decisionmaking modules offer ESG reporting and capital expenditure planning to increase returns, improve productivity and preserve value.

The company has quickly expanded into residential and commercial real estate. In early 2024, Stonal launched its proprietary StonalGPT, the first generative artificial intelligence solution designed for real estate owners and investors.

“The real estate industry, both residential and commercial, is at a crossroads. AI is a massive opportunity to reshape the sector in a remarkable way, but it still requires a significant amount of data on which to train these systems,” said Robin Rivato, CEO of Stonal. “Thanks to the strategic partnership with Aareon we will reach such a scale and accelerate our European expansion.”

Aareon provides SaaS solutions for the European property industry. With locations across France, Germany, the Netherlands, Spain, Sweden and the United Kingdom, Aareon serves 13,000 customers totaling 18 million housing units.

“Investing in Stonal is a strategic step to strengthen our ‘Aareon Sustain’ product portfolio and amplify our proficiency in AI technology across the Aareon Group,” said Harry Thomsen, CEO of Aareon. “With an expected uptick in the need for robust data management solutions, this collaboration not only reinforces the existing partnership between Stonal and Aareon in France but also equips us to meet our customers’ needs and deliver unrivalled innovation and operational excellence.”

Stonal was advised on this deal by Lazard, Aareon by Vulcain.

Boxabl Gains Approval in California

Housing tech startup Boxabl has received official approval for its Casita product to be sold in the state of California.

California, known for its challenging housing market, has increasingly turned to accessory dwelling units (ADUs) as a solution to the crisis. According to 2023 statistics from the state’s Department of Finance, “ADUs are included in the single-family category of housing and comprised 19.7% of the state’s new housing, adding 22,802 units.”

Boxabl’s entry into this market presents an opportunity to substantially increase the supply of innovative and cost-effective homes.

The Casita, a fully equipped home, ships folded and is designed to unfold into a fully functional dwelling in just a few hours. The design not only reduces construction time and costs but also minimizes environmental impact, the company said.

“Getting approval to offer our Boxabl Casita in California is a pivotal step forward in our commitment to tackling the affordable housing crisis,” said Galiano Tiramani, co-founder of Boxabl. Each Casita is manufactured in Boxabl’s facility in Las Vegas, Nevada using durable, high-quality materials.

The Boxabl Casita offers 361 square foot living space that includes a full kitchen, bathroom, living area and sleeping area. Units can be combined and even stacked to create larger homes.

Photo via PRNewswire

Fried Frank

Where major real estate transactions happen

HUDSON YARDS

Counsel to Related Companies and Oxford Properties Group in connection with the development of and all leasing activities at the 26-acre Hudson Yards on the West Side, the largest private development in Manhattan since Rockefeller Center.

CHELSEA MARKET

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

BLACKROCK HEADQUARTERS

Counsel to BlackRock in its 850,000square-foot lease for its planned headquarters relocation to 50 Hudson Yards.

MANHATTAN WEST

Counsel to Brookfield Property Partners on all aspects of the development of Manhattan West in the Hudson Yards District, including its recent lease to the National Hockey League.

PENN STATION

Counsel to Vornado Realty Trust and Related Companies on the redevelopment of Penn Station, including the redevelopment of the James A. Farley building and construction of Moynihan Train Hall.

CENTRAL PARK TOWER

Counsel to J.P. Morgan, as lead lender, in its US$900 million construction loan syndication to Extell Development for the development of Central Park Tower.

ONE VANDERBILT

Counsel to SL Green Realty Corp., including all zoning approvals, in connection with the development and leasing of One Vanderbilt Avenue, an iconic 1,401-foot tall, 1.7 million square foot office tower being constructed on the full block to the west of Grand Central Terminal.

20 TIMES SQUARE

Counsel to Maefield Development in its approximately US$1.5 billion acquisition of the EDITION hotel, retail, and signage project known as 20 Times Square.

JP MORGAN CHASE HEADQUARTERS

Counsel to JP Morgan Chase in connection with various aspects of its planned 2.5-million-square-foot headquarters redevelopment at its 270 Park Avenue location.

JLL Leases 45,00SF at 1450 Broadway

JLL has leased over 40,000 square feet of office space in a series of transactions at 1450 Broadway, the 42-story Class A Bryant Park property owned by ZG Capital Partners, a New York-based real estate investment firm led by Bobby Zar. 1450 Broadway is represented by a JLL leasing team that includes Vice Chairman Mitchell Konsker, Executive Managing Director Greg Wang, Associate Vice President Thomas Swartz and Senior Associate Lance Yasinsky.

Leading video and ecommerce retailer QVC leased 13,357 square feet across the 19th floor in a relocation from 71 Fifth Ave. The tenant was represented by Ramsey Feher of CBRE. Kohler Ventures, a digital business subsidiary of Kohler Co., leased the entire 4,109-square-foot 40th floor of the tower to open its first New York City office. Kohler Ventures was represented by Liz Lash of CBRE.

Good Springs Capital, a private equity fund, leased the entire 4,109-squarefoot 39th floor tower suite to open its first NYC office. Good Springs Capital was represented by JLL’s Evan Margolin, Daniel Posy and Ian Lipman. Longtime tenant Iconix, a fashion company that owns brands including London Fog, Mudd and Joe Boxer, consolidated its footprint to 10,124 square feet on the 22nd floor. Margolin and Lipman represented Iconix.

Kering Eyewear signed a long-term expansion and renewal to occupy the full 36th floor in addition to its existing space on the 33rd and 34th floors for a total of 12,327 square feet. Kering was represented by Cushman & Wakefield’s Deborah Van der Hayden and Joshua Cohen. Wealth data platform Masttro leased 5,851 square feet on the 20th floor in a relocation from 1407 Broadway. Sinclair Li and Connor Desimone from CBRE represented Masttro. Tech firm Good Inside leased 4,109 square feet on the 29th floor for its first NYC office and was represented by Rob Kluge

of Current RE. SG Companies, a multinational fashion brand, will relocate from 142 West 36th St. to occupy 4,677 square feet on the 9th floor. JLL’s Bill Peters and Jan la Torre represented the tenant.

The transactions follow a significant investment by ZG Capital Partners in a state-of-the-art amenity offering on the second floor of the building that will include ample conference, meeting and lounge spaces that is set to deliver Q4 2024. The 430,000-square-foot building that overlooks Times Square underwent an extensive renovation in 2012 that included a contemporary new lobby and upgraded building mechanicals.

“Ownership’s commitment to maintaining 1450 Broadway as a best-inclass office destination has resonated with forward-thinking tenants who want to offer employees a superior environment and convenient commute,” said Konsker. “With its latest investment in the building, ZG Capital has signalled its belief in the fundamental strength of the Manhattan office market.”

Cherre Unveils a New UI for Data Observability and Validation

Cherre, a real estate data management platform, has released a user interface (UI) which provides visibility into Cherre’s Data Observability features, as well as enhanced data validation capabilities. The new UI also empowers clients to directly manage their data pipelines into the platform, increasing transparency into the status, completeness, delivery and transformation of their data.

Cherre’s UI includes an array of tools for users to self-manage their data pipelines and validation rules, enabling them to improve their data quality and promote confidence across the organization. These tools include: table profiling, column profiling and status monitoring which provide observability across all data moving in, through and out of Cherre; insights into data Connectors including access to the standard data model for each Connector, Connector status, data destination and available data dictionaries and data validation capabilities that allow clients to create and manage checks, alerts, and custom validation rules, as well as a standard library of tests across Connectors and the Data Submissions Portal.

“Our new UI is more than just a tool; it’s a gateway to enhanced confidence in data-driven decision-making,” said Kevin Mattice, chief product officer at Cherre. “By surfacing Cherre’s Data Observability processes and providing clients with direct access to manage their data pipelines, we are setting a new standard in real estate data management. Real estate market leaders need to feel confident in their decision making, our UI helps give them the control and transparency needed to build trust in their data.”

The new UI is now available to all Cherre Platform users.

Photo courtesy of Newmark

Haden Named Business Unit President for Skanska USA Building

Skanska, the global construction and development company, has promoted Clay Haden to business unit president (BUP) for Skanska USA Building, effective June 1. Haden succeeds Paul Hewins, who has announced his decision to retire.

As BUP, Haden is responsible for the overall performance of Skanska USA Building, including setting the business strategy, delivering safety and financial performance, evolving a values-based culture and positioning the business unit for long-term success. He reports directly to Skanska Group Executive Vice President Richard Kennedy.

“Clay is the right leader for our next chapter. He is a strategic, insightful and innovative leader who, having served on the USA Building Senior Leadership Team for the past 14 years, has a deep understanding of our business and our organization,” said Anders Danielsson, president and CEO of Skanska Group. “As both general counsel and chief administrative officer, Clay has been integrally involved in shaping the company into what it is today. I look forward to working together to steer Skanska USA Building into the future.”

Since joining Skanska in 2006, Haden held a series of increasingly senior roles with expanded responsibilities, being appointed general counsel in 2009, a member of the senior leadership team in 2010 and chief administrative officer in 2016. As general counsel, he oversaw the company’s legal, compliance and risk management functions, including insurance and bonding, ethics and compliance and supplier diversity. As chief administrative officer, he oversaw various company-wide functions and led many important nationwide level initiatives that have resulted in

Prior to joining Skanska, Haden was a partner with global law firm Seyfarth Shaw LLP, where he focused on construction law and litigation. He holds a J.D. from the Vanderbilt University School of Law and a bachelor’s degree in construction from Arizona State University’s Del E. Webb School of Construction.

CareSpace Suites to Open First Shared Medical Space in Atlanta

Officials of CareSpace Suites, a shared workspace for medical professionals, announced the launch of the company’s flagship property in the Vinings Jubilee mixed-use development in Atlanta, Georgia. Scheduled at press time to open June 1, CareSpace Suites becomes the first-of-its-kind medical co-working space in Georgia.

“CareSpace is a flexible medical co-working space designed to help providers expand their private medical practice,” said Lutfullah Almos, co-founder and CEO. “We strive to enable providers to practice on their terms by helping reduce overhead costs and by offering a low-risk solution to traditional real estate options. CareSpace offers practitioners leasing flexibility, administrative support and versatile exam suites as a cost-effective alternative to private practice.”

Similar to services like WeWork and Regus, medical coworking provides an environment for independent healthcare practitioners and medical professionals to care for patients, build their network and grow their practice at an affordable cost. Independent practitioners rent fully equipped space in a medical coworking facility on a daily, hourly or monthly basis. In addition to physical space, medical coworking spaces typically provide administrative assistance, equipment and daily cleaning. The concept of medical co-working first entered the practice space in 2017 and has rapidly reshaped how independent practitioners work and care for patients.

CareSpace Suites is located at 4500 Paces Ferry Rd., Building E, Suite 500 in the Vinings Jubilee complex, a collection of boutiques, restaurants and one-of-a-kind specialty stores nestled in the outskirts of Atlanta. CareSpace amenities will include HIPAA compliant Wi-Fi, medical

assistant stations, provider booking app for ease of scheduling and administrative support.

CareSpace Suites was founded by the husband and wife team of Lutfullah & Carmen Almos. With a background in healthcare, Lutfullah became acutely aware of the challenges facing growing practices and providers looking to test new markets or explore private practice. Carmen Almos’ background in commercial real estate acquisitions and asset management provides expertise in underwriting and operations.

higher performance across the organization.

Photo via Business Wire

Fort Worth’s Largest Independent Brokerage Joins Real

Publicly traded real estate brokerage The Real Brokerage Inc. announced that Fort Worth’s largest independent brokerage The Property Shop, led by Season Ware, has joined the company under Real’s Private Label program. The Property Shop brings more than 125 agents with annual home sales valued at more than $250 million, significantly adding to Real’s agent base in Texas.

“Season’s commitment to a core set of values that empower agents to succeed align with the culture we are building at Real,” said Real President Sharran Srivatsaa. “The Property Shop has built a successful business that will benefit from our Private Label program, which allows independent brokerages to tap into Real’s platform without changing their brand or what makes them unique. Season and The Property Shop team are a great addition to Real, and I look forward to seeing how this move will allow them to supercharge their business.”

A 20-year industry veteran who built her business on client service, Ware joins Real as a growth leader. In this role, she becomes part of a select number of Real agents responsible for helping to build visibility for the Real brand, attracting agents and being a culture carrier.

Ware founded The Property Shop in 2009 to achieve her vision of making real estate transactions simple and stress-free for clients, while creating a more supportive environment for agents. She attributes The Property Shop’s success to a compensation structure that allows agents to retain the lion’s share of their commissions, a commitment to work-life balance and prioritizing agent development and client relationships.

“Real’s Private Label Program offers the best of both worlds,” Ware said. “By aligning with Real, we get to keep the heart and boost the power of our business by gaining access to state-of-the art technology, training, equity

and a culture that meshes perfectly with ours. I’ve committed to always doing what’s best for my team, and this was a no-brainer.”

Through Private Label, Real’s white label program, independent brokerages are able to maintain their own brand, while reaping the benefits associated with being a part of Real. ProTeams leverages Real’s proprietary transaction management platform to provide the flexibility to customize team members’ caps, splits and fees down to the individual team member level, allowing them to maintain their current structure.

Closings and Move-Ins Begin at The Treadwell

Closings have commenced at The Treadwell – a collection of elegant homes featuring gracious outdoor space with city and river vistas and whole-life amenities at East 62nd Street between Second and Third Avenues. At press time, the 26-story new development, was 25% sold after just four months of sales. Set within an Art Deco-inspired building conceived by INC Architecture & Design and situated on a tree-lined Upper East Side block abutting the landmarked Treadwell Farm Historic District, the building houses a collection of 66 condominium units ranging from studio residences to three bedrooms and a four-bedroom full-floor penthouse.

“We are thrilled to begin closings at The Treadwell and welcoming our first residents this month,” said Christopher Kelsey, president of Dart Interests. “Since launching sales just four months ago we have seen a tremendous response to the unique and timely offering we have created with The Treadwell.”

INC Architecture & Design designed the building with gracious setbacks, clean lines and rich materials, adding sophistication with a contemporary twist to the Upper East Side. The building’s vertical silhouette is punctuated by fluted terracotta and bronze. The result is a distinctive 21st-century apartment house with subtle references to New York’s iconic Art Deco and Neoclassical architectural history.

INC Architecture & Design also conceived the building’s interiors, from the design and decoration of the lobby and amenities to apartment layouts, as well as finish selection, and custom-designed kitchen islands and cabinetry and bathroom vanities and lighting. With premium appliances, warm tones and state-of-the-art conveniences, the firm envisioned a modern lifestyle where residents can effortlessly engage in all that the beautiful living spaces and neighborhood have to offer. Balconies and terraces in select residences offer views of the Upper East Side, Central Park, the East River and the Manhattan skyline. Bathed in natural light from oversized windows, many homes boast multiple exposures and unobstructed views. High ceilings and European white oak floors emphasize the spacious, intuitive flow of floor

plans generously scaled for comfortable furniture arrangements.

The first two floors of The Treadwell are dedicated to the amenity experience within the building. Upon entry, residents find themselves immersed in a light-filled lobby with ceilings scaling double height, and beautifully crafted oak walls.

A lushly landscaped courtyard, club lounge, meeting rooms, and catering kitchen are just a few of the amenities located on the first floor. On the second floor, residents can indulge in their fitness and wellness regimens. Features include a well-manicured meditation garden and a fitness center showcasing cardio, agility and strength equipment.

Rendering by Dbox

LEO JACOBS O

Photo courtesy of Sarah Borukhov

DISTRESSED REAL ESTATE’S WARTIME GENERAL

By Debra Hazel

Even the mighty and successful make mistakes — and theirs can be larger than most. Those mistakes require a very specialized type of help.

Just shy of 36 years old, attorney Leo Jacobs, CEO and founder of Jacobs P.C. is building a firm on helping those who have dreamt, executed on their dreams and lost big find a way forward based on empathy, tough negotiations with lenders (and sometimes his clients), a wartime-like focus on decision-making and an expert knowledge of New York bankruptcy and commercial litigation law. His goal — to give them a second chance in their bet-the-real-estate asset litigation.

“When someone is down and out, it’s important to lift them up and keep them there,” he said. “There are many attorneys who focus on the lender side. I focus on the individual, the debtor, the borrower, the over-extended lender.”

Bankruptcies with high-net-worth individuals and major companies aren’t the same as smaller companies. Jacobs’ clients include Joe Chetrit, Michael Stern, Jacob Frydman and Toby Moskowitz, to name a few who’ve built the skyline of New York City. Helping them think strategically has helped Jacobs rapidly expand his practice since launching Jacobs P.C. in 2020.

“I’ve grown my firm exponentially in a very short amount of time, focusing on two practice areas: bankruptcy reorganization and commercial litigation,” he said. “I’ve done well ever since.”

He knows something about taking risks. The son of Bukhari Jews who emigrated from Uzbekistan when he was a toddler, Jacobs saw his father become an entrepreneur while his mother was a nurse. An early interest in medical school turned into an interest in law. Earning his J.D., he served as an associate attorney at a preeminent Wall Street firm.

He later became general counsel at New York Equity Management LLC, a privately held real estate investment company that focused on real estate litigation finance investments (acquisition, construction, development, management, leasing and sale) and held a portfolio of distressed and other commercial and residential properties. His role at NYEM straddled legal and business issues, from advising management on commercial matters, litigation, real estate and compliance to spearheading efforts that increased the value of the firm’s properties upon sale.

Quite quickly he saw that there was a burgeoning business in resolving real estate assets in bankruptcies that were in distress and founded Jacobs P.C. Essentially, his practice is based on finding an answer between two conflicting forces — the lenders who want to be paid, and the debtors who simply can’t pay it in this new environment. Figuring out the answer is the raison d’etre of Jacobs P.C. — helping the risk-takers work through their high-flying real estate legal issues so they can survive to build again. It isn’t always easy as builders fight their own

visions and nature to accept the need for change in an environment they are not accustomed to.

“There are lawyers for the debtor and lawyers for the lender,” Jacobs said. “The lawyers for the lender are acting on documentation that was created before the pandemic, before interest rate rises, before the actual value of the development has materialized. The debtors are dealing with the post-facto world that does not mirror the terms to which they agreed.”

Jacobs strives to find the path between the two, balancing responsible professional development of these real estate developers and the treatment of their multiple asset classes. In the post-pandemic world, that isn’t so easy, as interest rates have doubled to refinance failing assets, leaving owners unable to pay the new sums.

“Attorneys have to come up a way to accomplish three goals: staying in line with the objectives of their clients, staying in line with the market, and staying in line with the objectives of their adversaries,” he said. “This is very tough to do.”

Sometimes, money isn’t the prime motivation. For some owners, it’s about a family legacy. For others, it’s all about the deal, and for yet another group, it’s about a flashy lifestyle.

“I understand the motivations of my clients,” said Jacobs, a self-described big personality. “It’s always personal. They have their have pride, ego. It’s not only about the numbers.”

To resolve this, however, numbers are critical. To determine the current value of a property, attorneys not only need to know the law, they must engage accountants, advisors, consultants, forensics, brokers and even professors to work with the other side to extract the real value of today’s asset in the market, he observed.

For Jacobs, it also entails assessing his counterparts, whom he refers to as “adversaries” on the other side of the table.

“Adversaries sometimes listen to their clients too much, and sometimes they don’t listen to them at all,” he said.

Both are problematic. Those who solely listen to the clients become stubborn, resulting in vexious litigation. Those who don’t listen at all rarely find the practical answer.

“A good adversary is an adversary that works with you, not against you,” he said.

New York real estate is in for a challenging time, he said. Interest rates have doubled from the pre-COVID-19 era when many deals were struck. The result is that property prices have decreased dramatically solely because of the selling power, not because of the intrinsic value

of the asset.

For example, Jacobs P.C.’s client Michael Stern of JDS Development has defaulted on the Brooklyn Tower, the tallest building in the borough. At press time, the company was to be sold to Silverstein Properties on June 10. The problem that still must be negotiated after the sale, if there is one? The tax bill. The forgiveness of Stern’s debt incurs a tax liability of hundreds of millions on an asset he no longer owns, if sold.

The federal government has proposed a Housing Resolution attempting to combat what amounts to legislation that will forgive “phantom gains”, but the bill has not yet passed the House or the Senate.

“What does it say about the government if the government too is going to become a creditor of its own people?” he asked. “They must come up with a way for a creditor and the borrower to be forgiven.”

Ironically, that can help create even more success.

“Government wants to invest in the future of their skyline in a way that’s productive,” Jacobs observed. “If the government fails to constructively and responsibly make phantom gains disappear, development may come to a screeching halt and the developers will implode from the government’s tax bill alone. It becomes the government’s own cannibalizing of the New York real estate market.

To do that, you need someone who understands how the current crisis has come about. The situation has come in three phases, Jacobs related. The first was the pre-pandemic era when financing was flowing and affordable, and no one saw a storm on the horizon. In the second phase, during the pandemic, the storm was clearly visible. Now, in the last phase, the storm is here and hurting those who took the risks in Phase One.

“In the second phase, you don’t know what to do — you’re basically anxiety driven,” Jacobs said. “Then, depression forms because you knew what was coming, and it didn’t work out. We’re seeing levels of high to extreme anxiety to enormous amounts of depression.”

What’s required, he continued, is a wartime general — or a wartime Prime Minister like Winston Churchill, willing to make tough decisions regardless of politics and guide those decisions in a tempered but emphatic way.

“That’s who I am to my borrowers and debtors — a wartime general,” he said.

Yet he’s also the person who offers counseling at the lowest points of his clients’ lives — it’s tough after years or decades of success to face massive failure or seemingly immeasurable challenges. With his first degree in cognitive psychology (with honors) from Queens College, Jacobs has a knack for listening and empathizing with his anxious and depressed clients.

Dealing with the stress of others can be stressful. Jacobs relies on the love of his wife, two children, his Bukharian community and Jewish faith to keep him grounded and able to support his clients.

“I pray, I eat well and try to exercise, but that’s peripheral,” Jacobs said. “What you need is a vision for your clients, a vision of your clients crossing that bridge. You must be goal oriented, not for yourself, but for them, because their axis is at times broken.”

The result is that his firm has moved from a 1,000-square-foot WeWork to by Jauary 2025 a nearly 12,000-square-foot office space on Billionaire’s Row located on Park Avenue, where he can see the buildings owned by several of his clients. Jacobs foresees his firm growing to about 100 lawyers in the next five years.

“Billionaires and millionaires don’t rely on their lawyers when times are good because when times are good the business informs the law,” he said. “In tough times, the law informs the buisness. The tough times are here, and this is the time to bring about the most impactful decisions of my clients that affect my clients futures.

“I endeavor to be that collaborative wartime decision-maker for my clients,” he said. “Not every attorney is baked out to be that way. Thank hashem, I have been so.”

“What you need is a vision, a vision of your clients crossing that bridge. You must be goal oriented, not for yourself, but for them, because their axis is at times broken.”

- Leo Jacobs

Photo courtesy of Sarah Borukhov

STORY

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.

NJEDA Board Designates New 1888 Studios in Bayonne as First Film-Lease Partner Facility

We’ve heard of Hollywood and even Hollywood on the Hudson, but Hollywood on the Kill Van Kull? It’s looking likely, as the New Jersey Economic Development Authority designated the upcoming 1888 Studios in Bayonne, New Jersey, near the strait that flows under the Bayonne Bridge, as a Film-Lease Partner Facility.

The designation agreement commits developer Togus Urban Renewal LLC to occupying the facility for at least five years and grants future tenants eligibility to apply for increased tax credits for projects filmed at the facility under the Film and Digital Media Tax Credit program.

“The increase in film studio development in New Jersey is a testament to the state’s bestin-the-region incentives and wealth of local talent, helping transition the Garden State into the northeastern capital of film and entertainment,” said Governor Phil Murphy. “The designation of 1888 Studios as a Film-Lease Partner Facility will open the door for more production companies to film in New Jersey, helping to support local small businesses and communities and create thousands of good-paying jobs.”

1888 Studios will stand as the largest and first

campus style film and television studio facility in the Northeast and one of the largest in the nation, occupying 58 acres of land and 20 acres in Newark Bay just miles from New York City. Designed by architecture firm Gensler to evoke imagery of Golden Age Hollywood, the development will include 23 mega-powered smart sound stages ranging from 18,000 to 60,000 square feet with 40- to 50-foot-high ceilings, more than 350,000 square feet of production support space, outdoor backlot space, amenities, office spaces, mills, lighting and grip facilities, parking garage and storage. The development will also feature a waterfront park and promenade accessible to the public. 1888 Studios is expected to open in 2026.

“We are honored Governor Murphy invited us to take part in fulfilling his ambitious vision to catapult New Jersey –– the birthplace of moviemaking and the home of the first film studio, Thomas Edison’s The Black Maria –– back onto the world stage, reclaiming its title as the premier destination for entertainment production. Without that vision and his administration’s relentless commitment to this industry, none of this would be possible,” said Arpad “Arki” Busson, chairman of Togus Urban Re-

newal, the developer of 1888 Studios.

In some respects, the studio is a homecoming.

“1888 Studios takes its name from the year Thomas Edison invented the motion picture camera in New Jersey, and the state continues to honor that legacy with studio partnerships that strengthen its standing as a hub of media production,” said New Jersey Motion Picture and Television Commission Executive Director Jon Crowley. “As a Film-Lease Partner Facility, future tenants of 1888 Studios will have the opportunity to access some of the most competitive filming incentives in the nation, ensuring that the Garden State stays at the forefront of movie and television production.”

To be designated as a Film-Lease Partner, developers and operators must commit to occupying and operating studio developments in New Jersey for at least five years. Future tenants of a Film-Lease Partner Facility can receive increased tax credit awards for filming in New Jersey. The tax credit award increases if the designated facility’s tenant qualifies as a “film-lease production company”. To qualify, the production company must occupy space

at designated film-lease partner facility, film at least 50% of the total project shoot days in New Jersey, and film at least 50% of the New Jersey shoot days at the designated facility.

The Film-Lease Partner designation is part of the Film and Digital Media Tax Credit program, which Murphy reinstated in 2018 and has led to increased film and digital media production throughout the state. The program, which is funded through 2039, provides a tax credit of up to 40% of labor expenditures and up to 35% of qualified film production expenses, including a Diversity Tax Credit of up to 4% for productions that employ the services of women or people of color.

The program was expanded in 2021, increasing the annual allocation to $400 million and granting the NJEDA authority to designate eligible film studio developments as Film-Lease Partner Facilities.

It’s also part of a larger trend. Numerous film and content production studios are now under development around Greater New York City.

In January, Innovo Property Group released renderings for Borden Studios, its purpose-built film and television studio that will occupy the top floors of The Borden Complex located at 23-30 Borden Ave. in Long Island City, Queens, New York. The ground-level facility, to be delivered this year, 220,000 square feet of production space and 110,000 square feet of warehouse space is located on Level 3 to service studio tenants, as well as ancillary

businesses.

“Borden Studios offers a fulsome leasing opportunity for content creators who want to film in New York City,” said Michael Newport, executive vice president and chief marketing officer for The MBS Group, which will operate the facility, in January. “The facility is innovative and completely self-contained, and it’s only minutes from Manhattan.”

In Manhattan, a partnership of Blackstone, Vornado Realty Trust, Hudson Pacific Properties, Blackstone, the City of New York and New York City Economic Development Corporation are converting Vornado’s Pier 94 into Sunset Pier 94 Studios, the first purpose-built campus in Manhattan by 2025. Designed by Gensler, the facility will consist of 221,220 square feet, comprised of 80,800 square feet in six sound stages, 55,800 square feet of production offices and 84,600 square feet of production support (hair, makeup, wardrobe and support space). In addition, the Walt Disney Company is nearing completion of its office and film and television production studio space at 7 Hudson Square in Manhattan.

These join the historic Kaufman Astoria Studios, built in Queens in 1920 because of its proximity to Broadway shows. Taken over by developer George Kaufman in the 1980s, it is the home to seven sound stages and the only backlot in New York City. Newer is Steiner Studios, which opened at the Brooklyn Navy Yard in 2004.

Why all the growth? Demand as streaming expands the need for content, and incentives.

The $700 million New York State Film Production Tax Credit program provides qualifying film and television productions a 30% credit for qualified production expenditures. But a recent audit by PFM Group shows that the program is a money loser thus far. The same study, which measured production from 2012 to 2022, showed that film and TV production employment grew 31.1% nationally, but just 8.2% in New York.

But for now, New Jersey is making plans.

“Governor Phil Murphy’s revival of New Jersey’s Film and Digital Media Tax Credit program has made the state a hub of film and media production, attracting hundreds of millions in revenue and creating thousands of good-paying jobs,” said NJEDA Chief Executive Officer Tim Sullivan in the announcement. “[The] designation of 1888 Studios as a Film-Lease Partner Facility highlights how the state’s generous incentives, breadth of local talent, and diverse filming locations are attracting the development of world-class studio spaces, transforming regional economies.”

Your Newest Anchor? SPORTS FOR KIDS

By Debra Hazel

Boutique fitness and pickleball have dominated the analyses of new wellness anchors in mixed-use and retail properties. Even sports arenas are entering the mix, including on the Las Vegas Strip (see story this issue). But another opportunity is emerging, as well.

Around the U.S., real estate developers are partnering with municipal leaders to capitalize on the continued “boom” of the youth travel sports marketplace. Builders of youth sports megaplexes are adding adjacent restaurants, retail shopping experiences and on-site hotels to create a genuine travel destination. The Sports Facilities Companies (SFC), which plans and operates sports megaplexes, community recreation centers and live entertainment venues, reports that 60% of its projects in development have mixed-use real estate development components.

“We’re witnessing a transformation in the funding mechanisms and public-private partnerships leveraged to create these youth travel sports destination developments,” said Jason Clement, CEO and founder of SFC. “In the best instances, municipalities participate in the planning of the youth sports asset and maintain control of the operation, often through specialty third-party operators like SFC, while the developer focuses on leasing the property outparcels and creating a family-friendly, walkable destination.”

Clement’s firm, which currently operates more than 50 sports, recreation and event venues across the country, is leading the design and operation of AdventHealth Sports Park at Bluhawk, a massive indoor sports and entertainment complex featuring eight basketball courts, an NHL-sized ice rink, sports training center, bowling, laser tag and more. Located in Bluhawk, an Overland Park, Kansas mixed-use development, the 260,000-square-foot Phase One is slated to open this fall. Bluhawk is the vision of the Price Brothers Management Company.

In rural Illinois, the city of Mattoon has partnered with Rural King to develop a $66 million indoor and outdoor sports complex that will serve as the anchor for the Shops at Emerald Acres, which is co-located on the 150-acre site. The sports complex, slated to open in late 2024, will be a driver for approximately 580,000 visitors and generate more than $23.8 million in direct economic impact annually.

“At Rural King, we’ve been headquartered in Mattoon since our founding in 1960. As we considered expanding the retail options in our city, we needed an anchor for the development that would drive a significant amount of traffic,” said Blake Pierce, president of RK Real Estate & Development. “What makes youth sports such a great fit is that it’s not only a proven generator for economic activity, but it is also a huge asset to the quality of life of local residents.”

“When cities and real estate developers partner to create a sports and events destination, they create a win-win-win situation,” said Jake Whittaker, senior vice president of development for SFC. “It’s a win for the developer who has public participation in their project, a win for the city who receives the benefits of new hotels, retail and restaurants and a win for kids and families who have improved access to sport and entertainment opportunities.”

The youth and amateur sports tourism industry grew by 11% to reach $52.2 billion in 2023, said Sports ETA 2023, and is predicted to reach $77.5 billion by 2026, according to Wintergreen Research. Over the last decade, local government leaders in cities including Albertville, Alabama; Elizabethtown, Kentucky; Gatlinburg, Tennessee and Rocky Mount, North Carolina were early adopters in the development of youth travel sports facilities.

Today, cities and real estate developers in Springfield, Illinois; North Las Vegas, Nevada; Northport, Alabama and Pinellas Park, Florida are taking the opportunity of

youth travel sports one step further and have announced plans or broken ground on mixed-use developments that not only include an indoor or outdoor travel sports facility, but hotels, retail and/or restaurants on site as well.

“The growth we’ve witnessed in the industry in the last few years is unparalleled,” said John David, president of the Sports Events & Travel Association (Sports ETA).

“Our membership with destination marketing organizations, industry partners and event owners has never been stronger –we had 14% growth in the attendance of our annual Symposium. These organizations are invested in the future of youth and amateur sports tourism, and they not only want great sports facilities, but on-site hotels, restaurants and retail options for their guests as well.”

Meanwhile, development around professional sports venues continues to grow. To track them, RCLCO Real Estate Consulting has launched the Venue-Anchored Development Tracker, which tracks major sports leagues’ real estate developments. RCLCO counted 43 venue-anchored real estate development projects (Major League Baseball, the National Football League, National Basketball Association, National Hockey League and Major League Soccer) on the ground today, seven under construction and 34 planned/publicly under consideration.

“We are seeing a burst in development interest around sports venues and stadiums, as teams and owners seek to diversify and control future revenue streams, as well as enhance the fan experience and deliver local community benefits,” said Erin Talkington, managing director of RCLCO, in the tracker announcement. “There is no one formula for a successful development. While the most well-known projects are held up as places to replicate, the unique local-market responsive elements of places ... are what will differentiate future venue-anchored developments.”

FOR KIDS

RECREATING HISTORY , AFFORDABLY, AT 26 COURT ST.

It isn’t cheap to restore a nearly century-old building. But the team in charge of restoring 26 Court St. in Brooklyn, New York, found a way to save money in a way that it says creates a new paradigm for complex, often cost-prohibitive exterior restorations.

Kamen Tall Architects P.C. (KTA), an award-winning specialist in restoration, historic preservation and architectural design, in conjunction with Central Construction Management LLC, developed a plan for the multi-faceted Façade Inspection and Safety Program (FISP) project that entailed the fabrication of 1,000 perfectly aligned, pre-cast genuine, historic and ornate terra cotta stones for the 28-story, circa 1927 office tower.

“Rather than taking a piecemeal approach using such materials as GFRC [glass fiber reinforced concrete], cast stone or architectural fiberglass, which can never match the patina of the originals, we made a nimble pivot that will achieve better results,” said KTA Principal Scott Kamen, R.A., AIA. “And because the work is being done in a cohesive way with the same team, our client is saving hundreds of thousands of dollars on the project.”

With each stone meticulously numbered for installation and stored in a warehouse over the winter months, the work will begin on the substrate of the 298,000-square-foot landmark building to ensure it is repaired and well-protected throughout the construction process. In addition, base building repairs are ongoing as an extra measure to shorten the construction schedule and maintain the integrity of the façade before installation of the historic fabric.

“Scott and his team have produced a truly innovative solution for this massive undertaking, which already entailed the replacement of 10,000 pieces of die-cast copper on the roof,” said Michael DiFonzo, president, Central Construction Management. “Although KTA bid out different materials for the tiles, their decision to work with the original materials and order everything at one time is far more cost-efficient and the visual results will be superior.”

The highly intricate project, anticipated for completion in 2025, exceeds Landmark Preservation Commission (LPC) façade requirements, which only mandate original terra cotta be replaced on the first seven floors. Instead, 26 Court St. will be brought back to its original condition with terra cotta stones installed along all 28 floors.

“Natural terra cotta can add 30% or more to project costs. But by ordering the materials at one time, our client will see dramatic savings,” said KTA Project Manager Melissa Doherty. “This strategy additionally eliminates costly downtimes waiting for materials to arrive, along with the inevitable work stoppages.”

Central Construction Management methodically extracted the stones necessary for the preparation of the molds for the terra cotta installation, which were sourced and fabricated by Gladding, McBean, a 150-year-old company based in Sacramento, California. Representing the building owner on the project is JPS Management Corp.

Photo courtesy of Kamen Tall Architects P.C.

TOURNAMENT CHAIR

CHAIRS EMERITI

Robert E. Helpern*

Tannenbaum Helpern Syracuse & Hirschtritt LLP

Roger A. Silverstein* Silverstein Properties, Inc.

Samuel B. Lewis* SBL Property Consultants, LLC

Stephen B. Siegel** CBRE, Inc.

Renderings by wearevisuals

boca raton to welcome first glass building

No, it’s not in Miami, though you might be forgiven for thinking so. Glass House Boca Raton, the first modern glass building in the heart of downtown Boca Raton, recently celebrated the grand opening of the sales center for its 28 residences.

The building also will feature the city’s only rooftop pool oasis with ocean, Intracoastal and golf course views.

“We’re extremely excited to celebrate the grand opening of the Glass House Boca Raton sales gallery, which will give visitors and future residents a taste of what Glass House’s luxury residences will offer,” said Adam Gottbetter, vice president of finance and development of 280 E Palmetto Park Road LLC. “Boca Raton is booming, and we’re proud to be at the heart of downtown with top-tier dining, shopping and less than one mile from the beach.”

The 10-story, intimate luxury residential development launched sales in February 2024 and is situated at 280 East Palmetto Park Road, Boca Raton, Florida. Groundbreaking is slated for the first quarter of 2025, and the development is expected to be completed in Q4 2026.

The visionaries behind the design of Glass House include architecture by renowned West Palm Beach, Florida firm Garcia Stromberg, interior design by celebrity interior designer Wade Hallock of Miami-based Hallock Design Group and landscape architecture by Agtland of Delray Beach, Florida.

outs with two- to four-bedroom floor plans ranging from 2,504 square feet to 3,950 square feet. Purchasers have the option to combine for half- and full-floor residences. Each residence offers generous living, dining and entertaining areas, private or semi-private elevator access, nine-foot ceilings, floor-to-ceiling windows, a fullsize laundry room and a deep, private terrace with glass railings. Select residences include a den/office. Each residence has fully automated and integrated custom sun-shading/lighting control.

Offering expansive indoor and outdoor living spaces, residences include private terraces ranging from eight to 12 feet deep. The spa-inspired primary bathrooms feature dual-sink vanities and water closets, and mosaic shower floors. There are spacious walk-in closets in the primary bedroom. Gourmet kitchens boast custom Italian cabinetry, professional-grade Sub-Zero, Wolf and Cove appliances, gas cooktop, an island and heat-resistant European porcelain countertops and backsplash. A curated selection of finish packages is available for customization. Residences are integrated with a Crestron automation system for lighting, shades and climate control.

“Glass House Boca Raton sets a new standard for world-class living in Boca Raton. We have already experienced significant sales momentum in this architecturally significant residential offering and expect interest to remain strong as the desire for city centric living continues to grow,” said Jay Phillip Parker, CEO of Douglas Elliman Florida Region and president of Douglas Elliman Development Marketing, Florida.

“Glass House Boca Raton’s one-of-a-kind project with its unique downtown location will continue to set it apart in the market.”

The residences feature open concept lay-

The premier rooftop oasis includes a private pool, private cabanas, in-pool sun deck, Jacuzzi, fire pit and an outdoor catering kitchen with a commercial barbecue grill. A fitness center with outdoor turf lanes, infrared sauna, steam room and a plunge pool can be found on the first floor, in addition to a residents-only lounge, called the “Palmetto Lounge,” which will offer demitasse and a tranquil space to meet privately.

With monitored entries including a full-time doorman, Glass House offers two levels of underground parking with two parking spaces for every residence, including a limited number of climate-controlled, private, twocar garages with storage, a residents-only car wash, golf cart parking and charging station and parking for residents’ bicycles. Brightline’s new Boca Raton station is less than one mile away. Glass House Boca Raton also offers a generator for fire life safety and elevator service.

101 Warren St. photo by Kate

Glicksberg

Global Properties

Ask the Expert: Christian Rogers Elegran | Forbes

Christian Rogers, who recently joined Elegran | Forbes Global Properties as an associate real estate broker, has represented more than $650 million in transactions throughout his career. With a focus on ultra-prime location townhouses, condominiums and co-ops, he has been involved in some of the most significant transactions in New York City’s history, including one of the city’s highest-priced co-op transactions on Fifth Avenue at $50 million.

His new development experience includes pivotal roles in the marketing and sale of developments such as 93 Worth, 15 Renwick, 403 Greenwich, 550 West 29th St. and 3E3, as well as along with the representation of buyers in pinnacle projects such as 220 Central Park South. Here, he discusses the growth of his own business and trends in the luxury market.

What opportunities does joining Elegran | Forbes Global Properties offer?

For most of my career, I was at small and nimble firms that offered an intimate environment with personalized support both for agents and clients alike. Elegran | Forbes Global Properties offers this same white glove environment but with the completely unique advantage of the Forbes association and amplification. Elegran’s exclusive partnership with Forbes and Forbes Global Properties affords unparalleled exposure for my sellers’ listings across over 140 million people in the Forbes global audience and an incredible referral network of over 18,000 agents growing around the world. No other brokerage in New York City can offer this.

Similarly, our buyers have access to a consolidated platform of exclusive luxury properties across many different markets, from Aspen, Colorado to Palm Beach, Florida, Costa Rica to Croatia, all from the best agents around the globe. This platform has enabled me to be a true global advisor and support my clients with their real estate endeavors around the world. For those seeking discretion, I can provide my clients access to the Forbes Private Office platform, an invitation-only platform of private sales that sellers have requested not be listed on public portals such as the MLS (typically for privacy).

Last but not least, the Forbes network has already facilitated the creation of new and sincere relationships with top agents in other exclusive markets, such as Aspen, Colorado; Austin, Texas and Beverly Hills, California, which will certainly benefit our clients, many of whom own properties across multiple markets.

What is the state of the truly luxury market in New York City? What are people looking for now?

It is the segment of the market that continues to remain very strong due to extremely limited top-tier inventory, high demand and the lack of sensitivity to rates by those buyers. They’re seeking turnkey properties with scale, in ultra-prime locations such as the West Village (named in recent years as “the new Billionaire’s Row”) or the Upper East Side. [These include] completely renovated townhouses or large apartments that offer something unique in terms of location, views, scale and outdoor space.

This customer expects amenities. How have they evolved? Amenities have certainly evolved over the years, from fitness rooms and swimming pools to golf simulators, wine caves and ultra-luxurious spas, but the ultimate amenity continues to be privacy and impeccable service.

Who are the buyers now? Are they domestic, foreign?

We have seen the buyer pool at the very top end swing to domestic [buyers] quite significantly over recent years. These are typically third or fourth homes with primary residences in other (possibly more tax-advantaged) states, but they are the landing pad for clients to come and enjoy everything New York City has to offer, whether it be for business or pleasure!

What specific areas in New York — uptown, downtown — are appealing now?

In downtown, certainly the West Village is arguably in greatest de-

mand, followed by Tribeca, Soho and Chelsea. Uptown, it’s Lenox Hill, particularly between Park and Fifth Avenues and then more broadly into the Upper East Side. For the pied à terre buyer, it’s Central Park South and Columbus Circle, given that Central Park-facing condominiums on Fifth Ave are few and far between.

Is anything surprising to you about the market right now?

No, not really, because we deal with such a variety of factors in the market and in New York City real estate transactions. The market and the environment are always evolving, so we expect “surprises”.

Are you excited about the new developments? Do you steer your clients in that direction and if so in what cases?

We never steer clients!

The level of new development properties has risen incredibly over the last 20 years. The challenge right now is that very few viable sites remain in ultra-prime locations. There are probably two new developments that sit above the rest, and it’s no coincidence that they have been bought by the highest echelon of buyers. They are 220 Central Park South and 125 Perry St., a yet to be publicly marketed new development in the West Village that is approximately three to four years out from completion.

We have a very good read of what’s most important to our clients: location, level of finishes, views, proximity to favorite restaurants, etc. Once that is matched with desired price range, we place all the best options that fall within those parameters in front of them. Ultimately, they’re not just buying a piece of property, they are buying another aspect of their lifestyle, so it becomes a very personal choice for them.

Where are the best opportunities right now to buy low and sell (eventually) higher?

I think the Upper West Side will continue to evolve. There has certainly been a significant amount of new development there. There are a number of beautiful townhouses on great blocks with proximity to the parks that, if bought well and renovated, could be very interesting opportunities.

What about co-ops or land leases?

Our clients’ parameters most often predetermine whether a co-op could be a fit or not. For example, not all co-ops allow pieds à terre or purchases in trusts or LLCs, and they often have very stringent house rules and rental policies. The purchase process is also not completely in the control of the client so some, preferring certainty and more privacy, are willing to pay the premium for condominiums or townhouses.

Our clients from the United Kingdom are used to the concept of land leases under what they call leasehold properties, which are very common there. With purchasers who are not familiar with the concept, we do a fair amount of due diligence to understand the terms of the land lease for the specific building of interest, so that we can have an informed discussion about whether it fits within the clients’ parameters. We also work with attorneys who have significant experience in land leases so, again, it becomes a matter of preference once all the information is presented to the client.

More than 35 years of real estate, condominium & cooperative experience

WilkinGuttenplan uses expert industry knowledge in accounting, audit, and tax services to assist New York City real estate owners, developers, and investors of commercial and residential properties identify opportunities and guide them on implementing strategies to stay ahead of changing times.

Carol A. Sigmond Partner

Greenspoon Marder LLP

1345 Avenue of the Americas, Suite 2200

New York, NY 10105 carol.sigmond@gmlaw.com (212)524-5074

Condo-Co-op Helpline: Requirement for and Liability of a Structural Stability Special Inspector for Adjacent Property

Adjacent development is always problematic for co-ops and condos. This is not a revenue opportunity. Rather, it should be a time to ensure the structural stability and integrity of your building. Co-op and condo boards and their managing agents have tools available to improve protection when there is adjacent development. One of the most important, if not the most important, tools is requiring the naming of a special inspector responsible for the structural stability of the adjacent property.

Although the New York City Building Code has required a developer to appoint special inspectors/ structural engineers to be responsible for the stability of adjacent properties (structural stability engineer) for many years, enforcing this requirement has been the exclusive purview of the Department of Buildings (DOB). Additionally, there were issues as to duties owed to the adjacent property owner by the structural stability engineer. Many developers have ignored this obligation because of a lack of DOB enforcement. Times are changing, however, and not because DOB’s enforcement has improved but because adjacent property owners whose property is threatened or damaged by developers have some lawful self-help available.

The analysis of the self-help option begins with the language of section 3309.4 of the Building Code, which imposes absolute strict liability on anyone who “causes” excavation. Traditionally, this was interpreted to include the developer, general contractor and any excavation subcontractor. Historically, this has not included the developer’s architect. The issue of the developer’s structural engineer, geotechnical engineer and special inspectors for excavation and foundation has been evolving.

It now appears that geotechnical engineers and structural engineers who perform soil analysis, testing and design foundation and provide special inspections will be deemed to have “caused” excavation. I believe this will also apply to engineers who design dewatering systems. This creates a “duty” to the adjacent property owner which will support a negligence action. This means that they may be named as defendants in property damage actions, and their malpractice insurance will be available to help finance repairs.

However, there will be complications. Consider if an adjacent building has been damaged by differential settlement or being undermined by a developer, and the DOB demands a peer review of

the design or a design for a corrective plan. The peer review or corrective work engineer may be reluctant to become involved because of the potential for exposure to litigation based on events prior to their involvement. This is going to lead to very closely negotiated retainer and supplemental access agreements. Additionally, any peer reviewer will insist upon a current condition survey of the adjacent building. If the owner of the adjacent building is entitled to have his or her engineer join the walk-through and receive a copy of the report, then cooperation is advisable.

For co-op and condo boards and their managing agents, these developments do suggest some practical actions for buildings with adjacent developments. These include: demanding the developer to name a qualified structural stability engineer/ special inspector before work begins; demanding adequate insurance from contractors and developers; demanding a detailed inspection of the adjacent property — interior and exterior — from the developer and demanding a detailed and codecompliant geotechnical study and report from a developer. It also includes retaining for the affected co-op or condo, before work begins, a structural engineer who makes regular period inspections of the development site and the adjacent building, all fully photographed and documented and all at the sole cost and expense of the developer. All of these items should be included in any access agreement.

If there is pushback from the developer, do not be intimidated — these items are all consistent with the Building Code requirements. The courts generally enforce Building Code requirements in RPAPL section 881 proceedings.

In addition, the developer, the developer’s design team and the developer’s contractor should be investigated carefully before finalizing any access agreement. This investigation should include a litigation review for the contractor, the design team and the developer, and for the contractor and design team, a review of the DOB discipline records. If the developer or the developer’s team does not have a good safety record or has a history of damaging adjacent properties, insist that the developer retain a more qualified contractor to engage in work that impacts your property.

This column presents a general discussion. This column does not provide legal advice. Please consult your attorney for specific legal advice.

Frank DeLucia Senior Vice President Hub International Northeast

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

Three Drivers of Real Estate Umbrella Losses That are Raising Your Costs

Real estate organizations previously part of a Risk Purchasing Group (RPG, insurance customers who get together to purchase their liability insurance coverage from an insurance company) may be looking for a new umbrella policy at this year’s renewal. Disruption in the market after a major RPG carrier pulled out has left numerous habitational and commercial businesses without future umbrella coverage.

Real estate organizations with “vanilla” risks will be able to move to another RPG, while organizations with greater risk, i.e. those located in urban areas or with loss activity, may no longer be eligible for an RPG. The umbrella market is exclusively driven by major, catastrophic exposures and shock losses — those that go above and beyond a general liability policy’s $1 million per occurrence, or $2 million aggregate limits. Out of the ordinary losses, including fatalities, slips, trips and falls, accusations of negligence and assault typically fall under umbrella coverage.

While these claims are low in frequency, they’re high in losses and, therefore, carriers will be cautious to quote insurance if a portfolio has suffered a significant umbrella loss in the recent past.

Three features drive real estate umbrella losses: facility amenities, security and life/safety systems. Consider the following ways to reduce liability and make your facility a better risk for real estate umbrella carriers.

• Manage amenities. As the real estate market shifts away from traditional retail and moves toward entertainment amenities, features like playgrounds, pools, tennis courts and indoor rinks will be a major focus of a portfolio risk assessment. These amenities attract attention, both positive and negative. Having professional, third-party management of these elements and routine preventative maintenance will help ensure health and

safety standards are maintained.

• Comply with life/safety codes and standards. When quoting coverage, umbrella insurance carriers will want to know that occupants can get out of a facility quickly during a fire. Compliance with NFPA 101 means making sure exit doors aren’t locked from the inside. Some GL carriers won’t cover a partially-sprinklered building; therefore, fire claims in such facilities could fall to the umbrella policy.

Buildings in older cities may still have fire escapes grandfathered into the city code. If not maintained properly, fire escapes won’t work when needed.

Make sure your facility has an emergency plan. If the building staff doesn’t know how to manage during a crisis, it could lead to an unnecessary loss of life and potential negligence accusations. In the event of a serious incident, the GL policy limits could become exhausted, leaving the remaining costs to be paid out by the umbrella policy.

• Assess and upkeep security measures. Do a security assessment, speak to local law enforcement and understand crime in your immediate neighborhood. Know that it’s the property owner/ manager’s responsibility to be aware of the risks, institute controls, security equipment and maintain them. For example, if a gate is broken or left open, or a known hazard on the property isn’t fixed in a reasonable amount of time, the carrier will deem this “negligence” on the part of the property owner/ manager, which often carries a costly verdict.

Seek guidance from experienced insurance advisors to understand how to maintain good standing with umbrella carriers and mitigate potential risks effectively. By addressing these key factors, real estate organizations can reduce their exposure to umbrella losses and improve their insurability in the market.

A MODERN APPROACH TO COMMERCIAL REAL ESTATE,

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.

COLUMNS

Kris Kiser

Outdoor Power Equipment Institute

TurfMutt Foundation Equip Expo

1605 King St. Alexandria, VA 22314

turfmutt.com

opei.org

(703)549-7600

Eight Ways Realtors Can Help Clients “Yard Their Way” During This Summer Selling Season

According to a recent poll commissioned by the TurfMutt Foundation and conducted online by The Harris Poll, nearly three-quarters of Americans overall (72%) say a spacious yard would be at the top of their wish list if they were looking for a new home. Since yards are a must-have feature for many buyers, savvy real estate professionals should tap into this to gain a competitive edge this buying season, says the TurfMutt Foundation, which advocates for the care and use of the green space around us.

As more people are spending time outdoors including working, working out, dining and even vacationing — a trend the TurfMutt Foundation calls “backyarding” — there is a greater emphasis on homeowners personalizing their yards to suit their unique personalities.

By using TurfMutt’s backyard personality types as a guide, real estate agents can help clients find the best property where they can “yard their way.”

Landscaper

These clients plan to create a yard that makes neighbors green with envy. They are not afraid to put a little DIY effort into their lawncare and know how to maintain a healthy living landscape all year long. They understand the importance of putting the right plant in the right place, so their green space will thrive year-round. Plus, they have the latest outdoor power equipment — or will upgrade as needed for their new yard — to make even big jobs easier.

Outdoor Athlete

Forget basement workouts. This buyer wants an outdoor gym and exercise space that makes the neighborhood running club want to take a pit stop at their home. They are looking for a yard where they can stay active and inspire others to work out, as well.

Work from Home Pro

For this type of backyarder, working from home means that nature is their office and that backyard critters are their office mates. They plan to use living landscapes for their video call backdrops and sunlight to illuminate their workspace. They will prep for seasonal shifts by adding blankets, heat lamps or more to stay comfortable working outside year-round.

Nature Lover

These homeowners know that nature starts at their own backdoor, and their dream yard is also a haven for pollinators and backyard wildlife. They will spend their free time in the urban habitat of their living landscape watching and supporting the birds, bats, butterflies and other wildlife that count on their yard for food and shelter.

Kid Zone Creator

A true family type, this buyer is looking for a backyard to keep their children safe and entertained. They are interested in creating an outdoor fun zone their kids will never want to leave. Their wish list includes a flat area of sturdy turfgrass to play sports, ample areas for backyard activity zones, and lots of trees for shade.

Pet Pamperer

According to recent research from Rover, 22% of Millennials with a pet chose to delay having kids or will not have kids at all, and 10% of all U.S. parents delayed having a child or decided not to in favor of getting a pet instead. If your client’s focus is on Fido, show them properties with an area of turfgrass that can stand up to pet play.

They will also want trees and shrubs that are strategically planted for shade and sectioning off the dog’s “business” area from the rest of the yard. As they plan their pet playground, they should be reminded to be aware of plants that are toxic. (For a complete list, visit ASPCA’s list of non-toxic and toxic plants.)

Entertainer Extraordinaire

Family milestones, birthdays, graduations, reunions and neighborhood barbecues make the yard the place to gather for this buyer. You will want to set them up for success by showing them yards with plenty of room for patio furniture, a fire pit, yard games, outdoor seating, string lights and perhaps an outdoor kitchen.

Zen Master

Buying a home can be a stressful proposition, and these clients plan to use their yard to de-stress and relax. Whether it is coffee in the morning or yoga in the afternoon, Zen Masters know that spending time outside is good for their health and well-being and will want a tranquil yard that can provide these benefits right outside their backdoor.

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 and Deals: Flooring and Backsplashes and Tiles, Oh My

Maybe it’s too much time in front of HGTV, or my propensity to buy new construction when home shopping (three and counting), but I love looking at stone — floor tiles, backsplash tiles, countertops, you name it. It took me five years to decide on a backsplash in my last house — because there was just so much to choose from!

That’s why I was so excited to see the announcement that Floor & Décor has opened its first store in New York City at Liberty Bklyn, not far from where I grew up in Sunset Park, Brooklyn. The store is open seven days a week with extended hours from 6 a.m. to 10 p.m. and serves both homeowners and the construction trade. Available are free design appointments for all customers, a loyalty and rewards program for construction professionals and flat-rate delivery to apartments, homes and job sites within a 60-mile radius.

But it’s not just because of my love of tiles — it’s also a great way to reuse what could have been problematic space.

The 129,000-square-foot warehouse-format store is on the second floor of the complex and replaces Buy Buy Baby and Bed Bath & Beyond, which closed after the company’s bankruptcy. Floor & Decor’s 230th store in the chain, it also is much larger than the typical 70,000 square feet found elsewhere around the country.

“Bringing our full-sized warehouse store to New York City’s most populous borough is incredibly exciting, given the limited opportunities in Brooklyn to accommodate a home improvement store of our immense magnitude,” said Bryan Dodge, chief business development officer at Floor & Decor. “Brooklyn also illustrates our unique ability to adapt our store model to meet our customers in their neighborhoods.”

Liberty Bklyn is an interesting project in itself, epitomizing a number of trends. Located on the waterfront, it’s the redevelopment of a former U.S. Navy storage facility at 850 Third Ave., next to Industry City, into an industrial, retail and office complex. According to owners Salmar Properties and

Madison Capital, Liberty Bklyn houses a 3.2-acre Brooklyn Grange rooftop farm, a 386-spot parking lot, a 60,000-square-foot ground floor loading zone, 17 loading docks and three additional full drive-in doors, 18 brand-new elevators, three office lobbies, on-site dining, a backup generator and superior and redundant fiber optic infrastructure. Other retailers include Saks Off Fifth, as well as restaurants.

The two continue to reposition the property to take advantage of the continuing rebirth of the neighborhood. Nearby are outlet stores for ABC Carpet & Home, RH and West Elm, creating a valueoriented home goods headquarters.

That is due to Industry City, the redevelopment of Bush Terminal into eight buildings totaling 6 million square feet of manufacturing and office space, followed by a food court and, most recently, the NYU Tisch School of the Arts Martin Scorsese Virtual Production Center, which will open to NYU Tisch students in the fall.

For decades, this area of Brooklyn has remained underdeveloped and underutilized, just like the waterways it borders. The Gowanus Expressway above Third Avenue was seen as a psychological and physical barrier to development the entire time I lived closer to Eighth Avenue. Even now, the city is trying to figure out how to make that area safer for pedestrians and cyclists.

But just as ferries now serve thousands of commuters each day (Sunset Park was the interim stop on my commute from the Financial District to the Rockaways), developers are creating entirely new neighborhoods near Liberty Bklyn. Sunset Park is seeing new housing being proposed and built — and those new residents might just need to visit Floor & Décor to outfit those homes.

It’s enough to make a girl homesick. Then again, it’s probably just as well that I don’t live anywhere near my old neighborhood so I can’t just make a quick visit to that new store.

You’d never see me again.

Garrett Kelly, CPA

Senior Manager, Tax & Business Services

Marcum LLP

Merrimack, NH

Garrett.Kelly@marcumllp.com

The Tax-Savings Power of Cost Segregation Studies

Cash flow is great, but are you tired of paying taxes on your cash-flowing investment properties? Are you a real estate professional who gets a surprise tax hit when relying on those cash reserves? This article will discuss what a cost segregation study is and how cost segregation can be used effectively by real estate investors for tax savings and increased cash flow.

What is a Cost Segregation Study?

Cost segregation is the process of properly identifying the portions of real estate that can be reclassified into various class lives. Certain portions of real estate can be depreciated at a faster rate than the typical 27.5-year or 39-year class lives that many people know. This allows accelerated depreciation expense, which can, in turn, increase tax savings and cash flow. Certified engineers perform an on-site study of the real estate. These engineers identify the varying asset classes that are a part of the property. A signed report is produced for the owner’s records. This report supports the allocations to the various class lives.

Basic Example: $3.9 Million Building

If a taxpayer buys a commercial property for $3.9 million, the IRS allows them to depreciate that building over 39 years. This results in $100,000 of depreciation each year.

If the property still reports taxable rental profits, for example $200,000, even after $100,000 of depreciation expense is deducted, this can create current-year tax due on that $200,000 of taxable income. If the taxpayer is in a higher tax bracket, this income could be taxed as much as 37%. This would result in about $74,000 in taxes due on the taxable rental profits.

However, if the owner has a cost segregation study performed on the $3.9 million property, this can potentially eliminate the taxable rental profits for multiple years. In our example, the study allocated the total depreciable cost into three class lives: $400,000 to seven-year assets, $600,000

to 15-year assets and the remaining $2.9 million as a 39-year asset. This study resulted in $1 million being allocated to shorter class lives, the seven- and 15-year class lives. These seven- and 15-year assets are potentially eligible for bonus depreciation and/or Section 179 expensing. This additional depreciation reduces taxable income and eliminates tax due on the rental profits.

The less nerdy way to explain it is that the taxpayer can accelerate tax depreciation deductions, resulting in an additional $74,000 of cash flow per year for the next three years.

What would you do with $222,000 of cash savings over three years? For many of our clients, this allows for re-investment into new real estate deals or merely not paying unexpected taxes when you were relying on that income.

When Should Someone Perform a Cost Segregation

Study?

There are many different tax savings/planning strategies that you can implement with a cost segregation study. The primary goal is to generate tax savings through accelerated depreciation.

Strategies to Consider:

1. You can perform a retrospective study and report the additional depreciation deduction in the current tax year. This is a section 481(a) adjustment. We recommend consulting a tax advisor when considering something like this.

2. If an investor sells one property for a large capital gain, he could offset that gain by running a cost segregation study on another property he owns. The passive tax loss from the one property may be able to offset the passive gain from the sale of his other property.

Many tax savings strategies can be implemented with a cost segregation study. If this interests you, you should work with a CPA to determine if a study could be beneficial.

COLUMNS

Pamela Knudsen Senior Director of Compliance Services

Avalara MyLodgeTax

255 South King Street, Suite 1200 Seattle, WA 98104 pamela.knudsen@avalara.com (206) 8264900 x1039

Unstoppable STR Demand Will Push Cities to Adopt Sensible, Sustainable Policies

Travelers of every stripe — from corporate road warriors to nurses and technicians and first responders, to vacationers and “staycationers” — have more lodging options today than at any other time. Many of them choose to take advantage of multiple lodging types every year, from hotels, motor lodges and family-run bed & breakfast inns, to short-term rentals (STRs), depending on their needs and wants for a particular journey. And just as with the aforementioned traditional lodging types, travelers have embraced and adopted STRs for their distinct, purpose-built attributes.

Given the trends we’ve seen over the last couple of years, as well as what we can generally expect to see through the rest of 2024, it’s safe to say that STRs have made it through their difficult teen years and are well on their way to “growing up” and more consistently figuring out the responsibilities of following the rules and being a good citizen.

Communities, too, have been learning through trial and error, often making drastic course corrections that limit the full range of benefits a variety of lodging options can offer. We need look no further than cities such as New York, San Diego and Los Angeles to see that heavy-handed STR regulations don’t always achieve the desired results, and very often do exactly the opposite.

Rather than blanket bans, municipalities have been shown to do better with thoughtful, “compliance first” STR regulations, which allow for a host of benefits. These include revenue streams from lodging tax, license, registration and permit fees, a boost to retail businesses from a strong flow of tourists and even improved home values through regular upkeep of STR properties. As nearly every region of the country grapples with the question of STR regulation, cities have a choice to make — and they’d do well to consider it carefully.

The recently hard-won maturity of STRs may be well-timed to help cities make this choice, especially given the economic forecast. Municipal bud-

get projections in select areas look rocky as we move toward 2025, particularly in the cities that have opted for blanket bans of STRs rather than a more measured approach. Despite these efforts to curb and curtail STRs, this lodging segment has proven time and again its staying power.

The fact of the matter is that, empirically speaking, bans have proven to be a poor solution. A new study out of the Harvard Business Review has found that, while improving the availability of affordable housing stock is often one of the key reasons for banning STRs, these bans haven’t been shown to correlate with an increase in affordability. They actually have a negative impact on both housing prices and small businesses. The Milken Institute had similar findings when looking specifically at California, and early reports coming out of New York don’t seem any more promising regarding the effectiveness of the recent STR ban.

Sensible and sustainable STR policies, along with strong compliance measures, are a much more desirable solution for municipalities to ensuring ongoing choices for tourists and other travelers, in addition to bolstering local retailers and businesses directly serving the STR ecosystem. As cities move into a new fiscal era absent emergency pandemic funding, a predictable influx of transient occupancy tax (or lodging tax) and other revenue from STRs becomes an attractive option.

Just as requesting an Uber is now fully integrated into modern transportation, along with personal vehicles, taxis, mass transit or asking a friend for a ride, STRs maintain an unstoppable trajectory in lodging preference for travelers, equals alongside hotels and other preferred options for spending time away from home.

Continued maturation of STRs in the vacation lodging sector, led by tenacious, resilient front runners like Airbnb, will benefit travelers, hosts and municipal coffers alike, enabling growth and sustainability in this sector.

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

HONOREES

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

Mark R. DeFazio

Mark F. Engel CEO of Langsam Property Services Corp.

Joel Ditchik, Esq. Steve Tishco, Esq. Partners

Ditchik & Ditchik PLLC

370 Lexington Ave #1611

New York, NY 10017

steve@ditchik.com

joel@ditchik.com

(212)661-6400

NY Court Limits Discovery in Tax Certiorari Proceedings

While discovery motions are exceedingly rare in New York State real property tax litigation matters (tax certiorari), the New York State Supreme Court (New York’s trial level court) recently issued a pair of decisions denying Respondent New York City’s motions to compel petitioners to turn over various items the city deemed crucial to its defense of the matters. These decisions are victories for taxpayers and should serve, at least to some degree, to expedite the notoriously lengthy delays associated with resolving property tax disputes.

Under Article 7 of New York State’s Real Property Tax Law, tax certiorari proceedings are considered “summary” proceedings. As such, discovery can only be directed by leave of court and only if the discovery is deemed “material and necessary”.

While this standard has generally been interpreted quite liberally by the courts, the recent decisions issued by Justice Lori Sattler in New York County demonstrate that the standard is not without limits.

In the first case, the Petitioner (owner of a Manhattan hotel represented by our firm, Ditchik & Ditchik PLLC) brought a challenge to the assessed value (and, therefore, to the real estate taxes) of its property in relation to the 2020/21 tax year. Respondent City sought to compel disclosure of appraisal reports made in connection with 2020 and 2021 mortgage modifications for the property in question. The City claimed these reports contained valuable information (including conclusions of value) that were material and necessary to its defense of this challenge. After considering Petitioner’s arguments to the contrary, the Court disagreed with the City and denied its motion.

Every tax certiorari trial involves the parties’ expert real estate appraisers, who prepare independent appraisal reports and arrive at their own conclusions of value for real estate tax purposes specifically. The Court acknowledged that process and understood that the appraisals being sought through the City’s motion were prepared for a completely different and unrelated purpose (namely, mortgage financing) and were therefore not material and necessary to the City’s defense.

Further, the City could only speculate that these reports might have some additional information that it would deem useful; however, that mere speculation was not enough to compel disclosure. In fact, Petitioner had already voluntarily provided all the basic property-related information the City sought during pretrial negotiations. Having

resolved this discovery matter in favor of Petitioner, the case will now proceed with an exchange of expert appraisal reports, then potentially to trial, as the summary proceeding nature of this type of litigation contemplates.

Similarly, in a second recent decision in a different tax certiorari challenge, Justice Sattler denied the City’s motions to compel Petitioner (an owner of two small laundry room units) to provide a variety of information the City sought during pretrial negotiations over the correct assessed values of those laundry units.

Specifically, while the two units in question were owned by Petitioner (and therefore not leased out to third parties), Petitioner also owns/manages laundry units in the city where leases are in place. The City sought copies of the leases at Petitioner’s other properties, claiming they were relevant comparables to the property in question and would provide material and necessary evidence to assist the City in its defense.

The Court again disagreed, stating that it cannot compel Petitioner to produce leases that are not the subject of the proceeding at hand prior to the parties’ exchanging appraisals. Each party’s independent appraisal report produced in connection with the litigation would presumably rely on its own analysis of the market/leases available.

Additionally, each party would have the opportunity to cross examine the other party’s expert with respect to what each relied on in arriving at its value. Therefore, the Court held that requiring Petitioner to produce this type of information (wholly unrelated to the subject property) during pretrial negotiation would not be appropriate. The Court further held that Respondents were not entitled to information related to the subject properties’ business income, as that was not relevant to the valuation dispute which centers around the appropriate rental value of the spaces.

Taken together, these decisions reinforce the fact that while the discovery standard is generally a liberal one in tax certiorari proceedings, the summary nature of these proceedings place some limitations on lengthy discovery disputes.

We are pleased that the Court agreed with the Petitioners in both cases that the City’s request, which would only serve to delay the timely resolution of these matters, was unnecessary and inconsistent with the summary nature of the proceedings.

Your Legal Partner for Financial Excellence

Curtis Williams

National Land Realty

Richmond, VA

(855)384-5263

The Four Technologies Transforming CRE Management, Explained

Commercial real estate (CRE) management has always been a tremendously complex affair. It is therefore unsurprising that artificial intelligence and other data-processing innovations are making some of their greatest leaps, pragmatically speaking, in precisely that sector.

In recent years property technologies — or proptech — have begun to relieve the burdens of commercial managers by sorting through unmanageable quantities of information within seconds and providing comprehensive insights that may otherwise have been lost to the noise.

Yet with each year come new products and new acronyms to solve the same fundamental problems, all of which must be understood and applied by the CRE manager who wishes to take advantage of the change rather than being overrun by it. This year’s lineup, from BIM to virtual reality, is briefly examined below.

Building Information Modeling (BIM)

Building Information Modeling (BIM) systems are, essentially, very intelligent blueprints. They work by constructing three-dimensional models of planned or pre-built buildings, storing metadata — like the material, vendor and function of a door — within the various components and utilizing artificial intelligence to simulate performance. By doing so, BIM software like Autodesk can advise developers and managers to make more informed decisions more quickly, optimizing the efficiency of the building from conception to completion and, potentially, all the way through eventual demolition.

Computer-Aided Facility Management (CAFM)

Computer-Aided Facility Management (CAFM) software is concerned with the utilization and allocation of space. Efficient use of workspace is essential for any commercial property, and the significance is compounded as both the number of properties and the number of employees to be managed increases. The most advanced CAFM proptech, such as IBM’s Tririga, do this by using natural language processors to combine employee input and behavior with data from Internet of Things (IoT) assets in order to form a comprehensive picture of how workers are using their spaces. CAFM systems can then guide managers toward

a better, cleaner and more efficient workplace environment.

Computerized Maintenance Management Systems (CMMS)

Computerized Maintenance Management Systems (CMMS) are designed, somewhat evidently, to help manage maintenance. They do so by monitoring the various assets on a property and notifying managers when repair or basic maintenance work must be scheduled. More recently, software such as IBM’s Maximo have added the predictive nature of AI to the preventive nature of the CMMS, utilizing the IoT to foresee potential problems and identify areas of inefficient use. In this way, CRE managers can increase the longevity of their individual assets while minimizing or, at least, controlling the cost of operation.

Virtual Reality (VR) Hardware

Virtual Reality (VR) is a term as familiar to popular culture as it is to the hundreds of industries that are already benefiting from its significant potential. Nor is VR hardware without use in the CRE sector, where developers have begun to use immersive experiences to bring digital design, virtual site visitation and remote collaboration to life, so to speak. This is done via headsets, bodysuits and more recently, per Disney’s HoloTile, live movement floors. These increasingly effective means of emulating physical presence are also being combined with AI technology in order to comprehend user input and blur the lines between literal and virtual reality.

The Bottom Line

None of the software discussed in this overview is new to CRE management. Rather, they are technologies that solve intrinsic problems in ever more efficient and practical ways by the year.

Viewed in that light, proptech like these are merely effective management tools. And as with any tool, these technologies can be as damaging to an organization when used in ineffective ways by untrained employees as they can be revolutionary when carefully administered. When due diligence is done and real needs can be addressed, however, today’s proptech can help CRE managers see more, and more clearly, than ever before.

The Community Housing Improvement Program invites you to their 26th Annual Golf and Tennis Outing. Starting with breakfast, golfers can enjoy the driving range, putting greens, and shotgun with lunch served on the course. The doubles tennis tournament begins right after lunch. The activities conclude with a cocktail and dinner party.

or for

COLLEGES

Photos by Edward Caruso Photography

Lehman College Opens Nursing Education, Research and Practice Center

Marking the completion of Lehman College’s most significant capital project in its history, the $95 million Nursing Education, Research and Practice Center (NERPC) officially opened its doors with a ceremonial ribbon cutting. The Lehman College leadership and students, elected officials, representatives of the owner City College of New York (CUNY), project manager the Dormitory Authority of New York (DASNY), Urbahn Architects and contractor Citnalta Construction led the ceremonies.

Nursing is one of the most popular majors at Lehman, and the department expanded its offerings with a new doctor in nursing practice (DNP) program that began in Fall 2020. The NERPC consolidates the functions of the department, which had been previously located in different venues, into one integrated and purpose-designed facility.

“The new Nursing Center puts our students at the head of the class to prepare them for countless scenarios they’ll encounter everywhere from a hospital to a home,” said Dr. Eleanor (Nora) Campbell, chair of the Lehman College Nursing Department. “The new technology and overall environment of the building creates an amazing space for learning complicated issues and gives students hands-on experiences they can’t get anywhere else.”

The $95 million, 52,000-square foot NERPC houses classrooms, teaching and research laboratories, faculty offices and support spaces for both undergraduate and graduate programs of the Department of Nursing.

“Urbahn and the engineering team designed the building and roofing to meet the sustainability and energy efficiency requirements of the New York City Climate Mobilization Act and New York City Local Laws 92 and 94,” shared Urbahn Architects Principal-in-Charge Natale V. Barranco, AIA, LEED AP. All windows have double insulated glazing. A solar photovoltaic (PV) power generation system has been installed on the reflective SBS membrane system roof. Approximately 22% of the roof’s area is covered by PV panels that generate a total of 43.2 kW of power for the building, a tenfold increase of the law’s requirement of 4kW.

The new, five-story building is located on the campus mall, between Davis Hall to the north and Carman Hall to the south. The site pre-

sented a stylistically challenging architectural context with nearby structures showcasing varied architectural styling. Davis Hall, built in 1934, was designed in the traditional gothic revival style prevalent on university campuses at that time. Carman Hall was constructed in 1971 and has a minimalist poured concrete façade again typical of its era. The NERPC façade incorporates concrete panels, stone, brick and storefront. The exterior of the basement and the two stair towers is clad in brick to ground the building. On the first floor, a curtain wall storefront system echoes Carman Hall. Fiber-reinforced cement panels with punched windows create a rainscreen to enclose the second and third floors, referencing the stone and concrete of the adjacent buildings.

The center offers a simulated clinical environment equipped with: maternity, pediatrics, ICU and medical surgery wards with 22 simulators; wet and dry research labs; 20-bed nursing skills lab; computer labs; hyflex classrooms; activities of daily living apartment and student lounges and social spaces.

“The building is designed to promote collaboration, with casual gathering areas to support learning beyond the classroom,” explained Urbahn Associate Joseph Zappulla, CPHC, who participated in the project’s conceptual design phase.

A wood panel feature wall faces the entrance. In an adjacent space, the student lounge is enclosed in a “glass box” that provides unobstructed views of the campus walk and athletic field. In the lounge, recessed seating nooks with upholstered benches are framed with wood paneling that match the entry. Wood ceiling panels, some perforated for acoustical properties, extend through the lobby and lounge. An architectural stair, with wood treads, glass rails and wood handrail, connects the lobby and the nursing suite in the lower level. A second student lounge with banquet seating and vending machines is also located on this level.

Energy-efficient LED lighting fixtures are specified for all spaces. Recessed fixtures are used in the suspended ceilings in both classrooms and offices. Cove fixtures wash the walls of the circulation spaces with light.

The site, which previously contained a one-

story bookstore and a parking lot, presented significant design challenges. This portion of the Lehman campus was originally a part of the adjacent Jerome Park reservoir that was filled in with shot rock from the NYC subway construction in the early 1900s. The bearing strength of the soil is poor, and the depth of the bedrock varies between 20 to 60 feet over the site. During the initial phase of construction work, Citnalta’s construction crews installed over 100 caissons with pile caps to support the foundation grade beams. The caissons are 10inch reinforced steel cement with steel casing.

The cellar level is completely below grade and contains mechanical spaces housing air handling and heat recovery units, plumbing infrastructure, and telecommunications equipment.

The basement level is dedicated to hands-on nursing simulation (SIM), physical assessment, and nursing skills labs. HKS,designed the high-fidelity simulation suite, skills training labs, and graduate research labs.

Most of the campus buildings have elevated entries averaging five to six feet above grade. The first-floor elevation of Carman Hall is seven feet above grade, and it is surrounded by a sunken plaza. The design team carefully coordinated the elevation of NERPC with the surrounding elements to create a cohesive plan. The basement level matches the elevation of Carman Hall’s sunken plaza.

A monumental entry plaza facing Campus Walk incorporates stairs and a ramp leading to both the first floor of NERPC and to the adjacent sunken plaza below. The designers incorporated linear lights into the undersides of stair handrails to add a dramatic lighting effect to the plaza and the entrance/Landscape architect Edgewater Designs has created a buffer of landscape material, including flowering trees and ground covers to soften the perimeter of the pavers and poured concrete surfaces of the access corridor and the sunken plaza.

On the first floor, full-height glass along the north wall creates a welcoming entry into the building. The interior design employs biophilic concepts and materials to create a psychologically nurturing environment. Interior finishes utilize natural materials and tones to create an earthy, soothing atmosphere, most prevalent in the public spaces near the entry.

ARCHITECTURE | ENGINEERING | CONSTRUCTION

reviving a classic country club

At 45 years old, even the greatest country clubs can use a bit of a facelift, and the historic Desert Horizons Country Club in Indian Wells, California, just completed a $25.4M renovation.

The much-anticipated project included improvements and expansion to the main clubhouse as well as a complete revamp of the tennis courts complex, including a new pavilion structure.

Originally opened in 1979, the private country club built on a former date orchard is now a spacious resort boasting mountain views tranquil lakes and several recreational offerings, including tennis, pickleball, bocce ball and an 18-hole championship golf course designed by famed golf course architect Ted Robinson.

The main clubhouse renovation includes a new, twostory, 35,000 square-foot addition to the country club, creating modern amenities for members and guests. The renovation provides new locker rooms, lounge rooms, card rooms, wellness center, fitness level, snack bar and golf shop with golf offices with new mechanical, electrical and plumbing work throughout. There is also a new commercial kitchen on site servicing the restaurant.

Extensive exterior improvements were made to the landscaping with the addition of a new water feature, and the renovation and expansion of the existing porte cochère.

“Members and guests of Desert Horizons County Club can enjoy a beautiful new clubhouse with multiple amenities,” said Karl Kreutziger, president at C.W. Driver Companies, the builder that completed the construction. “The aesthetics of the club has stayed true to the original, but also enhanced the functionality and accessibility of the space.”

C.W. Driver Companies is working with the architecture firm of Melzer, Deckert & Ruder Architects Inc.

Desert Horizons Country Club sits in a prime location near the Indian Wells Tennis Garden, McCallum Theatre and mountain and desert hiking trails, as well as the vibrant offerings of the El Paseo shopping district.

Photos courtesy of C.W. Driver Companies

T&T Construction Management Group Inc., a woman-owned concrete specialty contractor, has completed Project Channel, a Target distribution center in San Antonio, Florida. This nearly two million-square-foot shell construction project featured a maintenance building, pump house, guard house and transportation building. The massive project has over 70,000 cubic yards of concrete and was completed in just over 10 months. The general contractor for the project was Layton Construction.

“We were honored to partner with Layton Construction to deliver this large-scale building in record time,” said T&T Business Development Manager Ryan McDavid. “This new distribution center will provide great employment opportunities for the San Antonio community.”

T&T had to overcome material and supply shortages in order to meet the accelerated project schedule. Additionally, two hurricanes and a tropical storm struck the site during the project, requiring close collaboration between the partners to solve several on-site logistical issues.

Target is one of the largest retailers in the nation. One of the most challenging components for T&T was reinforcing the 417,000-square-foot second-floor mezzanine with D9 mesh.

“Our success is credited to our great vendors and partners that played a critical role,” McDavid said.

For Project Channel, the T&T Construction team provided 9,230 cubic yards of foundation; 30,000 cubic yards of slab-on-grade; 9,800 cubic yards of TWP; 14,509 cubic yards of paving and 6,900 cubic yards of slab-on-metal deck. Throughout the construction process, T&T Construction Management Group ensured all phases were executed on time and aligned with the client’s goals.

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BBX Logistics Properties Appoints Stone as Vice President of Acquisitions

BBX Logistics Properties, a logistics development firm specializing in high barrier to entry, infill locations in Florida and other eastern U.S. markets, has appointed Max Stone as vice president of acquisitions. In this role, Stone will focus on growing BBX Logistics Properties’ development pipeline in strategic eastern U.S. markets, reporting to Mark Levy, president of BBX Logistics Properties.

“We are thrilled to have Max join the BBX Logistics Properties team,” Levy said. “With his remarkable expertise and extensive industry background, he is the ideal choice to lead our acquisition endeavors. We look

forward to his invaluable input as we move forward with our expansion plans within the logistics sector.”

Prior to joining BBX Capital Logistics Properties, Stone served as manager of investments with CapitaLand in Los Angeles. Before that, he held roles at Bridge Logistics Properties and BKM Capital Partners, where he primarily focused on acquisition and development efforts in infill locations across the western U.S. He has facilitated transactions exceeding $1.5 billion in value.

Stone graduated from the University of Miami Herbert School of Business in 2017.

Ferguson Partners Announces Beatty as President

Ferguson Partners, a talent management and strategic advisory firm for the global real assets industries, has appointed Graham R. Beatty as president and nominee to the company’s board.

Beatty will lead the growth of Ferguson’s global executive recruitment practice and help build out both the company’s international platform and its North American business. He will also stay actively involved in client matters along with developing strategic and operational responsibilities. He will report directly to William J. Ferguson, co-founder, co-chairman and CEO of Ferguson Partners, regarding the firm’s advisory businesses and to the board on enterprise matters.

He will be based in the firm’s New York office and will frequent its Chicago headquarters as well as other office locations across the globe. Beatty brings more than 20 years of experience to his new role.

He has overseen C-suite executive search advisory and board director recruitment for numerous organizations across real estate, including investment management platforms, private equity-backed portfolio companies and real estate owners, operators and developers. He was most recently a partner with Heidrick & Struggles International where he served as the Americas real estate sector leader since 2015.

“With a track record of success and unique understanding of today’s complex market, Graham is fully prepared to lead our company into the future by building upon Ferguson’s current strengths and further expanding our proven talent management solutions,” said William J. Ferguson.

Beatty began his career on the emerging markets fixed income desk at UBS and has held positions with global executive search firms throughout his career.

Newmark Names Jastrzebska Managing Director, Global Managed Services

Newmark has named Ania Jastrzebska as managing director, Global Managed Services, to further expand its managed services capabilities, with a focus on lease administration, property accounting and asset management services. Jastrzebska will partner closely with Newmark’s full spectrum of owner and occupier service lines.

Jastrzebska will oversee the continued development of Newmark’s managed services, focusing on driving value to existing and new clients. Her efforts will address market challenges, particularly in unstructured data management, accounting talent shortage and increasing compliance.

“The strength of Newmark’s existing top talent and Ania’s ability to build a strong, consolidated management and consulting structure will be key as we aim

to deliver comprehensive offerings to our clients, ensuring they experience the most tailored advisory and reliable technologies to optimize their business,” said Liz Hart, president of leasing, North America. “Ania’s proven expertise in developing managed services business makes her an ideal leader to advance our strategy for this capability, an offering many of our clients will benefit from.”

Jastrzebska brings over two decades of experience in commercial real estate services and outsourcing, with over 10 years dedicated to advising clients on operational and technological transformation. Her expertise encompasses the management of both domestic and international real estate portfolios, with a focus on optimizing operations across various industries. Before joining Newmark, Jastrzebska was managing director, global real estate services lead at Accenture.

Shopoff Realty Investments Promotes Hutchison to SVP

Shopoff Realty Investments, a national manager of opportunistic and value-add real estate investments, has promoted Christy Hutchison to senior vice president, national accounts.

“Christy has been an essential member of the Shopoff distribution team for more than seven years, expanding and nurturing our relationships with the broker-dealer community, registered investment advisors (RIAs) and family offices,” explained Shopoff Realty Investments President and CEO William Shopoff. “This promotion reflects her hard work, and the immense value she brings to Shopoff. We look forward to supporting her further growth in the coming years.”

Hutchison joined Shopoff in 2017 as a national accounts manager and was later promoted to director, national accounts. During her tenure with Shopoff, she has expanded her focus beyond cultivating broker-dealer relationships to encompass executive and leadership functions, demonstrating a deeper under-

standing of the securities industry and collaborating closely with the distribution and real estate teams.

In her new role as senior vice president, national accounts, she will play a role in the company’s growth and expansion by driving business development initiatives and managing strategic partnerships with RIAs, broker-dealers and family offices. She recently was elected to the board of directors of ADISA, the national association focused on the alternative investments industry.

Prior to Shopoff, she served as national accounts manager at New York-based alternative investment firm First Capital Real Estate Advisors, where she was responsible for building out the independent broker-dealer and RIA channels. With an extensive history in the alts space, she began her career as an operations analyst for energy hedge fund, AAA Capital Management, in Houston, Texas. She then began taking on more sales-focused roles upon her transition to Altegris Investments.

Madison Realty Capital Taps Tejpaul as Managing Director

Madison Realty Capital, a vertically integrated real estate private equity firm focused on real estate private credit, announced that Samir Tejpaul has joined the firm as managing director and head of capital markets. He is based in New York and will report to Brian Shatz and Josh Zegen, co-founders and managing principals of Madison Realty Capital.

Tejpaul has more than a decade of commercial real estate and investing experience leading loan origination and structuring, alternative asset backed lending and institutional capital raising initiatives. Most recently, he served as managing director and head of credit capital markets and specialty asset finance for Affinius Capital (formerly Square Mile Capital).

During his tenure, he was responsible for sourcing, negotiating and structuring debt and equity transactions, capital raising and managing the firm’s capital markets relationships. Since 2018, Tejpaul has led, structured or financed billions worth of gross lending deals across a variety of strategies, including transitional bridge loans, construction loans, preferred equity, CMBS and subordinate debt.

“Samir is a seasoned real estate investor with a history of scaling and driving value creating initiatives at real estate investment firms, and brings with him deep relationships with borrowers, asset managers, and institutional allocators,” said Zegen and Shatz. “Importantly, Samir has the entrepreneurial spirit and solutions-oriented mindset we seek and cultivate in all of our people. The need for experienced lenders with stability and certainty of execution is as great as it has ever been, and we look forward to Samir’s contributions as we continue to execute on behalf of our global investor base and enhance the robust platform we have built over the past 20 years.”

Prior to joining Square Mile Capital in 2018, Tejpaul served as a vice president in Deutsche Bank’s commercial real estate group, where he originated, structured and distributed whole loans and subordinate debt within the firm’s CRE, CMBS and balance sheet lending platforms. Tejpaul serves as chair of the Alternative Lenders & High Yield Investors Forum for the CRE Finance Council. He holds a Bachelor of Business Administration in finance and international business from Georgetown University.

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JOE SCANTLEBURY CEO LIVING CITIES

Joe Scantlebury is the president and CEO of Living Cities, a collaborative of prominent foundations and financial institutions working together to close racial income and wealth gaps in U.S. cities. In this role, Scantlebury leads the design and execution of innovative solutions in homeownership and entrepreneurship as wealth building strategies.

Prior to joining Living Cities, he served as vice president for program strategy at the W.K. Kellogg Foundation, where he designed, led and implemented strategic programming efforts to improve the lives of vulnerable children and families in the Foundation’s priority places. As senior program officer at the Bill & Melinda Gates Foundation in Washington, D.C., he led state policy advocacy within a subset of priority Northeast and Mid-South states, as well as civil rights and equity work. He also served as a staff attorney at the Youth Law Center in Washington, where he advocated and litigated nationally to reduce disproportionate minority confinement and addressed conditions within the juvenile justice system.

He received a Bachelor of Science from Cornell University’s New York State School of Industrial & Labor Relations. He holds a Juris Doctor from New York University School of Law.

how long have you been in the industry?

I began my career as an attorney working on labor and youth issues in the ‘90s. I then moved into philanthropy. Since Joining Living Cities in 2021, my work in racial equity has expanded to include more advocacy and policy discussions in the real estate industry.

What brought you into thIS business?

A passion and commitment to supporting the most vulnerable among us. I began my career focused on criminal justice reform, as an attorney for the Youth Law Center in Washington, where I ad-

JOE SCANTLEBURY

vocated and litigated nationally to reduce disproportionate minority confinement and addressed conditions within the juvenile justice system.

Who influences you?

My staff, our board members and our partners across the country. We are working in dozens of cities to close the racial income and wealth gap so that all people in U.S. cities can live economically sustainable and abundant lives. We partner with city governments to focus on the root causes of racial and economic inequity and encourage investors to steer capital into historically underserved and overlooked populations.

How did Living Cities LAUNCH?

Living Cities was founded over 30 years ago to improve the lives of low-income people in cities through the construction of affordable housing and other development in urban areas. The founders of the organization — which was then called the National Community Development Initiative — were some of the biggest leaders of philanthropy and community development. Their thinking at the time was that revitalizing infrastructure and homes could help revitalize those communities.

But after about a decade of work, NCDI had not achieved the kind of large-scale reduction in poverty it wanted. Investments in urban physical spaces were important but insufficient. The organization decided to make a shift and expanded to work directly with local governments, companies and banks, many civic partners, and community-based organizations to better understand how to improve the lives of low-income people. This is also when we adopted the name “Living Cities” to reflect the changing nature of our work.

How did we get to the current racial wealth gap situation?

The national rugged individual ethos of “pulling themselves up by their bootstraps” willfully ignores the fact that systemic racism trapped countless talented and capable individuals in poverty. Too much was stacked against many individuals — underfunded and segregated public and post-secondary education, predatory civil and racially punitive criminal judicial systems and financial systems and practices that benefited the few and extracted from the many.

Living Cities and its members came to appreciate the role race and racism play in maintaining poverty. We observed, and data reflected, that regardless of talent or determination, the people least likely to advance in our economy or to build generational wealth

are people of color. We understand that the American society will not thrive without affording all its people the opportunity to thrive and have committed ourselves to advancing racial equity through economic opportunity and wealth building in partnership with cities across our nation.

How do we fix it?

We at Living Cities test innovative investment approaches to address the racial wealth gap, shift power within the capital systems and achieve better outcomes for all people in U.S. cities. Living Cities also brings together leaders from cities across the country who are committed to imagining what an antiracist society might look like and to playing an important role in building it through the transformation of government policies, practices and operations. And we work alongside our board to understand the effects of racial inequity, as it relates to our work and how we can best leverage our collective power to eliminate gaps.

What keeps you up at night?

The fact that for all of our nation’s history — up to and including now — people of color have not been able to fully participate fully in the economic engine of this country. For example, the practice of redlining prevented people of color from participating in the primary wealth-building engine for the white middle class: homeownership. By 1940, 80% of properties in Los Angeles and Chicago had racial covenants prohibiting sales to Black people.

This isn’t limited to history, either. Through predatory loans targeted at Black people and other people of color, the Great Recession and the foreclosure crisis hit those communities harder.

This says nothing of the impact of the government sanctioned enslavement of generations, which by some estimates extracted trillions of dollars in wealth from Black families.

To this day, it still takes more money for a person of color to start a business than a white person. They have less access to financial resources and investment opportunities to grow their businesses and receive investments from venture capital at much lower rates than white people. People of color are much less likely to own their homes and receive the necessary supports and capital to purchase their own homes.

And to be clear, these trends hold true even when comparing across education levels, income levels and other demographic factors.

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Design for Lifes

The design and construction markets are growing — even as home sizes decline slightly. Analyzing the AEC market is a mixed study, with costs rising (in part due to inflation), construction spending increasing but architectural billings declining. The industry remains volatile, as you can see by the numbers.

$24.36 billion

The projected size of the global architectural, engineering and construction market in 2032, after a projected compound annual growth rate of 10.3% from 2024 on. (Open Asset, “Understanding the AEC Industry + Top 17 AEC Trends for 2024”)

119,906

The number of licensed architects in 2022, down 1% from the previous year. (National Council of Architectural Registration Boards, “NCARB By the Numbers, 2023”)

43.6

The AIA Architecture Billings Index for March 2024, the 14th consecutive month of declining billings. (American Institute of Architects)

$2,091.5 billion

Construction spending during February 2024, 10.7% higher than in February 2023. (U.S. Census Bureau)

2,469

The mean square footage of new single-family homes, down slightly from the previous year. (National Association of Home Builders)

$93,310

The median pay for an architect in the U.S. (U.S. Bureau of Labor Statistics)