20 Episode results for "Cherry Hill"

The Scho Bro Show, Part 2: Be Steelers GM Kevin Colbert for a night

Behind the Steel Curtain

28:40 min | 3 weeks ago

The Scho Bro Show, Part 2: Be Steelers GM Kevin Colbert for a night

"And we're back pittsburgh steelers fans with part of the scarborough show we are running a live. Mock draft simulator. Just for fun trying to figure everything out and unfortunately we got to pick three and it was all over the place Which which was very not surprising. But if you have stumbled onto the audio only platform and you're listening to party right now. Like y are they at around four. Go back and check out part one i to see what we've where how we got here but so far the pixel we have in our mock draft simulator are round one nausea harris running back alabama round to asante samuel junior cornerback from florida state and round. Three camera mccrone linebacker michigan. Just it's what we ended up all right so now it's time to get down to these offensive line stuff that we were looking forward hoping that these players were still there. So let's see who still their own inter inter wilbur. Says take little here and he'll with the next one. These are easy ones hill. Is there still a number of those hill is still available. He is not the highest ranked interior offensive linemen. And if you're looking at offensive tackle. We still have. Hey what do you know. Top one walker little. So let's check in with the live chat. Do we want to take walker little here because the steelers pick where are the right now. We're at one twenty eight. They only pick twelve selections later where they have where they have their compensatory pick. So it's not like it's a long wait for the next one so people say little. Inhale inhale take little little little rich. I think we know who we're taking. Yeah let's take a little take little so here. We got people plays big. Yeah hope he plays a lot not a little so here. We go and walker little. According to us a pittsburgh steeler. So let's see what's going on. I'm watching trae. Smith just went so watching him go and hates steelers. Here go you know what are you now. We're back to the forty now after this one. Guess what we got a long time because you have no fifth round pick you gotta wait till six so right here. What do you know who do we have you. Scroll too far. What did it make sure. I was at the top. We have trail from georgia. Do it so here we go. They say walker is the live chat and agreement your hill cherry hill cherry hill hill. Hell and drag. We've got an agreement that i would draft him. So here's what we have our with five picks. You've got a running back. You've got to offensive lineman. You got a corner. You gotta linebacker so honest. The steelers go ahead rich. I kinda like kind of like that. If they'd have gone with something else in round three and then they still got what they got in five. I'd be happy with that as well. Being in four four and four. Yes well i met pick five round route four. Be sorry gotta say at four. Be so i mean this things rolling through now. Now when like chaba hubbard just went like one. Seventy three now is when we've really got a get down to it and look at what the steelers still need What's out there. We've got three picks left a six thousand to seven. so what. What do we do live chat. Let us know. What kind of positions are you looking for with these last three picks so we can start looking at it in some tight end. Okay we need to look at maybe a late wide receiver every go edge. Rusher things like that. i like. I didn't even click on edge. Rushers usually when i run amok usually taken one by now so those are some positions to look at. Well we are up to the steelers. Pick at number to sixteen. So let's see what we have. We have the top four under player. Rankings are all wide receivers and uc junior from hawaii. Oh my goodness butcher that one. I don't know if you can read it or not. I'm going to try 'em tour. How do you pronounce b h berry berry pay josh mature immature payday. Illinois marquette stevenson from houston deaths fitzpatrick wide receiver from louisville and the next one is wide receiver cornell pal from clemson and then we have an address. Garrett slinger land told he gave you the pronunciation. okay. I'm a toward baby. What you said. That's yeah then there's some edges than some other wide receivers. I'm gonna flip back from the player. Rankings to the predictive board just to see what they have going they have some safeties at the top k c right now. You're if you're looking at. Let's say safety wide receiver tight end edge. You got three picks so you're obviously not going to have one of them you've got i don't know man i've seen some people haven't divine diablo. The safety from virginia tech to the steelers. I've i've seen that places a jacoby stevens. The safety from lsu is available rashad. Weaver edge from pittsburgh. I don't know that that's a fit. Because i think i don't know if it shows that there there that he's more of a four three edge. Rusher chauncey golsen edge from iowa. He's another four three defensive end according to the draft network which doesn't necessarily always get these rights so Despots patrick from louisville wide receiver Don't think. I don't think it goes to running backs marlon williams from ucf wide receiver Shock a- tony. Tony tony since it's t. o. N. e. y. Edge rusher from penn. State he he's he's a he's a wide. He's a wide nine past specialists. They say and he would be like a rotational edge. Rusher cornell powell wide receiver from clemson. Did say no dave jerry. Siri bayan says at this point in time. We should take the worst quarterback available. We should go reverse psychology universe psychology There's another we gotta remember we gonna punter in the seventh round just for backbenches. No i'm someone trae mckinsey. Andrew embark what position. Hey we we. We got a super chat from me. I'm going to butcher this name. Johnny yes he probably did that just to make you say his name dollar ninety nine comment. Johnny put a comment in there. We'll bring up your next one. No matter what k- what would what what are we see some people say and say. Is it tony or toni. Edano from there they said oh mckinney is a tight end did look at tight ends. Let's let's just to see tight ends. He's gone he's gone. Yeah so. I think. I picked the last time i did. A simulator was. I picked a tight end at the very end of the draft. In the seventh round. Might have been from iowa. That may have been who he was. Not even sure So that that. I selected so the tight ends are. I don't know there's some of that grayson from smu. John bates from boise state. And those are the main two that are up there higher let me switch to their player rankings. The had none of them may have higher than rights than two forty-three and that's bates from boise state. I think you could almost have your noah gray from duke. I think is another one that i've seen. I could almost see that being a very last pick. You almost go tight end. What we thinking of looking at. Your prophesied a lot of stuff. Andrew wolmar brings up a defensive tackle. Honestly i with them having returning all seven from last year. I know all i was getting up there in age and stuff. I just don't know that that's the biggest need this year unless they unless they really love a guy that still there. And i don't and so i would be okay with the steelers doing that but i don't know what they're thinking with that right now if you know what i mean i don't you know it's exactly what i if you remember this show last year which you don't remember at all because you thought you didn't even remember that we did it. We have one. Alex smith is an option for a third round. Pick and i said when it comes to a small school player. I don't like to say that. I like them as much but if the steelers love them than i do i just don't know which one they're gonna fall in love with and So i wasn't ready to pull the trigger on him by tell you what shannon white shirt was So so so. What are we looking at. Someone says about maybe with tony. Tony or tony. Chaka edged up here. Yeah i'm seeing that. Get at depth chocolate tony. That could very well be Be a player. I mean there's some other guys here. But i don't know that they're the right fit so Never looked at chris. Rump the second from duke He's he's he's more of a four three guy from what i can see there so it looks like chaka. Tony might be fed. You think that's a pick right three to one. And he's a steeler so they were moving on. All the left is two picks a seventh round so the steelers. We've got three offensive three defensive. We've got running back interior offensive line and offensive tackle. We've got cornerback. Linebacker edge you. What a happy with that looking at it. So let me take my edge filter off here and just see year still got some my goodness still got some of the same wide receivers. From last time we still got from hawaii. We still got the guy. I can't say what was it Immature bay date sure. Stevenson pal from clemson man. You guys that were still there last time so the question is do you grab one of those. I mean. if they're still there the steelers pick again in one two three four five six seven eight in ten six nine tixx so chances are if if you wanna ride wide receiver you could wait to get one there Let's look at just for fun. Let's look at safety. Yup what's there for the top right now. Is john davis steelers. Pittsburgh saying i'm too enthusiastic. Look let me tell you. I hate mock drafts. i hate them. Dave said we were going to do this for the show tonight. And i almost wanted to just you know. Keep fishing fishing earlier. I was fishing. So i'm looking to see if the tight ends that we're gone yemen. Kitty was gone. Mckanie mckinney from georgia. He's been long gone. Yeah a lot of what. they're i think sean buyers one that took four there's one from. Nc state kerry alkaline. He seems to be more of a of a of a spread tight end. I don't know that that's what the steelers would be looking forward. They'd be looking for probably more of an inline tight end age back slot receiver. That will think that's the right fit for him. A sticker noah gray. The one that i looked at before where he was. He was a former quarterback. I think but he's not good for in line Honestly i could see the steelers go. And if they don't get a tight end. Because i don't think it's a great class. I could see tight and being a position that they use four as undrafted free agent. So we've got you picks here what's what's what's coming with the live chat Hold on the due west once. Fsu wide receiver to maureen Terry sorry okay Andrew leader one rock right tight. End from notre dame dimitrius says tight end Schoener or feral master. Plummets says luke feral issue andrew also asked his cornell son quinton lake available. I would have to look at the position. A luke feral is there. And so we're schoener if you're talking tight end they're also honestly they're going to be there on the next pick to i got i got Guira agreeing with west saying you know if terry's there i'd take him home okay which tear. Okay that's the wide receiver right. Yes from losing receivers To to do so he says sorry. I'm as i'm still trying to navigate. So i don't know this has been temer iranian terry or whatever. But there's a there's a lot of wide receivers that are that are up there. No actually available for the that were the top picks in round six and they're still there in around seven every single one of them so we have a super chat coming. Because i just saw it on my phone here. It is okay. We both don't have the same. all right. no no no no. No this is all you dave. Because it's takaharu. Yes i want to hear you set said. Why don't the steelers treat back. Multiple times picks the dolphins and jets have done I could see them doing that. I've i ran an article yesterday. That was the the steelers top five trade backs under kevin colbert of any round. And what's crazy only five since two thousand and tomorrow morning you will see the top. Five up's still curtain dot com. Your one stop shop for all things pittsburgh steelers. So so what are we do. I like this one familiar noisy here. Dave pronounce his name. Have his name all the time. That would be funny. Yeah yeah so. I think we should hold off. Let's do tight end with the last pick. Because i think both of them will be available. So what what. What do we do here like Someone asked about carnell lake sunday night. Let's show drafted. I don't have anyone with the name. A was the first name you remember. Winton wouldn't q. I'm gonna spell ronchi. I n or the kiwi an anti and try that one he knew i n t i in georgia. There's a bunch of different ways as paul quinn. Nope not that way. About t n. I've seen that. Let's not worry about it then. I can't i can't find it. So boom we'll take that away. We'll take this away all right. We gotta make up. We gotta make a call k. Make the call. Terry terry terry okay. Andrew says they snubbed lake from their board. He checked so terry's the wide receiver from florida. State although i like the guy from illinois just to make you have to keep saying his name still trying to find terry you know what let's do it. I'm gonna try and say the first name all right terry wide receiver for state. He's steeler. All right we got a few more picks left and we're heading towards the end we're heading towards the end because the steelers they're close. They're close getting mr irrelevant. They're not to fifty six to fifty four jerry super chat all right go ahead. Well circa access to eteri. Yeah and and and we did. So we've got from the tight ends. We've got schoner from iowa state we've got farrell from ohio state we have other But these guys that you know you could see the steelers may be looking at honestly. Do you see the the steelers not drafting in ohio. State player now. What is it live chat. Do you think we should go. Feral okay anderson. Do i think we should go tight end. Just do it max duffy. Lot of people. Saying max duffy. So where mac stuffy. Let me come to it Who is max i dunno. I dunno stuffy down know either and it's only a couple a couple of tight ends at all. A lot of people are kinda starting to agree farrell. Probably a good picture. So i i'm just wondering who duffy is. That's what i would like to now. So ex partner from kentucky as much as we can do that too. I was like how do i know because it's fun to do that. To jeff but the guy with this. So we're going to go with Luke feral tight end ohio state and guess what. Our draft is complete. Finalizing your draft. So here we go. What am i doing. I want my pick my pick. So here's what the what we have for our final mock draft here that we did on this show we have running back nausea harris alabama. Twenty four we have cornerback. Asante samuel junior from florida state at fifty five. We have linebacker camera. Mma grown of michigan at eighty seven. We have walker little offensive tackle from stanford at one twenty eight. We have trae hill into your offensive linemen from georgia at one forty. We have shocked a tune. Tony was tony edge from penn state at two sixteen. We have to mess with the first name. Terry wide receiver florida state at two forty five and luke pharrell tight end ohio state at two fifty four that officially comes to a conclusion of what our picks are and this has been a lot of fun. It really s so. This is what i'm going to ask for the record. I hate mock drafts. I know what you mean. Because i'm like i know it's never gonna work out. Here's my question. I was gonna ask it but that would be player names. This is going to be simple because because because we have to have our final question that we always do with the rundown all. I got a good one. I mean i have one. Okay you have you say yours. I'll say buying and then we'll decide which will be like okay. Mine is from our mock draft. How many of them do you actually think the steelers and picking which is basically what i was going to say of our mock draft. How many do you think david. I got right. Yeah when i but all of us not right donates her yet okay okay. West has say with me. Tam or in timorean so people were putting the live chat too soon. I'm not going to bring it up but boo. There's the question. How many do you dump. The steelers actually pick last year. The answer was zero. We didn't get any of the right. But that's what happens with baca can i'd say that Mathematically speaking that would be good. Guess again this year. But i'm gonna say one robert says three zero says for michael malley says three skipped us. Tyler says the field. Sorry rose. that'd be fine. I was going to go zero. You said you said what you said. So i went sherry says to andrew says he thinks sammy was the only pick but it could even be around one. I'm not even seen in the right spot. I'm just saying any of the players Garett says to. George george testing eleven of a stick forty six to the beatrice. Sure says to. Stacey says six yeah. I'd be shocked if we got that many right where we gotta keep screenshot. That used to see how we did. So we'll cover that after draft and jose. Juan gonzales says one. i liked that one. Okay don't says one grown. That's the one that i wasn't sure that if people were happy that we picked him because there was a lot of a lot of different options there in route. Three kathy says zero west says to. I think early got sherry bike was hit against to george says one. He's a really. It's why i liked his eleven but yeah so Says three okay. He was he was. Pittsburgh won Dan berger says to Sherry says specifically harris and hill. I can see that to to do. Some of the people were putting some Patricia says three. Oh come on how could you. How could you skip marquis de. Oh he was there all the above de said all the above. Email this straight to colbert. We love you mark. we do with you. I'm sorry. I was looking for one that we're just numbers is Aj said three. Maybe four john says to jerry jerry band. First of all much responded to him on twitter. You say. I would really like to have a nice new brand new song that i could have by show like jeff. Hartmann god for his. Let's ride podcast jerry chair. And if you're not listening to the podcast you need to at least check out the beginning of beginning of him to hear jerry band music okay. Jeff has it and my static. Has it as well so well. Dave i want you to know. I might be working on a on a song for our show here We would just need some people to send it but We'll get we'll get jeff. I mean we could. Well we're delayed so that would be tough dirt. Derwin says for poor just says that she's late. She was at a grand three year old party. Happy birthday happy birthday. Yeah we need next week. I'm gonna be a year older. Yuck okay. I just realized that it'll be back to only four years younger than me instead. I'll i'll be paula. Malo says he's got colbert's email ready guys. This was a lot of fun. I like the interaction. I hope for you on the audio side that it wasn't too distracting as we were reading stuff. I was trying to do my best to read everything to make sure everyone felt included and whatnot Rich phantasm job of keeping it on the live chat for while i was scrolled ryan stop. I'm going back and look at it. I'm a little bit more satisfied with this draft. That i thought and i'm not a big all. Its draft. najah harris the first round guy. Honestly i'd be shocked if he gets miami. I really would But based on how it fill out. I thought it was pretty interesting. Pr pretty interesting. Well what do you have to say about rich. I hate mock drafts. i know what you mean. I know what you mean. I you think oh this would be pretty cool and then like last year we get zero. So that's not. I ended up liking our draft last year. So i went about that either. Yeah so we did ended up going with dobbins because that's what everyone wanted to take him around two and then that didn't happen so lots of fun. We'll keep bringing you all the stuff that we can leading up to the draft. We've got two more shows of the scarborough show before the nfl draft. It's really close. It's it's a huge event. It's i mean these are players that you're gonna get to cheer for the black and gold that when the steelers take them. It really is when you think about it the whole thing. It really is exciting. And then you have these guys that you think. Oh yeah they'd be a great pittsburgh steelers a detroit lion but it is how it s but lots of fun. Thanks again so much for everyone that helped out with this and We will be back again next. Tuesday can't wait to go fishing the next time.

pittsburgh steelers walker tony hill cherry hill cherry hill h chaba hubbard berry berry asante samuel cornell pal Garrett slinger terry jacoby stevens chauncey golsen marlon williams Tony tony cornell powell dave jerry Siri bayan trae mckinsey georgia Edano
Who Should Pay The Bills?

LET'S LOOSEN UP

09:34 min | 9 months ago

Who Should Pay The Bills?

"The rule of law about the chain. Yeah. You have a podcast where we've been t you subject of controversy. Shed light on our social sexual and into best knowing. About your Oh perspective, the subject is welcoming cases for the all can be sane enough with A. Let's listen. To leave enjoy laugh to the flesh. Introduce. US introduces. Hi, my name is and I was actually introduced to this podcast. This was in it's all on the court. So I've done my job today to. Take it again. Now. He didn't get addicted. Sure. Yeah. You did use a judy. Knew I didn't do don't call me but anyways, I've done it already. I. Don't call me. Don't call me. This. Topic today's show discussing who should pay bills other who should. Remind you might. Say Bills are saying no in every situation bills in just hang out with a girl. You hung out twenty I'm Marie to. Yeah whatever. Okay me Lucia pay the bills. You actually little should videos. I'm a go actually go the bills because yes. Yeah. So I've met some gals that who get to that. Talk. About. An experience on audible. Views it's depends on issue fifty you. Should be fifty, two I feel Let's say for example, he go to the beach. City. It does the enters like the gave you can do the drinks it does a food you could do. You could just play around the taste you don't have to stick on with for. A few up bill to get cheaper an abuse. You said he's you. Should go with a cheaper price seeing that just saying. He's contributing using to us not rally is. Just one single opinion. That sometimes, years wanted to explore your mind to something different tangent those have money. Savings. Own. Ego. Set view suggests and all year. So and you know he's working on a project and you know that he's not not so how you know that doing our. Blood money or you sit down the is you end up police force for Scion PD. Eagles sometimes he's eager to push dance. You just need to ask the governor government. I think this is the first I'm GONNA. Open one. Time do we have crop opinion? This is the first time. Ideally, yes. Laid this out day I you should not leave all the bill payment for your guy I think he's supposed to be a fifty fifty team. If he has this, you have that you guys should contribute because was he lived a for one person. The frustration is trying to meet up with deadlines is trying to bring this to the table is trying to the so much that weight is Tad's show you different sides of him. He doesn't even know when issues that difference either because it's to more the workload is much on him. To more ripples galaxy for retired car after his girlfriend to. accept. All your. Kids if he's one of the value based. I'm talking about our own our own family issues like. Dating dating secret. Because you're looking forward to getting married. My. Husband and wife Yeah. So I'm saying was you get into that state has to be it has to be healthy. You have to help him as lady health with the payment of anything the bills. Come help. Okay Be. Coming but yes, no just don't let not just with the helping them to call calm on everything. You, have to help him with abuse has to do a lot of things you have to, for example. Okay now, parents do it. I'm bringing my presence it is because. My Mom's thousand foods in fact most times it's not like my dad doesn't have to give to her well. My Dad does other bills like the payment of the House the lights everything's understanding the bottle our have this I have discovered through next month. My that may have everything over it's not like my dad says, okay because my mom is having the food aspect of the part cover. country. With. His. Buys everything bags. The house gets you understand so you need to assist and also also there's even times that some of these ladies and as much as you gave. Him if I didn't need to buy Guilio, I'm there by mark by Hey I'm back come up with our which contributed views each other to be. Any guy. More. Calls out the relationship. Gills always be free guide to feel the beautiful time every bill biparti. Any relationship you know boyfriend. See. When he comes relationship and you how you going to deter boyfriend because yes, you might want to spoil yourself like he wants to support you think. Thanks to just pretend like you want to pay the bills and give you that as a sculptor pretend cow go definitely tell you although we have is covered anyhow that respect to always be day. Tell you. Have more. Some guys that can be very. Yard morning. Thank you. Thank you and I knew that I work in the United States. I I don't go with how many here's. Only data anything I always like to have cash on me. Because I'm scared guy copied abuse be just don't as a spirit leads one of my good friends or rely see whatever she's a close friend and Henschel choice seeing some. So we see make sure you get twenty or they call you all. The morning about. One, you means. T's street special name means that he kisses go by maybe the guys car does no work maybe sponsor on scene and unforeseen circumstances Dan you have money I can few use to cover. These. BOTORP. Co Plan Kovacs one. Yes. Muslims I don't take this money out because of one you need. To get I now I don't have that negative vibe I take this money how out because as a spirit leads I might decide to disguise soon is like is no I want I wanted to pay for the. For the Food I don't that times like ourselves number the would be like Oh this is actually I want to show off. I. Want to do anything how you want to have a conversation with the personnel he'd be like, wow, this is really what having this conversation really what have your time You're listening all. She has a plot jazzy Cherry Hill physicians. Called the neutral. On those. Anywhere social media say that. Everything I say interesting I'm noticing so far down fourteen years. Lucci gives the rights we had no support in interested. You Know Pays Your Fees Hungry confidential child. Don't listen to appropriate does Veasley today why I'm just trying to say is the bill should not be left form presidency. Would I in the married in the family or when the relationship? My honest opinion, the bill should not let left someone one percent to pay. The bill, rotate the bills as much as he can. Always be main, they will once even over, do you want to pay more of the year you allow them, keep them, let them that. Want to show for the team is as a lead you to she always wanted to contribute. Let see that spread of contribution in you. That's the VOCAB warn to help out from personal experience is a good feeling. Song those open to pay for stuff you prefer combines the about. Last. Night Bill US to ten. Okay. You an good feelings are mixed that he'll like Dixie love. Is Different Standard as I said most. Nice. Collect colleagues. Not, deter to do. Business part time Iran's D- my list her I did miss on I'd is three you. Post, your list week experienced before you need to experience you too. That's My take on it she you gaze to kiss. To See as usual chicken asked Mugs, studios this Rama never even check you don't. W me asking us. Ground you. Hear that but his comeback Instagram I. think everybody is Easter Graham. Thank you. Guys also so she ended up platforms on Instagram tweet facing at Max to-do as an E. S. T.. v. e. also for me ago, not at Easter instagram I also operate at. On instagram. Behind this wonderful Alpert. TV. On them.

US Instagram Eagles Scion Lucia Easter Graham Tad Alpert Mugs Iran Cherry Hill Henschel Lucci Dan Veasley Dixie fourteen years
CRE News Hour 7/19/2019

Commercial Real Estate News Hour

57:52 min | 1 year ago

CRE News Hour 7/19/2019

"From the business desk at st broadcast news this is the c. arena news hour. I'm steve lubeck. It's friday july nineteenth twenty nineteen on this edition of the sierra news hour. We'll look at atlantic attic station. A live work play development in metro atlanta. We speak with the new jersey economic development authority about best practices for opportunities zone fund governance. We'll get some comparison of office costs in major metro areas from commercial cafe dot com and we'll have a chat with tom. Laundries chief executive officer of metro commercial about the hot retail trend online companies crossing over into bricks and mortar with micro branding those features and in the weeks sierra news right after these messages <music> turn earn your podcasting passion into profits the book the business of podcasting describes the business side of podcasting including how to become a professional national podcast. You'll learn about position your clients expertise who podcasting to plus the best business models how to find clients and much more visit the the business of podcasting dot com today. You can't wait for the media to cover your company buzney. You have to be the media. Take advantage of the power of audio and video. It's the best way to showcase your expertise to prospective customers. Let the lupatkin you bet can media companies handled the technical side. We're award winning audio and video producers. We can help you produce podcasts and video programs remotely or in our fully fully equipped studio in cherry hill visit being the media dot com for more information. Let's start off with some news and headlines from around the c._r._a. World m._s._c._i. Issued its annual real estate market size report and and the top level finding show the size of the global professionally managed real estate market rose from eight point five trillion twenty seventeen to eight point nine trillion for twenty eighteen the u._s. real estate market showed the most significant absolute change with a market size increase of honored and seventy two billion dollars dollars in the middle of downtown newark's vibrant business and development renaissance's third space a new family owned co working space. That's officially opened for for business. It's located on the ground floor of the renovated. Textile lofts building a short walk from newark penn station city hall and newark central business district third space has three conference rooms and event space <hes> state of the art podcast room. We liked that idea and twenty offices of one hundred twenty square feet each with the key 'less security entry and each office comes with a dedicated parking space and the co working space hopes to attract users by offering some unique programming jennifer. Danilo is the president of third space. We have had few events already. One that stands out was put on by makers hood and they ah <hes> presented a workshop on how to find funding for your business. We also have a few others lined up. We have a digital marketing and social media workshop coming coming up as well as a <hes> speaker alfred edmund junior nationally renowned business strategist and we really are hoping our programming will be a resource to small businesses and new and aspiring entrepreneurs furthermore will eventually be offering wellness programming like chair massage meditation tation and yoga and let's not forget about the importance of good local coffee. We have a good <hes> third wave coffee. <music> roaster who's right up the block coming in named great notch and we're really happy to be <hes> another way to be partnering with a local business. Third space is one of only a few family owned co working spaces in the country. The danilo family chose new york because of what it said was it's energy. It's diverse community and the opportunity entity to serve a community of businesses and organizations working to revitalize what is affectionately known as brick city. You can find out more by visiting third space co work. That's with a three r. D third space co work dot com c._p._r. Is out with its mid year review of manhattan office space leasing leasing activity during the first half of the year was robust at almost fifteen million square feet average asking rents jumped to over eighty dollars per square foot for the first time in history while the overall availability rate at the close of the first half of the year was eleven percent down eighty basis points from the same time last year availabilities remained below twelve percent for roughly two years cushman and wakefield advised on a sixty million dollar construction loan for phase one of a thirteen acre multifamily development in bogota new jersey p._c. Development and sabre real estate advisors are building four hundred twenty one units. It's a luxury rental property with retail on the riverfront site at two thirty eight west fort lee road jail closed a thirty million dollar sale of boulevard boulevard mall and nine hundred sixty two thousand square foot super regional mall inside a qualified opportunity zone in the buffalo area community of amherst new york. An adjacent wegmans grocery store was included in the transaction for another six million dollars. Jail l. marketed the property in conjunction with ten x on behalf of the seller douglas development development company was the purchaser endurance real estate group sold to properties in moorestown burlington county new jersey five fifty glen avenue and six hundred glenn court court there to building one hundred eight thousand square foot industrial portfolio property went for thirteen and a half million dollars and one of the trans popping up in retail is the pop up store micro branding is very hot right now it involves loves native online companies starting to break into the traditional brick and mortar round dipping their toes in the water of selling to consumers and a traditional store store environment with to talk about micro branding is tom laundries chief executive officer of metro commercial metro provides regional national national and international tenant representation to one hundred and forty individual and expanding retailers from offices in the philadelphia south jersey and florida regions regions. Tom laundries represented some of the world's largest retailers throughout the u._s. Canada and puerto rico and he's worked strategically with some of the nation's largest private in public owners of shopping centers. Tom you and your metro commercial brokers are out trying to drum up business from these micro brand stores from. I'm online retailers. Tell us what's going on with that. We are we are <hes>. We've done a couple of representing landlords off pitching business weekly trying to get this business. <hes> there's very few that have scaled the brick and mortar world and their genesis was was online. We're just at the threshold of that happening. It's uber for years ago. Did you use it over four years ago now. Do you use it use lift. Okay so you use the concept right four years ago to lift it was red hot for years ago but it but it wasn't epidemic proportions meaning. It wasn't my dad uses uber. He's in his eighties four years years ago. He didn't know what uber was now. Uses it all the time. I used uber four years ago so when i say all birger i see indochino or i say <hes> canot boasts you might know these names <hes> there the more prominent ones but when i say state liberty <hes> when i say mod clawsf off <hes> because they only have one store and they're testing it right so <hes> soho is like an incubator for these micro bands they we all get together and people travel there a lot of tourism lotte population. They try it on <hes>. You know it's so no i. I don't think so so no says the speaker put in your house. You thought it was almost completely sure hundred percent online well. They have one store. They wants to right so you know we're in pitching the business. 'cause it's red hot genre within our larger industry. It's just not scaled yet. It's a very different environment. It's not like online where you're just like like it changes but you can change with it because there's no physical boundaries i bought my first were parker glasses ten years ago i bought it online and i was one of the disciples and then they started opening up stores and their sales went through the roof because now they got all these different windows and i love the stores because it's really hard to get your your your glass adjusted online. It's really easy if you walk into a store so this whole thing of micro brands is no different than target improving their online presence as a reaction to get balancing their platform and bonobos in war parker getting their bricks and mortar so we're the fide to balance their platform. I i think most people would say oh that makes sense to me. That's why i don't see <hes> all these micro brands popping up in every grocery sh <hes> senate anchored center in the country because they don't. They're figuring it out like they're. They're trying to see what the market is for bricks. In line outlet for their goods is the traditional national approach was you started with bricks and mortar store and then you created a website. These people started online and they don't have the depth of experience perhaps in the bricks and mortar world yeah. There's actually a project. I think outside of l._a. The name escapes me that the guy the developer are built of bricks and mortar shopping center to house a hundred percent of micronutrients. He basically said to these migrants. I'm building your retail tale environment for you to come and explore this world. How about that and it's a it's a big project and it's a very successful project. I'm actually going to go out to l._a. In august and look at it but you know he's saying to all these need <hes> micro brands come and test and you know you're gonna pay your fair share and it's going to be a nice environment arment but let's huddle together and figure zamal or is it a power center or a strip shopping center. What's what's the layout. I think it's more or like a lifestyle center that that term is not if it's familiar to you. You'll know what i'm talking about. The term is not industry anymore <hes> that it's been replaced replaced by specialty center but yeah it's a it's a nicer. <hes> you know outdoor garden type park type in feel deal. It's not a big parking lot and it's not about power centers. Not local grocery store got it so <hes> so maybe a little bit of perspective on mixed excuse in the cities and what's driving the millennials and baby boomers. What's going. I mean we we keep hearing about it. They're all going into the city and in the urban environments but what else yeah so the energy behind it the wind behind that sale is live work play platform that model that attraction <hes>. You know we're done right now. <hes> the baby boomers don't which <hes> throw birthday parties and have kicked ball games for their kids in the backyard's anymore and nobody shows up and swims backyard pools anymore <hes> so they're kinda done with that. They're done with the suburban house. They raise their kids. The millennials are pushing that whole thing off <hes>. They're pushing the whole relationship off. They're pushing a lot. The things off <hes> i think it will trend back but right now what they're exchanging what the baby boomers did early on get a job commit to the job. <hes> put some money in the bank. Live the american dream move to the suburbs. Get your own house razor two point three kids. That's kinda done and these baby boomers are now saying. I don't want mom's house. I don't want moms taxes and i don't have any use for the backyard 'cause they don't have kids so i wanna live move and i wanna work and i wanna play in a very convenient tight knit geography the first <hes> areas that are already built for that or urban areas in live there you can work there and and you can play there the infrastructure there <hes>. There's already existing residential. There's entertainment and there's existing jobs what you're seeing in some suburbs. Now is a micro development that has those aspects. They're taking b. and c. Malls they're taking big tracks ground located off of really convenient highways and they're building these what they call mixed use developments. It's the urban environment is already a planned mixed use environment in a large geography if you can look at it that way right so if it's lacking one they'll just add one what they're doing in the suburbs is taking all free and building new oh and then each market each break <hes> larger metropolitan markets in the country. You'll see different examples of this. I think of atlanta one of the most successful successful one is called the avalon. It's purely one hundred percent suburban almost almost verging being the rural area and and it has a complex <hes> that includes hotel's residential of all different levels single-family the high end single family mid level apartments condos rentals <hes> has entertainment it has venues for speeches his concerts <hes> <hes> markets <hes> large events shows <hes> then it has venues for or movie theaters and live theaters than it has <hes> retail of all scale convenience pharmaceutical so large shopping discount shopping high end shopping all integrated into the one avalon project. That's one of the shinier leading more popular ones in the country now but there's many in this greater philadelphia market that are either completed on a smaller scale or under construction an equal scale and new york has them boston has them chicago has the texas has them florida has them and they're really the goal of a missed two from a developer point of view to spread the risk. I don't want to put all my eggs in one basket. I don't want to just build an office complex. I don't want to just build a residential complex. I don't wanna bill just a retail complex and we integrate small parts of all of them into one that would be suburban and urban environments. They're gonna play off of what's already there and give if those markets one or two of the aspects that they don't have already. I think of lincoln square philadelphia it has to who with a component to tip broad in washington has has a residential component with the retail down below they target their petsmart sprouts then they have about four hundred higher end well appointed apartments above and then the entertainment is right at their back door because because it's located on broad street the avenue of the arts spreading the risk it is a way of spreading the risk and it's away in the urban environments to complement implement. What's already there. You're seeing cities like minneapolis. That have a good entertainment base. Their professional sports orch teams play right downtown in the center city district. An older employers are in the center city district target. Being probably one of the biggest supporters are headquarters headquarters right at nicolette mall right downtown and now what's happening in that city is people are deciding to live there. There's not a lot of residential so the residential component of the live work play is on fire. There philadelphia had all three so depending on where you're talking about their adding these components around what's already there make sense to add more residential and more retail on the avenue of the arts because the entertainments there so when you come out to the suburbs <hes> there's projects like the one we're involved in an upper dublin alan opening fall two thousand twenty. It's anchored by sprouts which is a high end specialty grocery store. It's going going to have four hundred high end apartments. It's going to have <hes> higher end. Retail mid retail a lot of restaurants outdoor seating being for restaurants. It's going to have a three acre park. <hes> for it's going to have a running track. A walking track <hes> it's going to include <hes> <hes> <hes> some luxury <hes> residential as well as mid-level residential all packed into one area of a welsh address road road upper dublin high end area but purely suburban and now they're going to squeeze everything into one one project and not just i exploited one of those three <hes> on new in that new development which traditionally they would do the traditional developer they had had say twenty seven acres or eighty nine acres and it was at a key intersection they would say what does this work for and they would choose between the disciplines residential industrial office retail <hes> now what they're thinking is why not do all of <hes> and get the best of the best so why not have the good retail and scale it for that area and mr delegation and not overbuilt why not assess what the residential needs are in the area and built for that. Let's assess what what's not there. You're in the office market and build for that and quite frankly it's. It's smart. Development really smart. Development probably should've happened a long time ago but because of this trend this wind behind this new sale right the baby boomers are moving from their tool to suburban home of the backyard backyard pool. They don't want that anymore and the millennials are yet ready to accept that as their next step and these mixed use use live work play is a is attractive to both sectors which are the two biggest sectors of the demographics slice in this country right now the millennials and the baby boomers those are the two biggest buckets and they're all looking for the live work play in various the transformations in iterations yes so <hes> i'm a baby boomer. I'm fifty four. I was born in nineteen sixty four warm. I think i'm in the last last year the baby boomer maybe the first year the next one but <hes> yeah i don't want a tiny limited appointed apartment <hes> with a beer garden and <hes> a gym. I want other amenities so there are the projects that are built more for me but they're still mixed use projects. I'm still working. <hes> i still work in an office. I don't work in a shared cooperative cooperative space. <hes> i have my own office and i want my parking spot for my <hes> large suburban type car <hes>. I don't want to rent a car and i want to work out with a personal trainer in a gym. I don't want to do classes and i don't mind spending money on a white tablecloth with restaurant. I want someone to receive my packages and help me plan my trip so i wanna concierge in the building where the complex and i want higher higher end more luxury type amenities so i will look for that found millennial. I may wanna share an apartment with somebody. I may want ah flexible apartment. I may want apartment. That's furnished but maybe a studio i wanna. I want rental cars. I don't own a car as a part of this this complex part of my building <hes> i wanna i wanna loaner bike. I don't oh my bike <hes> and <hes>. I want a limited they just sort of <hes> low price grocer <hes> i don't cook at home so i don't really need a lot of a lot of prepare <hes> <hes> perishables or refrigeration and that type of thing i eat out a lot and nice surely do want a beer garden. I wanna hang out for a long time with with my friends and experienced something really neat when i am ready to spend money. I'm not going to buy a lot of things things but i am going to buy experience and so my complex may have rock climbing walls outdoor parks <hes> you know lounging areas beer gardens outdoor eating that type of thing hopefully that some of that makes sense <hes> but <hes> they're all still geared towards a certain demographic. You know what's not happening is the flight to urban or the flight to mixed-use live work replay environments. They're not they're not going together. This is a this is not a reckoning of the millennial to the baby boomer. They're they're. You're doing it for similar reasons. They want different <hes> they want different offering living necessarily in the same exact development yeah. That's a good question <hes> a lot of developers in the early age in the early stages of this where one or the other and now they're trying to integrate 'cause they wanna scale this and they wanna make it the bigger they wanna make one-size-fits-all and their difficulties in that they're real difficulty said that <hes> because you know quite frankly. That's not how the suburbs the suburbs worked out. What do they <hes> you know. There's <hes> there's certain subdivisions that are built for a certain type of housing stock and income <hes> and expectation levels and there's certain ones that are built differently and so there there is that separation so when you start to blend <hes> those needs from a millennial to a baby boomer millennial may want a small intimate <hes> <hes> rock concert late at night on the rooftop deck and i will tell you almost with a lot of confidence that the baby bloomberg would not want that <hes> so there's a difficult magic trick to pull off when you bring them all together in one project there are projects that have done that but they're they're larger scale and so they have that segregation if you will but done in a very smart development way so it looks like one project but that's a tougher one but that's that's kind of what's evolving so tom laundry chief executive officer of metro commercial. He joined just from his office in mount laurel new jersey. Tom thanks for being on the sierra. News hour was very nice talking to you. Thank you for your time. You're listening to the cr news hour. I'm steve labatt and at a recent meeting of the national governor's association the governance project and new jersey's economic development authority authority discussed some national best practices for leveraging opportunities zones. The goal of the opportunities owns tax incentive program is to attract transformative community investment and cultivates sustainable economic growth. The governance project released its new governors toolkit for opportunities owns owns at the event it outlines step-by-step strategies and provides states with best practices like the value that anchor institutions like universities and hospitals skin play as key mediators for community focused opportunity zones. We asked thai cooper the managing director of policy and advocacy at nj edna to explain the importance of the toolkit tie. Thanks for joining us on this theory news hour. Thank you so much for having me so the governor's toolkit for opportunity zones <hes> the nj e._d._a. Had some input into developing this. Tell us a little bit about why someone needs a tool oh kit and what it will do for them if they're thinking about developing in an opportunity zone governance has been a fantastic partner with new jersey economic development authority really with the entire opportunities process itself when restarting breaking fan. It was through initial conversations discussing. What is this program actually going to be like. How is it going to work and they were really good in guiding states and municipalities forward. I think for them with him recognized early on as states that this is an incredibly new project. Nothing like opportunity zones is come before and we don't ignore him will come like afterwards and so as we're starting this process we have to be very intentional and so the governor's has project for us was incredibly resourceful in how we were streamlining are processed opportunity zones but also giving best practices on how to do outreach with municipalities how prepared here. They had to be on every single level. One of the things that we're finding even now is that these are still learning about what opportunities zones are. Why is this important. Morton came out of the job cuts and tax act between seven team <hes> that was sponsored by senator booker and senator tim scott opportunities on origin but it was kind of hidden in the legislation and so now a year out people are starting to find more out about it and so now is a really intense time when the state in organizations specifically the governance diligence doing their outreach touching cities wants to be out of time and and really guiding them through this process so what what are some of the things that you advocate in your toolkit for people to do as best practices i mean is it. It's been one of those just things that as a state agency because we do have an inter agency task force we've been pushing for a lot of work with our agencies to help these municipalities build without will be calling investment perspectives and so that for them is really building up all the assets that they have with immigrants of how targeting them strategically going in with a set set of principles that they wanted us from this process with our communities is you're going to focus on affordable housing target those areas immediately in your municipality look at what what areas are immunity development gonna focus on apprenticeships or building out job growth and employment opportunities nothing hyperfocused. I think the best part the toolkit is that a target their efforts into one area very streamlined systematic what they're doing and so for for us again. It's it's having municipalities being noble resources exist with enron and also no resources exist with the state <hes> kind of as a complimentary thanks react onto this toolkit over jerseys create a one stop shop inner one-stop shopping all the resources that you'll need as immune palladini as a business as a community resident or as a real estate villa developer charity walk your entire process that was in conjunction with the government's giving us some best practices and they've seen around the nation so for us. It's always a pleasure to have some good ideas. Come from department there and also i think the best thing press in creating <hes> also coming out with a one stop shop so for his new jersey are are but site is in jail for trinity's zones nj dot gov and again. That's the resource for you can find every resource that you possibly need for zones including. I think this is one of our star features as state is our asset map. This is about that has about sixty seven different layers on identifying a restate resource that exist this within the state of new jersey layers all on how each other but also breaks things down within that sense translates fences track block lots art details. One of the things is highlighted in the <hes> materials about this tool. Kit is the the value of anchor institutions like universities and hospitals in opportunity zones. How does that work and why are they so important gangrene <unk> thanks for helping to move this process forward <hes> from our hospitals to our centers of higher education drivers in the economy already they've been angered and within those communities already so let's partnerships have been established already so it's a way for them to activate these spaces as it exists and so for us again again if you go onto our asset map for each one of the opportunities that we have in the state within these census tracts on our map. It'll identify what anchor institutions are established within a specific uncover -tunities zone port. There is a hospital whether it's an of higher learning but they're all located within these spaces they can really do it. I think has been phenomenal at this is activate all the spaces all the anchorman institutions in the city of pushing towards his process so ensuring that they have an integrated degraded system with their hospitals with their with their job providers so they're all working in line to get the best type of investment. They need for their cities. This is something that is going to be truly beneficial and again for us. Municipalities are the driver of what happens in our state and i think the governor's project understands that they understood from the very beginning of why it's important for us to have their finances together wides important to get your investments together why it's important to really strategic and targeted and i think with a toolkit hit did which was so helpless it outlines very simply it puts it in very simple language and strategic tips on how cities can move even having a single point of accountability those small things make such a huge difference and you have to realize that over this nation in any seven hundred <unk> that have been designated so the competition is not just within your own state. It really is regional. It's really national and i think governors project has done a good job by identifying what the strategic advantages are helping cities identify what their should you could damages are in really being able to promote them so even past the ten year period for opportunity zones municipalities are on their way they have a more streamlined system when it comes to zoning zoning and permitting and really having a single point of accountability for development so i think that's a really critical piece. It's not just as play opportunity zones but also the long term success sustainability. We appreciate your taking the time to explain it all to us. Ty cooper's the managing director of policy and advocacy the at the new jersey economic development authority. She joined us from her office in trenton commercial cafe. Dot com has put together a new study looking at the fifteen most popular central business district district in the country. They've created to calculators. You can use to compare the prices of similar sized assets across these fifteen c._b._d.'s you you can find out which c._b._d.'s the right choice for you based on the amount you want to invest so for example in philadelphia seventeen point three million dollar investment can get that you one hundred thousand square feet of class a office space in comparison the same amount of space would cost seventy nine million dollars in midtown manhattan sixty sixty point six million in washington d._c. Twenty four point four million in charlotte north carolina and fourteen point seven million in atlanta. We'll put a link linked to the study and the calculators in the show notes for this podcast at st broadcast news dot com but we wanted to get some perspective on the results from patrick mcgregor egger who prepared the analysis of the c._b._d.'s four commercial cafe dot com patrick. You have done some research into the price per square foot for office assets in the various central business district around the country. What are some of the findings of the survey and if you could take us back to so what made you decide to take a look at this comparison between all these cities and the different classes of buildings yes absolutely <hes> so i'll start with breath why we decided to do this study so a lot of the comparisons you see especially within real estate are on more general residential offers received comparison between own self prices in various regions also see rents and those are the biggest what we don't really see a lot of our the prices of large assets. <hes> office assets for instance is widely chosen this one <hes> one of the things we ran into was was identifying a region the look at where you know that every m._s._a. would have so you also you always have a primary urban area suburban areas of joseph c._b._s. News which are more easily <hes> have bonkers that are easy to find which is why would show c._b._s. C._b._s. <hes> as well hop your assets that many people would identify from a skyline photo <hes> so that's where the idea came from one of the areas that we had an issue with was making sure we had a large data set. That's a work with which is why we did nine nine quarters of beta and some of the interesting things that we identified were <hes> the distribution of <hes> the the space between the differences between as and bs and for instance in seattle and you had a assets to see being going four two hundred five dollars for more than these <hes> part of that was due to asset size but the distribution when they happen to really make a difference in that particular market whereas in <hes> san francisco for instance where the price of business as you had b.'s transferred being transferred at a later date so time difference which is something we tried to account for but what it was going to be different distribution so so talk a little bit about the findings of the survey <hes> wide disparities between different <hes> central business districts were was there sort of a <hes> a running theme for some of the more popular locations well. Obviously you have san francisco manhattan seattle. Those are going to have some of a higher <hes> d._c. Billy are going to have some of the higher c._d. Prices just because of their prominence of popularity the sides well well. They have some of the larger c._b. Areas was cedeno such in san. Jose isn't going to have a very large geographic speaking c._b._d. Area so those were the only real things that we could end on a high as a track right <hes> other than that. It was really based based on popularity so you have baltimore down towards the bottom of prices. If older buildings i it's just not <unk> as popular where up and coming markets like nashville and austin which aren't as large but they're still up and coming drying the the business away from silicon valley from seattle portland so that's what i found quite interesting in this study for accompany. That's thinking about <hes> looking for office space in one of these markets. What's the best approach for them to take looking at your research and factoring during it into their planning their you know mitt creating a universe places they wanna consider oil and i think that's a that's a multifaceted did point <hes> on the one hand you have is this company going to come in and are they going to be leasing space versus purchasing space now all the data set were working with was everything over five fifty thousand square feet so right there is is a parameter on which news that is going to disqualify. Some companies are going like that's a lot of space for a company to come in and purchase an asset <hes> from a leasing standpoint standpoint. I mean you're going to be looking at everything from the cost the amenities that are in the area the cost of living premium poisoning on the area <hes> utilities already and that sort of thing but from an investment standpoint or if you're going to be purchasing the building you wanna look at how is that investment going to perform just like any other investment so <hes> this study didn't go into carrots for instance so i can tell you what the cap rates in manhattan arbres austin but with some degree of of <hes> educated estimation mission if you will i would assume they're decamp rates in a city like nashville or austin are going to be slightly higher than they are going to be be really build out popular large c._b._d.'s that was studied here. Were there any surprises in your research <hes> cities that were either more expensive or less expensive than expected them to be <hes>. I actually surprised i was surprised to see charlotte. <hes> n baltimore both be the in this in this <hes> study charlotte has been up and coming as well as the whole region is <hes> kind of gaining more march action obviously with a triangle you'll still have asheville north carolina but charlotte and during the top c._d.'s was interesting as well as baltimore's mars. This data before is not a very popular. I mean you don't hear about it. A lot. <hes> implement investments them point. I mean they didn't how many transactions in the last nine quarters but it was is still an interesting <hes> entry into our into our study <hes> and then san francisco just because of the distribution on one properties were sold entered the end the list in a different way because you had the asset classes as properties selling for a higher price aid days. What trends do you expect in property values. I mean obviously the overall overall long term trend is always up but <hes> what are you seeing over the next say twelve to eighteen months in terms of <hes> the economy in in how that's going to affect the pricing that people get difficult to say to be honest with you because real estate state <unk>. I mean you have boom bust forest but it's also <unk> but it's also as volatile bruce most other assets so <hes> i would say that it it's trending towards a a slight increase over the next twelve months but i don't think you're gonna see any huge. Debts cassini huge <hes> johnson's well patrick mcgregor is the author of the office building price study in top commercial business district that appears on commercial cafe dot com. You can find the link for patrick study in the show notes at st broadcast news dot com patrick. Thank you for taking the time. We'll check back in with you. Again sounds good. Thank you very much. We'll be back in a minute sean. This is rabbi richard address join us for our podcast series from jewish sacred aging entitled seekers of meeting will explore some of the issues and events that impact ourselves our families and our jewish world at large in light of the current revolution eighty the secrets of meaning podcast airs every every friday morning at eight a._m. At jewish sacred aging dot com <music> today. You can't wait for the media to cover your company. You have to be the media. Take advantage of the power of audio and video. It's the best way showcase your expertise to perspective customers. Let the lubec in media companies handle the technical side. We're award winning audio and video producers. We can help you produce podcasts and video programs remotely or in our fully equipped studio in cherry hill visit being the media dot com for more information off the atlantic station property in atlanta is a retail office complex of about a hundred and thirty eight acres is being redeveloped by houston-based hines to better engage promote walkability and community throughout the property for shoppers residents and visitors and the leasing team is working to revitalize the retail mix at the once traditional mall space by by retaining and expanding the anchor tenants and attracting new retailers. We talked with jon hagey. The senior managing director of hines and dan hynes director of leasing nick garcia to talk about the transformation. That's taking place at atlantic station neck and john. This is a major project object. It's one hundred and thirty eight acres. It's got the retail component. It's got the office component nick. Tell us a little bit about how your transforming the retail experience experience on the property <hes>. Thank you for having us today. Stephen really really appreciate it. <hes> the retail <hes> portion of the center is really kind of the heart and soul all of the project and the public really really knows <hes> hines involvement with the project goes back to the fall of two thousand fifteen when we first when we first acquired it but our partners at morgan stanley <hes> since then we've been in the process of really kind of <hes> scraping the old image off of the center when the project trek was first conceived <hes> back in the late nineties early two thousands <hes> <hes> kind of the consensus of how to build projects like these was to make them <hes> feel kinda like a disneyesque town square and <hes> a lot of things over the years worked with that a lot of things really didn't so we're really doing this kind of amplifying the strength at the center which are really the dining the entertainment as well as the fashion aspects of the project and then <hes> bringing in newer users kind of really really reflect today's overall conditions in the retail <hes> market <hes> <hes> couple of things that we've done. We've <hes> taken a very successful agent. I'm store <hes> which is the highest performing store they have in the southeastern united states and they've expanded twenty six thousand square feet of forty thousand square feet. We've added <hes> five new restaurants and we're in the midst of a pretty significant transformation of our central park portion which is what we've kinda referred to as the living the center and <hes> <hes> which there's going to be home to three brand new restaurants and just a great public gathering space. It's <hes> not really about cramming more and more stuff you know so to speak <hes> in the retail environment. It's about creating a place where people really want to be and hang out and spend time and having those <hes> parts of a project it really resonate with today's retailers and the <hes> the property is being transformed. I guess because you're you're building these office. Spaces the two john talk a little bit about the office space sure well you know and the the office component of the project for hines really <hes> is just a continuation of of what's already been so successful there in the project <hes> our predecessors at three major office towers to the the <hes> development in the early stages so there's about a million and a half square feet of existing <hes> class class triple a. office space. That's <hes> along along the spine of the project which seventeenth street and going back you know probably about three years now <hes> ago partners and i <hes> seeing the advantages of of <hes> office development in the the really the the strength of the market in mid town. We <hes> acquired two sites within the project. This was actually kind of interesting actually in advance of heinz involvement with the overall master plan that that <hes> nick just described to you but <hes> again getting back we we saw the value of of midtown in general we saw shortly the value of the experience development this being done there so we we took <hes> <hes> one of the newest development products that hines really has and it's <hes> in its portfolio buildings across the across the globe a project and a product that we call teeth free with stands for timber transit technology. It's very unique. <hes> very high end office product. That's made made <hes> completely of heavy timber frame. We took that that product and <hes> designed a gorgeous building that we're about to to deliver however the market here actually in about sixty days <hes> two hundred thirty thousand square feet <hes> as i say that's a very unique <hes> <hes> <hes> office product never been built certainly in the <hes> in the southeast. This'll be the first of its kind. Actually when it's delivered it will be the largest timber frame office office going in <hes> in america and <hes> and then <hes> shortly on the heels of that delivery <hes> give it call it about eighteen months <hes> in in our world eighteen months is short <hes> ah eighteen months from from september <hes> we'll be delivering a the second product that we refer to as atlantic yards and that's <hes> <hes> a much larger project is built down <hes> right across the street from the existing three three office towers that are in the project <hes> approximately five hundred twenty thousand square feet and it's <hes> it's a project very interestingly <hes> <hes> designed to <hes> pay historical respect to the the <hes> the original use of this property which was the old atlantic ninety steel mill and <hes> you know in the in the parlance of the day when when steele was was being fabricated in america in many locations locations like <hes> like the south this was largely a train yard so <hes> hence the name of the project atlantic yards and a lot of our lot of our architecture architecture and interior <hes> finish that we're putting into this building really is a tip of the hat to <hes> to that heritage and i want to get back to the t. three property for just a minute of what made you decide to build this as an as a timber project. It's very unusual and <hes> you know it certainly raises people's eyebrows when they hear that the building is constructed completely of timber in an age of glass and steel well it isn't it is unusual and <hes> and that's uh-huh frankly one of the reasons that we're doing it. I mean i think you know i can give you that simple answer. I'll give you kind of another inch an interesting inside baseball answer also but <hes> but the first answer <hes> were were saying our customers literally across the country <hes> in their <hes> in their pursuit of talent. They're looking. I'm for highly differentiated <hes> highly unique office locations that help them recruit and retain employees just that simple and <hes> you know the buildings that even hines built <hes> you know call it over the last ten to twenty years. They're they're nice buildings. Many of them are even great buildings endings but they are. They're not nearly as highly differentiated as the products that we're we're developing <hes> today <hes> and certainly t. three is is is a classic example of that and give you the inside baseball story also about how we how we came up with the teeth re concept. It goes back to a site site that our firm had <hes> up in <hes> minneapolis that <hes> that frankly was <hes> targeted as a as a <hes> <hes> large scale residential development. We had one building on that site that had <hes> <hes> had <hes> was adaptively reused from romay <hes> <hes> from an old warehouse building. I think in many respects we consider that building might be great to convert to to residential or even demolition it and turn it it into something residential long story short we were amazed at how easily that building was leased and released and we learned a very very valuable lesson <hes> in that in that whole experience and that was that our office customers once again looking for something very highly differentiated love the soul i i love the <hes> <hes> the integrity they love the the authenticity of that kind of product and <hes> and our partner up there <hes> fellow named steve lutheran been out of the chicago office concede to the idea of building a product that we could build a scale and t- three was was <hes> oh was conceived with an architect out of <hes> <hes> canada and <hes> and and the rest of the kinda history the t the first teeth rebuilding the building was delivered in minneapolis <hes> to to incredible success atlanta will be the second and at this point we probably have as many as five five to eight sites around the country that we've identified as logical location to expand the <hes> the t. three <hes> <hes> enterprise. It is pretty unusual. We'll <hes> nick. I wanted to ask about the <hes> the shopping and the retail <hes> have you seen any significant transition away from the traditional all kinds of <hes> tenants that you would find in a in a retail mall property. Are you going for more experiential or dining or <hes>. How has that mix changing aging retail in general is going through a lot of changes right now and obviously the retail portion atlantic stations really kind of reflecting that and <hes> being such a dense and diverse. I part of atlanta. We're able to do a lot of things that a lot of you know. Other parts of the city and town are able to be done <hes> so to answer your question yes <hes> we are kind of ah shifting the mets around you know the days of building a project with seventy or eighty percent of your tenants being soft goods and apparel <hes> those days these are kind of over so <hes> <hes> that's partially due to a lot of changes in the overall demographics of our country but <hes> and we are really amplifying the different uses here to kind of get away from that model so <hes> having a great collection of restaurants schrafft's really if you have five or six good restaurants those you know collectively act as an anchor or you so <hes> we've made five new restaurant deals three of which are open <hes> up sure which render construction. We've got a couple more coming down the pike here as well too little be opening up in two thousand twenty in two thousand twenty. One <hes> we've had fitness uses is is well to then. We're really amplifying the entertainment <hes> experience here as well to <hes>. We got a very successful movie theater. <hes> <hes> regal cinema alantic station is the highest volume cinema and the state of georgia and <hes> what we're going to be adding. Here's a bolero which is a high end family bowling rolling center and gastro pub concept and the combination of a to really make for a nice nice night out of town a lot of corporate events and those dollars kind of spread throughout the rest of the shopping center is well. She'll if i could just add into something that that <hes> nick said because it really it really triggered a thought you you know the our office customers <hes> <hes> again in their in their effort to differentiate and create create environments for their employees they are <unk> highly focused on <hes> a lot of the <hes> the enterprise that you've just heard nick described certainly food and healthy options for that matter for food are terribly important to them and and <hes> so what nick has underway in the development is really just a incredibly important to us with the the new office customers that we're going to be bringing to the project. I'll also tell you that that <hes> there's a lot of new development that's happening within the in the project check in terms of the hospitality side <hes> certainly it's it's well no now on the market that are are twelve hotel product of that's been in the project since the beginning is now being converted to a marriott autograph collection a quality product and and really has helped us attract tennis as a as a consequence of that new product and then. You're just literally in the last thirty days. <hes> embassy suites hotel has just broken ground on a brand new hotel that they're bringing bringing to the market that they hope to have open <hes> at the end of end of next year so there's a lot more of this happening <hes> in the developing <hes> that's really again from my standpoint on the office side is is huge to create the right environment for all these customers that that's a great point john and john and i work and then glove here because a lot of the retailers that we're going after they don't like you know quote unquote static retail environments single use mall so to speak or just one hundred percent retail. They love seeing permits. You know more than three thousand residential units sober overall atlantic spacious <hes> they love seeing new office space they love having neely daily traffic generated <hes> by the office users and not have to rely on people just coming out for shopping so it's a very very <hes> <hes> symbiotic and beyond relationship that all the uses have with each other well. It sounds great. I appreciate you both taking the time to talk about it with us. Absolutely real nick garcia is is the director of leasing for retail at heinz and jon hagey is the senior managing director focusing on office leasing atlantic station in atlanta and that'll wrap things up for this edition of the c. r. e. news hour you can send your comments suggestions story ideas to steve at st broadcast news dot com or you can leave an audio comment for us using the voice mail icon on the homepage at st broadcast news dot com and we tape this program in studio a at st broadcast news in cherry hill new jersey join us again for the next episode of the sierra news our next friday at eight a._m. Eastern eastern time at st broadcast news dot com or wherever you get your pod guests. This is steve lubeck and we'll see you out there on the net. Take good care.

atlanta developer philadelphia tom chief executive officer manhattan partner nick garcia hines minneapolis cherry hill new york newark Danilo baseball
CRE News Hour 09/06/2019

Commercial Real Estate News Hour

59:54 min | 1 year ago

CRE News Hour 09/06/2019

"From the business desk at st broadcast news this this is the c. r. e. news hour. I'm steve lebedko. It's friday september sixth twenty nineteen in this week's edition of the news hour. We'll take a look at a value add investment strategy to upgrade and enhance class b and c multifamily emily properties with castle and terra properties c._e._o. Ellie reader michelle bodak of the instant group will tell us about her firms survey of co working trends in eighteen eighteen cities worldwide and we'll look at global economic trends affecting commercial real estate with c._b._r._e.'s chief economist richard barca. We'll be back with the top news stories right after these messages <music> turn earn your podcasting passion into profits the book the business of podcasting describes the business side of podcasting including how to become a professional national podcast. You'll learn about position your clients expertise who podcasting to plus the best business models how to find clients and much more visit the the business of podcasting dot com oh today you can't wait for the media to cover your company buzney. You have to be the media. Take advantage of the power of audio and video. It's the best way to showcase your expertise to prospective customers. Let the lupatkin you bet can media companies handled the technical side. We're award winning audio and video producers. We can help you produce podcasts and video programs remotely or in our fully fully equipped studio in cherry hill visit being the media dot com for more information <music> before we get to breaking news this note of some of noticed the photo banner on our august thirtieth podcast. Show page included a photo of mark mayfield c._e._o. Of building products company sango ben but more didn't appear in the show our interview with mark mayfield will appear in next week show we fixed the photo and we apologize for any confusion listen now. Let's take a look at headlines from around the c._r._o. World see a student living the student housing investment and development division of chicago-based c._e. Ventures says it's ready to open six student housing communities with more than three thousand beds and valued in excess of five hundred fifty million dollars in florida indiana illinois iowa ohio pennsylvania w five group ralph winters family office is announced the acquisition of a significant majority freddie interest in the highline at union market. A three hundred fifteen thousand square foot mixed use property in washington. D._c.'s burgeoning union market district as part word of the hundred and fifty million dollar transaction. W five group acquired clark enterprises entire interest f._c._p._a. And level development will retain interest in the property the highlight senate union markets a three hundred eighteen unit twelve story new construction building at three twenty florida avenue northeast. It's one block from the noma. Gala debt redline metro station asian and just steps from the union market food hall tara cap management a privately held investment firm in estero florida announced the acquisition of denver corporate center two and three in denver colorado for about seventy two million dollars acquisition consists of two eleven storey office buildings it totals three hundred eighty the two thousand rentable square feet. The property is located in the denver tech center. It's become one of the strongest areas in denver and its adjacent to interstates twenty five and two twenty five life and the bellevue light rail station providing various transportation options officials broke ground on phase one of major new apartment complex in retail space in downtown town sacramento. We'd new apartment homes. The project seattle area based developer and property manager says the sacramento commons project will provide four hundred thirty six six new multifamily apartments and retail space not far from the golden one center when added to the three hundred twenty five units at the existing capital towers community pretty the development will total seven hundred sixty one apartments over the roughly ten acres site marcus and millichip's oz turk gadoe group has announced three recent transactions in essex county new jersey for twenty six point four million dollar total the transactions include an essex county portfolio one hundred thirty units in a four-building multifamily portfolio portfolio in east orange and irvington that sold for about fourteen million dollars two hundred fifty nine reynolds terrassa twenty-nine unit multifamily and orange new jersey that sold old for three point three five million and forty two unit class a multifamily property in east orange new jersey jail capital markets completed the twenty two point eight million million dollar sale of executive centers one two and three a three building office park on fourteen point one acres totalling two hundred twenty three thousand square feet in overland allen park kansas the buyer was kansas city based brain group defco group and new york-based real estate investment company purchased a ten plus acre six building complex looks at one hundred fourteen beech street in rockaway new jersey from the silverman group. It's the second industrial complex defco group edit to its portfolio. This year totals one one hundred seventy thousand square feet. It's ninety nine percent leased to seventeen tenants including light manufacturing service and distribution companies ten holds properties announced just forty two thousand seven hundred square feet of leasing activity in the cyprus industrial park in orlando florida and twenty two thousand eight hundred square feet of leasing at the silver star commerce center also orlando in the largest of the leases f s florida's taking thirty three thousand six hundred square feet of flex space at the cypress chris industrial park i._t. W food equipment group signed a renewal for ninety one hundred square feet at the property nurmi properties as another spec build warehouse project project going into ground germany scooped up more than twenty nine acres in bethel township pennsylvania for the future home of what it's calling logistics center at midway south constructions is underway on the three hundred four thousand square foot facility located at interstate seventy eight exits fifteen and sixteen with connections to interstate eighty one interstate four for seventy six and interstate seventy six also known as the pennsylvania turnpike constructions estimated to be complete by the end of the year the property suited for manufacturing whereas distribution shen and ecommerce companies tenth street ventures and brayden feldman group multiple apartment buildings in morningside lenox park atlanta they have plans to create in a unified community by rebranding them as one garden style apartment complex called the piette the exterior to be painted by artists chastain bernard will be inspired by the neoplastic neoplastic system movement with visual compositions of vertical and horizontal shapes using only black white and primary colors to simplify and unify the building's exteriors exteriors in the nearly forty two million dollar transaction t as v._n. B._f. g bought thirteen buildings from multiple owners totals three hundred thirty five units over twelve and a half acres at the complex anchored by the twenty one seventy five lennox road northeast building the team also plans to connect the nineteen sixties and seventies wendy zero buildings with walking trails to pools several dog parks more than a dozen grill stations botchy ball courts and putting greens and you're listening to the c. r. e. news hour from st broadcast news. Dot com formed in two thousand is a nine castle land. Tara properties is a privately held real estate investment company focused on the acquisition management of quality income producing multifamily properties within strategic growth markets throughout the united states to a rigorous value enhancement program that includes thoughtful renovations operational operational improvements and ancillary income development kesselman terra aims to reposition each asset with the goal of maximizing net operating income elevating waiting its competitive position within the market and generating attractive risk adjusted returns for its investment partners casselman tara properties currently owns and manages is more than seven thousand units across twenty two properties joining us to talk about gasoline tara strategy is ellie reader the founder and chief executive officer an an active real estate investor owner and manager since nineteen ninety eight mr readers been directly involved in acquiring more than fifteen thousand multifamily units and he's invested across crossed the real estate spectrum including in residential office hospitality retail and parking eliot. Thanks for joining us on the cea. Renews our tell us a little bit about castle and tara and and your investment strategy sure tassell entira family owned growthy company we own round seven and a half thousand apartments across twenty three three properties and investment strategy is to analyse rigorously analyzed the properties operational performance forming and its ability to fulfil current and future demand in the area surrounding residents people who live live in the area the demographic that were generally targeting our middle class but we define a workforce housing just sort of people below luxury a unit but a above anything that would be regulated stabilized controlled or supported by government like section eight <hes>. I'm so we're focusing on your typical middle america income earner whether it's a teacher or firemen policemen and ambulance a young lawyer doctor op there <hes> healthcare professionals etcetera and our goal was to modernize and amended i and many times the property operative by fixing the key fixing and improving and repositioning the common ground and the amenities by adding new amenities that are appropriate bridge to the neighborhood and the community and the residents that live on site and generally to evaluate strategy repositioned additional property and improve the revenue so that say profitable venture and also improving the quality of life for for the residents and that can be wife safety issues with having better whiting avoiding any hazardous cracks in concrete on crete putting in parks putting in gyms improving the interior department the exterior of the building the landscaping the management the response time maintenance calls et cetera so it's a variety of value and programs that we want to implement and capital improvements an operational enhancements and these are sometimes fixing existing issues that should have been addressed by previous owners and often bringing in new ideas new amenities new socially interactive opportunities leagues cooking classes bootcam- classes a little different kinds of things for for the residents. We know that there's a lot of demand for affordable. Workforce housing for people who work as police firefighters our fighters teachers and other public servants. Why is the supply of workforce housing so limited given the fact that there's so much demand well well first of all the majority of new construction today is luxury apartments and the reason for that is because the cost of construction and and labour has increased substantially in the last few years in addition to that millennials today make up one third of the country's total workforce sixty five percent of households are headed by people under age thirty five who choose to rent and and these millennials has significant student loan debt and often are unlikely to able to save enough for a down payment on a home that they acquire wire they also like the ability to be flexible and move from place to place the following jobs or relationships etcetera so they choose the flexibility by necessity or by choice to rent so you have an increasing amount of people that are looking to rent and you have baby boomers as well twenty three percent of the u._s. Population who are renters aged fifty five and above and that has increased this population baby boomers have increased by twenty eight percent between ten is an annoying the two thousand fifteen renters in this eight fifty. I five up and that's a trend we expect to see continuing so you have all these people who are choosing to rent not have a desire to own looking to downsize or needing being the rent and the majority of new construction is luxury because it's so expensive to build and to buy land labor and material so therefore eighty percent of new construction is luxury and there's a limited supply of new construction. That's affordable will end at the same time you have. Millennials were at unprecedented rates looking to rent as well as baby boomers for looking to downsize is that that has a very big supply in imbalanced. So wh what do you think is the solution. What are there's some of the ways <hes> i gathered. That's certainly one of the ways that this can be addressed. As by the kinds of things you're doing with the value add investing. I think that the solution is to create through renovation. A quality product that this millennial segment of society or a baby boomers feel that they're getting very very good value for their money that they feel like they're living in at time an ache quality asset at a price of what would be termed abi asset and that's that's what we're trying to do. We're trying to offer to be the value proposition saying we're offering something that has interior apartments bathrooms kitchens floors and then he package the safety social aspects of the community a sense of belonging and a sense of community similar to what a class eight does wolfer but at the same time much more affordable price point and thus. We believe that we're satisfying gene. This imbalance of this middle class in needs quality product at a price they can afford. Is it primarily because there's always going to be a need for for housing that you you see multifamily assets as strong investments are sort of recession proof ahead of a downturn. Yes i think you know because of this growing gap between disappointed men. There should be a minimal vacancy rents in the workforce housing. Have you know continued continued to grow in recent years and it's likely to continue on that trajectory the bottom line you said people need a roof over their head and in a the recession would generally has happened to starkly is at the luxury apartment buildings. The top of the market in terms of pricing has suffered. I i where people become tenny wise and are looking to cut costs and we'll leave an ultra luxury rental and take a step up down to save money on their rents and we want to be the place that they go to but to leave the type of assets that were managing and go step lower many won't because that would be a dramatic change in lifestyle so we see this as every investment has risk however when we look back historically and my family has been in this business on two sides over seventy years we have not suffered in recessions because we're catering to the middle class. Generally a nurse or a doctor is not as affected in a recession as a bank or you know making a very very different income investment investment bank. Who's paying ten thousand dollars a month for their apartment. So that banker he doesn't get his bonus may choose to cut his costs but adopt were young lawyer or a policeman or a teacher or an ambulance driver. Jolly continued to get their paycheck and continue to need a roof over their head and a place to raise their children so being in that space. We feel like it's less affected by the stock. Market growth in general is less correlated to the market. It's less correlated related to other things and in a recession if there's inflation that's a real estate is a good hedge because values go up and rents go up <hes> <hes> so we see the multifamily space for this middle classes as i don't like using the word recession proof but somewhat recession proof and that's that's what history it takes as well so. Are there any recent projects. You've worked on that <hes>. You're proud of that. You could talk about <hes> in a little bit of detail sure we can talk about some dispositions. I always say the only way to know. Something's a good deal is if you refinance yoursel so i can take it through quickly weekly a couple of our recent dispositions in the last two months <hes> the last eight weeks here couple different deals that we sold one deal is called asher. That's four hundred fifty two unit apartment community located in western texas. We embarked on a multi million dollar. Our strategic capital improvement when we acquired the property to beautiful property on around fifty acres very good location in austin and we thought as an opportunity to take an asset that was built of the class a was around ten years old when we bought it and reposition it to be a beautiful class again. The market in austin had gotten explosive growth and experienced for instance investment by employers and income average income in the area drastically grew. Oh and we felt that there was an opportunity to really raise the standard of this property repositioning back to being a beautiful class-a i say in this improved market and fast growing city so some of the things we did is we completely redid the clubhouse and leasing wolf which is a very large public area with different amenities in it we we read it from scratch converted or a laundry room to extend the gym which is open twenty me four hours it made it made extensive renovations properties to pools. We renovated around thirty five percent of the apartments and we attracted the much higher better educated clientele. We offered a superior product y y but still maintaining very good value price point in terms of rent. We were the value proposition in the area and we consistently had high occupancy and steady rank growth and had a very very favorable evaluation at the seal and you know had a mid twenties. I are on our exit and other similar. I'm laurie position that we did. <hes> a couple of months back was called the heights at skyline as the three hundred and four unit multifamily property in tuscaloosa alabama obama purchase that property in october twenty fifteen for eleven million and change we the under token extensive again in extensive capital cap ex plan to improve the property are we were attracted to that. Deal was very different different deal in a very different market. This was a it was built as a be asset and it was probably one of the nicer be assets in tuscaloosa which is a tertiary market but we were treated to the market because mercedes had invested billions of dollars into the market had <hes> has a flourishing college will no football team and this was in our opinion at the time was probably the nicest to my knowledge nicest be asset eh great bones and great amenities and we wanted to reposition it to be a beautiful bouquet plus asset which involved raising the standards of of the residents that live live live there making sure that we only the type of people with the background checks security checks and criminal lack of criminal activity. <hes> would be living there which we took a lot of work on our end. <hes> says they say we purchased purchased property for eleven million and change. We you know in crude we increase and modernize the amenities. We installed energy fishing l._e._d. Lighting ding resurfaced and refracted parking lots. We improve the landscaping throughout the property. We upgraded the interior of the apartment. Some thirty five percent of the units even its which resulted in very meaningful rim premiums and we were able to attract quality families to move to the property and we sold the property <hes> <hes> three years later. I'm sorry four years later in two hundred nineteen for twenty point seven million which was a gross i._r._r. Around forty one percent <hes> <hes> and pretty much a tripling our money over the three years of ownership so he bought an october twenty fifteen and sold it in february twenty nineteen and that was <hes> a heavy head <hes> it was rough for market required a lot of cheerful valujet evaluate execution. We ended up taking a property that was looking like is see when we bought it and making it a c plus d minus and then it'd be <hes> <hes> and the rents and occupancy were reflective of that journey enough value on the exit. <hes> another interesting exit that we had in chicago was called midpoint which was four hundred and twenty four apartments and a community located on the outskirts kurtzer chicago. It's actually interesting in chicago municipal workers at least when we bought it <hes> perhaps this changed. I'm not up to date currently ornately but to my knowledge didn't change the municipal municipal municipal workers has to live within the city. This property is in chicago chicago but across the street is not chicago so i'd have the advantages of the suburban feel being right at the edge of the city but at the same time it was attractive to city workers and employers to the city because it's still was considered legally part of chicago we bought the deal had come out of foreclosure hoosier and was stabilized but had a lot of deferred maintenance and a very rough coin. Tell again our job was to address any health or safety wife safety issues putting whites dealing with getting rid of crime getting rid of the elements and activities that we wouldn't want the community to live in making sure it was safe for anybody to walk around <hes> watts of light security et cetera and over time we acquired this property in twenty fourteen for twenty eight and a half million. We put millions of dollars into the the elevators roofs. The common quarters unit renovations created a new leasing center a new gym and we renovated resident lounge when we renovated around thirty percent of the units <hes> on the roofs we put an energy efficient roofs and we refinanced the asset france three years later for for forty million dollars and then we sold it last year for forty nine point five million dollars was generated a gross yards around thirty six percent so do that again was the heavy value wet where we wanted to upgrade the property from what was it be to maybe it'd be minus when we bought it it and we wanted to be then be plus by the time we saw the asset some recent acquisitions that we had were property overlook at stone mill which was a two hundred and sixteen unit multifamily community and links brings virginia and that was a you're asset. We're we're introducing. New community. Amenities were joined deferred maintenance <hes> again renovating apartments and an added feature to this deal is that the several acres of jason lynn that's already zoned in a prude add more units and we can increase the unit camp by forty percents and we gave zero value the land when we bought it. I'll i'll conclude we recently acquired two deals in atlanta both off market doc it <hes> one that's called premier apartments which is a two hundred eighty unit apartment property in suburban atlanta twenty four buildings on twenty four acres and <hes> <hes> the feature is a nice range of amenities tennis courts a lake upgraded swimming pool playgrounds and we're implementing property the improvements. We've raised occupancy dramatically. Since we took over the property we saw an opportunity where there were a lot of units that were damaged by a fire and left untouched three years which we are putting back online. They rebuilding those departments. <hes> making sure pindi is a nice place. I used to live in slowly. We all do build a sense of kenyan sense of belonging to the residents and then last week we were in the same area in atlanta another property property call three hundred riverside which is two hundred and twenty twenty units in <hes> austin georgia and features a fully appointed appointed clubhouse a pool tennis courts a fitness center and wide ranges community many activities and we started right after going to address for maintenance and put in water and energy efficient systems et cetera so i guess the long and short of our focus what we tried to do is to take something and make it much better for the residents of the community for the children that live there for the adult that live there all the residents from social aspects from the safety aspect from an amended aspect and from the quality of the interior of the apartments the landscaping the management and it's atra and everything we buy has a similar a similar focus. You know we're looking for strong. Diverse local economies enemies and healthy percentage of quality jobs good i find employment income growth with school districts a good business climate good infrastructure and mass transit and the markets that that we're focusing on our you know seattle area orlando tampa boston denver colorado the northeast quarter from boston down denise including virginia. We like austin texas and the mid atlantic region when you're looking at <hes> the market <hes> <unk>. How do you look for opportunities. What are the <hes> cities that you look at are. Are there any cities that you know. Maybe don't get attention from other people that you could point out as being <hes> unheralded opportunities if you will. I think we focus more on sub-markets than cities because our some markets in every area that we look to transact that we would not win and in many you said he's the markets that we would in but as a rule of thumb. We're paying a lot of attention to the political impact like we have avoided new york city manhattan. The last five years is we were very concerned about the role of politics and its impact on real estate. We're concerned on rising property level taxes and the loss of retail income and what that does to the city and very concerned with a new political political aspect that has made a dramatic impact on values of real estate in manhattan which there's no better way for meat determine termini's annoys other than socialism because it doesn't make sense from an economic perspective and there's no economist to my knowledge who would recommend our endorsed endorsed the new laws and regulations that are very very anti owners that were put into place in manhattan and new york on their own stabilize is units. We don't focus on wednesday units. <hes> we wouldn't have been affected anyway but we look at new york as the city were because of politics and because a new laws being passed and being proposed anti landlord and makes it very difficult to run a building and be motivated to investment in building when there are people who are trying to do everything they can to not allow landlords to make money. We have a lot of charity go for making investments at has to asked to make sense that being said there are markets in texas or in colorado that are very very business friendly that understand that it's a partnership if a landlord going to invest vest and building and improve the amenities and increase make sure it's safe and amenities that he has to be able to return some return on the investment the motivated to continue doing that that business plan. Are there any red flags on the economy that you're keeping an eye on any <hes> bumps in the road that we might expect over the next say six to twelve months. I would've said until a while ago concerned with interest rates but it appears that most would be of the opinion that for the foreseeable future they're not gonna go up and if anything they would go down <hes> certainly fannie and freddie to balance the two thousand nineteen or the biggest lenders for the multifamily space that we play in an invest in have definitely eh taken a much more conservative and measured approach where you know they are not as motivated or eager to put money <music> out into loans for the balance of the year the impact for many have been a dramatic reduction in interest only periods on the loan lower proceeds and lenders have been looking for higher spreads which means that if interest rates went down the that savings have has is he's not necessarily trickling down to the borrowers and freddy are looking to keep that difference and still offer similar rates as they were offering several months ago said has has made buying for many owners more difficult through challenging the same time. There's other options like c._b._s. And local community banks to to finance acquisitions where i think that the economy as a whole could be at the end of the cycle usually real else they work from cycles and this has been very long good cycle so we'll things usually come to an end that being said for the specific the civic workforce housing strategy that we focus on the data showing that space is better than ever and as a result there's more money looking to be invested in workforce multifamily than there ever was both domestic and international private and institutional national tremendous amount of money looking which was driving pricing up and the reason. There's so much money that wants to be in. This space is because risk adjusted. It's a very very attractive asset. The class it's historically performed much better than any other sector in real estate and the risks are much more minimal because you can control troll how much you spend on renovation and stopped renovating or draft innovation based on your return on investment as we said earlier people we need a roof over their head to live in and the supply demand is imbalanced for something that is affordable to most americans and that is something that many investors realize so. I think that we may be at the end of the cycle. There's always risk with interest rates but i'm personally very bullish and castle and tara is excited to continue acquiring a very disciplined away. What we believe can be the value proposition in the markets markets that we're investing in. We're offering a very good product at a price. There's affordable and attractive compared to the other assets in in the area and it's also non correlated to the market. The stock market pulled apart at the direct. Impact is obviously much west on real estate uh-huh and foreign events which can impact things have less of an impact on multifamily. Elliot's great to catch check with you and get your perspective on the market and the things that you're doing. We thank you for coming on the sierra newshour all right well. I'll leave you with one thing about the red the flag my grandfather wants told me he was my mentor in real estate he once said when times are good people think they'll never get bad and when they're bad they think will never get good so i you know i agree with the tone of your question that we might be the end of the cycle but at the same time we're very confident in this space and believe that risk address it still provides or a very attractive investment return on a good deal is located probably makes sense. Grandfather sounds like a very wise man. We thank you for sharing that with us. Okay thank you for your time. Ellie reader is the founder and chief executive officer of castle and tara properties. You can get more information at kessel. Lynn tara dot com and will put that link in the show notes for this program. You're listening to the cr news hour. I'm steve love atkin flexible workspace demand increased nineteen percent on average in the top eighteen cities around the world and larger requirements of ten desks six or more now represent twenty percent of total market demand the instant group a global flexible workspace specialists that helps clients procure cure and manage their offices and more than two thousand two hundred eighty cities across one hundred fifty three countries has released a global cities report analyzing the market for flexible rexel workspaces in those top eighteen markets and joining us to talk about the report is michelle bodak managing director of sales and marketing america's for for instance offices michelle. You've specialize in global flexible workspace. You're in a bunch of cities and a bunch of countries <hes>. What are you finding finding out about flexible workspace in the research that you're doing well. The market for flex workspace is really becoming increasingly sophisticated as operators such as we work and regis and industrious the you know fifteen thousand other providers that are around the world are really ah chasing after the larger more corporate requirements <hes> we also see requirements and spaces being taken for longer term <hes> <hes> and that demand is really <hes> continuing to grow as corporations and end users of space are really looking for greater flexibility as part of their portfolio strategies note. <hes> among the findings in your report is that not surprisingly new york remains the most expensive market based on a per desk price <hes> how does that compare to people who are looking at pricing for traditional office space in new york yeah so i think you know we get this question asked quite a lot and we look at comparisons of total cost of occupancy. Let's see so when you are looking at a traditional lease. You're typically looking at your rentable square feet and then applying that out and then you have to start adding on on top your <hes> empathy operations cost etc a real estate taxes so on and so forth so that costs per desk rate is inclusive of all those elements so i think when you really look at <hes> the <hes> comparisons and how you need to explore flax. It's really looking that that total it'll cost of occupancy over the term and really comparing those <hes> i think when you start to look at it again over the life of that lease if you have flexible least for twenty four months or twelve months or six months versus locking into a five year or ten year term and that's where the numbers getting i think interesting because again you're paying you might be paying slightly <hes> a slight premium for flex but again you have the ability to move and shift as the demands of your business shift and what are you seeing in in terms of pricing <hes> your your study indicates that pricing is cooled off a bit over the across the eighteen cities that you analyze what's taking <hes> what's making that happen so interestingly enough. It's just a demand. I think as we start to see <hes> more operators coming in more choice coming in pricing has slightly decreased <hes> but again <hes> i think we're starting to see <hes> markets evolve outside of those bigger larger. I central business districts into some of the more suburban markets so we're starting to see demand grow outside of the core cities <hes> but again the choice in those cities. He's is <hes> you know. Continuing to grow people are expanding their footprint <hes> more and more of the customized spaces where that workspaces workspaces the service offering is coming in <hes>. Those are things like <hes> industrial is offering <hes> canvas <hes>. We works h._q. Products <hes> you know a myriad of other providers have those kind of customized spaces so we're starting to see that trend kind of uptick there as as well so i would say the traditional cost desk. Yes we've seen those market rates often but we're starting to see trending increasing in other areas. Are you getting a sense that the owners of office buildings are more receptive to leasing the space to flexible work companies. Definitely i think we've seen seen <hes> a lot of the landlord <hes> community starting to figure out how are they going to integrate flex into their buildings. <hes> <hes> i think convenient has done a great job in their partnerships with landlords <hes> offering the mini side the conferencing centers and now they're moving into the workspace <hes> environments limits as well <hes> and i think you know tishman spires done a great job with studio and we're starting to see that expand so i think you will either see landlords looking for the right partners for for their buildings to fulfil the need of the clients that are in those spaces or you will start to see the operator starting to self deliver <hes> and i think that's where the market is trying to figure it out right <hes> right now as you know how to what is the right approach <hes> for the different types of building classes and the you know consumers that are in those spaces so your report looks at eighteen cities which of these cities are showing the strongest growth in the demand for flexible space and what do you think is this is underlying that <hes> so i think there's <hes> a couple of things i mean like new york san francisco <hes> certainly <hes> but we've also oh seen you know global cities growing as well <hes> and obviously those <hes> location certainly in asia pac we've seen quite <hes> good positive steady growth in tokyo and melbourne and sydney and i think you're starting to see companies really use flex <hes> as has a way to enter to enter new markets at speed or testing new markets and then putting <hes> you know a more permanent <hes> space down <hes> but that what is really what is driving this next phase of growth. I think you saw the early stages at the member small medium sized business now you're really starting to see as some of the large corporations <hes> leveraging flexes and much more strategic component of their portfolio and just looking again as another way to deliver in access space in potentially <hes> challenging markets. I think the further away companies are from their core supply chains for delivery. <hes> you know certainly multinationals who have experience <hes> in those you know probably regional and international locations but for others. Who are you know dipping their toe into a new market. This is a great way to to do it from a space perspective. Are there any concerns you have about <hes> factors that might put a dent in the demand for more flexible office space. Now i think interestingly enough. I mean <hes> quite a lot of <hes> talk around recession and other elements but i do think you know. The demand is continuing to be strong. <hes> i think that you know companies who have high growth <hes> or unpredictable growth or looking for cost savings or potentially looking for again the ability scale up or down <hes> the the demand will continue to be there <hes> there will always be opportunities <hes> for maybe some acquisition or consolidation <hes> but i do think that <hes> overall overall will continue to see the space grow <hes> over time because i think you know demand really has increased you know nineteen percent on average across i saw global cities that we cover in our report and we predict that we'll see that same level of growth continue in the coming years. We'll put a link to the report in the show uh-huh notes with this podcast michelle. Thanks for joining us today. Thank you so much. Michelle boutique is managing director of sales and marketing america's for for instant offices. You can get more information at instant offices dot com. We'll be back in a minute. This is rabbi richard address. I join us for our podcast series. From jewish sacred aging titled seekers of meeting will explore some of the issues and events that impact ourselves. Our families is in our jewish world at large in light of the current revolution in eiji. The secrets of meaning podcast airs every friday morning at eight a._m. At jewish sacred aging dot dot com <music> today. You can't wait for the media to cover your company any you have to be the media. Take advantage of the power of audio and video. It's the best way to showcase your expertise to prospective customers. Let the lou you bet can media companies handled the technical side. We're award winning audio and video producers. We can help you produce podcasts and video programs remotely or in our fully early equipped studio in cherry hill visit being the media dot com for more information. The global slowdown has seemed to ease a bit driven primarily by resurgent office investment in gateway markets. That is the assessment by c._p._r. A._p._r. e group the world's largest commercial real estate services and investments firm joining us to talk about the global economic outlook is richard barnum he he is the executive director and global chief economist at c._b._r._e. He shares c._b._r._e.'s econometric advisors and he's also visiting professor at the university. The city of london and university college london richards written two books on real estate real estate and globalization which explains the impact on western real estate markets of the rise is of emerging markets like china and brazil and the determinants of small firm growth which examines the role of small and medium sized firm play in regenerating eating regional economies richards joining from c._b._r._e.'s new york office richard. Thanks for joining us on the sierra newshour my pleasure steve so you have come out with with the some warnings or cautions about a global slowdown <hes> according to your reporting global commercial real estate investment was about a two hundred thirty one billion dollars in the second quarter and that was up seventeen percent from the previous quarter but it was down about seven and a half percent from the <music> same quarter prior year. What are the concerns you seeing. What do you think accounts for the slow down but i think the slowdown was largely focused. Just the start of the really think then the issue globally was rising u._s. Interest rates <hes> and i think that is very squarely being <hes> taken off the agenda from a bat february both the fed alternates <hes> it's monetary policy guidance and the ten year treasury. I'm starting to full so i think the issues that might have concerned investors at the start of the maybe through january through april <hes> a now no longer on the agenda so with that fall in interest rates. I think we're reasonably positive about capital markets activity in the second half of two thousand nineteen. That's encouraging <hes> last week. We saw the yield curve invert and it rattled the markets. <hes> what are folks telling you this week. Were recording on august nineteenth. What are people saying about. The market's going forward for the rest of this week in this month. Well i think one of the points that we made <hes> in our q. Two reporting with just how strongly into to the office investment had bounced back largely around the the the big gateway cities so if you don't mind me quoting some statistics say quite remarkable paris was out twenty two percent on the same in quarter last year san francisco ninety one percent new york up thirty nine interested tokyo up eighty six percent boston up fifty nine percent los los angeles up twenty five percent bird in eighteen percent so i appreciate that the the overall context investment was down seven point five on q. two but i think the interesting the global gateway cities in very important <hes> and i think people what people are looking at their. It's just extremely robust leasing leasing activity so all the talk about <hes> investment a for all the talk about a global slowdown. <hes> obviously seniors pretty strong so i think that's that's one thing that i'm hearing from investors that <hes> they like the fundamentals in the office sector and of course the other thing that <hes> <hes> we noticed in the queue to statistics is just the apartment investment was up twenty one percent from q two thousand eighteen and <hes> it's just a the the american american multifamily story remains an extremely strong global story <hes> and the fundamentals there are pretty robust as well and i think that's walk walk investors and looking at <hes> so you know we we all sailing into a period of economic uncertainty <hes> but there is <hes> the remains voice has been a very large mind capital talk in real estate and i think the fall in interest interest rates and the likelihood interest rates will stay no longer is actually very positive for real estate investment <hes> in the second half of the year. The resurgence of office investment is interesting because for a long time in the u._s. Office has sort of been on a <hes> <hes> sort of a second tier track. It's not been of as much interest to investors as say multifamily certainly and industrial <hes>. Are you getting any sense ends of what's made sentiment seemed to turn globally in the office market i think it would be this is my own personal opinion. I'm not necessarily that of c._b._r._e. But i think it's a variety of factors i think the continued strength of tech leasing is important. I think the way in which into media operators <hes> re imagining office space as <hes> kind of a much more high immunity unity high productivity space <hes> that companies can use in the war for <hes> i in the war for talent and so i think as well as that i think globally this has been one of the most disciplined real estate cycles with <hes> <hes> albeit an uptick in office development not really strong surge in office development as we might have seen in other cycles in the stage so i think <hes> just the the fundamentals of supply and demand in the office sector is what <hes> plus plus. The some excitement has come back into the office sector. I think if i were to add another maybe nuance to that. I think the first half the first half of this cycle <hes> the finance sector was hobbled. I think <hes> due to the after affects the financial crisis and regulation asian <hes> you know i think we've seen a much more active finance six two as well in the office market too when you look geographically. What are the regions that are showing you the best performance or performance that makes you comfortable and which regions are are you looking at and seeing maybe yellow flags or even read flex what was saying is a little bit of economic weakness <hes> in a pack and a little bit of economic weakness in and <hes> we see that the united states is holding up in terms of its economic growth very nicely <hes> and you you know what we've seen. <hes> <hes> is amongst a global decline in capital into real estate q two on q. two thousand eighteen <hes> america has been pretty stable <hes> and we've had <hes> open a mild climate you want <hes> and a decline in my take on that is the investors always get the best the best deals <hes> if they act somewhat counter to what other investors doing so <hes> you know i think the americas quite quite good from an economic perspective but i think emmy are apec was looking at because i think capital markets have eased a little in those <hes> in those regions and it may well be a savvy investors can get a little bit better value than they could've down this time last year as you're looking at the global supply chain <hes> how much of a factor is that in <hes> <hes> driving industrial investment around the world as companies are trying to build these supply chains. We have seen a little bit of an impact. <hes> and i think you're referring to <hes> the trade war. We've seen a little bit of an impact in our industrial markets in <hes> companies <hes> putting forward purchases <hes> from asia pacific so there was a surge in inventory <hes> on the west coast. I think yeah <hes> in advance of tariffs going in so that's one area that we have seen that <hes> the tribal has impacted. It's been positive so far as the bill that of new supply chains is concerned. I think it is too early to say <hes> we have certainly seen goods <hes> rerouted as of <hes> asia pacific <hes> <hes> industrial markets through instead of coming straight from china. They'd being diverted through other third the third countries <hes> and it's still landed up the big consumer markets. <hes> we see stories about <hes> manufacturers moving to other locations but i don't think we've seen that impact on industrial market yet. <hes> the end of the day <hes> the u._s. big consumer market <hes> and end goods is still going to come in <hes> in through the ports of needs to be rerouted <hes> through <hes> an ever more complex flex supply chain for same day film and <hes> actually we see <hes> in the in the u._s. Market <hes> sustain dimond on leasing demand when you look at the concern in europe and around the world about the potential for a hard brexit later this year <hes> does that have any impact on what people are thinking and making terms of making decisions on real estate investments well. That's a very interesting question. I mean <hes> cap rates have been stable in the u._k. <hes> actually they've compressed based in europe so <hes> there is a sense in which perhaps the <hes> investment in the u._k. Is is hanging hanging back. <hes> because of the the phase of a hard brexit i think if you look at the parliamentary mathematics and indeed our own in house house <hes> political analysis a hard brexit. It's extremely unlikely <hes> even at this stage it is extremely unlikely <hes> i would save that actually <hes> presents an opportunity for investors to again a qua- i start in the u._k. <hes> at a way that might be advantageous when <hes> brexit uncertainties <music> <hes> e- i'll likely to do <hes> by the end of the <hes> guy in two thousand twenty and then finally richard just <hes> if you could give us a sense of your overall outlook for the rest of this year and whether you think the overall economy is headed for recession in twenty twenty twenty we thought about this a lot obviously <hes> and the helping some slightly worrying economic statistics at at the economic contraction in germany <hes> was <hes> in q two was a <hes> something that investors focused on as highlighting highlighting weakness in northern europe. I also think that <hes> china <hes> is potentially <hes> continuing to slow luke <hes> against that you've got the u._s. <hes> <hes> motoring on quite nicely but i think there are some countervailing factors is that people <hes> people are not thinking about the moment one is the world conceal competence. Is that an all time high. <hes> <hes> so the consumer sector is not showing anywhere near enough stress. I think in order to <hes> have a recession another thing we've yet yet seen the full deployment of monetary policy from central banks. I think there's a lot more that central banks can do to boost the economy. I believe they're planning to do got so it is true that the global economy is <hes> sailed into a period of uncertainty particularly in europe and jonah <hes> an asia <hes> but i think there is a whole lot of stimulus yet to come which i think <hes> will will will alongside consumers support the global economy including twenty so we see slower growth but we don't see a recession richard. Markham is executive director and global chief economist at c._b._r._e. Are- richard thanks very much for taking the time to bring us your perspectives mark <music> and that'll do it for this week's edition of the news hour. Don't forget to check out our audience survey survey by clicking on the purple. Take the survey button below the podcast player on the show page for this episode and please consider becoming a financial supporter of our podcast by clicking clicking patrie on button if you have comments about our program or a story idea that you'd like to see us cover send me an email addresses steve at st broadcast news news dot com you can also leave us an audio comment by using the voicemail feature on the right side bar of our website pat state broadcast news dot com. We we take the show every week in our studios in cherry hill new jersey for everyone at the c. r. e. news hour and state broadcast news. This is steve lubeck. Thanks for listening and we'll see you out there on the net. Take good care <music>.

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A Stronger Desire to Live

PEN America Works of Justice

1:20:16 hr | 11 months ago

A Stronger Desire to Live

"This is not manual. You know for twenty five years. I felt like I had no role in society. Voice. I was surrounded by incredible people incredible artists. and. We all felt. As though, we would never have the opportunity to be heard. That's why I'm so glad to be a part of this project. So glad that Pin America has made it their mission to share the voices of the voiceless and to ensure that message is heard. This is a wonderful opportunity and I'm very grateful for it. I'm very grateful that I could add whatever I could to make this a success to touch you to offer something that will resonate. With you and with yours and with those people who are still feeling as though they had no voice. Watched pods they narrow. Boil Bay. Toyland spin the wonder when they. MARCI again to by two. Reading on what they do because this high prices deep knows. By need. Fish. So cray. Soul Kinky. To Maros dying your sleep. On the cow. Counting days do the day that you're on your way out on this jury. On the grade on your feet on your knees on your mind all the time on the cloud. Green acres. Of Green. Shakes in the shape dreaming of Home Long-forgotten. Eber was known holding tied to. The nothing you own relatively speaking slow go fast gone. Women Nissen known decisions of lives stone. Bobby that you'll always deep in sand, and as you drown the years you hear the sweeper hands-on the class. All the cow. Counting Days Do. That you're on. The stree-. On the grass. On, your, Pedo you need. The time. Counting. To? The Street on the. On your feet on your knees on your mind time. Burst. Gearing leader as it draws to in in. Just slips away because it's nobody's friend. In the good and curls in the bed. So much of it when it's all that you have class. Counting a dude. That, you're on your way out on the street A. Gray. On your. Knees on your mind all the time. Counting days to. Your. Dog on the street on the grass. On your feed on your knees on your mind, ain't. Time on? A. Jones reading. Flex top Cherry. Formerly cost. Twenty three years on the inside. And I am also an alumni of rehabilitation through the arts are Ta we? My acting career began that painful pass as white me delighted to meet redes- piece. So without further, ADO flattop for Cherry Hill by Paul Bets. To me, was patient while I covered him from the neck down with the sheet. As I began to slowly tremors, mangy mattered hair. Jimmy stated I. Guess they're going to win. When what I asked, he began to talk about his last appeal. Everyone in prison has an issue on appeal without one. You have lawshall. Jimmy's hope was gone. Life means life in Michigan. Only I cheated them. I'm going to die young. He laughed. One somewhat at a loss when confronted with an aspect of reality that we want to now choose to ignore. We generally look away from debt dog along the side of the ball. The privately angered that we had to see death it all. All like anonymous death. Jimmy had about two weeks left in was anything but anonymous. He seemed reconciled to his personal club. I asked if his family had been to see him. It was then. About Cherry Hill. Somewhere near the state prison of southern Michigan, the largest walled prison in the world. Is a mound of earth? Blanket buried for decades on this mound. The truly forgotten. Not only has the tide turned its back on these people, but the families have gotten. Some were men who outlived the families and friends. Some who's heinous acts have separated completely from society. In some so pork families had no alternatives. Jimmy told me these people would soon be friends and neighbors. I was cutting. His hair slowly was not used to touching the living dead. Jimmy smiled. He could tell the story troubled. He asked if I could do him a favor. He wanted flattop haircut when he was young. Before he had real problems, he had a lot of friends. They all had flat tops. It made them feel cool. He was like to be cooled again. I had never given a flat top crew is not all that good? Bob But I said I would try. There was much trial and error and eventually a fairly decent flattop. A took the handheld mirror and showed him the results of my efforts. Man Those guys in Cherry Hill new. Be Real envious. He said he did look good. It was mostly as smile. All the nurses made about Al handsome he wants. It was a certain comradeship that had developed among those of similar faith in the Koran Keagan. Young goodhearted male nurse course Jimmy up and down the hall to stop and talk for a few seconds with bedridden long-term He had gotten to know. Comments. Go Jimmy. They can't be you and lucky. There aren't women on Cherry. Hill they show would be in. Trouble echoed as flat top Jimmy was wheeled down to his room. Put a bed and locked in. Is Dying Memories A. More of the Times of his. You've when he has friends with flat tops and hope. Along side of Bramham movable hat on Cherry Hill lies flat, top Jimmy with his friends forever. This is Casey Gerald. Reading note for if I fade away. Brown out owed three. By Justin Romeo's Monson. This is to remind you that I loved you way back. You. With your sleepless rivers in strings of power lines titans gathered into formations of tender, flesh and luminous pleasures you. Are always moving. Longing we say because desires full of endless distances. An apartment building. Two boys different shades of Brown. San Above acting his father. Prayers to Fisk. Archiving Brown boy with good hair choked by the parentheses of his show deuce broken horse. Pleased on mistake these notes for allergies. These are the breaks. The summer where I learned hunger and absence of pain. Bridgewater that Slag Heap Hoop Morgan and are oak ridden suburbs. Glimmers of future lives Sash Chaba Dixie may be loose change for seventy five cent Kony's. The big home is pushing bags behind the Skate Park. All the white paint peeling off the dividing wall. The chain link fence we tour back between our crack pavement in the fairway. The brown out that melted five days. How dipped my feather-light body in the toilet to keep cold? The water searching me like so many soft lights. The general man was hollow back then, and I did as I do now sketched your patterns into the margins of my ribs. This was before. Meet me at the corner, wash or your turn to go to. The marathon became slang for the lies we believed before the three am streetlights. The palms crowded with Earth tones before I learned logic, and before we should've read hamlet lowered. We know who we are yet. We know not what we may be. Well learn to be in the middle of bright islands and down bags. Those whispered field trees. Pavement begging to kiss my knees. Writing is essential to change. When it comes to social justice, I've always said. Litigation legislation in protest are required to make change in this country. But one thing that's unstated in that is the need for the artist. and. There's always been a need social change for the artist for the writer, the playwright for the sculptor for the poet. The dancer, all those creative outlets are necessary, and I'm concerned because I really don't see the artist's role in this the way it should be in I. Hope is rising up. I remember playing music by by Wynton. Marsalis and after his father died, and you can feel the emotion in the music. We need to have a musicians. We need to have those people who can speak to the soul and spirit in hard of what we're going through, and I'm hoping that we have a national or international memorial. That that gives us a chance to grieve cry to have our our motions expressed, and that's what the artists brings to the table as we go through social change, we've got to have the artists there, and that's every realm of art in I. Look Forward to seeing how this plays out. If I as artists hold on suggests. George slowly in thinks seriously out. Everything. That's implicated all happened. I think. A Lotta stuff gets revealed, but why Brianna Taylor. Doesn't come up in a way that she. Should. You think about why we would have a lot of these same conversations when Freddie Gray Michael Brown Gardner. Why we have the same conversations. The truth is equal Brennan names down. In the names for me a marcus for the weight. Data can state balanced. Carey's they out, Marcus for like dwayne. Do you fear, but likely Assad not. That's not what's happening. Faith for the. Sanctity. Democracy you don't mean. For, the ability for us to go on as a nation because we haven't been able to figure out some fundamental thing, that should be true. Which is? You should not be murdered. Don't an arrest. Period. He should definitely not be mertens joining arrest. It you should never be locked up and I it's. Interesting, because I don't I, don't really know how art speaks to any exhibiting. For me, argues the Dana like really really really. Forces near slow at our down ARSE. Reading Saturn rising. By Larson's. Artists second day. One hundred twenty days. For, making Gail threats tool circles. It was moved to to way one of the typical dislocations of the Koran return to. And like Shah. Squatting on discarded Plastic Buckets Ryan from the docks. Hunkered down over knows hand and constructed artists astrological charts. Noble shipping instant coffee between streams chatter. At a floppy cameras, weighty tone spread over his name's. Did birth seven of Ember Nineteen ninety-two. Eighteen hundred three hours. Sunshine. concentric circles and triangles to form in the yellow light of the desk all. After three nights of work, Nova, put the pencil down and proclaimed. WHO has confidence? Next visited the whole three months. It's not an action. As a hole in the ground. Now, oh? With could be solid as a shelter were close by. Many considered convicts animals. Burrowing tunnels. Graze all. It allows the body to decompose in darkness of south. A hole is also true. Something, you stumbled. Can't. Body orifice. Tual function is often refer a whole. Mouse. Pushy. National. Or medically we call to mind REFU. She was holistic purpose sexual. A retreat were prisoner rotates. Becomes! Many think of being in the hall as being in debt in for an inmate's dozen tail. Because you lose your good chime in your work runs in your job in your status recurring test. You kept artists in low spoon jobs when we make up the difference. NERVA. Already on the cosmic. Think seventh as a black hole which there is no skiing while he prefers to put more emphasis on the event, Tyrrell's. With point to no return. The moments leading up to cross. Artists ran away from home which chew. Didn't will you were on away? That's what you WANNA. Call hiding in the barn typical. Recall into narrow deutz use. An empty horse. North Wall Mexican, food. Is Foster. Parents no longer kept horses. There was nothing in the bond except driving a store implements retracting. An old truck and she. And White you snuck into the house after his foster parents since asleep, we get something to eat. To whole gays in sprint in the cramped. Moldy, small Bill will kind of true. Never Long. Images. In the kitchen table we'll discussing we think about the scars INS choose from cigarette goes is rumored ones given. That was very clear concerning. The policeman in sadder. chillier nature of his Twelfth House in its worship to is full. Can Long periods of isolation. Explaining the wise still left US warmer. Wow. Once she. Artists went to the library with Supernova and pour it over coffee table books on the cosmos, color photographs of Mars and seven. Planets Nova claimed were giving him all his. Nobody was inclined to look for influence from the outward to in. Artists License? Each ours charts out on the table and used a pencil indicate the more efficient positions. Saturn on the ascended in opposition to the sun, several house, ours precisely into two square to both and Hoodoo. Artist himself as Richie Award. She will be imagined nation. Over overhead red hair, green els. toenails black is forbids. With by. In the fire sign of meal, metabolism runs. I and you will switch these. Profusely. Nova Sam was Taurus. He was. A builder of houses a foundation. Was a woman man's bonding. The way he put each day was a simple. It. Each month each year. Decade each, lifetime. And were natal charts. Through. Trick named find will pulse. Only down in the secluded shower. An isolated era area coal-based tall. Array of showers sanction wooden benches. Or offices in breath mall. St- and Brew Me Tess Girls Still Waiting. Move on US while recline Kohl's to our. Children live in a house trade a mile away expression when? Dirt area for one which are very spy and large oak with ropes rings. Start from lower grandch-. Ernst Park bargain pushed teaching. Warren girl. Earned swing. Artists was to hand each garment to an officer as he removed. Officer would then examine the garment and Tuskegee flow. Dr Cokely's late afternoon. The voices were near Berating off the walls like. ECCLES hill light above through cloudy Windy showers. June told in, they were cousins. He took the leading remote in Lal Ventures. Each successive. Tell me were able to see his across. Our. Focus on a rust colored waterson corners stall a raw shock, beetle-shaped facto stretching from the ceiling to a point above the mock. He lived in the field into the barn and suggested they play a game. Stand up on the work. And remove their clothes. He received each garment from them as they removed. Plainclothes clothes droopy facial mouth slightly open on time. Initially mistook the burn scars for to. The officers made a catalogue. HIS TATTOOS! Children's bounced sign. ME. Stepped back. And extended his hands. Find the energy. Levels were very. Fluid curving abstract lines and circles composed black ink and bare skin. Connect a highway interchange, rebrith, golf, or lay, straight or twirl into spirals. Artists step forward and placed his. Flat against their genitals. Left hand on the gory. Is Right on the earth. Energy ranch whose arms shot up and down his I. Batch splash on the work. That's beside. Children's stared straight ahead the whole time. And didn't. Chat! twos are all the peace. Connect, everywhere some other. They are images Zuberi words that will devour his clips once he's Tan. A warm summer night dark rain clouds. Strings of bare bulbs, larger lights, circle the tent, the packed columns of the congregation swaying. As. The. Sheet. Lighten scribbled crossed clamps. We Owe Gospel songs well into its course. The congregation on their feet, clapping, following the pastors lead on stage. Paste round pumping his arms. Microphone, court, Singing, lead and shouting. A. Discount Rainstorms sideswipe. Cool breeze, flaps, chant. Pastor headed down the aisle, learning hands on foreheads pronouncing mighty benedict. As the flux swayed and fell backward on the Sun Ass Artists Sandwich between his parents transfixed. Awesome force being leashed. As, you got closer. Mountains being given to the man's reaching grass. Reddish blue energy sparkle on the ends of upstretched fingers reaching. Are never the same. Honest was released for Martinsville. This'll office gave him the job. Park River Son picking up trash. He was too old, Hustle. Jays were long, but there was no rush. Nolan bother him. Yet time to bring the old heads squatting under the plank boards by the bird, Gobi assemblage, a cup of coffee. Spend a lot of time walking along the river. Pretending to. Is Favored. was, to. Hide in, storage. Where we kept along. It was a separate room in the shed. The size of jails. Scars Burn. Would lock himself in. SIP on the concrete floor. Knowing bothered him. Bar. In the darkness beyond the light. Stars and constellations turned like a carousel wherever. On each day the past. Feel shattered wise. Music. Hello! My name is Nicole Xuan Junior, and I'd like to thank pin America's prison, Writing Justice Program and works of Justice podcast for giving me the opportunity to contribute to this beautiful offering. As a woman writer in Felon, I am grateful to give voice to the literary art created by another woman writer who happens to be incarcerated. I am honored to read this poem about women like the ones who raised me. Women like the ones I love most. I! Hope that I give this piece the honor it deserves. Okay, but that said again. This isn't a whole Xuan junior reading prison eulogies by Yvette M. Lewis Sell. The ones who died never mattered much except in here with stories never end because they're to real. Michelle who her girl until she got out and got her own self killed. Stella, who laugh and laughed until that last hit hit her vain. Water thought a tooth would make him bleed to death with that pats. Heart was really that bad. They! Don't make announcements here, but we always know and every time. I can't kneel down for months after my mouth will move the way it should. Is Not me. Never me. Is Always. My name is Louis. J Brown Marshall. My voice this project because we need to end mass incarceration. Whether it's a play or pawn, a speech, a sermon a book. Whether or not we put our voices in protest on the streets or in social media. We need to do everything we can to shed light on this mass incarceration of individuals tearing apart families in communities. I am a playwright civil rights attorney? I M accustomed log professor in an offer. Every platform fine which I can give my voice to ending massive frustration. I will do so I think it's important for all of us. Do what we can to stop this beast. It's time. Be Laid to rest. Mass incarceration. Must. Paloma newest Chanel Gabriel I'm a poet singer and a health advocate from New York City Brooklyn and it meant a lot to me to be a part of this project one because it was a lot of fun to do, but also mainly because it allowed me to be part of the process of uplifting. The voices of people that allowed get looked the creativity that exists and. Believe that all people have stories to tell stories create. And that that can help them do any space that they're in and no matter their circumstances, their voices art deserves to be heard. Hi My name is Josie Whittlesey. I contributed to this pen. Project because I believe wholeheartedly in the. Benefits of which programs and Having an opportunity for people who are incarcerated to express themselves anytime that I can lend a hand in helping that expression on be more fully realized I'm going to do it. By a short play by Sterling, Thomas. Characters. A early Thirties African American in year ten of a forty five year drug conspiracy sentence drives to live by her own moral code at doesn't trust the system. Kayla mid twenties, Caucasian a recovering drug addict, serving a four month sentence for trafficking illegals naive to the prison. Always sees the good in people and searching for a friend. The guard man late forties, indifferent to the system works for the prison because he couldn't get a job anywhere else and only there to collect a check. said a two man prison oversell during the time of mass incarceration in America. Prologue. Sometime, in the millennial. The lights come up as kyw's his quietly in the cell reading over her legal paperwork, plumbing and wrapping to beat inside her head. kyw Is a stunning woman, was become a hardened prisoner and believes the system is meant to keep all black people captive. She's been handed down a short thirty five year sentence for conspiracy to sail crack cocaine. Her family has deserted her, and she has no one but herself. KYW has been waiting for the United States marshals to pick her up for two months. KYW has made the sell her home in hopes, things will come and pick her up any day to take her to her designated prison. Her hair is pretty fast, and she wears her prison attire. Extra bagging. Her diction is Chris and she is educated. Act One. They say history repeats itself I stayed with sleighs Ben with slaves. Now they just rearranged on the shelf I was birthed into a system designed to fail while the find success. Only time will tell I remember. When I was a young girl, right led us to my mom and dad in jail. You back then that I was up next to sell. A repetitious cycle from generation to generation I guess it's to be expected when you black and living in the most incarcerated nations. A loud buzzing sound. The Guard in Kayla Enter and stand at the front of the cell. Open Cell Eleven Kayla, a frail woman with blonde hair and bright blue eyes. Dan's at the door, holding her bed, caught and jailed clothes in her hand. Kai doesn't turn around and Look de keeps nodding your head to her own beat, a loud, buzzing sound and the cell door closes. Looks around disturbed by her atmosphere. I'm, Kayla. Here. I don't care who you are. Don't bother me. I won't bother you. Stay on your side and I'll stay on my side and we won't have no problems. That's your side right there. Make sure your bed is inspection ready by seven am. What does inspection ready me? They'll tell you. This is your first time being locked up ham? What I always want to give me the new one look. I'm not a friend I. don't care about your problems in a damn show. Don't care to get to know you I'm not sure babysitter your prison, mom, cousin or sister understand I'm GonNa tell you these rules one. One time one time only you don't get it. That's on you. Breakfast is at six lunches at nine and dinner at three. We count three times a day. They set up rules, and then they wanNA follow them themselves I. Don't talk to the police so if you do, you might as well get asked the move right now because I don't tolerate switches understand. That day is on Wednesday if you get money and don't expect me to give you anything yonder did nothing for us, but take from people, so don't expect no handouts either. Oh Hell. We go have no, no, no, no. You crying, there ain't no crime in the Cell Dryden. Right now. God Guy. Why can't I would just get someone who can do time? It's hard for me. And you don't think it's hard for me got saying that. To. Get through this. We from my family and friends and my daughter. She needs me. It's my fault. Stop Crying Stop Crying Stop Crying Much time you got. Four months. Four months. I got four months. Trafficking illegals across the border. I don't even know why I did it. I need the money and it seemed like a good opportunity at the time. It's a little extra cash in my pocket to pay my bills and my daughter's school close. I'm here just because I need a little extra money. We all in here for just a little extra money. The kingpin SNITCH and they get less time. They rat on the little people in the prosecutor shows favor What am I supposed to say what I don't know nothing? He didn't tell me nothing. What am I supposed to say? Makeup names? Makeup lives like he did frame my. My own people just a take the heat off of me. He's already home now. Living his life in his happy little house and I'm here left to rot away by a capitalistic system that throws my people in the death chamber. Every time they get the chance with conspiracy. They are the conspiracy. They don't know everything they are not God. They tried to play God, but they are not. The crack laws were made to oppress us to hold down at throw a under the jail cell. They fled the black community with crack than sentence one hundred to one versus cocaine. That's because cocaine is the white man's drug. We can't afford it. It's too expensive, and then they're mad because I went to trial. Isn't that crazy? I get punished for my constitutional right for them to actually do their job and be the burden of proof I get punished. Signing no deal for something I didn't do nope no I'm GONNA do my time? I'M A- do. Lock my body, but they can't came to my mind I'm still free desks. You're locked up and you can't be free. I'm still free. I tried crack once. I didn't like it. Heroin was my drug of choice made me forget about all the bad things happened in my life. Home. Even they're trying to change. The laws now is because it's affecting the white people that is a hell of a drought, and it's everywhere all through the trailer parks in suburbs. That's the only reason they care now because it's their children getting hit with five and ten bits. Oh, now it's the problems now. It's an American epidemic. How much time did they give you? Forty five years. The guard interest in walked by the cell. Lights out. You. Inmates can talk tomorrow. The lights fade out on the sale. Kayla Kai. Lay Down in their bids in silence. Payload begins to cry again. At to. The lights come up on the cell Kayla is sitting in the bed with her knees to her chest, rocking back and forth staring off into space. her-heroin was raw has kept her up all night. Is Eating. Food off of a trae Taylor trade is sitting untouched on the small table. I looked over at Kayla and shakes her head and continues to eat. You're not gonNA eat that. Hungry. You going to have to eat something five on yourself is GonNa get you put in, say. What say Record Gatien? The Shoe Special Housing Unit where they put the crazies in this niches. I'm not crazy and I'm not a SNITCH. On just not hungry. Why are you shaking asleep? Last night almost punched. Do Athletes Somebody within here last night? The way will flopping around like efficient screaming like you had a demon in you. What's wrong with you? The medicine I take me bad nightmares on I'm still withdrawing from heroin. Why do you all do that? Do what that poisoning of Ati I don't understand. If a drug makes you sick, just come off it. What's the point? Don't you? Do Drugs make you feel better not worse? You never did drugs before. No and I never plan on it. Would you were here for drugs right? No, I'm here for conspiracy to sell crack cocaine, and because I wouldn't snitch out my boyfriend's family conspiracy the easiest thing for the feds to get you on because they don't have to prove anything all they gotta do. Get One person and informed or Snitch to say they saw you sell drugs or heard from somebody that you sold them drugs and they can convict. I never touched crack a day in my life. I was scared of it. Daddy was addicted my whole life and what he did to get a never wanted to be him, but growing up where acting from selling dope is the normal way of life is like selling tires and people always the tires. I knew my boyfriend's sold. It didn't think it would affect me. I didn't think I would come to prison for him. Selling Drugs I was in school I wanted better at out of the hood out of the life. But how was I supposed to do that without money to pay for my books or to keep a hoof over my head? It's an oxymoron to be black and try to live the American. Life Out of school educated then you'll get a better to have a better life. You can move into the neighborhood with the police. Don't roam the streets harass and everybody a place where you don't get killed for just walking home from the bus. Stop from a dude up the street or a racist pig cop mad because his daughter likes blackboards. Tried to do right. The opposite of what I witnessed everyday tried to be different and I still ended up in prison. Still fell victim to the game the system. We didn't have money either show why it's different. It's better to be a poor white, poor black in today's society, the system designed for us to fail. I don't know how I'm. GonNa, make it. It's so hard. I can't do this. Come on here. We go again with the tears those to stop the judge from sentenced to prison, you go home and less than one hundred twenty days. How can you cry about that? I would sleep one hundred twenty days a hundred and twenty Dave and a wake-up. But you don't understand. Don't have that kind of time I don't understand. You can see light at the end of the tunnel the light. It's right there for you. If I don't get an appeal or law passes, I will die in this place. And you WanNa talk about time you stand in the courtroom here a judge. Tell you forty five years for something you did it, do he? Says will stay your black and your life. Does it matter so do this town and make the best of another black person off the street. One less crack baby gotta worry about on the streets. Robin, all the good white ladies The prosecutive! That's harmony. The judge all of them in. An academic done railroading you upstate Horta the feds. They all go and have lunch and discuss their menial labs over cocktail inexpensive country club. Not every white person is racist. I'm not racist. I got black friends Mexicans. You're missing the point. I know that everyone is not racist. I'm not racist. I love all people. This country is racist. A systemic oppressive device console the manipulate the minds of its inhabitants. They flash the lifestyles of the rich and famous on TV. Given US false hope that one day we can all be rich, but not if you live in the hood, the only way to get money in the hood is the sell drugs, but in the white school they get the best of everything that make you want to go to school and learn they make the atmosphere conducive to learning. It's deeper than you can imagine. Kayla think. Have you ever asked yourself watch how molesters get less time than drug dealer? Or why they are more minorities in prison, we account for less of the population in America. Oh, I guess not. That's because you never had to. have been in a cell with the woman who let random NC naked photos of our two year old daughter. Do you know how much time she got seven years seven damn years? Don't do five. Get out and live her life while daughter is left to fend for herself in the system. That doesn't give a damn about her. Never looked at it that way. I would never do that to my daughter. I hate people who touch on innocent kids. You can't blame drugs for that. That's just wrong. You cry about four months. You'll be home. Which is daughter doing whatever you want? I'm stuck here. A sleigh to the system, a slaves, a new slave masters degree, working for free living in a cell eating slops, just hoping that one day I'll get some constant survive. My mom used to always say let him have wisdom understand, but they don't understand. They'll never understand how it feels to try and do everything right. The way they want and still end up in a cage. I'm not GonNa, let this time blakely. Matter what I'll do my time how I want to do my time. Okay at the medicine. A, Rich Ryan to get the one I got on the outside, but they told me they don't. Carry that you're so they gave me. The one I would like it. I guess it's okay. I'll just have to do with it. Lord. She has some help. She's coming up blood. It's officer to you me and my job description put a cop out in a medical. She looks fine to me. Tell me, what is your job description not to be wiping up blood, but guard exit. God. I don't know if I can do this. I'm ready to go home. Sorry I don't mean to rub it in your face. Yeah, good the guardless lanes to they don't know it slaves to the system that controlled their livelihood. Every day waking up to counting down the days until they retired. What kind of life is that? Meaningless one with no identity. Maybe his wife left him. I would look at him on. mean an angry. Do you know why they call inmates? Because we are prisoners in prison. No, because we're in an insane asylum, the sidey labels US mentally deranged with social intelligence issues. If we can't follow their man made law. Something must be wrong with US mentally to veer off from the path. That society is laid out service. Huckle to America where there no prisoners prisons, the prisons are called Correctional, institution or reform camps that resemble more like concentration camps. Identity stuff from US label convicts given a new name and Brandon with the number. It's all a part of the game. Try to brainwash. It's a money game to the more image they get the fat of their pockets grow. It's a cooperation, will we? The humans are the stock. The three facts inmates one the one who takes this place as reforming them, but comes friends with the authority. The ones who are oppressing them. To the one who manipulate the system in acts like they want them to act in order to gain rank or position in the prison. And three, the one who completely goes against everything the establishment sands for and gets punished severely for it. Three? And they'll. These prisons are not for reform. They don't WanNa. Help us. They WANNA. Make money off of incubus in bondage. I'm a political prisoner here because I won't conform to what they want me to be. What are you Kayla? What kind of inmate are you? The lights fade out as Kayla. Ponders on questions. Act Three. The lights come up on high in the cell. KAYLA's bunk is empty. kyw wakes up and looks over at the empty bunk. KYW stands up and looks around. KAYLA's uneaten trait is sitting on the desk. kyw takes a bite of the bread. The guard enters. Inmate roll up bed. Whereas, Kayla what happened to Kayla. The one that was here. Oh! She died last night. How. How does he Donnie? I duNno, they said cancer or something like that now roll up this bed. I got another Ma coming. The guard exit. KYW's stench. They're contemplating. Looking up to the sky. A ticking clock is heard. As, the lights fade out on sale eleven. You can get used to anything. To? A. Dreams Dreams. That this. Soon. I. Think twice. This. Is pleased with nuts so wrong long forgotten. Being re. Leave. No. Way, they. Do Grow. A. To any A. Box cures be enough for. A DREAM THAT KANE A. Strong enough. Do Get. Right! To step the. To. God has made. To. Hi My name is Amanda Miller and I'm going to be reading the little prisoner by Robert Town. To fictional piece about a woman, giving birth in prison. And I think it's a topic that could use a lot more attention, so it's my honor to be able to read it for you. Thank you for listening. Okay the little prisoner by Robert mccown. I was one of the luckiest prisoners ever because I donate months in prison, and remember a single second of it. I was spared the hardship in grief most often prison. May sound crazy, but time meant nothing to me. I hadn't been introduced to it yet. Because time doesn't exist in the womb. Yes I was baby number two, zero, nine, three, four four dash zero to seven. I was born in prison. Having been born in prison isn't as bad as it sounds. It's not like. My mother was lying on a steel bunk in a dank cell covered with a standard issued itchy, green, waterproof army blankets, or it's not like correctional officers were standing around with rubber gloves strapped to their elbows, waiting to shake me down for contraband. God forbid bring anything into this world I shouldn't have. Technically I was delivered in a hospital. But my mother was still a prisoner. Being in a hospital didn't relieve her of her oppressors. She had no control. No rights had died during delivery or days after she wouldn't have been able to attend my funeral. This is her story. March, twenty third. Dear Diary I hope you don't mind my calling you diary when you're only a pad of paper, but I've never written to a diary before or Pat of paper and diarrhea sounds more official. It was my counselors idea. I wasn't going to take her advice because she sincerely doesn't care, but when she offered me a free notebook to use, it was enough of an incentive. Earlier my bunk, he said I wish I was pregnant why I said thinking if she says so, she can get a free notebook. I'm slapping her. So I can get a bottom bunk restriction. I did feel like slapping her but I. let it be. I have not only myself to look after now. She's a Ho anyway. She's playing girl and Alpha Unit and one in Echo Unit, and when one finds out about the other, she'll get hers. I'm new at this prison. Stuff have only been here a few weeks, but I've got the basics figured out. Mind your own business and avoid getting sucked into other people's drama, because most of these women are walking tornadoes destroying everything in their paths, leaving behind a trail of broken homes and injured people. My goal is not to become another one of their casualties. Prison is like the board game. Sorry, it's all about making it home without getting bumped off. And I've got two pieces to get home now. I called him today, and after that whole spiel about not getting an abortion, he's changed his mind and wants nothing to do with the baby. I asked him why. He doesn't have a valid reason. Sometimes I question his humanity. I'm not going to stress over it. It'll be his loss. I can't force him to stay. I, saw the prison ob doctor today he saw no reason to remove me from general population, and said Aydin need any prenatal vitamins. Was My first slap in the face with reality. I'm bringing a child into this world from President. I'm doing it alone. May Twelfth. Dear Baby. I'm not calling you diary anymore. It's not as personal. It's like talking to a ball or my punky. Swim calling you baby. I can sense you now inhabiting me. Borrowing from me. What nutrients are available Zapping my energy? It's okay though I wish I could give you more, but I can only give what I have. I'm showing some, but if you didn't know better, you just assume I put on weight from the starchy carb loaded prison diet. I spoke with my unit team today, because my due date is long before my outdate, foster care was the topic of the day. Don't want to deliver you into the hands of the stranger. I'm sure the state would select a wonderful couple. Good people, the type of good people who won't want to hand over the adorable baby. They've nurtured all those months to a stranger. An ex con. I wouldn't blame them. It's a two sided coin. You never dream of this type of situation. Until you're in it, who would think that anywhere? In the world especially America, it would be considered humane to separate a baby from its mother against her will immediately after birth. Their excuse. I was in possession of cocaine. This is their justification to separate mother and child. I could understand if I was a cartel member, responsible bringing large quantities into the country or a major trafficker, moving pounds or onces from state to state into the communities, but I was a petty dealer and user only looking to support my own habit. I was just a plain tax paying American citizen with a drug problem. Punishment is the only acceptable answer, a casualty of war, a war as senseless at Phnom a war on drugs. I am a POW. July thirteenth. Dear baby inside me. I decided that baby was too general a term so I'm now calling you baby inside me. It's more intimate. I keep thinking. They're going to come to me and say you've been humiliated enough. Surely you've learned your lesson after all you're pregnant. Giving birth is sacred. It's what continues our race. It would be disgraceful to punish a pregnant woman for such petty offense the sides. It was only a little cocaine. Not, totally sure, but if you're a boy, you'll be Andrew or Paul and if you're a girl, you'll behavior Kaley. I've been watching the call out cheap for medical appointment but nothing. I'm beginning to wonder if they've forgotten us. Good night, my love. September tenth. Dear Haley. Can you believe I spent my entire second trimester without a checkup? One, trip to the warden at mainline settled that. have also got good news. I talked to my mother into taking you, so I don't have to fight the state to get you back from foster care. It's such a relief, but also I. Worry because my mother's an alcoholic. And again she raised me and I'm still here I'd rather you be with her than strangers? At least I know she'll be delighted to give you back and we'll always have something in common having been nurtured into this world by the same woman. Will. Be Sisters of sorts. was scares me. The most is that you won't WanNa. Be around me when I come home. That you'll be so attached to my mother that you won't want to come with me. I'll be the stranger. I didn't want to see with. My only solace is you'll be too young to remember any of it, and since I believe, everything happens for a reason. I know that when all is said and done this prison experience will have made me a better person. Allowing me the opportunity to appreciate the things in life, people take for granted daily, thus enriching the quality of my life. The time will come for us to part, and the days will be long and the nights dark, but you'll be the guiding light at the end of the tunnel. Could Night Sunshine. November twenty six. Dear Haley. Today's Thanksgiving. I knew I was going into Labor before it actually happened. I had been having minor irregular contractions all that weekend. I knew you were coming, but I was trying to hold out as long as possible because I didn't want you to leave me. On Sunday night I had a dream that I gave birth to you in my bunk quietly. Only my bunk, he knew. We were passing you back and forth from top bunk to bottom. You're laughing and playing. We hit you during count and fed you. Reese's peanut butter cups. At. Daybreak my bunk. He helped me stuff you back inside of me for the day. And I burst you again at night. Strange dream, indeed. If only it were possible. I went to sit call that Monday morning. They walked me to rnd dressed me and cuffed me at the hospital. When the doctor told me I was definitely in Labor I started crying. I was losing you and I was totally helpless to do anything about it. The epidurals only covered the physical pain. At least they uncuffed my hands after shackling me to the bed. Shackled to the bed, during delivery I later found this to be a mistake, but I was grateful for it because it offered the CEO's guarding me enough comfort respect my privacy by leaving the room during birth when they weren't supposed to. I stayed in the hospital with you for two days shackled to the bed the entire time. I was shackled, pulled and watched during bathroom, use and showers. I barely slopped. I didn't want to lose a single night with you. You're the prettiest baby I have ever seen. I still can't believe your mind. However, it doesn't feel so. Giving you up was the most difficult thing I've ever done. It was like saying goodbye before having a chance to say hi. They wouldn't even let me see my mother. The nurse came and took you to her. I ended up having to hand over to a stranger anyhow. I was taken back to the prison and dressed in. The only relief was being unshackled. A never been shackled for so long time ever. Could still feel the phantom shackles hours after they'd been removed. My mother brought you to visit me at the prison one last time before travelling the five hundred miles home. I laid in bed for a long time. And cried and slept, cried and slept. It felt so light without you. Devoid of substance I was nearly floating. Dr Pressed me to consider antidepressants as though the cure could be found in a pill. How about letting me go home? That's the cure. My Mother's journal stops there. This is Nicole Chalon junior reading ravenous by Caroline Ashby. Always run toward the sound of shouting metal, crunching and glass shattering. My mom would wonder aloud where she went wrong in my rearing, she thought one day she would find me in a body bag or worse missing. I'd be lost. My bones lonely bleached by the unyielding sun. I hate hospitals, morgues and funeral homes, although my activity speaks differently. I am the first to arrive. Mom requested only my company. During her final days, she utilized the quiet gift. The feared in me while I watched her last breath in the post. Stop in her neck. Life was clear and sharp death uncovered without discrimination. In the year after she blew with the wind and floated and sunk. In her most private rivers. I attended six weeks. We are all aware of the charade. The cans on the shelf or straightened in hopes it will change the flavor of the contents. I yearn for the day. My pulse would stop and I could be. With my mom. What I didn't see happening. A purpose oldest organization in the kitchen. Products kept an uncapped more flavor to the unsalted and a stronger desire. To live. My name is Adam Faulkner I'm a poet in an educator and I'm honored to be reading the Brilliant Grace Notes by poet Matthew Mendoza. Chose to stand for this writer because I believe that the racial caste system that is mass incarceration in this country presents probably the greatest threat to American democracy, today. And I believe in creativity in education is practices of freedom in that everyone regardless of circumstance. But especially, those whose voices are being systematically silenced has a vital story to tell. and. I feel called to the work of amplifying those stories in whatever small ways I can, so it is an absolute honor, an honor to share this poem Matthew Thank you for the opportunity in. Thank you for your work. And when I read it I should say. That in this moment of hysteria. In Corona virus uncertainty where we're all swinging back and forth between slight normalcy in fear Doom, where we're all scared, anxious and worried about the people we love Matthews Poem Stopped Me Dead in my tracks. At a moment where everyone I know, love some of us for the first time are faced with real questions. Of their own mortality. Their own freedom. Matthew slows. The world down reminds us to take a breath. He offers us an owed to the beauty of the natural world, the mundane the ritual, the jumbled prayer of forgiveness and gratitude, and the importance, good guide, the importance of grace of goodness of finding ways to pick our heads up. Be Kind to each other in notice the sky again. And again. This is grace notes by Matthew Mendoza. Grace notes. If there is a place of grace, it is not here. The side this season will stream. The water does all the things that water does burble trickle, rush and roar. The moments of our days become lives wearing a smooth. We are not river stones. There is no grace here. This is just water. Just like food is not love and washing your hands of the hearts, stains is just a myth. Forgiveness does not flow like water. It's fall. It's always fall now. Leaves are not hands. Still I read their poems. My fingers drift along the frame of the still leaf. I tell the leaf sometimes you are outgoing. Sometimes you are wary. You find it scary to reveal too much. The trees share decades, but their leaves are short lived. Forgotten moments frozen in an orange fire. I practice forgiveness and gratitude and mumble jumbled prayer. As I set the leaf sale. I follow the last glide of its early journey. Then as I stumble over dirt, beer cans condoms. This becomes a mirror of my own life. The stem like. Make an important rudder. The Leaf drifts past a rock and my leaf circles in the Eddie of a near Miss, a boulder. Becomes a matter of perspective. My own hurt becomes the stream. My pain wearing smooth the lives of people I love. I watched the leaf circle circle sink. I go back to the place. I started and find another leaf, and if this one sinks find another. I know that this dream is not forgiveness, or goodness or grace, but it is. The only water I have. I was just A. BIZ! I. Would be sure. Who should side in crowned? And Week REX is moist. Was Eerie you. Must Be A. Something in. ME. Et is so scary. How important! To. You. Need to know me. But I'm afraid if you know. You might turn we. Just! Is Regardless. Grow was that. Must Be love. Hum You See. The. Is. All of this. Last. Touched by. Is What lead. You. For so low. Your friend even. For. This is. That it. Try To. Feel what you feel you. Dare down and destroy. Love. We May. Stole the cans. What is. was. A. Robbie I know if we were in person, this is a moment. When perhaps you would invite us to take a breath. Even though this is a podcast recording. I am sitting the top of Manhattan in your sitting in Queens. I. Still want to welcome to lead us through. A closing breath. It's even harder when tears they're right there, but for everyone listening all over the country all over the world. Held together in the same space of art beauty in love and hope. I want us all to breathe in. That hope. That togetherness that unity across division. An altogether. Right now we'll breathe air. In slowly letting out. Full of gratefulness, full of love full of care. Thank you all. Thank you, robby full of listening. For the art. Of Community somebody words. To use in response to this incredible podcasts at our community put together. My name is Kate's Meissner the prison justice, Writing Program director at Penn America and I wanna take just a moment to thank a few people who helped put this together namely first and foremost. The person whose voice you just heard Robbie, pollock, who is the prison injustice writing program manager at Penn America in so thoughtfully? And artfully and beautifully stitch together all of the contributions. From our readers and writers musicians into the incredible listening experience, you heard today. We also have to thank our pen America Prison Writing Committee. Who Judges are awards every year, but a special sub committee helped curate the readings in this program. That includes Gloria J brought Marshall chess neck, Michael Giuliani Grace Carney Katie. Lasley Ryan de Matthews Amanda Miller Crystalline. And the are you saw on the slide show if you were watching with sourced from a couple of organizations, artists that connection rehabilitation through the arts and the confined. Of course, we would be remiss not to say a very loud and proud. Thank you to haymarket books for partnering with us on this podcast and to you for listening and lending your ears at a time. When people are calling for us to listen, and as doing at says to to use as a moment to slow it down, so we can really see what we're contending with and listen to the voice of of of other artists, and in this case, artists most directly impacted by. The justice system. And I'll end on saying if you're looking for places to get involved in translating this emotion into advocacy. I, it's all over the Internet certainly. But also temperature check newsletter, which focuses on Kobe nineteen impact on incarcerated people, but also expands beyond that to look more holistically the. In history were in, there are always action steps and advocacy efforts that you can participate in at the end of those newsletters that can be found at Penn Dot Org. Works Justice. In conversation hold each other up. That also like to thank our summer, interns broke mcilvaine and tally off for their tremendous effort, transcribing incubating the artwork seen in this listening event. And to Kenya, Emmanuel and Hamilton Berry for sharing their music with us throughout this listening experience Dole, prison, educators, teaching artists who go behind the wall and share, love and art. Thank you all and thank you for listening.

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CRE News Hour 7/12/2019

Commercial Real Estate News Hour

59:31 min | 1 year ago

CRE News Hour 7/12/2019

"From the business desk at st broadcast news this is the c. arina news hour. I'm steve lou. Beckon on this edition of the sierra. News hour will talk with dan paul mirrors c._e._o. Of view see funds about his company's approach to real estate finance a conversation with john seabreeze of marcus miller chap about the controversy over rent control in in chicago a look at how net lease real estate's doing in the motor city with michael carter in the detroit office of s._r._s. Real estate partners and we'll chat with julie chase managing director of public relations for street cents an agency that has an unusual joint venture arrangement with c._b._r._e. We'll be back with the top news stories right after these messages <music> turn earn your podcasting passion into profits the book the business of podcasting describes the business side of podcasting including how to become a professional national podcast. You'll learn about position your clients expertise who podcasting to plus the best business models how to find clients and much more visit the the business of podcasting dot com today. You can't wait for the media to cover your company buzney. You have to be the media. Take advantage of the power of audio and video. It's the best way to showcase your expertise to prospective customers. Let the lupatkin you bet can media companies handled the technical side. We're award winning audio and video producers. We can help you produce podcasts and video programs remotely or in our fully fully equipped studio in cherry hill visit being the media dot com for more information now. Let's take a look at some of the headlines in the c._r._m. Marketplace jones lang lasalle completed its acquisition of h f f one of the premier capital markets. It's advisors in the industry h f had more than six hundred fifty million dollars in revenue in two thousand eighteen mark gibson former c._e._o. Of h f f is joining nj l l as ceo capital markets america's and co chair of its global capital markets board. C._r._e.'s been selected to provide facilities in project check management and related services across the province of british columbia's seventeen million square foot real estate portfolio managed through the provinces ministry of <unk> citizen services. The portfolio consists of a mix of least owned and managed assets includes offices courthouses correction centers and warehouses m._r. p._o. Realty developers and managers of commercial residential mixed use and industrial real estate across the mid atlantic region joined with creek lane capital a national real estate investment management company to acquire thirteen acres of land in river north nashville a designated opportunities zone where they're planning to develop a one point three camilion square foot mixed use project along the cumberland river in the landings primera a leading real estate development investment management firm broke ground on. I harbour plaza development in santa ana california the projects forty thousand square foot restaurant retail office and medical property located in and one of santa anna's busiest areas. It's the first of two opportunities zone developments for the firm in that city construction on the project's expected to begin in the third quarter order of twenty nineteen. You're listening to the c._r._a. News hour from st broadcast. It's news dot com since twenty ten boston-based u._c. Funds as invested in more than one hundred and fifty transactions and two billion dollars of equity u._c. Funds has more than sixty five employees and describes itself as a goto provider of sophisticated capital solutions. It has a primary focus on multifamily investments but works with clients to develop financing solutions across all the sectors of commercial real estate. The company's founder and ceo dan paul amir was also the co founder president and ceo of potomac realty capital and originated three billion dollars of various commercial real estate assets. He's been in the real estate and financing business for more than twenty five years cultivating strong relationships with both leading senior lenders and real estate entrepreneurs dan. Thanks for taking the time to talk to us about u._c. Funds quarter steve so tell us where you're at you. <hes> you've got a hundred and fifty transactions in two billion dollars of equity under you built in the last nine years. <hes> what do you see going on in the funding market and what are some of the trends are keeping an eye on what we've had a really great nine years and <hes> very successful platform where <hes> really on the verge of tripling in size it raising more capital title that <hes> you know very ample capital now but raising more and we've got a phenomenal team of professionals that have been with me for are you on average about thirteen years so we've got <hes> yes <hes> twenty year veterans and <hes> ten year and then in between so <hes> tremendous experience and we're looking forward to growing and <hes> you know it's a competitive market but where we're very experienced and <hes> <hes> we think we're one of the more is not the most sophisticated financial allies in the industry. So what is it that you do differently from some of your competitors you. You've been in the business yourself for twenty five years plus you know i think there's a lot of different touch points to answer that question. <hes> you know the first one is. I think we're a reliable lender. You know we we do a lot of work up front and we're quick on your sizing up a deal on getting a term sheet together and <hes> relationships matter and you know we <hes> collectively. We're very cohesive team. I love what i do. I want to be doing this forever and <hes> you know i signed. I literally signed every single term sheet. So that goes <hes> goes to reliability liability and you know that's <hes> that's a key point when we are measured against competition where it's typically <hes> you know a junior or middle <hes> level sales guy that finds a term sheet and then they try to figure out how to get the deal done you know i'm the voice of the the credit committee committee and <hes> we do a lot of work front and and signing that term sheet makes a big difference <hes> we also have all the key disciplines of the lender under under one roof and that's different too and that includes our servicing company so when we talk to <hes> sponsor bar customer and we tell them yeah you know there's there's one phone call that goes into your central headquarters in boston and all your answers. You know come from you. You know there's the decision makers including you know the the processing of getting money in their contractors scans which is a draw draw process that really resonates with our group of bars which are typically <hes> the best most entrepreneurial ours any industry so what are the most popular kinds of financing proposals. You're seeing these days. What are people buying. What did they see as the hot spots for investment and how are you approaching helping them. Make those investments well. We are a one stop shop for commercial real estate capital solutions solutions and you know in in english that means <hes> we we land on all the different <hes> real estate types which are comprised of the multifamily sector in retail retail and <hes> and land and industrial so <hes> and we also provide you know short term transitional white bridge loans which are first borders lows. We'll june mezzanine financing preferred equity equity roundup destruction loans and <hes> through our trading desk. We also provide long-term permanent loan solution so we are truly a one stop shop for commercial real estate capital solutions and now it depends it depends what deal comes in you know we <hes> we can provide a creative alternatives of financing <hes> source for the for our bars. Are there any particular sectors that you like compared to others <hes>. Are you focusing on retail retail. Are you more interested industrial. Which ones do you like well. We're <hes> we're known as a relationship lender so <hes> whatever whatever whatever the customer needs you know we will put together your creative capital solution for it but <hes> our goto product type you know for the last <hes> are twenty years in the space has been the multifamily sector whether it's ground up or you know transitional white <hes> whether it's <hes> adaptive adaptive reuse and urban downtowns throughout the country where the lineal live work and play multifamily is <hes> most most desired asset class for us and therefore the most aggressive in that in that space but we finance pretty much anything. Are you seeing more of a an interest in the mixed use the retail and <hes> multifamily space together in those live work play kind of arrangements well yeah. That's <hes> that would be mixed concept. That's <hes> you know we understand so multifamily upstairs retail on on the basement. <hes> possibly some some office within that were <hes> your flex plays with office and you know some loading docks this that <hes> yes so we see a lot of next to use your assets in in our pipeline. Everybody also seems to be pretty excited about the opportunity zone program. Are you doing any work in that sector. We were certainly open to. We're <hes> your way. We've seen deals and opportunities zones <hes> if if a deal if a deal makes sense we'll we'll do it but we we have not yet done anything an opportunity zone but that's that's certainly <hes> helping the world world with <hes> with supply. Ill as you look out over the economic environment for the next say twelve to eighteen months. What what are the things that you keep your eye on as indicators of which way the economy is turning or the markets are turning yes so we are. We're a mish lender. <hes> you know we keep keep look on the macro aspects of the market and in your interest rate <hes> changes you know we <hes> we had <hes> some upward movement in interest rates and then some easing in a fairly recently <hes> but <hes> we we're. We think that you know supply-and-demand are fairly balanced. <hes> multifamily sector sector has <hes> a little little more supply than <hes> than we've seen in the past but all in all we think that the macro pro-market is pretty healthy and that <hes> you know we're we're still aggressively. He's putting money out out in <hes> eager to grow and there's ample opportunity in the economy's expanding job we are experiencing job growth and <hes> wage wage growth. You know it's very healthy sometime in the economy. You know that being said you know what <hes> what's what's news is usually what old and history repeats itself and we're. We're would probably going on the thirty ninth fortieth. <hes> you know week of expansion has been a long expansion. You're in our in our economy for since <hes> since we've we've been tracking it so you gotta be wary that <hes> you know where your father along in the cycle and you've got to be careful with the <hes> the deals that you do leverage levels and it will all the same things that <hes> your credit wise is organization should be looking at or their tax policy or legislative issues that you would like to see addressed that that haven't been yet or or do you think things are are moving in the correct direction when it comes to the regulatory environment well dodd-frank bill. Oh has been you know being being worked on right now. So that's a that's opening up. <hes> were you know lessening regulation and that's that's good for the overall industry you know i think that <hes> as a niche lender is some regulation and on the banks which is not a bad thing for us personally <hes> an organization for private private lender like she does <hes> but you know we're we're. We're capitalist. The less regulation and you know i think under the current administration you know the <hes> that's being worked on and i think that's all you know good you know good for our business and and the economy at large we talked about the different sectors of real estate. Are there any particular geographic via graphic regions that you prefer over another or you pretty much agnostic about that as well well. We're a national platform steve and <hes> we'll anna relationship lender so we've had <hes> sponsors that we've done deals with in new york and then they go to florida than houston taxes taxes and then oakland real story so we're <hes> we're active coast to coast <hes> in twenty six days but our folks we do have a focus and that's <hes> that's multifamily <hes> relied. We really liked taxes. Yeah we like <hes> florida particularly south florida. We've done on probably thirty thirty five separate transactions in georgia and we're doing a ground up construction and <hes> right at right outside of atlanta. Georgia were very active in the carolinas. We like north south carolina and <hes> then you know other niche parking like kansas city missouri. We <hes> we we saw <hes> you know. Five six years ago that <hes> there was a lot of <hes> investment in infrastructure picture and jobs and <hes> you know google fiber's was there one of the <hes> one of the first <hes> marks that <hes> that google went to oh and you know we did our first deal adaptive reuse deal. We changed <hes> you know an office building into aaa class multifamily family and over the last five and a half years we've probably done you know twenty five separate deals in kansas city missouri so we get in into a market <hes> <hes> do deals that <hes> others you know can't do or don't know how to do we don't want to do and then <hes> we produce tremendous goodwill in that market we do multiple deals in market so is one of the one of those markets that <hes> the approves out that there is there. Is there anything specific about these markets that make you like them more more than others as it is. It just brought economic growth in those markets. What's driving the interest both <hes> economic growth <hes>. It's yeah it's job growth. It's usually technology. Transportation is a big thing so you know in kansas city they put ari'el line which connected the suburbs to <hes> the urban core brought a lot of <hes> lot of population to urban urban side of things <hes> also you know they're they're a nisha plays in different markets where different lenders don't want to be there and it takes you know a supply of capital out of the market and we'll go in and strategically lend on something that <hes> you know makes economic non-acceptance for us so we <hes> you know it's a multitude things and and really on a case by case basis is how we look at our investment and dan paul mirror is the founder and c._e._o. Of u._c. funds in boston dan we appreciate your taking the time to join us on the c. r. e. news hour. Why border thank you steve. <music> <music> <music> <music> <music> <music> is rent control right for chicago illinois governor. Jay pritzker campaigned on repealing the statewide ban on it and end chicago's new mayor may be a supporter but she hasn't made a commitment lori lightfoot acknowledged rising rents are a challenge facing chicagoans rent controls a national issue as well at the end of february oregon became the first state in the country to enact statewide rent control capping annual increases increases at seven percent plus inflation for nonexempt units in a new report from marcus miller chap more than thirty years of research on cities cities like new york los angeles and san francisco seems to demonstrate that rent controls not the answer to the affordable housing crisis playing out in cities across the u._s. u._s. According to the report rent control has led to reduce availability of rental housing as buildings are converted to condominiums or other uses that are not subject object to rent control regulations steep rental increases in uncontrolled units impeded development that further constrains the housing supply and limited options for households most in need such as young families. The report says affordable housing is really a supply and demand problem and there are solutions needed to address how that can be fixed. John's seabreeze the national director of multifamily at marcus and mila chap john. Thanks for joining us today to talk about <hes> rent and control in chicago which seems to have become an issue. Thank you very much for having me appreciate it. What are the issues. You're obviously concerned a number. The people are concerned about the possibility that regulation and rent control might become a thing in chicago. What is the concerned that people have about it and what are some of the alternatives that people think might work better <hes> very good question yeah legitimate question and this is not just chicago issue. This is a this is this is a topic discussion. That's taking place and a lot of major cities around the country and we definitely have a problem but there is definitely an issue for workforce housing for middle income housing so <hes> <hes> the question is what do we do to solve it. How do we how do we right the ship so to speak and our feeling is that yes there is an issue issue. This is something where we need to address but rent control is is not the right solution and looking at it from a little bit of a macro perspective. What has happened is dad. During this economic cycle job growth has been really primary economic driver and following job growth north has been household growth so just the number of households and the number of households being created every year for the last several arrears has outpaced the number of new dwelling units being being built and delivered the marketplace new new dwelling units being <hes> <hes> multifamily rentals as well as single family homes so what we find ourselves in the situation where <hes> workforce housing using or that that kind of middle income middle income family that is living in an apartment the demand for that. Let's call it b. and c. Great apartments the demand has has continued to increase and the supply is somewhat stagnant bagged because it's it's almost impossible to build a brand new classy. <hes> you know you build say as as it ages it goes through the cycle so so what is what we are faced with is an issue that <hes> just through through economics through supply and demand the demand demand has far outpaced. The supply in that workforce housing mode did the problem with implementing rent control is there's a there's. There's a couple of different things that happened. First of all the cities that have rent control and have had rent control <hes> in the united states are really the cities that end up with the highest rents inch as well so there's there's a little bit of a disconnect there what most economists feel is that reconfigure will will help a select number of people but in the long run what what the net result is is that the amount of new construction <hes> is is going to suffer and then new construction is is that supply that's going to be able to satisfy the demand and <hes> in as as a result it ends up with that lack of supply coming to market you end up perpetuating or even making the issue that you're trying to solve you. You're actually making that issue worse so our approach is is you know yes. We have a problem. There's some education that needs to take place with citizens. Since throughout the state of illinois is as well as i think a lot of the the the politicians <hes> and it's something that we need to come up with a solution but but rent-controlled from everything that we've seen does not appear to be the right way to go so in a lot of the cities in the urban core environments. We're seeing a renewed interest. In developing the live work play model the the millennials want to move into a nicer urban setting and they want nice <hes> upscale l. apartments and things like that and how does the <hes> gentrification of the poor neighborhoods <hes> how so how do you prevent that from pushing people out because of the rising price of the rentals. It's an excellent question and it's a it is a <hes>. I don't know that anybody's come up with a solution. <hes> you know the the t- to some extent people feel that gentrification of a neighborhood is is. It's a bad thing that it it. It's it's bad to see that happening. You know i i don't know what what is worse worse for that to happen or for for no new investment come come into the market right so <hes> that ends up being a little bit of the struggle but the so what happens is investors and not i even you know the millennials that are looking for the live work play you can just be it can be it can be a husband wife with two kids that are both working and trying to raise as the kids get the soccer practice and you know and be home for dinner kind of thing <hes>. It's just workforce housing. Is that middle income housing but there you're you're absolutely absolutely right in this economic cycle. The amount of there's there's been an enormous resurgence in the urban core <hes> so a lot out of jobs have been developed in the urban core. A lot of suburban employers have moved their their <hes> offices or a portion of their employee base back to that urban core and as a result a lot of people are living back in the urban core so as that has happened in court then the a a subsequent rings going out from that urban core have continued to improve and see new investment and a lot of times. It's it's a <hes> <hes> you know in chicago. It's the <hes> investor in he owns properties. Maybe owns in edgewater ravens win and a few years ago he decided to buy property near logan square and and <hes> you know at a at twenty or thirty unit apartment building and and he looked at it and thought you you know what i can i can i can put money into this and i can improve it and and great a better place to live well that works works out well for the investor and <hes> because they're the works out well for the neighborhood because they're they're improving the neighborhood good but you're right. Gentrification is going through that process and improving the property but then the questions where those tenants go because now you raise the rent and and and not all of those tents are going to be able to stay in that property because if you <hes> if you buy that property in and spend you know if you spend fifteen thousand dollars a unit in improvements and put a new kitchens and baths there needs to be at increased rent in order to pay for that so oh that's a very difficult situation and that's something that we have to figure out a way through it but the problem is that if we just go to you know that investor so that that man or woman who like i said they were they were only properties in you know maybe ravens would and and and they'd be sensitive to go into logan logan square and they bought the building and they started doing improvements in and if if now the government comes in and says well we will we will tell tell you how much you can charge for rent and we will tell you how much you can increase your rent every year. If that's the case then historically historically rent control leaves very little extra for maintaining and improving in capital improvements to the property and that ends up being a they struggle as well one of the things that's been proposed in new jersey and i don't know if you know ralph zuckerberg from somerset development he's been an advocate of this is <hes> <hes> tradeoff for increased density in developments in return for setting aside some percentage of the units as the affordable housing rather than market rate housing. Does that make any sense in the chicago market absolutely so one of the things that i'm not. I'm not going to be able to speak on this exactly. Actually in chicago is up as national director over our multifamily platform. I i knew a little bit about a lot of different cities but i don't always know all the details but <hes> one of the things that that has happened and this is really over the past say twenty years is municipalities and <hes> in cities not only chicago but others have have looked at at multifamily and said in in rentals that said well. We're we're not sure if we really want apartments built under neighborhoods. What we're gonna do is we're going to <hes>. We're going to limit the amount of density that can go. Oh on a on a per acre or you know per square foot calculation <hes> we are going to increase the building setback. We are going to restrict the size of the floor plates and we are going to <hes> mandate. What kind of construction materials can be used not construction materials from a structural joie standpoint the construction materials from the standpoint and and in that will make sure that anything that is built in our neighborhood is is is very is very nice. There's that was done with with good intent. The problem is they've now created restrictions whereby the only thing you you can build is a very very high in property right because land costs are so high end and <hes> materials caused by mike quite a bit labor pasta or extremely high so what would that proposition is proposal saying in and that is a it. It's a very good approach is probably one of the best approaches which is relaxed some of these building requirements and allow me to increase my floor plates allow allow me to go higher than x. number of stories that is that is mandated. Let me put as a far greater number of units on this piece of land and then in return. I can set aside. Maybe ten percent of them for <hes>. You know four people earning. Let's say within you know eighty two hundred ten percent of a._m. I which area media an area median income so you determine what that area median income is and then you say okay we will we will set aside you know maybe maybe just just creating a number maybe ten percent of those units for people making in less than a hundred and fifty percents one hundred thirty percent or one hundred percent of a._m. I in that will help out some of that <hes> <hes> <hes> some of that workforce housing pressure now the other side of it is it's easy to look dan go. Hey let's just go. Forty percent of the units have to be that the problem is at that yeah point. You're not generating enough rent to cover the construction low right so that's a that ends up being a little bit of a balanced but i do think that ed allowing developers to increase the number of units. They're putting on a parcel as well as <hes> possibly relaxing some of the other other restrictions that have been put on them in return for certain number of units or <hes> you know may maybe it's a certain number of units his pledges a tax credit over fiber's five or seven or ten year period those into dose of the kind of negotiations that are really gonna need to take place it what it what do you think it is. That's driving this renewed interest in something like rent control in in an era when it seemed like the developers his and the local government officials were sort of finding a meeting of the minds about intelligent planning and what a lot of people call smart growth. What do you think is taking them back to this. <hes> sort of arbitrary approach. It's it's simply supply and demand once again. I mean nobody was talking about rent control role in two thousand seven and two thousand and eight because everybody was running out buying a single family homes and apartment owners were struggling with ten and fifteen percent vacancy rates right so there was no you know back to the supply demand discussion <hes> there was a bit of an imbalance in the supply demand but it's because we had way more supply than demand and during those years owners of apartment buildings just they you know they had to figure it out they had to hang on they had had <hes> they they you know they had to lower the rents to meet the market and they had to try to figure out what it was gonna take to <hes> to keep from losing their buildings back to the bank and a lot of them lost that battle a lot of a lot of foreclosures during that time because the the the dynamics the supply and demand curve ended up a little bit out of whack well now the pendulum has swung all the way back to the other direction and <hes> <hes> the the demand as far outstrips the supply and during this economic cycle the existence or the creation in of single family starter homes which in in past cycles as the cycle expanded people would move out of workforce. There's housing and become first time homebuyers and that simply doesn't work in today's economy because of in large part because a lot of the regulations and and <hes> guidelines that have been put in place after <hes> after the the last recession <hes> you know he's got a lot of stuff within dodd-frank. Frank makes it very difficult as well and they're so so people are staying in apartments for a longer period of time now. That's i mentioned the regular regulatory side. That's one part of it. The other part of it is is a is a social aspect of it. <hes> people are are less. You know previously previous generations it. Was you know you you you have become a homeowner. You have to become a homeowner as quickly as possible and and then you stay in that home for as long as you can't will. Today's generations move around a lot more and they're much more mobile and they may live in chicago for a couple of years in d._c. For a a couple of years in l._a. For a couple of years and then and and two generations ago that was a that would be an astonishing <hes> a movement from around around the country whereas today it's very commonplace so as a result the thought of selling a hub of buying a home and you know making that long term commitment event is not quite as perot problems so it's it's a societal as well as economic aspect of it but with that being said the net result is people are staying an apartment for much longer period of time and that demand just continues to increase in supply stagnant so getting a sense that the <hes> the powers that be are receptive to the arguments that <hes> rent control might not be a good idea. What what kind of feedback are you getting. <hes> debbie who's president of national multifamily housing counselor which is a a trade organization with <hes> that is a very good voice and leader in the multifamily industry. He you know he made a comment that that if you are in favor of rent control your elevator pitch can be done in one four and if you're against rent control you you know it's a little more of a complex since issue you need one hundred and forty storey building to give your elevator pitch <hes> i i think that at first glance if you walk up and down the street and ask people on the sidewalk <hes> do you believe rents are too high and should we implement control. It's very easy to say well yeah. That sounds like a good idea. The problem is that that if you sit down and explain to them the negative consequences control and what are some things long-term that can really happen to a city and to a community into a neighborhood. Most people look at that and say you know what that's you're you're right. That's not a good idea and <hes>. I believe that there are a lot of politicians who are <hes> you know. Maybe they don't have a real estate background. Maybe this is a little bit new to them and it's very easy to go to them and say you know the rents are too high and they say we outright control sounds like a good idea even at that point even if they're looking at them saying you know i'm not so sure controls the best way to go. That's good but we have to work together to come up with solutions right there. A problem does exist we can't we can't put our head in the sand and say that the problem doesn't exist so my hope is that <hes> is that the those in power in the city of chicago are able to understand that the the there there are other alternatives to solving the problem that will work far better with less negative ramifications then rick control. What are the next milestones in the process. I believe another. I'm gonna get these dates correct <hes> but i believe there are a so as a right now <hes> right now there is a a <hes> there is a law in place that states the state of illinois is not not allowed to have rent control and so what has to happen is first of all that long needs to be repealed and and then the question is where do you go from there. What how do you how do you then go forward with some form of rent control <hes> and ah what people need to understand is controls means something a little bit different in every single city rent control in new york is quite a bit different than rent control in san francisco cisco so <hes> in different than rent control in toronto so understanding <hes> in right now. We don't know control means in in in in chicago where in illinois because right now. We're just talking about it. It's almost like a theoretical discussions really really starts with the the question of let's repeal the law so that we can talk about having rent control. That is correct yeah. Let's repeal the law so we can discuss it a little bit further so there's a there's a few dates that are coming up and my hope is that <hes> my hope is that that we're able to explain to people in chicago the like i said the negative consequences of this and dan enough politicians in springfield <hes> look at it say listen. We you know we need to do something but we don't want to. We don't want to enact wreck. There are better solutions to john c._b. Is the national director of multifamily at marcus and military up john. Thanks very much for taking the time. This has been great absolutely absolutely appreciate it very much. Thanks for having you're listening to this cr newshour. I'm steve lubeck s._r._s. Best real estate partners has opened a new office in detroit and they've assigned three new people michael carter and frank rogers as first vice presidents and joseph simmons and associate. They're part of the national net lease group at s._r._s. and we spoke with michael carter about the state of net lease in the the detroit area michael carter. Thanks for joining us on the program today. Thank you for having me so you are now <hes> situated in detroit and you're focusing on net at least what are some of the unique characteristics and benefits of <hes> net lease properties in the detroit area yeah so we <hes> we were brought on by the u._s. Team at the end of two thousand eighteen and <hes> we're eager and excited to get rolling and <hes> you know we were brought on by matt moussavi pat luther from the newport beach team <hes> an effort to begin to grow and help grow. They're mid a midwest presence and <hes> franken. I specialize in net leased investment sales majority single and multi tenant retail retail and <hes> both of us have been in the industry for six or seven years and were previously with a boutique firm here in detroit <hes> <hes> so we've kinda built our careers around i got let loose industry here and throughout the midwest and even coast to coast but again an effort <hes> it mainly to begin do lawson to the s._r._s. Presence here in the midwest michigan is probably off the radar of with a lotta people other than those who are situated in the midwest. What are some of the things that you're seeing in the net leased market so we you know we see a lot. We're seeing a lot of new developments <hes> and in some of the treasury market surrounding some of the bigger cities here in the midwest and we've seen a lot of the capital from wetherby in california and or the east coast <hes> were kept rates tend to be more compressed than here in the midwest <hes> so we're seeing a lot of money that's being being drawn to these markets and that's where some of the developers that we work with <hes> we've seen a lot of success being able to represent them in drawing that capital into the mid west <hes> go out of exchange buyers and that's where the that's the rest platform <hes> in kind of how we're building that is <hes> being able to represent that with the database that's been built over years <hes> especially with the california platform some of the things we're seeing in the east coast markets at least <hes> it seems to be a shift <hes> of investor appetite away from the traditional banks and convenience stores. There's two medical office. Are you. Seeing something similar in the mid west or is it <hes>. Is it different pretty accurate. <hes> you know over the past couple four years. We've definitely <hes> had a lot of success with <hes> particularly. Some of the dialysis units urgent cares dials is being davita. Ada percents <hes> again some of the urgent care in e. R. practices where you know a lot of a lot of investors still fairly quote unquote amazon don proof <hes> and it's kind of become a good vehicle for them to get away from some of those traditional single tenant at least another trend. We're seeing in the east is is <hes> families that perhaps have owned <hes> more management intensive properties like apartment buildings or garden apartment complexes <hes> as we get to the second third or fourth generation of that family they're deciding to rotate out and get into something that doesn't require as much hands on the management by them are using those kinds of investors coming into the market yeah absolutely <hes> i would say that so a lot of the for example we'll just the multifamily <hes> passed on and those investments trading at. Can you know we're still seeing that with. You know there was earlier this her at the end of last year there was kind of an concern of where interest rates were going and you know the ten year treasury got up to the over three percent mark for the first first time and you know a long time and <hes> there was a lot of uncertainty there and then you know recently over the past couple of months you know we've seen a dip down to the two and a half percent mark and it's kind of been hovering there and then now with recent news saying that it's probably going to stick around here and we shouldn't expect any other fed interest rate hikes hikes <hes> you know they'll still be trading those multifamily deals at all-time will cap rates and when they're looking to exchange into something that isn't management intensive and they can pass it on to their heirs. <hes> you know that's our again. Our our midwest market had become a solid vehicle for them to look into up and i got kinda. Put it in a trust. <hes> you know so they're areas. Don't have to worry about dealing with <hes> that management concept the type of asset. Are there any particular characteristics. You're encouraging people to look for in a net lease properties in the mid west. <hes> yes we are. I would say you know there was a handful years. <hes> you know when when cameras were compressed to the all time all time lows where a lot of people were just looking the tenant and the lease and just buying the deal they weren't really looking at the underlying real estate and what that intrinsic value is going to transpire to and then you know in a handful years they looked to the bench. Get out of it and you know they're either potentially at a loss or you know. They're they're deal is is hard to sell and so you know we're we're. We're trying to advise our clients really on the front end to take an extra. Look at where the where the property is and should something happen to the tenant in the future you know what can you do with that piece of real estate. Who can you potentially put in there and dan you know there's never the magic eight ball but <hes> you know being cognizant of that on the front end bearing art any concerns as you look out over the economy over the next say twelve to eighteen months again with with where race brad than the uncertainty there <hes> you know we've kind of seen some news i was just globally that i think is potentially helped our industry and it's kind of <hes>. I think it's made the fed kind of second guessed the raid in <hes> the rate hikes that they were had planned to and now that they've essentially rescinded and again. I think that that's been a really really solid point for our entire industry. <hes> you know going forward especially for the rest of two thousand nineteen. <hes> you know again to keep those rates where they're at and keep buyers <hes> appetites hungry michael carter. Thanks for taking the time to talk to us. Today shaded very much thank you michael is a first vice president in the detroit office of s._r._s. Real estate partners. I will be back in a minute sean. This is rabbi richard address join us for our podcast series from jewish sacred aging entitled seekers <music> of meeting will explore some issues and events that impact ourselves our families in our jewish world at large in light of the current revolution in eiji. The secrets of meaning podcast hud guest airs every friday morning at eight a._m. At jewish sacred aging dot com <music> today. You can't wait for the media to cover your company. You have to be the media. Take advantage of the power of audio and video. It's the best way to showcase your expertise to prospective customers. Let the lou beckon. Media companies handle the technical side. We're award winning audio and video producers producers. We can help you produce podcasts and video programs remotely or in our fully equipped studio in cherry hill visit being the media dot com for for more information street. Sense is a bethesda maryland firm that says it creates brands is people love and places people love to be powered by in-depth insight zand an interdisciplinary approach. The teams at st sense are experts at creating creating transforming and driving consumer demand to brands and places in an unusual twist. The agency has a joint venture with c. B. r. e. group the world's largest commercial real estate services and investment firm julie chase a twenty five year veteran of media relations and corporate reputation management and has just joined street sense as its managing director for public relations julie. Thanks for joining us on the podcast today. Thank you for having me so oh. You've joined street sense. <hes> you're managing director public relations for them. How did that come about. And where did you come to them. From well street sense lance has been a growing entity growing in many different directions over <hes> you know more than the last decade and some of my colleagues in the creative world have come over here specifically krista lewke with the lewke plus they acquired her for about two years ago and prior to that i had chase communications and during that time chris and i would cross paths very frequently <hes> because we both have an expertise in representing commercial official real estate and some residential real estate that would be kind of more or less through mixed use projects <hes> and we would try to share <hes> some of our creative services for those clients because i had such a super strengthen the p._r. World and she had the super strength in the advertising world <hes> so we would work on some projects together together and then once she did go ahead and merged into street sense <hes> she knew that i was making some changes as well <hes> because 'cause i had sold my firm to another firm and then when i came back out of that she knew <hes> i again having sold chase communications then i started to chase p._r. She said you know mr the first time so. Let's get together this time. Come on over to street sense and start having conversations the keeps things. I'm always always a little bit tentative a little uncertain when you're selling organizations and moving in and out of them how does that work and how has that sort of been <hes> i as a feature of your career so for well i mean i think we all know the the best kind of <hes> success you can have is by having very good solid relationships with your clients and as i say very frequently when i'm either talking to a prospective new client or just sort of reminiscent with an existing resisting either my friends become my client or my client become friends so these relationships are very tight and i have clients now that i've had for up to twenty two a years now if you talked to developers sometimes they don't have a sense of the importance of having a community presence or or or some kind of a public image. What do you tell them to educate them. About the importance of public relations in the commercial real estate space. I think the actually more of them do know that now than not <hes> because they've seen colleagues of there's really get smeared if they try to bulldoze themselves so <hes> no pun intended into a new community without having the having done the research and analysis and knowing the sentiment of the community and you can do that quite easily through sheriffs and other community <hes> gatherings <hes> i know many of my clients now go through you know dozens dozens and dozens of community meetings to literally go anywhere from one on one conversations to small setting the large settings to engage that that community and sort of bring them into the komo because the last thing you wanna do is have a community who doesn't know what you're doing and it's that kind of fear of the unknown. That's that's worse. I the nimby really <hes> and you know other major projects. I've known of sometimes even five hundred different community meetings to get there and it's not only assures the community but it actually very good education for the developer who may not have known you know all the nuances of what could be developed so that brings to mind the recent experience at <hes> amazon had with <hes> the abortive effort to locate one of its h q two facilities in queens new york where how do you explain their lack of connection to that community and their inability to to ah explained to the residents of the the value the importance of of what they were trying to do. I think they really dropped the ball there. <hes> i think that that there was an opportunity and i think the politics at play there was focusing too much on some of the the <hes> existing residents in the community who thought it was going to be resulting in terrible traffic. <hes> you know this is the terrible rebel word. We never used gentrification <hes> that it was going to choke off the history of the area and that there was gonna be no good outcome or promise and i think that that's very wrong so i know here. I'm in the washington d._c. Area and when <hes> crystal city now referred to as national landing was selected elected as the site <hes>. I think that was something where yes some people who are local. Were a bit fearful of it. But what we're doing is is accessing the number of great universities that are in the area. We have a lot of technology in place. You know this is whereas a._l._l. Got started many many years ago and now we have school systems that are expanding so that we can actually educate more youths to go into these fields fields and i think some of the other concern over overbuilding and density is false because most of the project is really renovating existing structures sure to a higher and better use and on top of that when people worry about traffic congestion <hes> my thinking is so much of the world is going to you other modes of transportation whether it's your uber maybe a taxi scooter <hes> having a lot of opportunities to have residences nearby to the offices so also walkability and then of course public transportation so now street sense has this joint ain't venture with c._b._r._e. One of the large commercial real estate firms. How did that come about if you're familiar with it. I know you're you're new to the firm but <hes> what what is that relationship going to lead to and how does it work well. I mean you're right. I'm still learning a lot <hes> as i've been over here for. Are you know all of a month now but i think the in the beginning street sense started with a retail brokerage and <hes> as they've they've grown they've. They got further away from that so c._b._r._e. Recognize it. That was there so in our relationship a c._d. I._r._a. has acquired fifty percent of us. The retail brokerage has gone directly over c._b._r._e. Which is directly in their wheelhouse and then we focused more on everything all of the <hes> tools and skills that we have to support a c._b._r._e. Clients so of course we bring in clients you know from anywhere but c._b._r._e. Also has a pipe on a client that they can just would surely refer over to us knowing very well what our skill sets are <hes> so an intern we can also so refer some of our clients back over to the r. e. based on their needs but you know now we have everything from interior architecture to place making branding advertising -tising public relations research analysis. We can provide almost anything as an adjunct to what c._b._r._e. Would like to do to support report their clients and offer that services you're working with clients <hes> in addition to real estate in retail healthcare and consumer goods <hes> what is it that you're telling selling those clients about the importance of public relations and how to choose a public relations counselor or agency effectively well well. I guess in very top line. I often say to my clients. You know if you want to engage with me. Fifty percent of what i'm doing is getting you into the media and fifty percent of in what you're doing with me is keeping out of the media so again it goes back. It goes back to finally calibrating what your messages and who you wanna reach. <hes> you know obviously i do some crisis work as well and that has to be very careful. We want to stop a lot of the bad information particularly incorrect information we want to tone it down and we wanna protect all those people who are in the midst of some sort of issue until we can suss out you know what what all the facts are <hes> so you know more than anything i think that there is a a strong need for a thoughtful and strategic <hes> outreach to the media and to the communities sometimes it's community relations that's more on an internal <hes> mode communicating and then there's the external but the overall <hes> strategy is to make sure that you are telling people people exactly what you're doing making sure it's accurate and just <hes> you know as we be overused word these days but you know you can't get away from it. Just being transparent sounds parent so you're a pillar of the community is a there's a widespread perception that public relations is about spinning and about hiding things from the public well. I think there's good guys and bad guys in any industry and certainly there are people who <hes> bend the truth or as we know oh and all the headlines they read sometimes the truth. Just is not being stated. It's just <hes> absolutely <hes> irrationally place <hes> but i would say that you know if there is a good reason to share your story <hes> there in the real estate estate world more than anything what you're trying to do. Is you know bring in tenants bringing residents bringing retailers help people understand where to go. What's new. What's what's happening and <hes> there's not a lot of spin really in my world <hes> but i do think that in other aspects of <hes> media outreach there can be and that's where you know the the the audience just has to make your own decision. Julie chases the managing director of public relations for street street sense and experience focused strategy and design collective to join us from their office in bethesda maryland julie. Thanks for being with us. Thank you and that'll wrap things up for this edition of the c. r. e. news hour you can send your comments suggestions story ideas to steve at st broadcast news dot com where you can leave an audio comment for us using the voicemail icon on the homepage at st broadcast news dot com. Tom and we tape this program. In studio. A at st broadcast news in cherry hill new jersey join us again for the next episode of the c. r. e. news our next friday eh eight a._m. Eastern time at st broadcast news dot com or wherever you get your podcasts. This is steve beckon. We'll see you out there on the net. Take a good kid.

chicago detroit new york united states illinois michael carter dan paul national director developer boston steve lou cherry hill marcus miller founder ceo capital markets america
CRE News Hour 6/28/2019

Commercial Real Estate News Hour

59:54 min | 2 years ago

CRE News Hour 6/28/2019

"From the business desk at st broadcast news this is the c. arina news hour. I'm steve lubeck in in this week's edition of the c. r. e. news hour will speak with david allison. His pioneering work on a database called value graphics could change the way developers look at demographics when they're targeting the markets for the real estate projects. We'll hear from jay l. Executive the vice president andrew dickey about the hospitality sector in puerto rico which is more robust than you might have thought and we'll have a conversation with heidi burkhart who founded her are woman owned real estate development and brokerage company in new york when she was just twenty six years old. We'll be back with the top news stories right after these messages. Turn earn your podcasting passion into profits the book the business of podcasting describes the business side of podcasting including how to become a professional national podcast. You'll learn about position your clients expertise who podcasting to plus the best business models how to find clients and much more visit the the business of podcasting dot com today. You can't wait for the media to cover your company buzney. You have to be the media. Take advantage of the power of audio and video. It's the best way to showcase your expertise to prospective customers. Let the lupatkin you bet can media companies handled the technical side. We're award winning audio and video producers. We can help you produce podcasts and video programs remotely or in our fully fully equipped studio in cherry hill visit being the media dot com for more information or lots to do this week on the news hour so let's get right with it with our regular roundup of the news and headlines river egede garfield field newly constructed one hundred four unit luxury apartment has come online for sale cushman and wakefield is representing the seller in marketing the property which offers offers the benefits of urban living in a suburban setting brian whitmer of cushman and wakefield is leading up the marketing efforts. It has what investors are looking for such such as the bergen county location that is highly competition constrained. It is new construction and has one of the best amenity packages in in the area. There is also the ability to drive revenue through continued enhancements such as adding amenities river edge was built in two thousand seventeen seventeen is currently ninety eight percent leased it consists of two four story residential buildings over covered parking home. Three sixty five is shaking up the las vegas vegas property management industry with an innovative property management technology. That's intended to improve the landlord tenant arena in a way that's unmatched by the traditional property pretty management model the company bundles a multitude of services for a single fee including management fees repairs maintenance tenant placement and rent loss due to vacancies currencies daniel shock ed the founder and ceo of home three sixty five created the new data and artificial intelligence based model to provide a solution for ongoing issues between traditional property managers property owners and tenants. We are leveraging a lot of <hes> <hes> data science and artificial sola intelligence in order to be able to predict various events for specific property. We aggregate quite a bit of information about a specific property. You like age size location loss time it's mostly renovated other aspects of the property and we are able to crush this data and predict various events that will happen most probably in the future this allows us to <hes> price our service which is all inclusive management <hes> one flat predictable rate which reduces quiet beatle freeze for the property owners makes their investment investment super predictable and hassle-free when unique aspect of the services home three sixty five's guaranteed a cover rent for vacant properties of up to one year and attendant tenant management program to screen in place renters. The company entered the las vegas market in june and it's currently providing services to three hundred properties in the las vegas valley alley following the acquisition of fangio realty in property management. You can get more information at home three sixty five dot c._o. Now let's look at some headlines from the sierra world legal and general formed a partnership with oxford university to develop homes for university staff and students legal in general's future cities business. This will provide up to four billion pounds of funding over the next ten years for a series of projects for the university including the development of new homes for university staff often students and the creation of science and innovation districts with modern workspace and research facilities endurance real estate group d._w._a. Group acquired a twenty twenty eight acre parcel in your county pennsylvania. They're planning to build a three hundred fifty. Two thousand square foot bulk warehouse on the site point be an integrated management consulting digital studio venture investment and real estate firm has completed development work on saint charles health systems new patient tower in bend oregon the tower which opened on may nineteenth includes a twenty four bed intensive care unit and a twenty eight bed progressive care unit and more than twenty thousand square feet of usable space for future future development jim deb leschi will join c._b._r._e. On july fifteenth as global president of project management to leschi was with j. l. l. for seventeen in years most recently as global head of enterprise sales for jails corporate solutions business liberty property trust named sean newman secretary general counsel starting starting july first newman will succeed herman follow who will remain with the company as senior v._p. And senior legal adviser newman is currently liberties senior v._p. And deputy general counsel he joined the company twenty twelve as an associate real estate council before liberty. He was a member of the real estate practice group at the law firm cozinne o'connor h f f is arranged thirteen and a quarter million dollar refinancing for soma sixty nine unit luxury apartment community in somerville new jersey h f f represented the borrower sterling properties group and got the long term fixed rate financing from new york life insurance company. You're listening to the c._r._e. News hour from st broadcast news dot com in in suburbs across north america shopping malls with large outdoor parking lots are being redesigned and revitalized the parking is moved in some cases underground and the land is is re purposed for residential condominium towers and apartment blocks adjacent to an upgraded mall that sometimes completely rebuilt with more stores and more floors main main streets through the complex serve as many town centres with offices restaurants and shops parks and outdoor spaces dot the property making life in these new clusters of mixed use buildings walkable with touch of green. When you add fitness centers medical clinics schools and other amenities people of all ages can live work learn and play without without ever leaving these vertical villages in a new report david allison of vancouver british columbia is identifying the prospect audience for these mixed use what he calls vertical villages the report is called when shopping centers become vertical villages and it looks at the growing trend of shopping centers transforming themselves into a mixed use residential communities to come up with the profile for the kinds of people predisposed to the idea of living in vertical village. David used the one hundred thousand survey value graphics database to extrapolate profiles of people. Most likely to live is remade communities david. Thanks for joining us on the c._r._m. News hour. I'm really glad to be here. Thanks for having me so you talk about the value graphics research that you do as providing breakthrough audience the instan gauge moment talk a little bit about what that means and also. How did you arrive at this. What you call a proprietary predictive behavior database <hes> and then we'll talk a little bit more about shopping centers well. I guess the origin story <hes> is is really very specific to the real estate development industry. I had my own marketing and strategy firm for years and years and years and i'd always written books and tried to find things to talk about that. My clients in the real estate development industry would find interesting and so. I sold my firm about four years ago now and i was getting ready to write my next book. I previous book had been about baby boomers moving out of the suburbs into other single family homes into more <hes> <hes> stock turban environments. We called it the stackable boomer and so i had baby boomers on the brain it was that moment in time when we couldn't do anything except read about millennials. Lenny's this law neal's that o'neill's ruining everything and it seemed to me that these were kind of the same people. The stories are reading. I was reading the millennials what they want what they need what they expect of their lives the same things that the boomers had told me i thought that was route really really curious so i called the research team. I'd worked for my previous books. I said listen. I had this hunch. That age isn't really all that important and can we can we maybe just go out and figure out what what's going going on around this specifically as it relates to real estate developments because we build buildings particularly around age groups this buildings for boomers this one's for first time home buyers this one's for millennials whatever and the data started to come back and it was pretty loud and clear right from the beginning two things first no one wants to live in a building mm full of people the same age and second they would pay as much as fifteen percent more than market value for their condo or apartment then if they don't the nothing they would otherwise as long as they knew one thing that the values of the people in the building matched. There's so became very clear very quickly. That values were incredibly powerful powerful tool more powerful than demographics so we started to do even more research. We got to forty thousand surveys when we started to see that this applied to everything thing in the world beat the b c <hes> it doesn't really matter what <hes> if you understand your audience based on what they value you can be as as much as eight times more impactful in the way you engage with them the way you can influence them in the way you can get them to pay attention to what you'd like attention to networks and beat be as easily as it doesn't to see so how does this apply to shopping centers. <hes> your research is <hes> when shopping centers become vertical villages. I'm and we're now seeing these vertical stacks as you call them a mixed use residential communities that have retail and living space and sometimes even office space. I guess yeah it's a it's a confluence of a whole lot of different things first off. Let's talk about this trend in the real estate industry. You know shopping centres all over north america worker struggling a little bit. They're trying to figure out what how to be relevant in a changing world where online retail is taking a big eating their lunch. <hes> main street is having being a bit of a resurgence and all kinds of things are competing with shopping centers as a way to for people to get the things that they need but when you look at a shopping center just take a step back doc. It's a really great piece of huge land with a large acreage parking surface level parking and then a shopping center in the center so what's happening. We're seeing thing is all over north america. Is people saying themselves. <hes> what if we put a bunch of residential here rebuilt the shopping center take that parking put it underground. Let's add some office office. Let's add some theaters. Let's add some some restaurants. Maybe some apartments and some condos. Let's see if we can build what i'm calling vertical village and use this amazing piece of land in this location in a way that really packs insa density and creates a sense of community an opportunity for a whole lot of the people to live and work and play in the same place so that's happening and we were very curious about who's coming to live at the law <hes> so we went and used our methodology where we we find a group of people who say that the sounds very very interesting to them <hes> we asked him a few quick questions <hes> and then we dive into our benchmark study which is the moment for north america alone is a hundred thousand surveys deep across three hundred eighty different metrics metrics about what people value in want need and expect so this is an amazingly deep rich robust data set and based on those few answers from those few folks folks who said that they're interested in the idea of coming to live at the mall. We were able to break them up into various audiences various profiles now he can help developers and anybody who's interested didn't say no yours who's coming. So why don't you make decisions about how to build and plan and design this place so that you're impacting the values of these folks and you'll be eight times more effective in getting them to pay attention to what you'd like them to do. Whether it's leeson office or buy a condo or rent an apartment so you break the audience he ends down into four profiles. <hes> can you give us a capsule description of each one. Yeah sure there's actually five different categories of people but one group what we call the splinter groups and that whole group is kind of a catch all for all these tiny little groups of everybody who doesn't fit into one of the other big four ones that are that are worth paying attention into so we just kinda discount those guys out of out of the mix because they're just too small to pay attention to but what remains are four very interesting groups. The largest by far is a group that we call the local experience chasers. These folks are super interested in change. They never want to do the same thing twice. There are the people who will rather go to the new restaurant than an old favorite restaurant where they have a favorite boosts and our favorite thing on the menu. Maybe they have a favorite pair of jeans and as soon as that pair of jeans wears out. They're going to try another tiny jeans because maybe it's better than the ones that they've got right now so they're always looking for the next thing because it might be better than the thing. They have right that at the moment so for them. This notion is thirty two percent of the people who wanna come and live at the mall what they're really interested in motivated by this notion of changing experiences experiences so when you're programming them all one of the things you need to be doing to attract this thirty. Two percent of the market is to say it's not going to be the same thing over and over and over over. It's going to be constantly changing. They'll always be something new to keep your interest and keep you excited. They're also very motivated by things like relationships <hes> belonging and and personal growth so educational opportunities for these guys will be huge the opportunity to meet other folks who are also living at the mall and this new vertical haulage. Those are the sorts of things that will get them to do what you'd like them to do. Which cases come live at the mall far more important than the demographic stereotypes that we may have used in the past where we we said to ourselves. We think it's going to be <hes> a mixture of men and women probably skewing towards guys and they're going to have an income of acts and they're going to be this. All all those kinds of things that are irrelevant this group the local experience chasers cuts across all demographic audiences for this particular offering very quickly the the other three groups which aren't as big so. I'm not going to spend as much time talking about them. One of them is called the worker. Hollick investors is about nineteen percent of the market. They're interested in as their name might suggest workaholic investors. They work a lot. They're telling us they work about eighty hours a week and they're super-motivated their values. Values are financial security possessions wealth upward mobility so for them. The whole idea of coming to live here is about status. It's what status who else is going to be living here. We'll be very important to them. <hes> the way this place is portrayed in <hes> in advanced materials where you're trying to get somebody to come and buy a condo or lease space space or get their offices here. This needs to feel like a very upscale place for that nineteen percent of the market. Now i've seen some examples just to dwell on this for two seconds longer where these vertical villages as they're being planned marketed and sold. It's all they're doing is saying. This place is super upscale very staticy. <hes> it's going to be a great place place for you and so they're talking to this group but they're not saying the things that will attract the other groups so they're really limiting themselves to just that nineteen percent of the market weaving onto the other two ones called the creative savers society <hes> these are folks who <hes> sixteen percent of the market by the way these are folks folks who see themselves as really being very very creative. They're motivated their their primary values or things like creativity personal growth also very motivated one of their key personal responsibilities one of their key values personal responsibility which is a a rare value. We don't see a lot of time so these folks really believed leave their <hes> what happens to them in their world and in their day in their life is their own responsibility to look after that <hes> they are saving their money. Honey is a great example. The name of this group creative sabres. They saved their money in order to be more creative. They will do without things in order to fuel. Whatever are there creative. Passion might be so. They're very very focused on their own. Creativity in the last group. Fifteen percent of the market are what we call the city loving environmentalists solicits these folks their core values family personal responsibility. There's that thing again very odd to see it. Come up in two different groups for one kind of product the health and welfare and personal growth so for the <hes> city loving environmentalists one of the little factoid that can tell you about these folks. They believe that <hes> <hes> environmental issues that the planet is facing right now are very much an individual responsibility to fix. They don't think politicians governments or large scale groups going to make any kind of impact whatsoever. It's all about what their day to day. Activities might be <hes> that can help reduce their own carbon footprint at that's how we're going to get ourselves out of this environmental pickle that we seem to be in as far as they're concerned so for them what's interesting about this vertical village concept as they see it as being being a very environmentally friendly way to live <hes> they understand that density is a good thing for the planet and buy lots of being in a very small square footage a squall us small space instead of being sprawled out in single family homes or sharing resources were sharing. <hes> were walking more than we would be using cars. They love the idea of coming to live even one of these kinds of communities because they see it as their way of contributing to what they understand to be an environmental crisis. I think what's most interesting about the research searching the way you break these groups out is how the experience chasers seemed to be the dominant preference the dominant set of values that that people are looking for something new. <hes> did people just live in the suburbs for too long. What what do you think is driving that seeking out the new experience well. It's important to understand these. These values profiles that we extrapolate from the data set just apply to one product or another. There's a large number of people in in the world who that's how they make their decisions about everything all day long. It's not just about this particular thing in fact the what we call in in my book of which is all about value graphics status that we've built the adventure club is one of the top ten most powerful and most aligned archetypes chiefs for graphic profiling that exists out of the hundred thousand surveys that we offer for north america folks who just that's the way they live their lives there. We all know this guy right. I mean he's probably he or she is probably had a series of relationships because some other next relationship might be might be the fun one. They're always out out doing stuff because what they're doing right now. Late nazir's funds. I think they might go do later. <hes> it's just the way they live their lives and the point of our research is that that is a far far more powerful way to target your messages are your product design. Whatever it is you're trying to do to attract an audience if people do understand these value graphic art types and the personal profiles around the people that fit into them you're going to be eight times more effective than if you do what you're doing doing now which is probably figuring out a demographic profile for your target audience and then using demographic stereotypes to try and make your decisions about what are you building. And how are you going to put together. So normally we sit around in a boardroom. We say to each other well gee our target audience eighteen to twenty four year old man with household income of thirty five thousand thousand dollars a year <hes> and so they're gonna like <hes> technology well in fact we find that there are people who technology of all ages all incomes. It's all genders all education levels and people who are afraid of technology of all ages all incomes both genders all education levels that the demographic graphic stereotyping that we're using to build and make decisions about everything in our world is so flawed <hes> that it's just negligible to continue thinking about demographics as a way to motivate an audience so the commercial real estate industry is not known for being on the cutting edge uh of adopting new techniques and new <hes> approaches to dealing with problems that they're comfortable with and they're they tend to be comfortable with dealing with the problem optimal in in much the way that you describe how do you get them to adopt this value graphics approach <hes> and what kind of initial feedback can you heard from them about it well. It's not that difficult once. I can have a a quick moment to chat. I'll give you a couple of quick stats that will show you just how much of a margin of difference talking about here in the commercial real estate world. All kinds of worlds are very interested in facts so first off with those hundred thousand surveys we have in this data set three hundred and eighty different things we've measured values wants needs and expectations. This data has a plus or minus three point five percent margin of error in a ninety five percent level of confidence all of which just means that it's far more rigorous than you'd need for a p._h._d. From harvard so this stuff is is bulletproof so i'm going to pull a couple of quick stats here to tell you how different it is to look at things demographically than it is to look things value graphically so across those is one hundred thousand surveys in three hundred and eighty different metrics that we've measured if we just take baby boomers and isolate them how many real estate projects have baby boomers as their primary a target audience. There's countless. Alyssa seems to be for the last twenty years. That's our favorite target audience. Baby boomers only agree on any of are those three hundred and eighty things fifteen percent of the time sorry thirteen thirteen percent of the time for baby boomers eighty seven percent of the time baby boomers disagree on everything what it means to be alive in emmett so how can you spend money targeting baby boomers when you know you're only getting a thirteen percent rely on every dollar and every hour that you use trying to get into their heads millennials as another example they they're the ones that agree with each other only fifteen percent of the time and we're supposed to change the world for the millennials annuals for pete's sakes. Nothing's good enough for the millennials and the millennials only agree with each other fifteen percent of the time. That's that's really a target audience. That's that's a really terrible terrible. Our ally i've got a buck to spend only get fifteen percent of my audience activated but if we use values as a way to motivate and understand our audiences and tried nine engage with them better we can get those numbers around how often they agree with each other on all those things up in the seventies eighties nineties and that goes across sold the demographic <hes> age groups right all the demographic age-groups gender <hes> we talk about each very specifically because it's an easy one for people to get their heads around most most things start with an age thing but those low numbers like in the low teens they hold true for how much people are similar to each other within gender categories within wealth categories with an education categories. All the demographic labels are the same hardly any agreement any similarity amongst the people in those categories always whatsoever but if you look at those same audiences and say what are their shared values then we see alignment around all these three hundred and eighty different things that we've measured they're up in the seventies eighties nineties so again just to make the silly little comparison if you've got a dollar to spend and you target people demographically without dollar based on the demographics graphics stereotypes were all incredibly familiar with you're going to get a ten eleven twelve thirteen fourteen percent return on investment on that dollar. If you just change the way you looked at your audience audience. You have to buy anything. You don't have to install any kind of new technology. Just change the way you look at the world and suddenly you're gonna get dollars. Returning seventy eighty ninety percent in terms of how much these folks will attentions whatever it is you're trying to get them to do. It seems like it's a better approach because <hes> if if developers already designing a project to meet the needs of these different demographics that they think are interested in that particular are urban experience <hes> using the values approach is gonna just broaden the appeal of the property to different numbers of people. Oh absolutely it's going to broaden the net and it's going to be spending the money in a more responsible way. Let me give you a quick example people as it relates to specifically to real estate. There's this myth out there that somehow young people younger people are more interested in technology and more familiar and happy a using technology and older people. I don't want to say where the cutoff is for. What's young and old but let's say older. People in general somehow are scared of technology gene. Don't know how to use. It and it's not their friend while our data saying that's absolutely false that there's people across both <hes> sets that were just talked about. They're just age based sets who are equally comfortable with technology and people who are very uncomfortable with technology so if you put in some technology analogy and you figure that's limiting yourself to just one age category or another or you remove all the technology because you think that's gonna limit yourself to one category or other you're wrong. Wrong is a slice think of it this way. There's this loaf of bread called your audience and we've been slicing it like we've always sliced that loaf of bread based on age and gender and income i'm and all these other categories demographic labels but instead if we sliced the bread the long way instead of the short way we can find similar groups across all all of those categories that are going to be motivated by those values far more than the demographic stereotypes that we're using with short slices of bread. It makes so much sense it really does. It's kind of a slap yourself from the forehead why those t._v.'s v._8. Moment you sort of saint of well. You know what nobody really acts their age anymore. We run around saying seventy is the new fifty and sixty the new forty. We we understand that. We don't have have to behave the way we used to have to behave at a certain age. There's no social pressure to be married at a certain age anymore. Get promoted a certain age if you if you're a rich sky you don't really behave any differently than if you're a middle class guy but we still use all of those categories to somehow try to understand who were talking to. What's going to motivate them as if they make sense. It's like we lose our minds. When we walk back into the boardroom and all the rules we know about in the real world somehow don't apply when you're in the boardroom because we need to come up with some. I'm kind of description for who has talking to well now in can use values as a way to describe. You're talking to instead of demographic stereotypes that just don't make sense anymore. David allison is the author of when shopping centers become vertical villages and new report based on his proprietary predictive behavior database value graphics. You can get more information. Add value graphics dot com david's latest book. We are all the same age. Now is an inc magazine kazini top leadership book of the year david. Thanks very much for explaining it to us and for joining us on the program. I'm so glad i had an opportunity to chat. Thanks so much. You're listening to the cr news hour. I'm steve labatt. Can the following several crises over the past several years puerto rico's lodging market seems to be poised for a comeback j. L. l. is released a report report. Puerto rico hotel destinations which describes how hotels across the caribbean island have come back online after renewed capital investments economic incentives and strategic efforts of the government of puerto rico and the u._s. Government air capacity to the island will increase in twenty nineteen for the first first time since two thousand sixteen and to meet the demand by twenty twenty about twenty four hundred hotel rooms are going to be reintroduced to the market along with more than eight hundred fifty new rooms currently under development with us as andrew dickey who is an executive vice president with j. l. l. and the author of the report about about some of the things that people are not really aware of in terms of the island's recovery andrew. Thanks for joining us on the news hour of course it here community. We are looking at a comeback in the puerto rican hospitality market. <hes> you have a new report out about it. Tell me what's going on there. What are you finding and what what are the things that people need to know about the hotels yeah so so puerto rico has a market has been you know it's been hit by two main factors on the lodging side. If look over the last two years <hes> i was was eka right major impact in space <hes> obviously a lot of that was media driven win and less actuality of what ended up happening and then the other was obviously hurricane. Maria which was twenty almost twenty year anniversary bursary from their last major hurricane george and <hes> i guess twenty years prior <hes> that being said the lodging market has been i'm extremely stable and it's one of the most stable lodging markets in the united states although there's a lot of stigma but after hurricane and of it's an and obviously i cannot financial and economic position that impact lodging market <hes> or perception of lodging market when in reality is actually performing warming very well you know most people are looking at puerto rico and they're saying devastated by maria infrastructure questionable and maybe not some place that i it would be focusing on right now. What do you say in response to. That kind of perception is is the infrastructure stable enough that it makes sense for people to. I consider going back there again. A hundred percent and and and people have been coming back already <hes> as a february of nineteen the u._s. <hes> federal government should be distributed about eleven point one billion of the fifteen and called fifteen and a half billion allocated for fema <hes> so a bunch of that has has already been deployed from from from that perspective from infrastructure and both type of of <hes> of projects by the end of this year. The total delayed would be around twenty one billion so there's been quite a bit spent already on infrastructure that being said <hes> puerto rico prior was was in infrastructure wise. It was actually very strong <hes> obviously media and things when we there's power grid and some of those issues but from lodging perspective from a guest perspective <hes> nothing here that would <hes> cause any any alarm i guess from from trauma traveller's perspective in your report you talk about some of the advantages that puerto rico has one of which is that it's highly accessible to people wanting to go there and also it has some tax advantages for investors investors from the u._s. and from foreign <hes> foreign locations talk about those sure so yeah it is the most accessible caribbean island <hes> <hes> and so air lifting the logic sector is the most critical poi- point when looking at lodging <hes> so with the most airlifted. It's continued to have strong lift. <hes> it's going to have one of its you know stronger years that has had in the last five years in two thousand nineteen <hes> that being said you also cruise passengers listeners which has been exponential. They've had a great year so we're seeing a lot of rebound on the airline side and and the crew side <hes> in regards to investor that's their appetite in in regards to tax exemptions those types of things. There's a lot going on in puerto rico. One of the biggest disqualified opportunity zones <hes> a majority of the island does qualify and so here's an example of you know in the in the u._s. We have qualified defied zones but in puerto rico. It's it's multi. It's a multiplier on your return. Because what had there's a lot of <hes> tax exemption drills the property tax called nine roughly ninety percent <hes>. There's one hundred percent exemption municipal construction sales tax when you're building project <hes> and then also a lot of your reinvested invested capital which is a big which is a big part of qualified opportunity zones right. You have to put in more than you purchased. <hes> you can get thirty to forty percent tax credit upfront so there is quite a bit from the investor perspective that is not i think is not fully understood. <hes> but investors are becoming more educated on puerto rico as an investment market and we're seeing that in in liquid in the last twenty four months the also right about the extent of the damage from hurricane maria to some of the key hospitality properties in puerto rico when you talk about <hes> how the new properties are <hes> complementing the existing stock <hes> what is going on in terms of hotel development. Is it continuing to grow. Is it going to be bigger than before or do. People need to focus first on restoring during the damage properties yes so as a result of of <hes> maria roughly thirty two hundred hotel rooms were lost. <hes> and i said lost lost not not completely gone but just i in some sort of non operable capacity by twenty twenty ranters debate about twenty four hundred of those rooms to be reintroduced to the market <hes> and and so there. There's two real dynamics here one. If you look at puerto rico over the last twenty years there hasn't hasn't been a lot of supply at it and then we will also likely lose quite rebutted lost quite a bit of supply <hes> from hurricane maria so as a result here's a market <hes> and we're running through this with a lot of the major market the united states supply driven. It's it's one of the biggest impact there's a lodging business and when you're looking at a market that's been performing very well for a long period of time with limited supply and very limited supply coming coming in <hes> it can be very attractive from the investment side so this is where we think we're gonna see start to see liquidity from investors looking in puerto rico as a as a <hes> a very investable market because it doesn't have the supply issues that some of the other markets <hes> had experienced some and again the result of maria as you talk to your clients. What are the points of advice. You're giving them about how they position asian their plans if they're thinking about investing in the hospitality sector or any other sectors in in puerto rico. What are you telling them that. They should be looking for so there. There's there's a stigma that is you know <hes> that the hospitality segment is included in all segments of puerto rico it it could be correlated directly to the economic issues that the the general market and puerto rico generalists having <hes> the reality is eighty nine percent of the visitors to puerto rico are from the mainland u._s. So when you look at the lodging segment <hes> you know. You're basically seeing rooms every night to tenants in theory. Your tenants are almost ninety eight percent or from the u._s. <hes> and that's you know kind of if you look at on the real estate side when you're looking at the credit worthiness of your tenant whether that's in retail office you know tells it changes every night your tenant base but ninety percent of the origin is you is from the mainland u._s. <hes> so i think that's a big selling point is hey from an economic economic perspective. You're not taking local market risk when investing in the lodging side of puerto rico the reality is you're taking mainland <hes> ah you're you're looking at the risk of your tenants which are from the mainland u._s. And that's a big selling point. I think for for investors to understand the lodging space relative to other segments or other industries within puerto rico andrew vicky is an executive vice president with j. l. l. in miami andrew. Thanks for joining us on the sierra news our podcast best perfect stephen appreciate it. We'll post a link to the jail l. report which is called puerto rico hotel destinations report on the show notes page page for this podcast at st broadcast news dot com <music>. We'll be back in a minute you show him. This is rabbi richard address join us for our podcast series from jewish sacred aging titled seekers of meeting will explore some some of the issues and events that impact ourselves our families and our jewish world at large in light of the current revolution in eiji the secrets of meaning podcast airs every friday morning morning at eight a._m. At jewish sacred aging dot com today. You can't wait for the media to cover your company. You have to be the media. Take advantage of the power of audio and video. It's the best way to showcase your or expertise to prospective customers. Let the lubec in media companies handle the technical side. We're award winning audio and video producers. We can help you produce reduce podcasts and video programs remotely or in our fully equipped studio in cherry hill visit being the media dot com for more information as has one of the only women brokers and developers in the new york metropolitan region heidi burkhardt the president and founder of affordable housing brokerage firm. I'm dana real estate has become a staple in new york city's affordable housing industry over the course of an eleven year career at dane. She's facilitated. Take the closing of tens of thousands of affordable housing units and generated more than two billion dollars in transactions in two thousand nineteen alone. Heidi's closed fifteen deals. She founded the firm. It just age twenty six. She's become perhaps more well known for her advocacy efforts for affordable housing including raising awareness awareness and educating politicians residents and others about its benefits. She's appeared on local television and talked about affordable housing in forbes the huffington in post crain's city limits and the real deal among other regional and trade publications heidi welcome to the news hour happy to be here so you founded your own brokerage firm in two thousand eight. I think it was why did you set up your own firm and what made you focus on affordable portable housing in the new york metro area s._o. Actually came here in two thousand two twenty in stanford and then i came started in real estate in two thousand and one i was actually another brokerage company for a while and from working from their two thousand three when i turned twenty one to two thousand dozen aid is basically time for those at eastern consolidated and out from that ten years when i actually specialize in horrible housing and then two thousand eight ages from the luck of having great friends and peers in the business mentor is someone like deborah amerongen and adam still in charlie gendron scott jaffe ale pushed. We don't wanna start my own company as better gross for me on the you know i was pretty naive at night at the time being only twenty six so i was lucky to have such strong friends the peers and mentors in the business that something more than me on at twenty six years now i was pretty humbled by then after my first three years of making only five thousand dollars base discovery by i three years each year on so that humbled me pretty south so you know having people than that you could do better undo more that's how i actually start my own company and then from there i stayed with my initiative affordable housing night developed at eastern and just kept on trying to grow that took me a while called understand how to manage people <hes>. That's always something that happy to talk about. There's ups and downs in that regard but you know at this point ten years later based on actions in eleven years. It's you know i finally feel settled works a lot of growth on there's been a lot of ups and downs but you know from now. It's been pretty exponential in regards. It's the growth that we're seeing so it's pretty to see you know how we've grown and just niching affordable housing and we've branch off a little bit from there <hes> but my big thing is you know making sure you start a company and me trying to advocate more. You can actually have it something that does really good for the community and still make money because a lot of people always think you have to be a nonprofit which hats hats off to non profits on from my standpoint. I wouldn't want all that regulation constrains. You restraints you from <hes> you know. Time-wise security costs so happy that you know while nonprofit says i also think there's ways to do good for the community and make money as walls and give back sales does not profits you know once you are established as a for profit company to what was it that made you focus on affordable housing. That seems to be important to to you. You've done a lot of rehabilitation properties in the bronx brooklyn staten island new jersey <hes>. You've worked with section eight housing. Why why is that something that attracted you. The people in our industry where a handshake still honorable on in the housing industry is just a lot of goodhearted hardworking people that are really doing it for the tenants. You know there's agencies are agencies. They're absolutely amazing. <hes> tom individuals and that they work hard as well. You know they don't make as much money as developers. They still have a huge heart garcia what they're doing advocating and undeveloped russia's again. They're doing it for the tendency others money involved but there's a lot of other ways to make money and your reputation affordable housing is everything so if you're not a good person and you're not gonna stay in it. So why is it that is so the old school way of just a handshake means the deals and i think that's what drama <unk> drew me to it especially coming from ohio and having those midwest values you know it's something that on your would have gobbled up not saying that people don't honor handshakes. It's just a little different in doing business here. Versus somewhere like ohio <hes> you know affordable housing felt like home to me and then the other side of it after united's pretty naive again when i started getting affordable housing not really realizing how much it created community on but as i got older you know at thirty seven i sit back and i i see how amazing tenants tenants are with an affordable housing and having a good home is extremely imported so being able to be a part of a transition from property that can't necessarily cash flow to do repairs ars to have developer come into tax credit execution rehab the whole property and maintain affordable housing and preserving the units. You know it's pretty awesome awesome to see you know just the mental state that no attendant has a new home in a new beginning life as there is extremely brilliant people that live in affordable housing and people people always have a stereotype when you talk about it but its exact opposite. You have extremely hard working very family oriented. You know smart beautiful full of people within housing. I think it's one of those things constant wanna. Have it shine on you know again as i talked about four my big thing is trying to show that you can do bid by still have profit make profit by doing community and you know it's one of those things that even just talking to the tenants and working in different ways in different facets. You know <hes> a mentoring kind of stems off everything but long story short the industry is just an amazing industry under under the current administration there have been proposals and some efforts to rollback affordable housing development element programs and things like that and there's been some indication that <hes> housing and urban development hasn't made the best choices in terms of <hes> some places places like puerto rico where hurricane relief was stymied. <hes> what's your take. <hes> has has the situation become more challenging under the current administration or were is it. Is it more <hes> window-dressing i you know i've kind of of the latter because there's always opportunity when you look at things just looking at where the opportunity lies one state is more democratic versus republic <unk> probably gonna be more heavy on tax credit developers being in that market market and a republican state that you have the cash buyers that are very heavy on as date holes <unk> preserving affordable housing grading cash flow rather than a tax credit got us fee based on so there's always opportunities in regards to you know creating oracle housing or rico for instance. I believe the whole country is opportunity zone zone which i think it's hard to get people there you know. I don't think it's the government. I really think <unk> developers. <hes> don't necessarily want to go there because there's so many places contiguous like the the u._s. to go in in all unfortunately so i think that maybe they should be better incentives to get back to puerto rico which definitely i was devastated and i would love to see that we've been trying to sell a property. There live for two years just hard to get people's attention. Keep on joking that we should talk to a rod and j. Lo has maybe they'll take for. The lesser returns that i wish they would reach out to us <hes> but you know that's to me a target someone <hes> investing for going into me add silly but it's just the way it is <hes> and then regards to you know government <unk> they are. They're so creative you know just different ways in different mayors. The different presidential candidates look at different things in regards to housing. I think that now the attention to preserving somebody units in the city in new york city is great same time. I do think that there was too much focus on homeless and low income reason being that we definitely need almost mullen we we also need stepping stones and there's enough middle income housing and the new regulations. I think were horrible. I don't think you can put government control on a business. That's already been established. I think you need to create new housing because i think when you do <unk> existing products now it's going to hurt in regards to repair apparent building systems on the roofs boiler there windows versus what you could build new and it's a better better products so i think the lack of focus on actually giving stepping stones to people that are homeless low income to get to middle and out of affordable housing is what we need to do. You know i think we stump people's those growth when we give them. Homeless comelec world also supposed to go. They make more money. They lose their housing. Why would you wanna make more money. You know for now going from. Let's say six six hundred then all of a sudden. He makes more money. Go to eighteen hundred over two thousand new york city wants to do that so it's one of those things i think we stunt our communities than actually just looking homeless must mowing says if you get people out of low income to middle and you have more units palmisano income to go into you know it's kind of those things that you wanna show a bros not stunning someone gross a few minutes ago you mentioned the <hes> the difference between predominantly democratic states and predominantly republican states in terms of their willingness to offer tax incentive financing or tax breaks for developers <hes>. What other trends are you seeing nationwide as you look at affordable notable housing <hes> what areas are a better position to to deal with affordable housing versus the ones that aren't it's one of those. Is that hard you know when i look nationally when you're looking at more rural areas that affordable housing hurt more because runs don't grow as fast as somewhere like new york city or chicago or l._a. So when you have in urban markets there's more of a need for more there is more growth potential for business structure or affordable housing. When you're looking at rules you don't get that routes rightish more steady in regards to return where you don't get the huge increases of rants for the former housing so it's just a different model when you're looking at cities and states on from a rural urban perspective when you're looking at you know the politics of things. You know it's kind of again. That's why i think it's been an took me a while to understand. How much senate house is very important for you to vote on the event. Just your mayor and your district attorney you know i think people forget that it relieves starts you know within the city and the federal government no is definitely one aspect. I think it's is more important to look at what your city and state do <hes> new jersey under christie definitely was not doing taxpayer deals which released on the <unk> housing growth to a certain degree <hes> not just it's stunning it stunned attacks developers to do huge rehab on properties to you know <hes> the to purchase and acquire you know sometimes those are better for the housing because the whole building is to have a huge renovation. Sometimes that's better for the acid doesn't mean it's the only way there's cash buyers but it's just different <unk> his everything cycles through different cycles in. I don't think any one of them's better to be honest with you. It just really depends the ultimately who the owner is and the agencies work extremely hard to be creative making sure. There's preservation places like you're <hes> because it's it's more more people meeting at the same time again. Everywhere needs everywhere needs more middle. Income families even low income for its part hearted again. I just think we're really missing on the middle income and workforce housing worse than anything but yeah it's hard to say trends there dr politically in that regard tax credits can always bought. I think that there needs to be more corporations such as amazon facebook this book for <hes> you know basic companies within your city that should be investing in tax credits in the formal housing deals which there aren't usually it's the bank's everybody everybody gets mad at the banks are the ones that actually have been the ones that auto tax credits for horrible housing to preserve affordable housing on is there c._r._a. Credits <hes> but you know so it's kind of funny in that regard that the banks are actually the ones ever preserving when everybody got mad at them and preserving housing but i think there needs to be more operations nations <unk> maybe as the city talking more corporations that are big in their area to buy the tax credits. Maybe they just don't know maybe they're not just they're not educated. She didn't in it so i think that's an area that needs to be more looked at republican or democrat republican be great. They attract more corporations more jobs. You know in a different way through tax cuts tax incentives on just i think i think things are blended on a political standpoint right now. Between republican democratic people labor both ways knows maybe they're more fiscally republican socially democrat or vice versa <hes> more educating the different in science is confuse is in when things gets confusing than people just want to shut off and they don't try to understand it is the federal opportunities zone program having any direct impact on decisions that people make about affordable housing or is it just sort of a sideshow sidebar to the typical affordable. Housing people are still trying to understand opportunity zones so i think that's number one issue. It's keeps it's kind of like this weird place. Of what exactly is it. What are the exact incentives that we have <hes> that will result ferment that means that i do see a lot of people that have been more focused in areas. I've never seen them in regards to invest union or getting gene. Some deals like how <hes> in houston or miami that are large developments. I don't think people would have looked at it as residential affordable housing housing developments but now since knows zone and there's a lot of equity that's focused on zones. They're getting a lot of attention now so areas that are miami or houston texas by you know. It's pretty cool to see that people actually want it once. You actually invest there for that reason. I think it's a program that works cetera ground up which i'm actually excited for it because i think that's where we need to build more middle income housing versus having like we hear the regulation program which i think is horrible on again for my reason. You're not gonna be able to renovate the building as they bought it as you're not going to put the money back because they don't there's there's no cash so as they were expecting to due to a back in the building thinks we need create ground up so i'm pretty excited to be apart those two developments on in houston miami for creating more middle income in you we know better housing that it's ground up new housing for tenants and middle income families and workforce housing families <hes> yeah i think it's i think it's some areas sure it's still questionable on by. I think it was actually a good program for slain ending. Its creative agencies to think of something like that. It's great to see that it's constantly progression. On how do we create more housing in areas that needed it so in the holes and the gaps to create diversity in i think again that agencies do a great job and trying to be on the forefront and creatives yeah i had hats off to them in regards to always trying to be progressive. Is the economy gonna stay relatively positive or a relooking for there's some bumps along the way the next couple of years you know i think again without taking any local stance at all so it's not me take any political stance where i said. I'm just being realistic about things. It's trump doesn't get reelected on twenty twenty. I think there'll be a huge huge shakeup <hes> because as anything if there's change there's always a shakeup and it goes to democrat or more progressive whoever's democratic candidate. We don't know quite yet on that will shake corporations completely a stock market will definitely feel that and then stock market is more perception i think at times an actual actually comics per se but if the stock market market starts crashing in some kind of fashion people freak out and i think that would happen if trump gets reelected associating it's not the best situation but in garcia fiscally go or stay strong and the communists strong on people's reassurance that you know they'll still be growth. I think will be be be there on so again. There's pluses and minuses everything pros and cons by a. I think that next year being election years a huge year you know it's kind of it always uses you know we'd had deals that have been shaky every single time when there's a new election. We'll hasn't deals take about nine months to a year and a half to close so if you're in that midst of of an election year definitely gets shaky every single time when you know obama was elected or you know obama-trump on it's always kind of one of those shaky achey periods so again. I think a lot depends on twenty twenty election even within your own commuting in regards to like how will taxes be seen. Will people want to stay within the community to live there. I think the city faces that a lot is you know we have such high taxes. Everybody wants to live outside of new york city which is so frustrating to me and on you know it's such a great city but no one wants to claim in his home because it's too unaffordable versus other places they can live. You know i always joke that if new jersey job thursday taxes are taxes zero that they probably would overflow like influx of people just moving their comically say that because we wanna live here in new york city but we definitely make it unaffordable it. I'm so cristobal wise. I always the opportunity. It's the only way that you can't be as not <unk>. It's kinda whereas the opportunity where you go to grab it on. Where do you go to create it so you know it's it's kind of on the forefront of next year is gonna be definitely <hes> a funkier and just kind of figuring out if it goes this way here's where to do if it goes this way the celebrity do we'll have to check back with you when if and when the cycle changes that's why i thank you so much for that too so anytime that you never need anybody here thank you heidi. Burkhardt is president and founder of affordable notable housing brokerage firm dean real estate. She's based in new york city and that'll wrap things up for this edition of the c._r._a. News hour you can send your comments suggestions and story ideas to steve at st broadcast news dot com or you can leave an audio comment for us using the voicemail icon con on the homepage at st broadcast news dot com and we tape this program in studio a at st broadcast news in cherry hill new jersey join join us again for the next episode of the cr news our next friday at eight a._m. Eastern time at st broadcast news dot com or wherever you get your podcasts this this is steve lubeck and we'll see you out there on the net. Take good care <music>.

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Punxsutawney Paul - The Power Trip [FULL SHOW]

The Power Trip

2:24:07 hr | 6 months ago

Punxsutawney Paul - The Power Trip [FULL SHOW]

"Hey, it's guards. We've been enjoying the cafe beer by pills brewing for one year now, sports back in full swing. There's never been a better time to pick some up stop by the pills taproom in. Minneapolis. It's open with a safe clean socially distance experience but don't distance yourself from the Kfi am beer or the limited release reception October fest style. Beer, which is also available now the cafe and beer one year old thanks to rubes like you and thanks to our friends at you'd pills brewing. We're back live and local on a power trip. Listen up threes came in for last month we are number one. We just grabbed every key Democrat. Back Nice. Neto. Good News you feel brain are you mad? Do you feel about vantage? Boots. Gauge, Google, you begin. Video lack of Braga. They're. Discussing here some kind of medication that you maybe need a lot of taken none of or maybe too much tonight. It is the twenty seventh day of October. Twenty twenty good morning everybody. My name is Chris Hockey. Here we go. John Bonus coming in today have cory cove from his palatial mansion and not feeling great but good enough to be on the morning show laws carly took her and Mark Rosen in studio and Zach, and Brienne. As. Well, so lots to get today show. Let's get it started with norm MacDonald and Jim, breuer couple of the best radio or the pouch of morning show good on you I'm glad you're here seems like there's too much news like 'cause now to have twenty four hour news. Now when I was a young boy, the news was half hour that was the whole news. You know they had it about right that's about all the news there is. She's all the time on the news, the newsman while commanding I'll go good evening, everybody this the news man whatever he says it's not going to say. Story. Tonight a lady has vanished. And then you guys let's go outside where there's another guy. So then they cut the outside. We're outside and We found out about this lady vanish your name was Jan and then one day you know they go hey more news on Janice the scouring the woods they're still searching for Janice, and then you go out the woods. Nothing good ever happens the would. They find you in the woods they always find you in the same place every time they will find you in a shallow grave. I don't. Look there in the first place. The police chief I gotTA listen I want every shallow grave vicinity shutdown. To clear out this case by Tuesday Kinda I'm running for DA or. Eighty, two pounds in kindergarten in kindergarten. Loved Batman. I remember Halloween. I could not wait to be. Batman. So my mom brought me to the store like. Batman or done it I'll. So, I wouldn't put it on and she's putting on a Batman, but she didn't think like Oh, my God this poor kids a fat bastard. You Albert's are onesies so I'm trying to put on the onesie but. I can't get around the midsection. My Mom's like can. Looking at you. So I, get the outfit on and I'm so tight around the belly that the years of Batman only came up to. Just behind my head, I couldn't get it up. I walked into kindergarten with such pride. Batman. You. Shoot. Up. Wake up and slap the. Devil. survivorship morning show good model body despite thirty nine on the dot it's October twenty seven. It is a Tuesday. Not Quite back to full strength the at but we're getting there saucy still in Vegas I. Think he maybe I don't know I. Don't know where it's at. But Zach is here and Brianna here. John Boehner should be here momentarily Carl. You'll be here. Did you just say John Boehner, get carly Zipper will be here in just a bit. Nobody okay. Thank you Mark Roosevelt Bit as well and That's that. That sounded more like chef from south. Live from his palatial mansion. It's coming out both ends, Ladies and gentlemen. PUGH. had vomit. Diarrhea. None of that's true. Are you sure none of that's true. Yeah no not that kind of sick. I feel way better. No, it was never coming out of either end. That's too bad sick brag literally. Just. Not that. Regular. That small. Can you hear Zach need to fix anything doing okay. All sounds good on my end. It sounds good on yours sounds. A little a little stuffed up stopped up how much better than yesterday really that that. Yeah we're getting there though getting better. Died have we confirmed or denied that we have the the plague of our lifetime yet I get saliva tested yesterday. What about forever? Well. Yeah. Every time in the past and I've had a saliva test I've basically pass it because I've listened to him and I said this sucks and that was the correct answer. Yeah, right. But No when When Zach was Kobe positive way to go Zach and all of us had to get tested what I don't know was that a month and a half ago two months ago more than ones that now. million. Years ago yeah timber. Yeah I did the old. Drive through Maple Grove. Right where you just stick your head out the window and they shove a thing up your nose and you move on with your life. Well. So I called them a couple of days ago because I don't feel like this is Kobe but you know what you gotta be careful and check. because I have a couple of symptoms that overlap with colds and Flus and covert and everything but I never had a fever at all never got over ninety nine but I've been stuffed up sore throat coughing a little bit and I'm like. This is in a normal year. This would just be normal sickness, but Mike Girls got as well. So we all went and got tested anyway. you have the saliva test is kind of weird man. went to this basically upended building in Brooklyn Park. And, it felt like outbreak. There is like one hundred people standing at the tables. And then one hundred people helping that all have you know basically has met suits for at least half asked has met suits. This experience right and you spit into a tube for like five minutes. So you went to an abandoned building. Fallen for the yeah. Giving myself my own covert. You did what? You guys were like, ooh, I don't know if that was how Israel. Okay well, I had to do it myself too I'm sure you did stuck up there and it was my my eyes have never watered so much in my life I am patently against the idea of having to do that myself. Good Morning John Boehner, cycles, I would John I. Think every person in the world would rather do a saliva test because you spent like a half a gallon in Dolo Cup, right? Yeah. It says it takes you like ten minutes but if you really built it up and just go forward I got through it in about three or four minutes I just went for it and. We're taking their time for sure. So it's super simple, and then I guess you get results back within thirty six to forty eight hours. So the plant is since I'm trying to in the right way symptom wise outside of still being a little stuffed up. as soon as my symptoms are gone and the Kobe test is negative that I'm I'm hopefully backed by like. Thursday right. If everything stays on pay so I get it they're treating. Any symptoms basically like Kovic symptoms because y y risk it from a corporate perspective. So they're they're saying I gotta stay home until it's all clear which makes it. So well. Obviously anytime anybody is in danger of carrying in here there were in danger of giving it every person in the station to the entire station shut. Why I was gone last week, which is why you're gone today but correct by the way that means you're missing drink drake time tomorrow two dozen yeah I'm not super thrilled about that. That's that was Super Fun back in the day so it does suck that I doubt I will be. Cleared by then, but we'll see but you never I mean I guess you never know if if I feel well, I know I got up to ask Gavin. I guess. But if I get the results back before tomorrow morning my guess it's possible but. Maybe a little unlikely. Who knows either way? Who's WHO's technically on tap that go drink and the question was about to ask bonus here in right I can be in you are in. Okay. You're on the list of John. Bonus Bryanne your. Cattle Giddy up. Zach urine obviously a baby. Or? Are you a an angry drunk fund drunk are you a truth serum drunk? I'm a very fun drunk but tomorrow to make these guys Kinda work for it might make kind of be a problem. Because I would never dream of being difficult to law enforcement in my life, right? Maybe. Kind of pull that card and. Now, you're going to be hard to deal with for the. GOING TO BE Looking forward it's GonNa be fun. I. Don't know I have no idea of sauces coming into that but man I got a couple of saw stories for you. I can only imagine yeah, I got a couple as well but. I have my new favorite nickname to but let's get through the list and I'll tell you Paul's new nickname if if you didn't say yesterday on the show, I have no idea. No, no, it's. It's if this nickname doesn't stick I'M GONNA. Be. pissed. That good. It's not. It's not from me. It's from A and company in Vegas but if this doesn't stick, I'm going to be furious. Anything about it we'll get we'll real quick. So obviously me and an bonus. Bryanne Zach Marnie as far as I know making sure but I I believe. We're finding out today of carly is going to be able to make you tonight Aj and perish will both be they're both will not be drinking, but they will be there to egg on. Our good friend Ben who used to work at this radio station is going to join us as well. The Guy who beat you a poker every time he plays with you. So We're not sure about saas yet but. As of right now that we've got so we're we're moving, I tried I you know I I can't believe the entire sheriff's department couldn't change their plan. For us, but they cannot. But so we're GONNA move ahead and it's GonNa be fun and and we're GonNa get smashed and that's tomorrow and then we got our big movie premiere on Thursday night, which I'm very, very excited about we'll talk more about that later but I I can't wait any longer what what is the new nickname for Saas? So yesterday, you had the rare opportunity to have sauce and I both gone right and basically the Mo of this show is whichever member of the three power trip morning joe members gone the other to rip the one that's gone right? That's pretty standard. Yesterday you had the rare opportunity to rip both of. Either one of us was there. and I and I heard this story about the Cherry Hill debacle with cultivated CBD SAAS complained he was the only one that didn't get it and Blah Blah Blah. Blah. But then I also heard say the same thing then of course I noticed on social media is that sauce went to Vegas with four other people right John Chriswell and his buddy Tim who happens to be my rocky league partner Stupid. Ass Dove and then their front Brent Rights Brent Dav tem crystal in sauce there's five of them. Every photo on social media except for the one that was in the airport with a I laughed. Every other photo is the three or maybe four of them but sauces nowhere to be found never it. Let me Let me take the chance to rip him because he's gone but let me rip them and defend them at the same time Vegas Vegas is Amazing. Because you have to answer to no one right what everybody can do vegas the way they want whether it's gambling twenty four hours a day drinking twenty, four hours a day. If your lawyer Lambert and Rosie, you can go to the Bunny ranch twenty, four hours a day. Is Nobody tells you what to do. You can sleep at noon you can sleep at seven o'clock at night, which saw also infamous for right is he likes to go to bed at like six thirty. Now. I could sit here and go. Why would you go to? Vegas. and Go to bed at six thirty what a waste of you can sleep in. Minneapolis why would you sleep? In Las Vegas it makes no sense to me. However I think you could argue from a better beating wake up every night at six thirty. Yeah absolutely which is which is just as fine. The. Whole point is is, is I feel bad ripping because he should be able to do vegas however he wants the only way the reason why I think this is so different though is everything I just described like when we go to Vegas is a show in March. When there's one hundred and fifty rooms and there's like ten of us if he wants to basically go ghost on it, it doesn't really change anybody else's trip. Right. But when you go with a small group. Why would those guys ever go back to Vegas with sauce if he's never going to spend time with them? Lane here's how little here's a little time. With sauce. crucial on Sunday night and eleven. Fifty six PM clearly forgot that because he didn't know I was sick. He clearly forgot I could get up in three and a half hours. He says sauces new name is pumped Itani Paul. Often Shadow. Hills. That's the greatest nickname of Tony. Paul yeah, that's perfect. That's great. I just don't get it I don't. I don't get going with a small group and then the entire group. Now it's not a twenty person group where no one would notice that you're gone. It's four other dudes including your brother. People Corey. No. That's just. I hang out with those guys if it was a fifty person trip. Punxsutawney Paul I. Love It. That's so good. Yeah. That doesn't shock me a bit but again, that's always been him. That's always been I. Wonder How as gambling is going but I'm sure we'll find out whenever he comes back if he comes back, I have no. Idea Cycle. Well Oh It's too bad. Here's here's one other walk chat. And I'm GonNa read this word for word because this made me laugh out. Loud. Sent me this text. Also on Sunday. and. Again, you also mentioned that that sauce was not a part of this because this was the nine hundred times sauce ditch them. I mentioned stupid ass Donna's part of the trip. I'm going to read this exactly here it goes so. He just said he being stupid ass dove he said, Hey, girlfriend to a group of three gals who were all about four out of tens. So he says, Hey, girl. Four out of ten and then Tim heard the group say what a loser? That's A perfect summation of stupid. ESTA. I love the Gatz Great. Girlfriend. Yes. But at least he hangs out. there. I don't. Speak hanging decrease will send you the the pool video. No God hang on a second here then hold that thought. I'm going to send it to you Chris. You can get live reaction. Monkey. Here you go all right I, just sent it to you. So they have a view of it looks like some kind of a private villa. Or some kind of private poo poo and the people that are down in the pool. An old guy and what appears to be a prostitute do not quite understand that they're out in public. Library. Turned the volume. Drops. Oh. Yeah. She's topless. Oh. My God. Oh my G- go. Okay she's getting. She's never done. We have Bush. Actually do not. Negative Super Hot. Stove and then, and then there's a second video of course after I responded that one like that's crazy. One of the old dude getting out of the pool and I'm like, what are you guys doing in increases? That's why Tim's too busy to play rocket league. He's too busy zooming in on old. So. What is that the pool at the hotel they're staying at? I, think. So but I'm not sure I have never seen that pool. Where they are that's like a private area of just for like whatever room that that old dude has that he can afford that way prostitute. Hollywood, I've never seen I have no idea where that is. Nobody around saying lady you can't be new here. No I, mean look at the age difference is it's Something we it looks like a prostitute to me and that was what they were speculated as well. But. I know like that one. Yeah Yeah. Look there man money while spend. A Lot. Come on. Permission for. All your money. I hope it was on the up and up. All. Right. You got the money. Fairness. Want to see old man pool of course, she wants to see. kind of curious as well. All right here right here comes this is consumption, right? If you're getting it on in a hot tub in public. This is the price you paid. This is not Oreo. This is public right zooming in there is oh. Why Ho Hey. All right. Well, congratulations. All. Right. Well. He's that's an old dude man. Man I hope she made a lot of money to that to have to deal with that. Look at them just wandering around with a giant belly. Craig. No per UNC of course the pass. Route John. Old Man's penis. What was that again granny you broke up on the last one. Damn it, but you can tell when the guy gets out of the pool. Right? You said he's got a pretty sizable gut yeah GT. That it casts such a gigantic shadow that Paul rand back to his room and they haven't seen. Line, we go to break corey from his Palatial Mansion John Bonuses here breath Atas here's Zach. Halverson is here and we got lots of get your included by the way a brand new game at six twenty I'm calling the pop music pop. Lots of peace pop it on your. Speakers. Spouse your mortgage on the fan. We'll be right back blank so Of your new. York. By. A little flexibility can go a long way by refinancing your new or used Audubon with ten fed. You can lower your monthly payments for more flexibility in your budget. You can even schedule your first payment for up to sixty days from the date of your refinance calculate how much you could save at Penza dot org slash. Auto Refi. One Eight, hundred, two, four, seven, five, sixty, six to apply membership is open to everyone. To receive any advertise product you must become a member unfed insured by NCUA. Saint Tall is not the same thing. I've seen that at the Fisher House Fisher House. Is a huge part of recovery for somebody like my husband for them to know that, their family members are being taken care of that's a huge burden off of them so they can concentrate on their therapies. Just, having that assurance that no matter what as long as we were there for Anson, that someone would be there to take care of us. It took so much weight off our shoulders. How can you help go to fisherhouse Dot Org? Come on. Everybody. Welcome to the morning. Show. Zach Halverson on the board picking. Good music. This week. Like last week. Absolute Trust me. John. Bonuses. Over there Brienne Burnett right there. My name is Chris Hockey Quaco from his palatial mansion punks tiny Paul still out of Vegas. The punk what is the attorney Paul Back? I have no idea I. really don't know if he's coming back we've already made. A basically A. alternate plans with. and And and we figured that out. So I have no idea I don't know he mentioned yesterday at one point that he's going to try to find a flight back and I told him not to and then. Did. You have a flight back when he went there he was gonna come early he was sick. And, I said, no, no, we're good man and then I think he's not back 'til. Thursday which against looking back ten seconds. I can come back his corey sick that means you're getting your butt kicked gambling. He's he's tired of sitting in the room by himself. because. He basically went to Vegas by himself. And by and he's losing if he was up to grand or something like that, he would he would never offered to fly home early I know that because I've tried to leave Vegas early. Winning right ever wants to leave. Vegas early. That's true and by the way. You were mean to Saas when he's being a winding be word. His brother is oh yeah versus the death, right? So that's I gotta believe that's part of the reason that sauces not hanging around and. Paul is because if he goes just. This place is a seat bells. I can leave dob especially drunk drivers like shut your mouth stop being a winding b-be word. So that's good to hear. Can I tell you one other story I? Feel like I'm telling you stories from a trip I was a part of. So many texts from John. About the trip and again, none of them included Saas basically but. I I think three times over the last four days. Crystal has sent me a photo or a video. Of the group of three or four of them minus sauce at a roulette table, and of course, the bid on this show is Dobbs Roulette Strategy Right Tommy swears by it. So loves it sausage. Way, brother has, roulette strategy. Every time crystal sent me a photo or a video of Dob with just a bunch of shifts scattered all over the board I believe Tommy called it spray in praise. Yeah. That's what I would text back and I would say he'll be broke within twenty minutes. And I believe I was three for three. So I asked I, go well. Did, you listen to this idiot strategy and he said he he was up and cashed out but the DAV chased. Lambert's are not good gambling and this is coming from a bad gambler. They're just not good well. We can't. Be. Hockey. Let's again I'll just pick the perfect slap going there knowing you're GonNa win. That's all you got to feel good about it and slots not not not that other stuff slots are the only guarantee and Right. That's where they lose all their money and. They're still. Believe. All right. Let's do some sports. Time now for front page sports presented by Ryan to Siga Criminal Defense Thank you Ryan Pacifica. Would you like to lead US Zach? Oh. I got it. If you're not ready Oh no I don I thought Corey was. No of course, sitting at. Ready. It's up to you guys saw cast. Were you. You know sitting around panelists and just you know? tickling yourself if you ready for the. Weird assumptions I do but not long time. You know that's that is very true. The Vikings packers Sunday at noon. Right here on the fan of bikes are one in five, the packers or the opposite. They're five and one The packers are six and a half point favorites minus three twenty on the money line Vikings or plus two sixty the over under fifty four and a half punxsutawney. Paul probably has money on that game. Roy and Pat L. flying both designated for return from reserve slash injured list so. I don't know if that's GONNA matter at all but we got a couple of guys that are trending the right way. Yeah. I think that's obviously we need all the operative line help we can get but I thought it was really interesting yesterday I don't know if you've got to listen to the show or if you were not feeling up to it or not. But when we had him on seven twenty, just for a moment as opposed to when ben asked him about the the idea. That there are rumors that we were trying to trade more veterans not just in Goch Way, but we he was like, well, it's the Business Mike. Holy Moly. No kidding. You know. I. Mean it wasn't like, I. You know I don't believe the rumors and I'm sure teams it wasn't bad at all. He was like you know it's a business we know that I'm like, ooh, I wonder what it's like inside that locker room right now right very businesslike. Yeah. For sure you know where the? Where the professionals you have to act like a visual, but it's also. You know. You also have to look out for yourself. Hey, listen you know situation is this in Gaca was here for six games and got to go to a legitimate super bowl contender, right? If you're Harrison. Smith. If you're any of those players and you're looking at your career and you hear we're in a rebuilding motor, you see were in a rebuilding mode obviously and see how the teams have been playing in somebody offers you a chance to go to Kansas City or any any other perennial good team or even a team that's turning the right way. I don't blame them for saying that. Fine. Let's go. Yeah. Yeah. The flip side of that the cowboys have made it known that former Viking Everson. Griffen is available via trade. He has two and a half sacks in seven games with Dallas, of course, Dallas, without Dak the rest of the way Dalton has a concussion there two and five. So they're season's over despite being in the NFC East which is a disaster but they're basically waving the white flag as well. So ever sit on the trading block, which is incredible because they're a half game I believe I was Gonna say are they might still be a first place by the end of this week. Smart though they know that's just it's just worthless. Right is one of the worst things you could while I mean, if you win enough games to make it into the postseason even in the NFC East what does that get you? You'RE GONNA get slaughtered in round one, but it does get you playoff money and it gets you one more round of television I I. Really. But again, they would have to bring in another quarterback because I didn't know who the kid playing quarterback. There was apparently a seventh round draft. Pick A. Year, or two. On the left hand side. Okay. Thank you. Thank you. How much how much money is Dak Prescott making broken? Exactly Yeah Ben brought that up yesterday manage such a good point and if he needed to show his wealth areas I should say as I'm value to the team, there's no better way to do it I would I would much rather not break my leg that way fair. Speaking of Injuries Christian McCaffrey is considered a long shot to play Thursday, but is apparently getting very close to returning. He's been out for like what five weeks something like that almost the entire season, he played a game or to the vikings host Teddy, bridgewater an Christian McCaffrey in about five weeks. So unless he gets reinjured, he is a more than on pace to be back well before the Vikings game and a little over four weeks. Good Blair will be rooting for Teddy what he faces Arteta one hundred percent. Yeah. Absolutely. McCaffrey scores seven thousand. Last, night on Monday night football, the rams finally slowed. The bear is down the Rams One, twenty, four, ten, the bears now five and to the rams up to five and to Nick foles was terrible two, hundred, sixty, one yards in a couple of interceptions goth almost the exact opposite of two, thousand, nine, hundred, two touchdowns. Yeah as we talked about yesterday again at length on the show, the packers and the bears going into that game had the same record and it just didn't seem right right and the heart of the bears five into our they find a one exactly. Yeah. It's a terrible half of that team is terrible. World Series Game Six is tonight seven o'clock. The Los Angeles dodgers of Anaheim leaving the Tampa Bay rays of Anaheim three two. And the over under tonight is eight I find this fascinating but during the break. Corey I asked John Boehner. So you're watching the world series think he'd be like Hell Yeah. US. Instead he said no, not really. I mean I. Live when that mayhem and Soon as I got because I was watching the gopher game. And this happened at the end of the right after the gopher game ended but I wasn't the place where I could control the TV right? So I it was not on. Watch the entire go. Public at a bar. And left. Here's. Grandma's sports bar Duluth which Barbara got. Crooked Awesome where were you at Zach? Baby and were you at at home sleeping? About Right Insensitive question. Why stop now. Sorry. I was I was driving around yesterday listening to the podcast when I was going to get that saliva test and I heard you mentioned Chris and it's it's hard to like rip college kid right because their kids, right. Here. That's punter. He he's not the lead punter right? Our main guys got over maybe some contact echo who knows. Covert related reasons. So, backup punter kid comes in honestly who it further right now that kid or John Chris. Tell you. Poor kid man I know. Well, that's why they win four. Right like. Sauce sent me a tax even though I think he had money on. Michigan. So I, think he was happy that the gophers lost but he sent me, why did they just go for right 'cause it was something like four and Five or percents deepen our own end. You would never play cat got snuffed out almost immediately in the The wolverines just just absolutely obliterated the gophers fake attempt. And then when you watched him punt the rest of the game. Well, he's punching like twenty yards. So going for it is in getting stuff is not that worse than actually getting punt often again, it's not that kids fault now right at all, it's just if your main punters not in the game. What a huge swing now was to not only not be able to control pump. That's there's there's no distance on it. Right? I can't believe a backup big ten punter though can't kick it further than that. Right? That were you guys surprised as I was though at how? That was reported that that we were playing without so many players at least I only saw the one source and I even guys on the television were like a man does not good and everybody I was falling on twitter was like, why is our punter so bad and I'm like screaming because that's not our punter. Bigger News. All of our special teams that a lot of our offensive line is not planning. The answer is you follow the money. Right is when the gophers were three or three and a half point favorites, and they almost instantly flipped to three and a half point dogs. That's a massive swing vegas in a short period of time. So somebody knew that there were even if they didn't know the names, they knew that the number of players that were going to be out for the gophers or the kinds of players like the offensive line in a kicker and punter that they were enough. It was enough people and maybe enough significant people to swing the lines seven points. So that should have been a huge sign that whoever knew anything which by the way is also very dicey that there was some. I mean 'cause. The whole reason why we have. The injury report in the NFL is to try to minimize inside information right when it comes to gambling the idea I don't know if it actually. Works that way. But that's the public perception is let's keep this on the up in up. If if somebody understood that this was a significant problem for the gophers so much so that it's weighing seven points. then. Somebody knew something right than somebody leaked it to somebody that has some big time money in. Vegas. It says, Hey, I I'm here in half the offensive line's out they got no special teams they're gonNA get slaughtered. There's no reports before. Except for like just before the game about it and the only reason I came across it is because I was looking for it because I knew there was a seven point swing. Because because I knew there was a seven point swing on the spread which never happens. Yeah. I went well, there's gotta be. We're. Actively looking for the headlines are like how many players do we have out? Right it'd be if we have to have some key people out and it didn't. I. We had We still have the Big Receiver in the big ten or Morgan and. David. Bateman. Right. Well that that's good and then you start seeing. Oh No, it's like it's the specialty guys that are out and that's a real problem. Bateman is that good though? Isn't he? When he when he had an opportunity, he took advantage of it. He he's he something special. That'll do it for sports. Did you have something for me over there's a keyboard give. Keyword, and I wish you turn the lights on in that studio so that I knew for sure that you weren't. SICKER side. The Fan in which means you WanNa put A. Thing it's Telling you if you just turn the lights up a little bit over there. Sitting candle which. Is Brand right now. Right. That's probably the safest place to be. I've just I. Needed to sit over there tap him on the shoulder when it's time to go to break. So he wakes. Doing Little House on the prairie radio over there. Off Light a couple more candles. SWEETPEA or whatever you call. Still have my buddy still at my vagina candle home probably when you just said Now for those of you wondering he doesn't have. Gwyneth paltrow. The Fan in wixom jewelers want to give you a shots grand your hand with our national cash contests just Texaco word. To two, hundred, two, hundred to enter. That's family to two hundred, hundred standard text message and data rates apply Gordon tweet the picture I just took because it's so dark in the main studio corey he's using the flashlight on his cell phone to read the vibe just turn the lights. Twenty. Paul, toy. Hey. When we come back a game that I, I don't know it's GonNa work or not. Too Hard, but it's called the pop music podcast so heavy. And or or Pencil and paper ready Corey that's cope at his palatial mansion over there's John Boehner Brion debt, and of course, the sleepy sleepy Zach halverson spa more show. We'll be right back on the. List. Alone. A little flexibility can go a long way by refinancing your newer used auto loan with pen fed you can lower your monthly payments for more flexibility in your budget. You can even schedule your first payment for up to sixty days from the date of your refinance calculate how much you could save at Pensa dot org slash refi or call one, eight, hundred, two, four, seven, five, six secs to apply membership is open to everyone to receive any advertise product he must become a member unfed insured by NCUA. CENA tall is not the same thing. I've seen the Fisher House. The Fisher House I know is a huge part of recovery for somebody like my husband for them to know that their family members are being taken care of that's a huge burden off of them so they can concentrate on their therapies. Just having that assurance that no matter what as long as we were there, for Anson, that someone would be there to take care of us. Took so much weight off our shoulders. How can you help go to fisherhouse Dot Org? Ribs tweet us a gift that reflects how you are feeling about the upcoming Vikings game use that Hashtag I am. An One lucky winner will receive a Minnesota Lottery prize pack. It's powered by Minnesota lottery and with the new Viking Scratch Games it's game day any day. Were you listening to Sirius Satellite Radio on the way here I was not much was NASCAR radio though okay they were playing this song and I. So it's the first music I heard this morning and I said to myself I gotta remember to play the song into the song. This is a great song This is my name is human by highly suspect suspect what a great Song Man And this whole record is both those records under the. Top the. Bottom. Great. Great Rock Songs Man. Yes these guys they opened up for three eleven last. December. Did leave when they were done. I am just kidding you know I love three eleven. I have lost a three eleven was the headline. Where were they great though live? You guys like him a lot more than I do but they were good. They were fine. They had three or four songs that I thought were pretty sweetness is clearly one of them. There's a billion things about the coronavirus that really really sucks and but let, I'm telling you this is a great time for rock music and they are not able to tour right now and spread their music across the globe. So you got to hope that you find it you know either on this show or on Satellite Radio Ninety. Three extra wherever you gotta hope you got to actively look for it exists. There's great rock music right now there really is, but I am absolutely floored that when we we looked at this thing in March and we knew that most of us were going to be on lockdown for two or three months the right and then we didn't know what it was gonna be beyond that I. I'm surprised we haven't been flooded with new music I. Think we will be. Yeah. Give it a little more. You know the pro- the problem is. Well, for instance, I. I've done two records right now I have one them they're just got released it was live record, but the the entire brand new record is just sitting waiting to be released read the point of for record companies right now is they don't want to release record that band cantor in support. They really don't. They're just sitting back and waiting and that's not why I'm waiting. I'm waiting for a million if I can't decide whether it's any good or not. But. Yes. So that's it. I was reading a story about that the other day these these bands have music. You can't release it. Until, you can support it because it goes unreported I mean even Bruce. SPRINGSTEEN released a new record there they. I haven't heard a single song from. Yeah. Yeah. Yeah. So okay. speaking of music. Here comes the intro. Now, it's time for a pop music pop quiz on the power trip man I hated pop quiz. How many how? Read what you were supposed to. IDEA head luckily they were only eight questions like this. Eight questions do you have a pen and paper pressure to write this does have to music as you can tell by being the pop music pop quiz I'm GonNa. Give you audio and a fact. Now against some of these are going to be way too easy. Some of these are gonna be like, how would I know that? That's just how it is teacher do your homework. Here we go. Are you ready. Number one looking at my paper John In. Nineteen seventy five this artists became the first rock performer to be featured. On the covers of both time and Newsweek. Week. Who is this artist? Lack of visions signs across the porch as. The first quarter be featured on both time and Newsweek in the same week. Number two. In nineteen eighty, the original drummer of this band died from choking on a cocktail cherry at thirty one. Who was the band? Behind the original version of this song. Against some American easing, some are going to be hard. How about that? By the way? How did you die while I was having a drink at by? Choke Cherry. that. Was Number to my sources say sauce would never do that. Not. I mean. They undermined. My sources say punks. Much we gotta get that going man we got. To stay forever, the best nickname of all time on the PUNK. On E. Paul, a number three in the power trips pop pop quiz and nineteen eighty-four. This artist became the father of girl by the name of Kelly. Jaitley. All. Right. No idea. No idea. What do I know that? Don't know you don't know that Sir. What if you've done? Your Damn. Right. All right number four. Here we go in Nineteen ninety-two this artist released his album one of his similar albums harvest moon. By the way I'm going to. Bet Brian gets everyone of these, right? By the way I think four for four and I'll admit on that one. I would not have known that if this wasn't an initials item like two months ago. No Kidding Member Harvest Moon. That's right. I would not have known that if I hadn't done the research two months ago interesting interesting. All right number finally paying off finally. Game in home I got to tell you this game dot com initials game dot com. Glad that came up again I can buy it really could have. Two, thousand and three, the singer for this band was arrested for Dui, Los? Angeles after allegedly running BMW, Ando. Parked van. Wrong mouse. Singer the van. Police. Band please yes. That's a great song by the way. Tricky but I think I. got it name of the band the data singer was singing for that time. Gotcha number six rookie it's a pop quiz baby in two, thousand, five, this band played the third of three reunion shows at Madison Square Garden in New, York, a reunion show in two, thousand, five for this band. His Job. So. To be. Now. Number seven. In two, thousand, nine. This band's record Radha Tude. Arrived in stores the. Way. This bans. Record attitude. And finally. Question. Number. Eight. This artist. died of liver disease five months after ongoing liver transplant in two thousand, thirteen, he was seventy one. Take your welcome. Said Hey. Take a walk on the wild. Guy The other seven I don't know this. Didn't Brando's. She got all eight I. Really believe she might have to. Do not feeling. But I got. I should say own underrated overrated. That became time they might. But the song about when he wrote the Song Right whales. that. He was GONNA be angry about three of these. Just know that I don't know put your pens down. Thank you. SA- pop music pop quiz. Question Number One thousand nine hundred, seventy, five. I rocker to be on time and Newsweek. This is. The boss Bruce Springsteen. That's Paul Molitor. Everybody gets us back yet. Right. I figured I figured all right but this is going to be a little harder in one, thousand, nine, hundred, eighty, this poor some bitch drummer Stephen took choked on a cocktail cherry. What was the band that did this song? That's what I guess. It is t rex. Wow Rex great. Did you you know? Random Fowler Susan's. Their. Power. Station did version obviously yeah. I'm shocked that you got that Korean Galati thought I had on that one t rex was by gas. I think I have seven out of seven. I don't even have guess for eight, but I believe John doesn't know number three. Dad figured it out again in Nineteen eighty-four this run into the song became the father of a girl by the name of Kelly. Off. He's got a son named Jack. He's got a wife named Sharon. He's got a last name called Osborne. Tired. Kelly thing might give it away even if you didn't. WanNa think crazy train. There you go. All right next number four, pop music pop quiz This artists. Harvest Moon was released on this date in nineteen, ninety two. Young, young correct. You didn't get it said diamond and of course. The initials. That song without that I get there I had to go. Nash. WHO's the other guy? Again up. Neil diamond. Neil young now. Sense. Number five in two, thousand and three this band front man was arrested for Dui after allegedly running his BMW parked van. Tricky. I know hundred percent easy. I don't know. That's my guess is it's not stone temple pilots. It's Velvet Revolver Velvet revolver. Ranch. Did you get it wrong wrong. I wouldn't have come up with that I. Roll. All right. All right. Here we on. You obviously didn't get it. It's not. Thousand. Five now this band played thirty three reunion shows on this date in two thousand and five at Madison Square Garden. Who is this band? Do you know? About US I guess deep. Purple. Scream. Oh my goodness. Both at deep. Purple. Purple as well. Oh Jeez. I. I guess I crossed it. I. Got It. Okay. So of your love so as we are. China the love of your love. So we are six into this. How many do you have Rianne? Let Sleeping six five what about John? Got To what about you Zach four and what about you core five is well, oh, it comes down to this. We've got to laughed at number seven this. yeah. Okay. I did Ratatouille next rent. In. Two thousand nine this band's album Ratatouille was released. John, Dope. You. Weezer. That's I. Don't remember the album Radha toot at all. Yeah. But that sounds exactly like rivers. CUOMO. So I wrote down Weezer. I said rat blink one eighty. He said. Before you we played it. That was my guess but. Once again. Brian and quarrier correct that is. That is right. So it comes down to this and I don't have an answer. So Brian has a free role at number eight in two, thousand, thirteen sadly a this artist died of liver disease five months after undergoing a liver transplant, he's only seventy one he. took the wild side I. I'm GonNa, go around the room and. Get. This right. So I can't think that guy's. Name either you can't think. Vince Neal is not offensive. Wild. What those are some of the worst of all time. A. Brand. For the wind. Can you identify the artist behind the saw? Now, I'm for A. Big. Win Goes to Brienne. The first ever edition of the pop music and pop quiz that was Lou Reed. Take a walk on. They look. Your Brienne ran last time I checked as a female. So she's very limited. Oh, is that you? Know honestly brain. You're what? Twenty nine right almost thirty in. December. Twenty. Nine brand knows a ton about music. We learned that we did the the the SNOB game yeah. She's super well rounded in terms of music history and. Current, news she's she's GonNa go on like on rock and roll jeopardy or something she's pretty well rounded. Won The first ever version of the pop music pop quiz our triple. If this ever becomes the second initials game. You want go down in history. That's exactly you WanNa make six hundred. Want to spend thousands of dollars. Make six hundred bucks. To work. To make six hundred dollars you can. Make parents complain about the inventory. That's right. Ladies and gentlemen. It's the poucher morning. Show Corey cove. Myself Zach Halverson. John. Bonus Bryan Burnett will be right back harmless Zipper by the way Mark Rosen coming a little bit later and fill in the blanks till the gun on the Patrick on the fame. A little flexibility can go a long way by refinancing your newer used auto loan with ten fed you can lower your monthly payments for more flexibility in your budget. You can even schedule your first payment for up to sixty days from the date of your refinance calculate how much you could save at Penza dot org slash auto refi or call one, eight, hundred, two, four, seven, five, sixty, six to apply membership is open to everyone. To receive any advertise product you must become a member of pen fed insure fancy way. Tallest, not the same thing out of the Fisher House, the Fisher House I know is a huge part of recovery for somebody like my husband for them to know that their family members are being taken care of that's a huge burden off of them so they can concentrate on their therapies. Just having that assurance that no matter what is long as we were there for Anson, that someone would be there to take care of us. It took so much weight off our shoulders. How can you help go to fisherhouse Dot Org? This fall, the watertown convention and visitors bureau has partnered Bentley. Radio for one great giveaway. It's the camel crate enter to win this exclusive package of Gear and Goodies Aka Fan. Dot Com keyword contest. But there's back. Take Ori Max's here. Hey cool. Yeah, I max where the hell of you've been, you just disappeared you of me to. A. threesome, so I had to return. The favor. Well. Yes. You got a fulltime job Do you do for the corporate the man now within the? Right, right. It sounds like you love it, which is awesome. I'm glad to hear you so happy Oh. Yeah. We Miss. Utah I. Miss Everybody. I've missed all you guys. It hasn't been the same not being here. Yeah. Well, nobody else is here either. Palatial Mansion Tom, he's got the plague. We don't know what's wrong with me. We're finding out. He keeps taking spit as Sullivan, the twins. Not. Sure for whom bonus. You go drinking tomorrow. That's Not Yeah. Okay. We're being picked up by the the the sheriff's Department and Making nervous that makes me nervous. I. Can't be on the radio hopping in the Sarah Span. Agree. Get Out. Kidding so real though and I just got confirmation mother-in-law lawyer lamberts joining us as well. So they're taking us out to the sheriff's department somewhere and they are providing the call we're getting wasted in their training new officers, how to test for you is and stuff like that. Well, the cool thing for us is we get drunk that's the middle of the day early. Picked up at ten am then we go driving and. Again No. They're they're taking either to home or wherever we're GONNA go after we're done but does the testing equipment and We're all forgiving DOT COM. Wow. Yeah. So we'RE GONNA make fools of ourselves and AJ, and Paris will both be sober to make sure that we. Don't say anything that's going to fired. Or canceled. And that they don't just throw some jail for outstanding warrants. Mostly worried about because I've driven through Chicago Ninety four times and I have no idea how to pay my tolls. So I'm sure all my goodness I'm sure I'm going to jail. Operations. Here's Hey. Tomorrow if you're interested I'll have to think about. My own private. Police. Understand. So I'll that's going on tomorrow ended up up on the patronage, and then of course, Thursday night do not forget seven o'clock. If you saw yesterday on the social media, the first ever power trip animated motion picture debuts on Thursday night. It's finally old coming out. Very excited. Did you see the Promo for? On twitter it's pretty cool. But right now it's time for what really matters brought to you by our friends at cultivated CBD the Cherry Hill Tinker by the way almost sold out they did a limited run because we weren't sure if anybody care and. I'm very excited to say that you get you got to cultivated CBD Cherry Hill and you got the copy of the live CD. That packages almost select because I only made a few I only made a few hundred CDs. So thank you for but It's available right now regardless whether you get the Cherry, Hill or whatever flavor cultivated is the best over to you a Zach how What. Gory Coleman here's. Cory Sleepy sleepytime. Any. Work at all. Every word you showed him. Last night. By the way speed of being I have tried the Cherry Hill tincture. Yes because you guys were nice enough to give me a little gift bag the feed that the feedback spend outstanding from everybody that I've seen on twitter and for myself as well. Everybody but sauce. Back I. Just didn't give me the benefit of the doubt that somehow I messed up. I mean I literally made a list. I checked in more than twice Sarah Check did I don't know how he didn't make it here to him but didn't get one he didn't get one. Oh, I didn't hear about I. Bet you didn't hear about. I'm the one who made the decisions. It's not like there's somebody else to blame. It's me. Of course I would give him some of my tincture. Guy He would have thrown it away. Anyway. You know that he would sent the CD down the hallway like a Frisbee. Well, I personally would like to say, thank you cultivated CD because my gift bag was absolutely they're like I still have my here, Chris it's great. I love it. I've been using it. It's been awesome. I'm so glad you like it. So glad just to change the name on the label pugs Itani. Paul and just put it on his desk maybe they'll give me one and then I'll get mine. I won't give hockey and he. Actually pretty impressive. Right. The Vikings are at the packers. Sunday, at noon it's packers week. It just doesn't feel like because the packers matter and the Vikings don't the Vikes or one in five. The packers are five and one. The packers are six and a half point favorites I can't believe it's not more. It ain't over till. It's over baby. It ain't over over by halftime too hot troy. Donahue. Both, designated to return from the injured slash reserve list. That's good. News take. Any good news we can get really matters is this. This is a crazy story when titanic was filming James. Cameron in about fifty other cast and crew members were hospitalized somebody Spike de lobster chowder they were eating with PC. The crazy thing is they never found out who did it? To this moment nobody knows who spiked the chowder. Billy Zane. Definitely look it seems like a bill is aimed thing. Good looking dude. But just looks untrustworthy. Ran, who's better looking Billy Zane and titanic or Leo and. I can't. Thank God he's so beautiful. Ari Kidding me really it's not like I still stand by. How I felt A mile. Id. Hideous Billy. Zan's like a model. What are you talking that? Looks like a Jalala One Film. Risk. He's in the club scene were even Derek Zealanders off Billy Zane. I Miss Billy Zane. My turn right now, the bears lost last night on Monday night football to the rams twenty four to ten nick foles with two hundred, sixty, one yards and two interceptions both teams. Now five am to. What really matters is this. Thanks. Man. Motel six got its name originally because they charged six dollars per night. It opened in nineteen, sixty two it was six dollars a night. Whatever super eight was eight dollars and like they came in and undercut them. Right six six minute. APPS. They just skipped right over that seven dollars. Never wash the sheets we can charge six dollars. Six dollars an hour. So. Actually. I've stayed at a bunch motel six is they're very classy joints the lights on. My job backtrack. Series game six, tonight seven o'clock. The dodgers are a slight favorites over under is eight, and of course, if the dodgers win tonight, they win the world series and their first since one bonus like eighty, eight, nine, hundred, eighty, eight, the Gibson Eckersley Homerun. Never Forget it. Gibson. Coming off the bench and limping around the basis after hitting a game winning homerun off Dennis Eckersley, who was an absolute Response. Was the the big car I don't believe what I just saw that. No kidding. That's awesome man. act. I haven't fact check this but there's no reason to not believe them Ben Maller a couple of hours ago before us was talking about the the dodgers he mentioned it's it's against since one, thousand, nine, hundred, ninety, the dodgers on the world series in that the dodgers have spent. I think it was three point six, nine, billion dollars on players in the last thirty, two years. So that's. That's how long and how expensive it is ended chase world series. If you're the Los Angeles dodgers because they spend a lot of money obviously they just. Three point seven essentially billion dollars in the last thirty, two years. Their Stadium Pretty. Old. Yeah. Yeah Right It's one of my favorite stadiums. Top Five stadium for meat partly because you feel like you're going to a game with the rat pack in the early sixties kind of thing it's got that feel to it. Traffic's a nightmare those. Game there. Make sure you take a prostitute in the Carpool. Lane. To know. Thanks for the tip that a practice here in Minneapolis is. Men Ass. and. That's also on your license. On the what really matters is this the first and last people to die building the hoover dam? Corey. Sadly were father and son, and it is exactly thirteen years apart the dad drown on December Twentieth Nineteen? Twenty two. His son fell off a tower on December twentieth nineteen. Thirty five. Again the first and last people die died on the same exact day. Thirteen years apart and they were father inside. I think it's been long enough where we can crack a joke about the dad be in advance women the kid be and clumsy. Imagine if it was last week, I, probably would've let it go. On a bad swimmer and a guy that they stand his tower. Well, that's. Not the, not the your family wants to be famous for well I it is time Corey and. We're going to break and come back with the news and we're again expecting carly and a rosy a little bit later on maximum. You've done for the day sticking around or Lichen pop in and out as do my. Take Away from that again, bonuses here of course. Here's well, we got fill in the blankets so much more come late in the show. So stick around it's the power to the morning show at six, fifty, six on the fame. Gamble soften, Cohen. A little flexibility can go a long way by refinancing your new or used auto loan with ten fed. You can lower your monthly payments for more flexibility in your budget. You can even schedule your first payment for up to sixty days from the date of your refinance calculate how much you could save at Pensa dot org slash auto refi or call one, eight, hundred, two, four, seven, five, six, two, six to apply membership is open to everyone. To receive any advertise product you must become a member of unfed insured by NCUA. Fan. Find. The latest power after Party podcast on the iheartradio. APP, it's all presented by Michelob Golden Lights. Back Patrick Morning Show. It's Tuesday morning John Bonuses, here. Hi John Thanks for. Kids, Yep I. Know You had to shuffle some things around to make impossible today. So I appreciate it very much very excited to here. Always excited to be here and over there running the board you get reimbur-. Debt of Cova is at his palatial mansion because I. Some strong with who knows I mean now at this point. You know roll the dice and just pick a disease. He's got it. My Name's precise him in the big chair and I don't like it I. It's not right and I don't like this microphone because you have to hold it down for your face. It's the weirdest thing and by the way two things during that break number one, I was telling these guys there has to be a light installed in the studio to let you win. There's a microphone on in this. Because you have no idea. No Way of knowing everybody's microphones off frankly the discussions we have off air rescue effort need to be had on air ever if questionable, they need to head off air. If we had a bringer around, we wouldn't have. We certainly need to have a microphone light in the studio so you can tell when there's a microphone no, it's not like we are swinging slurs during the break as as Thom Brennaman learned, right? Rule number. One of of broadcasters always assumed the MIC is hot in the weird thing about that studios even if everybody turns their Mike Off, we've had some weird static issues where you'll walk. In the static of their shoes will flip one of the mic onto you may have turned it off and then walked away in thirty seconds later. You're sling in hate speech and all of a sudden you're. Exactly. 'cause. Slippers three status. That's right. So we have to get that installed, and again I, never sit in this chair in the last two days I've felt like I was walking in tight rope the entire time that was an observation number one observation number two you didn't proud of Me Corey, but you would obviously as well have felt my pain. So a moment ago Bryanne said something that I knew was patently incorrect. About Billy Zane I I mean I knew what she was saying was wrong. She said Billy Zane was the mummy and the mummy and now I, knew that was not the zing wreck right? Right. But she was so certain of it and I have been married for so long that when she said no I'm sure that's right. I said I don't think you're right I you know I I want to check you played it pass. That up even though I know you're wrong but you might wanna Google that and then she was all you want to put money on. vk honestly for a moment, it was like I was married to brand. Because she was so and I was like, no, you know I. Don't think we should put money on it. I think you should just. Of course I was right. We looked at up you did okay. But again, willing back. Rounders that if you can't spot the sucker the table in the first thirty minutes, you are the soccer, right? God that. I think you just summed up the difference between you and me. were both a holes I. Would have flat out. told her. She's wrong and if the minute she says, you WANNA put some money and I would have said name your price. That's Gamblers are looking for edges and if you are a hundred percent, sure thirty big edge if you a hundred percent. Sure. Let's like Billy Zane I don't know what to tell. You know he doesn't. It's a twenty dollar bill. You're never GONNA get. Twenty right out of her pie. You can swim from Hershey what need for a week. Constantly the cops up from her home tomorrow to get her here. Can you imagine if Punks Itani Paul Lost Twenty Bucks. Like the way, you some up yesterday because I heard that on the podcast to that. Awesome. The greatest person to be around if he's in a good mood, the worst person to be around if he's in a bad mood, that is a Ah Perfect. Some Asian of the of the the roller coaster slash pendulum is right Paul. Meat Sauce Lamb has married when he's in a great mood, he is the best. When he is in a bad mood, hide the women and children and recover this. It is I was telling them the story about being at that casino up north near Duluth and when he I think he was only like two hundred dollars and the amount of sea words. The really bad seaward. Yeah. He called it a sea palace. House I think. That's still see how many times we said this about this. That's why this show works is you are an eternal optimist and how big I am I'm a personal optimistic but a social pessimists. So I'm almost always cynical and sarcastic. So you're always on the positive side I lean towards the cynical side in sauce the wild card and you just summed it up sometimes he comes in here in everything's the best I watched documentary. The greatest thing I've ever seen, and then the next day it's I want this person dead. People that she fired from. And he wants to go scorched earth on the entire IHEART. Building. GOT HE HATES EVERYBODY So way back in the day like Oh four, zero five when I was pegged as the most negative guy at the station it took me a couple of years and I finally convinced that Brandon Milewski's way more. I finally got everybody to agree brand hates way more things than you do. Now sauce definitely hates more things than I do and the things that he hates like I hate arts right? There was like movies that I hate Bam. That hate he hates people. Truly hates how co workers neighbors, random strangers, somebody tweeted anything about it once shadow people he hates every. Yeah and you think you like him and then somebody tells you that he really doesn't. Think, he likes you somebody tells you that he really doesn't. And again, it his mood in the morning when when we get here is wholly determined upon which one of US he talks to I. She talks to you I. He hates everything. If you talk to me I, he loves everything. So it's it's about that's ever before Corey in. A good mood right there. We'll start taking shots at him in the first segment and he'll laugh at us and crack jokes back. If in the first segment, we rip them he goes you guys are being mean today and it's like. Here. Saas doesn't want jokes which one other joke before we can get to the news cross twitter made an unbelievably obvious point that I hadn't thought of since the Punxsutawney Paul. Nickname. What did he do last week when he thought he saw Seattle person is apartment he ran away his girlfriend. Sees a shadow and he runs. Punks Paul. I got to see what that looks like. Somebody's got to draw a cartoon of that. He is going to hate that. Hasn't already been texted. Insured it. Exactly right. All right anyway. Tony. Paul's. Got It's about it. We presume what happened was he just lost big the for after waiting to go to Vegas for six nine months right dreaming about it showed up and got snot kicked out of him on the first night eight still angry about he probably took. One hundred and fifty dollars. A and I ten minutes. It's over Johnny isn't that the weirdest thing about sauce like we've known him long Enough Hawk win. A ton to him. This is this is a a modest break for Saas but. He doesn't really care about spending money. Right as is a He he's had the last handful years to be single and just bank money. He's. He's not a guy that worries about money. But what's weird is he could go spend a ton of money on furniture shoes clothes and not blinked twice but if he loses it in a bet, he hates it. So it's about a hundred dollars. He will burn on anything and not think twice you you lose one hundred dollars on seahawks and he wants to burn the casino to the ground. Yeah, he calls the deceive pile lesson. Yeah Yeah right great. Point. He's yeah. The Fan Wickson, dealers WanNa, give you a shot to put a grand in your hand with our national cash contests this text, the keyword. Cash the two, hundred, two, hundred, injured. That's cash to two hundred, hundred standard text message and data rates apply everywhere man. Ever. Planned what does that saw shadow of the day? It was there but I couldn't quite hear. You that. I. Shall We do some News News? Thank you this is. Dan News with Chris Hockey presented by by your. Credit. Union. Hi My name's Chris. Thank you firefly credit union here's the news. A woman who once worked in schools in Buffalo County? Wisconsin. It's looking at a six hundred dollar fine. Everything of care would have been cory. Cory. So with money. Oh my God. Did he pass? I'm not even kidding you sound like you've passed out. It did PORI assassinated gory. Corey. Wake, wakey-wakey candidate. and. I've seen happen or his mic just ended up disconnecting Okay. Here's how be. He. Just texted I. GOTTA dip up the rest of the segment. Okay. That's I pictured him laying pants essence living room. The kids come downstairs the MOM. He's just laying there drilling airing how anyway yeah. Big of a woman who once worked in schools in Buffalo. He's looking at a six hundred dollar plus fine for sending nude pictures to a student only six hundred sh. Judge yesterday ordered thirty four year old heather tree to pay six hundred forty three dollars for sending naked pictures to a seven year old nude. As, she also asked for news and return prosecutors allowed to plead guilty to disorderly conduct instead of sex charges. AM sorry. That's that's a double standard and I'm sure young man but you pay that fine for her. Wide definitely a double standard. No. About fee that way seventeen year old girl absolutely. I you could be right I mean, this is hypothetical could be right. Corey passed out. Excited for minute hey. This happened last night we talked yesterday. And now the changes happened the INOKA hips scored. Voted, to continue extracurricular activities including sports. Scoreboard made the decision on Monday less than a week. After the school district announced, it would cancel extracurricular activities due to a in corona virus cases although activities will continue an Nokia Hennepin will transition to full online learning next week. So they're not going to go to school, but they are going to do sports interesting. Yeah I think it's interesting and that is an about face from everything I've read up till last night imagined the roller coaster ride of like for a weekend there you thought your high school dreams are crushed and now they're back. And these are not outdoor sports, right? These are mostly. were. These are indoors. Now. We're still in law on falter but his point it's coming around at you're right. I mean hockey and Footballer writer is I'm sorry hockey and basketball right around the corner Raslan. Yeah interesting. Happening right now. So interesting But again, I don't have a I don't have an opinion either way. I'm glad I don't have to make the decision right to be completely honest with you but I will say this as. If I had been A. If this happened during my senior year in high school and they told me, I couldn't play football. I wouldn't have been said I would have been crushed. It meant everything to me. As a high school. So I'm glad they still get to play. That's what I'll say. See what I got here. We'll at things. This is sad man John the Chino Latino restaurant and Uptown Minneapolis closing. Not, no closing. Yesterday. Latino says it's gift cards will still be a valid at other parasol locations for them. Well, did you really be? Part of that. It's a relief successful cool story restaurant chain in the twin cities and they can pretty well. So that's kind of surprising but. I did not ask posted the year my first year they're. Kind of. Best host of the year I have stainless wine glasses Paris. Ole. Awesome I am. So much in the way I said. Parasol. That's probably what it is but Paris only. She joined sauce, Corey on host of the year awards unless you know kidding. How Walking just fast enough to get them to their table and turning around and smiling, and that's exactly what I do for. Let me too I. Have a couple of one. I wanted to make sure that I got to me get to real quick news stories sports. Okay, here we go. Kenosha County is about to become a gummy bear country. Has. Here, Harry, Ball Harry able. Japanese your Harry Bo. So. Really. German. Oh now, what are you going to say that it's a different company or just sounds wrong to me Harry boat heading off how do you both? Whatever minis they yesterday announced plans for a plant and pleasant Prairie Wisconsin. Things out. Yeah. It'll be the company's first plant and North America misuses Harry. Bow is precisely the kind of company she wants to as Kansin. She's works for somewhere over new way locally, save the investment in roads and access for foxconn helped lur Harry Bio to constants that's good jobs and gummy bears. From the Wisconsin I'm for both of those things I. Can't just eat a couple of men. You go through a big little green ones are watermelon. Strawberry They're not. They're not line a better fi if I ate it without looking at it, I would know a strawberry but when you look at it and think. There's no way that strawberries because of that. I. Try that. Interesting. Let's go over to the sports desk and I guess Corey died fan five. Hundred. Five turn. For sauce bad man. Oh, come on. You denied me earlier. You did you denied was his. Remind you. It's not fair to deny. Go I don't care. I don't really care about I'm GonNa read these stories and people are going to know I don't care about them. So you go ahead VA MINNESOTA. Vikings will visit the Green Bay packers in Green Bay lambofield Sunday at noon. He can hear that game here on the fan by the way, the Vikings course coming off two straight losses dropped to one in five, but just had a bye week. So they regroup and get back at it. The Vikings are at the bottom. Of the NFC north, while the packers are at the top, but they're five and one record the Los Angeles dodgers look to put the finishing touches on their first world championship tonight since nineteen, Eighty, eight, they take on the Tampa rays in game six of the fall classic down in Arlington the dodgers had holding three to two lead in the best of seven matchup after a four two win in Sunday's game five. If needed a deciding game seven would be on Wednesday. Was the team the teams you thought would be in the world series when the season started or they were the two best teams in the regular season. Okay. That's still I. Don't know if that would have necessarily put. I didn't know who is going GONNA come out of the American league. The dodgers were the heavy favorites, Nash how much better are they twins? The dodgers on the dodgers in the raise. Yeah. I mean within reach I mean legitimate. Within reach it's within reach. I think. Everything's a little. Up in the air because not only did the twins do Portland the playoffs everybody from their division did poorly in the playoffs right either the central or the Ale central as a result were I'll just kind of wondering like, did they rack up all those versus just a bunch of bad team? Yeah. That's that's sort of the the question. But no, they are within reach they are. If things go back to normal. I would still expect the twins to be a playoff team and to be one of the. Top four teams three or four teams in American League. And it'll be interesting to see whether or not. They do much to improve the team during the offseason because nobody really knows what's going to happen this offseason. Which division is the as a Dallas in New York giants in in the NFC NFC's yeah. So basically winning the central this year was like winning the A little bit but everybody had records. Right. Interesting. Okay. Continue Dealing Ramsey and Taylor rap record recorded interceptions as the Rams Mauled the bears twenty four to ten on Monday night football. When Floyd had two sacks for Los, Angeles against his former team geared goth threw for two touchdowns. Wall Malcolm Brown entered a score on the ground as the rams moved to five and to Nick foles had two picks for Chicago which fell to five and do Eddie. Jackson returned a fumble for the bears touchdown in their loss, and by the way Cleveland Browns Wide Receiver Old del Beckham junior out for the rest of the season with a torn ACL in his left knee. Injury early in Sunday's win and Cincinnati Beckham ends the year with twenty three catches for three hundred, nineteen yards and three touchdowns in seven games. The browns are five into on the so far, and they finally have a year that's going well, I'm not saying that changes they lost Chubb earlier it looks like he's coming back sets go I. Only know this because my dad's such a huge browns fan finally is having a good football side and having fun watching the browns and then stuff like this happens and Baker Mayfield up and down so much that it almost it's almost too much to watch. So that's too bad for ob Jay ESPN. Skunk. Plans for an NBA like bumble for College Basketball Events in Orlando, the network told the Athletic de plans have been scrapped due to differences regarding the health and safety protocols that would have been required more than two dozen schools scheduled to play in the events owned by ESPN. The network says the move allows teams to have enough time to make other plans. He Espn still hopes to salvage the champions. Classic and Jimmy V. Classic at other locations and finally the Nascar Cup series round of eight at Texas Motor speedway post postponed again due to weather. It'll be hopefully race today but similar weather conditions are expected so it might be pushed to tomorrow And this is round what This is the Ron of aid so that they got this race they got one more Martinsville. A championship. Is the week after that almost over they go. So they need to get this race in for sure. They'll. They'll stay till they get it done. Well. All Right Patrick Mortgage Seven, twenty two, almost a covert, his palatial mansion after he passed out and fell over and hit his head he's kind of. Leading right now. is very upset about the carpet and the. she's telling Zerorez as we speak. John I gave homer segment you've got fantastic Giancarlo Zuckerberg while Mark Rosen as well and a thousand Spanish mornings on the fan. Dot Com. Welcome back to the morning show seven, twenty, eight, October, twenty, seven. Chris Hockey and Zach our some debt and the Great John Bonus for one more segment than you got cory cove. His Palatial Mansion were expecting Carlos Zucker momentarily, and Mark Rosen in just a bit as well. Hi Corey High I. I, I've been meaning to tell you guys this terrible story from the very beginning of the show and I'm GonNa, tell you because I keep forgetting. Dateline Las Vegas. They were talking about. This on a much more serious and much worse. Scale is the example of when you're driving down the road and you're doing seventy five in the fifty five and you're in the fast lane and there's a guy on your bumper like anything right and then you get over and let him go by and you just hope that there's a cop up there. And then finally you see the cop and they pull them over and you're like, this is the greatest day of in America and the history of the in seventeen seventy six. This is kind that only to a much much worse scale. Dude a minivan in Las Vegas driving around in the Strip. Right. Seventy am on Sunday? He was trying to reach out of passenger Van Window and smack people and hit people. Came how long has his arm I don't know but he's hanging all the way out the window right and they're driving up onto the sidewalk to try to smack people people knocking down. It's even more rude when you hit somebody on a bicycle, they fall over and Die Oh my God this happened on the Strip in Vegas. Okay. Tell up the bicycle died butts. He fell out of the window and as well. Oh. How about? So being a Douche. Bag. And you reach out and you and you hit somebody not they hit their head and die but You know. Nice Karma. Karma says I oh, you're gonNA. You'RE GONNA go to even things out. It's a good reminder for all of us to not you hanging outside a window and try to push people down. Well, it is that he right and we all need that from time to time. You're so right. Good thing because I was thinking of doing that later today. So don't do it I'm not going to. Thank you. I won't do that. Tennessee police were able to catch a suspected thief. After finding his severed finger at the crime scene. I mean. You Might WanNa grab that. I don't care how bad it hurts how much you're bleeding. You didn't just leave fingerprints. The finger. Now the Anderson. County be like, are you sure it's mine. Mine the county sheriff's office says fifty year old Hugh. Sieber. Tried to steal a log splitter. And cut his finger off. He. Also by the way, he was in such a rush to get out of there. He left a cell phone and. Other tools. Bind the investigators looked at local hospitals and found Sieber. They're trying to get his finger fixed up. He was questioned and they said this looks like he could be. Yours. And he had went ahead admitted they reattached finger and he went to jail turn off the log splitter. Even plug it. Yeah. That's a good idea. Plug it anyway if you're gonNA take it anywhere you might. toaster rules right make sure it's unplugged. Keep your fingers away from the log splitter. You always say that. What you always say. Say. You're with us. Yeah. Okay Zach's log splitter. Jokes Hey. You guys watch the the David Letterman show our guest needs no introduction. NETFLIX's Corey. If you watch them at all, I watched the first season. I have not seen the the woman Chapelle Lizzo anything yet the newest season I went down the rabbit hole last night. Because I had seen so much on twitter about the Dave Chapelle one how long are they and our run an hour it's a great conversation. It's like listening to a podcast only. Much more in depth because they also go on location to certain places. Especially, this year, it's kind of weird because they normally do it in a big arena or something like that are big stage. It's the two of them talking like Howard Stern, people like that. The ones this season because obviously they were filmed during covert some of them take place in in the one they lizzo was at her place the one with the they did with Dave, Chapelle was in his hometown. In his backyard tiny little stage in front of some of his neighbors and such like that and then Robert Downey junior was filmed before covert. So but those are the three watch last night. Okay and I couldn't encourage more to watch them. Dave Letterman, a great interviewer, but it's a completely different type of interviewer. Now because there's no commercial breaks as we talked about with Ben yesterday on the after Party podcast but the the interview you're going to get from a guy like David Letterman with a celebrity is is the same thing we talk about with Howard Stern now that Howard's giant celebrity other celebrities are much more willing to have real conversations with him a conversation you and are none of us could ever have with a celebrity because we're not on their level a lot of time. The people talking to David Letterman are just as excited to talk letterman and talk to them, which makes interview. Couple of highlights recording I couldn't encouraging more to watch the Chapelle when. The the obvious. Seriousness that he takes his craft shouldn't be a surprise but in the surprising thing was when it comes to comedy, how much it hurts him and how much how hard it is for him to do what he does to go out on stage and try to Dave. Chapelle and and how much that played into him leaving his show when there was giant money on the line, they talk a lot about it. It's really great and they talk about his home town of Yellow Springs Ohio, which we played in football by the way they always. They beat US badly, very bad about did but So that's a great episode. Then I went into the Lizzo episode she talked a lot about Minneapolis and how much she hated Dina. It's really something she worked at a restaurant and if you've got McCormick in. Corpus Mix. Yeah she's. She worked there next to South Bill and Hillary I. Can't, think of. Anything worse. Shirts Agree Restaurant I. I still there she worked downtown but I think that still didn't enjoy it that much. But she talked a lot about Minneapolis Minneapolis changed your life hostess of the year as she did not. Precipitate. But to hear talk about that and to just listen I had abigail come downstairs and watch the episode Corey because. Lizzo words of competence and self love and self worth are so inspiring. But specifically I think for young girls to look at everybody. You know you see so much hatred online. I legitimately believe when Lizzo says now I post pictures of myself I wear these outfits and I want because I legitimately don't care what you think of me and you hear somebody say that it's almost hard to believe especially for me because I care what everybody thinks. She legitimately doesn't care and it's inspiring and girls need to see that everybody needs to see it specifically young girls. That feels to me like that calluses become tougher and tougher and tougher overtime. that. She has been subjected to that feedback for a long time you and to get to where she is that callous had to be developed. The success she's found by not fitting them old and I don't mean that in like. I said we know what you mean. Yeah. For sure we know exactly what you mean. She's and she plays the hell out of the foot mankind and by the way she cut a rap track with David Letterman or was it was hilarious I encourage you to watch that it's great and then lastly Robert Downey Junior. Big Fan Robert Downey Junior Loved. The episode those to be accommodate team. Yeah it was hilarious. It's laugh out loud funny from time to time. But in that when Cory Cove, let them and got deep about his alcoholism, he started drinking eight years old Yikes Letterman David Letterman. Down Juniors either and that was the thing to watch them have that conversation and Letterman cut open vein and a couple of times downing not being A. standoffish. You're mean or anything like that. But a couple of times he tried to bring it back to funny and you can tell Letterman wasn't ready to do that He was ready to cut open advantage did and they had a serious discussion about the time Robert Downey junior sen spent in prison and how alcoholism affected David Letterman, and how bad and when he decided to stop being an alcoholic now art it was fascinating. Well one the things we're talking about Letterman, the guy that replaced David Letterman Stephen Colbert. Had Sasha Baron Cohen last night, and this is another sign that that late night TV has changed in the last couple of years specifically in the trump era but now more. So in the Cova Videira. Three full segments with Sasha Baron Cohen. So it like hey, Sasha's promote Borat to here's minutes. WE'RE GONNA ask three surface questions and promote the movie. We'll move on I mean he did like a deep dive on Sasha Baron Cohen. It was way better than a the same interview would have been four, five, six or fourteen years ago in borough at one came out. Yeah. I don't know if you guys saw the video that kind of went viral yesterday because Rex Chapman, tweeted it out but go back and watch Sasha Baron Cohen's little two minute clip that Rex Chapman tweeted out and watch him on Letterman last night or Letterman call last night. The dude is legit genius and when you watch Borat. Genius through the calculated stupidity for Man let's get into that guy talk. He is so clever. So smart and man I just can I vote for him? Yeah. He's British right. Can I vote for him? Man What a fascinating guy that guy is and I'm so glad that Stephen did the full three segments with a notch just five minutes and moved on it was great by the way if that becomes the model Stephen Uses from here on out he will win because that that is the future. That's the only way to do that. Yeah, I'm I'm sorry we're no shift topic. Out. The window. Is and. What they showed last year but they showed a couple of things that I hadn't. Hadn't seen or heard of yet. They showed the scene when he's in the country Steve Character and Borat too. which is he is borat dressed up as a stereotypical like Hick country singer and he got this group of like right wing extremist Sing Wuhan flu and about how like we should gas him like the Germans are like super aggressive and he got this group. To Sing along. Well, he told the story last night I'll make it really quick but he said basically what happened. Is a black lives matter group that was down the streets? Had A couple of people that figured out that Sasha. Baron Cohen was the guy on stage and not some random country Steve. So it started to spread throughout the right wing crowd that this is a plant and we're getting old. So it turned violence in like threatening quickly he said he had a bulletproof vest on just in case he said he didn't have that fourteen years ago when he made more at one but he wore a bulletproof vest and he said he paid for security because he knew if this thing turns out, he's in front of a group of a bunch of guns. So. They showed the clip on Kobe last night when the crowd realizes they're getting trolled, and this is Baron Cohen not country Steve. He basically ducks in runs offstage dive into a van and they tried to pull the van door open and he's like drive drive drive like he has to bail. Moly because he was in trouble and he said one guy. One Guy Pulls a gun. As he joked last night he said he called a pistol, but he's not sure if anybody calls it a pistol anymore. And he said somebody else on stage had a talk this right wing guy off the lead by just going it's not worth the dude it's not worth it, and then the guy put his gun down my God. So the guy was at least gonNA, threaten to shoot him. because. He pulled that prank off and. Almost watch it back for his explanation of the Rudy Giuliani scene. It's kind of terrifying. It's A. I I assume it's on like CBS online or something, but find Sasha Baron Cohen's. Interview from called bear last night it's definitely worth your time the him explaining the Giuliani zoom that's not make Guiliani looked better by the way. Scarier. Our man, the scariest thing about Giuliani in that scene regardless of what went down is the look on his face when he's flirting with that girl. Lillard it's just seeing your GRANDPA flirt with some. It's weird or seeing the. Nation of how alone Giuliani. Must thought he truly was makes it even worse slough? Okay. He he had a security guard sweep, the room and where Sasha Baron Cohen was hiding. The Guy just missed he was Sasha was in the room in like a hideaway, a I think in the closet or something. and. They swept the room to make sure that Julie was alone rudy was alone. So obviously for security reasons for Rudy Safety Y- and a Sasha points out that even makes it scarier because Rudy thought he was alone with a guard outside the door and this girl was alone with him and his in his hotel room. So he he thought he had a free pass. while. Terrify. Kobi's live at his Palatial Mansion John Boehner. Thank you. Love you, guys. You guys still doing show just impact the podcast we are We got the PODCAST Geek. Or stop by twins. Daily Dot Com. Fantastic appreciate. That were very late for break. We'll be right back on. The Fan. Time for Vikings. News. Presented lie. When? Really late in the last segment so we'll go right into the vikings. At his palatial mansion but Mark Rosen and Carly's occur in Studio Good Morning Good Morning Chris. Vikings. By the way because the by we can stuff, did you record with Kirk I did yesterday and how does he happy? You know what he's Great he's always the same. You really is he's not. Immune to the fact of what's going on I mean I think he realizes that There's been a lot of things are the negative about this football team. He's He puts his head down and goes to work like all of us to. Pay Thirty million dollars and he's he's a quarterback. So you know he's immune to also I asked him point blank I said as far as the noise outside You know there's a lot of criticism as one to be anytime especially when your team is one in five directed at the quarterback. And he goes Rosie honestly I hear more about it from. US anybody else I. Don't I know it's out there. I'm aware it's out there and looking at Carleen I'm sure Jason is as a pro athlete any. This ever known never ever and That's always been really. Okay, it's Score in a couple of weeks and people are always nice to monitor rights share creator. Jason Gunn two weeks about scoring I mean. Piss Carly's did. On the road right well. I think I think there's A. You know put the blinders on and you go to work and understanding that you know the fans are looking at it. I think everyone that. We're one five. Let's think about. Who they're going to draft express. Sure. They don't look at it. That way the players in that locker room don't give a rip about the NFL draft. Understand that you'll talk tanking for so-and-so tanking for so and so. It sounds good. The management will approach it with the trades they make looking for the future they are within Gakugei trading for more draft picks. That's signal. Unless you have a chance to win the Super Bowl it's it doesn't the rest of it is just noise honestly, and if you don't have a team that's ready right now to win the Super Bowl I don't care if you've finished with a three thirteen record or seven to nine or not I mean, do you think any team in the NFC east has a chance of winning the Super Bowl going to the super bowl this year now they're all. They're they're terrible I mean there's always a chance of course you get in there and weird things can happen. Cousins just put his head down offensively really look at this team. Of all the issues they've had they've been plentiful They could easily be three and three they. They should have beaten Seattle all know they have three, four, thousand chances any one of them they convert they win the game. Tennessee gain they really should have won that game as well but they didn't what they are who they the record shows. Right? That's always says are one in five team. So now against the packers this week. Built to have Alvin. Cook back on the offensively they have enough weapons offensive line's gotTa give obviously give give him time going be back now L. Lines back emerges of Jefferson so's enough to look at it. They got ten games left. This is the last three games of the season we're going Oh man this is pushes ahead and get it over with Fisher and and play a bunch of reserves they get ten. That's that's. Pretty much entire season. When you look at the scope of things self there's no like well, we're working on next year's draft or trade. It's doesn't feel that way doesn't work that way but Kirk knows he's. He hoti spend your off time while I looked at you breaks down with Clinton Kubiak the quarterback coach that look at every single thing that he's done and the he's almost. My feeling of a kirk to analytical excuse cerebral comes to. The way he approaches the game and he's really smart about checking looking at what's out there but it's almost like he he. On one thing and that's either that's going to work or. take a sack need a little Brett farve Tom Right yeah. A little chance every now and again I think that's one thing that is probably his over his career has been his worst fault. As being almost to focused too cerebral to sure of how this plays supposed to work if it doesn't then things breaking down around the sounds like a dynamite program when I hear this. Six tonight, right here on and these Airway Airways sounds great. We're going to do right now go to high CJ. Time now for the Vikings Report on the Fan presented by hy-vee where there's a helpful smile in every aisle. FULLBACK CJ HAM joins the power trip after this from high. Tune into here Marnie Geller with the power to morning show every Wednesday morning at seven thirty. Thanks to our friends at shields of Eden. Prairie Yes thank you shiels of Eden Prairie and thank you. For Tuning in this morning. Looks beautiful morning out there. It just got a lot better than here because Carly sucres here. And Mark Rosen is here's well well thank you. It's good to see your faces. You look out Brian Item Bushy tailed. Rosie bushy tailed Bush need a haircut. I like it. It's good. Brienne is here as well as Zach and Punxsutawney Paul still in Vegas by Gordy Kobe's. Mansion Hi, Corey how you feel feeling but he died feeling good doing much better could get good. Gory early I'm mark. I don't mean to you know to tell secrets out of school, but they were both just how much better does that you're not here. and. I feel bad they that I stood up for you. Not Real be I'm a self aware person I know where? All the time you know I wanted to take a quick minute to just thank you because when I came in last week to record my show which you were on. Thank you for having me on seat. Thank you for the. Cherry. Hill tincture. Everybody that I care about. This beautiful gift bag when I arrived. And I just had to take a moment to say. Day You tasted the Cherry Hill see cultivated CBD's it is starting to change my life. Everybody you care about is probably having a really good experience. That's right. Yeah. by the way Hawk and not only were you super generous with everybody in the power trip morning show everybody that works hard. I got an email, all the guys and gals downstairs de Brian at the Deli said thank you so much for the gift. Basket. From cultivated CBD I. Know they're super pump that that thought of them. So thanks to them I just want everybody I care about the try it you know what? The benefits are great. The reason they're doing this to me Rosie's because somehow I mistakenly did not put meat sauce on my list I know. I'm aware that I heard about this. About how bad he was. Not even from him. I knew the story he's got to know that I. It's me. Obviously made a mistake, I didn't put his name on the bag. I'm so sorry it happened I thought Oh dude. The Guy that checks your membership card at Costco in St Louis Park. That he loves it to. Jimmy walking by mouth you're feeling good man I. Hope you're enjoying it and and he's got Sausa- some mean he would know that I didn't mean to do that on purpose. Why would he assume that I didn't do that? Did It on purpose I just? I don't derail the show, but I just wanted to mention that. I'm glad you did. Thank you for doing night. Forget very kind words came up organically. Carly today here the new nickname yet I know you just kind of referenced it in passing but have you heard about Punxsutawney Paul have not? if you go to Vegas with him, he he comes out sees this shadow and then runs right back to his room. He does that a lot punks Itani Paul always done rows. It's the weirdest thing that he would be the guy that would be partying all night because he has to get up all the time. Now every time we go out Paul with the bed, what time is eight thirty and that's why he's punks a tiny Paul. Such a good. It was extremely. Came up with. IDEA. I don't know just the group. Three, ten and Brandon Dr. One of them came up with it. He's not in any of the pig knows is going to say that every picture of seen with those guys all have their mask on pretty much and and sauces in India them except for the left to the airport at the airport, he's the only adult. If he went there, well, actually I give them some money to balance. Right by good for him. Sleep punks tiny heavy on the PUNK is funny. The Old Punxsutawney Paul. Off She ever going. To get back, it's going to be one of. You'll be throwing things out here. We'll come back. Rosie. Come back. Thank you for that again. Great Show. Is it on again this week? Yeah you February six. Seven. Yeah, seven o'clock on Kevin Costner. I love. She's extraordinaire. She's Co host and producer. We are both also. Mar House and the producer. You've just growing up. Which one I think we should just ban five and talk sports because you. Know. Heeds time for fan five brought to you by builders and remodelers. Builders remodelers have really appreciate. gave me. You're the Derek Jeeter of the fan. You're welcome. Yes. Guest bathroom. Bedroom absolutely right, everyone. Because you've slept with. The first one that would get one. Yeah. Well, he didn't earn it I'll just. Ask. SAUCE GETS BACK IF PUNXSUTAWNEY tiny Paul is still in Las Vegas the packers minus six and a half on Sunday a little surprise. It's not a bigger spread in that considering the Vikings or one in five. The packers are five one Aaron riders looked awesome on on Sunday against. Houston that was an easy win Rosie I hope you had money on that game I did. Get on the absolute. Favorites and I can't believe they're only six and a half against the Vikes at home. Well, the the three and a half was surprising considering you're playing Texan team that you know really the they changed the fire to head coach after the Vikings beat him and been pretty much of a mess all year long in in Green Bay, just had their way early on Davante Adams they were playing Rogers and Adams, just playing catch and they the rest of the guys are standing around. So I I agree with you I, I I would think that the number would go up Green Bay has those moments but it it. They can just play down their opposition and maybe they're looking at it that way. But given how the t took care of business against the Vikings in week one here. No fans of course at Lambeau. But nevertheless, green. Bay's playing a really high level and after watching the bears last night they are definitely the class of the NFC north and. Will Likely be an NFC championship game there unless they suffer some sort of crippling injury of the pretty good role right now. The cowboys have made it known to basically everybody that Everson Griffen former Viking is available via trade at two and a half sacks eleven games with thousand this year. But despite Dallas being in the NFC. So they technically are still in this I. Think they realized that with Dako, for the year and Adult Dalton out with a concussion that two in five even if they fight back and win the division seasons mostly lost so they're basically starting to do. What the Vikings are doing and waving the white flag. So I know a couple of people have said let's bring Everson back. I don't see any reason why that would make any Ciro since but that's his people being nostalgic I get it. But Everson Griffen probably going to a contender and probably away from the Dallas Cowboys. Yeah it's Trenton guideline week away a little less than a week away are exactly the the day So I See the Vikings are saying they're saying all the right things and really we see a lot of trades made I don't expect impotence. WILL THEY TRADE KYLE? Rudolph. Could they trade Harrison Smith the trade? Anthony. Harris. All these guys Rick Rick Reilly Reilly Reef, the sports writer contracts expiring and dealing with that. Yeah. There's always a possibility if it makes sense from the salary cap. Because the salary cap keeping my next year Christmas but he is going to go because of the pandemic it's going to substantially go down I think I read something like one hundred to one hundred, seventy, million, hundred, seventy, two, million from to sixty were there right now. So they're gonNA take a hit I mean it's just that's just a fact I, think all these teams are looking. At the NHL is going to have to be dealing with right now without fans, they don't have the TV contract phone these think they're gonNA fold. Up The whole. Really Negative Jason doesn't want to hear that this morning. Listen Oh. Oh, tell don't tell me said that. State. Levers. Marnie brings. Up Tuesday well, anyway. It's it's going to be an issue for every everything everyone going forward. But the NFL is definitely going to have to deal with that as well. Christian McCaffrey of the Carolina? Panthers considered a long shot to play Thursday but not impossible according to some sources because he's back at practice although getting the Vikings if you really care. Vikings hosts, Teddy Bridgewater and Krishnan hampering about five weeks so. Long shot to play Thursday unless he has a weird major setback when teddy comes to town in about five weeks. Christian. McCaffrey will be back on the panthers. That's exciting team when McCaffrey's that's that'd be fun team to watch. Absolute. So great to have him back you fun fun to watch the World Series Game Six, tonight seven o'clock the roller just right after I guess seven o'clock the dodgers going for their first world series title in thirty two years with a three, two lead over the raise the over under tonight is eight hard to believe it's been thirty two years Kirk Gibson home run right? Nineteen eighty-eight can't believe what I just cardiac. Correct and I just you know with all the money without a salary cap money they've spent on on teams and players and and the Yankees has been a while since week is one one but thirty, two years for the dodgers they're playing You know the the budget minded Tampa Bay rays who don't really pay anyone any money so it's it's been a great series I you the fan I'd like to go to seven. So go race tonight. So well baseball. League. Right Complete History. Go to completion. Last. Night the Rams went twenty, four, ten over the bears. Polls was terrible. Hicks Goth was a little bit better two touchdowns two hundred and nine hundred yards. The Rams Defense was just everywhere the bears and rams both now five into much five and two looks I mean, it's amazing reading a bear fan saying. It's as if you're reading about the vikings were one in five they are team sucked sucks. He's never going to be able to do anything falls just okay. We don't have any offensive creativity. We're not going anywhere and they're five five and to to have a opportunistic defense day. That's how they scored last night. But Brian Greasy was up in the booth. I. Watched the part where he goes well. I talked falls is saying that plays are sending in. I. Don't have time to to try to throw the ball I'm gonNA get buried by Aaron Donald I try to run this play, and that's out of the theme of an both kind of denied it a little bit after the game but. It shows you that you can be a five and two team and still have plenty of issues in the bears have plenty of issues on on offense but I i. think most people would take their position right now over pretty much anybody else in the conference except for the top two teams. Right. That'll basically. Says something they WANNA add. We. Guys. Do. You and I like to take over this. Well should we talk about balls? The balls they use in the things the game thing. I do have to say this. Isn't that guy the dodgers pitcher was he the One? WHO MAKES THOSE FACES? Joe. What's his name Kelly Yeah? Don't You think. Yeah. So you just brushing just literally. Just brought women's stacked like A. Girl right there. You. Brought up the square shack and we went to a hard sports back. You talked about Cute Guy, two, thousand, eighteen all over. Much better. What are we going to get to the point in this society where athletes are judged for their skills? Unbelievable, what you've just done to us as. The guy's a good paycheck. Drives me, nuts. So you know. Whatever? Tomorrow. Got You back. Good. Good. Glad to hear it. Right. All right. Well, so that'll do it for sports. When we come back, do you WanNa, do headlines core handle that you ought to do I can't wait I will do that, and of course, we will also have fill in the little bit later on it's a blood match between core. Rosie and Carlier they. Just hate non each other. They're just ready to throw down. But right now before we go to break me I, talk to you all please about light stream dot com. That's like lights dream dot com the bottom line is this if. KFI. Thanks, all of our veterans and their families for their service join us in celebrating those veterans with the iheartradio. Salute to veterans and shows them love to the veterans in your life. But I already dot com slash veterans to learn how we should have download or subscribe to the vets. You should know podcast an iheartradio. Pollen love back. Thanks he'll. Here. Did. We all miss something that wasn't. What just happened. Here I'm sorry that's true in a million different ways but I'm not sure what kind of connection happened. What what did we miss between? In. The nineteen seventy five, and it's a really great song. Wait kind of drop sweet foods gets in. The political statement by the really just going to drop in a minute and it's about drought. Careful. It's about drought and waiting for the drop ready for the job and let's go stop. How long is it GONNA be a long Drop. The hanging onto the drop that we're we're GONNA drop. Okay. Well, this is no drought. There's been no drought Thursday. I feel like I'm on the edge just. Yeah. This is gonNA. Cool up but we're waiting for a drop corey I was told there was a draw. After this chorus. Banner. Morgan. Fair-. Sitting at the top of the demon drop and she's sitting there I've been there forever. It's like a band that I loved a couple years ago called night riots These guys are up ten times bigger deal like one hundred times bigger deal but I like to eighties vibe. It's cool ask. Really good. Where's the drought? You know seven million drop you realize this show ends eight. Things to do right here on the nine hundred, seventy five to get with two, thousand twenty. Fast? Forward. That go back. I. You missed. Gallia miss the. Time. That's the drop. That's cool. Like more of a slick then if you're. Just like that I did background vocals for this. Like You. I can just tell by looking face Rosie's unimpressed by the drop. I just the best price used the best. Go No. I'm just thinking back and forth back and forth it's more of a cough drop. Best part of the song of the start. Could you stop doing that because? In A. TIME WARP LISTEN TO THE MOVIE I. took. Like, a minute ago where blanking car shooting heroin. Virgil. Things no, we're not. We're doing a radio show. Nobody wants to hear right now. You're rewinding things it's like I'm back in a cassette. No wonder Jason doesn't listen. Point. Combat you. Again a power trip morning show. You're leading a reminder station. Roseanne Carlin in Corey and myself and it's time for headlines. Now. Four. I was. Brought to you by our friends at Bud Light. Seltzer Hey. Thanks Lights. Three National Black Cat Day National American. Beer Day so feed your black cats American beer. Interesting. Is Not a euphemism. Those are two things. Okay. Hey man whatever odd combination. Feeding American beer please film it's and send it to the power to morning Joe, don't do that. Did you show Carleen Rosie, the prostitute video that crucial sent me I have not Expert. Yeah it's a it's a nude lady that's about thirty years younger than the old dude in the hot tub and then. Carly just viewed as a separate video of the old getting out of the House of it. Well. So wait where was crucial during filming it filming. So, don't wait for the break again public spacemen. Space. have to worry about it so you can see. The lovely. Young lady who allow is completely nude. In what we are guessing private pool because obviously there's a no one else around and then the older gentleman. Gets out a little bit later on. and. Oh Yeah is sport and I'm. The beaver know. Exactly Yeah Yeah. This is happening in Vegas. Got Scared. Be So. I know and I. I would get out. He looks good. You're right. All right. Anyway Oh, yeah? Okay. I. Also the what this phone now he's from wet and no, it's brand new, but it's an se it's small because I get tiny ends. Yeah I like. The button. To home button shame US Korea. A whole bunch you remember the whole I know here's what happened. I had a really sweet like Iphone X. or whatever, and I fell down because I'm old and I landed on it it was in my back pocket and I broke the hell out of it. I couldn't prove that I worked here because station phone because I don't know who works here anymore and who doesn't. So. True. So I went to Louis because you didn't give everybody gift. Bags. and. Anyway. I. Finally I was like I have to have a phone. I'll just by that one what's the cheapest one you got and it's this it's the it's a new iphone, but it's the SEC at the tiny. Worth so much. It's it's my work you. Can't see giant phone you can get me a fifty inch screen I couldn't see. A need. underplayed. Resuming glass zooming glass. Magnifying glass. Thank you and we have A, we have another billion view youtube video this time it's the one that we talked about last week because she was a part of a dual of the decades last week but Whitney Houston's I will always love you is over one billion views. You're welcome. Back. Isn't that from the the movie? The bodyguard You know it was that only three hundred million before we talked about it. Kevin Costner waste. Yeah. No kidding. No kidding. I love. That song that voice and you're like Oh Kevin Castle I know. I was. We were I in. HOUSTON. Women. That's the equivalent of watching that prostitute get out of the. Size. Carly do large gut. Cosmic one hell of. A. KFC is selling its fried chicken centered fire logs. Again, saw a story in this last night, and they are really that popular. Is that what you want to smell fire. Out like an hour here. Networks. Store. Less than? One? Mile she logs. Every four years we hear a whole bunch of Americans say they're going to consider leaving the US if so and so wins. It's probably the worst it's ever been now. In statistically I, guess that back up because nine percent of Americans even though none of them did nine percents said they would consider leaving in two thousand sixteen. If they're candidate lost this year, it's up to sixteen percent claim they're going to consider leaving zero point zero, zero, zero one of them will sixteen percent say they will sitter it. Through in the options, right? Now, it's not like Canada Mexico want us on the you know who take us allowed in Canada, I know. Very few places we're going to safari somewhere. Have you guys heard the and this is not a joke sounds like I'm setting up a joke I'm not the latest tourism. Commercial, from Kasichs DOT, which of course is where Borat is i. saw him on the first time they did a great rosie. Radio look so good I can't wait to really interesting Genius Giuliani story was hilarious Corey was saying the first phone calls. Sam's a little upset about it embracing it listen to their tourism ad that they're running right now. That's very nice. That's taking. Slug? For. So I think they'll have us. You can go to stuff we want to go there. Keiko's Dominican Mexico. Cornell either it sounds like what I heard is is going to bum me out that I'm not GonNa be drinking with you guys tomorrow because it sounds like carly doing borat impressions is worth the price of admission head. The how Gaeltacht, Talk Talk. Only. Way To. Really good. Actually, we watched the movie and I said that after Jason, that's a good while he loves you. Pennsylvania was arrested after he was running around at five am screaming that he was the son of God and he was throwing mailboxes. You is. Appropriate reaction. Right these drunk. Went David Koresh on it and he threw some mailbox which actually sounds like a lot of fun dressing up a real estate listing from Kentucky is going viral for a couple of reasons. One of them is the the reason why I brought this story up. It's going viral because of Three D. Tour of the House that shows some super strange features like a storage warehouse, an entire room that's shower and two side-by-side toilets. His in her. Comfortable I don't I. Honestly don't care if I'm married to. Keri Russell Kane up jody comber or last girl I'm not getting side-by-side toilets. One. They wanted to. Get it. No no one gets it man. I'll tell you I've told the story on the air before but. WHO KNOWS I. We went to play national trails was high we played. You know how you go to the visiting locker room it's always just terrible. this one school had visiting room that was actually on the field. Almost it was like sitting it wasn't used for anything other than the visiting football team. We walked in there in the locker room at I'll never forget as long as I live. They had just toilet's sitting there. No urinals just toilets and no stalls right when I walked in Ross Roberts and Dean Jenkinson were each sitting on the toilet holding hands so. One of the funniest things seen in my. Forget it as long as I lead. They were sitting there pooping with their pants down holding hands. No one has ever sounded more Indiana than Dean. The best guy ever guy and the kind of guy that will hold your hand while you're taking a. Saucy before he started hating me. Tiny Paul. We always talk about one of these days. We're just GONNA kiss just to make everybody laugh. Because you have to go extra mile to make people these days. Rosie you really do that sort of like a prequel hoosiers. The locked Iraq Barbara. Added the sequel actually. Last but not least, let's end on this. It's the end of era. So tough break for Kyle Rudolph in Christian, ponder back in the day but Chino Latino. After twenty years. The owner said it's possible that it may reopen at some point in a different location but the the uptown classic club Chino Latino closing after two new idea do. You, do you know how many? Lakes stories back in the sludge and lake? Days? I had I had to hear about. Chino, Latino. Those four or five times but my God. It like Monday, sludge in late shows, we're a nightmare for me because I don't do what you gotta use. It I'm telling you that's what our relationship soured is when he could clearly tell I didn't give a rat. Bite. Latino stories, he really was like you don't care. Don't. I'm like I don't care if you're meeting cougars at Chino Latino. Stanley. I think most people I understand that it's been kind of a downhill slide for the last three four years at least over in that that restaurant. And sadly now, more than ever lot of uptown is shutdown apple store shutdown I mean there's Calhoun. Square doesn't really anymore they call it something else seven something or other Samurai. Calling it but the uptown. The many of us grew up in loved and sheriff is gone I mean it's just it's just not there anymore and one more salvo with everything else happening donald shutdown already they're opening. Story Secret I. Just said that Town Hall Tension Can pay attention if you're away for the record I love Henry Lake, and here's the deal is Is I guess my guess is that despite she knows. I think he's GonNa find other spots to go. He already had quite well. So my guess is lake will not go down Spike Ovid in despite the closing of Chino Latino goes on for good luck lake. All right. All right. Well, that's the headlines Segment we break we come back and it's a blood feud. have thousands of dollars on the line for. Fill in the blank isn't millions now. The Hell's going on what? What does this? Or on the floor. I love those guys Really good. Morning. Celebrate come right back after this on the. The Fan. Hey quick trip is giving away a truck and to enter by your new stop by local quick trip purchase any. New pothole. Rosen Pizza. By the way, if you're meat lover trying to meet sweat speech loaded with nearly a half pound of spicy sausage and pepperoni delicious that's it. You're entered and triple select one winner each week with a grand prize event in December two ord an f. one fifty from metro four see store for details. No purchase necessary. Pepsi Pothole Pizza and quick drip. Proud sponsor of football in Minnesota. That's a tongue twister. Yeah. You'd be able to re. On a computer growing mushrooms in there. Actually Max just dropped off so. That's my real new full-time job. Loved theme you. Go sit US I. didn't mean to I'm sorry. You guys not. You. So, he's in here because he's ready to play in defend his title use good and fill in the blank very good at it We miss you. Max. Glad. You're here. You've got a fulltime job or too big I. Now, we're glad to have you. Cory cove, are you going to be playing along from your palatial mansion as well? Okay good. I'll go first right well here. Why can't she? Here we go. It's time for everybody's favorite blank filling game show fill in the blank with your host. Hockey. Thanks. Sweet to hear. Your. Voice. Please wake up. I'm wide awake. excatly. I. Is the game show bed. Okay which is on the. I believe music page anyway because up. Yeah. Okay. By you know what's good good to ask that question as we're doing the bit. At, six minute commercial break time Kansas growing mushrooms. Sit Search. Actually went into the studio in scared the hell out of them try to wake him up. Yeah. Didn't work. Number one had a blank. You need to fill it. Here we go. The blank video game franchise have lawsuits the Tober. To wake myself up. The blank video game franchise has lawsuits that total over one billion dollars against it. Why flank video game franchise has lawsuits that total over one billion dollars against it that's good. News I don't find. Thank you. Blake video game franchise. One that comes to, mind I. Don't say don't say it. person. Assignment okay. Good. Number to. The desert named blank. Translates. To, take me to heaven in Italian. Which desert by which name? Has Its name that translates to take me to? Heaven? In Italian. You Okay Bye. I thought you saw something on your Weiner. Who? Take in Italian. Number three. Blank I'd people have higher alcohol tolerance than everybody else? what color is city out. Oh, I thought I could just say to early on. have. Heavy higher alcohol, tolerance. Than all the others. Too I. Know it's the cried people. To U.. T., Weei. Number four, you can die. From staying UP FOR BLANK STRAIGHT DAYS Let's Guys Vegas Kidding. Paul Sleeps. The whole time I'm sorry. Punxsutawney Paul, the entire time he's. CAN'T I. Could die right. That's about what if it's the opposite again and what if Punxsutawney Paul has slept so much he's going to die from oversleep. Then he becomes Punxsutawney Perish. Those traveled. And finally, Number Five, the department store blank once sold houses. Yeah. The department store blank. One of the department stores once sold new houses. I think I knew. Interesting, serious. Do you released is? Is, WHOLLY DEPOT DEPARTMENT STORE No okay if you want it well. It's a story that has departments in it. All right. This just the first story could think of that. All right here we go back to defend his title Max and Carlene and Rosie and Zach, and by the way these questions by Brienne Nice Shot Brienne done. From home number one, the blank video game franchise has lawsuits the total over one billion dollars arose, ipe. I said grand theft auto. That's what Rosie said what did you say Max I said grand theft auto to what did you say carly's? Grand theft auto no kidding. What did you say core? I had something slightly different. I wrote Down Gta oh interesting. Zakho hot coffee and theft auto. No. Kidding. The correct answer is grand theft. Correct. Coffee Been. Lawsuits right there. There you go. That's number game ever ever number two. They desert named blank translates to take me to heaven in Italian row. I should Tierney shoe here. Oh. That's what I say. Go. July. Do he says July to everybody but but Zach, who says July and everybody but Zach got a point. Sue thing. If you're had the lights on her that you probably know. Number three. Number three. So I just said, thank you blank I people have a higher alcohol tolerance. What color is row off the chart a little bit here. Thinking might be a little difference I said Green Green Green. What did you say? Max, I said, Brown just from personal I. Say. My family has brown eyes in most everybody's an alcoholic. Okay. On that quit bragging. Carly Blue Blue. She says again, personal. You say I figured it had to be one of the recessive colors, right? Because it's otherwise all of us would have stronger tolerance. So I also said Blue Lewis well, and what did you say Zachariah? Hazel he's tasted. Interesting. The correct answer is blue. Right now take out. Jet. Blue. Eyes. Croation do that Maxon Rosie have to and Zach has a distant one we got to number four. You can die from staying up how many straight days row. Sickening. ozark. How long they meet Jason Bateman St up the. Seller. On that documentary? No. No. Document Forty five minutes I. Think it was it I said. Six, six Max I said five five. Eight eight core I'm with Max I said five. Zachariah. Chris it's five more than you think fries well We will give it to the person who's closest in the actual answer is. Fourteen. Days. Fourteen days as. Every lead currently how you? have. All four so far. I. recorded. You didn't have much shut my mic off what is. Lady. Bird. Fairly, well done finely for the win. The department store blank once sold houses Rosie. It has to be old school. So it was one of two either Montgomery Ward's I said sears. Sears interesting Max I said serious. Did you say? What about you corey Kabul God I said sears to. Oh. No. So we will have a win for no matter what what did you say Zachariah? Dayton's Dayton's interesting. He thinks that. The correct answer is. Ladies and gentlemen. First. Time. Anybody's gotten five career. Now. I. Have Five, hundred hundred. Russians. Green. Saying. I'm just asking questions. This. In wealth. Today. Blown. Normally. nope. Aren't you? Glad you stayed Really currently fourteen days. A-. Again I I have no idea. The answers I have no idea now that. This. Women. That's fine. You guys it's Hendrix's third. Birthday I remember where I was that day. Was this. Creepy. Story of Tim, this morning is sitting on the couch and I walked up to his cute little face I sing happy birthday and he goes Moma was can you please move out to my way? I can't see the TV. And I love so much and you talk with British accent. Is You know he said move move move. I love you. Bye Bye. Bye. Bye. Yeah. A. Little Dutch boy he does he does. Happy. Birthday Hendrix who in our TV viewing experience is very. Never. Take remote away from him. Yeah? Pinterest. So, we can watch Paul. Patrol. I. Love You guys. Thank you guys. Thank you for being here. Thank. You Rosie. We'll see you tomorrow. GotTa see you again. Soon your show is seven o'clock on Friday. Brand Nice Shop Corey. We'll talk to you down the line tomorrow until then everybody take care of yourself. Please be nice to each other and don't worry too much about things you can't control I. Love You Poucher Morning Show. See Tomorrow on the fan. In back to today's our trip morning, show forty here previous podcast us on the iheartradio. More KFI DOT com.

Zach Las Vegas E. Paul John Boehner corey John Chris Vikings packers John Zach Halverson Anson Batman Saas twitter Brienne Minneapolis NCUA Cherry Hill
CRE News Hour 9/13/2019

Commercial Real Estate News Hour

59:41 min | 1 year ago

CRE News Hour 9/13/2019

"From the business desk at St Broadcast News this is the C. Arena news hour. I'm Steve Lubeck. It's Friday September Thirteenth Twenty nineteen in this week's edition of the Sierra News Hour will learn about neuro diversity and how that's affecting the way office space is being designed with K. Sergeant of design firm H Okay we'll take an exclusive look at the building products industry with Mark Mayfield the recently appointed. CEO of Building Products Company Sango Ben and will explore section one seventy tax advantages just for nonprofits and charities that WANNA buy commercial real estate properties with giral baths and Robert Blakely of Tampa based real estate advisory firm wealth. We'll be back with the top news stories right after these messages turn earn your podcasting passion into profits the book the business of podcasting describes the business side of podcasting including how to become a professional national podcast. You'll learn about position your clients expertise who podcasting to plus the best business models how to find clients and much more visit the the business of PODCASTING DOT com today. You can't wait for the media to cover your company Buzney. You have to be the media. Take advantage of the power of audio and video. It's the best way to showcase your expertise to prospective customers. Let the Lupatkin you bet can media companies handled the technical side. We're award winning audio and video producers. We can help you produce podcasts and video programs remotely or in our fully fully equipped studio in Cherry Hill visit being the media dot Com for more information. Thanks for joining us on the C. R. E. News Hour. We just like to make note of a new option on the show page for this episode. You can click on the purple. Take the survey button right below the podcast player and share some information that will help us get to know our audience better. We'd also appreciate your considering financial support for the Sierra News Hour by visiting our our patron link and becoming a show supporter you can also leave a tip in the tip jar by clicking the blue quid button right in the middle of the podcast episode page and if you're interested in becoming a sponsor of the Sierra News our right to me at Steve at St Broadcast News Dot Com and we'll send you the rate card for advertising and commercials visuals now. Let's take a look at some of the stories that are moving Sierra markets across the country Morais asset global investments is announced. It's entered into a definitive agreement to acquire a portfolio of fifteen the US luxury hotels from unbanning insurance group the deal would be the biggest cross-border real estate investment by a South Korean company and Solidify Murray's presence in the US best real estate market the portfolio includes about seven hundred twenty thousand square feet of meeting space and almost seven thousand rooms on bang invested almost four hundred million billion dollars in improvements since two thousand sixteen the fifteen property luxury hotel portfolio includes the J W Marriott Essex House in New York Ritz Carlton Half Moon Bay and Western Saint Francis in San Francisco Montage Laguna Beach in southern California Four Seasons Silicon Valley fairmont Scottsdale Princess and foresees in Scottsdale Arizona Four Seasons Jackson Hole in Wyoming and intercontinental hotels in Chicago and Miami Gabriel Hammer. Moore associates is brokered a three hundred million dollar plus sale of a multi property portfolio with more than eighteen hundred units spanning the high barrier to entry sub-markets of Northeast Essex and Bergen counties in northern New Jersey. The one point one two million square foot hundred and thirty four building portfolio is mainly comprised comprised of distinct in spacious one and two bedroom layouts some of which include duplex style options at select communities the garden style complexes also feature beautifully landscaped landscaped park like grounds and they're all close to schools shopping dining transit and adjacent parks municipal leaders state agencies and representatives of renewable energy energy companies will gather in Albany next week to explore ways to make New York's clean energy law work with passage of the climate leadership and Community Protection Enact New York made a commitment to achieve seventy percent renewable electricity by twenty thirty Alliance for Clean Energy Executive Director Ann Reynolds says is the fact that New York has passed that laws really exciting but now the real work begins. We have to get into the details about what it's going to take to implement at start talking about it soon and we're hoping that this conference is the premier forum in which those discussions take place the two day conference happens. Thursday and Friday September nineteenth and twentieth at the Albany Capital Center the conference will feature discussions on the challenges and opportunities for building wind farms solar arrays and offshore wind but Reynolds says reaching Louis clean energy goals will take more than building out infrastructure. We have a panel on electrification and efficiency because to meet the goals in the law. We're going to have to electrify. I five a lot of transportation very rapidly and home heating. She notes that achieving efficiency goals would sharply reduced demand while electrifying transportation and home heating heating will significantly increase the need for electric power. Reynolds adds that the Climate Leadership Act has an environmental justice component as well. We're also talks talks about making sure that disadvantaged communities get reinvestment. Do we have a panel on including all New Yorkers and the clean energy transition to full conference schedule is on the a New York website at ace E. E. N. Y. Dot. Org and we'll put the link to that website into show notes for this podcast. The BASCOM group successfully completed a two hundred thirty five million dollar refinance of an eleven property multifamily portfolio spanning five states. All of the properties are part of Baskin's third fully discretionary fund baskin value added apartment investors three most of the new loans are interest only with spreads over Libor ranging from one hundred and eighty basis points to two two hundred basis points and interest only periods of twenty four to thirty six months the refinance properties include the square apartments in Downey California Camden village apartments in Fremont him on California del Flora apartments in Redlands California courtyard on sixty eighth apartments in San Diego juniper terrace apartments in Escondido California south town at main apartments in Santa Ana California fifty second marketplace in Arvada Colorado Prescott Lakes senior apartments in Prescott Arizona mckinney ORCA departments wants in mckinney Texas fifty one and lyric apartments both in Las Vegas Nevada prolonged economic expansion a near fifty year low unemployment rate and a forty percent increase in non residential construction spending over the last several years has led to an increase in compensation for architects the twenty nineteen. Aa Compensation Survey says pay for architectural staff positions has risen by more than six percent per year since early twenty seventeen the survey says over the past two years compensation for architectural positions increase at two point five times the pace of growth for all professional and related staff in the economy cbre are- arranged the sale of a two hundred eighty four thousand square foot industrial facility in Philadelphia Pennsylvania the thirteen and a half Acre property at twenty four hundred Wacko Avenue was was acquired by Wharton Industrial Partners and Walton Street capital. The price wasn't disclosed. The seller is a zurich-based individual investor who purchased the property in twentieth six. Wharton Morton Industrial and Walton Street plan to invest upwards of ten million dollars to completely transform the site. They'll rebranded as Sophie Logistics Center improvements will include include installing a new roof leveling the interior floors adding new lights expanding and upgrading loading docks repaving the entire site painting the interior and exterior of the building adding new modern tailgate doors and fresh landscaping and other upgrades. The facility is expected to deliver early in twenty twenty some building owners in New York City now have an an edited incentive to create greenspace on their roof. A Green Roof Tax abatement has been available in the city for several years but few owners of taken advantage each of it in an effort to change that a new state law triples the tax break from five dollars to fifteen dollars per square foot in community district where sewers overflowed. Oh during rainstorms and that let green spaces it also extends the Existing Tax Abatement through July twenty fourth says Emily Nobel Maxwell with the Nature Conservancy the green roof tax abatement offers an opportunity for landowners to install green roofs which will in turn help make our city more or flood resistant more heat resistant and more bio-diverse. She says putting a green roof on a building can be expensive but the tax abatement can help defray the cost of installation and maintenance mental notes that green roofs not only absorb storm water they also have insulating properties that increase buildings energy efficiency and cut down on heating and cooling costs green roofs do show a return on investment over time so if that investment is made there are certainly benefits to you that property owner she adds the increased energy efficiency also helps reduce carbon emissions. There are other environmentally beneficial roof treatments like solar panel installations or reflective reflective coatings and maximum points out that having a green roof doesn't rule out other options. If you combine a green roof with solar you can get the benefits of a green roof and the solar panels will run more efficiently because of the coin benefits of the green roof. She says the next step will be for the city to determine which neighborhoods will be eligible for the new hire green roof tax abatements Admiral Capital Group announced its core plus investment platform has acquired fourteen five fifty five two hundred fifty two thousand square foot Class A office building in the lower tollway sub market of Dallas Texas fourteen five fifty five was developed by Cawley partners in two thousand eighteen. It's located on the Dallas North Tollway. Just north of I six thirty five property consists of a six story office building a three story amenity building which features a full service restaurant fitness center with locker rooms and an open air covered terrace with lounge seating fourteen five fifty five ninety five percent leased to a diverse mix of credit where the tenants Society Hill at Galloway to a popular residential community in Galloway Township New Jersey recently introduced a state of the art solar power system to benefit benefit the approximately thousand residents at the South Jersey town home and Condominium Community Society Hill at Galloway located approximately fifteen miles outside of Atlantic city consists of four hundred ninety units spread out over twenty eight well-maintained acres of Lush Green Property Key Bank Real Estate Capital secured twenty eight million dollars of financing financing and Federal Housing Authority loans for persimmon ventures. LLC based out of Baltimore the refinancing three healthcare properties in Pennsylvania sixteen million dollars went for oak-leaf manner north inland is Phil eight million dollars for Oakley Manor South in Millersville and four million dollars for Serenity Gardens in Cullman. They're all senior housing properties that offer assisted living and Memory Care Marcus and Miller Chap has announced the sale of the Grand Reserve a two hundred ninety unit multifamily community in Springhill Hill part of the Nashville Metropolitan area the property sold for sixty million dollars which represents about two hundred seven thousand dollars per unit the grand reserve is two miles us from interstate sixty five about fifteen minutes from Franklin and thirty minutes from downtown Nashville. The General Motors manufacturing plant in Spring Hill is six miles from the property other nearby employers include Comprehensive Logistics Magna and writer Logistics Twelve building three story community was constructed in two thousand fifteen and two thousand sixteen on thirty thirty one acres. You're listening to the C. R. E. News hour from St Broadcast News. Dot Com Tom. About fifteen to twenty percent of people are neuro divergent urgent that means they have one of collection of conditions that may include autism spectrum disorder attention deficit hyperactivity disorder and dyslexia employers are beginning to recognize that in addition to simply being the right thing to do accommodating neuro diverse people can provide a significant competitive advantage. This is leading to a range of more inclusive policies programs and procedures though this recognition is only just beginning to affect Workplace Design H. O. K. The global global design firm has a workplace practice. They've issued a report designing a neuro diverse workplace that explores how organizations can create create physical work environments that support a full range of employees both neuro typical and neuro divergent. We'll put a link to the report in the show notes. It's for this podcast. The report includes interviews with experts as well as suggestions for design strategies operational changes and individual adjustments that can support neuro a diverse and neuro typical staff alike joining us to talk about the report is case sergeant a director of the H. O. K. Workplace practice case is based in Washington. DC and leads project teams that solve business and organizational challenges related to Real Estate Business Process Strategic Planning Workplace Strategy Asia and Change Management. She's authored numerous reports and articles on the workplace as a speaker at many industry events she also mentors women through the DC chapter under of upward which accelerates career advancement for Executive Women K. Thanks for joining us on the Sierra News Hour. Tell us a little bit about how you came to do. I create a report on designing a neuro diverse workplace and also What are some of the issues that arose that made you think this was something you had to do? We're very unfortunate that we get to work with clients all over the world to see some of the things that are starting to emerge and probably about three or four years ago we started started to notice the increase conversation around mindfulness and the reports about stress and what's that doing the what that is doing which people in the workplace and released started thinking about what's the new generation that's coming into the workplace and and how do we accommodate them and multiple. The factors really started to point to this notion that there's a rise in neuro diversity and that we really aren't aren't addressing that in the workplace. If you think about all the things that we do to accommodate kids in school who are neuro diverse verse you know they don't outgrow it and so once they come into the office there's a stigmatism associated with that and most people don't want to admit that they are diverse and so they don't and that sets them up. I think in a lot of cases for failure in the workplace because we haven't really accommodated accommodated the space to be designed for them so we started putting all these dots together and started to do some more research around that and in Europe the stigmatism associated with this is really started to come off both of the princes of come out and said that they've had issues with periods of depression and or stress several people in the corporate world of come out and said that they've had nervous breakdowns downs or that their diversity is is impacting them and you've got some amazing people Richard Branson etc that call their neuro diversity there superpower because they really got to look at it like the neuro typical tend to think think in a band they tend to think you know kind of in a given parameter where people who are neuro diverse amazingly brilliant certain areas but also so have some real challenges so they can be really creative or you know really hyper focused but then there are other things that really bothered that there's they have some sensitivities we're living in this world where we have more and more people that are striving for creativity being able to tap into the people that at that comes naturally to or can deal with stress naturally just seems like it's a really important thing for us to do right now so when you talk about if someone being neuro diverse or a stepping neuro diverse and people individuals being neuro divergent. What are we talking about? What some of the typical kinds of neuro divergence agents and how do you factor that into what you do in terms of designing office space nerd diversity can cover a a lot of different aspects but it's it's in the sense you know people that are on the autism autism spectrum disorder so they're are on the scale for autism it can be it can be eight the HD it can be dyslexia and one of the things that isn't really studied that much as also and how it's impacting us in the workplace is Parkinson's because a lot of the research around neuro diversity is geared towards people in learning our Educational Environment Parkinson's Parkinson's doesn't typically affect people into they're in their fifties or sixties and so you're far out of school by that time and quite frankly a lot of you know it used to be you'd be out the workforce by that time but as we're living and working longer and longer we're going to have to deal with more people that are getting early early onset of Parkinson's in the workplace so neuro divergence are people that are basically wired differently and they have incredible oh strengths but they also have some challenges. So what are the things that you do to make the workplace comfortable or welcoming for people like doc so we have a whole plethora of things that we really talk about right so you know color can be a very important clarity. AM space making sure that we're giving people clear lives of navigation. We're not making spaces that are overly confusing making areas for people where they can control control the amount of distractions indoor engagement that they have because sometimes it's very difficult for nor divergence city like cut off the noise and and a and a lot of people stabbing areas where they can go and get out that excess energy indoor you know they can move. They can physically engage. They need some form of stimulation. Stimulation is a big issue whether it's whether it's acoustic whether interest visual or whatever it's physical stimulation and so giving people options and choices because just like that you might have with a physical the disability rights somebody who's blind needs something different than somebody who's in a wheelchair and so just you know the same thing. I think applies to no divergence. There's a variety of different things and it impacts different people in different ways so at the end of the day what we're really seeing is we need to create environments that have an ecosystem of options and choices so that people are virgin urgent can decide. What's the right setting them at any given time. How do you go about coming up with those kinds kinds of choices in design and physical features Did you work with specialists in these areas of neuro divergence do you have people on staff who have these kinds of conditions so so yes to all of those so first of all one eight people as Neuro divergent and if you think about the creative the creative industry we probably have more of our fair share than most industries too. I think so yes we absolutely absolutely do and nowhere that we have gone and talked about this. Do we not have an incident where multiple people in the audience will self identify themselves sells or a close family member as be nerd divergent and really struggling with that and it's it's just because we're not treating environments that are friendlier conducive or inclusive for the we did talk to a tremendous amount of experts about what are they seeing and however they going about this and what are some of the rules and the guidelines and the other thing. I think is that you know we tapped into our core. As designers we absolutely understand the art of space that's right and the art of design but there is an absolute science behind what we do and I don't think most people give that much credit right. I think every the decision that we make as a design firm. There's a reason and a purpose behind it. Nothing is random. People will say you know Oh. I like this color. It's like okay well. That's that's nice. That's why you have a house. Do whatever you want at your house but you're hiring us to do what works for you and what's the most conducive so if I put somebody in a uh-huh an environment that's red ultra patterned and loud excetera. I mean you can you can just physically and understand what's going to happened to somebody. In those types of environments there uber stimulating and people tend to short circuit but the color Palettes that choosing the textures the introduction of natural natural elements woods the lighting levels all of those things can really set either a very calm reassuring grounding safe-space or it can create incredible chaos in an environment and so we can control and manipulate the environment and people who are in just by the way that we're designing them and that's a very powerful tool so we challenged our designers to to really think about how do we create this ecosystem that is well balanced and that will give people the retreat and and the types of spaces that they need to be successful one of the things when you're trying to persuade companies that are designing office space that this is something valuable to do in your report you talk about some of the success stories that companies have had with being cognizant of the need for spaces that accommodate neuro diverse employees. Can you describe some of those cases and the successes that companies had yeah sure so you know I mean there's there's a lot of companies. They if people want to be super focused K. if you put them at the wrong type of environment they're going to be so distracted that they're not going to be able to focus so whether it's the combination of the Color Palette whether its duration of how long they're sitting the type of settings that they're in how they're facing access to natural daylight all of those things start to come into play so if I'm designing space for someone who really needs to focus and concentrate think about like somebody who's writing code or processing numbers or doing research you you don't want to put that person on a busy intersection on accord or whether they're physically watching. All these people walk by their hearing all of these things you know there's just there's there's just kind of chaos in their field of vision and acoustically there's chaos you wanna put those people in places where they can have some kind of retreat and they can and have some solace and they can they can really kind of get to some deep meaningful thought but if you're in those spaces all the time you tend to get very stimulated so having. I mean areas where we go to like cafes that have food and water refreshment because it's all it's not just about the mind is about the body the soul all of that spaces where they can go and they can connect with other people where they can get access to natural daylight. They can have some bright pops of color that just kind of rejuvenate them. That's really important or designing spaces. I think that you don't have to be assigned one seat and sit there all day. A lot of people have a lot of excess energy and they need to get that out of their system and if they don't they can't really function or do anything anything else so giving people opportunities for whether it's walking meetings or curve bridging people to move through the space or pick different prince settings all of those things. I think have helped us design spaces really around. What is the company trying to achieve and if you think about it you know some companies are all about innovation creativity and others are about deep meaningful thought and other ones are about you know meetings and engaging with each other those all have different parameters and different settings that way nature design for when you're talking with companies about designing? Xining the space to meet these needs and they give you pushback. What are some of the things you say to them to persuade them that. This is really something important important for them to focus on or most companies understand that today well. I you know I I would say this. I think in general most people think that design nine arbitrary that it's just you know we're just trying to do something that looks good we approach all of our projects really from understanding who our clients are and defining them but I would say that every company kind of has their own unique organizational. DNA and if you understand what that organizational DNA is then the solution start mark to become self evident and so that the elements of that DNA really are involved What industry are you with. What what region are you at. You know what demographic are are your employees. What are the work styles What is your culture. What is your organizational structure. Can we start pulling all of those things in and we really understand the science behind this the decisions really start to become very clear and direct about what we want to do and so when we can explain the principles and the elements of design and what we're trying to achieve. Steve I think most of our clients don't really understand how much thought has gone into this and they appreciate that science behind. It and often are like okay this that this is exactly why we hired you because you are the expert and you understand what you're doing so. I think that's a big. Aha Moment for a lot of our fights aw what comes after neuro diversity in terms of issues that you're thinking about when you're thinking about modern office designers there's something is there a a a what's next that you can point. Oh sure there's there's cuts right you know so so we always look about you know what he's year right now now but then also what's on the horizon like I I think we're living in a world where the world is not getting any calmer. It's actually getting a little bit more chaotic and so the next piece that we're about to put out is about the trends that we see coming and how they're going to impact this and we think that the the issue of diversity is going to become more more important important and you know the interesting thing is when our team was doing all of this we kind of looked at this and said every single person. I know would benefit from being one of these environments. It's not just people people that are neuro divergent. We as humans are getting overwhelmed and there's all kinds of challenges ahead of us. You know there's there's a need innovate faster and quicker so divergent creativity and Co creation and breaking down the silos is the big thing that we're talking to our clients about right now. you know how do we go beyond just being sustainable to really addressing issues a much more holistic realistic way and not just add plans to a space introduced by affiliate but how do we mimic nature and introduced by mimicry more in circularity where things have a complete life cycle and repurposing and reuse seen things rather than just disposing of the robotics and technology and how artificial intelligence so the Internet of things how all of that is evolving those the things we talked to our clients about a tremendous amount of research about and you can either get really excited about the path that's ahead or really really overwhelmed with it but we kind of feel like understanding it and embracing it. Is You know kind of helping to see what's coming. It really helps us to be able to handle it and address that much more proactive way and that's what we really advocate for today. We appreciate you taking the time to talk about it. Maybe we'll oh have you redesigned our studio to be more newer diverse. We would love to tale bet you K- sergeant thanks very much for being with us. Advocate Advocate K sergeant is the director of the workplace practice at the global design firm. H Okay she's based in Washington. DC AW you're listening to the C. R. E. News Hour. I'm Steve Leveque. Mark Mayfield was just named chief executive officer of Sango Ban in North America. One of the world's largest building materials companies and manufacturer of innovative materials solutions a San go ban is one one of the oldest companies in the world was originally started more than three hundred and fifty years ago in France where it created the mirrors that line the famous hall of Mirrors Mirrors at Versailles Palace Senga Ben North America has more than fifteen thousand employees across approximately one hundred sixty locations throughout the United States and in Canada it reported sales of about six point one billion dollars in twenty seventeen in addition to his role as head of Sango Ban North America America mark also serves as CEO of certain teed Sango bands manufacturer of building materials for commercial and residential construction certain teed it has more than sixty nine hundred employees at sixty manufacturing locations throughout the US and Canada it reported sales of about three point nine eight billion dollars in two thousand eighteen greyfield began his career with Sango ban in nineteen ninety nine in sales he spent the next two decades working in various roles including sitting vice president of Sango Bans Abrasives North America division president of certain teams citing and CEO of Sangha Band Building Distribution United Kingdom England Ireland most recently he was named CEO of certain teed in two thousand seventeen. We sat down for our conversation at Sangha Bands sustainable headquarters building in malvern Pennsylvania about thirty miles west of Philadelphia Mark. Thanks for joining us today happier thanks for having me or you just became the the CEO of Sangha Ban in North America. Tell us a little bit about what you see as challenges. You're facing in terms of communicating with your people and also the challenges facing your registry well. Yes very fortunate to get this job. In January. I think the challenges facing the industry are as you. Well know a pretty broad you know there's a combination the nation of labor issues and getting people to join into the workforce so finding people who will generating a narrative that gets is this next generation of kids and young adults to come into construction today. I think one of the biggest challenge is getting enough people to build the buildings we need to build whether it be a commercial residential so training that next Workforce Building Tomorrow's workforce today's what we like to say he's one of the big challenges sustainability I think in building is another huge huge one that we face finding building practices and products that provide the kind of aesthetics people want plus sustainability that we need for the future so those are the two of the big ones that I think we'll see. There's so much pressure on young people to go onto university educations and yet. There's a shortage of people going into construction into manufacturing. How do you attract people. How do you persuade them to think about those. Kinds of job opportunities a great question. I think we have to get to him earlier. I I think we have to provide the proper training through vocational schools. I think if people take a look the career careers that are available and construction fantastic. You know not only are you able to work with your hands work outside create great things in that process but you can fill the amazing career the the level of small medium house builders and commercial contractors that that make great livings. It's fantastic so I think we just have to get visibility too because I think construction as well as manufacturing are fantastic careers for this next generation coming up and I think we shouldn't we have to find a way to communicate that you talked about sustainability as a challenge for the industry you've been doing a lot in terms of building ending sustainable products into your product mix. What are some of the things that you look for in the next couple of years while I think from more perspective we have to keep going and trying to find systems and ways to put our products together to give the most sustainable house or building. I think going forward. It gets back to what we said. With the a youth going forward is educating educating the contractors and the and the homeowners and the banks frankly of the value of sustainable home of a home that uses less energy when you're dealing with someone on a commercial basis wouldn't that owns the building they can look at that they can look at the payback sustainable building. They can understand if they put in electronic medical broke glass the proper installation the lower operating costs. We need to residential. It's harder to make that link to the homeowner. If you build the building in a highly sustainable manner her resale value would be better. Your operating costs me better so I think it goes back to a degree of educating both the contractors and homeowners orange what are some of the things that you're seeing as trends in commercial real estate development in particular so trends and commercial real estate development. I think that affect your problems product a wide range again I think going back a number of years you saw a lot of open space activities so you see this office building here and when I think of open space too big drivers and open space huge warehouse construction which ends up with very large building but not a lot of products inside side of them and then from an office perspective a lot of open office open plan building just to the open office open plan change the way you design. Zayn your products to serve that industry. Does I mean I don't know if you had the chance to tour this building but I have we actually did a story building very well and the reality of his being an open office open plan. You know how you put the building together from a sounded cousteau perspective so you can have people working close to each other without having to hear each other going forward. Lord how you put the proper space around so folks you know private meeting space as well as collaboration space how you manage light with glass coming in so they have daylight the over ninety percent of the building but you don't get a glare computers. All this is highly technical emits a big difference on the productivity of the people in the building and it's easy to do an open space office on if you will cost basis I put no walls up for a bunch of cubicles in it's very inexpensive but if you don't put the right materials in Acoustically mystically and from a life perspective then you end up with a situation where you're GonNa get the proactive unique. saint-gobain is literally one of the oldest companies. He's still in operations over three hundred fifty years. How do you keep things fresh say soccer. Bond has a very long history and in one essence it tends to reinvent itself to some degree every twenty five years or so not per se but insensitive changing structures in the portfolio or how they go to business and we're in the middle of something called transformed grow right now which is this twenty five year transformation and it's basically building more agile organization so focusing workstation that that drives more empowerment down into the businesses into the regions into the folks that are closest to the customer taking the customer intimacy in the feedback we get from our customers and aligning lining are strong. Technical background are indeed with what the customer says in a streamlined organization to grow the business so it's a big change for company. Coban which has been war war. If you will matrix hierarchical in the past you were also doing a lot in the Greater Philadelphia Community engaging in sustainability sustainability initiatives around town and so forth the love Love Park restaurant now situation what what does that bring to the company. What's the value that we're we are big here in Philadelphia and this important part to us a little more we can we can connect to our local communities by helping them with sustainable able building whether it's renovating row houses whether it's working in Love Park. We are Nice project with one of the boat houses. The last one is you go up to Schuylkill on the right where where we can really connect and nunnelee showoff products but help the community in general. It means a lot to us a business. It means a lot to our people and we need to take you talked about earlier. How we bring the youth into this into this marketplace and focus on places like Philadelphia and Boston upstate New York in the Midwest. Will we have big presences and we can get involved with our senior executives in our products and really show them tangibly. He'll come to this building. Let us show you what a construction can mean. We can start waking end up. Let's take you into Worcester and share with a career manufacturing can mean we can start we can set great. Chris Stories there and if we ain't engage our senior leaders the local communities with the up and coming next generation workforce. We've gotTa Win when you look at the overall economy which is so often often driver of how your business goes. How do you see things going over the next twelve to eighteen months. You know that's I wish. I wish I always had the answer. I think right now we see a good economy and I think you know when it's always talks about when the next slowdown will be how big it will be and what have you. I think two thousand nine hundred looks good we see good good activity both commercial and residential a lot of remodeling activity this uncertainty and as uncertainty comes you know every everyone keeps on trying to pick the date when things might slow down. I don't think we'll see a huge slowdown in anytime in the near future. Maybe a flat. Are there any particular things you look for measures that you will. WanNa see going certain way. I'd like to see everything going. Of course you know so I mean I think like yourself. You get all the housing reports. What's the mortgage reports everything else in and you can read into a lot. I try to listen to what distributors are contractors. Say What I hear from contractors is a very busy they have a large order orderbook and I go back to our developing the workforce concept most of them have a very large orderbook and they're not gonna they don't have the staff to do it quicker so so just tends to push the orderbook further out so the reality is. I think the what we see is a pipeline looks very strong think the biggest risk to the industry is we don't have the people to build commercial and residential buildings. We need over the next decade. He talked about the challenges of attracting people to work in the industry. There are some other challenges like getting getting rid of waste and making the industry more efficient. What are some of the things that you're looking at to help make your company officiant and also encourage others to be more efficient questioned Russian to me. I think probably the leading thing we're doing that is a partnership we have with ud homes up and and New Hampshire partnership with the part of Benson would homes which which is kind of an innovative innovator in the prefab manufacturing site for residential homes and working with them really to learn about the proper systems to put together and Prefab managing waste along with sustainability and there's been a great partnership as far as learning again where that I think that prefab and production style manufacturing of homes can can teach us in construction will do you see an opportunity for increasing collaboration with other building products companies or is it too heavily competitive to Oh to really get any traction. They're no I think you can. I think you know really we're working on Kevin. Open platform there that will bring in lots of different billing company so we can't we loved you can't make everything that makes the house or or commercial building so we have to work with other partners in that process so the overall processes how to make more efficient building processes how to minimize waste waste because there's a big part of the of the downstream of building that we have to take a look at and do so in a in a wildly sustainable way where we build the best ideally carbon-neutral the home. You have a customer experience center here to try to help you learn how to get closer to the customer. Tell us a little bit about how that works. We do very excited about it so building. You see back over your corner there. It's a bar and that would be rebuilding. It's a really bringing something I learned my period and building distribution where we have a very robust customer experience center where we would talk to customers who purchased from us and you learn really what was driving the person decisions and what they wanted in the future and the takeaway from that was if you ask your customers. What's what's important to them. They'll tell you if you build your strategy around what they tell you. You'll have a strategy that invest the money in the right places puts the resources right places and delivers livers the products and the services of the customer want so we're building with that same team. I brought over one of the colleagues who ran that business that same experience here. We'll have the largest ears. North America America will end up talking to more contractors customers distributors than anybody else and understand what's important to them and let that drive our strategy more. Greyfield is the CEO Joe of Sango Band Building Products Company headquartered in Malvern Pennsylvania. Uh and we'll be back in a minute Sean. This is Rabbi Richard Address join us for our podcast series from Jewish sacred aging entitled seekers of of meeting will explore some of the issues and events that impact ourselves our families and our Jewish world at large in light of the current revolution in Eiji. The secrets of meaning podcast gassed airs every Friday morning at eight. AM AT JEWISH SACRED AGING DOT COM when you can't wait for the media to cover your company you have to be the media take advantage of the power of audio and video. It's the best way to showcase your expertise spur ts to prospective customers. Let the LUBEC in media companies handle the technical side. We're award winning audio and video producers. We can help you produce podcasts broadcasts and video programs remotely or in our fully equipped studio in Cherry Hill visit being the media dot Com for more information. Most commercial real estate market participants are familiar with section ten thirty one of the federal tax code involving property exchange transactions and and of course the hot topic. Today is the relatively short opportunities own program that has a limited shelf life one area of the irs code that doesn't get much attention is section one seventy seven-day. That's the century-old provisions of the tax code offering tax deductions for charitable contributions raw blakely is the national acquisitions director for our wealth aunt a Tampa based commercial and Residential Real Estate Company that specializes in providing real estate investors in the nonprofit sector with a wide range of services says including Brokerage Representation Advisory Marketing underwriting due diligence financial services asset management and dispositions. He's joined today by Durrell. Bass a senior acquisitions manager at wealth on Bass and Blakely helped nonprofit clients meet their Real Estate Needs Jaryl and rob thanks for joining us on this theory news our most people in the Commercial Real Estate World Know About irs section ten thirty one but I'm not sure that many they are as familiar with the irs section one seventy that you focus on in some of the transactions you're doing talk a little bit about the importance of this section and how it factors actors into the work. You're doing with clients this drill. Everyone like you said it has heard of ten thirty one and very few people. Have anybody probably nine out of ten people that we deal with have I've not heard of the section one seventy but the section one seventy actually pre dates the ten thirty one exchange it was created in nineteen seventeen by Congressman Senate and then it was signed into law by Woodrow Wilson said it makes it a hundred two years old and an actually predates the ten thirty one and how we use it it allows charities to purchase anything of value but we focus on the real estate section of it so we help charities purchase real estate with excuse me cash plus charitable tax deductions and we structure that amount to maximize the net cash for the seller and then since we're able to lower the actual purchase price due to the reduced cash and the increase in charitable tax deductions were able to sell the property to the buyer on the back again and they get a good value on their purchase so the seller maximize their net cash. The buyer gets a good purchase charities which is the main thing the charity raises as you know thousands and thousands for their cause and then we as brokers for the listing brought grand for our selves get paid on the Commission's. Is there an advantage to the charity garrity in terms of not having put out as much money in a transaction. This is rob. Absolutely I mean any time that a charity can save money as more money going to their mission so we we also do that as well one of the other tools that we use for us at as well thought we are just little detail about wells fargo wealth lawns is a commercial brokerage and we represent nonprofits only that's all we do so we don't do list things we don't do things like that and then and then back to the benefit to the charity what we're launching now is an MD user of program so say Ymca comes to us like hey. We want this building. It's ten million dollars. We can't afford ten million but would you guys be willing to try to help us in utilize one seventy and so we'll go to that seller. We'll try to pick it up for seven million cash and then we'll turn around in hell debt charity of wire it for that seven million cash and then that way they're saving money so that's one way that benefits charities take the other side is to a lot charities they tried to do fundraising work and when they do those funds fundraisers and things like that they spend a lot of money one of our charities as they bid like a fishing tournament with celebrities local in Tampa Bay and they spent sixty thousand dollars to do that event and then what happened. Is that the only race forty thousand dollars so this is a way that a small to medium charity can raise significant capital to fund their missions and not have to do with they can just call wealth pretty powerful so I'm still having a little hard time picturing how this actually works in practice. Can you walk me through a hypothetical transaction and talk about some of the numbers and you will give you a specific example of the last transaction that we help someone with it was on a property up in North Dakota. It was listed for five point six million we helped our charity acquirer that for three million and in three point six million in charitable tax selections to the seller and then we helped the charity find the back in buyer at three point seven five million dollars so after taking out commission and fees thousands and thousands were raised for the charity the in out start from the beginning a little bit with the seller. Why would a seller sell the property for three million when you're on a five point six list so that seller was in a high tax bracket in his State had high income state income tax as as well so when he got three million in cash and then the three point six million dollars in charitable tax deductions that to him was the equivalent blackhawks four point eight million dollar offer on his property or purchase on his property which is where he wanted to be and since he had owned the property and his end depreciated such a long time he'd owned it for over twenty years and his basis was low and he appreciated the downs he was going to get really really hit with capital gains and recapture so when you factor in the whole picture of all right here's the purchase price on the surface then what still has a deal with on the back end on a traditional sale with recapturing capital gains in their state income tax our federal income tax when you compare that to the bargain sale. Which is a section one seventy? That's just kind of the street term for most people notice a section when seventy they know it at all with the cash being at three it was was pretty close to his adjusted basis little bit more so he did end up paying a little bit attacks on it but far less than if you didn't five point six so his net was actually about us just roughly about six hundred thousand dollars more on that transaction than if he had gotten five million dollar offer so it sounds like from what you're saying this works works best and maximizes the value for both sides in high tax states and jurisdictions absolutely your places like California where you have state income taxed the highest level of thirteen point three other states that are pretty close to ten it works best in those scenarios goes you get immediate ten percent bop in the transaction but also works well in places like where we live in. Florida where there is no state income tax if they're in the thirty seven percent tax bracket and they've owned the property for over ten years straight line depreciation costs segregated depreciation or accelerated that situation where they're gonNA get hit with a lot of capital gains and recapture capture in the narrow already in a high tax income for the better level. That's when we can structure it to maximize their net cash in that scenario does it work well in states like New York and New Jersey which are also high tax states have. Have you done any transactions on the east coast. This is rob. Absolutely I mean one of the great things that we see now is that over the past ten years that we've had such great appreciation in assets and folks have been depreciating at the same time so the perfect storm for those areas especially with the rank controlled districts now in New York that they're tapping out those rents and things like that so if I'm a seller and I'm sitting on that property. What do I do with it. How can I get that five capture that six cap because there's no more value add. There's no more rent increases for buyers so what we can do. We can go to that seller and say. Have you ever considered this for your philanthropic intending sending your generosity by taking this count on this property the irs say hey they'll give you deductions in return most likely of an individual or group that had owned those type of properties will have multiple properties so it's a perfect target for them and then since they're in rent controlled area. New York what we can do is we can come in say one hundred million dollar property we can come in with eighty five million cash potentially and then we could do the rest and deductions that way we can sell it to another buyer of value add guy or a guy. That's interested at a different cap rate. Maybe seven or eight cap rate and then we can turn around and sell it to them and raise significant funds for the charity we help the seller now move from property that he couldn't move out of and didn't have a solution for and then we get a buyer and asset that he's happy with and it's in the best MC criteria his feet so it's pretty powerful those markets right now especially with jobs leaving corporation tax rates different type of things people are looking for creative solutions and this is one of them so in the context of one of the hottest topics in a commercial real estate right. Now is the opportunity zone tax incentives. Is there any way that this section. One seventy strategy can be applied within an opportunities for maybe an extra bite at the tax apple the funny you say that we're actually have a meeting tomorrow with a group about some opportunity zones are charities have acquired opportunities zones without even knowing knowing it prior to this opportunity zone movement and so we actually had our charities ahead inventory of a ton of opportunities which are gone now the great thing about that that is a lot of opportunities now. It's not all of them are in areas that need development so the greatest thing that we know about the irs one seventy one of the greatest things dyson. There's so many is that the irs created a section called publication five sixty one those are guidelines for Ma appraisers to follow how to appraise as a property and the cool part is diarrhea says there's no compulsion for the cellar cell or the buyer to buy so when you go into an opportunity zone area that's great because you may have a power plant that just needs to be cleaned up and isn't an opportunity so buyer sees opportunity there right so we can do is we can go in. We we've just acquired a power plant in North Carolina Rivera successful in selling it as well and so we could go in and actually acquire that power plant we can give that seller per our charities parodies of deductions in return for that for that power plant which is an opportunity zone and most of the time the sellers will take low cash if not zero grow cash and then we turn around and we sell it to an end user that understands the process of how to clean it up and reposition that asset so it's perfect for opportunities zones owns because they have that that ten year window there to to get that property improve but it also gives them the ability to buy extraordinary low basis and it also gives the seller maximize net cash because he's GonNa get a significant amount of deductions because of the highest and best of that property the publication five sixty one states per one seventy code section. One seventy is a permanent section of the tax code. It doesn't have a sunset date. I gather since it's over one hundred years old already is do with charities and their ability to issue charitable tax deductions is the same thing when someone goes by goodwill or salvation armie donates whatever merchandise they have and then they get the ticket it kinda under that same premise because then the charity takes it if is over a certain amount goodwill or salvation army we will issue the charitable donor at eighty two eighty three form defile with their taxes is the same process that we process that we do with real estate real estate such a larger transaction than something that's on someone would take good-will or salvation army is is there widespread use of this or you guys kind of innovating in this area. We're innovative in the fact that we help small to mid sized charities with it so that's our specialty chilly and where we've innovated but there's about twenty thousand of these transactions done yearly and your major players with our Harvard Cornell Stanford the Red Cross. They have departments to set up for the section. One seventy said they use it every year and then we've taken it to help small to mid. It's nice charities that don't have that ability to navigate real estate and so so it's opening up to small and mid sized charities like examples. Give me some examples. I one of my favorites. We have twenty five different charities. We've worked with so we vetted them. We make sure they'd been established. Stable ninety percent of what they raise goes goes towards their 'cause. That's our main criteria in working with the small to mid sized charities. We weren't with one voice which is a children's Prince cancer here. Locally we work with product transition which helps a military transitioning out of the military to civilian life. We have the other Jerry's that cover things from missions to homeless pretty much every journey you can think of we try to cover the made the main when someone someone they were talking with as a seller. I Hey this is important to me. We can link them up with the charity that we represent and find a cause dear their heart art what sounds like an interesting aspect of commercial real estate finance and we thank you guys for being with us on the podcast today absolutely. Steve Thank you thank you. Steve we really appreciate it. Robert Blakely as the national acquisitions director and giral BA's senior acquisitions manager for well font a commercial real estate brokerage company in Tampa Florida up and that'll do it for this week's edition of the Sierra News Hour. Don't forget to check out our audience survey by clicking on the purple. Take the survey button below the podcast player earlier on the show page for this episode and please consider becoming a financial supporter of our podcast by clicking the Patriarch Button if you have comments about our program or a story the idea that you'd like to see us cover send me an email addresses steve at St Broadcast News Dot Com you can also leave us an audio comment by using the voicemail smell feature on the right side Bar of our website at St Broadcast News Dot com we produce this show in the state broadcast news studios in Cherry Hill New jazzy some audio in this program was provided by our content partner Public News Service Dot Org for everyone at the Sierra news hour and state broadcast news this this is Steve Lubeck. Give thanks for listening and we'll see you out there on the net. Take good care.

CEO New York City New York Sierra News Hour director United States Ann Reynolds St Broadcast News Cherry Hill Robert Blakely North America Tampa Philadelphia Mark Mayfield Washington
CRE News Hour 8/2/2019

Commercial Real Estate News Hour

55:13 min | 1 year ago

CRE News Hour 8/2/2019

"From the business desk at st broadcast news this is the c. arena news hour. I'm steve lubeck. It's friday august second twenty nineteen in this week's edition of the sierra news news hour considerations for high net worth investors looking at qualified opportunities zone funds has potential investments. We'll take a tour of the discovery discovery labs a scientific research facility near philadelphia that hopes to keep life sciences companies in the property from the workbench start up to whole whole buildings of research and manufacturing and we'll talk with an atlanta startup that wants to make small investors into hotel owners with room discounts as part of the benefits. We'll be back with the top cr news stories right after these messages turn earn your podcasting passion into profits the book the business of podcasting describes the business side of podcasting including how to become a professional national podcast. You'll learn about position your clients expertise who podcasting to plus the best business models how to find clients and much more visit the the business of podcasting dot com oh today you can't wait for the media to cover your company buzney. You have to be the media. Take advantage of the power of audio and video. It's the best way to showcase your expertise to prospective customers. Let the lupatkin you bet can media companies handled the technical side. We're award winning audio and video producers. We can help you produce podcasts and video programs remotely or in our fully fully equipped studio in cherry hill visit being the media dot com for more information. Welcome back to the see our news hour. We hope you're enjoying our broadcasts. We like to ask for your support to keep these programs in production visit state broadcast news dot com and click on the patriot button on the right side of the page to pledge some financial support to the sierra news hour and of course if we have story suggestions or comments on the reporting that we're doing drop me a line. My email addresses steve at st broadcast news dot com now. Let's take a look at some of the news stories breaking in the commercial real estate markets as expected last week the federal reserve cut the federal funds rate by twenty twenty five basis points to arrange of two to two and a quarter percent. The cut represented a marked change in the direction of monetary policy in the first half of twenty nineteen eighteen following a hike of twenty five basis points in december spencer. Leave the chairman of c._b._r._e.'s america's research and a senior economic adviser to the firm. Tom thinks it's a good sign for the commercial real estate industry the current state of the u._s. Economy remains supportive of commercial real estate fundamentals as uncertainty and slower slower growth way on returns and other asset classes the relative attractiveness of u._s. Real estate will influence capital flows lower hedging costs will also support more international investment investment into u._s. Property markets today's fed rate cut will support these dynamics c._b._r._e. Expects continued growth and lower than expected interest traits and growth closer to its longer term trend of two percent in twenty nineteen bain capital real estate the real estate investing business of bain capital. It'll sold a one point. Three four million square foot corps life science portfolio in the heart of the research triangle. That's in north carolina. It's one of the top innovation hubs in the u._s. The portfolio consists of eighteen buildings on four campuses and bain sold it to its partner. Longfellow strategic value fund in a transaction action valued at about four hundred five million dollars. The ninety four percent leased portfolios home to some of the world's leading life science innovators including genetic research firms top ranked clinical research organizations and leading agriculture technology companies bain capital real estate started to build the portfolio with longfellow in twenty a fourteen since then the teams created namic ecosystem of life science healthcare and technology tenants that enjoy state of the art buildouts and a robust mix of modern amenities trans western commercial services is expanding its healthcare advisory service teams exclusive leasing property management and construction management assignment for a medical medical office portfolio owned by american healthcare investors. That's a real estate. Investment trust in addition to the original fifteen assets totalling about four hundred forty four thousand square feet in atlanta the teams now going to provide services for six other properties. The twenty one asset assignment now spans almost eight hundred thousand square feet with an and overall occupancy of eighty eight percent the newly assigned properties include three medical office buildings totaling two hundred eighteen thousand square feet in cullman alabama a thirty thousand square foot medical office building homeward alabama a fully occupied forty three thousand square foot medical office in cell koga alabama and a forty five thousand thousand square foot medical office building in mount juliet tennessee common grounds workplaces signed a long term lease for sixty two thousand square feet in the thirty two story seventeen nineteen hundred market building in the heart of philadelphia's center city. The workplace is scheduled to open in late. January twenty twenty common grounds as an enterprise grade workplace workplace as a service company collaborating with office owners and providing flexible space in co working solutions in multiple u._s. Cities common grounds will build the flexible work space as on two floors in the recently renovated eight hundred fifty thousand square foot building. It's located two blocks west of suburban station. The seventeen hundred market building provides hides quick access to regional rail and subway systems in philadelphia. Come and grounds announced long term leases this year of over two hundred sixty four thousand square feet in midtown town atlanta. Los angeles is financial district seattle's south lake union and to washington d._c. Locations in twenty nineteen common grounds opened new workspace. He's in minneapolis portland and salt lake city and it has three additional locations opening this summer with nine more under construction investment management company carter will have a bird's words. I view of the new york financial district. The firm signed a seven year lease for thirty six thousand square feet taking the entire eighty first floor of one world trade center the seven year old companies relocating from offices at five fifteen greenwich street. Carta is an ownership network changing. How assets are acquired valued in transacted acted founded in two thousand twelve car manages five hundred seventy five billion dollars in equity for more than eleven thousand companies well towers buying summit medical groups forty three acres six building medical office campus in berkeley heights new jersey for one hundred and forty million dollars. The two hundred seventy thousand square foot campus will be mr least by summit under a new twenty year absolute net lease the campuses the largest and most comprehensive of five hubs in some. It's eighty location hub-and-spoke model l. It'll bring well towers total footprint with summit to more than five hundred thousand square feet the sales expected to close in the third quarter of twenty nineteen summit summit recently announced it would merge with city m._d. A leading urgent care platform with significant scale in the new york new jersey metro area jails healthcare capital the markets experts completed the sale of one hundred twenty six thousand square foot outpatient facility fully occupied by affiliates of duke health to venice for about eighty one million dollars fantasies s. and p. five hundred company and a leading real estate investment trust with a portfolio of about twelve hundred assets in the u._s. canada and the u._k. Okay the five story class. A outpatient healthcare facility was constructed. No opened in two thousand eighteen it consolidated fourteen critical sub specialties of the duke health enterprise located in the south point sub market of durham. The outpatient centers the largest off campus facility in the duke health outpatient network it houses. This is practices in neurology cardiology ophthalmology o._b._g._y._n. Pediatrics and primary care tech talent employment in the new york city metropolitan area a reach two hundred sixty four thousand jobs last year. That's a forty four percent increase since twenty eleven according to c._b._r._e. In its latest tech talent viewpoint c._b._r._e. Says is the pace of growth is accelerating growing from an annual increase of two point two percent in twenty sixteen to three point three percent and twenty seventeen to four percent in two thousand eighteen. Nearly half of the growth in two thousand eighteen was in technology engineering related occupations which grew by substantial thirty nine percent meanwhile the the n. y. C. metro region so modest but steady increases across other tech occupations and continues to boast a deep pool of software developers and programmers the most. I highly skilled tech talent. The report based on c._b._r._e.'s north american scoring tech talent report also found the new york metro areas the largest producer of tech degree graduates in north america adding more than thirteen thousand new tech grads in twenty seventeen a growth rate of forty eight percent in the past five years. A couple of executive moves in the state of new jersey at agencies that deal with real estate issues. Donna renderos has been named executive director of the office of planning advocacy and secretary of the new jersey state planning commission renderos previously served as chief of administration for the new jersey housing and mortgage finance agency z. tycoon who was a guest on the july nineteenth episode of the sierra newshour has a new job ties been promoted to vice president for policy and communications at the new jersey economic development authority cooper who joined the f._d._a. In february will report to eda c._e._o. Tim sullivan. You're listening to the c._r._a. News hour from st broadcast news dot com qualified opportunity zones continue to be a huge topic in commercial real estate. They provide some fairly significant advantages for high net worth individuals. Kevin matt's is a partner at the law firm stroke stroke and levion. He's also a certified public. Accountant kevin specializes in domestic and international estate date and tax planning kevin water. Some of the key things that high net worth individuals need to keep in mind. Everybody's interested in opportunity. Zones high net worth with people clearly want to invest in them. What should they be thinking about. And how do they need to position their investments so that they don't find themselves running afoul of the rules. I've is very important for the high net worth individuals to understand <hes> the three significant tax benefits they can obtain and then from there be able to comprehend at least generally some the governing rules that apply so what i'm advising a client on there are three significant snippet benefits to bear in mind number. One is tax deferral saw. Someone asks -nificant gain. Let's just use round numbers because it's easier to illustrate with big numbers. Let's say someone has a twenty million dollar game okay so a nigga game and it could be a game back into uh early part of two thousand eighteen which may be more than one hundred eighty days ago <hes> but there's a rule that's in the proposed regulations and actually actually in the first trunch and said that if you had the game unless unless an election made otherwise and it's from a partnership or an s. corporation or or could also be a trustor states to pass through entity you can have an election to have the game treated as the trigger point as being the last day of the tax will year so that it could be as late as december thirty one twenty eighteen in that in that example if waters listen to this this this conversation later maybe we're talking december thirty one twenty nineteen but bear in mind so the hundred days and you could take that game and if you invest in qualified opportunity fund with an one hundred eighty days and money here by the way is fungible very importantly. It's not like a like kind exchange. <hes> where you have to have escrow funds you just simply invest an amount that equals the amount of capital bowl game that you have could be measurement questions <hes> but but putting that aside for now you put that into a qualified opportunity fund with one hundred eighty days and you're able to defer for that game until the early to occur of two days one is the date of ultimate disposition of being best in the qualified opportunity fund and these doc in trash proposed regulations that came out in april of this year provided some some color on on that and including potentially but then gifting context and the second the the ultimate outside date is december thirty one twenty twenty six so if you're holding the invest in the fund and and december thirty one twenty twenty six cubs along at that point in time the deferred gain comes do but not potentially all of it and also varies significantly they could. There's no interest charge on this so someone has to twenty million dollars gate again. Big numbers simply just to illustrate <hes> that adam outcomes do before putting aside basis adjustments comes december thirty one twenty twenty six so long as it's no earlier disposition would no interest charge whatsoever however so there's a significant benefit time value of money with i'm talking to the to the high worth individuals who has been saved their additional benefits beyond that so so you start out with a zero basis the rules tell us generally if you happen on to hold the interest in the qualified opportunity fund for five years you get ten percents step up in basis on the defer gain so ten percent of twenty million dollars in this example would be two million dollars. Step up <hes> if you happen to hold it for seven years and you with a december thirty one twenty twenty six outside they have investment done by december thirty one twenty nineteen eighteen to accomplish that you get additional five percent above back steep so you would have a total fifteen percent step up in basis <hes> under these assume facts back twenty million dollars for a game. That's <hes> that's three million dollars. Step up which reduces the amount of the gain from twenty million dollars to seventeen million billions so you've just by virtue of holding the interest in the fund this period of time not only do you achieve the furrow without interest charge but you actually reduce use the amount of the gate wanting to watch out for though talking to clutch we don't own with tax rates will be on capital gains. Come twenty twenty six bit it could be higher there could be lower that could be the same but you do get the benefits of deferral and you also do without interest charge and you also get the the potential step up partial step up in basis to eliminate part of it the third main <hes> benefit than that. I bet high then we'll discuss with <hes> my my my clients or high net worth individuals is that you wanna target if you can hold in the interest in the fund for ten years because once you get to ten years to get an additional benefit which is that if the fund goes up in value and at that point in time that will be after we're just ever thirty one twenty twenty six so you will pay the tax on the <hes> although again as mentioned before the amount of <hes> game could be potentially reduced deuce two basis adjustments but come after ten years any subsequent appreciation is completely tax-free <hes> and and that is potentially huge benefit now of course one was always considered. You never know if the fun up in value they could go down. Fortunately there's there's a rule that caps the amount of defer game at fair market value as of the relevant point in time which could be again if there's no prior disposition december thirty one twenty twenty six but if it were to go up say to just for round number purposes to fifty million dollars at that the point in time you'd be looking at fifty million dollars about realized stuff's good disposition a basis of twenty million dollars by virtue basis adjustments assignments due to what i mentioned before and also by virtue of december thirty one twenty twenty six at the deferred tax about coming to that's a thirty thirty million dollar game. If the individual happens to hold the interesting qualified opportunity fund at that point in time for ten years. That's a magic a number that thirty million dollar gain is completely <hes> tax free <hes> completely excluded from taxation so that's that's very powerful unlike unlike tax tax exempt organizations which have to have pre approval for their status but then every service that is not the case here that is apps that is not the case here to make it easy. There's effectively. There is a self certification process big qualified opportunity refunds simply files with its tax return and it's so it'd be a tax attorney were inferior in two thousand nineteen. It'd be a tax return filed in twenty twenty and i._r._s. Interest for him eighty nine ninety six bad says i meet their carbon being qualified opportunity fund in insofar as <hes> <hes> either domestic corporation or domestic partnership now importantly when leaving out here can't be a single member elsie. That's a disregarded entity. That's not allowed <music> out here. It has to be either domestic corporation or domestic partnership. You could have a sole shareholder be of a c. corporation or an s. corporation that could work too so so and then in addition to that there is ninety percents of asset test ninety percent of the assets according to statute that you have to be devoted to holding a qualified opportunities own property or interest in qualified options zone business that in turn owns uh-huh qualified opportunities and a property when i'm talking to clients and say well that sounds almost impossible to to meet how how are you going to know from day. One will fortunately be be <hes> two different trash proposed regulations that have come out have provided quite a bit of leeway here in guidance so first off up in the second trash proposed regulations first six months of cash. That's received the qualified opportunity fun so long as it's made sustained solely in cash cash equivalents or short-term data instruments and that's defied is not to exceed eighteen months it completely does not get considered the purposes of the ninety percent test. It doesn't taint it's completely. It's completely not considered so that keeps me way. They're the big benefit though oh comes when instead of having simply an investment of qualified opportunity fun qualified opportunity intern has investments in qualified the opportunities zone businesses so as i mentioned before the qualified opportunity fund can invest directly and property that's located in the opportunities on so-called economically distressed communities <hes> berry in mind as all based on the two thousand ten census which is now what nine years as this as this certain point in time in the rear view window so much judge for -cation has occurred in certain areas <hes> or it could be investment in a qualified alpine opportunities own business <hes> which and the second trash proposed regulations have provided some guidance as to it's pretty easy to figure out real estate is located is an opportunity zone if it's held by his own business but what if it's operating a brain trader business <hes> guidance has been provided concerning komo the other things that fifty percent gross income tested and various day parts were provided with the two the two key <hes> benefits that are provided the leeway items that were provided was number one be happy investment in the zone business only substantially all the assets have to a particular his own business. I have to be <hes> located in opportunities own. Substantially all is defined in the regulations as meeting seventy percent in this context i and the explanation provision to the first drudge propose regulations say what that really means is that it's ninety percent of the qualified opportunity fund or q oh f- level seventy percent at the qualified options of business level you multiply ninety percent by seventy percent you'll link after have effectively sixty three percents <hes> investment devoted to it and then secondly if you have his own business that's operating as they working capital exception. There's a whole series series. Requirements among requirements are <hes> that you can't have more than five percent of the assets beat on the in financial type asif asif but there's a big big exemption on the proposed regulations <hes> which was addressed both in the first and the second tractors that says that if you meet this this disqualification of of <hes> having a plan for the deployment of working capital over time over appear you could have the benefit of up to thirty one months wants to deploy working capital <hes> these the second trust proposed regulations also said he would be on that that if you you have a plan to deploy but he don't get government approval you can even go beyond that and that is extremely helpful right there so i think those are those are many any of the key points i'd like to emphasize <hes> at the outset in in discussing mismanages quality to opportunity zones with high net worth individuals and how they can go about taking they're taking me amount of their capital gains investing it and what to expect the one one thing i would notice one never has cristobal as far as how <hes> these investments will will play out <hes> the one thing we do. Juneau is that there will be a liquidity need. Come december thirty one twenty twenty six to pay the tax now again as i mentioned before the amount of tax could be reduced <hes> by judah basis adjustments. There's also a special rule that caps the amount of the game deferred at fair market value at that time so if you've be <hes> valued investment has gone down <hes> that's generally not a good thing but at least the amount of tax due gets gets reduced <hes> to to recapped it that the concern that one has to has to think through an clients need to be advised on his well december thirty one twenty twenty six six. That's for twenty twenty seven <hes>. How am i going to pay for tax. You need to have effectively thinks through a funding mechanism you have sufficient funds is to do it but other questions that arise well. What if you die now. I'm gonna stay planning lawyer. <hes> the rules provide that effectively ah income in respect to seed and <hes> concepts apply which means adapt is ordinarily not gonna be recognition of him be <hes> the the <hes> the taxation <hes> that was deferred carries over to ever happens to hold the interest in the fund on december thirty one twenty twenty sixth unless there is a prior inclusion of n._s. Defined and be a second tranche proposed regulations <hes> with a carryover of the holding building periods of five years seven year and also for purposes of of of ten if you if you happen to make it to ten years there's attacking a holding period end of the day though someone someone be at the estate or beneficiary who has been bequeath. Perhaps an interesting unqualified opportunity fund <hes> have to pay the tax at that time <hes> so that that needs to be planned for as well <hes> belva mentioned in discussing with high net worth individuals if we're talking about a general gifting plan <hes> the second truck proposed regulations took a very dim view of gifts from the point of view that this just as a general rule <hes> that's gonna be considered <hes> an inclusion events <hes> if done prior to december thirty one twenty twenty six however however and this is very significant if the gift happens to be to what's known as a grant or trust for federal income tax purposes which very generally generally as a as a trust that is treated as one the same as a grand tour <hes> for income tax purposes although it may be as a result of a taxable gift outside sided wins taxable estate for state a gift tax purposes. If it's too aggressive or trust that will not be considered an inclusion but that there are still some <hes> open issues concerning that i can tell you that <hes> american college which states council is working on follow up on on a comment letter ah that's designed to to flesh out and address and can broaden the scope with the exemptions there <hes> if especially in context of gifts <hes> but those are some of the concerns and some the items that that i will discuss with a high net worth individual who's considering <hes> <hes> employing are going gore investing equality so let me ask you this <hes> the benefits from investing in these vehicles seems to be very large for high net worth individuals <hes> and there is this sense that it sunsets in two thousand twenty six. Do you have any sense that the program is going to be extended attended a renewed and start over and how do people handle the investments if that happened would they just roll them over into a new vehicle or continue them as they are or how does that work well. That's a good question steep <hes> that involves to some extent crystal ball gazing that we do know a couple of things here. This is the one prevision in the task custom jobs. That was an accident twenty in late two thousand seventeen but actually was bipartisan so it was supported by among others <hes> cory booker a democrat democratic senator from new jersey. <hes> i know sean parker <hes> <hes> the former c._e._o. Of facebook founder of master was also a supporter of it <hes> so it is possible and again we can only right now do the law that's on the books but it's possible that that subsequent congress congress may decide to push back or have some sort of additional benefit beyond twenty twenty seven thirty one twenty twenty six x was important to bear in mind that even though the tax becomes do at that point in time again you do get the benefits of deferral you get the benefit of the basis adjustments if you've held for five or seven years and then completely aside from that if you happen to have held it for ten years even though he invested prior december thirty one twenty twenty six x so long as you ultimately dispose of it by no later than twenty forty seven so that's more than twenty years after that <hes> that's about twenty eight eight years from wherever you are right now you can still get the benefits of having a designation attached which means you get the benefit of the exclusion. <hes> i'll be subsequent appreciation appreciation from happyhiller for ten years so <hes> so yes december thirty one twenty twenty six is a day in the future <hes> at eddie one needs to be concerned with <hes> but you can still start now and achieved benefits including the basis step ups and the the exclusion if you hold for ten years even though it's well beyond twenty <hes> at least that's the solution will be on december thirty. What twenty twenty six well it sounds like a lot to think about and i appreciate you taking the time to talk about. Why pleasure steve kevin matt's is a partner in the law firm stroke stroke in love and and in new york city. You're listening to the c._r._e. News hour i'm steve lubec in the peaceful suburban setting reading between conshohocken and king of prussia in eastern pennsylvania about twenty minutes west of philadelphia m._l._p. Ventures is redeveloping glaxosmithkline's smithkline's one million square foot research campus and the nearby six hundred forty thousand square foot innovation at renaissance campus into the largest co working ecosystem for healthcare life sciences and technology enabled companies in the country large research campuses all across the country are facing the same kind of redeployment deployment challenges chemical and pharmaceutical research is expensive and time consuming but companies can no longer afford to maintain large research facilities on their own being able to convert these facilities into shared spaces like the highly successful bell works development in central new jersey is going to be critical of these complexes. Is there going to survive for research uses now unlike bell works however which has been redeveloped for independent companies working alongside each other but not necessarily together the discovery labs represents the first large-scale co working for innovation of its kind m._l._p.'s hoping that the best and the brightest minds in healthcare healthcare life sciences and technology enabled industries will rub shoulders and create energy driving innovation in one mass of team oriented workspace the discovery labs encourages planned impromptu meetings among c._e._o.'s and employees to spark creative thinking and a free exchange of ideas. We took a trip out out to the facility for a tour with audrey greenberg chief financial officer of m._l._p. Tell me a little bit about what we're looking at here. We've got some some renderings of <hes> how how this is going to be redeveloped. Yes we're standing in the k. Legacy worldwide are in deep headquarters. <hes> that we purchased and started started <hes> leasing in the last couple months we're looking at the renderings from gansler did a phenomenal job putting in millennial centric trick high ceilings glass corridors light throughout the building and creating a cluster and east king of prussia where we we are housing life science technology companies under one roof to create an ecosystem for innovation was this building originally used for research and development in the life science in space sciences building. Was it a single company. It was it was yes k. and what made them leave the building and make it available for development. There's an interesting revolution occurring right now within life science so a lot of the large pharmacy pharmaceutical companies are consolidating and downsizing the real estate holdings outsourcing. There are indeed to biotech start-ups. Why is that the research and development costs have escalated to two point two two billion dollars just to develop a drug from idea to commercialization it takes fifteen years and a majority of the ideas fail the the return on equity. The farmer gets on these operations is less than two percent. That doesn't work for wall street so what's been happening as they acquire companies that are later in stage with the f._d._a. Approval process and commercialize those products for them. Which is what they're great at so so they don't need the space the the research is done differently. It's done differently. They still need space. They still do research but they need less space and they need more efficient use of space so <hes> <hes> they have consolidated their operations to three or four facilities into one so how do you take the space and make it attractive to multiple multiple tenants and multiple uses well. It's all about collaboration given the cost to develop you have to work with other players in sharing the costs in <hes> coming up with ideas and outsourcing part of your research so a lot of these c._r._o.'s komo outsource research organizations and manufacturing organizations do a lot of the work for you from a are in d. and manufacturing perspective and being able to partner with them under one roof provides a synergistic atmosphere for development in the way we do that here is through these <hes> collaboration areas collaborations zones in addition to our discovery village which we can walk over here and i can show show it to you. We are creating what we call like. I said discovery village where we're having a gastro hotel. European food hall a brew pub ebben distillery activated rooftops a fun atmosphere for people to get together not just inside the office but outside the office to stir creativity tippety and innovation having a hotel on the property suggests that people we coming into staying for some period of time and they'll be traffic in and out that's right. That's correct and you know one of the greatest things about philadelphia and the location of this property is a proximity to an international airport lead a life science companies require that as part of their operations and transportation aspartame has specimens and the like so given that we're twenty minutes away and there's gonna be a lot of traffic at the site not just from our incubator. We've got one hundred and fifty thousand square foot incubator planned on the site but also from the large pharma and startup companies that are here as well or also on two hundred acres so we have a lot of building plan for the backyard what kind of building so we've got a million alien square feet internally with for lab office which refers with life science healthcare and tech enabled companies and the backyard. We're looking at <hes> manufacturing facilities naming namely a viral vector manufacturing facility viral vectors are a key part to the gene therapy process and cell therapy process. There's a up to an eighteen month. Wait for these factors all the outsource organizations our capacity to be able to provide these this valuable part of the genus cell therapy process process is helping to save lives and get therapies to the patients who need them. How soon do you expect the tennis to start moving in. We have attendant in the site g._s._k. <hes> is in the site and <hes> they have a cleanroom here. <hes> we are in final stages of negotiation with up to four hundred <hes> tenants four million square feet and it's been a very exciting process names that we're seeing so when do some of the others to to get here i would say <hes> we're going to start work in the next month or two and expect move ins shortly thereafter. We have some small tenants that are looking to move moving almost immediately in the next thirty to sixty days and some larger ones that have to do a little bit of planning. I so maybe six to nine months. We've got twelve interconnected buildings. They're all connected did view these class in glass enclosed corridors so you've got a lot of walking that you can do both internally and externally <hes>. We've got outside the buildings. We've got hiking trails running. Trails sports courts a helipad onsite for not just transportation executives is needed but also human specimens. A lot of the cells that are extracted from patients nations are tumors that are taken out require work immediately and are then transported back to the patient to be inserted into the human so the time line in the supply chain is very important a key feature of the campuses it self contained central utility plant which provides power steam and water utilities meeting scientific standards for all the labs on the site audrey explained the one billion dollar power plants importance to the property also at the site. We've got a cup is right here. A cup is a central utility plant which has dual grid electrical feed so if one of the substation because substations goes down the other kicks in and the cop in addition to being backed up by these two dual feeds also has a backup generator plan so it's important for life science to never go down and not awesome so they can do everything they can do everything on site and they can do it. Twenty four seven never lose power which is incredibly important when you're dealing with temperature controlled and humidity controlled environment a lot of these cleaners have high so specifications meaning the number of air changes per hour. It's important for the air to have a certain number or lack of a certain number of particles in it so it's important to always be run and always be putting the live work play environment of the discovery labs offers open spaces where tenants can cultivate a sense of community. The plan includes world class coffeeshops a ten million dollar conference inference center videoconferencing and two hundred seventy five seat auditorium with adjoining meeting at education rooms so we've got this auditorium which has stadium seating fits turner fifty people we've had many events here already and as you know oh millennials and executives in my generation love constant training and development you have to stay current in an atmosphere like this and in an industry that's constantly instantly changing at an exponential rate three times moore's law you've got to be constantly learning and this provides a setting an ecosystem for that we not only do we have this auditorium but we have several several breakout rooms and another training facility where actually in two weeks you'll be the first to here. We have the country representatives coming from around the globe that represent the state of pennsylvania trying to convince companies to come do business here so it's going to be an exciting event warehousing talking about the property and hearing some of the concerns and and some of the opportunities that the state of pennsylvania offers the discovery libs unique design also includes a fourteen thousand square foot state of the art fitness center enter with cardio and weight training equipment yoga pilates classes as well as outdoor options including tennis basketball and more than two miles of walking paths other other features include an outdoor amphitheater high end onsite restaurants and complimentary transportation to train lines. You know twenty minutes from downtown philadelphia very near to the route two corridor where seventy percent of the bio pharma companies are located. <hes> in the suburbs of philadelphia are really a thriving area. Were we're calling this area contract. Russia which is five minutes from conshohocken. You know five minutes to the king of prussia mall where there's incredible food opportunities dining and shopping we <hes> one of the greatest things about the site in my opinion is the proximity to public transportation got the radnor train station norristown line. You've got all all of these septa lines where we're going to be providing shuttle service and uber activated type shuttle service not only do we <hes> commensurate three eight are stop signs in our pickup times with train schedules but also wants somebody arise if they want to go to the airport if they want to go to the mall we're happy to provide that services well it kind of makes the <hes> <hes> transit agencies have to think differently because traditionally those stations were not intended or envisioned for people coming in in the morning rush power to go to work. They were intended for people going into center city from those locations. How are you working with. Are you working with the transit agencies and what kind of you've cooperation or you're getting there. They're very cooperative. We have been working with the state of the commonwealth. <hes> the governor's action team has been quite helpful. The economic development council also <hes> we are working. We're putting a boulevard in and they've been pen dot has been working with us on that and <hes> we're we're going to begin conversations and have already been introduced to <hes> the right players in that area to help us on that what about in terms of the <hes> the local environment the neighbors numbers <hes> sweetland road is not a very big road but there seems to be an enormous amount of traffic on it. I was surprised to see all of the eighteen wheelers that use that road going awake through what seems to be a residential kind of an area. This is zoned industrial so we're on two hundred acres. It's industrial <hes> we an in fact on the campus next door. Most of the manufacturing occurs for g._s._k. So although there are residential areas around here which i find to be an enticing part of the site because you've got brynn marr radnor and villanova very close but you also have conshohocken and some of these other areas so all prices of housing stock which makes it very attractive for the workforce here where we expect to have you know somewhere between three and five thousand employees we've got the twelve buildings here plus the cup plus. The buildings were putting in the backyard and that's the g._s._k. Campus that's discovery labs. We also have innovation at renaissance which is fourteen buildings across the street which are housed by very largely science companies including chop jefferson med risk amir source bergen. We're connecting those campuses to create one ecosystem and mm providing our amenities to both campuses so it just expands a footprint expanded traffic and also creates a more cohesive and exciting atmosphere for around here audrey greenburg who took us on the tour as chief financial officer of m._l._p. Ventures which is redeveloping the discovery labs and if you want more information about the discovery labs visit the discovery labs dot com. We'll be back in a minute. This is rabbi richard address. S. join us for our podcast series from jewish sacred aging titled seekers of meaning will explore some of the issues and events that impact ourselves our families. He's in our jewish world at large in light of the current revolution in eiji. The secrets of meaning podcast airs every friday morning at eight a._m. At jewish sacred aging dot dot com <music> today. You can't wait for the media to cover your company. Anthony you have to be the media. Take advantage of the power of audio and video. It's the best way to showcase your expertise to prospective customers. Let the luebeck lubeck in media companies handled the technical side. We're award winning audio and video producers. We can help you produce podcasts and video programs remotely or in our fully fully equipped studio in cherry hill visit being the media dot com for more information atlanta-based based startup hotelier co. Thanks it can make affordable hotel ownership a reality for small investors through crowdfunding not just for for accredited institutional investors hotel co. Began accepting investors in july under regulation a funding laws to bring investors early stage hotel development opportunities with a specific focus on boutique luxury lifestyle hotels and they started close to our stomping grounds in south jersey you down in the cape may area once an investor invests in a hotel co. Property he or she will own part of that hotel and gets a discount on stays as the property and of course any potential financial gains from that investment. Nathan kivy is the ceo of hotel co. Nathan thanks for joining us on the c._r._m. News hour tell us a little bit about hotel co. And what's different about this crowdfunding approach to people investing in hotels sure thanks thanks steve <hes> so until you co is a creation of fund management company and we're excited just to be able to do it in a way that uses regulation i plus crowd funding and what that means is any united states citizen over the age age of eighteen can actually participate in the ownership what's exciting about this is we're actually allowing access to hotel assets but that otherwise would have being <hes> just possible institutional money or high net worth individuals and so we're able to bring bring an asset class <hes> people to actually invest in and become part owners in something that we're hoping is exciting for them as it is for us. Now your materials indicate that people can start with an investment as little as twenty five hundred dollars. <hes> are there any particular qualification requirements that investors investors have to meet like in other <hes> crowdfunding or private placement situations with the private placement through regulation. I you can actually make the investment huddle as low as you like. So what we're actually doing is a post on is he's the kite my project and the reason was actually chosen a two and a half thousand dollar is because the mock it so typically we'll trade in peak season around six hundred dollars for an average night and we're actually trying to have some focus i mean this meant that the people that invest best <hes> also gang to be guests hotel <hes> so in the future we look to actually do some funds that a an easier entry point so even the two thousand five hundred and then the only requirement that we have in terms of the people investing is the unaccredited investment convince invest up to a ten percent of the annual salary or net worth so one of the requirements when people go swing this is like putting some information mation to do with their financial situation so that we know <hes> what the would be for their investment and one of the reasons that is <music> is ensuring that they're putting themselves in a position <hes> could cause financial stress to them. <hes> should invest in something that the form all active now the first property as you mentioned is a ewing hotel which is a boutique hotel scheduled to open in twenty twenty one in cape may or actually west cape may in the very southern tip of new jersey. What made you choose this particular property for the first investments and what are some of the things investors should be looking for show so the exciting thing about kite ni- is it. It was a property that the people that are in the land <hes> mocking any had already gone through the process to have it approved to build a hotel and you know development. That's one of the most difficult hacks so <hes> those are teak for that part of being done. They were also understanding. The standing of the process involved to do this through crowdfunding. <hes> because there's a timing issue is helping it takes to go through the s._e._c. Persons and one of the other things that decide lent itself to is an assemblage so the property actually sits on a block that has a number of other a residential and been breakfast style accommodations and it's all commercial so <hes> the potential in this one is to we do a large assemblage and build a big hotel asset so it's a pretty exciting project the town itself <hes> tighten height. My is a resort destination <hes> somewhat seasonal but it's an absolutely beautiful town so we're excited to be able to bring something to people that were hoping pays heritage to the historic nature of the site but also provide some testing class accommodation that area and we're very very familiar with cape. May it's not too far from our studios in cherry hill <hes> which is <hes> about an hour and a half north of cape. May i would guess <hes> tell tell us a little bit about the reason why hotels are different you you indicate that <hes> there's a different calculation about the return on an investment in hotels compared with other commercial real estate talk a little bit about that so the reason high tells a different to other guess commercial properties is the fact that you return is not only based on the land and the asset but it's also based based on the business operations and the hotel <hes> the operation of the hotel so when you blend real estate with business operations we we actually believe he gives you so small areas that you can leverage the better returns and we're actually fortunate to partner with <hes> hotel management company denise velo who have very strong track record and then performance on other assets we have been involved in has been very successful so where we believe that they can bring that same sort of success to these asset so when you have an understanding of the real estate side had the landside location as well as the business operation it lends itself to a return that is not the in line with what a commercial cities and the other thing about a hotel is it's pressed daily so hotel rights can shift in real time with the market which also is something that is in the downturns hotels do get impacted faster than a commercial property however when the market is turning around or an upswing the benefits or you know the the improvement in the market is also felt a look quivering heights l. so it's a really good <hes> real estate play especially for people that have other real estate holdings to do this fully now the <hes> investor's <hes> who participate in this project will also in addition to potentially seeing capital gains on their investments will also get discounts if they wanna stay the hotel yes so what we're trying to encourages people to use the hotel that they upheld entering and and the way we do that is giving discounts to book directly to tell the great thing about that is the prophet of the hotel so is not diluted because of that <hes> discount because what would typically happen in america like cape may is p. Food get onto an online travel agent will search engine they book and typically those online travel agents can take anywhere from eighteen to twenty five percents for booking through that so having someone directly giving them the benefits of what would otherwise be asleep pay to another party goes directly back in the pocket of the best and that goes to stay there in hotel so we think it's a really interesting loyalty klay in a kind of loyalty platform that hasn't really been tested in the market before so we're very excited to be the first one to try something like that so assuming that <hes> it's met with a positive reaction from investors <hes>. Where do you see yourself. Taking the the fund the investment <hes> capability in the future so what we're actually looking at in the future is with talking to a boutique take lifestyle brand at the moment. We're hoping that early next year we launch a fund that specifically targets <hes> operating assets and <hes> an existing hotel. That's being converted to be take grant. We are also looking at bringing mean another fund that will be less style product towards the end of two thousand and twenty and then once the platform in the u._s. Is set up the hotel. Operating novello actually has a very strong presence in the united kingdom and stuff africa and they're just set up offices in and you buy in hong kong. I hope is that by two thousand twenty one. We start to look at an expansion globally and take this to the rest of the world. Do you have any plans for any other <hes> specific sites in the u._s. At this point we do have a couple of sites under contract but <hes> we have have signed confidentiality agreements. Hopefully something we can some exciting news that we can bring forward in the next two to three months. Nathan kitty is the c._e._o. Uh-huh of hotel liuqiu he joined us from his office in atlanta and you can get more information about hotel co. At hotel co dot com and and will include the link in the show notes at st broadcast news dot com. Thanks for being with us on the podcast pen. That'll wrap things up for this edition of the c._r._m. News hour you can send your comments suggestions story ideas s. two steve at st broadcast news dot com where you can leave an audio comment for us using the voicemail icon on the homepage at st broadcast kissed news dot com and we take this program in studio a at st broadcast news in cherry hill new jersey join us again for the next episode of the cr news <music> our next friday at eight a._m. Eastern time at st broadcast news dot com or wherever you get your podcasts. This is steve lou beckon. We'll see you out there on the net. Take good care.

philadelphia partner new jersey new york city bain capital atlanta cherry hill steve prussia pennsylvania cape Kevin matt america steve lubeck sierra news
CRE News Hour  8/16/2019

Commercial Real Estate News Hour

59:27 min | 1 year ago

CRE News Hour 8/16/2019

"From the business desk at st broadcast news this is the c. arena news hour. I'm steve lubeck. It's friday august sixteenth two thousand nineteen on this week's edition of the sierra news hour. We'll have part part. One of a two part conversation with attorney. Brad mowatt ski a leading expert on the federal opportunities zones program. We'll have a conversation with mark rose the the chief executive officer of global real estate firm avis young which is expanding dramatically in twenty countries around the globe and a look at how investors investor's bank a regional bank in new jersey is growing. It's commercial real estate lending portfolio as a balance sheet lender. We'll talk to their chief lending officer rich spangler. You're we'll be back with the top news stories right after these messages turn earn your podcasting passion into profits the book the business of podcasting describes the business side of podcasting including how to become a professional national podcast. You'll learn about position your clients expertise who podcasting to plus the best business models how to find clients and much more visit the the business of podcasting dot com today. You can't wait for the media to cover your company buzney. You have to be the media. Take advantage of the power of audio and video. It's the best way to showcase your expertise to prospective customers. Let the lupatkin you bet can media companies handled the technical side. We're award winning audio and video producers. We can help you produce podcasts and video programs remotely or in our fully fully equipped studio in cherry hill visit being the media dot com for more information. Thanks for joining us on the c. r. e. news hour. We just like to make note of a new option on the show page for this episode. You can click on the purple. Take the survey button right below the podcast player and share some information that will help us get to know our audience better. We'd also appreciate your considering financial support for the sierra. News hour by visiting our are patrick link and becoming a show supporter now. Let's take a look at some of the stories that are moving sierra markets across the country fannie. Mae economists say a stronger than expected acted. First half of the year pushed its forecast for full year. Twenty nineteen headline growth up slightly to two point two percent. That's despite the escalating trade conflict end the associated risks of financial market volatility labor market weakness and loss of consumer resiliency fannie maes economist groups also updated its domestic monetary policy expectations and it's calling for two more quarter point interest rate cuts by the federal reserve in two thousand nineteen one in september and another in december consumer spending continues to be the primary driver of growth increasing in the second quarter at its strongest pace since the end of two thousand seventeen while a surgeon government nondefense spending nick mainly due to the resumption of uninterrupted employee compensation following the government shutdown also contributed to strong growth in the first half by contrast. I residential fixed investment dragged in the sixth consecutive quarter while business investment turn negative in the face of increasing trade and geopolitical uncertainty rent cafe. They says average rents in and around philadelphia have seen minimal changes compared to june and in some cases the rents decreased slightly. The pace is consistent with the national trend as the u._s. Average rent grew by three dollars compared to the previous month and now reached fourteen hundred sixty nine dollars in philadelphia average apartment rents reached sixteen hundred twenty four dollars. It was in july. That's a two dollar increase compared to last month. The highest rents in the area are in king of prussia where the average is sixteen sixty nine lower by two dollars compared to june c._b._r._e. Arranged twenty million dollars sale of the bergen medical center in paramus new jersey the buyers a private investor and acquired the seventy five thousand square foot medical office property from the eye institute of new jersey built in nineteen eighty eight bergen medical center is on approximately five acres was in one of the county's healthcare arteries of route seventeen the properties near valley medical center bergen regional medical center and hackensack university medical center c._b._r._e. Sorry also arranged for fashion file and online fashion resale website where consumers can buy and sell used women's luxury designer handbags and jewelry. They're gonna lisa hundred five thousand square feet in munochiveyi new jersey ever west real estate investors redeveloping the building which firm purchasing august two thousand seventeen accounting accounting firm eisneramper signed a fifteen year lease four hundred twenty five thousand square feet on the sixth through ninth and tenth floors of seven hundred thirty three third avenue in new york city also included in the deal is eleven hundred square feet on the building's ground floor for a private entrance area lobby and hospitality area for eisner employees in their guests and a twenty one hundred square-foot outdoor terrace on the seventh floor seven thirty three third avenues owned by the durst organization is on the southeast corner of third avenue and east forty sixth street. It's leed gold certified eleven buildings that comprise what is known as the post office and warehouse district at the decommissioned fort monmouth new jersey are under contract for purchase for redevelopment port partners a company owned by denholm properties scoring to replace the existing buildings with three class. A office buildings wchs for a total of eighty six thousand square feet. They'll be targeting medical biotech and technology companies. Everest rehabilitation hospitals is putting up a sixth sixth physical rehab hospital in the liberty township section near north cincinnati ohio everest modern comprehensive medical rehabilitation hospital will be constructed on a little over five acres just north of cincinnati the sites located at the northeast corner of interstate seventy five and bethany road in liberty township and some executive -secutive moves of note. C._b._r._e.'s appointed john pool is to head its healthcare practice delivering clients solutions in the areas of compliance facilities management project management advisory and transaction and consulting services to healthcare systems throughout the country c._b._r._e. Healthcare's dedicated business group within the company focused exclusively exclusively on partnering with healthcare providers to deliver total life cycle real estate facility and capital solutions based in cleveland polos. I join c._b._r._e. Ory in nineteen ninety seven cushman and wakefield veteran thomas collinses joining iverson young as a principal and he'll be managing director of the company's new england england region. He'll manage day to day. Operations davison young's boston and hartford office. He most recently operated collins strategies a consulting firm providing coaching thing in mentoring services for real estate companies and professionals and ratliff companies a hard scape construction and real estate development company near dallas has named brian robertson and his chief executive officer robertson steps into the ceo role after leading the company as president since twenty eight and acquiring the company in twenty twelve ratliff offers general construction concrete and masonry services for all civil and hard scape projects including single family multifamily commercial municipal and oil and i guess you're listening to the c._r._m. News hour. I'm steve labatt. Can't the federal opportunities zone program is being being implemented differently in almost every state some states offer additional incentives or creative ways for developers to partner with state and municipal governments mints to take advantage of the federal o._c. Tax credits on projects that also serve the public good one of the leading experts on the opportunities own program is bred melotsky's breads co head of the opportunities zones practice group at the philadelphia based law firm of twain morris breads primary practice is focused in the areas of opportunities own fund creation and fund deployment financing public private partnership which you sometimes here called p p p or p three real real estate joint ventures and commercial leasing including a focus in cannabis leasing and we'll have to have him back on the program to discuss cannabis in greater detail at a later date before joining duane morris bread was on the big development company side of things he spent two decades as executive vice president general counsel and corporate secretary of brandy wine realty trust where sure he oversaw the real estate investment trusts legal operations acquisitions and divestitures financing joint ventures board matters insurance procurement litigation oversight oversight s._e._c. filings and the legal aspects of capital raising brad's office just about ten minutes from our studios so he dropped into state broadcast news to talk about opportunity zones brad. Thanks for joining us on the program pleasure so you are heavily into monitoring the opportunities zone on programs around the country and there've been a couple of changes recently that you are updating your clients and prospects on talk a little bit about the f._h._a. Vijay program for financing. I so there's a recent <hes> f._h._a. Announcement last week whereby they took more of their programs section two oh two program i am which is a loan program for certain types of housing in certain particular locations and they essentially attached to the opportunity zone saying that if you who did an ots z deal with a two oh two loan they were providing additional incentives <hes> which is a nice way of underlining underlining reiterating that the opportunity zone program is a stackable benefits program meaning. It's not us one benefit or another it layers nicely on on top of or alongside of any number of other tax credit and door other loan programs in the federal government so historic tax credits film own credits new markets credits all work with or can work with opportunities zone equity and so would would the f._h._a. Was saying in this instance hood kind of expanded. Its programming to say hey if into the extent you are doing an opportunity zone deal all in one of our you know kind of locations that qualify for this program other two zero two. We're going to sort of put you to the top of the line topline frontline and so that's a for a developer kind of the ability to not have to wait to know whether you're in her out is a benefit at time is it's kind of a bit of a killer in some of these instances so it's nice to see the federal government looking to align programming with the opportunity zone program which will provide additional incentive two and or push for folks to utilize the program as you mentioned the stackable nature of the opportunity sounded a lot of the other folks. We've had on the the program. Talking about ozzy's have made the point that you structure the investment to be a good investment. I and then the opportunity zone is is sort of like the icing on the cake or the gravy icing on the cake exactly and i think that's spot on the the real estate transaction. If you're going down that path you could go down the business path but the real estate transaction needs to make sense on its own. You know the tax benefit does not make it make sense so if the real estate deal pencils and it's a good deal this provides additional additional kind of sizzle to that transaction. It's already a good transaction so one of the things you've done you you share with your <hes> network of interested parties a long list of all the different changes in features on a state by state basis. What some of the interesting things that are happening on the state level level. Yes i'll never shrivenham. That's up steve but i do pass along and <hes> occasionally get some feedback that people appreciate it and the it's it's hard to tell it's almost like when you go into a room and you're meeting people most real estate folks. Many business people have heard about the opportunities program with some have have delved into it some of read an article some kind of listened and the stuff. It's not that hard. There's only like three basic benefits and three basic rules but but then there's a lot of nuance below the surface and so i'm never sure whether the person we're talking to is kind of a one oh one learner of two zero one three one and so it's the ability to share information nation of bill can digest at their leisure and so the thing you're alluding to that i passed out was from a piece from nova graddick addict which is again an online resource they provide accounting services. They do webinars and seminars and stuff and they tend to have a very good warehouse house of information. That's available in different formats and so one of their authors had put forth a discussion about the different states in china unaware. They're at so some states. <hes> are very much out of the curve. South carolina has its own <hes> o._c. Person that's in charge of their program program and that person is out and about and talking to communities and thinking about kind of what should go on and should we can we use for instance opportunity zone money money to create interest in building schools in areas where we can't afford to do and so he's thinking about macro-level building thirty schools well. Let's say couple hundred million dollars so can he attract equity capital at a decent rate relative to utilizing <hes> opportunities on capital gains put them into a fund or have somebody put them into a fund used the that fund to finance these buildings that the school districts can't afford that's what's fascinating and so kind of marrying p. three public private partnerships with opportunities on equity to show kind of a return have that lease payment backed up by either a state agency or county agency of school and execute on infrastructure is kind of fascinating so the different states are taking different approaches some of them <hes> big picture so the federal program is a federal program and essentially when you sell will there are certain ramifications from the sale of its after ten years. It's federally capital gains tax free on the appreciated value at this point as of two three ago. There were thirty eight states that had followed federal form in english. They said hey if you come to our state and you build or deadly reuse or create a business or real estate in in our state we too so long as you follow the federal rules we too will wave off on our state. Capital gains so thirty eight states states out of fifty have done that and that's meaningful in certain states like for instance new york. That's like eleven point two percent additional benefit in new jersey. It's like eight point six four percent so so in addition to the federal non-payment after ten years on the sale. These states have also said hey. If you do it here we too and so how no one uses that either straight up or you start to attack benefits along with that so some states are looking at. How do we incent rural development of you do that. We're gonna give you a state benefit. How do you focus on <hes> larger cities in some states so if you do it in a city. You're going to get certain benefits. Others <music> are like ohio early on came out with a job credit so if you created jobs you're going to get additional benefits under the day so the osy doesn't require wire federally you to create jobs in ohio. They were trying to incent the jobs until he said if you create jobs in our opportunities zone we will give certain additional things and so the states acer kinda taking different tax different approaches based on what they're looking to incent behavior wise in order to attract that kind of capital and get that type of adaptive reuse others are taking a look end saying hey we have a bunch of vacant buildings and so we want you to focus on building. Let me do an adaptive reuse of vacant building. We'll give you an added state state tax benefit so again there are these thirty eight states and there's a variety of states alabama california connecticut kentucky louisiana maryland the rasco with home a rhode island texas that are kind of doing different things to create energy and interest in the development unique to come to their their state and to invest capital in their state in either create a business or build a building or definitely reusability now. Isn't there a bit of a rush for people to who do their projects or the projects on at least in the pipeline because there's a time constraint. A lot of people are under the misperception that the program ends after this year that is not true not what the rush to judgment is. This year is the benefits. One of the benefits of the three benefits are deferral pay-later reduction. If you're in the program for five years you get to reduce by ten percent seven years he gets reduced by fifteen percent and then if you stay in the program for ten years appreciated value and you sell before twenty forty seven twelve thirty one twenty four seven that sales price on the <unk> value is not federally tax so to go back back to your question when we say five years in the program seven years in the program the deferral in the program is till twenty twenty six and so if you count backwards backwards seven years from twenty twenty six that puts us squarely into two thousand nineteen which is this year and so if one has capital gains and one puts those capital gains into a fund qualify opportunity fund by twelve thirty one of this year so twelve thirty one nineteen those dollars are eligible for a fifteen percent reduction because they have seven years until the end of twenty twenty six if you miss this year and you happen to do that on january second of twenty twenty twenty the sky does not fall however you're not eligible for the fifteen percent reduction. You're eligible for deferral. I benefit till twenty twenty six. You're also eligible bowl for a ten percent reduction because there's enough time five years to get to twenty twenty six and so if you did it in two thousand nineteen you'd be able to fifteen percent if you didn't in twenty twenty or twenty twenty one. You're eligible for ten percent reduction if you don't do it in either of those two years the skies involved <hes> again. You're just not eligible for as much deferral and you don't get any reduction but you're still eligible for if you stay in the zone for ten years and thereafter sell before the end of twenty forty seven you still get the benefit of the sales price appreciation <hes> not being sub federal capital-gains. Is that one of the most difficult things for people to understand about the program or what are the questions you get from people asking about the nuances of it so the questions are there is not one question <hes> i'm on the phone to three or four times a day with different people that look and want to engage in the conversation of what we're doing what we're talking about now and so they some of them are beginners. Some of them are intermediates and some of them are extremely events and so depending on where you're out on the space time continuum there or the continuing their questions are all different so some people wanna talk about businesses in what can what kind of business and when could i incorporate in. What state should i be incorporated other. People wanna talk about while. I want to build real estate and i own the property already. So how do i do that so that's a whole different set of related party rules. Are you willing to sell and then reinvest in the property. Still others wanna understand about refinancing or they have land or they won't have vacant buildings or what's this original use thing and so those the questions run the gamut so yesterday's question was i you know i want to build a distillery. Can i do that. Well one of the sin kanye <unk> question so one of the sin businesses. You can't sell liquor so there's like six in businesses or seven so it's no golf course no gambling no sell liquor nova sasha parlor no tanning salon <hes> a no horse racing those the sin businesses come from uh-huh and have their underpinning in the new markets tax credits world which is like ten fifteen years so somebody says well. I want to create a distillery so i said okay okay. Let's talk about that. Are you talking about the business or you're talking about the real estate either or both okay. Let's talk about the business so your business is going to be buying product walked putting it into a tank for all intents and purposes and creating something spirit or beer widower yes okay. You're going to sell it to a third party. Yes if we're gonna sell it to stores to sell okay so far so good. There's no you're not selling liquor for consumption by an individual that's kind of where they don't want the difference between a bar car and a manufacturing. Yes at a little bit but it's not clear and so it's kind of like well. Distribution versus sailed individual for drinking game. Okay well then fine. You're signed to a third party. Let's then slice the on your little thinner. What about if you're selling <unk>. Tasting room was a free or are. Are you giving away <unk> giving away or selling. Will i don't know okay. Let's assume you're selling well. Is that the sale of liquor that is what's prohibited it. What if that sale of liquor was a thousand dollars of value versus the sale of the product which is a million dollars. She had like you know point. Oh one percent of your value. Oh you was in the sale of liquor would that be enough and the i._r._s. Is unclear on this point. What if you sold food and liquor was an incidental part of it so to your point what it's a what's the difference between a restaurant and bar or bar and liquor packaging story in new jersey now with the microbreweries have people going for tastings hastings in there are specific rules about how many times a year they can do events right what you can give <unk> right right and so part of that has nothing to do with this but but there's a whole kind of lure around liquor distillery and brewery and kind of food and beverage intersection so different concerns are lobbying interested as to one being the other and if you're in the business of stealing you're not supposed to be in the business of selling food and so the bars were kind of taking a position there so that all blaze into this question of this person wants to spend a bunch of money create the distillery essentially sell product with party but you know as nance larry side business they would have a tasting to bring people in to learn about the thing and so i said look at that should work but it's not totally clear and again if that tasting and that on site consumption action and walkout business all the sun became material that becomes more problematic because then starts to look more like a liquor store which is bad versus knocks the story. That'd be fine. Take the same point for casino so gambling not okay so talk to a bunch of casinos. Couple of casinos are bunch couple of casinos. About what have you paid attention to this and the answer no not really because we're a sin business well. That's true but what if think about <hes> pick your favorite casino if you walk casinos not just gambling. There's a hotel piece. There's a recreational piece. There's pool. There's parking and it's a hotel and then then there's the gambling floor so if one was able to legally separate those pieces why wouldn't the opportunities zone investment applied to the pieces that were non gambling and the answer is they they will and so if you created legal separation through like a condominium structure and you put the gambling floor in one condominium unit and you put the other pieces in another unit or five those units that were non-gambling would be eligible for opportunities investment or would you have like casino parking deck l._l. Sake floor l._l._c. put to the side that would not be eligible for the dollar investments or four kind of the benefits but if you got capital investment in the other pieces would be eligible. Bread milososki is co head of the opportunity zones practice. The philadelphia based law firm of duane morris brad. We'll be back with the second part of this conversation about opportunity zones in next week's sierra news hour. We'll have a link to his contact information in in the show notes for this episode. You're listening to the c._r._a. News hour from st state broadcast news dot com toronto-based avis in young has been consistently named one of canada's best managed companies for the past eight years in a row and in two thousand eighteen. The firm achieved platinum status in the survey conducted by accounting firm deloitte. The company's experienced rapid growth over the past decade particularly in recent recent years. Mark rose chief executive officer of avis in young is joining us to talk about the company's culture growth strategy and his outlook for the sierra theory markets worldwide in eleven years with toronto based firm marks overseen growth from two hundred ninety real estate professionals in just eleven evan offices in canada to about five thousand professionals in one hundred twenty offices in twenty countries mark. Thanks for joining us on the sierra news hour my pleasure. Thanks for inviting me so tell us a little bit about what's going on with ableson young. You have been expanding rather dramatically over the past year or so <hes> what what is your approach and how do you think things are changing in the commercial real estate industry. You know in terms of what we're doing. It really has to do with an environment. That's changing a an industry. That's changing and not having the legacy platform <hes> to have to deal with. We have a ten year old company. <hes> that that it systems are all cloud based and people were brought on with the understanding that in a changing environment that we want to settle on a couple of core beliefs and this core beliefs are around culture honesty and integrity can't just be words they are the driving force of what what we do but what goes along with that is a collaboration and communication engaging diverse opinions carrying about inclusion rather than excluding opinion and so when you build a company of that sort it takes on a very different structure and and a very different set of rules for example. We have the n. a. r. which with no smirk intended. It's the no asshole rule and it's been a part of our thesis from the very beginning that service companies are here to service their clients and we cannot afford to have a a difficult personalities or individuals. I think about themselves before they think about their clients or the people who work with them and so <unk> indirect answer to your question because where we've seen so much change in the industry and how we serve as clients and because there is much much more coming rapid change it's being driven by maturity of the industry the changing of the guard in terms of owners real estate and folks that service them and obviously when artificial intelligence and certain technologies actually work israel things that that will change how we do business and you have to have the organization. That's prepared for it so for for us. Avis neon young growth is been quite methodical. You know the strategy was written and finished from two thousand seven two thousand eight eight two thousand eight. We took a document and we launched accompany. The davis company was the company that we started with but it was actually not a document i and what the document was was. Let's headquarter company outside the u._s. Because we want to demonstrate global nothing to do with you know any issues with the u._s. Just the competitive set are headquartered there and let's build something that that will hold a world series and actually invite the world and then we're going to do it with a private partnership and we're we're gonna structure the company that clients come first and i say this not because our competitors bad actually you know. They're quite good but the structures of these companies. If you're a public company you are beholden to public shareholders and you have a fiduciary legal responsibility to drive and solve the the needs of only one stakeholder and that is the public chapels and therefore you have to structure the company accordingly and it's only off the backs of top talent and good management teams that you expand past structure to deliver services. I will the davison young. We are not beholden to the hub shareholder. We are completely beholden to the clients and to the partners and the people who work here and so we have methodically gone out over the last ten years and rounded up individuals. I i in a canada then in the u._s. than in the u._k. Germany now expanding into to places like italy and ireland and spain and hong kong and moscow and austria came as part of the g._o._p. Worldwide network and so this eleven company. She's me eleven office canadian company <music> with two hundred ninety. Three people in forty million in revenue are now is now in one hundred twenty offices in twenty countries around the world old with five thousand people at over a billion dollars of revenue and there's much much more to go. I it's an incredible story of rapid rapid growth and i wonder as you've been on that journey how the company deals with that kind of growth on on such a short time frame. It's you know it's a couple of orders of magnitude bigger than it was when you started that eleven year journey yet it's one of the two thousand five times that size right now which is is pretty well. We're proud of it but everything is based on culture so for example. We just effectively acquired a company company in washington d._c. Called the ezra company and we worked it out that we took nine of the fifty employees -ployees and we didn't take the other forty one just because they didn't fit it end. It's not that they're bad people. They just didn't fit with what we were trying to do. And when you focus in on the human element and the type of people who you want around the table we saw the brand elevating top talent being vested in nine and we had no issues with saying the other forty one should probably go and do other things and that's not the first time that we've done this. We handpicked the individuals who who come in and at the moment i'm i'm looking between individuals teams and and companies who are engaged h with us right now we are actively reviewing over two billion dollars of run revenue of people who would like to join davis yeah that says an addition to what we have. That's enormous. I mean how do you. How do you ensure that. Everything remains consistent. It must take a long time to you. Integrate those those properties when people come aboard had. How do you keep that straight. You know perfect example the acquisition of g._p._a. T._v. a on february first of this year almost double the size of the company. So what did we do. I moved moved to london. I'm i'm here with the team and other parts of the management executive been here to make sure your that we are properly integrating the organization and making sure because it's never perfect but making sure that the needs of everyone from one culture altered to another culture are put together as best as we can and so you take you you just take the time and and and you focus in on how do we build the best company with this umbrella belief system of getting people to work together and collaborating and communicating indicating fully understanding that as you go country to country there are different subcultures so put the swat teams on from the strategy teams to the new teams to the specific merger integration teams we opened up a project management office and all of this work doc is being done humans talking to other humans and making very tough decisions when we need to you know to grow the organization administration and it's going really well and you'll continue to see this back in the early days if we opened up a city in the u._s. Partners from from canada and initial u._s. offices would come and integrate the team and then it's more more offices opened in the u._s. More u._s. offices offices were able to integrate teams and now with international expansion senior leadership integrates the you know the acquisitions. You can't just hold these pieces together and expect them to work. You need to make sure that you're talking to the individuals and and getting the belief system down after that everything works. Do you spend a an enormous amount of your time on the road. You said you you move to london to to help with with that integration to you when you're not you know sitting in the office four and integration of new member company company or partnership. Are you traveling. A lot will let you say this before the the acquisition earlier this year last year. I flew every other day so you see a lot of airports is an awful lot of airports but you know what what this business our clients a demand and quite frankly did they deserve being across the table and our people equally it should be with the leadership team not just hear them on the telephone and the first thing i do you know when i walk into any office i will walk around to every desk and say hi to every single person because people are not fungible you know and they're an integral part of the organization and want to make sure everybody understands that they are respected and they add to the performance of the organization. So what are the changes. You've seen in this eleven year journey <hes> in terms of what customers clients expect from john young and what you feel you. We need to deliver to be a distinctive and unique in the marketplace. You know what i think. How hauer executing is the difference. The change i think as an industry issue the change is clients value value over commodity and and it's you know it's an awkward thing to say what we do for a living is not going to vote but you're clearly take the commodity nature of what we do whether that is processing a transaction project management property management where there's a commodity modesty process at the core of what we're doing financing that's fine but it's going to be viewed in paid at that level what clients are looking for and what they're happy to pay for. This is always the case with any service vertical is value and so any company who isn't changing how they go about their business and focusing on the value added service delivery to the client they are missing now or they're doing that at their own peril and we're starting to see things that quite frankly are worrying me a little bit that we're using technology legit a crutch and quite frankly the technology that exists in our space in many other spaces especially. If you hear artificial intelligence virtual reality it's coming. It's going to be awesome doesn't really work today and and i think that we're throwing some things whether it's holograms whether we're talking about big data it is important summits here but some of its take three four five more years to work and all in all what innocent young is focused on is what we can deliver really well to the client and keep investing in the things is that we need that will work in the future. Have you found some cases where there was a technology solution quote unquote to some problem when you were trying to deal with for a client but your gut told you that there was a face to face need that was more important than just using the technology which might have been easier. Let me just approach that question just a tweak different. I believe that human beings using grape technology to either automate or mechanize process is what delivers value to clients and kind of the age old conversation <unk> service verticals clearly for the real estate industry our c._r._m. System so client relationship management the technology is where or the power is. It's the behavior in the usage of the technology while it's no different <unk> as to how servicing clients right now and the human beings the top talent the value added provider who employs technology to deliver service solution that that is valuable that is what clients are looking for today and unfortunately there are some pieces of technology that have come out and they're already four or five <hes> <hes> layers back in terms of their ability the to really deliver <hes> an and clients and door signed up to something that is already a product or a piece of technology. That's you know that's much better and so that there is a you know a natural tension attention at the moment in terms of what's going to be here today. Which is the best in class and what's coming and what's coming. I think is awesome but you just have to wait a few more years for it because it's not quite here yet artificial intelligence you know if you talk to to medical providers. They know it's the future. They know that they're going to be able to diagnose. Maybe even had surgery implemented through the use of artificial intelligence problem is you can't use it. If it doesn't work. You're dealing with a person's life a little different friend. We're not dealing with anybody's life but we're dealing with people's a financial being. There are pieces of technology that were better than others right now. The great news is it's all what are the markets that you see as the strongest ones in terms of opportunities for avon young and where are you seeing weakness in keeping an eye on things to make sure that you're positioned if the markets turn. We are looking at the u._s. Of course is you know. It's still a dominant player in the real estate services field the u._k. Germany france china obviously obviously in hong kong starts but japan india <hes> singapore but all of a sudden south korea is is a dominant force capital flows that are moving out of south korea all across the globe clearly into the u._s. Clearly into canada clearly into the u._k. Is now coming from places like south korea. So where are you look at the engines of growth where you have population poppulation where you have the headquarters of businesses. These are the places that real estate thrives you know a little known fact act is you look at canada with all the money and it is an amazing place. We are so proud to be a canadian company and we proudly sadly show the maple leaf everywhere but you do also have to understand that all office space in the entire country fits in new york so it's always a matter a relative size it are those capital flows that are coming from south korea because of oportunities that those companies see elsewhere in the world or is it is it because of concerns over stability in that region both and you you know you know. We saw this with russia at some point. We saw this with china at some point. We've seen this with the south american countries. It's both but you're <music> absolutely seeing some pretty mature astute investors who see opportunity in north america and they are putting their money tour when you are keeping your eye on things that might <hes> be indicators of the market market going south in some geographic area or in some asset class of what are the things that you particularly liked to look at. You know what you have to go. Oh <unk> asset by asset class by class very very differently okay so let's talk product types if you didn't have g._d._p. Growth or g._d._p. Stability i'd worry about all of them from office perspective. If you didn't see employment growth can you. You'd be a little worried but i'm going to pause for a second and just say i think it's also overlooked that you're talking about a planet of seven billion people. Most sources will tell you in the next fifty years. This is going to be a planet of ten billion people. Now you would expect that the that the population growth to be in some of the countries that housed largest populations in the first place make some sense a when you add three billion people some of what's being thrown around from some of the major sources of information say for example that in order to put three billion people more on this planet that you have to start building a million in square feet of housing per day every day so i think that there's a macro trend and specifically. We are bullish on the acquisition that we've made a g._p._a. Because we think that everyone is looking at brexit as a long term problem when we know that brexit is a problem but as a short term problem. We've launched this company into the teeth of the middle of two thousand eight. The world was falling falling apart. That's exactly when we wanted to merge this company and start to grow and so do the downside in in our industry. Our interest rates skyrocketing well. It looked like they were going to but they're not they're going down. There's <music> g._d._p. Stability employment growth or stability things are actually pretty good out there now if you're a retailer your suffering from the amazon effect and we had too much retail property in the u._s. Canada has less of a problem with that the u._k. Has slightly less problem with that but we have macro trends that very simply tell you where you should worry and then you have more of the micro influences like a change in logistics and distribution that has changed kind of the retail community but that also gave birth earth to a white hot industrial sector people are worried about shrinking space in office and all of a sudden the flex office providers riders stepped up so there's more to come here. You know in terms of dissecting the data in front of you. I am extremely extremely bullish. I would love for there to be a correction in terms of pricing because i don't think it's a stable for cap rates as low as they are but with that said i've never seen in my thirty five years. I have never seen the amount of capital out there to be put to work work in debt and equity. I've never seen this amount and that bodes really really well for our industry. So you said earlier that you have a pipeline of. I think he said two billion dollars worth of business that you're looking at bringing into the company from other companies <hes> in acquisitions what areas of the world are are you looking to expand to next well. You know it's obvious if you take a look eh our platform we have affiliates in certain countries that that we want to either acquire or acquire or acquire companies in those countries india is a place that we wanna open up offices. Yes <hes> <hes>. Australia is the place that we want to open up offices. We still haven't quite filled in a seattle for ourselves. Were pretty you. You know we're pretty good you know in canada. Were one of the top three there are. We've had five offices open germany. You'll see something out of a soon for the netherlands. The runs but again going back to it. If you think of a major market where real estate inventory and decision makers sit those are the geographies that we want to be in and then you look at what type of property is the focus whether it's going to be retail industrial office multifamily our hospitality and we will put the combination of what we call the two by five by five the two clients sets owners owners knock you pires the five service lines that each of them need and are five core product types and those are the places that that we look to invest more rose is chief executive officer of avis in young the full service global commercial real estate company based in toronto. Thank you you for being with us on the podcast today my absolute pleasure. Thanks for making it available. We'll be back in a minute. This is rabbi richard address join us for our podcast series from jewish sacred aging entitled seekers of meeting will explore some of the issues and events that impact ourselves our families and our jewish world eldest large in light of the current revolution in eighty the secrets of meaning podcast airs every friday morning at eight a._m. At jewish sacred aging dot com take today. You can't wait for the media to cover your company. You have to to be the media. Take advantage of the power of audio and video. It's the best way to showcase your expertise to perspective customers. Let the lubec in media accompanies handle the technical side. We're award winning audio and video producers. We can help you produce podcasts video programs remotely or in our fully equipped studio uh-huh in cherry hill visit being the media dot com for more information investors bank bank headquartered in short hills. New jersey is a full service community bank serving customers. Since one thousand nine hundred twenty six investors recently originated eleven eleven larger commercial real estate financing transactions valued at about one hundred and seventy one million dollars. The commercial mortgage loans were primarily used to refinance. It's existing credits on multifamily housing complexes office structures and cooperative apartment buildings the banks c._r._a. Lenders also negotiated construction loans owns and completed various lending contracts in the one million to three million dollar range. The bank takes a balance sheet lending approach to its commercial real estate portfolio eleo that means the bank keeps the loans in house and works closely with its borrower customer on keeping the loans performing properly the banks commercial lending portfolio also also includes more than two point six billion dollars in commercial and industrial loans in recent years. The bank is diversified portfolio to include more loans to owners of commercial mersal office buildings industrial warehouses distribution facilities and retail shopping malls as well as healthcare facilities joining us to talk about investors approaches coaches richard spangler executive vice president and chief lending officer of investors bank under rich spangler leadership investors commercial real estate portfolio has grown from <hes> <hes> less than eighty million dollars in two thousand five to more than thirteen billion dollars at the end of june rich. Thanks for joining us on the sierra news our good afternoon senate steve so you folks at investors bank. <hes> just booked eleven larger <hes> commercial real estate finance transactions about one hundred seventy one million dollars. You're growing your c._r._e. Portfolio <hes> what's the current value and what's making grow currently early on a twenty two billion dollar loan portfolio. We've got about fourteen billion of it out in c._r._a. And that's comprised of just under nine billion dollars offers of multifamily and just under five billion dollars of traditional commercial real estate <hes> we're seeing all different sectors of the marketplace so there's really not a concentration in any one area and it's been something we've been emphasizing here at the bank since two thousand and six two thousand seven. What are some of the factors that are driving the growth. <hes> is it any particular economic trend or is it the way developers are working. What's going on overall. It's been a very active market. It's been a busy market. It's been a great run post-recession. <hes> we decided i did in two thousand and nine. We really wanted to be in the multifamily space. We got heavy into multifamily is two thousand ten two thousand eleven. We've diversified a little the last couple of years i would say seventeen eighteen and now in nineteen. We've got a bigger emphasis on the commercial side just due to our concentration of multifamily so we're would probably doing more in the industrial office type sector than we are in the multi <hes> and it's it's an overall asset class. That is very busy right now. With the exception of new york multi which of course student in new rent regulations is in somewhat of a state of flux. How much of a role is the interest in the urban core. We're playing in the portfolio building that you're seeing are are you folks. Working in the urban settings. Were a lot of the multifamily. Luxury development is is going on like jersey city and those places yeah. That's what we're seeing. Most of. It is all transit based most of the multifamily growth whether it's new construction whether it's rehab renovation it seems to be centered around those urban centers around the transit village concept type so it's whether it's off of you know one rail line or another. There always seems to be a connection to some type of mass transit. You've indicated that investors. Bank is a balance sheet lender. Can you explain the advantages of a a balance sheet lender versus competitors who might be doing structured deals sure on the balance sheet side. You know basically what we commit to what we term. Term sheet or quote is basically going into our portfolio. It allows us greater latitude greater decision-making <hes> as far as things that are going to happen prior to closing as well was after closing a lot of other lenders are not balance-sheet they're selling off the product and the secondary market post closing and there's somewhat limited by third parties business to what they can promise what they can do and what they can't do so we're finding that because it's going on our balance sheet <hes> we have greater interaction with the borrower we to make more of our own decisions <hes> we we participate in a lot of different asset classes we offer a lot of different loan types and those are all things at the bar was really seemed to like. There's some value to stay in close to the borrower and being actively involved in a relationship with them yeah well we some. Most of our loan transactions are not standalone single transactions. We alone in for approval. You know daily and weekly basis when we look at it most. Everyone is a repeat customer for five six loans here. <hes> we offer a lot of different types of loans. We do five seven ten fifteen year loans. We do recourse non-recourse. Burn off recourse. We do owner-occupied keep hide. We do investment you know we do. The owners are residential homes for people when they buy them so we kind of cover the full gamut of different types of loans many of those other blenders specialize in one area you know c._b._s. Shop will be a great shop for you know a very high leveraged but a non-recourse type of transaction so when a borrower needs recourse. They can't go that route. You know life company. Maybe something entirely different with a very low leverage low l._t._v. but a great interest rate. We're kind of in in between you know we do. Construction loans do non-recourse. You know aaa type properties. We do bridge loans on transitions so we offer a full gamut gamut which you know with the real estate community. I think they like knowing that they can go back to the same institution. No matter what the asset type is so as you look ahead over the third and fourth quarter. What are you forecasting in terms of sierra loan production all right. I'll forecast that if you can forecast for me steve where the long bond is going to them looking at it today with a one fifty nine right to list sure where yeah i'm not sure any of it is going you know unfortunately you know we we lend off off of a long-term rate and we raise deposits off of short-term rate so it's a very challenging market. It's been challenging you know the past few months and even the past couple of weeks of gotten more challenging you know our cost of funds not dropping as fast as our <hes> cost of loans and so the interest rates on loans have more pressure on them than interest rates on deposits house. It's and you know there is an implied floor that we can only take a loan down so far so that is our biggest challenge right now. <hes> is actually being able to price loans competitive competitive relative to our deposits so depending on how that shakes out for the rest of the year that that is my biggest concern. Life companies do not offer deposits. They have a different source of funding and <hes> when rates go up. We tend to be more competitive. Instantaneous rate shocks. A lot of other people move their cost the money very quickly they moved their interest rates very quickly so when a quick quick upmarket we have a big advantage over the same token in a quick downmarket. You know we don't replace cds or money markets. You know instantaneously. You have a c._d. With us that's a six months today that rates not changing for six months. Investors bank is <hes> a regional bank twenty seven billion in assets or thereabouts outside. How do you compete with the larger banks that are very active in the new jersey new york metro market <hes> what is there is his secret sauce that you guys use <hes> that makes you different once again. I'd say it's because we cover so many different facets. You know once again a lot of other banks. Thanks i have different departments different areas. Maybe they only do certain types of loans because we do a broad base of a lot of different types of loans <hes>. I think that's something that gets us out there in front of everyone. I think the the fact that we're located here new jersey new york a couple of headquarters right here in short hills and new york city access to people is very good that we say that the people you know you're much much quicker. You're going to get our president and our c._e._o. At their for visit then you're gonna you know one of the large orange institutional banks that are nationwide rich spangler is the executive vice president and chief lending officer of investors bank which is headquartered in short hills is new jersey rich. Thanks for taking the time to be with us on the podcast today and that'll do it for for this. Week's addition of the sierra news hour don't forget to check out our audience survey by clicking on the purple. Take the survey button below the podcast player on the show page for this episode and please consider becoming financial supporter of our podcast by clicking the patrie on but if you have comments about our program or a story idea that you'd like to see us discover send me an email addresses steve at st broadcast news dot com you can also leave us an audio comment by using the voicemail feature on the right side it bar of our website at st broadcast news dot com. We take the show every week in our studios in cherry hill new jersey for everyone at the c. r. e. news news hour and state broadcast news. This is steve lubeck. Thanks for listening and we'll see you out there on the net. Take good care.

canada new jersey new york chief executive officer philadelphia partner Germany Brad mowatt cherry hill chief lending officer china davison young Mark rose executive
CRE News Hour 7/5/2019

Commercial Real Estate News Hour

1:00:30 hr | 1 year ago

CRE News Hour 7/5/2019

"From the business desk at st broadcast news this is the c. arena news hour. I'm steve lubeck. Happy july fifth. Everyone in this holiday edition of the sierra news hour. We'll talk about economic trends in the philadelphia region with lauren gilchrist senior v._p. Of j. l. l. we'll chat with eric rabkin from the real estate law practice at akkerman about the firm's tenth annual real estate sector report a look at retail sentiment with matthew harding in melissa seabright of retail property company levin management and public public relations expert. Katie coats visits to chat about her book. Yes vote the public hearing plan for developers. We'll be back with the top news stories right after these messages <music> turn earn your podcasting passion into profits the book the business of podcasting describes the business side of podcasting including how to become a professional national podcast. You'll learn about position your clients expertise who podcasting to plus the best business models how to find clients and much more visit the the business of podcasting dot com today. You can't wait for the media to cover your company buzney. You have to be the media. Take advantage of the power of audio and video. It's the best way to showcase your expertise to prospective customers. Let the lupatkin you bet can media companies handled the technical side. We're award winning audio and video producers. We can help you produce podcasts and video programs remotely or in our fully fully equipped studio in cherry hill visit being the media dot com for more information now a quick look at some headlines from this theory world liberty property trust is sold eight hundred walnut street in philadelphia pennsylvania for ninety nine and a quarter million billion dollars liberty developed a twelve story hundred fifty three thousand square foot medical office building in two thousand thirteen for an investment forty eight and a half million the property pretty was purchased by university of pennsylvania health system mosaic real estate credits provided columbus pacific with one hundred sixty five million dollars in construction financing financing for pendry pork city slated to debut in the canyons village in park city utah in two thousand twenty. One preconstruction works begun in the development official. Groundbreaking genus slated for this summer m._l._k. Real estate capital successfully arranged a joint venture between a bridgeport based multifamily operator and a new york based private equity equity fund for the off market acquisition of two hundred and thirty eight unit eight building multifamily portfolio in bridgeport stratford connecticut m._l._k. Didn't identify the multifamily okay family operator but said its portfolio consists of more than forty properties in connecticut and rhode island valued at more than three hundred million dollars and harvest properties in joint venture partner in new york life real estate investors on behalf of mc morgan northern california value ed development fund one recently announced the sale of one bay plaza in burlingame california to local developer operator woodstock development. They didn't disclose the amount. The tower was originally purchased in two thousand sixteen for about two hundred seventy three three dollars a square foot. There's a lot of development activity going on in the nation's fifth largest metropolitan market it philadelphia and jones lang lasalle senior vice president and director of research lorne gilchrist is keeping a close tab on things like the eighty seven hundred plus multifamily development projects currently under construction and eight billion dollars in opportunities on investments projected over the next five years in the philadelphia region. The region added almost six thousand construction jobs to the community in the years between twenty seven and two thousand eighteen so he thought it might be time to take a closer look at what's going on in the philadelphia region lauren. Thanks for being with us to talk about <hes> construction and trends in the philadelphia metro market hi steve. It's great to be with you happy to do so <hes>. I think it's a really interesting interesting moment in the market right now so happy to be a part of the program so tell us what's going on. There's a lot of multifamily development going on your report. Indicates over eighty seven hundred multifamily development projects around fifteen zip codes primarily <hes> what's going on there. Yeah that's correct so that number number is a regional number that reflects the multifamily projects currently under construction all around the region and what i think is really notable. Notable is that where we saw a significant volume of construction in the center city area and certainly see that continuing for the next eighteen months or so uh-huh a lot of the new construction that we have seen has also been in the suburbs and if you look at the extant area or specifically typically the one nine three four one zip code action is leading the way right now with over twelve hundred units of multifamily under construction just just in that particular area <hes> so that is really four different <hes> developers progressing on projects combined to make that twelve hundred plus you know <hes> including product called kiva flats <hes> face to ask bridge at main hanover exton square and parkview at oaklands and beyond the fact that that's not really where people think the market momentum is. I think what's so significant is the simple fact that a lot of developers responding to changing lifestyle trends in terms of where and how people wanna live the flexibility with which they wanna live and for the first time that what is causing significant construction outside the course of the area so what is it about extant for for our listeners who are not in the philadelphia market. <hes> exton in is a suburb of philadelphia <hes>. Why is that getting so much development these days well. I think that it's a number of things but you know the city does not necessarily early fit the mold for every individual from a lifestyle perspective and there are certainly great schools out in the action area and and for people who want flexibility from a lifestyle perspective for you know and tend to rent apartments that might not want to be in the heart of the city exton really provides. It's an opportunity to live a more suburban lifestyle with quality schools but also maintain the flexibility and quite frankly lower maintenance than and what one might experience in house and i think really to it's kind of the next evolution of the mixed-use hub that we saw happen in king of prussia recently which was to say the developers of russia's town centre really created an <music> an urban suburban project <hes> to enable people should be able to live and walk just shopping live and walked dining live and walk to the grocery or at least have those items be short <hes> call it car ride away and i think that extant is just really kind of the next spot <hes> that we're seeing some of that mixed use development take hold in the philadelphia area. We're seeing a lot of interest in opportunities. Zone investments like many other parts parts of the country but your projection is. They're going to be nearly eight billion dollars. In opportunities own investments over the next five years. What's driving that and what kinds of projects are people looking at doing really what we have seen. Is that those projects <laughter> <hes> that could get off. The ground are in areas that were already experiencing. You're answering some upswing from market forces despite being designated as impoverished or challenging from an income and population perspective <hes> that's largely due to the fact that the opportunity zones were designated utilizing twenty ten cents a state up so a significant a portion of that investment figure projection really is in the university city area specifically where schuylkill yards is slated to get out of the ground in partnership with anyone realty trust gotham as well as longfellow and so that project you know really may amy not have been ripe with or without the opportunities zone but certainly that provides an additional financial catalyst for capital capital providers that are able to get structure right <hes> that being said there is still a third round of guidance that is due out from the ira arra that buttons up you know some of the loopholes that remain in the program in terms of clarifications so what's difficult is it's gotten a lot it does we've definitely seen some early investments and some funds being raised around the country but it's still somewhat risky due to the fact that the guidance attendance is not one hundred percent that by the federal government at this stage and we have had a number of experts on the theory news hour talking about this from a legal standpoint from taxation standpoint and a structure standpoint so <hes> we'll come back to you <hes> when some of these projects get in the ground and the see what <hes> what your take is on how well they're doing. <hes> one of the other trends that you've noted is that <hes> the the region has been pretty healthy and adding construction jobs to the community over the past <hes> seven or eight years. It looks like <hes> a little more than fifty eight. Hundred construction jobs have been added. <hes> what what does that trend tell you about construction in the region and does it give you any sense of direction where the economy is likely to go in the philadelphia market over the next couple couple years. I think a lot of the construction job increase that we saw was in response to the significant and in fact recordbreaking volume of square footage delivered particularly in the center city area in terms of both renovated office product ground up office product as well as almost twelve thousand units of multifamily delivered over the past several years so we've seen math of institutional project jack <hes> we've seen significant net new investment to the city overall and in addition to the construction that everybody sees going up in in the sky on the day to day. There's a significant amount of tenant fit out work on the office side. That's a little bit more visible to do you know the naked eye walking around on the street that is really a contributor to the overall construction job environment as tenants have been renewing leases in this largely stroll over cycle so between two thousand seventeen and call at twenty twenty two. We were experiencing experiencing about six million square feet of lease roll over for two plus flora penance so a lot of those tenants have downsized in place in order to take advantage of new workplace strategies and get more dense in place and to be sure a lot of tennis also moved to be able to avoid the hassle of renovating in place and so while they might not have cost cranes on this guy those office moves and renovation cause a significant ignificant increase in the amount of construction workers needed to complete those spit out so when we look around the east coast two thousand eleven to two thousand housing and eighteen we saw about six point seven percent increase in construction workers <hes> but what's i think interesting is that you know the northeast corridor award or average overall with thirteen point two percent so even though philadelphia grew fifty six hundred workers that six point seven percent is less than half of the six point or thirteen point two percent. Excuse me that we saw grow across the rest of the corridor and i think the only thing that i could say beyond the positive avenues of that increase jobs is the simple fact that we still do lag the rest of our pure markets around the east coast when it comes to new construction and job creation and one of the things that we hear frequently from the developer community is that <hes> we have very high labor costs in the philadelphia market but we don't have the <hes> the higher rents of our counterparts city such as washington in new york absolutely louis accurate washington well new york in particular has experienced significant rental rate appreciation as compared to the philadelphia market. We i do tend to still be a steady eddie. Rental rate increase market of about three percent year over year when we look at those numbers i and new york and boston have increased in terms of rental rate appreciation significantly faster so while we're kind of at the stage where we're seeing recordbreaking rents in the philadelphia c._b._d. Of around thirty three dollars a square foot full service and you know conshohocken experiencing class-a rates in the thirty eight dollars square arrange radnor somewhere around there as well those rants really pale in comparison to the rent that boston and new york are getting overall overall and that has largely been what's made the capital challenge from a renovation perspective and acquisition perspective activists underwriting and exit in a market that is seeing slow rental rate growth is difficult from a capital traction point of view any any other warning signs that you're seeing in the numbers that people need to be keeping an eye on or is it smooth sailing for the rest of this year well i do you think that the recent announcement of the closure of the refinery in philadelphia due to the explosion that recently took place there as well as the the closure of hahnemann hospital are certainly significant labor events in philadelphia to be sure we've always had higher unemployment than other markets around and you know the east coast due to our high rate of poverty in the city <hes> we've never in my time in philadelphia seen gene such massive closures of facilities that employ call it middle wage to upper middle wage workers and so when i think about you know several several thousand people hitting the job market to some degree that provides relief in terms of the wage rate increases that we've seen provide some some relief to that low rate of unemployment and tends to balance the economy out because the labor market has been so tight. I am slightly concerned. Overall <hes> <hes> you know the perspective of what it does macroeconomically in terms of spending in terms of occupancy of the possibilities it's true but you know across the country to we're starting to see some signs of i think softening as a function of trade as a function <hes> <hes> of the fed even responding now to say you know we're gonna hold interest rates at the moment despite kind of decreasing them recently so. I don't think there's any clear trajectory at this with moment. Certainly the economy still adds jobs or is continuing to add job but i do think there's some kind of storm clouds on the horizon. The question is how faster they moved back. Lauren gilchrist is senior vice president and director of research byrd j. l. l. in philadelphia or thanks for joining us today. I'm sure we'll check back with with you at least once or twice more during the year. It was great to be here with you. I really appreciate the time. Executives are bullish about the state of the u._s. Commercial real estate market seventy percent say they're more optimistic about the market in comparison to last year that some of the results from the tenth annual u._s. the real estate sector report produced by the u._s. Law firm akkerman joining us as eric rabkin that chair of akron's national real estate practice us to talk about this study how they got involved in producing it and what some of the other findings were about investor sentiment in the commercial real estate market. What got you started producing sector report. And what have you seen over the ten years <hes> in terms of changes in the marketplace while <hes> thank thank you so much for having me on your show <hes> really though if you look back at where we were ten years ago we were basically in the depths of the worst the recession <hes> to hit the country since the great depression so we started out <hes> a lot of what we were doing especially in our in our real estate the group <hes> was to <hes> try to bring as much sharing of information as we could to the real estate industry which was <music> suffering incredibly during the great recession so we started out doing this survey of c. Suite executives <hes> throughout the country kind trying to gauge the just kind of the fever the temperature the temperature of what's doing in the marketplace and we found that the real estate industry in general but of course our clients and contacts and friends were incredibly <hes> grateful for us to bring this information out <hes> as to how others were were kind of viewing the market and to see if it matched their own sense so so <hes> as we came out of the recession in two thousand eleven two thousand twelve we thought it was a really interesting important product that we continue to who pursue so that's kind of what we've done where every year we take the temperature of the commercial real estate industry and we publish our findings based on based on on that survey so i gather from this year's survey that you're seeing some strong optimism about the market compared to the way things were last year. We're still seeing very good optimism. <hes> there's no doubt that there's more headwinds than there were. Let's say two three years ago <hes> but certainly at least for now even with <hes> <hes> uncertainty in some sectors of the economy <hes> in particular. You know people aren't sure about what's going on in washington. People aren't sure where where interest rates are going month to month <hes> earlier in the year there was much concerned about <hes> were rising interest rates now that has kind of gone right away and and looking possibly even tortured interest rate cut this summer so <hes> there's still a lot of good optimism in the market and even though and a downturn is simply inevitable and this isn't just real estate. This is you just for the economy. It can't keep expanding <hes> <hes> forever without a slowdown so at some point there will be a slowdown but i think that at least from what we can gather from the from the clients and contacts wchs and executives that we speak to <hes> when it does <hes> start to slow down. It won't be anywhere near as deep as it was essentially ten years ago. <hes> seems to be a lot more <hes> equity in the markets or just a lot more discipline <hes> when into underwriting getting transactions <hes> since the recession ended <hes>. I think there are still some you know they're definitely commentators will say there hasn't been enough <hes> discipline win but <hes> i. I don't think they'll they'll be any economist commentator. Who would say that. We're headed toward a massive crash. <hes> that'll that'll be much more of a of a slowdown which again is inevitable sure. It's a new business. Cycles are precisely that cycles exactly right so when you talk about the funding vehicles year survey seems to indicate and this is a trend that's continued for several years that <hes> the people surveyed expect most of the funding to come from private equity funds and institutional lenders. What does that tell you about the nature of the market. What does it tell you about the the way. People are thinking thinking about financing their development. <hes> what i think one of the things that's happened. I think since since the recession ended and we've been in this prolonged period of expansion manchin is that there is much more <hes> they're much more options <hes> in all throughout up and down the capital sack and one of the things <hes> certainly that has taken hold in the last few years are <hes> used to be that there was private equity to help fill in your capital stack stack as far as equity but <hes> debt funds have become much larger players in the marketplace and <hes> because they are <hes> not banks <hes> and not anywhere near the kind of regulation that those kinds of <hes> lenny institutions are subject you they can be a lot more flexible flexible <hes> on their terms so we're seeing it for sure in the marketplace that <hes> developers that normally would have gone to <hes> banks or even insurance companies <hes> but but certainly on the construction side of things that have gone normally gone to banks are finding ready <hes> sources in the <hes> private debt world and again it much more flexible terms and the the other thing that i found interesting in looking at the report is the <hes> the amount of foreign investment that <hes> people are expecting to come in particularly from china talk a little bit about china. <hes> you know it. It's interesting because it's such solarge economy has so much effect on on really on on most of the world <hes> and we saw tremendous amounts of of investment from china <hes> earlier in the two thousand teams to have <hes> ed somewhat but it it's just such a massive economy that you just assume that <hes> that will continue around the world <hes> and i think that regardless <hes> honestly regardless the politics <hes> the united states real estate commercial real estate market is always going to be an attractive investment and that goes for or the <hes> latin american countries where you're seeing <hes> pretty significant increases in investment from mexico and brazil coming into the u._s. s. What's their goal yeah. I think a lot of it is is is safety. <hes> as as there's economic uncertainty in many places around the world you know venezuela is obvious example just because the headline so often <hes> and i think there's a lot of flight to safety and and kinda just to reiterate what i just said. It's the united states commercial real estate. Market is perceived as as in very safe investment vehicle for <hes> for investment but there were some other key trends that your survey identified them. One of them was was <hes> respondents who say <hes> tax reform is one of the most important trends on real estate development. <hes> the the tax reform bill the opportunities zones our they having an impact and where do you see that going as we go forward the opportunity zones at some point or going to <hes> potentially ashley sunset or do you anticipate. They'll be renewed for another ten year term. <hes> you know it'd be nice to see them renewed because there's no question that the goal of why this is in there <hes> that <hes> to spur and incentivize investment assignments in <hes> areas that have <hes> <hes> really need this kind of investment so that you know it's based on the census insist tracks and the areas that are most in need of <hes> investment so the goal of in particular in urban areas of bringing investment to areas that desperately need <hes> influx of capital influx of jobs is is really fantastical so the there's many any change in the tax code that are designed to incentivize behavior <hes> the the obvious examples deduct mortgage interest in. There's nothing magical that your house mortgage has to be deductible and your rent. Isn't we want you know however many years ago that was they wanted to encourage americans to own homes so here's is an incentive. You can deduct your interest on your taxes. It's it's it's an incentive and <hes> in our firm. <hes> this kind of <hes> incentive tentative goes right along with <hes> understanding and bringing to bear our extensive experience in various economic incentive <hes> programs at something that <hes> we have done for many years <hes> we have an economic incentive practice that helps developers kind of unlock all these various incentives that they might not know about and opportunities owns is yet another one so <hes> our our national team on opportunity zones owns is all over <hes> the space <hes>. We think it's it's a very interesting important incentive and i hope it considers but i think it'll happen. Is let's see how it plays out if it ends up where <hes> investments pour into deals olds that probably shouldn't be be done except they happen to be in an opportunity zone we might not see continued but if but if the the deals themselves are underwritten properly and they're and they're good you know a deal that should happen whether or not it's an opportunity zone. You'll just have much more <hes> <hes> lineup of investors looking to defer their capital gains into these <hes> into these projects on the technology side one of the things that <hes> is a common theme among people in the sierra <hes> marketplaces that <hes> commercial real estate tends to lag behind other industries in terms of its adoption of technology <hes>. What are you seeing in terms of more adoption of technology or how. How important is that going to be. <hes> i think i well. I agree with you that real estate. <hes> in general has been slower than other areas to adapt new technology into it but <hes> i think that the world is changing quickly and real estate is keeping up with that <hes> and so what you're seeing this especially for just for example in <hes> in office buildings and <hes> <hes> apartments you have to have the latest technology <hes> <hes> because essentially the the occupants whether it's a residential tenant and office tenant the these <hes> technologies are looked on as basically must have amenities and so if you don't have the latest in a <hes> cell technology for your building and you know applications <hes> to be able to <hes> for example turn air conditioning on and off and whatever <hes> other <hes> technology that there is <hes> for for smart buildings. I think i think more and more people are looking at those as not that's nice to have but it's table stakes so developers are recognizing that they have to include all of these technologies that people are expecting <hes> in their projects one of the other trends that <hes> your survey respondents identified as important as the aging of the population the graying of america what what do you think is going to be happening with senior development and health care facilities and what should investors be thinking about in terms of positioning themselves in that area area yeah. I think that that certainly over the next decade this is going to be a massive area for investment and development senior living facilities ladies and not just an and not just <hes> assisted living in certainly there will be a ton of investment and that but also active <hes> senior you're living as americans get older and the baby boomers continue to age <hes> they are still leading active healthy lifestyles and all of those kind of active senior communities as well as the <hes> assisted living facilities will just become more and more ubiquitous <hes> and <hes>. I think one of the trends that we're seeing now is for assisted living and kinda you know the the medical medical related senior living to have more and more <hes> luxury accommodations as opposed to more spartan almost hospital like <hes> feeling it'll be much more of a luxury development where <hes> i think as the baby boomers get older and older and need those kind of facilities today they and their children <hes> will be much more attracted to these little luxury properties <hes> we're seeing we're seeing a bunch of that <hes> and so healthcare combine with residential just the whole kind of senior living concept is only going to continue to grow and <hes> of course housing housing in general is a very strong contender in in the sectors that your respondents think <hes> are going to be most active in two thousand nineteen eighteen. How is that different from previous years or is single family multifamily going to dominate. What do you think <hes>. I think multifamily just continues <hes> dominate <hes> the <hes>. It's been that way. <hes> continues to be a very well performing sector. <hes> it also is an area just as saying before where <hes> if you're going to attract millennials and others to multifamily projects that has to have an elitist elitist in technology and the latest amenities <hes> <hes> in many cases you know as as years go on now what you'll probably we see a need for is less parking <hes> <hes> but more in the way of amenities and so we all you know i i. I don't think there's anyone who d- who thinks multifamily is waning anytime soon and then one of the interesting things that we're seeing is is <hes> this kind of concept but in these single family residential <hes> sector where you're starting warning to see instead of building single family residential for sale you're seeing single family residential for rental which is is an interesting <hes> kind of change that you didn't really see much of that kind of development. Let's say five ten years ago but now you're starting to see more of that. Eric rabkin is the chair of akkerman crimines national real estate practice group eric. Thanks for joining us on the program. Thanks so much really appreciate you having me. We'll post a link to the akkerman tenth annual the u._s. Real estate sector report in the show notes at st broadcast news dot com traditional bricks and mortar retailers are continuing to embrace technology to serve customers and gain competitive insight north plainfield infield new jersey retail management firm eleven management corporation surveys retail tenants of it's one hundred five property fifteen million square foot portfolio polio several times a year. The latest survey its eighth annual mid-year retail. Sentiment survey has some very positive results in a lot of optimism about the retail hill selling climate for the rest of the year joining us to talk about it or matthew harding president of levin management and melissa variety vice president of marketing melissa and matthew. Thanks for joining us today for having us. What are the retailers telling you about how they feel. We do the survey three times a year. <hes> be once <hes> just before the holiday selling season once just after and then once during the middle of the year which we just completed <hes> this survey asks or are retailers how there has been so far how they expected it and up <hes> with their projections for sales for for the balance of the year and other things and then we also focused a little bit more in this survey on <hes> technology and how they're using technology and so forth so overall it was an extremely bullish response from retailers they've had had a very good year really record kirk breaking in terms of positive response that we got in the survey <hes> and our pre predicting good things for the balance of the year as well <hes> nearly three quarters of <hes> tenants or seeing traffic levels in their stores that that equal or exceed last year for example and really as i said one in the strongest gains in our our surveys history. What do you think accounts for the <hes> the such a strong positive outlook <hes> well you know it it's fact based to a certain extent we survey <hes> you know this is not surveying folks a corporate headquarters where were surveying managers in the stores and so it it's really a grassroots view of how stores are performing <hes> and it's a variety at stores restaurants service businesses. This is typical businesses that you'd find in a shopping center other retail property <hes> but it's it's really just based upon how they're doing doing so that really translates to economy consumer confidence and then also how it's very interesting to see how technology which has been something you know over the last number of years there's been a threat in a sense to bricks and mortar how different aspects of technology roger being used by are tenants to market themselves to reach their customers promote their businesses use <hes> watering ordering online and picking up in store so that they can get incidental sales from that so it's a combination of things but really just a continuation of a couple of years hero our continued strength <hes> that we see from retailers both in terms of sales and traffic and so it really just a very good overall now melissa you have been looking at the fact that the physical retailers are trying to up their game <hes> to compete a little bit with the online shopping. <hes> talk a little bit about what people are doing. <hes> matthew mentioned they're bringing in technology at greater levels than ever before but what what are some of the other things that physical retailers doing well. The good news is the majority of americans still prefer to buy at african mortar stores <hes> but they have to create a difference <hes> experience to get people to come in. You know it's convenient to sit at home by and search and have a delivered to your door <music> but now people want a little bit more than just going and grabbing a good product <hes> and it's making our retailers reinvent their you know what they what what they sell and what they do at their store and making them do a little bit more research about their environment around them. Their community tiny engaged with him to make a more customer experience for <hes> their buyers. What are some of the technologies that people are trying to use it. They didn't use before <hes> far as technology you know so it's <hes> digital coupons discounts loyalty points you know offering free wi fi <hes> in store lining with the free shipping for out of stock items. The electronic receives <hes> other features being that <hes> mobile scanners enters for inventory checks. <hes> sales floor price check scanners and were able to sail systems which is nice. If there's a big line you can find somebody eddie standing around in the store. Check you out quicker yang iraq and gather that <hes> people are still doing comparison shopping with their cell phones while they're standing standing in the brick and mortar store. Definitely people want the best sale they can get <hes> so they're going to do their their research before <hes> walk into into the store. Is there any sense that the retailers are using technology as a way to cut down on inventory because i know oh i've heard anecdotally from people who go into stores and they don't have the product in stock in the sales people there will say well order them online and try them at home in whichever ones you don't like bring back to the store you getting a sense. That's happening more. Yes i think so <hes> you know retailers are trying to be smart <music> about store size rent and efficiency and so forth so <hes> it you can see that happening in stores in in a number of ways and some retailers definitely do it better than others <hes> where <hes> someone in a store at bath and beyond is a as an an example where they they do it pretty well. I think the sales associate if it's not there they'll they'll order for you direct to your home free shipping and so forth so they do a very good job of of making sure that they they have the sale. I was in a store recently. I won't mention the name name but where person just shrugged and said well you you can take a look and and <hes> go order online at home where opportunity to lose the sale. They're are really so but it does help them. <hes> cut down on on <hes> space. We we've seen that in a number of our properties where <hes> dependence of we've readjusted sizes of tenants you know as as they've evolved their model as as melissa said retailers really have to change and adapt captain imparted at is making the stores as efficient as possible which in some cases is reducing inventory so with the incredibly strong <hes> <hes> traffic levels and the optimistic <hes> sentiment about sales. What is your sense. Is that going to be sustainable for. The rest of the year is the the holiday shopping season going to shape up to be as strong as the years been so far i we believe so and melissa can fill in a little bit <hes> after my comment but <hes> we believe so that's that's what the managers of the stores in in our survey are telling us that they see a strong continuation through the end of the year holiday sales are often subject to things that that <hes> happened happened very close to the holidays so you never know with <hes> you're going to be something that may affect <hes> consumer confidence toward the end <hes> also also whether to a certain degree impact holiday sales you know we retailers want the season to change at the right time that people are out there shopping for clothes and other things thanks so forth <hes> so <hes> but from our survey and from what we see and what we've seen over the last couple of years and sort of slow steady growth and then unreal real positive step forward here in our survey we we expect a good good holiday and melissa anything you're seeing in the survey results that <hes> you're going to be keeping an eye on we eighty two point two percent of our survey participants that indicated that they expect their sales to continue at the same pace or improve which is a great percentage all right melissa right and matthew harding from eleven management corp. Thanks for joining us on the podcast. Thanks very much for having us. Thank you. We'll be back in a minute shalom. This is rabbi richard address join us for our podcast series from jewish sacred aging <unk> entitled seekers of meeting will explore some of the issues and events that impact ourselves our families and our jewish world at large in light of the current revolution in eiji the secrets of meaning podcast airs every friday morning at eight a._m. At jewish sacred aging dot com own today. You can't wait for the media to cover your company. You have to be the media. Take advantage of the power of audio joe and video. It's the best way to showcase your expertise to prospective customers. Let the luebeck in media companies handle the technical side. We're award winning audio and video producers. We can help you produce podcasts and video programs remotely or in our fully equipped studio in cherry hill visit being the media dot com for more. You're listening to the cr newshour. I'm steve lubeck in building community support overcoming opposition and getting approval for real estate developments is challenging time consuming and if you don't do it the right way way it can be costly. Katie coach is the author of the book. Yes vote the public hearing plan for developers. She's the president of p._r. Projects katie helps. It's real estate. Developers get approval at public hearings as they work through the entitlement process. She's obtained. Yes votes for her clients at dozens of city council planning commission and regional and state agency public hearings. She's going to be presenting a pre conference workshop at this year's crew network conference in orlando florida called called. Get approval for your development project. Even if it's been called hopeless that'll be on september. Twenty fifth in orlando will post a link in the show notes for the podcast uncast katie. Thanks for joining us on the news hour so <hes> your book is about helping developers get through the public public hearing process. What made you decide to write it and what are the key takeaways for developers about getting ready for public airings well. It's interesting because i had a long career in crisis communications in general public relations and then i was living and working in an area that a had a lot of development during on and people started coming to me asking me what i would do to help it ready for their public hearings and get in through through the process and california along with many other states as very arduous entitlement process <hes> along with new york and <music> cheeses eight florida era mini station u._s. That have a difficult time if developers and difficult moments so over years i by the process that that works and masonite experience most yar pros. They're all talented skilled strategic not jack but they don't really know the past the public hearing approval and the entitlement arena is a unique niche and very consultants actually have a track record of success incidence rate set needed to get their clients through public hearings and really they don't know how to make any successful results results get repeatable so <hes> it's interesting because the developers think that have a great power point dak or an incredibly impressive multimedia presentation got those elements will save the public hearing but the problem is. They're not really giving the decision makers wet. They truly truly needs. What is that well. It's interesting because what the decision makers will tell. Uh-huh developers reasons for nile are the project needs more study densities. Don't make sense on the site or it's not a right time for the project. Jets are these are all vote is obviously the developer has fees for expert opinions of all kinds wild negative declaration stating the i._r._a. We are asian unit while environmental study is needed with details in order findings and blah blah blah and yet the council says here's more steady aren't as far as it's concerned of course any developer from salt is not going to i project. It's not appropriate or the site <hes> and you they always make sure the design in parton the other cities require and all of those things that are really important rations or decision vision and of course as far as the right time or the project that one is truly a head scratcher because usually the market seems to be riper insult and develop responders are amenable and after some convincing they given money properties available citizens and sales taxes. Perhaps everyday to this project urgent insistence on the residents go out of town avail themselves of shops and restaurants elsewhere and it's not the right time for this project than when we were and the council you've answered that question so <hes> may just say it's not the right time because they don't want to approval and furthermore not matter if you have a history of successfully velten projects just like when you're proposing it doesn't matter that your project has merit eric and provide so many needs and it doesn't matter city staff specialistic readers earning impacts are arraignment and it certainly doesn't doesn't matter <hes> you have made the decision to invest locally rate there rather than take your money to another city so matter it turns doubt is that vision neighbors need only to be in theory and this is all based on the neuroscience science call from mcgurk facts and your listeners can find rate video on youtube <hes> it it shows always at our brains what we see over what we hear and that's a really really important consideration when you're republic here so how does that play into what you present to a public hearing <hes> obviously it's going to be something visual absolutely and it cannot just be your powerpoint. You're you're great. Dak your multimedia presentation all of your <hes> expert burke that you have lined up sitting there in the front row with you. Were going to get up and talk about the traffic studies in parking studies and all of those things and and mark intersections they've developed all of that stuff is great and it has to be there but what you really need are people in the hall support your project or willing to get off and say that they supported own person so i assume that this means there's some some groundwork that has to be done before you get to the actual public hearing and the groundwork involve enlisting partners in the community absolutely and that's what developed a process for you know over the years <hes> lining up supporters is a very very important art of a process. One of my clients actually went to city council on the recommendation of a city manager just said no fly under the radar. It's integrate council is fully on board word and he shows up for the city council meeting a nearer about thirty five naysayers audience and they each get up and turn and make your little public statement and for developer had no been on his zyppah to counter these arguments now even though he came in with a warm city council and full expectation that he would have five of the seven votes needed <hes> five vote he needed those five to sway the whole seven eight months old <hes> he didn't get it even though he he pretty much <hes> nudity how those votes before he ranks in so unfortunately this what's really really important and very into industrial project <hes> three hundred thousand dollars three hundred hundred sorry three hundred million dollars on the line you know sort of at the expense of one hundred thousand dollars on community outreach across the ice why i counsel my clients and getting really prepared for his public hearing when that happened he asked around and found me rewards together actually for nine nine and a half years i got him through twelve different public hearings and got him every single permit one after another after and <hes>. It's the process that is develops. Let's that i use with his projects and i helped his entire element team yet. Ready for the public hearings lineup supporters or <hes>. It's really about becoming partners with those in the community and city council members will race into how do you get over the objections that people have to typical kinds of developments like an industrial building in their neighborhood or some kind of a a a plan to manufacturing plant how do you how do you get them to be more comfortable with those things. Can you so there are a couple of ways to answer. This and there are with most question. The first one is that of course you want to communicate with the public in with your immediate community and one of the ways that i do that especially with a controversial project is to basically over communicate had a really interesting project that involves an ol- term charm area it had a lot of antique shops and restaurants and is a circle a traffic circle and estrin area and <hes> infrastructure project had to go in there and they had no choice eaton's. It was a safety issue <hes> but the soap owners were oh really really against it and of course the rumor mill began immediately so arm. I decided that the only way to really counter this was by tom barton the immediate unity with way too much information so we set up a production of posters that would go in every shop window. We gave out postcards. Postcards and flyers had a newsletter on a weekly basis. We passed out every shop owner and manager. <hes> and we have public meetings. We talked about about it. <hes> openly at the city council members out actually brought it up himself on at our request because they wanted to get input from the public public leading up to this public hearing that would make a decision and decision was a budgeting issue at the council they it was actually a city project so oh he did not have to get approval from the public that they did have to budget the construction projects. Eventually the immunity had heard so so much about this project. They didn't wanna talk about it. Any and it went off without a hitch. Had some complaints air became sort of like brain departments through the months that worked on this project but i had a personal relationship with each one of those shop owners restaurant owners and managers and they knew who to call aw there was an issue my personal number and so that over communication will insist in a controversial project like like that but there's another way to look at this as well. If you've got a project where for instance there might be a feeling that <hes> here's a social social justice issue in. I used the term social justice in quote because usually it's nothing it does not produce any justice at all for anybody nobody when people and that that term around usually a perception of the haves versus the have not and often the project estranged by opponents opponents somehow developer who <hes> another developer one is the parcel that he had one in a fitting harm test and he sort of spread misinformation about the project that might might develop recurrent with bill as sort of sour great scenario and he certainly pose the project at developer was building as sort of only for the rich buttons at all true <hes> when you have that kind of scenario and you cannot cannot overcome it with over communication oftentimes. He just needs to go outside the immediate neighborhood find supporters for the project and it doesn't behoove developer to try to the opponent. Yes they should be open to discussion. Yes they should sit down down and have open talks with moments by a will never convince <hes> a die hard opponents in fact in <hes> twenty years of doing this mutation game with opponents and supporters developers decision-makers. I've only ever convince vince one opponent that he was on the wrong side and as it turned out really was on the wrong side he settled misinformation was actually a business leader her. When i sat down with a fact within he understood the issues generally speaking i sort of pouched the opponent of quintessential intial stereotype. I've means that stereotype melvyn in my book sorry to any real life melvin. This is not about you but now i'm in sort of has a eh. I prototype. He is generally the kind of person who's really averse to change and he's got his awards turnaround and hide and not let anyone else now. Let me flip it around and ask you about <hes>. Another kind of challenge in that is the the developer who's people can't seem to look at the project the objections to the project in another way i many years ago when i was working for the railroad we had a project where we're going to build a rail yard across a busy highway from a residential development and it was a it was already a busy highway but the folks who were inside the railroad promoting the project were hell bent on having the truck tuck access for the project on that busy highway and it it took an enormous amount of effort to get them to understand that the objections of the residents were solely based on where the entrance was and if they redesigned the project and put the entrance on the backside with no entrance from the busy highway they had objection to the project which makes complete sense from the standpoint of a community right right if there's additional access to website and it makes no difference to the developer on which side the access is on and it makes a big difference community obviously they should listen to that and in fact i always tell my oliver grant that he opponents opinions will not be changed and they can often very much benefit benefit your project for the greater good of nudity so what are the things that <hes> you're advising clients. Today were in a hyper <hes> active regulated environment in most areas. You mentioned that <hes> many states have <hes> intense regulatory and permitting processes is what's the best advice you give people when they're first starting out to think about developing a project obviously they have to make sure that all of those things i mentioned before that's the right site the right time the right then to the knockout going to cause harm to the local community. I always <hes> do do the due-diligence with my clients <hes> on larger project five a couple of weeks doing investigations behind the scenes and and you know google researches on every news he's ever done on the project developer in south and make sure that it's the kind of project they want us to <hes> but ultimately i think the developers really need to become community partners and i find that they usually aren't telling their stories in the most effective way to achieve their goal. They're often worrying about the wrong things. He might be concentrating communication ever completely the wrong audience entirely the wrong people yeah and they're not utilizing the power of thirty third party messenger service advantage so you're telling rather than showing and they're also not demonstrating mistreating to the decision makers that they have support of general public his needy don't even have the service and they need to get that in order to be credible and the also also needs to demonstrate that in the ways that will help the most <hes> they need to have a support of the people who matter to the decision makers and those of the you know in every every community there are about thirty or forty people who everything no matter the size of the community irre- thirty or forty movers and shakers every city town village and dan ultimately. They're thinking like developers instead of like the elected officials. They need to appeal to in order to get the votes. Katie coach is the author of the book. Look yes vote. The public. Hearing plan for developers katie's the president of p._r. Projects she'll be at this year's crew network conference in orlando florida presenting a pre conference workshop on public hearings and getting approval for development projects. That'll be in orlando florida september twenty fifth. You can get a free digital copy copy of her book at yes. Vote plan dot com katie. Thanks for joining us on the c. R. e. news our great talking to you and that'll wrap things up for this edition one of the c. r. e. news hour you can send your comments suggestions story ideas to steve at st broadcast news dot com or we can leave an audio comment for us using the voicemail icon on the homepage at st broadcast news dot com and we tape this program in studio a at st broadcast the news in cherry hill new jersey join us again for the next episode of the cr renews our next friday at eight a._m. Eastern time at st broadcast news dot dot com or wherever you get your podcasts. This is steve lou beckon. We'll see you out there on the net. Take good care <music>.

developer philadelphia new york eric rabkin matthew harding cherry hill california Lauren gilchrist steve lubeck senior vice president and dire Katie coats united states melissa seabright
CRE News Hour 6/7/2019

Commercial Real Estate News Hour

59:29 min | 2 years ago

CRE News Hour 6/7/2019

"From the business desk at st broadcast news this is the c. arena news hour. I'm steve lubeck. It's friday june seventh two thousand nineteen here some of the stories. We'll be looking at in this edition of the the sierra news hour. We'll have a conversation with lauro. Veroni jones lang lasalle director of investor research about investor sentiment for the second half of twenty nineteen. We'll talk with developers and attendant at the largest commercial office building going up in chicago in thirty years one ten north wacker drive being built right right on the chicago river and the developer of workplace housing for teachers in new jersey is taking his concept nationwide. We'll be back with the top news stories right after these messages <music> turn earn your podcasting passion into profits the book the business of podcasting describes the business side of podcasting including how to become a professional national podcast. You'll learn about position your clients expertise who podcasting to plus the best business models how to find clients and much more visit the the business of podcasting dot com oh today you can't wait for the media to cover your company buzney. You have to be the media. Take advantage of the power of audio and video. It's the best way to showcase your expertise to prospective customers. Let the lupatkin you bet can media companies handled the technical side. We're award winning audio and video producers. We can help you produce podcasts and video programs remotely or in our fully fully equipped studio in cherry hill visit being the media dot com for more information well. This is the fourth week of our c._r._m. Newshour programs and we appreciate your support. If you you have any interest in sponsoring these programs you can write to us and get information on sponsorship and other opportunities to support the program. If you have story ideas as you can send them to steve at st broadcast news dot com you can also leave us your comments in audio form by clicking on the voice mail icon right on the homepage of our website right. We look forward every week to keeping you informed about things going on in the commercial real estate markets. Thanks for joining us as we do. Every week we start with a roundup of news and headlines from the c. r. e. market space the real estate developers and community leaders were honored wednesday night for their efforts to bring six unique and innovative development projects to completion state broadcast news was at the newark museum as nonprofit new jersey future gave out. It's smart growth awards for the project which included ironside newark the redevelopment of an abandoned printing warehouse in newark into a twenty first century office in retail destination the nation with direct connections to transit open space and nearby attractions peter reinhart the director of the kisluk real estate institute at monmouth university is chairman of the new jersey future board of trustees. I would say it's growth that is in the right place and at the right density that incorporates incorporates <hes> all the things that we need affordable housing good quality open space <hes> green infrastructure environmentally sensitive but at the same time fits the needs for the community and the and the market other projects recognized included redevelopment of historic art deco office towers in newark and passaic a twenty twenty two mile walking trail between lawrence township and hopewell a youth center in plainfield mercer county community college's reactivation of long dormant buildings in in downtown trenton and hoboken's plan for smart growth wendy kelman new chairwoman and chief executive officer of the hugo new corporation received the group's carry kari edwards leadership award for her firms work redeveloping carney point a former industrial site into office and retail facilities. We'll have a complete wrap up of the in new jersey future smart growth awards presentation dinner in next week's c._r._a. News our podcast for now you can check out the winners at nj future dot dot r._r. Partner of miramar enterprises unveiled the second phase of modernisation plans for the historic wanamaker office building at one hundred ten square east and philadelphia talk this week. The wanamaker is a one point four million square foot office and retail property next to city hall in center city philadelphia. Mayor jim kenney welcomed participants to the celebration in the updated atrium on the ninth floor of the building outside the legendary crystal tea room one of the ways we can ensure that are stark sites remain in good condition is is by repurposing them for the needs of the community. That's exactly what rubinstein partners an m._r. Enterprises did with the prestigious wanamaker office building the sprawling space now as newly renovated floors office space and even a fitness center that means more people can utilize the building for years to come phase one which focuses on modernizing the wanamaker office buildings building's main lobby to improve its aesthetic appeal and pedestrian flow and create a more inviting entry experience was completed in april. We'll have a complete report on the redevelopment. In next week's podcast new jersey governor phil murphy red bank mayor pasqual de mena project partners and members of local community joined with executives from dan holz properties for ribbon cutting for dentists new headquarters in downtown red bank. That's in monmouth county new jersey governor murphy who lives in nearby naveh i think part of middletown township maiden appearance at the reception to praise dan halts for its investment in the economically challenged west side of red bank justin. Oh you've chosen rent bank. Is your home joe. Zindler the west side of a red bay on this love and back on this part of town. It's thea by the way not just the headquarters a rail which is which is sitting on an opportunity zone. We have one hundred sixty nine of them in the state so you jersey ours the first state to get them in new jersey. The new offices adjacent adjacent to dan holds properties the rail at red bank rail station a mixed use project. That's currently under construction that project will bring fifty-seven luxury residential angel units and more than six thousand square feet of retail space to downtown red bank. The rail at red bank station project and then halts properties new office are we're speaking to the firms renewed commitment to real estate investment in emerging markets and the large role the company will play in red banks continued growth in the coming years in connection action with the office opening dentists rebranded itself slightly. It was formerly known as denholm associates now. It's done holtz properties. The company says its new twelve thousand mm square foot office and corporate identity signals the next evolution for the firm. It's been a privately held fully integrated commercial real estate development and investment company company for nearly seventy years stephen. Dan halts the company's c._e._o. Spoke about his collaboration with red bank mayor squalid under mazing place a great place and difficult place the mayor's fantastic listener a great arbitrator of disputes and as you will say i just trying to do the right thing. I think we all try to do the right thing. Take one step at a time you things happen and mayor men who was anxious to remind anhalt set that is companies new office and new development project have put significant properties back on the red bank tax rolls walk around and people don't understand adult and some funds yuppie trade and when i look around this whole block at one the time when i was first on the council generated approximately four thousand dollars in acts revenue worthy it doesn't support even you want to use your properties and your public properties as a result of this will develop. This is a point two thousand dollars in tax revenue will the now. Let's take a quick look at some headlines. Mac cali realty corporation is urging stockholders to vote for all of the company's eleven director nominees as no surprise there. The company's annual meeting of stockholders is scheduled for june twelfth company says dissident investor bo streets actions made clear that it's attempting to who profit at the expense of all other kelly shareholders now we've asked mac kelly and bow street to appear on the news hour several times both have declined the discovery goverry labs a platform company formed by m._l._p. Ventures is going to redevelop collapses smithkline's one million square foot campus in upper merion pennsylvania outside outside philadelphia on what's called the mainline discovery labs will also redevelop the six hundred forty thousand square foot innovation at renaissance campus in nearby king of prussia discovery discovery calls it the largest co working ecosystem for healthcare life sciences and technology enabled companies in the country. We're going to get a tour and will report on the facility in in greater detail in a future episode of the sierra newshour j. l. L. completed the sale of the former mcdonalds. Global headquarters campus in oak brook illinois john paul de jewelry is buying it. The acre site includes the mcdonald's former campus office building hamburger university training facility and the hyatt branded and managed hotel l. The hyatt lodge just works fast growing h._r. Technology company is committing to a long term headquarters lease at fifty five water street in downtown manhattan. It's a building yeah. I know well. I worked there for standard and poor's until about two thousand in a transaction arranged by c._b._r._e. Just works as taking two hundred seventy thousand square feet on the twenty seventh floor at the three point eight million square foot office complex the companies relocating and more than doubling its office space. It'll move into fifty five water street in the second quarter of of twenty twenty and new coal to the netherlands based specialist in automated cold storage announced the opening of a ninety million dollar one hundred eighty thousand square foot facility the way up in burley idaho. It's one of the largest cold storage warehouses in the nation. It'll employ one hundred people new colds facility in burley which took twenty five thousand tons of steel to construct is using advanced conveyance and stacking technology and they're going to be loading and storing frozen food pallets for french fry maker mccain foods which recently underwent a two hundred million dollar expansion in burley mccain foods is new colds largest idaho customer. You're listening to the c. R. e. news hour from st broadcast news. Dot com twenty nineteen started as as many people expected with a somewhat slowed pace of transactions and investors a little bit wary of market volatility jones. Lang lasalle is come out with its. It's first quarter u._s. Investment outlook and it says transaction volumes decreased about two percent from the prior quarter to about ninety eight billion dollars as with every asset class showing declines except for multifamily we spoke with lauro ferone jails director of investor research about about the trends that he's seeing in the markets in the various sectors and some of the advice that he's giving to clients about positioning themselves for investments points for the rest of the year. Give me your sense of <hes> where investor sentiment is going and where you think that leads them to make decisions about to what they invest it well. How would characterize the investment landscape currently in the u._s. and investor sentiment is really things are moving in line with expectations. The transactions market is is performing. You know kind of congruent with what i think. Most market participants would have you know are sort of a expecting for for the current times oh last year transactions activity exceeded what we were initially initially forecasting and we saw more large-scale ends at the level transactions <hes> come to the forefront which overall like seventy going into two thousand nineteen and you know we have been saying all along. We expect to see about ten percents decrease in overall u._s. Trend actions <hes> volumes and as expected but first quarter of this year as the press release mentioned saw a bit of a decline <hes> you know in all of the sectors with the exception of the multifamily sector and again. That's one where you know. We've been thinking all along. It's going to be the the sector that will hold up the best in two thousand nineteen and also be the one that sees the most favorable year-over-year liquidity trap. What is it about multifamily. That's making it stand out from the others. The others earl showing these first quarter volume declines for multifamily. It's what goes back to the big theme of defensive strategies jeez right so investors wanna place capital where they're seeing the strongest amount of wrench growth than if you look at the multifamily sector and also the the industrial sector both know together they've been seeing about twice the pace of growth in and run at the national level as we're seeing seeing in the office sectors and that's something that investors you know. Investors are taking note of and really what is underpinning the multifamily league sector. It's not just you know that the sector is doing well in the current market environment that in this currently relatively robust economy but some of the changes that we're seeing impacting that sector and leading to greater investor sentiment are really also kind of a structural driver driver so not just cyclical one but also structural drivers industrial had been going very strongly for a very long time and rents. It's particularly in places like the northeast were <hes> rising to levels that hadn't been seen before <hes>. Where's that going and why was the transaction volume al-yaum in decline in in the first quarter industrial sector very much moved in line with expectations. It does appear on a european basis. This is to be a decline but because of the absence of some of these larger <hes> you know portfolio transactions and or entity level transactions so as it relates to the industrial space on the reason for a bit less activity throughout the year as a whole is because these large-scale deal there. There's not as much liquidity for those at the moment you know you're generally have only a handful of buyers they can take down a portfolio of they <hes> a billion dollars or more you know in kind of one on swoop and and those buyers have been particularly active last year also in the years before a lot of them are now kind of focusing on on acid managing their purchases as opposed to you know buying even more so they we are at the moment identifying which assets within those portfolios. Are you know perhaps non core and spinning off some smaller portfolios portfolios that are more regionally based. That's really where we're seeing the dutch of investor interest at the moment in the industrial sector. It's for these kind of regionally on line. You you know some smaller or folios onto not as much anymore with the mega or folios now. You're also seeing a flight to quality in the office. Sector tur- people are more interested. I guess in the class a. and then the trophy class a. properties what's behind that kind of a move trend we've been measuring for you know a couple of quarters now and it really just intensified even more in the first quarter of this year and then you know generally how i would characterize that it's a bit more of a risk averse behaviour right throughout two thousand sixteen and and seventeen office investors were casting a wider net. They were looking for more yield. They were going farther afield into secondary markets and this this coin with where investors feel you know we are in the cycle. They're really doubling down on assets that they can feel you know that they feel best weather weather on any softening the overall economy or softening and in the office market fundamentals so it's going into markets that are deemed to be more secure. It's an asset types within the office sector that are that are going to be the most liquid that i've proven throughout various economic onyx cycles over the past to be the most stable and the most liquid so as you look out over the entire investor market and the decisions that that investors are making how much of their decision making is being influenced by the tax cuts that were passed last year <hes> <hes> and how much of it's being influenced by the trade war that seems to have developed between the u._s. and some of our trading partners is any of that factor into the investor mr decision process well those two factors that you mentioned so the trade <hes> the trade centers in a tax cut. I mean those of course have avenue impact on the economic performance of the u._s. As a whole in terms of the the growth of g._d._p. Growth in employment and and kind of the you know the nets in or out migration of americans throughout different cities in the country so really where where we're seeing the impact is on the economic run as a whole bad of course then does trae translate into <hes> leasing activity and and property <hes> performance which which then does influence investor behavior but it's a little bit less of a direct linkage so we're we're generally not seeing investors saying they're altering their investment strategy. Today you know directly because of the trade tensions they would more so you know down the road be. I'm the product of any shift in the economic for duxbury as a whole and again. Even those two factors are are one that you know. We've been talking about for for a good bit of high right. Now you know even throughout two thousand in eighteen when transactions activity increase <hes> by a by a healthy clip again if something that everyone today kind of already expects and is contending ebbing with and it's not really a new course that has no catching from guard as and when you are providing your advice and counsel to j. a._l._l. Clients would are you telling them or the best things they can do to position themselves for the rest of this year it very important at the moment to think about your eventual unsual exit strategy when you trade out of the asset three to five years from now so we wanna think about you know what we want to correct african one rule the economic environment look like at that point <hes> what will kind of the business context look like for the the the industries that relate to the major tenant in the building. <hes> you know what type of international buyer interest. I mike you see three to five years from now. When you're trading out of the asset you know how deep that pool <hes> liquidity and of course those are all the factors that <hes> you know the impact <hes> kind of the pricing today and what someone is willing to pay a and again because it's more difficult today to have in the line of sight into what your exit will look like then it was perhaps earlier in the cycle so two or three years ago and that's the reason why live we are seeing a bit more though like typically from investors at the moment and expect to see as the year progresses lauro. Caroni is the director of investor research for jones lang lasalle in chicago. Laura thanks very much for joining us on the podcast today and the tallest skyscraper burn chicago in the past thirty years is under construction. It's a fifty five story class a plus building now under construction <unk> at one ten north wacker drive in downtown chicago. It's being built by the howard hughes corporation and riverside investment and development element and they've just signed the international law firm perkins cohee to a multi year lease for one hundred thousand square feet of office space in the building. It's the third lease announcement within two months for the building and we thought it might be worth talking to the developers and to the tenant about the decision making process just to get into one ten north wacker drive joining us to talk about the transaction are richard civic the chicago office managing partner for perkins cohee paul lane the central region president for the howard hughes corporation to mccaffrey the senior vice president of development for howard hughes. We're also joined by drew neiman executive vice president of riverside investment and development so we're talking about a multi year lease <hes> and it's a fairly big piece of space one hundred thousand square feet at one hundred ten north wacker drive <hes>. I'd guess i'd like to start with rick if i could <hes> you've been in the office or you've been in the market. I should say according to the press release nearly twenty years <hes> you've obviously grown the office. What made you decide to commit to this much space for this. Many years collapse of major office decisions are never easy. <hes> we were convinced that making the move to one ten north wacker <hes> what have a very positive impact on for office <hes> but for the firm as well as for the clients we represent <hes> we are confident wouldn't that <hes> this new space will allow us to better meet our short-term as well as our long-term growth needs in the chicago market. How far are are you moving. <hes> where is your current office. And how far away is it from the one north wacker. Our current office is located at once thirty one <hes> south dearborn borne which is roughly five or six blocks away from <hes> our new location in two thousand twenty one what kind of reaction you're getting from clients. Have you notified clients. Obviously the its its public <hes> news now. Have you notified the more today saying direction by our clients has been very a positive the reaction of our chicago office. <hes> has been <hes> also very positive and we're very excited to be moving to the new location location now. Let me turn to the howard hughes representatives that paul lane. Yes sir. Thank you hi paul. Thanks for being with us yeah and jim mccaffrey. Yes this great. Tell me a little bit about the building. <hes> it's a relatively new or it's new under construction <hes> and is going to be the tallest commercial building and in chicago built in the last thirty years absolutely first off. I just like to say that we're so proud to have our new customer <hes> with perkins <hes> you know understanding about their firm they had been <hes> name for seventeen years among fortune one hundred best companies to work for which is a phenomenally oppressive achievement. We're very pleased to have them as our newest customer <hes> at at one ten <hes> you know the building is outstanding quality. We think is absolutely in the best <hes> as you could guess we would think but the best location shen of <hes> any new building <hes> site in the city <hes> and we're we're really delivering something think very special. <hes> with one ten or wacker unbeatable location the architecture is stunning best in class amenities for all of our customers <hes> with great white and air <hes> on all sides of the building every floor longest substantial open park space along the river for our visitors and customers to enjoy <hes> in addition we're offering market leaning technology and efficient floor plates with fourteen corner offices <hes> per floor so all these things combine to make a <hes> great firms like perkins <hes> take notice and and we'd love the fact that they're going to join us at our one ten adventure now this <hes> this site is right on the river. What was there before war. And what kind of challenges did that present for you in getting the project off the ground jam. Do you wanna take that one sure there was an old existing five story building on the site and it occupied the entire site <hes> virtually from edge to edge so <hes> you know it was a demolition project. There was a little bit of discussion about the building that was in the place but but really there was more more outcry to take it down. Then there was to contemplate any kind of preservation <hes> we've dramatically increased the open open park space on the site and you know we're putting a first class <hes> building in a high rise befitting the hottest upmarket in chicago in the heart of the city whereas <hes> what was previously was a pretty significant underutilization of what many considered to be the best site site in the city now <hes> you've obviously <hes> the market has spoken because the building is sixty or seventy percent leased. I guess at this point so <hes> that says there was definitely demand for it. But what was it at the time that you decided to do this. You didn't have those leases in hand. What what was it about the chicago market the economy your outlook for the future that led you to conclude you could build this and then they would come <hes>. This is paul again <hes> because of the site where do g._p. Headquarters were and we felt that it was such an outstanding view the light and air air wacker being as wide as it is river <hes> being wide and bring into phenomenal reviews and then we were able to uh-huh partner with <hes> riverside with john o'donnell and then bring on drew neiman who's on the call and his his team <hes> and john donald team with the police graco in the rest of the team. We just felt it was <hes> the stars ars had line to have a a world class development team. <hes> it's the biggest building that howard hughes building you know howard hughes <hes> publicly traded <hes> almost six billion dollar market cap than we have properties from a wide to manhattan kind of everything in between wayne <hes> and we just felt that the momentum in the chicago market about two years ago really he picked up it seemed really dynamic and there it appeared that there would be a window for a major <hes> triple a statement quality the our <hes> for the type of tenants that <hes> like perkins and others you know bank of america that <hes> <hes> it would align with the timing of when they're lisa's expired and <hes> we were able to get the building started we had complete complete support from our board of directors and our senior leadership team and <hes> we were able to act extremely greenlee quickly. Get this out of the ground. It's i can just get on with paul. He's he's hit all the topics. This is drew <hes> kind of i've been in the market thirty thirty four years and <hes> we had to go back almost thirty five years to find the next best site that would be equivalent excellent this site at one time and that is literally just down the street which was the mercantile exchange at ten thirty south weapon which had the wacker aca joy to address which is the number one. This is address in chicago <hes> and then the other side was the river still he's got an instructive us his <hes> driver's boulevard and then <hes> still get tunnel site. We haven't had that kind of site and then put that will and we have to block and look at it from the metro stations <hes> in the west. It's you know it's kinda. One of those i hate to say i'm not doing the job. It's almost a can't miss strikes and it's it's proven i i <hes> you know in so so. We've you know they dialed up. <hes> jim gets and probably one of the best architects check in the country but cargo is done several very successful other office buildings on wacker drive so we brought jammed into the mix along with howard hughes and riverside and <hes> just the combination with the architecture the pure location of being very close to the trains every black guy down the last of long which is also the most important is tiny and we're delivering this building steve <hes> <hes> order next year actually october twenty twenty doors will open bank of america but the remainder of eh tenants in the building along with perkins and others <hes> with the you know dirtying in twenty twenty one no other new development will really that'd be opening still kind of a first or second quarter twenty twenty two always kinda got free run you know with not as much competition that that also helps do in terms of <hes> being successful and being received <hes> as we have been perspective tenets in chicago. This is paul lane again with our jus. I would be remiss in not saying we still have rate office office space to lease so this is a shameless plug but <hes> you know call early and often and we we'd love to <hes> get you into our program spoken like a man who has property the lease now. I have to ask the question <hes> in so many of the newer office buildings <hes> there are all always seem to be carving out space for one of the co working companies. Do you have any co working space in the building. We we actually do but when took a different tack <hes> we took <hes> probably the most well <hes> one which is regis <hes>. That's an and i say well they've been around around one thirty years or so so they'd seen the highs and lows in surviving done an excellent job but they deliver a lot of different products addicts within their own working area. <hes> and we chose was called <hes>. It's the highest end of delivery <hes>. It's more like a high end club. It's called number eighteen. <hes> you can google it. You'll be shocked to see it in stockholm. Sweden <hes> just open wine <hes> <hes> in the inbox cat <hes> it is a <hes>. It's co working. Meanwhile with constantine <hes> won't be through tubing's kind of more of a club and then to co working like you might find it like a we were so it's a it's a difference either in its appropriate or wacker drive fifty five story glass laugh a little more. I n wait. What's interesting is we've attract good. <hes> the fourth man is all mentioned fourteen corner officed tooth really well for the affirms financial firms consulting firms so our tenant roster is very very blue chip and <hes> and so all righty <hes> as a result of the success of the ducal have <hes>. I'm actually in space. <hes> in building for growth would see a lot of seventy inquiries in we're already goals goals in plastic for molly's users being hostile last <hes> because we know where that's going to be on the most in in the building four and smaller users that we like i in target amazingly <hes> sometimes we'll still up early because they want to get the right orientational on the floor. You know if they think of us something to work with the east or the west. Whatever <hes> they're pretty good where when the river <hes> but <hes> it's it's really been a serious that <hes> at least <hes> this'll be my fifty story tower and i would say that the <hes> <hes> the rapid pace of easy <hes> men. I'm here at the at the top of anything move. I've worked on. It's pretty exciting. Drew neiman is executive vice president of riverside investment and development also joining us on the call homeward. Jim mccaffrey senior vice president of development for the howard hughes corporation and his president central region president paul lane from howard hughes. We also heard from richard subject the chicago office managing partner for perkins co the law firm. That's taking a multi year hundred thousand square foot lease in and the brand new office tower being built by riverside and howard hughes one ten north wacker drive. You're listening to the c. r. e. news news hour. I'm steve <music> <music> <music> <music> <music> <music> in newark new jersey a development element. That's gotten a lot of positive attention is the teachers village a six building development in downtown newark. It contains two hundred three moderately priced. Apartments and nearly seventy percent of them are occupied by teachers. It also includes three schools with over a thousand students and eighteen in retail outlets. The development was funded by one hundred and fifty million dollar public private partnership with investments from goldman sachs urban an investment group and prudential financial and it's become a model for teacher and workforce housing developments in other cities run bait is the developer oliver who came up with the concept and rolled out the teachers village and he's expanding the concept to other cities throughout the northeast and midwest a couple of months ago. He announced an opportunity zone fund based on the teachers village concept. It's kicking off with a forty million dollar investment from david and leila leila center. That'll leverage over one hundred fifty million dollars of additional equity from high net worth and institutional investors. That's the purpose of opportunities zone. Tax incentives is to get high net worth and institutional investors to build in economically disadvantaged zones all across the country entry. We decided it would be worth catching up with ron to find out how this project in how the fund was going to develop over the next several months. What i wanted to do is just talk about this thing that you've got <hes> announced about <hes> moving the teachers village concept to the opportunities -tunities zone <hes> world yeah interestingly enough. <hes> teachers village was already rolling out in these distress census tracts because we were tracking other programs that follow the same census tracts right so we were already in opportunity zones. We've been building for over a decade in an opportunity down but they weren't called opportunities down still about a year ago right right when the federal legislation kicked in exactly so <hes> you had great success with the model in newark <hes> where are you going next and how do the opportunity zones make it easier easier better. Whatever <hes> you have the finished teachers village the first one in newark new jersey and a second one it opened in may in hartford connecticut and the third one is in chicago. The third one will be before the end of the year in chicago. <hes> and we have a site in miami and atlanta. We've identified for the next teachers villages and so <music>. I'm mean the the opportunities from our perspective do two things number one and probably the greatest short term mm impact we've had is it really <hes> really opened up the universe of investors that even talk to us about these types of projects right and so it's a much broader arena for us which is very exciting more for more people to talk about the you know the sort of complicated finance we need to do to accomplish these projects <hes> and and but more importantly it now provide provides rides inequities source that is generally on a i mean you know by definition has a longer term view at least ten years probably longer <hes> and that's really sort of very interesting for the types of projects we do because you know we are building in emerging urging markets and they do and we do have significant affordable workforce housing components and so it takes time to ramp up <hes> the economics economics of the project and so <hes> so i would say the the greatest benefit we see so far is that we have more investors to talk to and investors actor that are <hes> have long term <hes> horizon the whole concept it depends upon having some component of housing that's affordable notable or workforce housing and another component that would be at a market rate of a higher luxury kind of approaches that my understanding it correctly yeah. There's i mean you know you know. I don't know so we do build of high-quality so i think all of the residences we build our luxurious. We would say an dr you know specified to to sort of would you would envision as luke suri's market rate apartments <hes> so all of that is built to that standard parts but correct we generally have twenty percent affordable as what sort of traditionally known as affordable thirty percent workforce housing and all of that deed restricted and then fifty eighty percent market rate and so in that market rate piece <hes> you know you have you know opportunities <hes> four were you know economic development of the markets because we're generally a first mover <hes> so yeah <hes> and and and sort of fifty percent of the units indeed restricted although even in our market rate units we are <hes> targeting <hes> teachers in the <hes> we have units that are size and price to the upper end of the teacher salary curve and so we aim even only fifty fifty percent of the units of deed restricted we ain't to have at least seventy percent of our community be educators <hes> and then thirty percent be what we call lifelong learners ars or other professionals have to think that that kind of an approach ought to be welcomed with open arms in the communities that you're going into. We've found yes <hes>. We've found that you know a few things that communities understand the need for workforce housing <hes> <hes> the communities understand the tool that teachers villages beyond the housing. We have an educational component. That's not only the teachers but for the community as well and so oh they understand that with our educational components where you can have we will be offering credits towards an m._b._a. Masters in education masters in public policy all kinds of professional certification professional development programming. We've all kinds of remedial english math and reading for the community so we have value added programs for the teachers i live on site and the teachers in the municipality in general we've all kinds of entrepreneurial programs for educators <hes> and then really fun stuff like wine and gardening so really education is that not only is it housing but we have this educational component. That's really part of the lifestyle really part of the community benefit also oh so when we come into community getting audible housing workforce housing to getting this cool destination for with educational offering <hes> for all kinds of lifelong long learners and for the teachers and they understand ultimately that this is a tool to recruit and retain teachers to their neighborhood and so we generally being being received very openly an open arms in the communities recovery so now taking the concept into an an actual opportunity zone fund <hes> you got an initial forty million dollar investment <hes> there's other people looking into it. <hes> what reaction are you getting to the concept of a nosy fund for this purpose and where do you think it will go next so i think people are really honing joining in on the fact that this you know this is the type of project opportunity zones were designed to build so i think <hes> so i think that you know you know and sort of the social impact related sorta projects. I think as an initial look they're saying okay. These are the type of project object that the program is intended to build. Here's a developer who's been building in these communities <hes> and here's the developer with pipeline <hes> in these communities and so i think at the outset it sort of you know for them. It's sort of an interesting and we've gotten a lot of <hes> attention. Shen <hes> i think the other piece of this that's really interesting. Is that that we're finding. Is that <hes> we're point in the market work in the real estate market that people think that we may be approaching you know a top and interestingly enough. The investors are looking at this as sort of a counter cyclical play. You know it's really emerging market. <hes> it's real you know you got workforce and affordable title housing that you know teachers aren't going anywhere in a downturn right and their salaries is things stable <hes> and so. I think you know even and you just by virtue of where we are in the cycle. We're getting a lot more attention that we otherwise what up and i think there's opportunities programs. Just sort of introducing them to that concept tampa ron bait is the c._e._o. Of rb h group the developer of the highly regarded teachers village project in newark new jersey he starting teachers here's village opportunities zone fund and rolling out teachers village models in hartford connecticut and other cities throughout the country ron. Thanks for your time. The prophet sierra newshour from state broadcast news. We'll be back in a minute <music> sean. This is rabbi richard address join us for our podcast series from jewish sacred aging entitled entitled seekers of meeting will explore some of the issues and events that impact ourselves our families and our jewish world at large in light of the current revolution in eiji the seekers of meaning podcast airs every friday morning at eight a._m. At jewish sacred aging dot com <music> today. You can't wait for the media to cover your company. You have to be the media. Take advantage of the power of audio oh and video. It's the best way to showcase your expertise to perspective customers. Let the lubec in media companies handle the technical side. We're award winning audio audio and video producers. We can help you produce podcasts and video programs remotely or in our fully equipped studio in cherry hill visit being the media dot dot com for more information new york city's charter review commission recently came out with a series of proposals that have potentially dramatic effects exxon. How new york city handles zoning in development russ moskowitz is a partner at the law firm of stricken levion. He's an expert advisor to new york real estate developers investors and other entities about land use zoning and other matters. Tell us a little bit about how that got started and what does it mean for developers investors in <hes> in new york real estate near city council <hes> last year announced that they were going to do a wholesale look at a series of things <hes> that the new york city charter governs including financial governance in particular to the real estate community land use and zoning in new york city and what they are doing now now is in the middle of sort of a listening exercise where they created a commission made up of various leaders throughout the city though some from i'm the executive branch as well as from the legislative branch to determine what if any changes could be made to how land uses done in new york city if if there are any changes made it would be the most significant changes done since nineteen eighty nine when the whole <hes> charter commission in created after the <hes> the supreme court ruled that the board of estimate which was the governing body for new york city land use at the time was unconstitutional and what happened happened after nine hundred eighty nine was basically a lot of the powers got divvied up between the legislative branch and the executive branch so we're talking almost almost thirty years ago this would be the most significant changes since then <hes> if they were to be any significant changes made <hes> during this period of time so where we are now is there has been a series of proposals recommended by staff and now these proposals are being discussed publicly. There's been testimony. There's been <hes> experts given even by many people on the different <hes> fields that are impacted and now the commission is taking <hes> dish testimony throughout the city all the fiber <hes> and in particular talking <hes> in <hes> in each borough and holding hearings so that community in the and and citizens can come speak so what are some of the changes that they're looking at <hes> and how radical these changes is going to be well. Some of the changes <hes> well. It's it's still to be determined exactly clear what those changes will look like but it runs the spectrum. There are many people and i think this is somewhat symbolic of the of the mood of the city in terms of development right now but there are many <hes> and it's a small group but it's a very vocal group. They're they're advocating for no more whereas of right development so right now in new york city <hes> somewhat unique in that most a lot of other major cities don't really have as right development but as long as you're complying applying the underlying zoning and you are building to the barnum building code fire code safety code you can build a building there are many who are again minority but very vocal vocal or advocating that the city no longer allow for as the right development so that each project will be subject to scrutiny beyond just <hes> the department of buildings as but rather community input community involvement and perhaps even <hes> political <hes> <hes> involvement so that's one end of the spectrum one of the issues. That's come more recently that we've seen is the <hes> pushback on very very large m- multi mega million dollar <hes> luxury developments elements and <hes> they're <hes> not being <hes> subject to sufficient tax in the city to <hes> support <hes> services and there was a move to <hes> add some taxes on that is going to be part of this. That's that's not happening <hes> generally speaking through this <hes> commission commission but you're you're absolutely right steve. There is a general <hes> desire to limit the amount of tax benefits. Some of these mega luxury buildings are getting and in fact <hes> you're referring to in fact what's called the four twenty one a <hes> program and that program which i believe is created in the mid eighties has slowly. We slowly been watered down so to the extent now it is no longer available in certainly most of the central business districts. It's certainly is no longer available almost in manhattan certainly south of ninety sixth street and is really only available in in most of the outer boroughs but again only if there's any affordable housing housing component attached to it but the city has been doing recently is emphasizing that any kind of rezoning or any kind of increase in the residential component owning any project if someone were if our clients are seeking an increase through a rezoning or something along those lines that affordable housing is actually we <hes> not a <hes> <hes>. It's it's mandatory. It's actually call mandatory. Inclusionary housing is the program so similarly with the tax benefits. You must now begin the and to build affordable housing onsite as opposed to off site in order to obtain those benefits but these are all subject now as you know in albany there there is a there are nine bills that are currently being looked at by the state legislature all having to do with rent protection rent stabilization and the like so within the next next to two weeks or so before session ends. I think we'll find out exactly where those those laws will will stand. So what are the things that you're recommending to your your clients that they look at whether it's <hes> just keeping an eye on things were there are actual actions they can take to position themselves most effectively to deal with whatever might come out of these regulatory changes. We think best practice is to always have <hes> a project indeed is that's going to require any kind of community. <hes> city council input we think early <hes> early showing the project <hes> <hes> being strategic meeting with key community folks early on understanding <hes> every community has to file <hes> with the the city for budgetary reasons sort of their statement of needs. It's really important so what we do. Best practices is to read that statement and easy even before a project is as you know off of the off the drawing board to make sure we understand what is being looked at so for instance. We recently finished a rezoning in queens. We're one of the the statement the needs as as we identify was to <hes> school seats so we knew going in there was likely that part of the negotiation or part of the need from the community community was to be to create a school and in fact <hes> as part of our negotiations to secure all of approvals are client. <hes> is building coming to school with anna's facility <hes> for the neighborhood. Are there any other hints that you're getting of what other kinds of <hes> changes might be proposed stores. It's still a wait-and-see situation. It's still a bit of a wait and see the way. The process is set up now. The community is an advisory role in in this in this process and i think one of the again going to sort of both sides of the spectrum. I think one of the the goals for a lot of the community members is is to see if their if their role can be more binding rather than advisory so in other words even if a community board which is <hes> there are fifty nine community boards in new york city and they're appointed by the local council members and the borough president if they were to say no to project the project could still proceed within the process. It doesn't mean it's approved or disapproved. It just means you can continue to go. There's there's definitely been some rumblings about trying to secure more <hes> wait to the vote of the community board so therefore make it binding as opposed to just advisory <hes> i don't candy. I don't think that's going to change but certainly <hes> that is something that many many of the community and boards are looking to achieve and one of the one of the concerns that we in the industry would have with that. Is that the community boards vary in terms of <hes> sophistication sophistication in terms of resources and one of the one of the things. I think that could be improved. Support is giving more resources to community boards but you know community boards in more socioeconomic areas can't have much more sophisticated members and can be much more diligent and <hes> in in their negotiations or what they're asked for as opposed to areas where products are where perhaps they're not as sophisticated and therefore not necessarily are negotiating from sort of <hes> <hes> you know sort of an even playing field. Do you have a timeframe for when these changes might get introduced and then potentially when they might be enacted into law they will be the the the schedule is set up so that the proposes will come out in july and they will be on a referendum in november so they will do whatever they a are will happen this year and which <hes> you know which is even candy <hes> somewhat concerning depending on what these proposals look like like because it's an off election year and last year there were three <hes> recommendations for changes to the charter that were <hes> brought on by <hes> instituted by executive aided by the de blasio administration and all three past <hes> and of those who were voting last year in an election year so basically thirty percent of of those who voted voted for these charter proposals which means very few people ultimately decided these changes these are potentially much more significant can changes and in an election year that means even fewer people will be voting on it so <hes> well now come november <hes> exactly what it will mean and it will likely go into effect presumably there'll be a period of time <hes> but presumably will go into effect as of <hes> you know twenty twenty and in terms of the referendum it's and up and down vote on each of the proposals or all of them together strategically they will probably put it out as individuals because it may be a little harder than to <hes> <hes> to vote it all down so i think if i'm trying to push these through <hes> i'm probably doing them <hes> individually and so that people will have some choices but yes they could ultimately put it. Put it as as one slate but i think it's probably unlikely we'll do that. Rose moskowitz as a partner at the law firm strokes drew can levin. He joined us over skype from his office in new york city ross. Thanks very much for taking the time. Thanks so much for speaking and that'll wrap things up for this edition of the c._r._e. News hour you can send your comments suggestions and story ideas to steve at st broadcasts snooze dot com or you can leave an audio comment for us using the voicemail icon on the homepage at st broadcast news dot com. We're coming coming to you from studio a. At state road kiss news in cherry. Hill new jersey join us again for the next episode of the c. R. e. news our next friday at eight a._m. Eastern time at st broadcast news dot com or wherever you get your podcasts be sure to tell your friends and colleagues about our program and thanks as for listening. I'm steve and we'll see you out there on the net. Take good care.

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Episode #52, The Rep Life with Dennis Gentek, Jacuzzi/Sundance

The SpaRetailer Podcast

58:04 min | 4 months ago

Episode #52, The Rep Life with Dennis Gentek, Jacuzzi/Sundance

"The this is a spy tiller podcast where we talk retail business and offense related to the hudson industry. I'm your host. Megan kendrick owner spar retailer magazine. So today on the podcast. I have dennis skin tech. He's a regional sales manager for jacuzzi. Sundance he's been an industry for quite a while. So i imagine that many of you know him or at least know his face so seeing them at trade shows or see them around around the industry. You know how that goes so dennis. Thank you for coming on. It's my pleasure. Thank you for having me well before we get into your industry background. Do you mind giving me a little bit of your personal background of where you grew up where you went to school. You always been on the east coast with what's your story. I grew up in south jersey at a small beach. Town called north wildwood. It's at the southern tip of new jersey. Okay there's only a hundred and thirty people in my graduating class. It was lots of fun in the summertime because it was a tourist town. I had the bay of blocked my west and the beach two blocks to my right to the east And really enjoyed it immensely as an opportunity to grow up. There however was a small fishbowl. And i couldn't make to get out to the bigger city. Sure so when you graduated from high school. Did you get out to the big city. Yeah i i moved up towards philadelphia. I went to school at a school. Called glass bro state. At the time. It's now called growing university there. I i did it actually degree in small business management. Okay once i graduated. I stayed up that area. So i stayed in south jersey. Where cherry hill which is fifteen minutes to over the bridge philadelphia. So how did you end up. In the hatem industry selling copiers. That was my first experience into into sales in this industry. I've talked to and that's what they were doing was selling named copiers printers or something like that. It's so funny. What a great step into sales it actually is because it allows you to get from the need at a location where they probably use a copier now to giving them something that's enhancing their business capacity certainly a great stepping stone into sales and running a territory etc. In my best experience there was hey debt. Here's some brochures you should territory go out market. These things i saw. I don't have any training when he talking about. So i would go around and knock on doors and not know what i was talking about and then a week later. They bought me sales training for a week on all the things that you did wrong the week prior when you were out your territory so that was a strategy. That wasn't them. Just the like nonchalance about sending out there. They actually wanted as part of their learning process. After that. i did it part time. I had an uncle that was in the business and he was doing it part time and said that when you get off at five when he come on down we are open until eight and we're open on weekends and you can make some extra money so i started working at a retail store for six months selling rules and spas and after six months i loved it so much quit copier business in got rate into selling spas and pools full-time and loved it by the hours but not as challenging and competitively at least and running an outside territory leads. I was saying well. do these. People are just gonna come to me. And i'm going to sell them terrific. I don't have the goal hunt. I can just farm terrific. I had a combination of both. I could go out. Or i could also wait for them to come into the store either way so that background helped me and copier sales be more competitive but also to appreciate the retail side of. Yeah what year was that. Do you think that you started in team. Eighty eight nineteen eighty eight hundred eighty eight way back there thirty. That's over thirty years and the third. It's actually thirty two. I know. I looked like i started when i was eight. Hey you know we're all we're all hanging in there How did you end up. I mean we wanted to have a sales rep on the podcasts. For a long time but i mean you guys are because they're busy. Everyone knows that your heart set hard to nail down so so. I'm so glad that you're finally on. Because i think i find your job as one of the more fascinating in the industry i feel like you have a really unique view of what's actually happening on a ground level manufacturer level and. It's also probably the job that i envy the least. It's the one job that i think we're unreasonable. I'm fascinated by is that i would personally probably hate doing it so much. How did you from your uncle's business to doing what you do. Now in sales for jacuzzi sundance. I did it for ten years retail wise. And i enjoyed it immensely. I think item. They hooked me. The most was that i could sell a product for ten grand and then a week or two. After the delivery other product have the consumer come back in the store and actually kiss or hug me and say i was really skeptical about getting this product. I never owned one before. I didn't know what the lifestyle change would be. Wouldn't didn't know if i would use it a lot and it ends up. Being one of the best decisions i've ever made for my family. And i find that not only does it help me healthwise but it helps me romance wise. It helps me with my family communication. More enjoying My children and friends and occasions. When i can use the product inconvenience with my own backyard. That hit me in a big way. I don't think there's any premium product that you could sell where you have that kind of a family of consumers coming back to time and time again in talking about other lifestyle has changed and improved the product that is sold that for rs or fitness equipment. Enter things like that. Because i think it's sometimes one and done with a lotta those types of sales and this one it's ongoing and we see second and third generations of those same consumers who can't live without their hot tubs after they move for example so really hooked me in a big way to be in this industry and so i just wanted to do more and i thought from a retail standpoint. I was touching my own community and doing well with that. But what could i bring to a national level or at least at regional level. I was really well trained by my boss and armed savia. No even drop his name because he really wasn't intense trainer when it came to not only how to sell but just know how to manage the product work with the product after the sale even service the product very conscientious owner and i wanted to be able to share those practices that i learned in those ten years with others and so there was an opportunity came up to be a regional manager and i threw my name into the ring and was hired in nineteen ninety eight to become a representative and i still remain as a representative for that same company today. Twenty two years later l. That's great and very unusual. I mean i. I feel like the sales managers are maybe the people i see bounce around the most from one company to annex there with one manufacturer and then a couple of years later there was a different one and they just kind of move around. So that's pretty impressive that you've stayed with them for that long oil but also i'm blessed blessed that there are a major manufacturer that's very well known. That has a lot of resources to provide their dealerships. to type. support dealership requires once. I love to be able to communicate those tools and those programs to a dealer. So i'm i'm blessed that i've seen changes over the years that are crazy With how we do things. Are we make spas how we promote spas and that ever changing climate makes every day a different day in a new challenge. Well you kinda segue into one of my next questions. I'm curious what your daily life looks. Like what your job looks like. Obviously we are in the covid era. And so i imagine looks a lot different now versus when it did you know a year and a half ago bites. How has it changed from when you started in the nineties to now because obviously were using smartphones and all of these things that are supposedly supposed to make your life easier. So what did it look like when you started in the nineties and two now as far as getting out there traveling talking dealers. What what is it like well. As a lot of things have changed first of all just traveling itself. The job was always more than sixty five percent travel. I used to have to go upstairs and print out a map quest sheet to go from here to there and looking at those sheets while driving was not really a safe thing to do and many times. I lost in. But more miles on my car than i would have wanted to. Thank god for the the greatest invention which was Ways app and gps. So i could find my way a lot quicker and navigate through over traffic. But i have to deal with in this region especially. I've got washington. Dc traffic. I've got philadelphia traffic. And i got new york traffic so man whenever i can save a little bit of time and get there on. Time is really a common thinks something as simple as that technology has made my life so much better but also it's made more interesting to communicate with dealers about the new ways to do business websites social media in back in the day when we were in retail in the ninety s. We use newspaper. Advertisements nervous would pay to get on to communicate in that page but so limited. But now i can really talk about all the benefits of hot tubs differences of hot tubs. The lifestyle re people have once they hot never had that chance before but the the media that you have with websites blogging and social media just intensely great for our industry having having the ability to share those ways and get savvy added with dealerships. Really been probably the biggest steppingstone for me and for the industry probably to such a huge a huge huge change Overdoing today resumed exit. Thought that i know this is. This is a true. I had a bag phone when i first started getting around travel. Oh yeah we had a bag found growing up. Oh man it's sunny to think back to those days as your career went on and again as we started to see more and more of this technology come into our lives. Did you continue to travel as much. You're on the road as much or were you doing a lot. More things remotely. I think we could still continue to travel as much up until these pre cova tons. Tom's yes. I definitely use technology in my job more than i ever did. But there's more programs there's more to communicate about. So you have to use the media of the internet and and outlook to communicate those things to my dealer clientele. But i also can be more creative in my job because i have access to google and other things to help me In my job or video was never thought to be used even a decade ago yet. Technology has really helped and creativity side expanded where i can spend more time in my office and still be productive but the job still entails. I believe that communication seeing face to face seeing what's happening on the sales floor working with even in consumers. When i'm there i think there's an important approach there that to the retail stores in our job that is the sesame is still travel angry. I mean they're seeing their customers face to face still and so there's a lot of that that goes into it now that we have these cova times and you pretty much couldn't travel if you wanted to. How has that changed. How you communicate with your dealers. And how has that changed how you talk to them about communicating with their customers. It's changed because obviously not getting out and seeing them personally and normally the walk around the stores a critical part in job what we do helping them work with the tools that are on their sales floor and not being able to see what's happening at the dealer level as frequent as i used to do is kind of difficult but yet the frequency of communication that i can have with all of the other methods cellphone computers zoom etc as enabled me to maybe become closer with my clients than ever before through these times. There are three main things. I've always felt my job. Should be the roles that i should have and what my clients expected of me was always to be a liaison to the factory. So i can still do that. Even though i'm remote make sure that they are fulfilled with the information that they need training is really the difficult part. Because it's the hands on part train. It's demonstrating the product. It's the hands on see touch feel but is still some capabilities with remote that we should be taking advantage of him. We do and of course sharing best practices. When i see another dealer doing something. That's really strong or believe my dealers. Wanna hear what's working and what's not working and i wanna make sure that i share those best practices with them so i i can retain those three main pillars. Even though i'm doing it more remotely than ever before. Yeah what were the main challenges that dealers were coming to you with. Have you help them solve before covid. And now what does that look like now are they. Are they having the same struggles or is it a whole different ballgame. Definitely the struggles of changed. Obviously but just in time inventory just in time abilities to to get the product in their conversations with consumers always have been. Hey i can get up to your nearest five weeks or less. Yeah and what do you want. And do you want the stat or that jet or this feature that feature. I mean the world was oyster. You could have. You can have that hot tub however you wanted it exactly and so now. They are having to promote their sales off of predicted sales that they will have three six nine twelve months from now and after care in order for that. It is a whole new ballgame plus managing those end consumers expectations. All i have a deposit on that consumer. They're not gonna see that spa for quite a long time out to right. Keep in touch with them. Nurture them get them prepared for it and keep them still interested in getting that product. Six months from now i mean. It's just insane i. I don't think any of us were obviously. None of us. Were prepared for this. So i started in the industry pretty much at the beginning of the recession. And so this whole just in time ordering not carrying any inventory. All i know of the hot of industry is that how it has always been or was that a switch during the recession during the recession. I think we got better at lowering inventories and being more efficient than we were prior to the recession. I think we're doing more with less by far these days. Thank god for technologies. That help us do all that but i think our staffing has less than it used to be at the retail store levels in prior and yet today. What's really funky. That dealers are now starting to achieve levels of sales that they had pre recession in the early two thousand and some of them even haven't even touched what they did then yet come in and where they were so staffed up they were so stocked up back in those early two thousands now. They're coming to the same levels of production of sales soaring sales in may need to ramp it up to those same levels. But they're doing more with less these days so even before the recession. It's not like people were carrying a ton of hot have inventory. It was still. It was already kind of streamlined process. As far as their customer comes in orders what they want. They were from the manufacturer than it comes. I know not every business is always always operate that way. Every dealership is a little bit different as a generalization. That's kind of how the industry has looked for as long as we can remember. Yeah i'm pretty much. i mean. Obviously preseason the product is still seasonal We have Second and third quarters are the times when we're probably delivering the most hot tubs to end consumers and so having stock and inventory levels up higher obviously in that second and third quarter would always be critical seromba. You get into the first and fourth quarters calendar year they're carrying less and able to satisfy consumer of hey four weeks you still gotta get a pat down for that. You still gotta get your electrical contractor. So timing is perfect with four to five weeks back. Right right yeah. It was never a huge deal with not being able to get a consumer product in time. So this is a whole new process of how many dealers are running their business and manufacturers. I mean how do you help them figure out what to do. What order windsor order. How much to order. What are you guys doing to help them. Stay on top of things. They had that steady flow of hot tubs coming in without putting their business in any kind of danger. I mean they've never had so many hot tubs on order before know that they can recall and so therefore looking at how many they have and yet they still have to order more in order to meet. The demand is just a crazy condition here. We are in november when things typically a little slower here in the northeast yet if consumers were to go into a retail store and didn't know any better. they're really buying a hot tub for august. Yeah i want your hot tub for labor day and you're maybe in the fall or if they get lucky they find the product that they want whether dealer that has been ordering inventory that will get the hot tub that they wanted to the right color the right size right style for themselves maybe by march or by if there if they deal with the luckiest dealer in town i mean. Do you have any dealers who were just had that crystal ball and started placing orders before everyone else so they just. I talked to a couple who have done that. Most people are well. Were behind the eight paul. They probably aren't any more. But i have talked to a couple of dealers who win things. Were still shutdown. Just started ordering millions of dollars of products and just anticipating what i didn't see coming grew went crazy right. We did shut down in march party. April started back up in middle of may and we went from eight to ten to twelve to to twenty week lead times in just about a month and a half. It was crazy. And so it took dealerships the know how to eventually start whittling process in a new way of forecasting their sales and selling virtually those consumers who couldn't see touch feel the product and making sure that They were they were going to have the product at least in time for holidays especially cajun's events that the consumers would want and it's not just making sure that you order the right number of hot tubs is making sure you order the right. Mix of hot tub right. What is the consumer like the most. And what am i going to have available to them and i want to make sure that. There's on reduce that buyer remorse. So it's not just the number of having it in stop it's having the right model mixing stop or coming to sta. It's such a huge switch for industry in the way that we all operate I know that. I am still having a hard time wrapping my mind around how this is working for dealers but it's other industries do this. I mean it's not like we don't have other places what we can look for examples of how to do this and do this while because a lot of industries have to operate this way and can't be just in time inventories. So where are you looking. And what are you seeing as to tell your dealers. These are kind of some best practices. I mean we have to look outside our industry because we don't have any insider industry. Where are you telling them to go. How are you getting them to figure out how to do this. We're talking about people. I mean you've been industry for thirty years thirty two years. A lot of the dealers are in the same same boat. This is all. they know. This is how they've operated for their entire careers. It's been a shift by miles but there are categories that are in the same situation as we are anything to do with the backyard. Yeah they're aware of that. So if they have another category on their flir experiencing similar rise in and demand as far as backyard products patio furniture to pools especially and barbecues. And so they're already familiar with the demand and the need for that but there are the categories like boating industry and rv industry where they don't have any product of display or not much at all and they're taking orders year in advance. I like to compare us to tesla you can build your own product. You just have to wait for it in. It's worth the wait there you go. I mean i think. That's what a lot of retailers are telling customers right now. I mean if you really care about having this or that feature then that's great but you're going to have to wait and publicly that means you'll just get that much more enjoyment out of it when the time you have to make them look at the long term as best as you possibly can. You're not just looking for this product for a quick turnaround. You're going to keep it for ten fifteen or even twenty years. I have definitely a lot of consumers who still maintain have their same tubs from the ninety s. And they're just changing them up now to a second generation so when you make them look at a long-term and all the holidays all the parties. All the possible aches and pains. They may have down the road. The it's a long term decision not just a short right. And and there is a concern about by remorse. Giving them a spot. It's too small but they didn't get a chance to see it in dealership right Making them have the ticket color. That won't be matching with their home decor making him. I'm going to get a lounge. Because that's all that they had. But i was really no no lounge. Kind of a consumer having representation of that product remain on floors. Really been the most difficult balance for dealers started because they want to satisfy that demand. I want sell that. Give that spot to that consumer yet at the same time. I don't have it here to show the value of it for their need physically in and get that message across virtually so so much of a different change for the dealership. I never really thought that way of it that way before because you know sales are pouring in and so on the one hand it seems like it would be easier to be a salesman hot tub industry right now but you actually have to be even more of an experts and really dig into what that consumer needs. Probably even more than you did before because like you said you don't want them coming back in six months saying you've suggested that i hate it you need to really dig in and really pro. What they're needing and wanting and their desires are because the chances of getting it wrong or probably a lot higher now than they were before this crazy sales time. So that's that's intense. You're getting a lot of sales. But you the pressure to get them right is probably even higher komo weather forecasting the weather person said this morning it was going to be really cold outside but i don't know how cold it is going to be until i step outside and then i feel it and i go. Wow he was right. It's cold but i really didn't understand it until i stepped outside. It's the same thing with a hot tub. Is this seat going to be comfortable for me. Are these jets going to provide the right massage for me. How do i describe that. Virtually without having the product. They're that they're going to be satisfied with it when they receive. It's six or nine months. Later is really pretty tricky. You really have to be on your game. Do to be able to provide that value the differences because obviously we sell a good better best product. Why should i move up in the price point. Well the feel is going to get better when you move up. Trust me and this is how it's going to get. I wanna talk a little bit about those days of cove. Ed and what. You're hearing from dealers at the beginning of shutdown because everybody. I've talked to those first few weeks. Were a real gut check. Everyone kind of prepared for the worst. Because obviously historically any kind of downturn or major shakeup is is not good for luxury consumer products and hot tubs for sure and so there. Was this panic kind of at the beginning that quickly turns into this boom that none of us were really expect team. So what were your conversations with dealers like in those first few weeks versus early may for sure when things had started to skyrocket definitely a what a one eighty change. I mean this first happened. And everything was shutting down. And here i am and nearby the epicenter of where it was all going down here in new jersey eastern pennsylvania and so there was a lot of worry a lot of dealerships closing down not knowing when they were going to open their doors again not knowing what the restrictions were going to be lifted so that they could of do business as usual not knowing when they would be able to get product from my factory. There was a lot of unknown. And so there's a lot of fear and layoffs were occurring. Thank goodness for p p. for a lot of dealerships. Yeah but i was furloughed myself for two months and so i was living there. Same as as to witness was going to stop when business as usual. Could pick back up again and it's still business as usual now. Whatever s. They started to change. People say i'm spending more time at home. And i gotta i gotta summertime coming up and we want an answer at back yard and wood products. Can we get because. We're not going to be traveling. And so the first most common denominator. I heard consumers were having conversations with dealerships. Was we're going to disneyworld normally with my family on an annual basis disney. World's not going to happen for the next few years for us so we need to do something with the money that we're not gonna spend on disneyworld go and spend it on our back yard in on our family. I must've heard disneyworld in first month about a dozen times but that was a very common thing but it was other travel to abs traveled. Europe travel year anywhere. That's where we obviously ended up being beneficiary. What a change. Yeah i was gonna ask you sort of what this cova journey has looked like for you personally so you are furloughed which also gut check. Because i'm curious because you have all of these long term relationships with dealers. I can't imagine that because you were furloughed. They just automatically stopped calling you and talking to you know now. We talked a lot even more obviously got closer to my dealer just as much as you were before or if if not more yeah yeah i definitely would still working definitely still picking up the phone. I love talking about the sale Rats my favorite thing to talk about the individual sale and how to get that sale So salespeople notre to chat with me when they want for help and information and dealerships knew that i was there and continually going to be there and that's just their work ethic that i've always had but also with this company is always instilled in me. And so yeah. Communication communication communication still had to be there and that roldan change but from my home stand situation. Obviously when you travel sixty percent plus at a time and now you're not absence always made the heart grow fonder with my wife. And i so i always knew when there was a level of annoyance that i was creating around the house that ooh i got a trip coming up. Thank goodness i'm sure she might have said. And so i go out on the road and come back in and things are great. But now i'm a complete one hundred percent annoyance Have to learn. Calm down and go into a different room when i'm conducting some of my business lifestyle change. My husband will occasionally work from home. He throughout most of this is not typically at home but every once in a while come in and be doing some paperwork during the day and it is not my favorite thing. We're in a small space together. And i'm just like why are you making so much noise. Enter my wife is a successful realtor. And i think i could sell real estate by now by listening so many conversations. She's had i think she'd be a terrific backup salesperson because she's listened to a lot of the conversations. I have had over the last six months. So you guys get this kind of step into rates other if if need be if ever. There were urgency. You could keep each other as jobs. Rolling on on the side probably true. There are sony things that we could talk about with regards to all of this once. Those times did start taking off. How did you help your dealers manage that. How have you encourage them to change their sales process and that communication process. What kind of best practices have you been talking to them about. Implementing so that they can keep those consumers engaged and updated and not. i mean. obviously they're going to be a little frustrated when they think they're going to get their hot tub in a month and it's going to take several now. What have you been encouraging them to do. Dealers have never worked so hard in their lives. There's no question about it. They'd been really working hard. There's been a demand it's been fantastic for sales but it's just been wreaking havoc on dealer anxiety levels because the consumers making a large purchase with them in their married to that consumer for just the period of time that it takes from contract to delivery is so much change There are so many more contracts. There's just so many hours in the day to talk to all those consumers and work those leads and all the other things that the dealership has to do from managing their inventory to doing deliveries and maintaining service on top of it. So they've never worked harder hats off to the retailers doing really difficult and challenging times and changing the times in quite a short period of time. So what we've worked with them on is number one as a virtual selling and making sure that they have other virtual tools that they can they using zoom or the using facetime they using the methods that we are now on this call for example with their consumers today. Still see a face. They still have that image. They still see their showroom and They get a a personal touch as best as they possibly can. Do you still have retailers. Who are still doing a lot of virtual selling. It seemed like in march and april. I was hearing a lot about that. And then a lot of people have talked to now are like we haven't really done that for a while. Do you have dealers who are still doing lots of virtual sales. There's well when it comes to sales. At one of the things that i have seen dramatic change in is obviously. There's been more sales with products sight unseen so they don't always think that they need to go into a dealership anymore to see touch and feel the product. Although it's a huge advantage for that dealer that does have that display to get the consumer to still come in the store and then practice the right social protocols that are necessary the challenge today of the virus. But the they are. There's more foot traffic in the stores to answer your question. It's limited to Certain number of people that can attend in the stores at the time trying to sell with a mask on isn't always the easiest thing to do. You have to enunciate a lot better than you've ever done before. But the traffic in the store is picked up now and it's less virtual but there are more sale still today sight unseen. It's probably onto thirty to forty percent sales over the phone over the internet. Whereas pre covid i would suggest it was five to ten percent of that. That's a pretty shocking number. Did it again. Because one of the reasons i i i wouldn't be able to sell insurance is because it's not something that's tangible and so i like selling something that's tangible myself. And so that's why. I love selling product. Sorry i interrupted your thoughts as far as helping the retailers kind of this whole new world so other than other than virtual sales. I imagine that the you know it used to be they have these these drip programs and all of those kinds of things For before the sale but now are they having to do that on on the back end like by the way you know. Here's your weekly update on where you're at in our schedule as far as getting your hot tub the you hit on a great point there and i really feel that's necessary. I've heard the term used reverse nurturing staying in touch with them or they don't say want i'm tired of waiting. Give me my money back. You don't want that way that that happens is if you don't communicate in the interim between contract and delivery and then you're next medication is the month that they're supposed to get that delivery and i'm not gonna eat that we're not gonna meet that date that we told you six months ago or three months ago. You don't want that you want. This is the status. This is where your products at. We're hearing this is the change in off-line date we look forward to getting your hot tub. You're gonna look forward to getting it as well. Because i can give you some third party stories about some people who just received their How ecstatic they are that they can have during this newer next level. Shut down once again. That's upon us again. Where we're going to have to quarantine possibly more at home than before. Now i have this product to enjoy at my home. And there's going to be a second hot boom not that there might be a second sat down. I don't know that. As much as i know that. I don't see any reason for it not to continue well into twenty twenty one right because not just the older new buyers that are coming into the category but those new buyers are obviously great references and influencers to other people who will definitely buy our products if we do right by the first set of consumers. They're gonna tell more friends and family and we're going to stay busy here. Yeah and that's really gonna be the benefit long term of this. So yeah and i really don't see at the level of sales were experiencing right. Now it's gonna change well into twenty twenty one day. We've got march april and may were. We re partially shut down this year to sell into so it should be a growth year. Yeah yeah that seems to be what. I'm hearing other people in industry as well. And i know i've said this on the podcast before but that is what i've seen in. Our own neighborhood is almost every single. One of my neighbors has done. Major upgrades in their backyards including us and and it does kind of seem to just move on down the line you know want someone does something and then the next one is oh. That's pretty great. I wish we had that an ours and it. It just is a rolling effect. We've definitely seen a few hot tubs delivered here. So the trend is is going to continue. I mean i see more. Gyms in garages boever seen so people are more health conscious to stay healthy. I definitely was looking equipment for my husband for christmas this morning. Where we're going to put it. But we gotta do something because we're both look like we were having pandemic babies at this point. So that's that's not great. I mean. I think i'm in my second trimester so so yeah i definitely think health is. There's a focus on health and maintaining a healthy lifestyle. I think that family. The hot tub provides The family feel and getting together is is going to be a huge part of it because we're all still at our homes and seeing each other more frequently. Let's go outside and enjoy each other's company in the backyard room and i think just the anxiety that have unfortunately been caused by this virus. Young news that we have on a regular basis is making in assessing for a better mental health that you can provide so we were really for the first time in my life. I have a terrible time. Sleepy now. I definitely could use that nightly hot tub soaked to help me actually make get a full night's sleep. I also have an infant. So i mean need to take it with a grain of salt but even when the baby's not waking up. I'm still waking up so i i in need of a hot tub stress relief time on a regular so i definitely see that as a been a beneficiary and something that we can actually provide to that makes the job more worthwhile. Yeah have you seen a change. In the types of features that consumers are interested in now versus covert. Yeah i don't think that's changed. And they wanna start. It's easy to take care of turn based fear. Spas may not easy to take care of because of the unknown. I still think that we need to address that and we are addressing it with various ways but i still think that's part of their concerns growing into it as far as features are concerned. No i i really think that. It's still the same staples of ease of maintenance and getting a good massage from the hot tub is with. They're looking for a will built one at that. Is it been easier to talk people into some of those upgrades as far as maintenance and watercare and all those kinds of things especially since they've got time to wait. I know every customer is different. But they're definitely more well informed. I mean they're using the internet way more than they've ever done. They're spending so much more time on the internet learning And therefore they see these features and see these concerns from reviews and such and so they want that to be addressed at the retail level by the retailer. And so i do see that. They're wanting to buy more ease of maintenance products with our hot tubs So whether it be ozone whether it be a jozy better filtration systems They definitely are looking for that to make their life easier. They don't want to buy something that they're going after work at. But other than that. I gotta be honest with you. There's the flipside in that is is. What do you have available now. When can you deliver it. Yes without a lot of thought into the process. I just wanna atop so it may not match that decor may not be the right size for that consumer it may not have some of those features that they may have wanted to have long-term after the fact. Yeah and that's something that we really need to slow up and take our time. Listen to what they're really wanting and and making sure that they know that they have options. That's a great point because like you said the last. I mean we don't want to have those buyer's remorse and people who end up regretting their purchase a year or two down the road because it doesn't do the things that they really needed to do for them because they're more concerned about getting an as quickly as possible and he's seen a lot of cancelled orders. I know that's been a little bit of fear in the industry that people are going to you know what the long lead times that people are gonna say. Just give me back my money. I don't wanna wait most dealerships. I've talked to that. Hasn't been a huge issue. Had a couple of cancellations but nothing. That's been to widespread sadly Most of the time cancellations come in cases of hardships that the household is having the german -ticipant when they made that purchase. So that's a sad time when you have to do that for the most part. No it hasn't been really an issue because if you're going to delay your decision on this product that you want your only further delaying what could be a real satisfactory purchase on your clutter. Adam you're going to be you're gonna cancel now. Okay then you're not going to get your product until twenty twenty two where it could still twenty twenty one. So i don't see a lot of cancellations occurring only in the hardship cases. That i just referred. Is there anything else that we haven't touched on that. You have seen out there in the field that is important for retailer to be thinking about going forward. This kind of new landscape of selling hot tubs. Yeah i definitely want to stress to my clients that they have some representations of the product on the floor display is the upper hand. No question i can show value in the product differentiation in the product. When i have it on my floor. I cannot do it as well virtually And that is probably the biggest game changer for them as the figure out. How can i order. Spas for display and not let my staff know that i've got those products coming in so they don't sell them brain then when they get there they have to convince the consumer that no one is not for sale right now but i could give you layaway up until two thousand twenty two if you want to wait that long. Yeah no i think. Oh yeah. I think the biggest thing is having that display it is. That's what i'm trying to emphasize for twenty twenty one. We got away from that big time here this year. We got to get our hands back on again. Beyond do you still have some dealerships that have fairly empty showroom. Still no i do. Yeah it's it's tough. And they're the best sales people in the best service people in the best dealerships and they're convincing people to still buy regardless of that fact. I just know that they would prefer to have representation of the product of a full floor of that. Yeah to make sure that their consumers are making the right decision on the right product. I mean i know that we wanna to keep this pretty like brand neutral. But it's i from talking to some of the been pretty good with that so far they have even hardly ever. You probably drop the jacuzzi stunt at all. I'm very pressed I know from talking to other people at that jacuzzi that you guys have developed some pretty great tools for the retailers as far as Your own virtual training for them and as far as setting up for them to be able to sell virtually and probably things. I don't even know about but it seems like you were able to jump on some of that stuff pretty quickly and provider dealers with some tools. That maybe weren't available to other retailers. So yeah i think video suffer. Some promotion subject uses video has been really huge For dealers obviously getting onto youtube obviously having video on your web being more realistic of what the product experience should be in a virtual way. Pre covid was huge. No question and the companies that were able to be more nimble in regards to using technology and using video in their advertising and marketing had the upper hand and so when cova king it was right into their sweet spot They were already adapted so much like takeout food restaurants. If you already had takeout prior to tacoma boy you laid it up and did a great job but if you've never did take out at a restaurant before have you had a really big shift. So i don't think our dealers had as great as a shift as maybe there's a because of the blessing of having strong marketing department that was already developing those types of tools to be able to do the job virtually with using video and and using virtual selling methods. So yeah we already had that employee which was terrific. Seemed like it sort of this sort of made us all shift to things that we've been talking about doing for years and never have had to do things i think were on dealers long-term planning lists and long term to do list ended up being. We need to do this in a week whether it was putting up an e commerce site or setting up curbside service or learning how to do sales over facebook. Those things that are like have get idea to implement down. The road became. Oh we have to do this now if we wanna keep some kind of money coming in for those first few weeks of the shutdown a lot of changes had to be made in a short period of time ashby adapted to including again once the stores were able to open now. Did you have all of the right protocols in your business from hand wash stations to plexiglass to masks. Just all of that stuff Wiping down displays and things like that. On a more regular basis again the workload has become quite challenging for the retailers during this time but boy. I think it's changes like you're saying for the long run that will benefit the dealer long-term by adapting to those changes absolutely had to the area that you cover on the east coast probably has some of the stricter restrictions than other areas of the country. I mean i live in oklahoma. I mean we have mask mandates but let's be honest no one's really super enforcing that and so i guess i'm just kind of curious. Do you see on the areas where you have dealerships that they do have really strict policies that they had to adhere to and are still having to adhere to because there were i feel like even kind of in the west where things are a little bit more or the middle of the country where things are a little more loosey goosey They had some really restrict things at the beginning that they did and now they're not doing them so much. Maybe now they're they're ramping back up. Is it kind of stayed at the same level for you guys this whole time. Yeah i've always wanted to get a t shirt made that said. Tell me what the rules are today. Because they seem to change so frequently and it's such a big challenge to try to keep up with it. I remember back in late march and april. You shouldn't be delivering atop during that time that you're seeing down the street with a spot on the back of your truck you might be asked to turn around and take it back because you weren't supposed to be out on the road and you weren't supposed to be working. He was supposed to be shut down. So that was a major time of uncertainty. But how long that was going to last. The restrictions are still there but there are a lot less than they were at the beginning of covert. Not only have. We learned to adapt to them. But there's more people coming into the stores now and shopping similar to the ways that they've shot in the past no doubt so. We are back to normal times in regards to the shopping experience except when they go in are they going to see the full array of broad. Do you think that there's going to be some new positions going forward that dealerships need to hire for that. They didn't end. I mean manufacturers. I know a lot of them now. Have a nurse on staff and things like that that they never dead for our dealerships. Going to be doing the same thing. Maybe not a nurse but people to help coordinate their do. They need a fulltime order. Placing person not. I can't wait to get to that level right. I would suggest that changes. I've seen is is that some dealers will have a lead concierge and that'll be somebody who tends to person who initially inquire about a hot tub and so they've put someone in position to be agreed or if you will and warm them up to the hot tub industry before they would be able to speak to a sales person who could get more into the details of ownership and taking ownership of a hot tub and how to because the leaves have been so crazy. I've seen more. Dealerships are become more agile at the front side of handling those leads but yet at the same time having that same lead concierge. Now be the reverse nurture person you now. That person needs to call so many of the consumers per day just to keep the more before between the contract time and delivery time of the hot tub. So that's droll change that i've actually seen in a big way as communicating with the end consumer more frequently after the sale prior to the delivery. Yeah that's a great idea because with the number of leads coming in and a lot of people saying oh a hot tub sounds great. Let's get a hot tub and you know step into having no idea that lead times for so long or that the cost is what it is and all of those things that's great to have someone kind of at the front heading them off before they pass them off to the final salesperson but warehousing certainly has to change for some dealerships. Now because you're gonna be able to take the product in when it's ready doing more deliveries in the wintertime. Here in the northeast and they've ever done before. Hopefully we don't have a lot of snow on the ground. There's a lot of hot tubs coming this way. And i know there's a lot of consumers looking to receive those that'll be waiting so patiently that they don't care if it gets delivered in january. I'm ready for it. Just help you clear the driveway. You know that's gonna be a different change for a lot of dealers and a lot of consumers in the northeast for sure so staffing up and keeping her staff's high in the wintertime when normally it's slower for those dealers in the winter months of december january and february for deliver those couple of changes. I definitely see happening. Retailers in the past you know sales had gone up since the recession but has kind of leveled off allow people at some kind of normal levels that they expect the same percentage of growth every year and for a lot of retailers. Basov next opportunity for real growth to be opening a new location and expanding i. I'm curious now. If dealers are still looking to expand obviously they've had sales growth without having to add locations and really without maybe even utilizing the locations that they have what there's also the opportunity for some real softening on the commercial real estate sides. Do you have dealers who were really bullish about opening new stores. Maybe pulling back from that and then some people who maybe didn't think that was in the cards for them now saying oh i can get a great deal. Let's test out this market. I think you're right on both front. I think that there's a lot of business coming into the retail store that there's still busy but right now the resources are overrun and for them to consider to expand during this time they'd be more than they can chew and so they are basically busy just trying to maintain the business that they have and again remember a large majority of my dealerships on chest focused on autopsy. Seventy percent of my dealers do pools and you're fireplaces were outdoor kitchens etc and so it's balancing all of those backyard products at the same time and how busy they are going to be through next year in all those categories out of the handle that but yet at the same time. You are absolutely right. There are dealers who are using this opportunity to their business to higher levels to sustain barger growth long term for their organization. So although the money isn't coming in just yet as the deliveries are just getting made. Now i think at the end of twenty twenty one. There's going to be a some. Bigger coffers of our dealers are going to be looking for ways to reinvest in their organization. And there's never been a better time for what you just said in. That is real estate commercial. Real estate is definitely available. And certainly to expand your reach beyond your current radius. elliot. Stewart is a huge advantage. If you have the resources to do it now or in the near future and so we have both. We have dealers that are looking at that long term. Wave other dealers who may be just trying to get through twenty twenty one sir. Of course it's not like you can just plop open a new store and fill it with hot tubs right now. either so there's so many facets to that it's interesting to listen to side of the what side of it the retailers ended up on. It just depends on the retailer. Actually and what their situation is. But i have seen both of those and the market. Yeah correct sir. All right dennis. I have asked you a lot of questions. I usually knows answers. This is great. I have gone way off of our outline. So you've done great sticking to stay with me on some of these topics right. They just come into my mind. And i have to ask you about but what is not going to change. Is this bari tiller five. Are you ready for those things. So all right. What was your first sale. Your first hot tubs sale. That you remember. I hot tub sale for sure i remember well was a sundance. Spas royal mo and that was a large lounge luxury hot tub and was my favorite goto model. Probably my favorite sale selling model. That is for quite some time. And it was in the color of teal. Teal ran the acrylic spa business for quite some time and appeal all day. Long like itsel teal teal is today's platinum acrylic color in the teal royal. You didn't see a lot of back in the day. What was your first job. Real job was working up. On the boardwalk at this beach town iran arcades video and pinball arcades for seven years in fact. I thought that's what i was going to do for the rest of my life. And i was also one of those guys that ran one of the games of chance the microphone and bringing people over winning stuffed animals and stuff like that for games of chance. So that's where. I got my big mouth from. I'm sure that's great. I mean that's pretty. That's pretty good training for any type of sales. Also you gotta be able to think pretty quick on your feet if you're doing that kind of stuff and then after that when i graduated college i got real job and i worked for. Rca in camden new jersey which is a government defence company and i worked as a budget analyst. And that's why i got into salesman. That wasn't fun. That was no fun. This is so much the financial background. I'm sure it's still serves you. Well as you're helping dealers run their businesses that yeah i mean though what would you say is the worst idea or the biggest flop that you've ever had in your career something that you were like. I consider that question earlier. And i had to say i struggled with that question most of all because you never a bad idea of mine. It was just other people's execution of that idea and it really gory. It's a little bit of a situation because you're not the one out there. You're not making the hot tubs or coming up with the development of those ideas. And or i probably would say that we were having a truckload sale in two thousand nine september when they announced the stock market crash. And that was on friday and sale that truckload sale was the worst truckload sale. You can have at the worst time. Yeah that was probably. The worst idea was didn't anticipate that that was going to happen. And yet we had it. And it was disastrous. That would be. That would be great. I'm sorry that happened. Although i feel like not necessarily your fault but you probably took a hit. Yeah because i suggested that the dealer should do that truckload sale so yeah not their favorite person for for a little while they're all right so on the flipside. What was what would you say has been one of your best ideas that you brought to your dealers. I think bringing sales training ideas to the dealer level has been one of my favorite things to do. I like to simplify the process. I'd like to see the light. Go on they understand out of present this product especially people new to the industry and how they can relate it to other products. They may have sold in the past. That's probably been my greatest thing that i've bought to. My dealerships is a sales training. I think they expected of me. And i try to outside our hot tub box and i think using training has launched me to opportunities in my career at this company to enjoy it so much more. There isn't an state. I haven't been to other than alaska so i've seen a lot. I've been to a lot of places that had the great opportunity to meet so many fabulous entrepreneurs retailers hardworking sales people in service staff. I've never worked a day as hard as a as a technician in our business. And i really appreciate what they do in the field to turn those frowns upside down. So yeah it's really been able to provide me with an understanding of the industry from every state in the united states. That experience to travel and learn from great dealers has really helped me. Help my own dealers. I kind of feel bad now that we haven't talked specifically about sales training because sounds like maybe would have been a good topic to go through with you in some more detail. It's my favorite subject. No doubt it's fun. What's your favorite book. Tv show podcast movie would have been doing to entertain yourself while you've been off the road. I've definitely watched more series in more. Tv shows than normal not any particular show but more series for sure. Definitely read more. On and jeffrey dahmer would be my go-to books. Okay i can pick that up again or any of his books up again and again and read them over and over and get something. New from jeffrey get emerged. As a sales guru who is out of north carolina was formerly from my area south jersey. Actually and he's just a great sales trainer who understands customer service and the nuances of selling in today's world. So i watch him. When i can social media podcasts and i refer to his books that's great. That's a good. That's a good tip. I'm sure there's some other salesmen out there. That would have been recommended him highly. I because he's got the new jersey style of in your face as well and so you don't escape his wrath if you're not on your game so you you like that style. Then i do. Yeah i like his now. Let's get. Let's get well dennis. Thank you so much for coming on the podcast. I really appreciate. It was a lot of fun we might have to have you back to talk about sales training so i can pick your brain on that as well but great. Thank you so much i appreciate. Thank all my clients my dealers and everybody i've met in the industry Has really had an impact on my career. And it's made one that. I know i'm gonna retire. Happy with i mean it was jeff my former co host. He's he's on the podcast anymore. Unfortunately but he was the one that that we speak to you and he doesn't even sell your products but you guys have both in around the industry long enough that that you're kind of buddies so a great guy and he's done so well and it's just great to know somebody from the moment. He stepped into selling october into being a great dealer that he is today. And again. That's just work ethic. And that a lot of our dealers have. And that's i love people. Like jeff purser all right. I will let you get back to your day. Get back to those dealers than those phone calls. I'm sure your phones going off a lot while we've been chatting soon silence but yes thank you. I appreciate it very much. Have a great afternoon spa retailer. Podcast is reduction. Spar retailer magazine. Let us know what you think. By leaving her. Review or emailing us at podcast. Asfari taylor dot com. Thanks for listening.

south jersey philadelphia Megan kendrick spar retailer magazine small beach dennis seromba north wildwood new jersey cherry hill roldan jacuzzi east coast boever windsor tesla Tom
CRE News Hour 6/21/2019

Commercial Real Estate News Hour

59:36 min | 2 years ago

CRE News Hour 6/21/2019

"From the business desk at st broadcast news this is the c. arena news hour. I'm steve lubeck in this week on the sierra. Newshour new jersey future gave out at smart growth awards to app upstanding redevelopment projects. We'll have a report from the awards dinner. Speak with brian chandler of j. l. about trends in senior housing and nursing home development will report on last week's meet the developer panel at the philadelphia center city proprietors association. We'll have part two of our conversation with attorney lisa's arlanda about opportunities zone investing and a chat with scott martin of adelson young about the new way medical offices are being marketed and brandon. We'll be back with the top c._r._e. News stories right after these messages <music> turn earn your podcasting passion into profits the book the business of podcasting describes the business side of podcasting including how to become a professional national podcast. You'll learn about position your clients expertise who podcasting to plus the best business models how to find clients and much more visit the the business of podcasting dot com oh today you can't wait for the media to cover your company buzney. You have to be the media. Take advantage of the power of audio and video. It's the best way to showcase your expertise to prospective customers. Let the lupatkin you bet can media companies handled the technical side. We're award winning audio and video producers. We can help you produce podcasts and video programs remotely or in our fully fully equipped studio in cherry hill visit being the media dot com for more information. Welcome back to the c. r. e. news hour. We've got a jammed pack show for you this week so we'll get right to it as we always do with the news and headlines the leading off this week in germany properties has acquired a logistics just exploding at one hundred and fifty milford road in east windsor new jersey. The project has six hundred fifteen thousand square feet currently available for lease. It'll be ready for occupancy by twenty twenty. After derby properties completes building upgrades gene preston is the eastern regional partner for germany properties. This building represents one of the largest blocks of available space in the central new jersey industrial market. Ill location provides direct access to exit of the new jersey turnpike. The building located on fifty one and and a half acres was originally built in nineteen ninety eight. The warehouse expansion was added in two thousand three. The building has twenty eight trailer parking positions four hundred thirteen car parking working stolz forty one doctors and thirty six foot clear height in the warehouse addition new york based king penguin opportunity fund three is working with c._b._r._e. In pittsburgh for four twenty eight forbes avenue known as the pittsburgh got a bunch of new tenants there michael mckay look it is one of the managing principles of the king penguin opportunity fund b. have been working with c. E. r. leasing broker <hes> for the pittsburgh building and they have signed a number of new tenants. <hes> which include the veteran law firm anderson lebowitz data research approach <hes> and many other tenants including women's law project <hes> liederman law and envision. I care michaela. Michaela says that king penguin will continue to invest in for twenty eight and four twenty nine forbes avenue respectively known as the pittsburgh and the allegheny building as well as the center city tower hour at six fifty smithfield street in pittsburgh this summer approximately one hundred miami university hamilton students will move to the third in dayton project checked a mixed use redevelopment in downtown hamilton ohio the property owner industrial realty group will renovate three floors of one of the former ohio casualty z. buildings into apartments and a portion of the used for international student housing i r. g. will transform the sixth floor into twenty-six one bedroom apartments the seventh seventh floor into sixteen two bedroom apartments and the eighth floor into four two bedroom units and twenty two one bedroom units pre leasing will begin for market rate apartments. This full lauren chrome reina's industrial realty groups national director of marketing. We're incredibly excited about the momentum at third in dayton in the last year. Ir orgy has made so much progress in creating marketable apartments and this sense of community which we know will drive the further development onsite on site. We've had a great partner in the city of hamilton and just feels like the times right. These efforts are in line with an announcement from senator bill holy republican from liberty township ohio coli announced a new workforce education partnership for the university students who participate in the collaborative program will work parttime for participating companies and in return. They'll get a wage tuition and supportive. Housing here are some other headlines from around the world world. Mac kelly says its shareholders voted to elect four dissident nominees proposed by investment firm bow street. Seven nominees for the company were re elected elected to the board. It's regarded as rebuke of the company by shareholders and met kelly says it will set up a committee to evaluate strategic alternatives including a potential sale d._s._m. Group says it has acquired jefferson hill apartments in the thriving metro west region of greater boston the properties on twenty seven acres and consists of four six story apartment buildings and a clubhouse the unit mix includes on hundred and eighty studios five hundred fifty one one bedrooms and two hundred eighty nine two bedrooms jefferson hills is located on route nine a major east west thoroughfare running from downtown boston to the western border of new york state ten federal and mainstay global alert learn announcing an alliance to raise capital for ten federal's thirty million dollars self storage equity offering from china and us-based investors ten federal's pioneered a system system to acquire and convert self storage properties to automated unmanned operations using a proprietary technology platform mainstay globals and investment firm that provides provides marketing solutions for direct foreign investment through offices in china and the u._s. Shopping center owner preet named burlington is the lead replacement for or sears at the dartmouth mall in north dartmouth massachusetts predisposes in discussions with other large format retailers to complement burlington. You're listening to the sierra news hour from st broadcast news dot com surrounded by an amazing collection of artifacts and memorabilia at at the newark museum supporters of smart redevelopment strategies recognized some of the leading development projects in new jersey with smart growth growth awards from new jersey future. This year was the seventeenth year. New jersey futures presented awards for smart growth. Your organization is nonprofit and nonpartisan promoting sensible growth redevelopment and infrastructure investments to foster vibrant cities and towns protect natural lands and waterways ways enhanced transportation choices provide access to safe affordable and aging friendly neighborhoods and fuel a strong economy. Tell i wouldn't tell me about the events smart growth awards. What's the purpose of it. Why does new jersey future. Do it sure this era eighteen th year doing smart growth awards and we love the event because it does a a couple of things for us one is it showcases some of the best projects and plans around the state so people get to look at these models look at examples of what really good plans and projects look glac but we also love the event because it brings all the people who are doing groundbreaking work together so they get to meet each other. They get to talk to each other inspire each other and it's a great opportunity for people to just take their work to the next level. Peter casa back is the executive director of new jersey future. What are some of the important takeaways for policy-makers and legislators developers for from from the award by the one we always lead with his smart growth is economic growth and and so the more that we do downtown development mixed use development mixed income housing more we mix all of these things we create walkable vibrant places. It helps our economy on a me it helps our environment and it helps our our communities and the ad has to be done intentionally. No it's not a haphazard process. How do you get people to cooperate and collaborate screening process well. I think we've been very successful so far and that's why we have such great projects that you see around new jersey right. Now is people are seeing the benefits of this kind kind of development so the more that you have projects that do mix uses that create walkable places they start to leverage each other and as they leverage each other property the values go up you get more economic development taking place and you create places that more people want to come and visit what are some of the best projects in your mind. What are the things that are most successful in redeveloping and reimagining new jersey. You know we really like to talk about mixed use these projects in downtown and so a project where you take an old historic building like the hanes building for instance where it's a complete renovation of a of a beautiful landmark and mark building in the downtown that brings a whole sense of new life to that area that's one category and other categories how we use our open spaces differently this year we're giving an award to the lawrence hopewell bike trail and it's how do we use our open spaces connect people and link people together get people out into the into our open spaces and get them to appreciate the more so it's those kinds of categories and then one of my favorites is how do we use <hes> green infrastructure better which is how do we use natural systems to capture stormwater and more and more projects plans are figuring out how they can do that so they can capture that storm water on site site and that doesn't just isn't just good for the environment and for preventing flooding but it also creates these great natural amenities like rain gardens and green in roofs. What are the technologies or techniques that you think are going to be important in the future. Why think the green infrastructure. You're how we manage. Storm water is going to be one of the most important ways that we move forward is just because we're in a built up. Environment doesn't mean that we can't use natural systems to manage our storm water better and create more green space in our urban areas. I think we're gonna see more density. I think people are now starting to understand that density drives economic development and it creates the excitement and the vibrancy of a place that you need and so i think we're going to start to see more density density taking place and more people willing to <hes> build higher and create more dense <hes> communities peter reinhard is is the director of the kislyak real estate institute at new jersey's monmouth university he chairs the new jersey future board of trustees new jersey future smart growth awards. What does it mean what's the value for the real estate community while the the new jersey future smart growth awards we established many years ago <hes> kind of to be a little something different in recognize development and redevelopment projects for what they do an overall community not just for the prophets it's or whatever but they they <hes> truly recognize benefits to the community and we have a panel of independent judges every year who truly are independent and evaluate them and it's really grown prestige. I mean we'll have. I don't know three or four hundred people here tonight and it's become one of those. One of our two must be at events. It's this one and the redevelopment forum in march. I think this year we had nine hundred people at that. Certain features really establish itself in the space. So what's the smartest growth that new maturity couldn't do it would be <hes> it would be a good question steve. I would say it's growth that is in the right place and at the right density the city that incorporates all the things that we need affordable housing good quality open space <hes> green infrastructure environmentally sensitive but at the same time fits the needs for the communities and the and the market. What should the state be doing that. It's not doing to encourage smarter undergrowth well. We really don't have a policy at all right now. We have mount laurel doctrine which is sort of just chaos. <hes> the state planning planning efforts have been largely abandoned since superstorm sandy that was house almost seven years ago and we we really needed more coordinated thoughtful approach to getting things done rather than project-by-project regulation by regulation and you know who gets mixed allowed us noise we we really don't have a good plan coordinated effort from the top projects that one smart growth awards range from youth center in plainfield old to a walking and cycling trail connecting lawrence hopewell townships in the western part of central new jersey. There were two awards for art deco office. This buildings that were restored one in newark called the walker house which is being re purpose to provide mixed income housing in the heart of downtown newark. The other was is a vacant but i- conic bank building in passaic. That's being turned into an office in retail anchor. That's expected to revitalize passaic urban downtown passaic mayor hector laura. It's really a strong message to investors at the city of sake is a welcoming place to come into business with this particular investment cemented. Was it really revitalized the heart of our city right on main avenue. Obviously it was a building that had the lights turned off for decades and the message that was one that we didn't want going around our city but the very day that the lights were non. We felt the excitement and the energy come back into our city inside. We have an amazing fusion asian restaurant of asian food and latin food. We have the board of education on the top floors. We are blink gym fitness center right in the middle just the fact that people get to see the lights on on the tallest building of the city of say in maine avenue considering some of the other investments that are coming into our city including this new bus terminal no with four million dollars coming from the state in the county state of the art bus terminal as we continue to encourage more urban transit hub development and looked to capitalize relies on new opportunities with more incentives in offering tax incentives to developers. We're seeing the turnaround in the city. We have a wonderful relationship with investors strong council also <hes> really wonderful leaders in our community and we're very excited about this and we're very excited about the hanini their investment the state investment architects designers it really is a team effort. You don't turn around by simply working alone. You have to work collaboratively with the thought leaders of your community and <hes> the state new jersey future also recognized mercer county community college which reactivated long-dormant buildings in an overlooked part of trenton the the state capital with amenities that serve both students and city residents. John ping wang is president of mercer county community college. Tell me a little bit about the award jordan and what the school did and why it matters to your students in your community so the mercer county community college james kearney campus this is located in downtown capital city of trenton so i was students very much from the local trenton and we are a community resource center so it matters for us to to revitalize trenton as capital city and our all students and our residents and faculty and staff with very susastro about ring in the residence up bring bring trenton back to its glory so we're very delighted to have won this award because as part of the revitalization of our our capital city what were some of the challenges you faced in redesigning and redeveloping the campus. We have been faced with some doubts they. They wonder if we don't make any difference because there are so many needs for development in trenton but we believe it's one block at the time so we do our part and we hope to expire this join us and has proven to be working. More people are joining us. One word that had special interest for me was ironside newark edison properties transformed a former warehouse building along newark's central traffic artery mccarter highway into a modern office complex that houses a new headquarters for eminem wrigley the candy company and it links to mulberry he comments and urban park being created adjacent to the building that connects the workplace based to the prudential center ice hockey arena where the new jersey devils hockey team team makes its home. I worked in newark about forty years ago. When this building ironside newark house a printing company called the kenny press in my job as a commuter relations ends representative for conrail which at the time operated new jersey transit trains we had to walk down mccarter highway to the kenyan press building to bring the master copies of the letters we would send to commuters we called them seat notices and kenny presswood print about seventy thousand of them and make sure that they got out to the train yards for distribution on on the trains during the rush hour peice qualley serena works for edison properties and he talked about finding out how incredibly durable the construction of that building was because because of the kennedy press printing operation it was located in it perkins eastman and the rest of the consultants were excellent in designing the product because as with any gut renovation project very very difficult as opposed to a ground up where you create your own challenges this there were hidden challenges is that we didn't see until we were into it so <hes> credit to edison properties my employer to taking on that challenge to take one hundred and ten year old building and converted to what it is today. Hey <hes> i can tell you that edison's been in newark for over sixty years <hes> it believes in newark always has and this product this project is an example example of their commitment to the city and the deal that we made with mars wrigley confectionary to come in just shows the momentum. The city has in the direction that it's moving moving so together with the mayor edison the design team and everyone involved with the project. It's really a testament to where <hes> where the city can go if we put the heads together now. I'm old enough to remember when that building house to kenny press back in the seventies. I worked in newark and we use kenny press <hes>. What surprises did you find when you got into the print plant. There was anything yeah i mean. The structure that the the sheer structure of the of the building supported train cars that actually came in unloaded unloaded their cargo so the live low-capacity on the floor was tremendous in a typical offer an office environment. You'll see fifty pounds per square foot live load this building you had thousand pound per square foot live load so we removed large sections of the floor large section of the steel beams and concrete that were just build massively <hes> we cut in almost five hundred openings to create natural light and air into the building that wasn't there in a cast in place concrete facade which is very atypical typically. It's masonry brick <hes> so it was just very very tremendous and getting into it and understanding how to demolish segments sure them and then create a a new structure element to support what we wanted to do was very challenging howard the tenants taking to the new building of the enjoying the environment environment yeah so edison just moved into the building on monday. We are moving our headquarters. We moved our headquarters into the building mars confectionery. That's that's moving into. They couldn't be happier the atrium the front lobby is just tremendous. It's three levels. I they've got their own private terrace on the seventh floor that oversees the new york city skyline couldn't be happier. New jersey future also recognized wendy kelman new chairwoman and ceo of the hugo new corporation she she got the organizations kerry edwards leadership award. It's named for a former new jersey state attorney general who played a key role in smart development efforts in the state news company company is redeveloping carney point of former shipbuilding complex. They're turning the sprawling industrial site into a live work. Play environment new spoke about the properties these transformation. This is a site that was built in nineteen seventeen in the midst of world war one and was built for war the war effort at the time. It's most productive period was in world war. Two where there were thirty five thousand people working being there to fight help fight the war effort in the maritime sector and it was the one of the most productive sites in this country <music> actually in the world and that they were launching ship every five days. I say that because it's very important that we remember that we remember that history and that we understand the economic engine that it once was and that we try to recreate that economic engine for the next century and that's what we're trying to do bryn away that is much more inclusive that doesn't leave people behind that we can share that prosperity with others because that's the only way we are going to become truly resilient to face those challenges challenges that are in front of us. You can read about all the new jersey future smart growth award winners and see videos about each project at nj a future dot o._r._g. Investors are still cautiously optimistic about the seniors housing market. Even after the sector experienced a slight dip and transaction volume twenty eighteen jones lang lasalle. 's spring twenty nine teen seniors housing survey included more than a thousand potential respondents who specialize in the senior housing and care space that survey points to a generally positive sentiment around the market notes that while transaction volume total just over thirteen billion dollars in two thousand eighteen the number of transactions was up forty one percent year-over-year brian chandler is the managing director of jails valuation and advisory services so brian. You have a cautiously optimistic outlook in the senior senior survey. There was a dip in transaction volume last year. What's happening this year. That makes investors more optimistic. What's going on. Steve is <hes> from an optimistic standpoint. <hes> some investors that we've surveyed are really looking into you <hes> or have greater interest into the independent and assisted living continuing care facilities and they're the most desirable arbel subsectors right now and what what is it about those sectors that make them more attractive than the other kinds of retirement homes or retirement communities communities. It's again it goes back to the <hes> continuum of care and <hes> aging in place for some of these as residents <hes> a lot of the adult children who who make <hes> some of these decisions <hes> want their parents in facilities like this <hes> so they can see edge in age in place properly are are there any particular things that you think investors. There's are looking for when they <hes> move in that direction is it is just that they they see seniors moving into those particular kinds of facilities at a greater rate eight or or what is driving the interest <hes> the interest is it's operationally based investors are looking for location station good location strong demographics of very good operator. <hes> who meet all the staffing needs <hes> in these properties <hes>. They're also looking when you go back into location. They're looking for <hes> high barrier to entry <hes> locations <hes> and again going back to the the strong demographics as well so in the survey <hes> use say that the respondents believe there's going to be a modest increase in value for seniors only apartments. That's a little bit more than half fifty. Seven point one percent forty point four percent say they see independent living assisted living in memory care facilities making modest gains and the respondents say that they expect a modest decrease in value for skilled nursing facilities abilities. Why is it that skilled. Nursing facilities are declining in value or at least that the respondents to your survey think they will decline in value well. They're probably go there. Dig declining in value because of the <hes> operationally intense <hes> skilled nursing <hes> atmosphere that is in these properties <hes> in terms of the of the care and <hes>. There's also a lot of labor intense <hes> issues that are happening across the still nursing a platform that makes him of these investors think that the values could <hes> decrease <hes> and when you talk about the the high barrier to entry markets what are the markets that you see as most attractive differ these kinds of facilities <hes> where they located. What we're seeing is <hes> based on our analysis in the work that that we've done we we've seen a lot in a new development <hes> in california <hes> obviously on the west coast there and in ashikaga metro area <hes>. There's a lot of new development in atlanta but that that area is is a little bit saturated <hes> also so some newer developments in the phoenix area <hes> that is very sustainable based on the supply and demand characteristics characteristics there and some areas of florida's what is well <hes> <hes>. There's there's been over development in some areas of texas obviously in <hes> san antonio in houston in parts of dallas fort worth metro <hes> but what we're seeing a lot of interest in really in california pacific north west <hes> denver <hes> outside denver as well and what are the kinds. It's of investors that you see looking at these properties. Is there any particular type of organization. That's making the investments as it private investors as it reads who who who who are the ones who are going after these kinds of properties it's common combination of of private equity <hes> and and reached an institutional investors as well. Is there any particular characteristics you are recommending. They look for in these properties as they make their their investment decisions. Yeah i would definitely look at the physical plant <hes> the quality of construction <hes> the the the operator a again. Go back to the point where <hes> operators is is very key for these assets <hes>. If you've got a good operator operator <hes> things should go pretty smoothly in very good a well built <hes> community <hes> you know again you got to look at the competition in the market as well but if you have a good operator they they know who the competent competition is and how well they can <hes> improve in any operations that they that they need <hes> to help bring more return and to <hes> these investments brian chandler managing director of j._o._l.'s valuation and advisory services brian. Thanks for joining us. You're listening in into the c._r._m. News hour. I'm steve lebedko with new developments. Redevelopments and construction construction projects underway philadelphia's experiencing an exciting period of growth as perceptions of center cities boundaries change the center said he proprietors association a local nonprofit serving philadelphia businesses with connections insight resources and community through programs programs and events hosts a periodic panel focusing on real estate development the c._c._p._a.'s latest meet the developers panel featured comments by five five of the city's most innovative developers builders architects and engineers della clark is the president of the enterprise centre which works with small and mid-size businesses creating jobs in low income communities throughout philadelphia. She's focused on bringing real estate development to west philadelphia. One of the city's these economically disadvantaged neighborhoods where positive local development is being stymied by out of town speculators buying up properties that could be redeveloped right now. I'm very excited about west philadelphia where the enterprise has been located about thirty years at forty-six market and and so one of the projects that we're taking on here's to revitalize the corners are along market street under a dresser. University is the nowak metro finance committee. You might remember jeremy no way and there's a gentleman there by the name of bruce castle who's with the brooklyn institute as he did a lot of work. He's done a lot of work around corners honors in neighborhoods and community as we're following his roadmap to develop the corners on our market street of and try to revitalize and bring them back so we're very excited about westwood of the only thing that we see this taking place is that there are a lot of new york real estate brokers that are coming into west west philadelphia and acquiring property and are sitting on it and so they're standing in the way of our progress so that's one thing that is a challenge for us. Another challenge for filadelfia is construction costs. Here's architect antonio feel silva from c._t._o. Architecture you know we have the same nearly sank assertion costs in some areas in washington in new york but we're between a rock and a hard place and we don't have the kind of rent structures that they have and that's the ongoing challenge and feel silva thinks that commercial real estate industry needs to modernize its use of technology industry really has to be modernized and some people think oh that means some wrong. It's gonna go winder build the thing by itself and sawn you know and i don't think it's really there what wh- -tunities that are screaming are really how buildings are procured how parnerships them and how you can invest smartly on how you purchase things on how you take the long view of things i think in that is the area that really how screaming for for different fresh approaches looking at economic trends for the market serena rose senior vice president of development and four post brothers thinks the next five years will mean more construction of multifamily housing. I can speak to the aspect of our our apartment's market is still underserved so we're gonna be building. The next five years in a row must lay hopefully that our community involvement we'll <hes> uh-huh we'll have some impact on trends to improve the schools under those kind of things and give these millennials choices as they grow or their families <hes> certainly were xining apartments to accept the modern lifestyle and how how families live today we're confident in our product and how it'd be received and that will be absorbed in the market as far as downturn looking at five years jason tucker vice president of acquisitions for the goldenberg group thinks the city sustained growth in the past twenty years as good but the challenge for the industry is to get that development started in neighborhoods that have not been targets of development up to now on a micro level. I think it's evident if you look at the cranes and everything that there's a lot of activity in the city but i'll tell you that the rains are always a lagging indicator of the economy on and i think that if you wanna talk about growth the city has had assam recently-sustained broken. It's fantastic. It's been as high as it's been twenty years the question we should all be asking ourselves is how are we going to expand and sustain that grow over the next swingers and so i think that we're the growth opportunities are for me would be in all of the parts of the city that haven't been part of that wider sustained group. How do you expand van into these buffer. Neighborhoods expanded communities where the city remains in deep deep poverty. Obviously we've gotten the core running the now. It's time to get the blood flowing in the traumatize so that's where the opportunities are depending upon scale and your attitude attitude attitude and appetite for little bits. You can purchase a complete audio podcast of the c._c._p._a. Meet the developers panel at st broadcast news dot com just click on the menu pick for e commerce for more information asian about the center said he proprietors association visit center city proprietors dot o._r._g. Lisa's czar langa is a partner at steptoe steptoe. The new york law firm where she represents public and private companies on federal tax issues. She's also an expert on the opportunities zone program in in last week's program lisa gave us an overview of the opportunities owned program in this second part of the conversation. Lisa talks about some of the requirements that that investors need to meet before they can qualify for establishing an opportunities fund. <hes> are there other requirements that investors or sponsors sponsors of opportunity funds need to meet before they can qualify for the o._c. Benefits i would say that <hes> one of the things that is apparently rules is there's some pretty tight. Timeframe has to be satisfied to make investments in the opportunity fund and for the fun to make his avoid capital title in the opportunities zone <hes> so investors are going to have to sort of pick their projects smartly. They're gonna have to make sure that they've got viable. Projects lined up before making their initial investments <hes> so just to kind of summarize these these timeframes and sort of realize how tight they can become investors generally have <hes> hundred and eighty days from the time they recognize a capital gain to make their contributions to the opportunity fund and then the the opportunity fund has a limited amount of time to invest what it receives from the investors into off property whether it's either directly held property or <hes> a lower tier ah <hes> entity so the opportunity to hold at least ninety percent of its assets an opportunity own property and that's going to be measured twice a year at at the end of six months and at the end of the taxable year and so <hes> many people were concerned that if they had made the investment into the opportunity fund and shortly before the six month shortly before the year end that they would not have sufficient time to to deploy capital and the proposed regulations provided some relief relief by saying that the opportunity fund could elect to disregard cash or cash equivalents or short term debt that it holds for six months so it can receive a <hes> an fusion of capital it can basically ignore that if it continues towards cash until you know six months to give it additional time to deploy that <hes> basically gives them a minimum of six months and they'll have effectively till the next measurement date disatisfied ninety percent test so it could give them up to twelve months to play that capital so for example. If the opportunity fund receives money from the from a investor in august of twenty nineteen the fund can ignore the cash for six months until february of twenty twenty so that would mean that when it has its testing on december thirty first of twenty nine teen gene can ignore that cash <hes> and it would not necessarily have to meet the ninety percent test until the next measurement date of june thirty twenty twenty money so if the opportunity fund plans to substantially improve property. There's another time period in which it has chewy accomplish that the statute in the regulations provide a safe harbor period of thirty months to achieve substantial <hes> improvement which is basically the doubling of cost basis <hes> so the property doesn't have to be done in thirty months just have to double the basis and thirty months and then if the opportunity to invest capital in the lower here on business the odds business has the <hes> an additional thirty one month period. It's known as the working capital safe harbor to deploy its capital now. If the lower is businesses deploying its capital by making substantial improvements to property that thirty one month period and the thirty month they've harbor will run concurrently now. They're the rings do provide for an extension of the thirty one month safe harbor period if the delays are caused by government permitting so if the if the odds business applies for the permit and the government waiting on the government issue the permit delay those delays can be added a thirty one month period and and then the other thing to note is that there's a new thirty one month period for each infusion of capital which is which can be very helpful <hes> but the one thing to note here here is the proposed regulations appeared require that at the end of the first thirty one month period that the business has to be engaged in an active trader business. That's capable wolf generating revenue so it's this is still a really ambitious timeline thirty. One months sounds like a long time but <hes> you know i'm hearing a lot of clients. Say <hes> you know our projects are gonna take much longer than thirty one months <hes> and so we're trying to recommend to the clients that if they <hes> you know that they manage their cash infusions so they have three months to deploy it but at the end of the first thirty one month period they should try to do the the project in phases that there are at least maybe starting to generate leasing income <hes> at the end of the first three one month period now opportunity funds will are going to want to control the timing of capital hall to ensure that they can meet these investment timelines <hes> but the outside investors are going to need to make their coughing investments within the one hundred eighty day investment asmat window and that's gonna create a little bit of attention between the fund and the investors <hes> which we've been trying to resolving in the fund documentation for example the opportunity funding exact capital calls but then provide the investor their right to put the investment to the opportunity fund within a certain number days before the two hundred eight period expires another consideration for investors not only the timing of it is the quality of the investment <hes> although the tax benefits are significant for opportunity funds investors are still looking for return on their investments and we've seen you know there's more than eight thousand seven hundred opportunities around the country and in the in the u._s. possessions <hes> and some are <hes> less distrust and others <hes> and so you're starting to see capital flow into those you know the nicer opportunities owns <music> <hes> but the fact of the matter is the vast majority of the opportunity zones are in truly distressed areas and so they do present riskier investment opportunities <hes> i've been hearing i've been going to <hes> you know programs in panels where there's a collection of of local officials entrepreneurs and <hes> advisers and you know real estate developers and a lot of what i'm hearing is that the <hes> they really need to coordinate the operates at the local level in order to attract capital so for example local governments are starting to work with the developers burs and the entrepreneurs to effectively come up with a business plan that they can present to investors kind of on a united front to get capital flowing their way <hes> and that i think you're gonna see this. The more successful opportunities zones operate in that way. What are the anti-abuse additions and water companies. <hes> what what do companies need to know about them to keep from getting into trouble. The proposed regulations contain a very broad anti-abuse rule <hes> <hes> providing only that emma significant purpose of the transaction is to achieve a tax result. It's inconsistent with the purposes of section fourteen hundred zero dashed to which is the opportunities statue then the i._r._s. Can recast the transaction and doesn't provide anything else. There's no examples. There's no specifics on what kinds the things would violate the purpose <hes> and i think a lot of people fear that the rule could have a chilling effect on transactions and i think you're going to see a lot of the comments so the the government requested there be more specificity around <hes> what the anti-abuse rules provide <hes> the preamble to the proposed ranks does request quite comments on on whether there should be additional details or examples and things like that and so so the hope is that there will be more more meat on those bones <hes> <hes> come to propose come the final rags <hes> the proposed regulations do identify a couple of <hes> uses of land dan as potentially abusive in a couple of places <hes> the government seems pretty concerned about land banking and there's a couple of shot across the bow in the rags that kind you've got to that you don't bring sample the preamble notes that the use of land and a traitor business such as an agricultural business <hes> without the investment of any new cabinet on the land could violate the anti-abuse rules and there's an additional area where the the proposed rigs have a rule that says that land does not need to meet the requirements armaments for original use or substantial improvement <hes> but then they contain this interesting effective date rule that says that you can't rely on the proposed rule if the land is unimproved or minimally improved and the opportunity fund or is business purchases the land with the expectation that they're not going to improve the lamb by more than insubstantial amount within thirty months of the date of purchase <hes> i think when you work through all those double triple negative <hes> you get a combination of rules that basically says land doesn't have to be substantially improved but it has to be improved by more than is substantial amount <hes> and and so i think i think all of these jobs across abou- are intended to you know to to protect against land banking but hopefully the final regulations. We'll see a little bit more. <hes> got clarity around that now. Are there any dates that people are watching for for additional clarification of the rules or are we pretty much at a point where the people just have to go ahead and start doing stuff and the rules may evolve over time you mean as far as the timing of the rule yeah yeah i mean are are they is the government expected to amplify or change what it's put out so far <hes> or are people basically basically free to move around the opportunities own world at this point <hes> given all of the caveats you've described <hes> or is the government going to be the adding to the clarification that it's already provided i think in the little bit of both the government plans to finalise the propose rigs it puts out out and it's going to respond to comment in doing so so i think you'll see some changes from the proposed to the final rags to provide more clarity around some of the areas that are confusing <hes> <hes> in the meantime the government has given tax payers the ability to rely on the proposed regulations and so they anticipate that that deals are going to move forward in reliance on these propose regulations and they kind of have to because there's a limited window of opportunity here <hes> if if you wanna take full advantage of of the five year the seven year tenure step up then you need to invest by the end of this year to get all of that <hes> unless congress steps in in and changes changes the dates or extended by a period of time and so we're starting to see more deals move forward after the second set of proposed regulations ends was issued because it did provide a lot more clarity even though we expect you know we expect hopefully more clarity when the regulations nations are finalized. I should note also that the the reliance on number post regulations. There's one section that doesn't grant reliance and not is the exit <hes> the special rules for exiting funds and the reason why the government didn't give reliance on that piece of the proposed regulations is because because it's not effective for ten more years and so they didn't think they needed to <hes> but what we're seeing is a lot of investors are a little squirrelly and want to know what their exit strategy looks like now <hes> and so a lot of people are planning to comment to the government that they provide that reliance now <hes> not require investors to wait until final regulations or out great lisa. Thanks very much for taking the time to lay all this stuff out. <hes> obviously the opportunities -tunities zone investors and developers need to have their calendars at their fingertips and <hes> keep their legal and financial advisers close at hand. I think that's right. We'll be back in a minute shalom. This is rabbi richard address join us for our podcast series from jewish sacred aging entitled titled seekers of meeting will explore some of the issues and events that impact ourselves our families and our jewish world at large in light of the current revolution in aging the seekers acres of meaning podcast airs every friday morning at eight a._m. At jewish sacred aging dot com <music> today. You can't wait for the media to cover your company. You have to be the media. Take advantage of the power of audio and end video. It's the best way to showcase your expertise to prospective customers. Let the lubec in media companies handle the technical side. We're award winning audio uh-huh and video producers we can help you produce podcasts and video programs remotely or in our fully equipped studio in cherry hill visit being the media dot com for more information with patients today treating healthcare like shopping providers providers have to focus on branding and making their offices more convenient and accessible. A vison young's scott martin who earlier this year joined coming to philadelphia offices. A principal says growing competition means healthcare providers have to focus more on the patient experience than ever before. Martin specializes is in the medical office sector. He tells his healthcare clients. They should locate in buildings that make the patient experience as pleasant as possible. It's obviously done very differently than it was was a number of years ago yeah yeah you know so i was. I go back to forty eight years old. I was i grew up in the east side of cherry hill in south jersey and i was raised by my stepfather and my stepfather was a o._b._g._y._n. Fertility specialist and <hes> <hes> you know he had a as specialist. The was affiliated with a bunch of different hospitals throughout the region especially back in that day for tilleke specialists. It was were a little bit of an anomaly <hes> but you know he had an office in executive news which is off route seventy which <hes> most people who lived in south jersey for years have no idea where that is <hes> and then not only that when you get into complex like that you have. It's very difficult to find people so it's just a very different way of thinking. There was no branding no sign age. That's the way doctors offices offices were done and lawyers as well absolutely absolutely and it's it's you know it's if you were a good doc or you know. If you're defamation inspired people were just gonna find you and hear about you and if you know days before g._p._s. and cell phones and you know so they found her <hes> but you know very different today. <hes> you know you mentioned along route seventy branding the penn medicine deal. I was involved with several years ago <hes> in the former sim side and the and the penn cardiology building. I saw <hes> right on seventies well which is now owned by a pain management. Benjamin crew called relieve us so they obviously one of the things that was very attractive to that being you know having essentially retail branding and retail signed just to drive by and a lot of people may not understand what releases but you know with technology and the internet and google and you know just it makes much easier easier the <hes> kinda find people in get your branding out there and you know one of my longtime clients who i've been <hes> worked with for many years probably ten plus years. <hes> is the rothman institute and you know that was kind of <hes> dick rothman who died this past year. You know that was kind of his his <hes> <hes> model more than anything else in that you know not make everyone one come into the city to get their healthcare services. You know especially in his case where the p._t._a. But bringing out to the suburbs and you know make you're that you have the proper branding proper sign it and you know obviously it's very important that you want your patients to be able to find you but you you know they almost want their non patients to be able to find them so that when you drive by for example a rothmans toot office we expect the same finishes issues expect the same quality hair the same service <hes> you know and and mike west is the c._e._o. Of often <hes> is really as well as michael sharon the essentially the senior vice president there. You know but especially really mike west that was you know kind of idea that you know when he got there. <hes> let's let's create our name spend money on marketing and branding and <hes> so the reason why wii here about for example often. It's a tutor you know everything they're doing and where they are and they're branding everywhere. So how does this the way you as a commercial real estate professional position the properties or look for properties for investors <hes> <hes> who might be looking for this kind of <hes> this kind of property would it well. You also like you know in the in the you know call it. Call it ten plus years ago or even longer than that. I was much more concerned with the footprint of the building you know and and can it really accommodate if it's a great building and it you know it's one or two streets off the main street then it's okay. It's a great building. It's almost the the opposite you know when i'm in many cases not with everyone but with in many cases when i'm out there looking for building. It's you know there's a little bit tongue in cheek. It's almost like the building doesn't matter that much <hes> it does but you know if i have an opportunity to from representing someone one and you're and you're looking for a medical office building to open up a site whether it's something the least or something to purchase having big traffic counts and having giving the opportunity to promote your branding is really important <hes> more important than it ever has been. I feel <hes> and you know that's and that's really that's really evolved over the last few years. <hes> you know one of the attractive things about a lot lot of retail sites also as they generally have larger parking ratios so you know good healthier parking is typically got five for one thousand <hes> square foot ratio and in many cases when you're going to more retail focused sites the ratios who's gonna be at least that it's not if not larger would you still had to put in a parking deck over at the same site they did and and <hes> and that was really more. I think township based <hes> i think the township really pushed that more than anything <hes> <hes> <hes> but <hes> yeah i mean it just it. It's there was a lot of things i won't believe with all the details everything think that went behind getting that approved and done and nor was i involved in a lot of that. That was really kinda more fred my former former company <hes> was involved mostly in that he was kinda toy person from the the real estate side <hes> but yeah i mean it's it's you know put parking's very important. You know same thing with jefferson. Slash kennedy is doing right now. In seoul flash washington township entre new jersey and they just finished adding a. I think it's a seven story eight hundred car parking lot expansion because they needed the parking as well sixty new private patient rooms there so if you're <hes> advising a client <hes> what are the things you telling them to look for in in a property like this yeah. I just you know when i look at buildings that just you know when i'm driving by. If i'm searching for for buildings for someone i'm representing you know i've the one of the first things as i mentioned this kind of all ties together that are looking for you. Now is really the angles of what i'm gonna swear. I'm gonna see the building on the road you know and and and the and the traffic patterns letters and one day occur and <hes> you know. Is there an opportunity what what is the township light as it pertains. It's too branding insiders because certain towns are very you know very very strict on that. You know town like princeton. Worm working on deals right right. Now is is very strict on their side. It's the same thing with you. Know towns like bucks. Ca you know certain towns in bucks county like like new hope or or or new town <hes> but i'm always looking for you know something that is going to be highly visible <hes> <hes> <hes> you know that that potential patients and existing patients are going to say yes so. It's a it's basically more like retail today than ever before yeah yeah yeah. I would say i would say it. Is i mean it's it's <hes> but still i don't think most people with that way i think most people are kind <hes> used to the old system and you know and and it's might be a little bit complicated to find your doctor to find services but you know once you've had an experience of kind of going to war of a retail focused site that has retail branding. I mean it's so much easier to kill a few birds with one stone <hes> and it's not the convenience of having it <hes> you know in in retail oriented oriented locations with retail branding just it's it's convenient as well which kind of drives a lotta healthcare scott morton is a principal in the philadelphia office office of ableson young scott. Thanks for taking the time appreciate it absolutely and that'll wrap things up for this edition of the c._r._e. News hour you can send your comments suggestions story ideas to steve at st broadcast news dot com where you can leave an audio comment for us using the voicemail icon on the homepage at st broadcast news dot com and we tape this program in studio a at st broadcast news in cherry hill new new jersey join us again for the next episode of the c. R. e. news our next friday eight a._m. Eastern time at st broadcast news dot com or wherever you get your pod guests. This is steve abedin. We'll see you out there on the net. Take good care.

new jersey new york philadelphia brian chandler partner newark managing director pittsburgh lisa scott martin cherry hill twenty twenty attorney newark steve germany
Fathers Day Reflection

Life in HD

21:37 min | 11 months ago

Fathers Day Reflection

"Father's Day the day when Dad's all around the world are celebrated for well being dad's for fulfilling the responsibility of helping to mould young lives. It's a time when you'll hear friends. Family members hell. Even your own kids exclaimed, best dead ever welcome to life in HD personal growth podcast that shines a spotlight on how we live our lives. I'm Joe Lee. Researchers are learning more about what makes a good dad how to be a good dad every day so far they know that kids who grow up with present engaged data less likely to drop out of school or wind up in jail, compared to children with absent fathers and no other male caretakers or role models. When kids have close relationships with father figures, they're less likely to have sex at a young age tend to avoid other high risk behaviors. They're more. More likely to have high paying jobs and healthy stable relationships when they grow up when fathers are actively involved with their children, children do better. This is according to poll a motto, a sociologist who studies parent-child relationships at Pennsylvania State University. He says research suggests that fathers are important for a child's development. It's a big job and thank goodness for all the surrogates out there like my uncle's Mike and skip. They play important roles and filling in the gaps. Humans are imperfect. Make mistakes all the time in every aspect of lives including fatherhood. It's the nature of who we are, so it's no great revelation that many of us DADS despite our best intentions get things wrong. Father's Day is a day of honoring fatherhood and paternal bonds as well as the influence of fathers in society. It isn't a competition to determine the best dad, or at least it should. For me it's a time of reflection. What kind of debt am I? What kind of dad do I hope to be? How can I improve my relationship with my children? I think you're wonderful father. You're an excellent father, the best of the best and now I am not sugar coating well, if I reflect on who I am today Jim. I'm pretty happy. Person, an excellent, Wonderful Childhood and You were definitely you were involved in all the fun parts. That's my eldest daughter Imani. She's twenty eight and we call her big city. How would you grade me as a dead? Grade you? I'd give you an a plus plus plus plus. Because you're always there for me. And I know you love me unconditionally and. Yeah, you've just. You've just been a great daddy I. Love You and I couldn't ask for a better daddy, and that's the bub, my baby girl. She's twenty I. Don't doubt that my girls love and respect me, but like all dad's. I'm not perfect who we are as men at the time we have. Our children has a direct impact on the developing personality of our kids. You know actually in my one of my education classes of and like one of my textbooks I was reading about how. Different, even siblings off of like just a few years apart how different their lives can be and their surroundings, and what makes them up? And I definitely think that the stages that our family was in when I was born, and when I was at certain stages versus a money definitely had an impact on me in addition to you know my surroundings like me and my Monte going to like different type of elementary school and living in like a different type of environment during her formative years versus me so obviously. It wasn't just you guys just where you were in particular, but you know it. It was all of it I had a very specific vision of how I wanted to raise my children. My involvement was very intentional. I read every book I could get my hands on books on caring for infants books on fathering, young girls books on fathering. Black Children I was hell bent on getting it right, but I'm human full of flaws and prone to mistakes, and for sure mistakes were made one of the things that I had a envisioned for. My first child when you were born, so you were born at a time at the height of my. Black consciousness, I was glad to say and black power and I. Leave and I had this vision of my first child or my child. Being. Extremely conscious! And fighting for. Justice and Equality all that good stuff do do. Any of that into action throughout your life, but that was the vision. WAS THAT UNNECESSARY PRESSURE? Does that did that help create? Any part of your identity, certainly certainly to help create. A big part of my identity When people ask me how in feeling these days about everything that's going on Unfortunately, I have to tell them. That I'm not surprised. It's just something that I've been living with my entire life and I. Sight you as my father, who, at an early age? perhaps a little heavy handed at times would let me know that you know, the white man white people, some of my earliest memories for that They were bad. I would go around repeating that. And then you and mom realized okay. That's A. That's a bit too on the nose lose. This is not what we want to teach her. We don't want to teach her that. I think what was it I told emily? You can't play with US 'cause. You're white. I, think that was the tipping point. That was that was one of the most embarrassing moments. So in that regard I appreciate everything you had to teach me and so I also understood the importance of having a diverse group of friends which I did. at the time I understood about my own blackness, even know it was constantly questioned because of my complexion but I think you did a good job to ensure that I knew who I was from day one. That kept it into perspective for me my entire life. The injustices as well Not that many. Many things have happened to me personally but I saw a large. and it certainly emerged more in high school. Molina move to a district that was predominantly white, and then we had the first election of Obama. In Oh eight. so. That was when a lot of stuff about racial tension was really starting to get into my face, and so whenever that happened, I would just kind of always remember you and mom and just think about everything that you told me. And it was just sort of dawning on me. That yet says all pretty real. and I just can't let go of who I am and I can't let these people get in my face. And tell me. you know what is right and what is wrong when it comes to race and You know where I fit. In the whole picture I don't know if we truly take stock in the kind of impression that we make on our kids. It's important that we recognize and correct are missteps, so you go into the bathroom and cooking at the same time. No cooking it was. Rough. That's my dad. Joe E Lee. He's eighty one years to take us to. Uh. Beaches recreational activity. And to me. It was the world. Especially, if you have a meeting, several overcome i Saturday's with people. My other car memory. Is that I didn't I? I never do a man who were hard when his family and eighty one. My Dad is from the silent generation. Children of the Great Depression for them. Fatherhood had a different meaning in meant being a provider and came with all the pressures of taking care of the economic needs and providing safety insecurity for their families. They married and had children at a young age, a far different set of values my. Most, Casey real quick. and. Easy place with live them get out of his face when I'm living trying to get some sort of promotional. The inventor provider so. I always wanted to have a boy and I had two boys, so I was very lucky, but I'm very sad about it because they told. Things didn't work out I. IT seems like I'm only like maybe after like. Maybe I might have abandoned my voice, but I. I know I did the same time. It makes me feel that way sometimes. Is that your? Biggest regret father. Yeah and what's What's the thing you celebrate most as a father? What people crow and? The thing they wanted to be. My friend has memories when you. Really were inseparable. And if you, if he lives in trouble, he would come to rescue. The baby was. Over the seed, Astra and up and down at the saying when. We get. It was just never been A. Moment to happen. Is that was on your face? You. You just can't do pictures as you can't can't rely on any other way. At the same thing. But different, way. She fulfill her academic stuff human always. Wanted. Parent that I would hate to have been in one of those families where like they force their children to do things that they hate I think that probably would have created a lot of resentment in me definitely, if you force me to continue things, I didn't WanNa, do but on the other hand It probably would have been beneficial to have someone kind of pushing me to stick to something and not just give up every time. I felt like. I remember teaching you how to drive being A. Very tense. activity. Yeah, was it for you? yeah very Y so. well one just driving general me, you know I'm a very nervous anxious person and I I hate being behind the wheel I feel like there's much pressure, and all these things could go wrong so for me. It's just incredibly uncomfortable situation, and then I felt like. If I did something wrong, you know you could get you get over excited very easily I remember when we first started driving, you remember the first day we went out in your car and we pulled out the driveway, and I started like turning towards the mailbox you remember and you started yelling at me and I hit the brakes, and I listen to. You and I was like this isn't going to work. I mean did work eventually, but as we all know, it took me like three tries. We dads get things wrong all the time. What's what pops into your mind? When I'm when I say, tippy bear hunts honey. Oh, my Gosh! ooh! Triggered I love I couldn't get the word would, or should or was. There was some of those words whatever it was. tippy bear hunts for honey makes me think daddy's very impatient. He is not always the best hand on teacher. Sometimes, he loses his camper and screams. Then I cry, but then he apologizes immediately, and it's all good. That's the whole to be. Bear hunts for honey scenario, and then after that and like I might go to mommy. Maybe, the DAD is still fun. That's still fun, but mommy doesn't yell. So. What frustrates you about? Your father a lot of things. Resonate me that my father well a lot of things. I like about him I. also find very frustrating about him. Such as he's very tenacious, which can be great, but it can also be like okay, Daddy. It's time to move on. He's also very hot headed, and sometimes its timber can run away with him, but on the flip side I always know that. You know you have my best interests at heart and I like when you get passionate about something for me. There's this fantasy. I think that all fathers have about teaching their children how to drive and other rites of passage I. Don't it didn't the vision didn't happen for either of you? It was extremely frustrating. Teaching. Both of you to drive. Yeah I remember I also remember. Every time we come by this certain. Stop on our way home. I remember being in the back of the car when you were teaching money drive. You're going should. We would choose pulling up to the remember like the stop sign and you're like. Stop Sign of money. Slow down and she's like yeah. I got it. She wasn't really slowing down and remember young the stop. Sign and you're just both yelling at each other. which now looking back on? It was funny, but at the time it was kind of terrifying. Through conversations and modeling behavior father hopes to impart wisdom. He hopes to help shape his kids into well rounded individuals who make valuable contributions to society. We don't always know if lessons are being learned sometimes, it's good to check in if you had to If you had children of your own and they asked you what one thing stands out that your father. Imparted on you, what would that be? Well the first thing that came to mind, but I don't know if I would not something that I would blatantly communicate to my children, but I always had a a very deep respect and healthy fear of my parents growing up I, think that very important to have. especially when I see some relationships. that here's have parents. That might be a little bit more loose. I talked to them any kind of way, and it's just sort of weird. It just doesn't seem like there's a relationship with a ton of respect. They kind of their parents. You know like. They're their friends, and not mom and dad, just kind of something like that, and it always kept me out of trouble. More or less I didn't want to get in trouble. you know, I always really cared about what you guys start. I was wanted you to be proud of me and ever wanted to do anything to disappoint. And that was definitely something that I think you imparted very early on and stuck with me. throughout my life I. Don't know if that's something that you then turn around and tell your own kids like you brought. Respect me. That's just sort of something you have to do. But if there's something that I would tell the kids well like I said You were the Fun Dad doing all the fun stuff, I would just really want to get involved with them on that level. You know not Patronize. SORTA be a teacher, while also you know kind of just being somebody there that they can relate to as well even though I am the parent, honestly I think the biggest thing that both you and Mommy has taught me is just like a deep. True love of family. There's no one on this planet. I love more than my family and I couldn't ever see there being a situation where I wouldn't. Do you know anything for you? Guys? I'm and I think are certain situation of kind of being isolated from extended family, and it really just being like our core family. Just really solidify that for me, so if I had a family in the future I would want that. You know that through deep true love. and you know connection with family. I think that's so important. The Pride in working. Your children. Parlor there pad. Odin above the path you had pictured to them. The reasons that would return from work. Home was to see I had provided the right things for my kid and I. Love the happening sex out when I was with. Especially when you enrolling with there and I could give you guys a hook. Rolling. was difficult pay to go to bed. So used to taking for drive. Round the clock Edna. Follow MOMS feet. That I could put him in there. I mean bid you will never had with fiery. Always put a fired Fox. You would cry scream, Tommy love. But didn't you would be? Extremely happy like when you jumping up down that fit thinking Batman. And, then you hit you hit on a cement floor. Had An accident which is go? That was That was earth shattering to meet. And adrover by two hundred miles now hospital. Army ambulance to get this deep okay? Be Good Kid! Maybe not. GonNa hit her to. You know for once I'd welcome an honest approach from the greeting card companies enough of the Perfect Dad Cards and the best dad ever cards. There's a wide range of fathering in the world from shitty mediocre and from good to great. Let's get some calibration in obviously. I'm talking to you. Yes fathers play a critical role in their children's lives, and it's an awesome responsibility. I salute all the dads out there. No matter how hard we tried no matter how hard we pair, we're GONNA. Make mistakes. Some will be minor and others can be catastrophic if you let them. I, think every dad will second guess as parents as we all should. We should never stopped growing. There's always room to do better and be. We will have regrets big and small. What's important is what we do from there. Being able to completely. Being involved in your aromas. Cleaned up until you became twenty for twenty five twenty six years ago and this period between. A maternity you about eight or nine and. Every pay me when at time you got shot, but when Eric in the. Woods outside of a Cherry Hill. I just felt like you know if I had been here, you was me. Would this happen? All kinds of things you know the those are the only regrets. If. You weren't able to do the best you could possibly do. I can guarantee I can guarantee you this. Whether you were there or not? I would have got shot narrow I was I. was that adventurous and reckless as a child? You remember when I used to steal your your your hunting knife, and I would take it in the woods and try to because you at one time showed us how to throw the knife and stick it in the tree. And I was so fascinated with that. I would take your knife and go into the woods. And sitting in a tree and you would, you would have to come in. There happened to probably two or three times. You come into the. Would you find me and you would You'd have to take knife back, but not before showing me again how to stick it in the tree. I really I guess so like I can't remember that far. Left it out of every bay. Yeah I was when I did I. do remember having a skill for throw a knife and you got fascinated by where we went to picnic areas. Yeah I could have probably cut myself, but it was just It was way too way too much for their own good I have that we don't get. As much as I love you, but. I'm good with what I got. Yeah well we'll do better. Thanks for listening to life in HD I'm Joe. At Fall Asleep.

Dad Joe E Lee Imani US Pennsylvania State University Mike Jim Obama Astra emily Tommy love Molina Casey Woods Eric Cherry Hill Fox Rolling. Army
CRE News Hour 7/26/2019

Commercial Real Estate News Hour

55:30 min | 1 year ago

CRE News Hour 7/26/2019

"From the business desk at st broadcast news this is the c. arina news hour. I'm steve lubeck. It's friday july twenty sixth twenty nineteen in this week's edition of the sierra theory news hour. We'll go very deep into the tax implications of the federal opportunities zone program with tax lawyer michael sanders of blank rome. We'll talk to some chicago brokers about how east coast money is making its way into projects in the windy city. Learn about an israeli artificial intelligence companies these efforts to help the c._r._o. Industry analyze big data and kevin havens of design and delivery firm white and company will tell us about how joliet illinois redeveloped its downtown with an unusual project as the anchor a new courthouse and legal complex will be back with this week's news and headlines right after do these messages turn your podcasting passion into profits profits the book the business of podcasting describes the business side of podcasting including how to become a professional podcast. You'll learn about positioning in your clients expertise through podcasting to plus the best business models how to find clients and much more visit the business of podcasting dot com <music> today. You can't wait for the media to cover your company. You have to be the media. Take take advantage of the power of audio and video. It's the best way to showcase your expertise to prospective customers. Let the lubec in media companies handle the technical side god. We're award winning audio and video producers. We can help you produced podcasts and video programs remotely or in our fully equipped studio in cherry hill visit visit being the media dot com for more information and now let's get started with our are roundup of the stories making news and commercial real estate this week beauty company kiss products is purchase of four hundred seventy thousand square foot distribution russian building for sixty six million dollars from the rockefeller group in its joint venture partner p. c. c. p. It's at the rockefeller group logistic center in piscataway scott away new jersey the global beauty company will occupy the property this summer and kiss expect it will create more than two hundred fifty jobs in piscataway written has realty advisors visors arranged the twenty one point four million dollars sale of a student housing portfolio serving the students of lehigh university in bethlehem pennsylvania. The portfolio includes includes forty four properties totaling two hundred nineteen bedrooms and yes. They're all legally zoned and approved by the city of bethlehem. Lehigh university's had major expansions is planned for the next ten years including increasing enrollment and opening a college of health eastern union arranged financing for eighteen million dollars sale of a six hundred thousand square-foot magna international portfolio. It's a group of four automobile parts manufacturing facilities in multiple locations in iowa eastern union and delivered loans facilitating the sale of the properties by toronto based granite read america to bow pair real estate of elmsford new york. The buyer was facing the imminent expiration. One of capital gains tax benefits associated with a section ten thirty one exchange and the eastern union folks arranged the approval within a fast three and a half week period jaylo. L. closed a recent sale. It was nineteen shape and road of four building core plus light industrial portfolio totalling about four hundred twenty nine thousand square feet in the morris county community of montville township new jersey jail. L. marketed the property on behalf of a joint venture of campbell real estate partners and advanced realty not investors a partnership of coen asset management and intercontinental real estate corp purchased the property. I washington realty acquired five properties totaling eight hundred thousand square feet in the washington d._c. Metro area the purchase includes bradley shopping centre shops at fox chase gateway overlook only village center and and wheaton park shopping centre. Lincoln property company says it's finalized entitlements and special permitting for a new life sciences building three hundred third avenue. That's planned for route. One twenty eight in waltham massachusetts the projects featuring flexible and customized office and laboratory space. It's expected to be completed in twenty twenty one. It'll it'll have four stories of laboratory space and a public private partnership between real estate developer rb age group and real estate investment firm paramount assets with the city. The of newark are bringing mural arts to newark with a project called four corners public arts the initiatives first phase taking place. This full will use murals to bring to life more than twenty facades and surfaces in the city's downtown district. A request for mural proposals is open to the public through september third artists artists are invited to propose concept centered around the histories of these activation sites. You can get more details at four corner. Public arts dot o._r._g. <music> the city of joliet illinois is staking its downtown redevelopment plans not on retail condominiums or office projects. There's taking it on a courthouse. Chicago-based white in companies designed an open complex for for a new courthouse that includes thirty eight modern courtrooms and a ten story office tower enclosing a public space. The city hopes will be the anchor for re-energizing sizing the downtown business district. The white company courthouse designed has been recognized by the american institute of architects academy of architecture for justice. It's one of fifteen recipients nationally of the two thousand eighteen justice facilities review awards and only one of four to win a citation the highest honor to get a sense of what's is going on with the courthouse in joliet. We talked with kevin havens. Who's the executive vice. President and director of design at white and company about the new courthouse has project joliet illinois which doesn't get a whole lot of attention right. There's a new development there. It's costing a lot of money but it's not a live work play way. It's a coordinator. Tell us a little bit about how that happened. Well yeah. This was an exciting opportunity. <hes> the <hes> how many board lord of real county which resides juliet made a big decision and that was to not just provide new facilities for the the county court <hes> establishment but actually have it as an opportunity we think how development in downtown joliet my take place and what's kind of radical about that is typically <hes> it's commercial type projects or new businesses or residences that are kind of the <hes> <hes> the lead in converting old tire downtown's but in this case they actually had the vision that a civic building <hes> um my down payment if you will on changing of the entire urban experience so that was a great challenge should take on as we began. The project talk local little bit about the building. It's a modern courtrooms a ten story tower and a lot of public space <hes> how how is that going to help in in in the downtown area well <hes> it precepts the project was replacing an adjacent old courthouse from eighteen sixties this building sadly it was kind of <hes> you know. The poster child of everything gone wrong building designed its peak. It has kind of a punitive venture about it's <hes> there's really nothing transparent about the you know action of justice <hes> the new courthouse we asked by the judiciary duleep league's exactly the opposite. They wanted to have a very transparent expression <hes> that justice is equal access to it. It's on display and to make it a very friendly biting place rather than a very cold and off putting building so this building actually <hes> has been has been developed vertically article ten stories <hes> it's <hes> <hes> nearly three hundred seventy thousand square feet with thirty four rooms and what it does is it actually cre- green the public square <hes> in in front of the building kind of sheltered l shaped configuration of the building design and this is a square there really it's open for anyone isn't it so heavily landscaped with trees benches <hes> it's beautifully luminated and wants to be an attractor actor for people not something you want to stay away from whether we have porn business or not <hes> the urban square something that they wanted people to be attracted to and therefore for being the tractor for businesses restaurants shops to start develop kind of like <hes> you know radiating from the courthouse property <hes> the main lobby to the building is entirely sheets glasses two stories and it's kind of counterintuitive for secure building which actually it is very secure opera enjoy roy <hes> you can see inside and <hes> waiting there. You're waiting for an elevator up to a floor there as perspective juror lychee the jury assembly area or business with the court clerk. All these things are very open and an aunt display if you will nothing's really hidden behind closed doors. Even the vertical floors where the courts are staff <hes> the public waiting area enjoys a beautiful panorama looking looking north into downtown. You know you got to where they can relax and take a breather decompress with it before an xy the courthouse <hes> so this is a different way of thinking about about justice and it was very much based on the community perception of what this new place would be one and so <hes> how is it going <hes> i is the building up or when you project completion well it's in profit topped out at ten stories now under starting to sheet glass curtain wall and stone materials and it'll be opened <hes> at the end of twenty twenty open for business. It's projected rejected that they'll have over three thousand visitors per day. <hes> it's a lot but there's a lot of courtrooms of a lot of other agency business is to be done there with public defenders states attorneys and mention the county court clerk <hes> so there's a lot of all the agencies associated with the court administration administration for turnout scattered around downtown show we'll coalesce imbuing this singular structure and generates a lot of efficiency it does indeed and it also integrates a lot of potential business outside of the courthouse. These people need to eat <hes> they need transportation tation <hes> they might need access <hes> other offices for a private attorney somewhere in the area so it really becomes kind of injection life you've at least this is the vision of the county board into the downtown area so it's quite exciting. It's gonna ask you about <hes>. The the impact on local retail all is <hes> downtown joliet. <hes> thriving or is it. Has it been struggling economically. It's been sputtering. There's been some some attempts is to <hes> to get some things going <hes> they. They have a relatively new public library. That's been joliet. Junior college has actually open the culinary institute in downtown areas so there's kind of some small. It's you samples of the things that have been happening downtown to start to to spark <hes> of that return of retail and restaurant tourist. The courthouse project is clearly the biggest and we're hoping that it could be just enough to get things going wait and company was actually involved with an unrelated project. It's about two blocks away from the courthouse that actually actually it's an idiot affect on the downtown and that was an expansion to the old stork joliet central high school <hes> we put on a few years ago kgo eight <hes> the new students <hes> activity center and <hes> a component of that project was an atrium that connected the old historic landmark mark building to a new dining facility and kind of the unexpected result of that is that the space now is being rented almost every weekend by one community <hes> group after another told certain events and it's a splendid thing. A lot of people enjoy yet go to high school there. They really don't move away staying with them to to think about pedal. High school is actually being a magnet for their continued life. After after <hes> after congratulations really marvelous so these ingredients do in a very stealthy way i think the things that traditional mission of development of of of of retail and housing <hes> typically doesn't announce that these cultural institutions be ah education or in this case civic courthouse are also doing from a completely different direction. It's exciting to see that <hes> that <hes> that <music> synergy come together you know when the courthouse was completed others vision and these are not confirmed plans to the hope is that <hes> more consolidation consolidation will take place so there might be a new county governments that are <hes> that might even combine <hes> with the city government which right now are two different entities <hes> to actually take the place adjacent to the <hes> to the new courthouse by demolishing little courthouse and so it's fun to see at least the intent or the vision to not stop when this is done but to keep it rolling and to <hes> to keep injecting <hes> this kind of energy into the downtown area kevin havens is the executive vice president and director of design for white and company. He joined us from his office in chicago ago kevin. Thanks very much for taking the time to chat with us. Thank you so much pleasure. You're listening to the c._r._a. News hour from from state broadcast news dot com opportunity zone investments continued to be one of the most sought after sure topics in the commercial real estate world for information and you're about to get a masters level course in some of the tax issues surrounding opportunities zones from michael sanders. Michael is blank rome's lead partner in the firm's washington d._c. Office tax group he focuses focuses practice in the areas of taxation offering particular knowledge in matters affecting partnerships limited liability companies s. corporations real real estate and estate planning michaels a frequent speaker on opportunity fund legislation. He advises fund investors and real estate companies on the program requirements requirements and in this segment he provides some up-to-date guidance on some of the tax implications for partnerships planning to invest in opportunities zones michael. You are the lead partner for blank rome's tax group in the washington office and from your perspective there are a number of open tax issues with respect respect opportunity zones talk a little bit about what these are and what you think needs to be done to <hes> to fix these issues. <hes> thank you very much much. <hes> there are about four or five six really important issues <hes> that i wanna just touch on i <hes> <hes> the question of eligible gains <hes> and the regulations say eligible gains generally are capital game which is long long and short term gain short-term is pretty advantageous because otherwise it'd be taxable as ordinary income from actual ordine sailors change or any other gain that is required to be included in the taxpayers computation of capitol gain so you need to look at the k. one she received from the partnership and one of the items listed is unreal captured twelve fifty gain <hes> which relates to depreciation recapture and that is not ordinary income should not be ordinary ordinary income although it's not clear under the regulations on recaptured twelve fifteen is taxed at twenty five percent maximum capital gain in rate <hes> and so i would take a position that is ineligible game for purposes of taking advantage of how's the opportunities zone fund <hes> provision sort of related to that is these section twelve thirty one issue. Uh netting is required under the second trench netting that is of gains and losses che's and the determination of whether you have a net twelve thirty one gain is on the last day of the taxable year here so in effect it puts the taxpayer in the penalty box <hes> humorous reference <hes> wish because you have to wait till the end of the year to be able to take advantage of the opportunities zone provisions josh and this appears to apply to the partners individually but not at the partnership level so a determination maybe made on the last day as a taxable year which would trigger not hundred navy day period to invest <hes> and by the way that may impact on the seven year holding period in twenty nineteen because you're not going to be able unless you do it on december thirty first <hes> <hes> to take advantage of that seven year period of deferral <hes>. There's no optionality -ality here. You don't have a choice so let's say you <hes> <hes> major sale at the partnership level of a shopping center in april april of this year so you would like to reinvest but according to the regulations hundred eighty days won't start start you won't you'll have to wait until the netting can take place <hes> have to receive all your k- ones from other partnerships as well as your personal twelve thirty one games and you might not receive them until next april or may so so reinvestment maybe stalled <hes> which is not a good result and i would expect treasury to focus kosonen this at some point the thirty issue <hes> one that we need to look at today is the inconsistent treatment of gain after ten year period because it affects how we draft our documents <hes> the <hes> the real benefit benefit to an equity investor is when they sell their qualified opportunity fund interest directly so investor investor a. q. o f <hes> as taxes a partnership for example <hes> it's if he makes the same market value election upon the sale of the cool f- interest after ten years the effect will be to eliminate nate any gain upon the investors sailors change of a qualifying investment regardless of whether the investors used i <hes> the losses that had been generated due to depreciation and whether the investor receives leverage distributions from the during that ten year period that's great result but under these regulations second trench if the cure f- sells the assets <hes> then in determining <hes> as to which challengeable sheriff capital gain it has to look at schedule k one <hes> make sure that the disposition occurs after after the investor it's ten year holding period expires. This election will then only apply to capital gains allocated and not to amounts characterized as ordinary income such as depreciation recapture of twelve forty five assets fits <hes> so there's a difference and finally it appears that this election will only apply to gain from dispositions of assets by the q. o. f. itself and won't technically apply to gains recognized is by a q. Oh be qualified opportunities on business and it's unclear as to whether this is intentional but today that's the result another problem <hes> i also would like to take a minute or two to talk about planning purposes they comparison of ken thirty one <hes> treatment to opportunities zone tax benefits <hes> qualified opportunities zone property investments are not restricted to real estate. They're available to other businesses hedge funds for example. What ten thirty one <hes> is so limited. Pretend thirty one deferral can be permanent 'cause as a basis step up at the death while opportunities zones allow permanent step up that need to die if hell for ten years so there's a different sprint twist here <hes> there's also the opportunities zone option available for a busted ten thirty one transaction which itself would require an hour of discussion and opportunity zones may do a ten thirty one roll all over itself during the ten year period but the technical substantial improvement test would likely need to be satisfied based upon the property purchased <hes> why don't i take a few minutes and talk about the advantages of of leasing properties which ultimately benefit can benefit related parties. <hes> the least tangible property must be acquired under release after seven thirty. I twenty seven teens so it's a new lease. The lease is property does not need to meet that original use test or substantial improvement requirements but must be a market rate lease <hes> as related party <hes> which canal be <hes> treated favourably under these rules. It's a big set. No prepayments are allowed for more than twelve month period also <hes>. It's important to examine the terms of the lease. It's a term of the lease is too long. In that exceeds the useful life of the building it may be considered a purchase under the tax rules thereby triggering this substantial improvement requirement in order to be a curios ep or treaters sale between related parties and fail uh as to those assets be the an issue under these seventy percent test <hes> substantial test <hes> but keep in mind fine the longer the term of the lease the greater the value of the property which we focus on the potential appreciation which would be excluded from tax after the ten year hold anyhow <hes> it's important that improvements made by the seles see to the least tangible property should satisfy the original us test be be favorable purposes seventy percent test <hes> the improvements will revert to the feeless or at the end of the lease term <hes> active business talk about the triple net lease in land banking limitation <hes> the regulations provide that leasing real property used attractive is is treated as the act of conduct of a traitor your business but stipulate that it merely entering into where triple net lease is not considered an active trader business finishes potentially a problem because many industrial leases are triple net so the the you need leasing leasing activity that rises above what is merely a triple net lease you need advertising management operation <hes> in the new market tax credit area there there are favorable rules on generating gross income within three years but we don't have that here so <hes> you know you're going to meaningfully participate as some good language in the go zone on area notice two thousand six this seventy seven which should be helpful here <hes> as to the treatment of unimproved vacant land. Let me just say <hes> the the timing generally <hes> regarding original us turn some win. Depreciation begins when i placed in service <hes> one of the concerns in the regulations is requires an asset by acid determination as to <hes> <hes> substantial improvement not on an aggregate basis disappoint which <hes> can create problems but there is a favorable <hes> language that <hes> properties unused for an interrupted period say five years we'll be considered original us when acquired by the q._o._s. would be which is really favorable but but you gotta focus on land banking because that's a potential abuse i mean they don't want <hes> the basically property to be acquired and accumulated and held <hes> for development down the road <hes> so if the land is acquired with the expectation intention or view you not to improve by more than an insubstantial amount within thirty months there'll be a problem and they have not defined insubstantial stanchov another area i want to touch on is the <hes> kilos e b advantages of the two tier structure and taking advantage of the <hes> working capital safe harbor <hes> it it may be advantageous the cure west instead of investing in property itself to invest through a second tier kua z. He be subsidiary which may not be disregarded today and in that regard they can get the benefit of sixty fifty three percent qualifying acid rule as compared to the ninety percent cure us here and they it can take advantage of the thirty one month safe harbor which is a very attractive and now it's been expanded under these regulations sion's to include the development of trade or business in a qualified opportunity zone as well as the acquisition construction andrew into a substantial improvement of tangible property. It'll cover payroll inventory occupancy and so on secondly early exceeding thirty one month rule does not violate safe harbor if the delays attributable to waiting for government action shen <hes> which is not completed within the thirty one month period and the regulations also provide clarity a business may benefit for multiple overlapping with sequential applications of the working capital safe harbor so those are key issues that i see and i just wanted to summarize them for you michael what <hes> what's your sense about the <hes> open tax issues. Are they going to be resolved by a treasury or the i._r._s. Or how is that. How does that mechanism work. And what do you think think the outcome is going to be well. I don't expect that we're gonna see <hes> a third trunch of regulations. I think treasury has already pretty indicated that and it may be that after hearings and the receipt of comments that they finalize all of them at the same time. Hopefully they'll clean up out of these issues interesting. It's interesting to me that every time <hes> <hes> they publish <hes> what we see a more issues raised and as i've said a number of time it's at these he's tax conferences. The the brighter the more knowledgeable the tax lawyer is the more issues <hes> they they you see and create <hes> and so that's potentially a problem for the let's say the developer the businessman and <hes> the private equity fund they want answers so they can make some decisions and invest and it's slowing down because of the very issue so <hes> what what's the best advice that you're giving your clients about positioning themselves to to be on the right side of the regulations as they exist today. What i'm what i'm advising clients is. You can't wait for absolute clarity. <hes> i feel that if you're in good faith and and it will be anti-abuse royals at some point put if you're in good faith and <hes> don't try to game the system you can move so it <hes> and don't wait because it's critical to acquire the properties <hes> or <music> sensually moves the business sooner rather than later you wanna take advantage of those attractive properties located has resonated zones so we're gonna wait for perfection. You may never get there because the competition is going to be true so you got to be willing to step a poet and and also in advantage this point to do it in twenty nineteen to get the full seven year deferral michael sanders offers is the partner in charge of the taxation group at blank rome's blow offices in washington d._c. Michael thanks for taking the time thank you. We'll be back in a minute. Show on this is rabbi. Richard address join us for our podcast series from jewish sacred aging entitled seekers of of meeting will explore some of the issues in events that impact ourselves our families and our jewish world at large in light of the current revolution in aging the secrets of meaning podcast last airs every friday morning at eight a._m. At jewish sacred aging dot com <music> today. You can't wait for the media to cover your company. You have to be the media. Take advantage of the power of audio and video. It's it's the best way to showcase your expertise to perspective customers. Let the lubec in media companies handle the technical side. We're award winning audio and video producers. There's we can help you produce podcasts video programs remotely or in our fully equipped studio in cherry hill visit being the media dot com for more information u._s. Apartment building sales reached a record high last year according to a recent report word from jones lang lasalle in chicago. The properties trading hands aren't just located downtown. Some of the hottest markets for multifamily sales are south side neighborhoods like washington park south shore and hyde park according to chicago based in terror realty driving. Some of the demand is what enteric enteric goals coastal cash. That's east coast investors who are snapping up value add properties with cap rates that are in some cases double what they'd find in the new york <unk> area. We wanted to find out more about this so we got on the phone with jon. Morgan and david goss the co founders in partners in in tara to talk about what's going on in chicago in terms of the east coast investment so one of the things that you're seeing <hes> seems to be this phenomenon. You're calling coastal cash <hes> money from east coast investors who were looking at value add properties in chicago that offer them. Maybe a better opportunity than what they might find in the new york area. Tell us a little bit about what's going on the phenomenon. We've kind of seen over the last twenty four months is really been a change in our local local markets where most of the local buyers have been getting priced out whether you know east coast west coast money frankly out of the country <hes> money and invest awesome started flooding the chicago market and we've seen it kind of across all geographic locations in and around our marketplace so i would say in the last eighteen months months <hes> specifically i mean we have had competitive party's bidding against each other all frankly out of state <hes> investors that had have been previously transacted in the chicago land area and you know i think we don't see that continuing to slow anytime soon. It's really just about chasing yield up or otherwise the rising able to achieve in their current marketplace. So what are we talking about the indications. Are you talking about cap rates that are double what they might get new york correct. Yeah i mean that's naturally ben heck. I mean essentially what we continue to hear from them is <hes> you know the economics and the demographics the markets within all brooklyn bronx you know all of those markets or similar demographics and economics <hes> within the chicago land area. It's truly that they're buying at the cafes uh-huh generally above what they can cheat on in their local markets today so it's really driven cash from the lenders and from about indoor mark art what are some of the factors that make chicago first of all attractive to these investors besides the cap rates. It's an and secondly <hes>. What are some of the things that you're telling people to look for when they go into this market. I think one of the one of the big drivers has been you know. There's event some early on money again. Coming in from new york specifically mad they start chatting they start talking about what it's like to operate an apartment building no different than what they experienced ends ten fifteen years ago in their marketplace so as they start to hear that from other local about certain within new york based starts to chase and we have <hes> an time when you're selling and we had to new york family that kinda cross that one party saw that the other who ran across each other's house in their own marketplace they've started to wanna you know immediately. Try to get their offer and i try to lock down the properties and i think a lot of that has just it's been. It's been driven by their price out of their markets. You know there's just it's gotten so competitive within their as that's there is no necessary return. They're only taming appreciation in that market whereas here you know you can still achieve some cash flow and you got appreciation in our marketplace though so i think those two lineup to where investors are looking to come here rather than solely by an an appreciation basis within their marketplace today one of the things we're seeing a lot of there's almost a herd mentality taliban and you know pushed a little bit buy why proper marketing but like jon said the last building. We were selling two hundred and thirty a unit. We had several families from new york and they you know it's just like anything else. One hair is it and they all start following so it's kind of like a train and and you know we we articulate listening that john was talking about with san francisco buyer. We have several new york buyers. They just kinda follow each other and isreaeli israeli. We had an israeli right and i think one of the things you would ask john like what were one of the things that is bringing people to chicago his is i mean you hear all the negative stuff on the news but <hes> it's on the secondary because everybody that's in every city but one thing chicago has a lot of other cities don't have it the huge migration of younger people in <hes> we are losing population of older people but they're professional national young people with a lot of money. There's so many people moving in and whether it's just it turns people so the new people are coming in for the credit day. Okay stop in center city a push everybody else so there's just an increase the man arben all about the city. It's it's very similar to what we saw within the last last year new york people pushing further west into new jersey and now it seems like they're pushing really far west with what you're saying yeah yeah. The city is just getting filled and filled. <hes> you know the suburbs may be suffering somewhat but <hes> you know everybody just shifts over as a you know a constant stream of gentrification moving <hes> so everything but but everything even the bottom donovan being lifted up so that we don't really have as many like this seriously distress neighborhoods as we used to because there's a lot of money going in there and pick them up so especially see a benefit to video as a home yeah and again most of the neighborhoods where we're seeing this money come into their just outside of the central business attorney so i mean the reality of it you know you're coming from out of state or your proximity as you look kinda weird coming from on a live they wanna live in an affordable area just outside of this t._v._d. You know that's within driving distance of ten fifteen minutes left and i think that's really where we've seen. The focus and you know obviously as chicago continues to grow. Oh maybe not at the pace of the new york. It's still going to grow overtime so given the fact that there's all this interest now. How long do you think it's going to be before things sort of calm tom down or is it got a ways to go to run itself out yet. I think i think we have we have quite a ways to go. I mean if you look at where we are what previously had happened with relation to banks and lending. You know you're not seeing crazy. Lending people are coming in real money down real equity at the table not structured finance that otherwise or elaborate though darn corinne in the current cycle so based on what we're seeing you know. There's a a an abundance of senior in the marketplace what we're starting to see them. Both locally and nationally as all of the banks are actually taking the term of their their you know long doubts like a traditional local under might have done three three or five your money now those same lenders are offering five to ten year money which previously had to go to fannie freddie and other agencies to get but now it's available on a local bank base insult to me by that occurring in itself that stretches out the duration of the next cycle. I think we have several years of runway la before you start you don't frankly even a a flattening of the market and then you know i you know i think we're we're well away from any potential crash in the market cycle so <hes> some economists are seeing a bit of a slowdown across the overall economy over the next year or so <hes>. Do you have have any sense of whether your market is going to slow down or what are the things that concern you that you're keeping an eye on about the possibility of a slowdown that we always look at first absorption. I mean in chicagoland market. Absorption really haven't played a impact on the moore neighborhood areas where we do a lot m._r. brokerage <hes>. I think there's you know there's concerns over over some live classic kind of directly in the c._d. But at the same time i mean that product has been getting absorbed from salt. Concessions are still record lows in the chicago land area. We haven't started to see a whole lot of crete there. <hes> and i think the reality of it. Is you know these aged. These tertiary areas outside of the c._d. I mean ultimately. They can see their extremely low. The rents are still affordable and they're still the ability to get ranked rogue <hes> so i think a lot of those have lined up to where it their concerns haven't been there in our space and and i usually see that i mean the markets we have seen very andraos them <hes> senior that at this point that's has continued to keep kind of our industries. You've had a good values fan. Jon morgan and david goss our the founders and principals of inteiror realty in chicago. They he joined us from their car somewhere on a freeway in the windy city jonah david. Thanks for taking the time. We appreciate your perspective on the market. Thank you thank you thank you for the time appreciate thanks. You're listening to the cr news hour. I'm steve lebron. Artificial intelligence agents is starting to move into the commercial real estate industry and one of the leaders in the field is an israeli company called okapi spelled o k a._p._i. Okapi has a machine learning platform that helps major landlords think twenty five plus million square foot portfolios leo improve their net operating income by analyzing massive diverse sets of data and identifying operational improvements that generate revenue bolster stor leasing activity improve the tenant experience and reduce costs okapi is an israeli company and we spoke with maya gal who's a co founder and chief chief revenue officer of the company. She and her partner iris c don have expanded the company's work in the real estate industry into canada and the u._s. My thanks for joining us on the news hour very happy to be here so tell us a little bit about how you got started with okapi. You've got a an artificial intelligence platform that has the potential to help landlords improve their operating income and their overall tenant experience dance by looking at big data. How did you get started. And how did you move into commercial real estate with it. Actually ireson. I co-founded okapi. Our background was sanal business intelligence. We worked in that sphere for many many years. Bringing a visualization of data and we found that there is a very big <hes> lag in the way the current tools today they allow you to see what happened in the past but they don't support collective actions <hes> and there's really a very big <hes> abyss of data where organizations accumulate a large large amounts of data at early basis while we're speaking right now date has been through through accumulated in created but most of that data is just being thrown away <hes> it's <hes> rotting away in some in some warehouse or in some files and it's not being being put to good use and the seeing that gap we co. We thought what is the value that <unk> kathy can bring to the world and we actually started implementing okapi in manufacturing manufacturing area where there's a lot of data data coming in from sensors from sheen's data's coming in from sensors <hes> <hes> from from a lot of different parameters in the manufacturing and data existing i._t. Systems and we had a lot of success there <hes> and we started to think of what other other applications this could have an we learnt came across the sierra business that was about three years ago and we fell in love with it <hes> <hes> a huge problem of data lots of exists landlords store lot lot of data but they don't use it in order to create a proactive notifications occasions and our first customer quadrille which which kind of <hes> explained to us that manufacturing in real estate are not that different <hes>. There's there's a large operation. There's a lot of data a lot of people in the field making day to day alien decisions without any support of any systems and joined during that application efforts application saw great fit and we've been enjoying great success ever since so how does it work with real estate data what kinds of of inputs are you using and what kinds of analysis do you deliver to clients <hes> and how does that help them and while a lot of organizations as i said collect the data the data could either be data coming in from business systems like m._r._i. B._t._s. yard ciardi lots of different i._t. Systems <hes> data could be coming in from sensors. We check sensors occupancy sensors different types of sensors the building <hes> and data could be external data it could be whether data could be market data location based data. <hes> there are a lot of types of data sources that can help l. A. landlords understand how they can improve their and why in okapi is able to connect to those data sources run very complex algorithms rhythms in the back end and then in the front and create simple notifications that are sent to asset management groups property management groups engineering teams with proactive notifications that incites the letting them know how they can improve the bottom line so for example if you're gathering data from <hes> h vac sensors building <hes> monitoring <hes> or the algorithms already built or do you have to customize them for each client so in okapis algorithms are already redeveloped. We have a very strong engine. The knows how to connect to different types of sources that they could be leasing data in b._t._s. It could be a work order system. They are in an angus or it could be a financial data could be censor data a we are agnostic of this system or algorithms are able to run through that data on and find in improvements in real time and create those into implications the algorithms algorithms look for anomalies in the data they look for root causes for problems. They look for predictions and they really helped uncover. What is an activist action that i can take in order for this not to be like a very theoretical statement. I can give some examples will become more practical. Please so our customers are looking for a way to increase income from there just in assets they have a lot of different tenants and they won't understand what what are the opportunities for them to get to increase the income from those tenants so <hes> okapi might be running the different system than find for example a potential to offer a larger space for ten due to higher occupancy. They could be found from understanding the number of people that actually walked the carousel every morning. <hes> could be understood from external data could be collected about that tenant or even <hes> from sensor data that we have <hes> or for work order just later so it doesn't really matter what type of sources you have okapis able to into them and find in that data and opportunity to increase a <hes> to increase the income another example might be finding an anomaly in the way that your tenants by parking and and find offers or places where you can offer your tenants more parking spaces so there was a lot of hidden opportunities inside the data to increase the income. What okapi desert has it crunches. Very large data sets that already existed already have on and creates. Those are the foundations in playtex where people were not. They assigned but they need to know what they need to do. So in the commercial real estate sector you launched initially in canada and you're now moving into the u._s. What kinds of for feedback are you hearing from commercial real estate clients or prospective clients in the us about using the service well as you <unk> said when you started in <hes> canada we actually started with some large landlords that have portfolios both in canada and in the states so we're not brand new due to the states working with customers like oxford properties were mental reno who have presence in both canada and nited states <hes> currently <hes> starting our work secured new york. We're focused on finding the large landlords who can value from okapi. We already have a few of them that we've started piloting our platform. We're getting great the feedback for the value that the system can bring because i think there's a lot of noise in the proper cloth seen there's a lot of startups out there but most of them are focused his either on the investment side or on solving very specific questions landlords have do i use my energy to the best possible way that is a silent solution but they're not a lot of solutions where we haven't run into solutions that are focused on. How do i do it improvement of the n._y. Across the board how do i operate my buildings better header increase attendance experience while increasing income and reducing the costs so in that sphere in that <hes> area we were getting a good feedback that we're very are you now in the in the output that you deliver to clients as it in a form of a dashboard or is it a report. How do they look at the analysis that to provide. That's a great question. Our customers are the front line employees. They're not people sitting behind a desk and analyzing data on people people who are running asset management teams people running problems propertymanagement buildings people giving the day to day service so these people are on the ground they will consume okapi notifications even through a mobile app that will click and they will say having you notification they will that notification and they will get something that they need to do right now that will help them know more about the tenant about the team about a specific asset that is on the ground that they can improve on so most of our customers use okapi through them allow up there is of course a web version where i can see accumulation of all indications are received in trends over time and other things. He's like that's <hes> but he kept he really meant to be a real time solution requirement it used by people as they're doing their day to day job. My goal is is the co founder and chief revenue officer of oh copy. You can get more information at their website. O k a p. I dot a. i. Maya thanks for joining us today. Thank you very much and that'll wrap things up for this edition of the c._r._m. C. r. e. news hour. You can send your comments suggestions story ideas to steve at st broadcast news dot com or you can leave an audio audio comment for us using the voicemail icon on the homepage at st broadcast news dot com. We take this program in studio. A at st broadcast news news in cherry hill new jersey join us again for the next episode of the c._r._m. News our next friday at eight a._m. Eastern time at st broadcast news dot com or wherever you get your podcasts. This is steve lou beckon. We'll see you out there on the net. Take good care <music>.

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CRE News Hour 8/9/2019

Commercial Real Estate News Hour

59:55 min | 1 year ago

CRE News Hour 8/9/2019

"From the business desk at st broadcast news this is the c. arena news hour. I'm steve lou beckon. It's friday august ninth twenty nineteen in our program. Today we'll take a deep dive into the co working space with two features. We'll hear from tom. Smith co founder of trust a chicago based marketplace for commercial real estate listings including co working locations. We'll chat with danza. Kyw co-founder of israeli based co working company mind space. We'll hear about how developers of a live work play property in green bay are using virtual reality in the design process and we'll speak with author doug marshall was new book is called mastering the art of commercial real estate investing. We'll be back with the top news stories right after these messages <music> turn earn your podcasting passion into profits the book the business of podcasting describes the business side of podcasting including how to become a professional national podcast. You'll learn about position your clients expertise who podcasting to plus the best business models how to find clients and much more visit the the business of podcasting dot com oh today you can't wait for the media to cover your company buzney. You have to be the media. Take advantage of the power of audio and video. It's the best way to showcase your expertise to prospective customers. Let the lupatkin you bet can media companies handled the technical side. We're award winning audio and video producers. We can help you produce podcasts and video programs remotely or in our fully fully equipped studio in cherry hill visit being the media dot com for more information analysts. Take a look at some of the stories that are making news across the sierra markets worldwide thor equities global leader in urban real estate development element leasing and management has launched thor sciences a division specializing in the life sciences sector. The announcement comes on the heels of thors. One hundred fifty two million dollar acquisition of the center of excellence a seven hundred eighty four thousand square foot campus spanning forty eight acres in bridgewater new jersey consisting sting of laboratory research and development and office buildings. The complex features life science companies specializing in pharmaceuticals and health services including anchor tenants. It's nestle health science ashland and m neil pharmaceuticals real term logistics closed on the acquisition of a three hundred eleven thousand square foot high flow through facility in harrisburg pennsylvania. The property was billeted twenty fourteen with extremely rare thirty seven foot clear height. It's located aided in the highly desirable central pennsylvania market with immediate access to i seventy six. I eighty three and i eighty one. The facilities fully leased gore properties. A denver based privately held real estate company added another asset to its growing portfolio companies acquired one hundred fifty five thousand square foot retail hill in service center called orchard plaza. It's located in the heart of the denver tech center at the northwest corner of east orchard road and south yosemite street j. l. arranged forty two and a half million dollars in financing for rivet a mixed use multi housing and retail property in the heart of new jersey city universities university place. He's in jersey city new jersey. The second phase of title town is getting underway. It's a mixed use real estate development in ashwin on wisconsin -sconsin. Just west of green bay's iconic lambeau field developers and designers are using virtual reality technology to build visual renderings of the property that users can walk through with v._r. Headsets and even on smartphones we spoke with craig pride shareholder with k. t. g. y. Architecture and planning and danny glimcher from glimcher capital group about the project danny glimcher you were the <hes> folks who are developing titletown talk a little bit about <hes> what the development is. What's the project will about so we're doing the residential portion of title town <hes> but total time as a whole was was kinda meant to be a an economic development project for for the region on the whole not just the local region <hes> on the packers. There's were looking to give back to the community to some extent and so what they've done is they've put the amenities in place to make it an attractive place to work liberty class flash so as a brain now. There's a regional sports medicine center there. I'm done by balanced house. <hes> lodge colours there which is four diamond hotel that she beautiful hotel. If you haven't stayed with great spy great amenities hotels well you got hinterland brewery and restaurant which the food is manhattan level food at the place <hes> and there's a ton of public amenities as well. They've got you know a a to mean hill where you can actually get some pretty big speed on a sliding down the hill. They've got an ice skating trail. They've got a lot of games and community amenities program classes and things of that nature so it's really kind of transformed the region <hes> they just announced a not too long ago a partnership with titletown titletown tech which is a partnership with microsoft to do a tech incubator there and there's a lot more coming so now we're doing about the hansard multifamily heads and a tonight. He called for sale units there. This is <hes> somewhat off the beaten track track for developments of this kind and it's obviously in a suburb of <hes> green bay in wisconsin but <hes> how do you <hes> how do we sell that to people who may not be looking at wisconsin as as a primary place where they might wanna live well i mean. I don't think it's that you know all the green bay's smaller smaller market for the n._f._l. The concept of sports jason risk-development is really become more commonplace and so i think there's a couple a couple of reasons for that but the primary reason that that sorta sports adjacent development can combat was because people recognize that pure public funding for stadiums and things of that nature wasn't for the public benefit so you were just basically transferring dollars from one portion of the economy to another but there was no creation of anything new whereas sports jason developments happen antef districts which are taxing financing districts and so the delta between the attack that was being collected prior to women in post development you know can be bonded and sold and part of that money can go to develop the real estate where where you're creating jobs and creating industry and and making it more sustainable so as far as why you wanna live there now <hes> your you know the amenities as entitled town for one has transformed what was available for your also kind of at the gateway to door county which is i don't know if you're familiar with reading but it's it's a beautiful foil <hes> part of the country door county in people from all over the country common homes their you know primarily a lot of chicago <hes> in that region will have <unk> homes there by your forty minutes waves in door county you literally right across the street from them but feel there's a lot more industry. They're now and and now you've got a walkable active area where you have a lot to do all within walking distance of where you're gonna live which is something that wasn't really offer before in that market market. I want to turn to craig for a minute and talk a little bit about the technology that was used in the design process. When did you decide that you were going to to use virtual reality tools to design this project. We decided to implement it into our process. As a convenes of getting greater understanding from ownership in the level of detail or how our design was is <hes> to be viewed or portrayed in the decision making process we we were getting further along in the project and beginning to look at details els and so forth and we felt it was necessary to just kind of increase the level of sophistication to the review process <hes> so that's that's why we decided the to implement v._r. And what does that exactly entail when you're designing a development like this would how do you start using v._r. D- you start with sketches that get inputted or how does it work well. In our design process we use three d. modeling to to generate computer images edges of the design and that is a good to a point. It's not often times that we can take the the model to the client or they look at it on the monitor screen and they get the look and feel <hes> it seems to have kind of the next level of sophistication gatien <hes> when you're either looking at it through a v._r. Headset <hes> or or at least just <hes> using the v._r. Apps that they now have for your cell phones so so it becomes incredibly <hes> transportable for the client and they can bring it back up after the meeting is completed on on their cell phone and studied further or show other colleagues and get more feedback and more beneficial feedback to the architect ultimately now <hes> i in past years i know that the the amount of data involved in generating virtual reality meant you needed extremely powerful computer systems and <hes> powerful viewers and sort of almost <hes> an office environment rather than a portable one but you're talking about people actually using their cell phones to look at these renderings. How has it changed with the advances in virtual reality technology. I think it's changed in the advancement in the software especially going to an ipad ipad or a or a cell phone technology system allows you to take it anywhere you go. Whereas the more sophisticated complex kind of full virtual reality <hes> still takes a setup and still take some more robust hardware where <hes> that's where you're you're putting a virtual reality headset and you're in and you're walking through the environment in real time on. It's a little different technology than the one we used for title town. Which was <hes> kind of. I don't want to call it b. r. light but it was the cell phone technology that in the meeting or after the meeting it allowed the <hes> the ownership a a way to look at how their model fits in the environment without having justice evaluate static news any wonder if you could tell us what your reaction was was your perception when k._t. G. y. came to you in indicated. They were going to do this virtual reality approach to designing the project seen it more and more <hes> it's important from developer's perspective because you get a chance to understand you know how everything fits together both from <unk> exterior perspective you know how the different buildings spatially relate to each other but also within the buildings themselves you know you can look at color palettes and materials israel's <unk> fishers finishes all his business but until you loaded it onto the model you can literally walk around a unit. You don't really really have a sense of how it all sides together at least in the past you didn't you. Could you know someone's laptop imagination with virtual reality. You can being apartment before your apartments built. Does this <hes> streamline the process in any way or does it make it more complex because of all the data that has to be loaded to create the virtual environment. I think a lot of that so you know. I don't think it slows it because a lot of the data you're using his data. That would have been available anyways just how that data's processed <hes> so. I don't think it slows does it it. Certainly it speeded in that. You know you can make decisions much more readily you know in that. You'll see something and you say okay that works. That doesn't work where before you didn't have that opportunity. It's also become a great sales tool because people who bought the early units and condo and things like that in the past they had eh kind of leave it to their imagination to to see what it would be that davin idea you can sit there. You can put a rendering bore together but you weren't able to walk through your your particular unit. I want to change that. I wanna change says now you have that opportunity and you can see what it looks like what you're buys craig. What were the challenges launches you faced with. This particular. Project was at <hes> more difficult than others you've done v._r. Or was it a pretty typical approach. Don't know that there were there were no challenges challenges with the v._r. <hes> think the challenge in this particular project is just working through the level of sophistication indication and design and <hes> how the project design was put together with regarding the context that it was being put in <hes> so the the titletown project is a very unique project in that <hes> we're we're building out <hes> portions of the project that have already been completed completed so there is a a center <hes> green space and public space. That's already been completed in our project six sits to the side of that and and so we were trying to use virtual technology to kind of tie those two pieces together to give them a better understanding of how our project would integrate integrate into the existing development notice the virtual reality rendering of this space <hes> just provide did the <hes> the walk around views of it or does it include <hes> the other details that are behind the scenes that would be incorporated in blueprints in traditional architecture church. No it really focuses on the imagery and not the details of the actual construction wall construction. I think the entire project checked. Titletown development is a is a very unique project <hes> from the standpoint that it's being developed by the green bay packers as the football organization but it it is really an entertainment community and we're very excited to be able to provide high end luxury housing as as a component of that <hes> entertainment zone. That's associated with green bay packers craig. Pride is a shareholder with k. t. g. y. Architecture protection planning in chicago and danny glimcher is the founder of glimpsed her capital group in westport connecticut one of the developers of title town near green bay wisconsin awesome. Thanks both of you for joining us to talk about titletown appreciate it. Thank you much pleasure. Thanks for having me. You're you're listening to the c. R. e. news hour from st broadcast news. Dot com small businesses looking for office. Space often turn to co working working companies like we work in seventeen seventy six but now there's another option. Thanks to a chicago based company called trust to your u._s._s. Tom tom smith is the co founder of trusts and trust has just moved into the philadelphia market with a platform that provides information about four hundred it available office space is under ten thousand square feet and twenty co working locations in downtown philadelphia. The expansion follows trust getting a new round of fifteen eighteen million dollars in a to funding trust now has more than three hundred million square feet of available office retail and industrial space available on its platform we spoke with tom smith the co founder of trust and he described to us some of the features of the platform. Tom manages business development finance and data analytics as for the company before starting troisi gained more than twenty years of entrepreneurship experience focused on financial growth in technology he co founded various firms including nah trix sullivan wayne partners and exalt which was acquired by verisign. He joined us by phone from his office in chicago. Tom smith thanks for joining us on on the podcast. Thank you for having we appreciate the time and we're interested in how you differentiate yourself from all of the other folks folks who are approaching this co working space issue all over the market particularly the philadelphia market where there seemed to be an awful lot of players how do you how do you make it work. Well we make it work by focusing on the customer of many people forget about which is the tenant the small business owner looking looking for space and and in a very confusing landscape and being able to take all the market options for them and aggregate them in in one place jason one view whether you know we have over <hes> twenty co working providers the <hes> eight hundred pound gorilla. We work being just one of them. Just in the philadelphia market that we all we have platform and as well as you know hundreds of other traditional leases che's for a perspective business be able to see all the co working and all of the traditional workspace options and in one view in in an apples to apples cost comparison and no one else is doing that <hes> and and the price is is is free so it's <hes> it's a really revolutionary solution airy service that people expect almost in the residential side but it's unheard of on the commercial side. So how do you make it work. <hes> we're we're. It's free for people to use. What's the what's the model. The model is to actually taking a traditional <hes> tenant rep <hes> broker model <hes> which is if you were to if you're a larger business. Are you get the attention of the <hes> commercial real estate brokerage community and those folks are paid by landlords or successful lisa's. We've taken that model and then brought it downstream so <hes> basically democratizing -tising that and allowing people have the same level of access <hes> and and we get we get paid by the landlords just <hes> like the big guys do <hes> and then we're able to then pay for the platform costs and create this wonderful experience for tenants <hes> really piggybacking on the existing pay for performance. That's a landlords are used to it. Just never been attainable for small and medium businesses before now. Are you doing all of the traditional traditional things that would be associated with <hes> finding the space and helping people lease the space or is it just more of a directory to get them introduced to the people who are actually actually listing well. I'm glad you brought that up. Because <hes> that is the that is the key differentiator. We're a full transaction platform so we not only only help match them through the discovery process but also provide all of those <hes> higher level advisory services that <hes> large companies are used to from their from their broker so everything from meeting them for a physical tours <hes> they they desire <hes> advising them on <hes> market pricing and negotiation we do actually all negotiation platform and we help educate them on the market mark and then all the way through lease negotiation and <hes> and consummation so they <hes> could stay on one platform and we're unique in that <hes> we have both the listing and search capabilities as well as sign so search the sign one view you with <hes> a local <hes> expert <hes> guiding them so we have local resources in the market that no no neighborhood by neighborhood and block by block so what are some of the kinds of assignments you're getting what are some of the more interesting requests from people looking for space well we it. It varies quite a bit. We've had <hes> extremely large. Companies are looking for small satellite <hes> location so <hes> what cost just a good example there there used to be very <hes> highly service by their <hes> the brokerage community but <hes> you know some people looking looking to be in control of the transaction and it'd be more efficient and so the cost of wanted to <hes> an office <hes> they founded on trust and we've transacted with them so we never were expecting to a large company like that to be <hes> one of our one of our first customers but <hes> appealed to them on on being in in control and being efficient <hes> re we also got a lot of companies <hes> that <hes> you would think could've maybe <hes> outgrown grown co working so we have a couple of companies that were growing from forty to eighty people they thought for sure that they would be moving to traditional channel space and true trust. We were able to find them. <hes> some co working promotions that actually paid for <hes> half of their years their first cheer so lease which is unheard of so. It's you never know which way it goes you see big companies coming into co worker and then of course the traditional and i'm gonna tribulation out but <hes> being able to identify promotions and <hes> do that as an made it really exciting. There's never a dull day and just so i understand the the the space that you are identifying for people is not just co working slice so what unique it's all office space options. We're primarily focused under ten thousand square feet so that is really the the beauty of this is to be able to compare <hes> a we were right next to a traditional lease and then be able to see what those costs per month comparisons would be in in one view and that yep no one else has a hundred percent price transparency. That's that trust requires of our suppliers our suppliers being the landlords. <hes> better are co working providers that are trying to market their spaces. They're not allowed to put spaces on trust without giving us <hes> pricing disclosure so that we can really educating provide a real service to the customer and start transaction off right. So what kind of advice would you give to <hes> companies larger small that are thinking about using trust to look for space. What are some of the things they should be keeping in mind and looking for. I i think they should give us a try. It <hes> it's free it's <hes> and <hes> i think it would really open their eyes whether they had <hes> you know great service with their traditional broker or learn not <hes> that <hes> they're they're really going to be be pleasantly surprised is that they are able to to to view this availability and then move forward when they want and there's nothing like it so my advice is give it look at doesn't <hes> doesn't cost you anything and <hes>. I think we might surprise you now. Your press release says that your expansion into to the philadelphia market involves more than four hundred spaces and twenty co working locations. What does that mean yeah so. There's <hes> so a the spaces we're focused on under ten thousand feet just in the really kinda urban core of philadelphia <hes> we have and that numbers there's increase but we have over four hundred options for people to compare and then within each co working center we say there's twenty twenty locations each that have you could have <hes> hundreds of of options within each one <hes> in terms of the size of spaces one person office twenty person office office kind of person and so that those twenty co working for fighters trim. You know represent. Probably you know <hes> <hes> you know over towel heads of <hes> actual <hes> spaces so you know you have a couple between them and the traditional space is <hes> you know a couple of thousand options just in the urban core of philadelphia and <hes> we're real excited that represents well over eighty percent of what's available in philadelphia <hes> <hes> right out of the gate so you're getting a full market view and we're increasing number every day and you seem to have some plans to move into the phillies suburbs in the near future. Where do you think you'll be going. I in the suburbs too soon to tell it's too soon to tell but that's <hes> i it's well underway and there's some there's a lot of excitement by landlords that <hes> in the suburbs that are looking for new ways to market their spaces and kinda capture <hes> <hes> <hes> the you know the philly market <hes> in a new way so we're we're. We're thinking we're going to be in the suburbs sooner than than we thought so you know probably within a within a month or two anything. I didn't ask you about the <hes> platform tom that <hes> you think is worth mentioning. It makes <hes> looking for office office space excited. I've eat it <hes> <hes> it. It's interesting to see even if you're not looking for space for example what what the <hes> <hes> your options things. Are you know across the street or within your own building and things that you just don't have visibility on <hes>. Even if you're not ready to get in the market i encourage people to the come to trust and we'd be shocked at how much rich information there is and you may decide to make a move one way or the other before you. You thought because you're you're agitated so <hes> we we you don't have to be ready to leash right away to <hes> to come onto trust and <hes> and let us show you what's going on tom. Smith is a co founder of chicago based trust which provides a technology based platform for businesses looking for smaller office space and retail and industrial space as well tom. Thanks for joining us today. Thank you really appreciate it. You're listening to the c._r._m. News hour i'm steve labatt <music> mind spaces and israeli co working company with locations across israel europe and starting in the u._s. in san francisco and washington d._c. And it offers co working spaces that attempt to infuse local elements it's into office design underscoring its commitment to collaboration and open space while retaining a cosmopolitan atmosphere in its offices around the world dan's aci. Hi is co founder and c._e._o. Of mine space he established the company in twenty fourteen with co-founder yotam. I'll roy before mine. Spacey founded g system. Solar solar solutions is solar energy company which was later acquired dan. Thanks for joining us on the c._e._o. Renews our thanks for having me so tell us a little bit about mind space. It's a co working company. It's a global boutique kind of approach. What is it that differentiates mind space from some of the other co working spaces that people are familiar with yeah so my spacey's a global brand. We operate in seven countries. We started in tel aviv israel and we now operate in germany poland romania media u._k. The netherlands the u._s. <hes> what makes us not is the fact that <hes> we pay close attention to detail into the co working spaces that we create for members it starts with the selection of location we always go in prime sees prime locations and try to aim for unique the buildings <hes> in terms of design design will make you feel comfortable will make you feel at home we take inspiration from the local scene of the city from local artists and local <hes> furnishes that we source <hes> in those cities <hes> we play what should be what is always a larger team on the ground and you would normally find the other co working spaces and all of that just to provide an excellent customer experience the answer the boutique experience or members so you're in some of the major cities of europe and i noticed here in <hes> three cities within israel. What are some of the typical goal users of your co working space working on are they all. I mean the the typical <hes> what people think of co working spaces as being for us is tech tech startup companies. Is that generally your experience or are there other kinds of companies using your space. That's an interesting point because an interesting observation because that was what's the situation it off until like three years ago so when we first started five years ago we we aim than we had usually startup companies freelancers sir. You know we still have those groups of companies but what we're seeing that happening over the past two or three years is that enterprises and logic companies are moving into into co working spaces getting what we call is an office service so we have now at mine space over forty percent of our members. Will we call what we define. As enterprise company we have companies like microsoft barclays and many other great brands in our in our facilities and this is part of the movement that you're seeing in the co working arena right now larger companies moved again realizing that they get a lot of benefits from being part of a co working space and it's actually becoming an alternative solution and the tone of the real estate so those you know traditional lisa's. Is it your sense that these companies large companies are are going to be permanent residents in co working space whether it's yours or somebody else's hopefully yours of course <hes> or are they using this as a temporary measure to gauge whether or not to commit to their own office space in a in a particular market. I think what's interesting. In in today's world is that companies most companies today are in fact incapable of planning ahead you know as in the past <hes> <hes> and therefore you know the traditional lease model for seven or ten or fifteen years is no longer relevant or no longer efficient too many of the companies his <hes> that we're seeing and those companies you know they use mine space. <hes> locations not always swing space. Yes show we have those companies companies coming in for a defined period of time at deal they would have you know their h two ready or until they will decide whether they need their own space or not but i believe you that co working or flexible workspace solutions are becoming a permanent solution for for companies as part of their real estate strategy now. It's not not always <hes> you know it doesn't mean that they will place all of their employees at a co working space but you know it could be some of the teams maybe the regional offices assist for which they need more flexibility that they will go for a flexible solution but i i truly believe it's becoming a permanent solution to the real estate strategy. What kind of a reaction do you get from the landlords of the buildings where you want want to put in a co working. Space landlords are happy to rent out space to anyone who wants to rent it out. I guess but <hes> the co working is maybe in their minds looks less permanent than booking a microsoft or a company like that into a ten year lease. Do you get any pushback. All land votes today. <hes> you know the more advanced once realized that co working or flexible workspace <hes> you know becomes became an assessing to their building became almost as an amenity to their buildings. We have seen landlords telling us approaching us saying about they had potential tenants wanting to take space in the buildings but insisting that the building will have some flexible workspace in it so if they're a team aim grows they can you know outgrow their lease a by using a flexible workspace the little chef so that's one the second thing is. I believe that landlords understand dan that if there's a quality operator in the building it brings in new energy you live in the building which makes the building at the end of the day more attracted combined space today is fitted by many landlords in in markets in which we operate as an anchor tenant that attracts other tenants as well <hes> to the building <hes> and what we're seeing more than that is landlords who realize this phenomena realized that flexible solutions are going i to become a growing segment in this market as time goes by <hes> are looking to partner up with co working operators such as mine space in the full aw of a management agreement <hes> and in the form of activation off additional spaces within their own building so i i can tell you that mind space right now <hes> had arcnord by now with various landlords across the world basically <hes> to create workspace ace flexible workspace solutions in in in in in the buildings of landlords in a partnership in which we don't just quit taxable workspaces but we also operate other amenities in the building for the building and the rest of the talents and that seems to be happening with a number of the <hes> co working spaces being built in the u._s. That some of the new office construction here <hes> is being designed with co working as part of the model for for the for the floor plan as the buildings go up <hes>. Tell me a little bit about the community because i know that in co working spaces one of the things people will regard as being an important amenity as the community space the <hes> the cross fertilization and collaboration that can take place even by accident as people meet each other in the common areas yeah. I think you know if you wanna labeled out for a second. I think the community is part of a bigger girl. Hospitalised approach that some of the operators such as mine space are taking <hes> in how they manage their spaces so effectively what we're saying saying is that we realize and companies realized that in order to attract and retain the best talent that there is the market <hes> companies need you to provide a better work experience for their employees and now realizing that you know there is a bunch of things that you can do to make it happen so you can provide the next customer experience ban on every touch point with your customers and one of them is community so we do a lot of things to create that community stance dance and to bring on more features and more activities to our members which is something that we intend on bringing to the rest of the buildings i as a partner the landlord but effectively what it means is that we create workshops we bring contents we create you know constantly events that are happening within our space as trying to connect people to partner up and work with each other so almost an endless amount of activities that are conducted within the spaces they says and are managed by by mind space and by the minds face team so one of the things i always wonder about. How did you get started in this. You didn't just eh one day decide. You wanted to build co working space you. You must have had some sense of <hes> that there was a need for this. How did it come about yeah. <hes> the i've worked for various companies in the past i was an investment banker. I had started my own company company <hes> ten years ago in the solar energy business. I think that you know the the one thing that i came across. All the time is that i want to work in a space in a place that you know creates a better work environment. I mean we spend most of our days in our offices and mind space was a unique opportunity to take that and to try to change that while understanding that there's something happening in the market there is a big change that is happening in the commercial should read estate market nowadays and we can be a part of it and we can make an impact and take advantage of it so you know it's it's <hes> the co working in the city has a solid business model model. If you do things right than you can have a profitable company and a and a healthy business actually changing people's lives and making you know and had created better work environment opera companies and employees so i'm going to show my <hes> east coast u._s. Bias here and <hes> make a note that of all of the office cities that you have listed on your website. The two that i see not yet listed are <hes> philadelphia. New york are you. Do you have any plans to expand spend their. You're in washington d._c. Any plans to come further north yeah. We definitely have plans to continue our growth in the u._s. <hes> <hes> and and philadelphia and new york are definitely on our radar and <hes> happy to update you know as we have made some progress in in those markets and others. Is there anything you can say about. <hes> why you chose the particular cities you chosen europe because they're you know to some some extent there the the obvious ones like london and berlin <hes> but you also have you try and bucharest on the list and i'm just interested in how those get chosen yeah so were company at a high growth mode which means <hes> you know we build a scalable operation that enables us today to go out and launch almost any market that we view as attractive market and it's always a matter of privatization whether you want to be and whether the resources that you have to do that <hes> i can tell you that <hes> <hes> in the netherlands since you mentioned ultra but in the netherlands for instance since we have made an acquisition of a local company which had location in amsterdam notre <hes> and in bucharest because it's a growing market with a lot of talent and <hes> a lot of enterprise companies are moving into bucharest which is being extremely developed and we view that as an attractive market <hes> so you know every the market has its own dynamics and it's own reasons. It's not always the same reason for every market <hes> but at the end of the day <hes> we've had had a good opportunity in those markets that we found a suitable for what we offer. Are there <hes> we talked about the u._s. Are there any other markets that you're looking at moving into that you can talk about well look into continue expanding in europe and continue our extending footprint in the u._s. market so at the right right now the focus is on u._s. Europe and continue growing in his dan zika is co founder and c._e._o. Of mind space a global global boutique co working provider he spoke to us from his office in tel aviv and you can get more information about the different locations of mind space by visiting mind space dot m. e. Dan thanks for taking the time to talk to us about it. Thank you very much steve. It's been a pleasure will be back in a minute. Sean on this is rabbi richard address join us for our podcast series from jewish sacred aging entitled seekers of meeting will explore some of the issues in events that impact packed ourselves our families and our jewish world at large in light of the current revolution in eighty the secrets of meaning podcast airs every friday morning at eight a._m. At jewish wish sacred aging dot com today. You can't wait for the media to cover your company. You have to be the media. Take advantage of the power of audio and video. It's the best way to showcase your expertise to perspective customers. Let the luebeck in media companies handle the technical side. We're award winning audio and video producers. We can help you produce podcasts and video programs tmz remotely or in our fully equipped studio in cherry hill visit being the media dot com for more information <music> doug. Marshall is a seasoned commercial real estate professional for more than thirty five years. He's worked at mastering the art of commercial real estate investing while securing the best financing possible for his commercial real estate clients during the last decade he's also invested in rental properties throughout at the portland oregon area where he lives doug holds an m._b._a. From the university of oregon and in nineteen ninety nine he received the designation which many people consider better to be the p._h._d. Of commercial real estate in two thousand three he founded marshall commercial funding a commercial mortgage brokerage firm located in his town portland oregon. He's the author of a new book. It's called mastering the art of commercial real estate investing how to successfully build wealth and grow passive passive income from your rental properties and he joins us to channel about the book which is published by morgan james publishing doug. Your book is called mastering the art of commercial real estate state investing. What made you decide that <hes> there needed to be a book about <hes> how to invest in commercial real estate. Well steve. Thank you for having me on your you're. You're podcast. I greatly greatly appreciate the opportunity to speak with you today and to answer your question i started blogging blogging about twelve years ago and started talking on various topics that i thought were important to the real estate community and and two or three oriented ago decided that maybe it would be best to put together those blog posts into a book in so that's how i got started so one of the things you do in the book is to try to point out to people ways to build wealth and grow the passive income from rental properties. <hes> what is it about that <hes> that strategy that made you decide to let people in on the secret well first of all. I don't think it would be fair to say that there are secrets to my anything in my book. It's it's basically commonsense. Principles at all investors can benefit from and i believe the the real success success in investing in commercial real estate is the that it happens to be the best source of passive income that you can invest in today and passive income is what we really need in order to achieve financial freedom so tell us a little bit about the <hes> the tips. Is that your <hes> giving people. What are the five most important lessons may be. You've learned over the course of your career well. I would say you know the the best way of of of of going through that process is that is that <hes> <hes> there really are many things that i've learned over the years from my <hes> my clients i am a commercial mortgage broker <unk> by profession and i have noticed that they <hes> <hes> that my highly successful real estate investors do certain things the same way over and over again and <hes> <hes> i think the the <hes> the have first of all very simple approach to with the numbers they don't go through <hes> <hes> a convoluted way of of figuring out whether they they wanna purchase a rental property so they have a fairly simple approach and <hes> that in itself is a great step up in the right direction so when you're advising people of the kinds of <hes> commercial property's they should be considering for individual investment. What are the sectors that you like the best and <hes> talk a little bit about how they generate the passive income. You're talking about in the book. Well personally the way i i like to invest in in apartments but you can invest in any type of income producing property that <hes> that you find of interest to you but the vantage of going with apartments is that you have <hes> a higher probability of of keeping a an apartment occupied the high vacancy. If you have twenty or thirty or more unit soon to be concerned as much about vacancies consume one or two people happened to move out <hes> are there other kinds of properties that people can look at <hes> in your mind at that that makes sense for individual investors call absolutely i think office retail industrial are are are excellent the property times as well. One of the things you talk about in the book is that <hes> people end up being afraid to pull the trigger on on actually buying the property. What do you think is the reason that that happens. The primary reason his fear steve and there's really two types of fear that that people aw i have a problem when one is the fear of failure and the other one's the fear of the unknown fair failures all about it's all about having a mindset of you win or you lose and reality what we need to to to create as a a mindset of winter you learn and everything that we do we either make the right decision and we can kind of do the happy dance be thankful that we did our we learn what not to do so that the next time we can we can <hes> have a better outcome and i think that if we could change our mindset from you you win or you lose goes to you win or you learn. It makes a big difference. The other aspect is <hes> on the side of you. You have that fear of the unknown and a lot of times people can get over that fear of the unknown by asking five questions before they purchased their first rental property so i'm glad you you mentioned that because i wanted to ask you about the five steps you you talk about five basic decisions that people should be prepared to make yes. The first one's a really simple one in that. Is you want to be an active or a passive investor and an active investor is someone that makes all the decisions about the property the end the investors. Let somebody else make all those decisions but if you wanna be a passing investor then on really you're you really only have one the question that you need to answer. And who do you want to have. Is your real estate sponsor or maybe a better way of putting it as a who. Do you wanna trust with your money and if you wanna be a <hes> an active investor then you have three other questions that you need to answer in the first one is <hes> <hes> who do you you want any real estate advisory team you know who do you want helping you to going forward making a good wise decisions for you. Who's counseling you and then who who will be <hes> an and then <hes> secondly how the property be financed then thirdly how it be managed and if you answer those three questions the the fear of the unknown significantly reduced because you've just answered three very critical questions about your future rental property so those are the five five questions and it begins with whether you want to be an actor for a pass investor when you look at the real estate market today the commercial real estate market <hes> and everyone that i talked to seems to be very optimistic about how things are going to go the rest of the year <hes> and over the next maybe eighteen months or more <hes> what's your sense about the economic outlook and what are the things that you keep an eye on <hes> that potentially potentially could be red flags for the economy and for decision making well. I think that we have to figure out where we are in the real estate cycle at this particular point in time. I can't speak for the entire country but in the pacific northwest we are are real estate market probably ably picked a couple of years ago and now we're kind of on the downward cycle. It's still a good market. Don't get me wrong but it wasn't as good as it was. Two or three years ago or we saw double digit increases in in an iran's and we saw very very very low vacancy and everyone was <hes> who who was in in the real estate market that timeless doing exceptionally well and now things have changed. There's been new products on the market. <hes> vacancies are up a a bit and <hes> we're seeing a moderation rants and because of that <hes> we've peaked in the marketplace and and going forward. I'm i'm still buying rental properties. I bought a fact of actually purchased two this year but it becomes much more difficult today to be able to find and <hes> those properties than it was <hes> several years ago and so you have to be more cautious from that standpoint you you work primarily in the field of commercial funding. I guess and <hes> people do make mistakes when it comes to financing investments what are some of the common and mistakes that you see and what are the tips that you give people to avoid those mistakes well many times. I see people going back to their existing lender. Which is nothing wrong with that except that they should. I be checking out what other lenders can offer. I mean the chances of that same lender. After having the best rates and terms in the market are pretty are pretty <hes> <hes> <hes> unlikely and other big mistake is that a lot of people that kind of aren't the first stages of buying a rental property many times will use their residential mortgage broker her and a residential mortgage broker is clueless when it comes to financing commercial realistic and they need to define a qualified <hes> commercial mortgage broker that can help them out <hes> <hes> thirdly they try to finance the property without using a commercial mortgage broker and sometimes as penny wise pound foolish. They really really need to <hes> use that the experience of the mortgage broker because he he knows the lenders out there in the marketplace that are financing properties piece that <hes> that are similar to the one that <hes> this these people are are investing and so they need to use his services a really huge mistake though steve is. I've seen it where you gotta lender on board. They're excited about your property. They'd like to finance finance it and n. A. and the the borrower slowly dribbles the information into the lender or worse yet they might start arguing with the lender about the necessary necessity acidy of providing that documentation and <hes> you now. That's just a death now. You don't wanna do that that you never want to violate the golden rule of lending which is you has. The gold makes the roles and you have to be a pretty pretty. Well educated to keep an eye on these things <hes>. How'd you manage that that process if you're not a commercial real estate professional but just an investor who knows a bit about it well. I think it's all about doc putting together a real estate advisory team that can help you <hes> you need to have somebody that <hes> is a a real estate broker on your team that can provide you could council you need somebody probably on the property management side. You definitely need somebody who has a <hes> has the the lending running experience that can provide you good competent <hes> council and then you also <hes> you just need to have somebody that can goes through the property with you so that they can help you with identifying any deferred maintenance on that property at the time of purchase so that you know going in just how much money you probably going to need to do the the capital permits that are necessary so those are some of the the <hes> mistakes people make in the financing side. What are some of the pitfalls. They face <hes> managing the property well. I've noticed over the years is that the biggest mistake is really is. It's not managing your your your apartment apartment manager or your manager of your property if you have when you have an onsite manager you get what you inspect not let you expect and that's probably the the the number one thing thing that i see that happened. <hes> with most people there they <hes> do not <hes> oversee the the management of their property and other. They're one is for example. You might find a manager of a property who does not takes way too long to get a unit market ready and in a tight rental market like we have pretty much these days for every day. It takes to get ready for occupancy that it it takes money out of the pocket of the owner so i've seen more vacant units have stayed dirty and unreasonable for several weeks just because the onsite staff is not focused on getting that unit ready in in a timely fashion and i would also say that the other mistake that <hes> owners can make than regular basis is not a paying their employees as well. A good employ is worth his weight in gold and i really mean that <hes> it's very very true i <hes> in a previous life was a manager of about seminar units in atlanta nashville and <hes> thing that i learned most steve was that <hes> her that the the young son heroes of of <hes> of real estate are the the onsite property managers they can make or break you we talked about the property types that <hes> and you say it's pretty much across the board <hes> that people can be looking at different property types in the commercial marshall space. What about geographies. Do you have any particular geographies that you prefer over one over the other or <hes> can people find good values investing in pretty much any geography. I think the ch- that's a really important question from the standpoint that you you can find a good deal anywhere but i would i would highly recommend or caution your reader your listeners to <hes> to invest locally so i live in the pacific northwest. I try to keep my <hes>. When i purchase a property. I try to keep it within a couple of hours of where i live so i can go and dry by the property i get the opportunities to invest in other parts of the country country of arezzo in california and a few other places over the years and i've i've always said no because i need to have the ability ability to. I don't know the markets as well over there and i need the ability to actually go buy it and and and see how it how it looks from time to time time. I believe that you know what i've seen. Over the year. Steve is i'll come to a property to that's being purchased and <hes> have for my job today and the the buyers looking to finance this particular property and i looked to see i traveled to that property and i see that it's in horrible condition and i find out later that that property is owned by out of state owner and that can happen easily if <hes> if you don't have the ability to dry on regular basis because you're making way i too much your your your your your asset to somebody that may or may not be looking out for your best interest so it's important in my opinion to <hes> to invest within a short distance from where you live doug marshalls see i._m. Is the founder of marshall funding funding in portland oregon. He's the author of mastering the art of commercial real estate investing how to successfully build wealth and grow passive income from immu- rental properties gets published by morgan james publishing doug. I appreciate you taking the time and we wish good luck with the book and i'm sure we'll talk to you again at at some point. Well thank you very much. <hes> steve for having me on your show pen. That'll wrap things up for this edition of the c. r. e. news hour you can send your comments suggestions story ideas to steve at st broadcast news dot com you can leave an audio comment for us using the voicemail smell icon on the homepage at st broadcast news dot com and we tape this program in studio a at st broadcast news in cherry hill new jersey join us again for the next episode of the sierra news our next friday at eight a._m. Eastern time at st broadcast news dot com or wherever you get your podcasts. This is steve lebron. We'll see you out there on the net. Take good care <music>.

chicago green bay Tom tom smith philadelphia co co founder doug marshall steve dan zika green bay packers wisconsin europe microsoft cherry hill craig co-founder
Full Episode: Monday, February 8, 2021

Nightline

17:18 min | 3 months ago

Full Episode: Monday, February 8, 2021

"Thanks for joining us with this country. Facing a racial reckoning a group of young people inspired by social justice and their diverse backgrounds hoping to change. What's taught in history class by themselves. Here's abc's deborah roberts. Some things from the social justice committee for the average high schooler. these days live is mostly abound. Good grades the latest tiktok and fitting in the wanted to look on some college courses to kind of go along with our african american studies course but for eighteen year old michaela also about making a difference. What do you want to reform in your educational experience. There's definitely a lack of education of african american history. You're out ours school system. The most you learn about africa history is during the month of february which is black history. Monday that it's limited to the civil rights movement and that's pretty much it. Unfortunately test for social justice erupted across the nation's last year. Many students space their own moment of racial reckoning in the classroom. Hey it's michaela. The other leaders of the african american culture club kayla in her classmates in new jersey change begins with a course correction in history. What specifically are you in the group asking for in the curriculum right now. Specifically we're asking for a mandatory african american studies course at the high school level last summer following the death of george floyd michaela in members of the african. American culture club formed the social justice committee. I thought isolated eventually. Those feelings of turned into action. The students organized juneteenth protests focused on education. Social media your black neighbors and friends to educate yourself you to take this kind of an activist approach. We were definitely inspired by the rising action across the nation. We just need voice in new flush for what we wanted. I'm honored to stand together with our students this afternoon. It was incredible what they were able to put together and they put this march together to stop the ignorance. Dr joseph malaj cherry hill native has been superintendent for six years as the adults. We have to make sure that we are physically there for them. And sometimes even if we are just standing alongside to make sure that they have the opportunity to speak if i can lend my voice my figure and my presence to that then. That certainly is my responsibility to do that. For now. booth highschools in cherry hill offer an african american studies course as an elective but the predominantly white school district may soon be the first in new jersey to make it a requirement. We have to teach it. We have to talk about it. History through the lens of white is or white. Americans cannot continue to be the dominant and singular peace through which we teach and again when we talk about folks of color it can't just be five or six individuals that children here about from elementary school through high school and needs to be all of our history. Black history is our history. I absolutely thought about. How could i help these students to bring with. They're asking us to life. The director of curriculum. Dr farah mahan recognizes the flaws in. Today's history courses. I think we have to move beyond courses. That really talk about how so. Many people of color were taken from their homes and from their countries and colonized and that we start to look at our curriculum not through a eurocentric perspective. But through a perspective that really highlighted black and brown excellence. She's been working closely with authors local professors and universities as well as students to design the potential course. What do our students know about my angelo and the significance behind malcolm x. Not just martin luther king. We are asking the students. tell us what. What part of history would you really like to see. Brought to life in this course that would be a huge change to make sure that all students not only had access to but that was part of their requirement just like any other requirements huge difference in how they see other people how they see themselves how they see their country and And that they have that sense of pride in us being so unique. In that way in fact some college students are expressing frustration with incomplete lessons in the high school. Classroom i was thinking stanford university sophomores. Jasmine win and caitlyn. Joe launched the campaign diversify our narrative in response to the black lives matter movement as well as their personal in high school growing up. It was a bit difficult to see that. I wasn't really represented in the classroom. And so i think it can be difficult. Not just for me as an asian american but honestly any person of color when they're growing up not really seeing yourself and your people portrayed in a manner that really reflects your rich cultural history and portrays you in a multidimensional way. We need to see diversity in education that represe created the student-led campaign organized with students across the country to help form new chapters within their very own districts to add different perspectives into our history and literature curriculums. Their original mission one book by and about a person of color in each school per grade level. We also have other chapters. That have started their own positions branching off that are actually advocating for things like the end of the school to prison pipeline and their respective district or getting police officers off campus. And so i think it originally started with this one book campaign but has now kind of sprawled into this much larger idea of like racial justice and educational equity on a larger level their campaign now reaching eight hundred school districts across the nation with more than five thousand organizers participating but with change often. There's pushback. I think a lot of the reason why there is backlash is a lot of people are uncomfortable when you try to change the status quo. Backlash is something this utah. School is familiar with the predominantly white charter. School is no longer allowing to opt their children out of black history month curriculum after coming under fire for initially giving families the option to do so the academy director mica hirokawa wrote on the schools facebook page. Yesterday we regret that after receiving request an opt out for him was set out concerning activities. Planned during this month of celebration ended this time. No families are opting out of our planned activities and we have removed this option. The fight to diversify lessons in the classroom has gone on for decades between nineteen sixty five in one thousand nine hundred ninety. Two hundreds thousands of black students from nearly a thousand schools and universities across the nation formed the black campus movement inspired by the black power movement demanding black studies progressive black universities and for diverse system of higher education. I think if we look throughout history it almost always comes from. The young people doesn't it. I think that in part is because they still still are so very idealistic and determined. That's why we have seen throughout history. Young people lead these movements back in cherry hill. A hopeful outcome is on the horizon. The vote to require the african american studies courses being to the school board later this month. If passed it could be mandatory for all cherry hill. High school students as early as this fall work is not just about next year. It's really about building our body of work and building a legacy for students. The only way that society has grown throughout the last few thousand years as the communities come together and support one another. This is not an individual endeavor and hoping for younger generations to have better experiences than us. Our thanks to deborah and coming up counting down to the start of an historic senate impeachments. Pro-trump insurrectionist storm the halls of congress. Last month now the us capital will be the site of another historic day tomorrow. The commencement of the second senate impeachment trial of former president. Donald j trump. It's been nearly three weeks since. President trump boarded marine one and left the white house for the last time. But this week the former president will be the headliner in dc once again as the senate launches his history-making second impeachment trial accused of incitement of insurrection. After his supporters violently stormed accountable on january six. They will be having this trial in the very same chamber that we saw violent mob storm a month ago with five people dead and more than one hundred reportedly injured house impeachment manager serving as the prosecutors will be leaning on videos like these from that day to argue that trump's own words show he bears unmistakable responsibility for the madness that unfolded fight. Like hell. and if you don't fight like hell you're not gonna have country anymore. They're going to try and tell a story and it's not just going to be about january the six. I think they're gonna start from before the election when the president sort of warm people up to the possibility of fraud etc and it increasingly becomes more aggressive as time goes on in a brief filed. Today the former president's defense team says his talk was political speech protected by the first amendment and ten thousand words spoken. Mr trump used the word fight a little more than a handful of times. They are calling the trial an act of political theater. A recent abc news ipsos poll found that a narrow majority of americans support convicting the former president and barring him from holding federal office again trump has denied the allegations through his lawyers and his called the impeachment trial unconstitutional forty-five republican sender sided with mr trump last month. Calling his trial unconstitutional. Because he's no longer in office. The senate voted on the motion to dismiss the trial but they lost the notion that this entire proceeding is unconstitutional. A bit of a long shot. It's not frivolous but it's in a court of law would likely be losing our in recent weeks. Many high profile. Republicans have called the trial counterproductive. Like senator marco rubio on fox news. We already have flaming fire in this country. And it's like taking a bunch of gasoline and pouring it on top of the fire. The republican party is having this internal struggle within their party because they are looking at the seventy plus million people who voted for former president donald trump and they know that in order to win back the house in order to win back the senate. They're to need that base yet. There's a small but growing number of republican lawmakers who are arguing that their party needs to be done with trump. once and for all like senator. Ben sasse on meet the press. Politics isn't about the weird worship of one dude and on fox news representative liz cheney. Who broke with her party and voted to impeach trump in the house. Also distancing herself that is a person who does not have a role as the leader of our party going forward. Trump's lawyers plan to argue that when trump used the word fight in that speech he made on january sixth. Don't fight like hell. You're not going to have a country anymore. He meant it figuratively. You can make an argument that other people have used language like fight like hell and what they meant is finding the courts and fight in the political arena. That fight doesn't necessarily mean violence and that's true and that's why it's going to be so important for the house managers to present but that was just one piece of the story and you're sitting at the capitol and telling people that they're election was stolen from that and then using the words fight like hell now it becomes a much more potentially inflammatory comments then looking at it in avec prosecutors will be laying out their case to their colleagues in the senate who are serving as the jury many of whom witnessed the events of january sixth firsthand reporting live outside of the capitol on january six watching witnessing firsthand hand when violent mobs stormed the building from all sides it was absolute chaos in this video from the new yorker. The mob is seen roaming the halls searching for party leaders. Some on the video say they were there. On the president's order flow we talked to a few of trump's supporters. Who told us that. They felt like they were following. The president's lead nearly two hundred insurrectionists have been charged since the attack including the so called cunanan shaman jacobs chancellor whose lawyer argues trump incited his client's actions. He walked down constitution avenue and entered the capital. He was there at the invitation of and replenished of our president of the one hundred eighty two accused rioters facing federal charges for their involvement the capital. Abc news has identified more than a dozen who have said they were just doing what. President trump wanted them to do jenna ryan of texas said exactly that to the local station k. Tv t. i thought. I was following my president. I thought i was following what we were called to do. How did president. Trump's lawyers get around the videos and the statements of the rioters themselves. I'm basically implicating president trump in inspiring them. I think president trump's lawyers. We're gonna say we didn't tell those idiots to go commit crimes. I think they're going to want to distance themselves as much as possible. And the people who committed violence though both democrats and republicans are bitterly divided in their views on the impeachment. There is one thing they do seem to agree on. That is the need for a quick and speedy trial. Democrats want to get this over with quickly so they can start moving forward with president. Joe biden's agenda and then you have republicans they're also trying to focus on the future and both sides can only do that after they close this chapter. Finally tonight serving tradition and attribute. Here's abc's janai. Norman in the heart of houston is lucille's enjoy the soul of the williams family legacy souls my great grandmother. We named the restaurant after her. She's a chef. And a pioneer that created the first instant hot roll mixing the country and also set up the first commercial culinary educational program in the country through prayer university. Her products were featured on american airlines for their first class passengers. The amazing roster of clients. Everybody from martin luther king eleanor roosevelt. To joe louis and at the heart of lucille's is owner and chef. Chris williams the man behind the restaurants food paying homage to the matriarch. When the pandemic i hit williams wanted to help we served over three thousand first responders in healthcare workers since then he's helped create lucille's nineteen thirteen a not to ear his great-grandmother launched her catering business. It's a community collective involving a network of farms markets and kitchens that hopes to combat food insecurity and create employment opportunities. The migrate grandmother. Could see what we're doing today. Seriously be nothing but happy force. Thanks to geneva and to our friends at our abc houston station ktar k. As well as our abc localish friends for first high leading this story. Nightline we'll see right back here at the same time tomorrow. Thanks for staying up with us. Good night america.

social justice committee cherry hill michaela deborah roberts african american culture club george floyd michaela American culture club Dr joseph malaj cherry hill booth highschools white school district senate Dr farah mahan trump President trump new jersey white charter mica hirokawa Donald j trump kayla abc
Ask The CLO 03/18/21

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Ask The CLO 03/18/21

"It's women's history month and kohl's is proud of the talented women who make a difference every day at kohl's like the women who make up their kohl's diversity design council a group that includes female designers who've developed a special product line promoting the empowerment of women but calls isn't just elevating this generation of women there elevating the next generation to kohl's invested one hundred thousand dollars in the smart girls program part of the boys and girls clubs of america to help club members navigate at elections. Learn more at kohls dot com. Why do you get deja vu. Why are you attracted to symmetrical faces. Why do you listen to songs. A bomb you out. I'm desa the host of new podcast deeply human. When you cry. It can sometimes like help. You irrigate your emotions. You're attempting to induce deja vu through virtual reality and finding out what we all want to know. Why do you do what you do. Deeply human a bbc world service and american public media. Co-production with iheartmedia. Listen on the iheartradio app on apple podcasts. Or wherever you get your podcast time. Now for the l. o. Chief love officers steve harvey in the building. This one is from winston in augusta georgia. Winston says i'm a huge fan of ladies basketball and my ex girlfriend is a coach of a great college team. I've been with my new girlfriend for close to two years and when we met. She tried to keep me from going to the games. I don't make all of them when i do go. My girlfriend has an attitude for a few days. I invite her to go with me to every game. But she refuses to go. Because of who the coaches am. I wrong for going to the game of his ex-girlfriend stupid. Thank you go to games because your ex girlfriend. It's like she don't think that's why you enjoying the game then then hamby. Wnba is a great product. I love watching them. Sisters ball they begin after man them girls the hoop and man. I will put them girls a lot of boy teams. I see them girl charleston. The understand they don't have a hops that guy's got but to put the skill set is great. You you not going down there and see no damn game. Outfielder chose to get a pack of wisdom cigarettes going and just spoken with local news. Which all right verandah in cherry hill new jersey said. I'm in my early thirties. And i'm about to get married. But i can't stand my fiance's twins brother he pranks to me one day and i ended up saying some pretty bad things about his wife. Because i thought i was talking to my fiance. My fiance brothers said it's all good and they. They never tell us what i said but i don't trust it. Should i tell his wife what happened. So i won't end up in some mess with my future sister-in-law dorando don't be stupid. They said they'd tell. Why would they tell you. Why would you go and tell you. And i don't like talking to nobody. That has the same name of one of the clock system because they asked. What's being just mess right here. So great name name to render like you wanted to be got in this mess right here. I don't do fake singles. This show all right tonya. Tenure in missouri says I'm a foster mother to a four year old boy and my husband is on cloud nine because he's always wanted the sun. We had our daughter when we both forty so that was it on us. Having children my husband wants to adopt the boy. But we're fifty two years old now. And i don't want to start over with raising another child. The boy is his cousin's baby and she's been given a lengthy jail sentence. Someone in the family has to raise this little boy. I just wanted to be us. Am i being unreasonable. Well no fifty. Two and i understand that it's hard taking kids fifty two. Why didn't you get after foster care programme. See you can't be in a false takeda foster care now. You got boy now. Your husband is excited about it. Now you don't want to know fourth. Where'd you taking me in full Family not necessarily the systems it's fam- oh rela tour. She got a problem with today on family members. Because yes don't like day so you don't do not like yes. Awesome awesome anybody. I don't like have babies. They come round beat. Baby get into college right over you stupid children. He you stu stupid parents race stupid children all the tenant anymore. You'd like to add to that. Ceelo roy of name is tanya. I knew right away. She was nobody tom yet. You're gonna love this name. Steve flory and tuscaloosa flurry says. I need some advice slave to meet some advice on this guy. I'm dating. He's seventy three and i'm close to his age but a little younger. He's been a little distant lately and he said he can't take me seriously until we take our relationship to the next level. I told myself. I'd never go all the way with another man after my husband passed. I'm attracted to the new guy. But i'm just not ready mentally to live with another man. I reverted to my teenage years. When i was unsure about having sex for the first time what should i do in this case. He sent me to be built as you having flashbacks to when he was a teenager. You're not the case. See this ninety days. Wounded i created does not apply to seventy people get an when all videos. I wish you do. I hope we live alone. Healthy life but after your husband died you said you'd never sleep with another man. Well what are you dating. And he and he wanted to take to the next hit a heretic. He's seventy three thanks. What are you saying. What what what does she want to do. I can't make custody with this man. She don't wanna sleep demands she don't have to. What is you saving it. Wait till on eighty eighty six best. Bet i take that. Get in vegas but i just have no desire to be a wait. Wait till we he seventy three. He already know he. An plus you need to check as medical records. He might know some he and he could be inherited for medical. Well she said what should she do asked what she should do. You tell them how to go for it. What you life. Sure you're saving is. Yeah all right well. Thank you c. l. o. Great advice as always always when we come back coming up next the nephew run. That brings back right after this. You're listening to morning show. It's finally spraying and i'm saying goodbye. Snow hello adventure and during the honda dream garage spring event. You can get epic deals on your favorite honda model ready to get rugged and take the off road in an all wheel drive honda. Suv like the crv hr v. pilot passport or redesigned rich. I want to take a spring rotor. Checkout fuel-efficient turbocharged. Civic or court said goodbye a winter and hello to a new honda. Don't miss huge savings during the honda. Dream garage springbok now at your local honda dealer. I've got one word for you. Tom cruise on this new weekly podcast meeting tom cruise. We're gonna talk about tom cruise. Everyone who's met him is an amazing story to tell. Hey everybody i'm jeff nietzsche. Tv's blackish. I'm joel johnston from the marvelous. Mrs maisel er inspired by. Tom cruise. Believe never actually met tom proofs but after we talked to some people who have maybe we finally will. It's not impossible. Listen to meeting tom. Cruise on the iheartradio app apple podcasts. Or wherever you get your podcasts.

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