Features

2015 Was Record-Setting Year for Student Housing, Says FourPoint

by Katie Sloan March 29, 2016

AUSTIN, TEXAS — With approximately $4.8 billion in total sales volume and 133 individual transactions, 2015 has become the highest sales volume year in the history of the student housing sector, according to a year-end report by Austin-based brokerage FourPoint Student Housing Investments. The sales volume seen in 2015 surpassed the previous sales volume record — set in 2014 — by over $1 billion. Last year also saw a spike in pricing compared to 2014, with price per unit, per bed and per-square-foot all seeing a surge throughout the year. Much of this increase can be attributed to location. A large percentage of the product being delivered is located in core, urban areas with high rents and high development costs in order to maintain walkability to universities. The convergence of low U.S. Treasury rates and increased desire for student housing resulted in some of the most expensive trades and lowest capitalization rates ever recorded, according to the report. CMBS lenders continue to play a significant role in the overall capital markets space as well, as many of the CMBS-financed assets reach loan maturity. Congruently, many owners will put value-add properties up for sale, seeking to divest in a seller’s market. …

March 29, 2016

Features Georgia Hospitality Southeast Top Stories

Hospitality Experts Offer Five Tips for Running a Successful Full-Service Hotel

by Christina Cannon March 24, 2016

ATLANTA — When it comes to successfully operating a full-service hotel there is no silver bullet for achieving success, but there are some smart steps owners and operators should take, say industry experts who spoke at the 28th annual Hunter Hotel Conference. The three-day event at the Marriott Marquis drew 1,300 attendees, up 8 percent from a year ago, according to conference organizers. In a panel titled “The Evolution of Full-Service Hotels,” professionals from Horwath HTL, GF Management, Davidson Hotels and Resorts, Legacy Ventures and Hyatt Hotel Corp. emphasized time and again that full-service hotels are in no way dying. They are simply evolving, and owners and operators must also evolve if they have hopes of being successful. “It’s still a street corner business,” said Thom Geshay, senior vice president of business development for Davidson Hotels and Resorts. “You have to look at the market you’re in, you have to define and profile your customer and give them what they need.” 1. Get Creative in Controlling Costs — Full-service hotels have a slew of amenities, and each amenity presents a new place to create revenues. “Our job is to find something that is broken or not maximized in some way …

March 24, 2016

Sonesta-Hilton-Head-Sims-Patrick-Studio-Interior-Design

Features Hospitality Southeast Feature Archive Top Stories

Coordination Between Hotel Renovation Team Members Is Key to Achieving ‘Wow’ Factor

by Haisten Willis March 22, 2016

ATLANTA — There are many moving parts when refreshing or renovating a hotel property, and the key is engaging everyone involved early and often. This was the message delivered on St. Patrick’s Day, March 17, by a panel of hospitality experts during the 28th annual Hunter Hotel Conference held at the Atlanta Marriott Marquis. Titled “Design to Inspire: Creating the Unexpected,” the breakout session featured a four-member panel that included Libby Patrick, president of Atlanta-based interior design firm Sims Patrick Studio; Bethany Warner, director of design management for Starwood Hotels & Resorts Worldwide; Sam Cicero Jr., president of Plainfield, Ill.-based Cicero’s Development Corp., a general contractor specializing in commercial renovation; and Alan Benjamin, president of Boulder, Colo.-based Benjamin West, a furniture, fixtures and equipment (FF&E) purchasing firm. Johnathan Nehmer, chairman and founder of Rockville, Md.-based architecture firm Jonathan Nehmer + Associates, served as moderator. The session was the first design-focused panel in the conference’s history. “How do we create the unexpected in design?” asked Nehmer. “How do we put that ‘wow’ factor out there and what role does design play in the hospitality experience? What we’re going to talk about today is how designers and contractors and purchasing agents do that.” …

March 22, 2016

Features Heartland Feature Archive Loans Top Stories Uncategorized

Chicago Mortgage Banker NorthPoint Capital Leverages Strengths to Enhance Market Penetration

by Christina Cannon March 21, 2016

When CEO Keith Volgman made the decision a year ago to expand his loan origination business, NorthPoint Capital, the Chicago-based mortgage banking operation began the search for the ideal candidate to spearhead that effort. Volgman’s objective was to leverage NorthPoint Capital’s highly competitive, long-term correspondent lending relationships to benefit a larger number of Midwest property owners. Charles Krawitz, who has more than 25 years of experience in commercial real estate finance, turned out to be the perfect fit. After all, Krawitz had a proven track record of boosting deal volume based on jobs he previously held at KeyBank, LaSalle Bank and elsewhere. Last May, Krawitz officially became COO of a new entity, NorthPoint Capital Funding. Operating from the company’s office in downtown Chicago, Krawitz oversees the expansion and training of the loan origination staff. His charge is to grow the scope and scale of the firm’s lending relationships across the commercial and multifamily landscape. While there is no shortage of lenders chasing product in today’s market, money doesn’t flow evenly, observes Krawitz. “It doesn’t necessarily flow into neighborhood assets the way it flows into the institutional space. It doesn’t flow into the rural markets the way it flows into the …

March 21, 2016

State of the Industry Hunter Hotel Conference

Features Georgia Hospitality Southeast Top Stories

Hotel Experts Preach Opportunistic Mindset at Hunter Hotel Conference

by John Nelson March 17, 2016

ATLANTA — Too often hoteliers are so immersed in executing their business plans they miss golden opportunities that suddenly arise, according to hotel experts speaking at the 28th annual Hunter Hotel Conference. During the “State of the Industry” panel, executives from Blackstone, Starwood Capital Group, Rockbridge, MCR Development LLC and Apple Hospitality REIT took the stage to discuss opportunities they see in the marketplace. Tyler Morse, CEO and managing partner of MCR Development, said the lodging industry in the United States will present ample opportunities in the next couple years. “The hotel space in particular in the U.S. economy is going to be great in 2016 and 2017. The rest of the world is kind of a disaster,” said Morse. “Funds are coming to the U.S. as a flight to quality. The U.S. is where the growth is, and the hotel business is a beneficiary of that.” In a real-world example of being opportunistic, Brian Kim, managing director of real estate at Blackstone, spoke about how the firm’s recent $6.5 billion sale of Strategic Hotels & Resorts to Beijing-based Anbang Insurance Group Inc. wasn’t the original strategy for Blackstone. Having just closed on the Strategic purchase in December 2015, Blackstone’s …

March 17, 2016

Features Healthcare Top Stories

Duke Realty Identifies Five Healthcare Real Estate Trends to Watch in 2016

by John Nelson March 15, 2016

INDIANAPOLIS — What does the future hold for the healthcare real estate industry in 2016? In a new white paper penned by Keith Konkoli, executive vice president of healthcare at Duke Realty (NYSE: DRE), the author predicts the industry will experience an increase in the development of new facilities, as well as an uptick in consolidation in 2016. Here’s a summary of five key trends and issues the firm expects this year and beyond: 1. Healthcare real estate construction will continue to increase — Healthcare development has been strong in recent years, and there should be no letup in activity in 2016. A recent study by the American Institute of Architects (AIA) says it expects “healthy growth” for non-residential construction this year. That includes the healthcare sector, which AIA predicts will experience a 5.8 percent increase in construction in 2016. The industry is experiencing an uptick in the development of a wide variety of healthcare properties, including rehabilitation hospitals, medical office buildings and off-campus emergency rooms/community micro-hospitals. Even so, the industry hasn’t reached a point of saturation and providers aren’t yet overbuilding. 2. Healthcare providers will need to deal with the challenges of ‘site neutrality’ — An important but perhaps overlooked …

March 15, 2016

InterFace Seniors Housing West Conference, Los Angeles

Conference Coverage Features Top Stories

InterFace Panelists: Seniors Housing Industry Faces Stiff Competition from Each Other, Multifamily Developers

by Jeff Shaw March 10, 2016

LOS ANGELES — Investors of all types are clamoring to cash in on the Baby Boom generation, as this aging population readies to kick off a 20-year need for care and seniors services. That’s according to panelists at InterFace Conference Group’s Seniors Housing West conference, held March 3 at the Omni Los Angeles Hotel. Those looking for a long-term investment are betting heavily on the Boomer population, which is 76.5 million strong, with the oldest being 69 and the youngest turning 50 this year. “The first Boomers are only turning 70 this year,” said keynote speaker Lynne Katzmann, president and founder of Juniper Communities. “They have a decade to go before they need services, but they are today’s primary buyer.” Much of this demographic will have a strong understanding of seniors housing options by the time they need the services themselves, Katzmann asserted, because they will have been down that road before with their aging parents. With this in mind, Katzmann believes it’s incumbent upon the current developers and operators to not just offer the best in senior care, but to invest in their facilities and in client (aging parents and their children) education as well. “We must take action …

March 10, 2016

InterFace Net Lease conference, March 1, Omni Los Angeles Hotel

Conference Coverage Features Top Stories

Net Lease Investors Are Realists About Potential Changes in the Market, Say InterFace Panelists

by Jeff Shaw March 9, 2016

LOS ANGELES — The net lease market has, by and large, enjoyed a steady run post-recession. But many investors are entering 2016 with a sentiment that an uncertain future may lie ahead, according to panelists at InterFace Conference Group’s Net Lease West conference, held March 1 at the Omni Los Angeles Hotel. This sobering reality was inspired by a few factors, including a likely hike in interest rates, a bulk of CMBS loans coming due, a discrepancy in pricing between buyers and sellers, rising cap rates, the possible dissolution of 1031 exchange transactions and a bull market that has lasted longer than average. CMBS Wall Creates Opportunities for Buyers Gordon Whiting, managing director at Angelo, Gordon & Co. and a “State of the Industry and 2016 Outlook” panelist, believes now is a good time for buyers to begin infiltrating the market due to the girth of CMBS loans coming due. More than $300 billion is set to mature between 2015 and 2017, according to the Mortgage Bankers Association. Rather than refinancing, panelists noted some borrowers were choosing to sell ahead of maturity. “I have clients who have chosen to put their properties on the market because the debt is …

March 9, 2016

Features Retail Top Stories

Sports Authority Unveils List of 140 Store Closures

by Katie Sloan March 7, 2016

ENGLEWOOD, COLO. — Englewood-based Sports Authority Inc. has made public a list of 140 stores it plans to close in conjunction with the retailer’s move to file for Chapter 11 bankruptcy protection. Sports Authority has received access to up to $595 million in debtor-in-possession financing in conjunction with the Chapter 11 filing in the District of Delaware. The company has received court approval to begin liquidating stores with a portion of its $595 million bankruptcy loan. The decision to close stores follows a comprehensive review of the Sports Authority portfolio in light of the increasing amount of shopping that is occurring online, the company stated in a March 2 press release. “As a result of these changes in consumer buying patterns, Sports Authority determined that it needs fewer stores as part of its long-term business model,” according to the press release. (For more on what ultimately led the sporting goods retailer to file for Chapter 11 bankruptcy protection, click here.) The following store locations are set to close in the coming months based on a review of the court filing by REBusinessonine.com State City Address Arizona Casa Grande 1004 N Promenade Parkway, Ste 159 Arizona Mesa 1812 W Rio …

March 7, 2016

Conference Coverage Features Top Stories

Flexibility is King in the Future of Healthcare, Say InterFace Panelists

by Jeff Shaw March 3, 2016

LOS ANGELES — Healthcare providers are taking cues from the retail and hospitality industries and keeping an open mind. That’s according to panelists at InterFace Conference Group’s Healthcare Real Estate West conference, held March 2 at the Omni Los Angeles Hotel. The biggest lessons the healthcare industry has internalized, panelists noted, was making the customer king, remaining flexible and embracing technology — even if the future of that technology is uncertain. “The buzzword today is omnichannel,” said Andy Hoover, real estate manager for the California region of Providence Health and Services and a participant in the “Impact of Consolidation and Changing Healthcare Delivery” panel. “It’s more like retail today. It’s a customer-focused delivery model — essentially a retail delivery model. It’s a blend of physical and digital components. It’s really not what you put into it. It’s what the customer gets out of it and what they’ll pay for.” The healthcare system of the future is looking to integrate mobile apps that allow customers to refill prescriptions, make appointments, view test results and potentially even hold virtual visits with their physicians. Healthcare systems are also moving away from hospitals and campuses with long-held, negative stigmas surrounding them. “The medical office …

March 3, 2016

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