Features

Hunter Conference Recap: Hospitality Industry’s Run on Soft Brands Will be ‘Limited,’ Say Lodging Executives

by John Nelson March 28, 2019

ATLANTA — Somewhere between a branded hotel like Holiday Inn and a truly independent hotel lies the “soft-branded” hotel. These properties are pseudo-independent in that they don’t adhere to hotel brand standards but their owners can tap into the networks of established chains for resources like reservation software, loyalty programs and distribution channels. Owners franchise the hotel properties for a fee, but the operations and look more resemble an independent hotel, which is an attractive concept given how many travelers are looking for authentic experiences from their hotel stays. “Soft brands are the hot product in the hotel industry,” said Jeff Higley, vice president and editorial director of Hotel News Now/STR Global. Higley’s comments came during the 31st annual Hunter Hotel Investment Conference, which was held March 20-22 at the Atlanta Marriott Marquis in downtown Atlanta. The conference drew 1,850 attendees. Higley moderated a panel on the first day of the event that included executives from hotel brands and hospitality ownership and development firms. Evolution of soft brands According to lodging research and analytics firm STR, soft-branded hotels comprise a little more than 1.3 percent of all U.S. hotel rooms, but that figure is significant in that 11 years the …

March 28, 2019

California Features Lument Multifamily RED Capital Group Western

RED: California’s Southland Economy Loses Steam but Apartment Performance and Property Markets Strengthen; Cap Rates Decline

by Jaime Lackey March 27, 2019

Since the Baby Boom generation was in its infancy, Southern California has represented the apex of American popular culture, with its freedom, fun and limitless opportunity. But in the last few years the Southland’s place in the American imagination has been superseded to a degree by the digital prowess of its Bay Area and Pacific Northwest neighbors. Recently, the tide has begun to turn. While still wildly successful economically and culturally influential, the Bay Area, Seattle and Portland seem to be bumping into resource constraints that have dimmed their luster. By contrast, the Southland has found its stride, attracting increasing amounts of venture capital, building powerful digital and biotech platforms and proving a bit more adept than the cities to the north at finding space to facilitate economic and population growth. Venture capitalist Peter Thiel hasn’t been the only titan to notice. The impact on multifamily markets is palpable. Property sales volume records were shattered last year and cap rates fell to historic lows. Investors are increasingly embracing the value-add strategies popularized in lower-cost growth markets, driving prices of aging Class B garden properties higher and fueling faster rent growth in submarkets where the renter-by-necessity tenant predominates. Although increased supply …

March 27, 2019

Conference Coverage Features Retail Western Western Feature Archive

Key to Successful Retail? Know your Community, Says InterFace San Diego Panel

by Amy Works March 27, 2019

Being in tune with one’s self is always a positive thing — and San Diego seems to thrive at this. The county has such a keen sense of awareness that it even boasts a Self-Realization Center up in Encinitas. Knowing one’s identity extends beyond the spiritual world in this part of California, however. It is also a prudent retail strategy, as panelists at InterFace Conference Group’s San Diego Retail Conference, held March 19 at the Sheraton Hotel & Marina, attested. For retailers and shopping center owners, self-realization centers around your brand’s message. What’s your history? What are your core values? What story are you trying to tell, and what lifestyle are you trying to sell? These answers are important, as they will likely determine your physical location and potential success with that San Diego consumer. This, naturally, also means that retailers and shopping center owners must be just as knowledgeable about their consumer and submarkets as the consumers are about themselves. “We have to go back to the fundamentals that every property is different, every submarket is different,” said Pat Donahue, chairman and CEO of Donahue Schriber and a developer panelist. “We’re in a world where mall operators wanted to …

March 27, 2019

Conference Coverage Features Multifamily Seniors Housing Western Western Feature Archive

Has Seniors Housing Gone ‘Mainstream?’ InterFace Panelists Weigh In

by Kristin Harlow March 26, 2019

LOS ANGELES — Seniors housing has generally been considered a niche asset class with niche residents. After all, there are age restrictions, finite timelines for most residents, third-party advocates (namely, the senior’s family), elevated rental rates, highly trained operators, a limited selection of amenities and oftentimes residents with special needs. None of the above has changed in recent years. What has changed, however, is the onslaught of Baby Boomers inching toward that stage in life where seniors housing services can accommodate their growing needs. What has also changed is the larger investment community’s perception of this product type and its potential, noted Investment Market Update panelists at InterFace Conference Group’s Seniors Housing West event, held March 7 at the Omni Los Angeles. The amount of capital chasing deals was a theme throughout the day-long conference, with numerous speakers noting there just isn’t enough supply to keep up with demand. “Seniors housing and skilled nursing has all this capital chasing it because it’s suddenly not an alternative asset class,” said Talya Nevo-Hacohen, CIO of Sabra Healthcare REIT. “The perception is that this is suddenly mainstream.” Panelists expressed concerns that this sudden interest may entice the wrong type of investors — and …

March 26, 2019

Conference Coverage Multifamily Western Western Feature Archive

InterFace Panel: San Diego Leaves Multifamily Investors Wanting More

by Amy Works March 22, 2019

SAN DIEGO — Multifamily properties in San Diego are in high demand — and not just among Millennials and empty nesters who long for convenience, walkability and beautiful ocean views. Panelists at InterFace Conference Group’s San Diego Multifamily Conference, held March 19 at the Sheraton Hotel & Marina, viewed this market as a hot one… if you can get in. “There hasn’t been a ton of multifamily transaction activity in San Diego,” said Aldon Cole, senior managing director at HFF and moderator of the “Who’s Lending?” panel. “It’s an interesting market that we’re all trying to navigate. We have to adapt in a low-trade environment.” San Diego’s reputation for being a stable market and one where people want to be are two of the factors contributing to this lack of opportunity. “During the last downturn, San Diego was the most stable market,” noted Mark Gleiberman, CEO of MG Properties Group and Developers/Owners panelist. “It always tends to be one of the most stable markets that we’re in. It’s not totally resistant to a downturn, but San Diego tends to fare better in most recessions than other markets.” Desirability paired with strong market fundamentals has created a very competitive landscape among …

March 22, 2019

Features

Integrating Entertainment Into Retail Destinations — It’s More Than Just a Movie Theater

by Katie Sloan March 21, 2019

The perception versus reality of the “demise” of traditional retail has long been disconnected. Much of this disconnect is centered on a misunderstanding of retail’s role in the lives of consumers. Today, the role of retail centers is increasingly based upon giving consumers what they demand — entertainment-focused experiences that they can’t get elsewhere. This goes beyond adding a movie theater or bowling alley. Entertainment finally has a real seat at the table in retail development. So how can developers, owners, and tenants make the most of it? The answer lies in selecting the rightentertainment uses and scale for particular locations. To do this, owners and developers must carefully and strategically approach today’s entertainment and experiential trends. From evaluation of demographics to selection and utilization of space, the smartest retail stakeholders can deliver successful experiences and achieve strong returns, provided the experience is planned and managed correctly. Changing Consumer Demands Driving Experiential Trends Statistics reveal that over the past several years, millennials have been spending far less money on luxury products than their predecessors — and nearly three-quarters of the generation would rather spend on experiences than things. This is driven by a combination of factors, including more mobile lifestyles that are increasingly facilitated by technology, …

March 21, 2019

Features

February Jobs Report Falls Flat, But Was It An Aberration?

by Jeff Shaw March 19, 2019

Was the unexpectedly weak February jobs report a blip or an inflection point? Most economists say it’s way too soon to sound the alarm bell, but they’re closely monitoring trend lines. U.S. employers added 20,000 workers in February, according to the Bureau of Labor Statistics (BLS), far below the 180,000 projected by economists and a stark contrast to January when businesses added 311,000 jobs. Meanwhile, the national unemployment rate dropped two-tenths of a percentage point to 3.8 percent, one of the lowest levels in the past 50 years. Ryan Severino, chief economist for JLL, describes the disappointing headline number in the February jobs report as an “aberration,” and advises the commercial real estate community to avoid reading too much into one data point. “Nothing in the broader labor market data suggests a slowdown of this magnitude. It likely represents a payback from exaggerated strength due to weather effects in January,” says Severino. “One data point in isolation means nothing, especially given the propensity of the numbers to be revised and the fact that the confidence interval for these estimates can be significant.” Ken McCarthy, principal economist and senior managing director at Cushman & Wakefield, says that beyond the weather, another …

March 19, 2019

California Conference Coverage Features Healthcare Western Western Feature Archive

Healthcare Real Estate Investors Choose to Diversify in Face of Fever-Pitch Property Demand, Say InterFace Panelists

by John Nelson March 14, 2019

It’s a highly competitive environment when it comes to healthcare real estate out West, so say InterFace Conference Group’s Healthcare Real Estate West panelists. One of the central themes of the day-long conference, which was held March 6 at the Omni Los Angeles and attracted 219 attendees, was the pent-up property demand from investors. However, most panelists agree the opportunities are somewhat limited due to a lack of new product and the long-term holding pattern many healthcare investors have adopted. “You have all this demand, yet transaction volume is staying flat,” said Darryl Freling, managing principal at MedProperties Realty Advisors and moderator of the 2019 Outlook panel. “Where’s the bottleneck? So much is held by healthcare systems and they’re not letting go because clearly there’s just so much demand.” Shane Seitz, fellow panelist and senior vice president at CBRE, doesn’t see this level of trading picking up, at least not with the current healthcare supply. “REITs don’t get incentivized to turn over their product,” he noted. “They buy and hold. They treat it just like the nonprofit health system does. They want to have it forever. We also have foreign and domestic groups coming in. They historically invest in funds, …

March 14, 2019

California Conference Coverage Features Seniors Housing Western Western Feature Archive

ProMatura’s Wylde: Seniors Housing Must Get Back to Basics

by John Nelson March 12, 2019

LOS ANGELES — Bells and whistles may be a distracting way to get a prospective seniors housing resident’s attention, but Margaret Wylde, CEO of ProMatura Group, believes they can take away from the core purpose of providing a safe, welcoming environment for seniors. “We spend so much money in this industry on amenities that people will never use,” she said. “People want a place they can call home. A place they can live in. A place where they don’t have to hide their things. We can cut out some amenities and invest more in rentable space and give them a better home to live in.” Wylde made the comments during her keynote address at InterFace Seniors Housing West, held March 7 at the Omni Los Angeles. The audience for her address was nearly 300 seniors housing industry professionals. The latest data from Mississippi-based research firm ProMatura notes that amenities aren’t identified as a priority to seniors, though they can make their families feel optimistic about a facility. The actual residents are focused on the type of unit, floor plan and price. “Gardening areas, libraries — they don’t help,” said Wylde. “It’s not about how much we can cram in to entertain. …

March 12, 2019

Features Multifamily Student Housing

Joe Stepchuk’s GSE Background Helps Greystone Boost Student Housing Lending Volume

by Kristin Harlow March 7, 2019

The student housing sector continues to benefit from strong investor and consumer demand. Total annual deliveries nationally have averaged approximately 47,000 beds this cycle, according to data research firm RealPage. Proximity to campus is a major differentiator in student housing, as properties closer to campus historically have greater pre-leasing velocity and higher rents. Industry experts say that despite the current wave of construction, most college students live in dormitories or in rental housing near campus that weren’t designed to house students. That means the sector still has room to grow. During the recent MBA 2019 Commercial Real Estate Finance/Multifamily Housing Convention & Expo in San Diego, REBusinessOnline sat down with Joe Stepchuk, managing director of student housing lending for New York City-based Greystone, to gain his insight on the state of the market. Stepchuk joined Greystone in 2016 from Fannie Mae, where he served as director for 10 years and oversaw $3 billion in annual multifamily loan production. As a father of five children, including twins, Stepchuk is also a consumer of student housing. One of his children attends the University of Florida in Gainesville, another is at Xavier University in Cincinnati. REBusinessOnline: How did 2018 play out for Greystone …

March 7, 2019

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