Southeast Feature Archive

LED Lighting: An Amenity With Immediate Payback for Office Owners

by John Nelson July 25, 2019

DURHAM, N.C — The term “environment” is typically thought of as being strictly outdoors, but for office owners, investors and tenants, the interior of office buildings is an environment unto itself. And like planet Earth, an office environment needs investment in order to protect its inhabitants. “We believe the workplace, where employees spend eight hours a day or longer, must provide a healthy and stimulating interior environment,” says Dan Goldstein, managing partner with Accesso Partners LLC of Hallandale Beach, Florida. Goldstein, whose 15-year-old company owns Class A office towers spanning 15 million square feet in major U.S. cities, contends “it makes good business sense to invest capital in an interior environment where employees are productive, efficient and above all, healthy, which cuts down on illnesses and absenteeism and contributes to job satisfaction.” Accesso Partners is doing more than just preaching. In Durham, the institutional commercial real estate fund recently installed a new lighting solution at its 10-building, 690,520-square-foot space within the Meridian Corporate Center, which is adjacent to the famed Research Triangle Park. The result has been brighter offices that are easier on the eyes and more conductive for close-up, meticulously detailed work. There is also a flipside to that …

July 25, 2019

Features Florida Net Lease Retail Southeast Southeast Feature Archive

Collaboration is Key for 1031 Buyers to Avoid Missteps, Tax Obligations for Single-Tenant Net-Leased Retail Assets

by John Nelson July 23, 2019

Single-tenant, net-leased properties (STNL) are among the most sought-after investments in the market, and over 40 percent of all STNL properties acquired are purchased by investors in a 1031 exchange. Finding the right properties can be challenging and competitive, and factoring in the time restrictions of a 1031 exchange further complicates the issue, particularly when deals can be derailed for a myriad of reasons. Many of these pitfalls can be avoided or limited by leveraging a team of well-versed experts, from property brokers to tax professionals, reducing the odds of an investor getting shouldered with a hefty tax obligation. An infrequent but potentially catastrophic event that can derail a 1031 exchange is a tenant exercising a right of first refusal (ROFR). Approximately one-in-five leases include such a provision, and most tenants infrequently take advantage of the opportunity. Experienced real estate professionals often know which occupants tend to favor acquiring their buildings when given the opportunity. Corporate-owned McDonald’s restaurants are among the most frequent tenants exercising a ROFR when presented with the chance. Although targeting these deals does not automatically derail a 1031 exchange, having a viable backup property is important in these situations. Other hurdles can derail a flawlessly executed …

July 23, 2019

Features Multifamily Southeast Feature Archive

Dodge Data Economist: Multifamily Development Wave Has Lenders Wary

by Kristin Harlow June 24, 2019

ATLANTA — Lenders are understandably exercising caution when it comes to financing multifamily housing development projects, says Robert Murray, chief economist for Dodge Data & Analytics, which tracks construction starts across commercial real estate. “Notwithstanding the pickup in activity we had in 2018 and notwithstanding the fact that millennials are still looking at apartments as opposed to single-family homes, we view multifamily housing as one of the more vulnerable parts of the construction industry right now.” The insights from Murray came during his mid-year outlook presentation before approximately 60 people who gathered at Le Meridien Perimeter in Atlanta on Friday, June 14. The attendees were largely building product manufacturers, with additional representation from financial services and construction staffing services. In 2018, construction starts in the multifamily sector totaled 534,000 nationwide, according to Dodge. The projection for 2019 is 495,000 units, which would equate to a 7 percent decrease. As for 2020, the decline could be as much as 15 percent, according to Murray. The national apartment vacancy rate for the first quarter of 2019 stood at 4.8 percent, up 10 basis points from 4.7 percent a year earlier, according to Reis, which tracks apartment completions and occupancy. Net absorption totaled …

June 24, 2019

Conference Coverage Features Healthcare North Carolina Southeast Southeast Feature Archive

Medical Office Sales Active in Southeast Despite Slowdown Nationally, Say InterFace Panelists

by Alex Tostado June 20, 2019

CHARLOTTE, N.C. — Medical office buildings (MOBs) were trading at steady increases year over year from 2011 to 2017, says P.J. Camp, principal and co-founder of Atlanta-based healthcare real estate investment firm Hammond Hanlon Camp. In 2018, however, MOB transactions started to dip, a trend that bled into the first part of this year. There were $14 billion worth of MOB transactions in 2017 but $12 billion worth in 2018. The first quarter of 2019 saw $1.7 billion worth of transactions in the sector, down 32 percent from the first quarter of 2018 and the lowest quarterly total in five years, says Camp. Camp was a participant on the investment panel at the ninth annual InterFace Healthcare Real Estate Carolinas conference. The half-day information and networking event was held May 30 in Charlotte and was hosted by Southeast Real Estate Business and Seniors Housing Business. Also participating in the panel were Mervyn Alphonso, senior vice president of Anchor Health Properties; Steven Reedy, managing director of CIT Healthcare Finance; Stephen Pandos, director of finance at Insite Properties; Gerald Quattlebaum, senior vice president of Flagship Healthcare Properties; Jim McMahon, senior director at Capital One Healthcare; and moderator Andy Lawler, healthcare development partner …

June 20, 2019

Conference Coverage Features North Carolina South Carolina Southeast Southeast Feature Archive

Best Deals for Investors, Lenders Lie Outside of Urban Cores, Say InterFace Carolinas Panelists

by John Nelson June 6, 2019

CHARLOTTE, N.C. — The urban districts in the Carolinas have a lot going for them: Honeywell is leasing nine floors within downtown Charlotte’s Legacy Union project; The Fallon Co. is building a 20-story office tower in downtown Raleigh; and The Beach Co. and Centennial American Properties are separately building mixed-use developments in downtown Greenville. While these projects only scratch the surface of the new developments in the Carolinas’ urban markets — especially for new apartments — speakers at the 10th annual InterFace Carolinas conference said that for a market to be truly successful, there needs to be “growth in both” urban and suburban districts. Panelists emphasized that some of the best deals for their businesses lie outside of the urban cores in the two-state region. “[Suburban] projects aren’t as expensive to develop,” said Carman Liuzzo, senior vice president of investments at Highwoods Properties. “I hope suburban [developments] don’t go away, our most recent three office developments have been in suburban Nashville, Tampa and Raleigh.” Liuzzo was a participant on the “State of the Market” panel that took place Thursday, May 30 at Hilton City Center in Uptown Charlotte. InterFace Conference Group and Southeast Real Estate Business hosted the conference, which …

June 6, 2019

Conference Coverage Features North Carolina Southeast Southeast Feature Archive

U.S. Economic Expansion Has Clear Runway to 2021, Says Wells Fargo Economist

by John Nelson June 4, 2019

CHARLOTTE, N.C. — The current U.S. economic expansion — 120 months and counting — is poised to become the longest in modern U.S. history come July. Mark Vitner, senior economist at Wells Fargo Securities, says the runway is clear for additional growth until at least 2021 before the start of the next recession. The last time the U.S. economy expanded for such a long duration was from 1991 to 2001. Post World War II, the average length of economic expansions has been 58 months, according to the National Bureau of Economic Research. “We don’t have a recession in our forecast. We put it in 2021 because we won’t forecast 2021 until September,” said Vitner. “We’ll likely put the recession in 2022. It’s hard to predict a recession years out. It doesn’t feel like there’s a recession right around the corner, but it never feels that way.” Vitner’s comments came during the keynote address at the 10th annual InterFace Carolinas, a networking and information conference that took place on May 30 at Hilton City Center in Uptown Charlotte. Hosted by InterFace Conference Group and Southeast Real Estate Business, the event brought together more than 240 attendees and featured six panels on …

June 4, 2019

Features Georgia Hospitality Southeast Southeast Feature Archive

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

Development Florida Louisiana Southeast Southeast Feature Archive

Developers Can Rely on Wetlands Mitigation Banking to Offset Environmental Risks with New Projects

by John Nelson February 23, 2019

BATON ROUGE, LA. — Wetlands mitigation banking has established a track record of success in restoring and preserving crucial ecosystems in many states during the past several decades, while helping smooth the way for commercial development. And as the proven system is positioned to grow and expand, it deserves to be more widely known and recognized, according to a leader in the field overseeing restoration of thousands of acres throughout the South. A mitigation bank is a site that has potential and natural attributes but may have been altered or damaged through overuse or abuse such as ditching, drainage or logging that changed the landscape. Restoring land to function as part of a healthy ecosystem as nature intended takes time and money, planning and preparation. Commercial development relies heavily on mitigation banks in states like Florida where population growth requires land and much of the land is environmentally vulnerable, laced with creeks, rivers, wetlands and woods. One of the pioneers in wetlands mitigation banking, Baton Rouge-based EcoSystem Renewal LLC, has successfully helped restore vulnerable sites throughout Florida, Louisiana and Texas, particularly along the fragile Gulf Coast. The company has a turn-key approach that oversees projects, including dealing with regulatory agencies, and takes the risk of mitigation away from …

February 23, 2019

Features Georgia Restaurant Retail Southeast Southeast Feature Archive

Communities’ Appetite for Food Halls Grows But Risks Abound, Says IEDC Panel

by John Nelson October 2, 2018

ATLANTA — Five years ago, there were about 30 food halls across the entire country. By 2020, Cushman & Wakefield predicts there will be 300. “I agree we have a lot of food halls coming,” said Jamestown president Michael Phillips. “In some regards it signals the end of the food hall.” The comments from Phillips came Monday morning during a panel discussion at the annual conference of the International Economic Development Council (IEDC). The four-day conference, which ends Wednesday, has drawn 1,600 economic developers, city planners, marketing professionals, consultants and community leaders to the Hyatt Regency in Atlanta. It’s the largest number of conference attendees ever and the first time in a decade that Atlanta has served as the host city for the annual gathering. The panel Phillips participated in was titled “Intersection of Food and Economic Development.” His fellow panelists included Adam Schwegman, senior vice president of Brookfield Properties Retail, who is stationed in Atlanta; Thomas McNair, executive director of Cleveland-based Ohio City Inc.; and Haile Johnston, founder of The Common Market in Philadelphia. Catherine Timko, CEO of Wilmington, Del.-based economic development consulting firm The Riddle Co., served as panel moderator. Food traffic, the right demographics, and a community …

October 2, 2018

Conference Coverage Features Georgia Multifamily Seniors Housing Southeast Southeast Feature Archive

Seniors Housing Development Costs Dictate Market Entry, Says InterFace Panel

by Kristin Harlow September 25, 2018

ATLANTA — The pace of seniors housing development has accelerated sharply in recent years. Approximately 396 seniors housing properties came online or opened in the top 100 metro areas in the country from the fourth quarter of 2016 to the fourth quarter of 2017, according to data from Plante Moran Living Forward, a senior living development consulting firm. During the two years prior, about 596 communities opened. What’s more, approximately 65 percent of those newly added properties were from operators that only had two or fewer properties, according to Dana Wollschlager, practice leader for the firm and moderator of the development panel at the 2018 InterFace Seniors Housing Southeast conference. The significant number of developments and new entrants to the seniors housing space were major discussion points for the panel, which took place on Wednesday, Aug. 29 at the Westin Buckhead in Atlanta. The one-day conference drew nearly 520 developers, lenders, investors and operators in the senior living space. Joining Wollschlager on the panel were Richard Ackerman, managing partner of Big Rock Partners; Jeff Arnold, chief operating officer of United Group of Cos.; Blanding Beatty, chief investment officer of Traditions Senior Living; Andy Isakson, managing partner of Isakson Living; and …

September 25, 2018

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