Southeast Feature Archive

Healthcare Systems, Physicians are ‘More Sophisticated’ When it Comes to Real Estate, Says InterFace Healthcare Panel

by John Nelson June 13, 2018

CHARLOTTE, N.C. — Healthcare systems and physicians groups once viewed their real estate operations as a line item on a ledger and not as high a priority as staffing, education or equipment. In the years since reimbursements from Medicare began tightening as it went from a fee-for-service model to an outcome-based one, healthcare systems and physicians are getting more savvy when it comes to their real estate strategies. “With respect to real estate, healthcare systems used to be naïve,” said Mark Curtis, director of Greenville Health System, a not-for-profit system serving the Upstate South Carolina area. “Now they’re far more sophisticated than they were five years ago.” Curtis was one of five healthcare real estate experts on stage at a panel entitled “What Do Hospitals & Systems See Coming in 2018?” Rex Noble, senior vice president of asset management at Flagship Healthcare Properties, moderated the discussion. The panel was the closing act at the eighth annual InterFace Healthcare Real Estate Carolinas show, which took place on May 31 at the Hilton City Center hotel in Uptown Charlotte. The event drew 160 attendees in the healthcare real estate space from across North and South Carolina. Operations are Under the Microscope Spurred …

June 13, 2018

Conference Coverage Features Loans North Carolina South Carolina Southeast Southeast Feature Archive

Competition Intense Among Real Estate Lenders, Says InterFace Carolinas Panel

by John Nelson June 7, 2018

CHARLOTTE, N.C. — Capital One Multifamily Finance’s Chad Thomas Hagwood kicked off with a fastball. When prompted with the often used “what inning are we in?” question, Hagwood’s response was indicative of how competitive commercial real estate lending is today. “I don’t know what inning we are in of the cycle, but I know I want to play ball,” says Hagwood, senior vice president of Capital One Multifamily Finance. “People are after it, and we intend to fight it out tooth and nail.” Hagwood’s commentary came during the closing capital markets panel of the ninth annual InterFace Carolinas, a half-day event that drew 212 attendees from North and South Carolina’s commercial real estate community. Bryson Thomason, senior director of Greenville, S.C.-based PMC Real Estate Capital, moderated the panel. The most intense competition for financing is in the multifamily space because of the proliferation of Fannie Mae and Freddie Mac and their designated lenders. The two government-sponsored enterprises (GSEs) have been competing against each other as well as other lenders. Hagwood describes the competition between the two agencies as a “bloodbath.” “It’s all out brutal warfare competition the two,” says Hagwood. “I do expect Fannie and Freddie to be very competitive …

June 7, 2018

Conference Coverage Features North Carolina South Carolina Southeast Southeast Feature Archive

‘Broadening’ Economy on Track for Longest Expansion Cycle in U.S. History, Says Wells Fargo’s Mark Vitner

by John Nelson June 5, 2018

CHARLOTTE, N.C. — It’s been nine years since the Great Recession ended, and if the economy can make it to June 2019 without suffering a relapse, it will be the longest business cycle in U.S. history. Mark Vitner, managing director and senior economist of Wells Fargo Securities, believes that will happen because of how broad-based the recovery has been. “For the most part, over the last nine months to a year all 50 states have been growing, which is something that hasn’t happened before,” says Vitner, who is based in Wells Fargo’s Charlotte office. “Typically, when the economy broadens it makes for a more durable expansion. When the strength of the economy begins to narrow, with fewer industries and states expanding, that’s usually a sign that a recession is a year to 18 months ahead.” Vitner’s commentary came during his keynote address at the ninth annual Carolinas InterFace conference. The half-day event, which took place on Thursday, May 31 at the Hilton Charlotte City Center hotel in Uptown Charlotte, drew 212 attendees from across the commercial real estate industry in North and South Carolina. The veteran economist says that the United States is currently at full employment with a majority …

June 5, 2018

Features Southeast Feature Archive

Creating a ‘Personal Experience’ is Key for Retail Landlords, Says CREC Partner

by Camren Skelton May 31, 2018

LAS VEGAS — The combination of significant population growth and a shortage of supply makes it an ideal time to develop retail projects in the South Florida market, according to Sabrina Stimming, director of retail leasing and partner at CREC, a full-service real estate firm. The population of Miami-Dade County was estimated at 2.75 million in 2017, up from 2.25 million in 2000, according to the U.S. Census Bureau. That’s a 22 percent increase over a 17-year period. However, stiff competition from e-retailers is among the biggest issues facing landlords today. REBusinessOnline sat down with Stimming at RECon, the world’s largest retail trade show held last week in Las Vegas, to discuss South Florida’s retail scene. Discussion topics ranged from store closures and backfilling vacant space to embracing internet-proof tenants for today’s shopping centers. What follows is an edited interview: REBusinessOnline: When you reflect on the past year in the South Florida retail market, is there one trend, project or hot-button issue that stands out and why? Sabrina Stimming: Store closures for sure — the continuation of some major boxes that are closing. This past year hhgregg, Winn-Dixie and Toys ‘R’ Us have all closed. That’s big stuff. Toys ‘R’ …

May 31, 2018

Features Southeast Feature Archive

GSU Economist Urges Patience as Full Impact of Tax Cuts Ripples Through System

by Camren Skelton May 24, 2018

ATLANTA — With the full effect of the tax cuts yet to be felt, any talk of a recession is ultimately premature, according to Rajeev Dhawan, director of the Economic Forecasting Center at Georgia State University’s (GSU) J. Mack Robinson College of Business. Speaking at his quarterly economic forecast, which was held on Wednesday, May 23 at GSU’s Centennial Hall Auditorium, Dhawan said the impact of the Tax Cuts and Jobs Act signed into law by President Trump last December should take hold by the middle of this year. In addition, he expects the Federal Open Market Committee (FOMC) to raise the federal funds rate, the overnight interbank lending rate, twice more in 2018: once in June then again in December. The current federal funds rate is 1.75 percent. In the interim period between those two hikes, the forecaster expects the Fed to keep a close eye on two key trends: consumer spending and long-bond yields. “First, evidence has to emerge that tax cut-induced consumer spending is finally taking hold as weak retail sales numbers in the first quarter were a snapback from a hurricane rebuilding spending surge in the last quarter of 2017,” Dhawan wrote in his quarterly Forecast …

May 24, 2018

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CBRE: U.S. Apartment Sector Gets Boost from Comprehensive Tax Reform

by David Cohen May 3, 2018

LOS ANGELES — The sweeping tax reform bill signed into law in late 2017 by President Donald Trump is expected to benefit the U.S. multifamily investment market, according to a new report from CBRE. The report states that under the Tax Cuts and Jobs Act, the tax benefits of renting over buying a home will increase in 29 of the 35 largest U.S. markets. That number is up from 15 markets before the tax reform. The new tax law increases the standard deduction from $12,700 to $24,000 for a married couple. This means more people will take the standard deduction rather than itemize items such as mortgage interest, which CBRE said will significantly benefit renters in most of the country’s largest markets and encourage renting over homeownership. Additionally, limitations on state and local tax deductions, as well as the loss of the mortgage interest deduction on home purchases of $750,000 or more, will marginally impact the cost of housing in high-cost markets. “The new tax policy’s raising of the standard deduction, combined with limitations on mortgage interest and state and local tax deductions, will significantly increase the attraction of renting versus buying housing,” said Spencer Levy, CBRE’s senior economic advisor and …

May 3, 2018

Features Georgia Hospitality Property Type Southeast Southeast Feature Archive

Battle for Market Share: Leading Hotel Companies Expand Via Acquisitions, New Brands

by John Nelson March 22, 2018

ATLANTA — The world’s largest hotel company, Wyndham Hotel Group, made a splash in January when parent company Wyndham Worldwide Corp. purchased La Quinta’s franchise and management business for nearly $2 billion. Speaking at the 30th annual Hunter Hotel Conference in Atlanta Wednesday, Geoff Ballotti, president and CEO of Wyndham Hotel Group, spoke about how the acquisition has helped expand the company’s platform. “It is our 21st brand. We’re the company that operates more hotels than any other company today at 9,100 hotels,” says Ballotti at the three-day conference, which is drawing 1,700 attendees. “La Quinta is a brand that franchises well — 85 percent of La Quinta’s franchisees score four stars or above on TripAdvisor. It’s a great value for our shareholders.” The past few years have seen mega transactions like this, none bigger than Marriott International’s $13 billion acquisition of Starwood Hotels & Resorts in 2016. Joining Ballotti on the stage during the President’s Panel, held at the Atlanta Marriott Marquis in downtown Atlanta, was Patrick Pacious, president and CEO of Choice Hotels International Inc. The Rockville, Maryland-based company is the second-largest hotel group by property count at 6,800 hotels in 40 countries. Similar to Wyndham, Choice Hotels …

March 22, 2018

Conference Coverage Features Multifamily North Carolina South Carolina Southeast Southeast Feature Archive

Multifamily Firms Targeting Charlotte, Raleigh Suburbs, Says InterFace Carolinas Panel

by John Nelson December 14, 2017

ATLANTA — Executives from some of the most active multifamily firms in the Southeast are honing in on the suburbs of Charlotte and Raleigh as they map out their long-term investment and development strategies. During the Carolinas panel at the eighth annual InterFace Multifamily Southeast conference, the panelists stated they’re preparing for a suburban shift as a large swath of the millennial renting cohort and downsizing baby boomers will be priced out of core submarkets. “There’s a confluence of different demand drivers that will persist in earnest for the next five to 10 years as we see the millennial migration happening and affordability constraints start to enter the picture more,” said Eddy O’Brien, managing partner and co-founder of Blaze Partners, a boutique multifamily investment firm based in Charleston, S.C. Ben Yorker, vice president of development at Northwood Ravin, said his firm is also interested in Charlotte and the Triangle area for new development opportunities in 2018. “Within those markets we’re edging away from infill and exploring more suburban opportunities,” said Yorker. “We’re targeting renters by choice like empty nesters or urban professionals. In 2018, we’ll shift significantly to target millennials looking to the suburbs.” New development is already trickling its …

December 14, 2017

Conference Coverage Features Georgia Multifamily Southeast Southeast Feature Archive Top Stories

Projected Population, Job Growth Fuel Future of Atlanta’s Multifamily Market, Says InterFace Panel

by Camren Skelton December 6, 2017

ATLANTA — A surge in population and job growth in the Atlanta metropolitan area over the next two decades will bode well for the multifamily sector, according to panelists at the eighth annual InterFace Multifamily Southeast. Among the 12 largest metropolitan areas in the county, Atlanta ranked second in the rate of job growth and third in the number of jobs added, according to the Bureau of Labor Statistics (BLS). Total nonfarm employment for the Atlanta-Sandy Springs-Roswell Metropolitan Statistical Area stood at 2.75 million in September 2017, up 2.5 percent year-over-year. In addition, the Atlanta Regional Commission forecasts the 20-county Atlanta region will add 2.5 million people and 1.5 million jobs by 2040. Multifamily demand is reaping the benefits of this growth. The job growth multiplier for the demand for new apartments used to be a factor of 5 to 1, meaning for every five jobs created, you could take one unit of inventory out of the equation, according to Mike Kemether, vice chair of the multifamily advisory group at Cushman & Wakefield. This year and next in Atlanta, that ratio sits around 7 to 1. “A lot of the renters are coming because of job relocations,” said Christie Hawver Jordan, …

December 6, 2017

Civic Conference Coverage Features Georgia Southeast Southeast Feature Archive Top Stories

Growing Smartly is a City’s Biggest Challenge, Says InterFace Keynote Speaker

by John Nelson November 30, 2017

ATLANTA — Tim Keane, City of Atlanta’s planning commissioner, is tasked with a monumental challenge facing many planners: how to practically design the future for a city on the cusp of a population boom. Citing the Atlanta Regional Commission, Keane said that the Atlanta metro area is on track to add 2.5 million people over the next 25 years, the equivalent of adding the entire metro Charlotte population. The city’s in-town population is also expected to grow from less than 500,000 today to 1.2 million in that same time frame. Adding to the challenge are city departments and communities that are unwilling to change because of a mindset that is resistant to growth. “Everyone thinks that more people is bad,” said Keane, who previously worked in the city planning departments in Davidson, N.C., and Charleston. “They don’t work on the assumption that a clear future for themselves is better with more people. We have to break out of that mentality because the change is happening.” Keane was the keynote speaker at the eighth annual InterFace Multifamily Southeast conference, held on Tuesday, Nov. 28 at the Westin Buckhead in Atlanta. Hosted by InterFace Conference Group and Southeast Real Estate Business, the …

November 30, 2017

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