Home > CRE > Page 2

Tag: CRE

NEWS RELEASE: SVN ADDS SVN | RIVERSTONE COMMERCIAL REAL ESTATE TO EXPAND PRESENCE IN TEXAS

Posted on by SVN

SVN International Corporation (SVNIC), a full-service commercial real estate franchisor of the SVN® brand, announces that it has added College Station, Texas-based Riverstone Commercial Real Estate to its franchise roster. Going forward, the new venture will operate as SVN|RIVERSTONE COMMERCIAL REAL ESTATE.

 

Founded in 2017, SVN | RIVERSTONE COMMERCIAL REAL ESTATE is led by Founding Partners and Managing Directors Jim Jones and Jess Buenger. The rapidly expanding firm offers brokerage and advisory services to buyers, sellers, landlords, and tenants across the central Texas markets. SVN | RIVERSTONE COMMERCIAL REAL ESTATE also provides consultancy services on investments and development projects. More information about the firm is available at svnriverstone.com

 

“SVN | RIVERSTONE’s top priority is getting the most value for our clients. With SVN, we gain expanded visibility and marketing dexterity to deliver the best value possible no matter the geography or asset class,” said Managing Director Jim Jones. “Now, we not only reach a business owner across town, but an investor across the globe.”

 

“Even prior to our official announcement of our partnership with SVN, we have collaborated on deals sourced through SVN offices in Las Vegas, Chicago, Florida, Austin, and the Northeast,” added Managing Director Jess Buenger. “This partnership has expanded our reach tremendously.”

“In SVN | RIVERSTONE, we have found a firm with a natural fit to our SVN culture that puts clients first, said Marc Seinfeld, SVN’s Vice President of National Franchise Sales and Development. “We are delighted to work with SVN | RIVERSTONE  and increase our presence in Texas.”

 

About SVN International Corp.

The SVN organization is a globally recognized commercial real estate entity united by a shared vision of creating value for clients, colleagues and communities. Currently, SVN comprises over 1,600 advisors and staff working in more than 200 offices across the globe. SVN’s brand pillars represent the transparency, innovation and inclusivity that enable all our advisors to collaborate effectively with the entire real estate industry on behalf of our clients. SVN’s unique Shared Value Network® is just one of the many ways that SVN Advisors create outsize value for all stakeholders. For more information, visit www.svn.com.

Kevin Maggiacomo featured in GlobeST.com article, “Why Brokers Can’t Sleep on Tech”

Posted on by SVN

Why Brokers Can’t Sleep on Tech



“What’s missing from most of the disintermediation questions posed to me is an appreciation for the wide range of possibilities and scale at which technology can impact CRE brokerage,” said Maggiacomo. “Instead the discussion quickly turns to the more remarkable topic of if and when the traditional role of the broker will be rendered obsolete. That’s the biggest misconception out there.”

CRE owners appreciate the positive impact that technology-enabled brokerage can have on property values, Maggiacomo maintains. Sellers are capitalizing on syndication modules and to reach a critical mass of brokers and investors through tech platforms like Buildout and CREXi.

“Brokers need to get on the train before it leaves the station and harness the power of this category tech and abandon the hyper-focused practice of working to identify the buyers on their own,” said Maggiacomo.


Read the full article here.

SVN International Corp. Launches New Capital-Powered Expansion Plans

Posted on by SVN

SVN International Corp. announced its new capital investment based growth strategy plans with the launch of two new partner firms in Southern California: the merger of ECP Commercial into the San Diego office of SVN | Vanguard; and separately, the acquisition of a team from Advisors Real Estate, to form SVN | Commercial-DTLA located in Downtown Los Angeles. This expansion represents the first phase of SVN®’s new Partnership Strategy. Through this new structure, SVN is acquiring minority interests in established companies and high growth teams in strategic markets that will operate under the SVN brand and franchise structure.

Kevin Maggiacomo, president & CEO of SVN International Corp. recently spoke with Kelsi Maree Borland, a freelance writer for GlobeSt.com. The following is an excerpt from the article that was featured on GlobeSt.com on January 23, 2019.

 

“As a growth accelerator for the brand, these minority acquisitions not only provide SVN with immediate market share but also provides a foundation on which we can aggressively reinvest in markets on an ongoing basis for future growth,” Kevin Maggiacomo, president and CEO of SVN International Corp., tells GlobeSt.com. “These key markets are also the most active in terms of volume and velocity and serve as hubs for inbound and outbound opportunities.”

 

Kevin Maggiacomo
President CEO, SVN International Corp.

This is the first part of a two-pronged growth strategy. The second part will focus on the growing interest in alternative consolidation options. “We believe that the evolving competitive landscape and wave of consolidation has created demand for firms to be part of a larger platform but who also seek an alternative to traditional franchising or a straight, 100% acquisition,” adds Maggiacomo. “Our partnership strategy provides a bit of both, affiliating with one of the most recognized brands in CRE while simultaneously realizing some liquidity.”

The new partnership model doesn’t mean that SVN is planning to abandon the franchise model, however. Maggiacomo says the firm will continue to be a “pure” franchisor, as he describes. “We’re making minority investments here and not reverting back to the corporate stores of old,” he adds. “The agility, flexibility and stability that franchising provides is a core tenet of our business.  Our partnership investments are a supplemental strategy designed to accelerate and affect exponential growth in key markets where firms are looking for a structure that was previously unavailable through our traditional franchise model.”

In fact, the firm’s success with the franchise model has enabled them to adopt this new partnership model. Maggiacomo sees it has a new opportunity for growth. “Like any organization, we are constantly assessing our business model to in order to ascertain our best opportunities for growth,” he explains. “Last year we saw the 200th office open under the SVN brand.  We’re pleased with our market coverage, but we determined that our greatest opportunity for growth was in increasing our market share in key US markets. Doing that—quickly and in targeted form—requires a unique solution to the desires of the marketplace. A capital powered partnership strategy combined with the SVN systems for growth yields a product that is appealing to a bevy of high growth firms who fit the SVN mold.”

Specifically, Maggiacomo is looking for companies that are sizable and on the brink of obtaining significant market share, especially with access to support. “While the owners could sell all or a majority of their firm’s stock, most believe that they would be selling short or too early and further don’t want to relinquish control of their businesses,” he says. “The SVN Partnership Program provides for immediate liquidity to firm shareholders. This, coupled with growth capital for bolt-on acquisitions as well as SVN’s technology stack, systems and resources puts each partnership firm on their own “ten times” path to growth.”

The two firms SVN has purchased include ECP Commercial in San Diego, which will merge into SVN | Vanguard, and a team from Advisors Real Estate, which will form SVN | Commercial-DTLA in Los Angeles. These two firms perfectly fit the bill, aligning with both the growth strategy and the firm’s company culture. “For us, the SVN culture is everything—our culture is our business model, and so ensuring that prospective partner firms believe in and practice fee sharing and broker cooperation, as an example, is paramount,” Maggiacomo explains.

 

To read the entire GlobeSt.com article, CLICK HERE.

To find out more about franchising with SVN, CLICK HERE.

 

SVN EXPANDS REACH IN LAS VEGAS WITH ADDITION OF SVN | THE EQUITY GROUP

Posted on by SVN

Boston, MA (January 9, 2019) SVN International Corp. (SVN), a global commercial real estate company, announced today the addition of Las Vegas-based The Equity Group as its newest franchise. The new franchisee will now be known as SVN | The Equity Group.

Established in 1980 by Scott Godino, SVN | The Equity Group currently manages 100 properties in Southern Nevada, totaling close to 7 million square feet of commercial real estate. The firm’s longevity, spanning nearly forty years in the market, made it a good fit to become SVN’s Las Vegas franchisee.

“Our team will continue to offer the highest level of commercial brokerage, leasing and property management services while making full use of the enhanced capabilities in technology and national reach that SVN provides,” said Scott Godino, founder and chief executive officer of SVN | The Equity Group. “This is an opportunity for us to gain a competitive advantage in the market by attracting new clients and brokers who want to work with a proven team that has an established global reach.”

“SVN | The Equity Group’s management team shares SVN’s vision and culture. The firm’s client-centric focus reflects our core covenants on how we do business,” said SVN’s Vice President of National Franchise Sales and Development Marc Seinfeld. “SVN has one of the industry’s largest footprints domestically, and many of our domestic and international clients look at the Las Vegas market when investing.”

 

 

For more information on SVN | The Equity Group, click here.

For more information on SVN International Corp., click here.

 

SEARCH PROPERTIES  |  FRANCHISE WITH SVN

 

 

KAREN HURD TO SERVE AS PRESIDENT FOR CCIM’S NEW ENGLAND CHAPTER FOR 2019

Posted on by SVN

SVN International Corp. is pleased to announce that Senior Vice President of National Franchise Sales and Development, Karen Hurd, CCIM, will serve as President of CCIM’s New England Chapter for 2019.

Ms. Hurd has been actively involved with the CCIM Institute on both a national and local level for the past eight years and earned the CCIM designation in March 2018.  With 25 years of industry experience and as a member of SVN’s leadership team, Ms. Hurd plays a vital role in SVN’s strategic growth as they continue to expand in the U.S. and across the globe.

 

 

“I am appreciative of the opportunity to lend my talents and skills to help advance the New England CCIM Chapter and its members,” said Hurd. “I hope to expand CCIM’s educational outreach and collaboration to NAR, IREM, SIOR, CREW Network, and other industry organizations including the entire New England commercial real estate community.”

 

“Karen is a valued and trusted member of SVN International Corp. and we are all proud of her accomplishments. We are certain that the New England Chapter of the CCIM Institute will benefit greatly from Karen’s industry experience and knowledge.” says Kevin Maggiacomo, President and CEO of SVN International Corp.

The Chicago-based CCIM Institute confers the Certified Commercial Investment Member (CCIM) designation and is considered the industry’s most prestigious certification. The CCIM Institute is one of the largest commercial real estate networks worldwide with more than 50 chapters around the world.

 

For more information on the CCIM Institute visit www.ccim.com.

 

 

SVN INTERNATIONAL CORP. & PATRONICITY LAUNCH COMMUNITY CROWDFUNDED PLACE MAKING PROGRAM

Posted on by SVN

Boston, MA – SVN International Corp. (SVN), a full-service commercial real estate franchisor of the SVN® brand, and Patronicity, a Michigan-based civic crowdfunding platform, united by a shared vision of creating value with clients, colleagues, and our communities, announced the launch of SVN | Communities, a collaborative effort where qualified SVN offices can use crowdfunding to help develop strategic projects in their local communities. The nationwide program will help fund place-based, community-driven projects – art installations, parks, bike trails, markets, and more – helping to revitalize downtown areas, neighborhoods, and community spaces. The SVN® organization will back successful projects with a matching grant of up to $10,000 per project. Communities, nonprofits, and other approved entities in eligible SVN markets can learn more about the program and apply at www.patronicity.com/SVN.

SVN is launching this program with SVN | Chicago Commercial, one of its top offices with a history of strong community involvement. Other qualifying SVN firms include SVN | Miller Commercial Real Estate in Salisbury, MD and SVN | RICORE Investment Management, Inc. in Cincinnati, OH.

 “SVN is a commercial real estate brand that understands the value of having locally-based leadership invested in the communities where they both live and work,” says Kevin Maggiacomo, CEO & President of SVN International Corp. “This is why the Patronicity program, which invites the local community to participate, really appealed to our core values.”

This exciting and innovative program is geared towards supporting grassroots, community-driven place making projects by providing a matching grant to groups able to meet their crowdfunding goal. Selected projects will run a crowdfunding campaign with Patronicity aiming to hit their crowdfunding goal within 60 days.  Groups should then be ready to finish their project within six months of reaching their target. Successful projects must activate a new or underused public or community space with the program giving preference to permanent physical projects.

“We are thrilled to partner with SVN to bring this impactful brand of community driven crowdfunding to new cities across the country. We’ve seen the impact crowdfunded place making has on communities across the nation as real and long-lasting, and we’re excited to expand this impact with the support of SVN,” said Jonathan Berk of Patronicity.

 

About SVN International Corp.

The SVN organization is a globally recognized commercial real estate entity united by a shared vision of creating value with clients, colleagues and our communities. The SVN brand is comprised of over 1,600 advisors and staff in more than 200 offices across the globe. Our brand pillars represent the transparency, innovation and inclusivity that enables all our advisors to collaborate with the entire real estate industry on behalf of our clients. SVN’s unique Shared Value Network® is just one of the many ways that SVN advisors create amazing value with our clients, colleagues and communities.  All SVN offices are independently owned and operated. For more information, visit www.svn.com.

 

 

CLICK HERE to read the full press release.

 

SVN | Communities

For more information on SVN | Communities, click here.

For information regarding the SVN | Chicago Commercial ‘Call for Offers’, click here. The application deadline is July 17, 2018.

SVN Ranked 7th Most Powerful Brokerage Firm for 2018

Posted on by SVN

SVN International Corp. has been named the 7th Most Powerful Brokerage Firm for 2018 by Commercial Property Executive (CPE) and Multi-Housing News (MHN). SVN earned the number 7 ranking based on overall performance, taking into consideration investment sales and leasing activity.

 

Each year Commercial Property Executive, a leading resource for the commercial real estate industry, ranks the top brokerage firms by utilizing a weighted formula based on a variety of factors, including form performance in 2017 and over time, using factors like investment sales and leasing activity. Firms represented in the CPE Index are considered leaders in the commercial real estate industry and according to CPE, the industry-leading brokerage firms can be expected to “represent the vast majority of market transactions”.

 

About SVN International Corp.
The SVN organization is a globally recognized commercial real estate entity united by a shared vision of creating value with clients, colleagues and our communities. The SVN Brand is comprised of over 1,600 Advisors and staff in more than 200 offices across the globe. Our brand pillars represent the transparency, innovation and inclusivity that enables all our advisors to collaborate with the entire real estate industry on behalf of our clients. SVN’s unique Shared Value Network® is just one of the many ways that SVN advisors create amazing value with our clients, colleagues and communities. For more information, visit www.svn.com.

SVN® EXPANDS PRESENCE IN TENNESSEE WITH THE ADDITION OF NEW FRANCHISE IN KNOXVILLE

Posted on by SVN

Boston, MA — SVN International Corp. (SVN), a full-service commercial real estate franchisor of the SVN® brand, announced the addition of its newest franchise office, SVN | Wood Properties, based in Knoxville, Tennessee. Led by Managing Director George Brown, the firm specializes in providing commercial sales, leasing, property management, development and consulting services throughout the East Tennessee market. SVN | Wood Properties is the fifth SVN office in the state of Tennessee, further expanding the company’s full-service, collaborative approach to commercial real estate in the region.

 

“Built on SVN’s Shared Value Network®, we strive to identify and work with market leaders who share our vision of a collaborative and open approach to commercial real estate,” said Kevin Maggiacomo, President & CEO of SVN International Corp. “This philosophy is already instilled in the team at SVN | Wood Properties, making it a valuable addition to SVN, along with their strong understanding of the East Tennessee market, SVN | Wood Properties is sure to prosper.”

 

Brown brings 10 years of experience in commercial real estate to SVN | Wood Properties, where he will lead a team of 10 Advisors focused on commercial real estate advisory within the local East Tennessee market. The 41-year-old firm plans to leverage SVN’s international platform to support the firm’s growth and reach, as well as the cutting-edge commercial real estate technology available to all SVN franchises to help advance its offerings to the local market.

 

“We recognize a similar business ethic and foundation in SVN and share many of the same values,” said Brown. “SVN provides us with the ability to keep our local relationships, while establishing a national affiliation and utilize essential tools of the business for success and growth. By partnering with SVN, our team has the opportunity to remain a leading firm while adding best-in-class services.”

 

The SVN brand was founded in 1987 out of a desire to improve the commercial real estate industry for all stakeholders through cooperation and a shared vision of creating value with clients, colleagues and communities. SVN currently has more than 200 offices serving over 500 national and international markets. By tapping into this broad network, SVN | Wood Properties is able to offer its clients expanded services in the leasing, acquisition and disposition of commercial real estate.

 

All SVN offices are independently owned and operated. To learn more about becoming an SVN commercial real estate business owner, visit http://www.svn.com/franchising-opportunities/

 

# # #

About SVN:

The SVN organization is a globally recognized commercial real estate entity united by a shared vision of creating value with clients, colleagues and our communities. The SVN brand is comprised of over 1,600 advisors and staff in more than 200 offices across the globe. Our brand pillars represent the transparency, innovation and inclusivity that enables all our advisors to collaborate with the entire real estate industry on behalf of our clients. SVN’s unique Shared Value Network® is just one of the many ways that SVN advisors create amazing value with our clients, colleagues and communities.  For more information, visit www.svn.com.

SVN | AVAT REALTY, LLC COMPLETES SALE OF MILWOOD MANOR IN NASHVILLE, TENN. FOR $13.45 MILLION

Posted on by SVN

Nashville, Tenn., SVN | AVAT Realty, LLC, one of the nation’s premier net lease brokerage firms, has completed the sale of Millwood Manor, a 200-unit multifamily development in Nashville, Tenn. Andrew Agee, Senior Advisor of SVN | AVAT Realty, LLC brokered the sale of the 201,850 square-foot property for $13.45 million.

“Nashville rents are appreciating faster than anywhere in the Southeast creating an ideal opportunity for both the seller and the buyer in the transaction,” said Agee. “Following the buyers proposed large scale renovations, the property will further increase in value, creating a substantial value add for the buyer.”

Nashville, the capital of Tennessee and one of the most popular cities in the state, is located adjacent to the Cumberland River and in close proximity to major transportation including Nashville International Airport, CSX Transportation by Amtrak, the Metropolitan Transit Authority and Interstate I-40, I-24, and I-65.

 

About SVN | AVAT Realty, LLC:

SVN | AVAT Realty, LLC is an independently owned and operated SVN® office. The SVN organization is a globally recognized commercial real estate entity united by a shared vision of creating value with clients, colleagues and our communities. The SVN Brand is comprised of over 1,600 Advisors and staff in more than 200 offices across the globe. Our brand pillars represent the transparency, innovation and inclusivity that enables all our advisors to collaborate with the entire real estate industry on behalf of our clients. SVN’s unique Shared Value Network® is just one of the many ways that SVN advisors create amazing value with our clients, colleagues and communities.  For more information, visit www.svn.com.

SVN | HAMM & COMPANY BROKERS THE $72 MILLION PURCHASE OF RESIDENCE INN BY MARRIOTT IN ALEXANDRIA, VA.

Posted on by SVN

Alexandria, Va. (January 24, 2018) SVN | Hamm & Company one of the nation’s premier hospitality brokerage firms, has advised on the successful purchase of the Residence Inn by Marriott in Alexandria, Va. The 240-room, 257,000 sq. ft. hotel was purchased for $72 million.

Tom Hamm, Managing Director of SVN | Hamm & Company represented the buyer, AVR Acquisition Corp.

“SVN | Hamm & Company was tapped for our expertise in the hotel industry to help obtain a suitable buyer that met the requirements of the seller,” said Hamm. “The purchase of this property was a synergistic investment for the buyer, considering the other properties in their portfolio.”

Located at 1456 Duke Street, the buyer plans to invest into the property by renovating and upgrading the Residence Inn by Marriott to its highest standards, with the goal of making this purchase a long-term investment.

Old Town Alexandria is a charming neighborhood located in Alexandria, Va. This desirable destination outside of Washington, DC, is home to a concentration of boutiques, restaurants, antique shops and theaters, creating a major draw for residents and visitors alike. Alexandria is centrally located near prominent transportation options including the Ronald Reagan Washington International Airport, Alexandria Union Station; State Route 7 and the Capital Beltway, also known as Interstate 95/495.

 

About SVN | Hamm & Company

SVN | Hamm & Company is an independently owned and operated SVN® office led by Tom Hamm, a member of SVN | Hotels and Director of SVN’s Hospitality Council. The SVN organization is a globally recognized commercial real estate entity united by a shared vision of creating value with clients, colleagues and our communities. The SVN Brand is comprised of over 1,600 Advisors and staff in more than 200 offices across the globe. Our brand pillars represent the transparency, innovation and inclusivity that enables all our advisors to collaborate with the entire real estate industry on behalf of our clients. SVN’s unique Shared Value Network® is just one of the many ways that SVN advisors create amazing value with our clients, colleagues and communities.  For more information, visit www.svn.com.

# # #

 

5 FOR FRIDAY – DAVID DUNN, SIOR, CCIM, MANAGING DIRECTOR OF SVN | DUNN COMMERCIAL

Posted on by SVN

Commercial This week, our 5 for Friday features David Dunn, Managing Director of SVN | Dunn Commercial. Dunn specializes in corporate lease, distressed assets, industrial, institutional capital markets and single tenant investment, within the Dallas and Fort Worth metropolitan areas.

 

1. What advice would you provide to an aspiring advisor who is new to the industry?

I would highly advise all advisors to get the CCIM designation. SVN provides everyone with the opportunity and the tools needed to accomplish this.

2. What does the SVN Difference mean to you?

SVN focuses on the needs of clients, opposed to being focused on the brokers. Once client needs are met, then the brokers needs can be met.

3. What learning tools (book, blog, website, etc.) would you recommend to your colleagues to further their knowledge and enhance their careers?

The most important tool for me to be successful, that I would recommend to others include all CCIM course work, as well as analyst and PRO/CRETECH tools

4. What was your most memorable deal and why?

My most memorable deal was purchasing my first investment property without partners. It was a huge accomplishment and I enjoy being the landlord.

5. List a fun fact to share about yourself – something that people may not know and that they may be surprised to find out.

My main passions, and how i spend my time out of the office, are fly-fishing and up-land bird hunting.

 

Are you ready to experience the SVN Difference? Check out our Careers page here.

SVN | CHICAGO COMMERCIAL COMPLETES SALE OF 312-UNIT CHICAGO MULTIFAMILY PORTFOLIO FOR $26.5 MILLION

Posted on by SVN

Chicago, Ill. (January 16,2018) – SVN | Chicago Commercial has completed the sale of Indian Trails Apartments and Ridge Gardens Apartments for $26.5 million. Combined, the two affordable housing complexes include 312 units.

Cody Doran, Assistant Vice President, and Reid Bennett, Senior Vice President, of SVN |Chicago Commercial represented the seller, Indian Trails & Ridge Gardens LLC, in the transaction. The property sold to Sausage King LLC.

“This deal provided the buyer a unique opportunity to invest within a sector of Chicago real estate that has a very limited supply and multiple barriers to entry. These market fundamentals were evident based on the fact that we were able to present our seller with over 43 offers for this portfolio,” said Bennett. “The buyer ultimately plans to make capital improvements and preserve this affordable housing complex.”

Indian Trail Apartments is located at 221 East 21st Street in Chicago, featuring 180 section 8 housing units.  Ridge Garden Apartments, at 10010- 10040 South Sayre Ave. in Chicago Ridge, includes 132 section 8 housing units.

Chicago is a major industry hub for finance, commerce, technology and telecommunications. Home to O’Hare International Airport, Regional Transportation Authority and seven mainline and four auxiliary interstate highways, Chicago serves as one of the major transportation hub in the US.

 

About SVN | Chicago Commercial:

SVN | Chicago Commercial is an independently owned and operated SVN® office. The SVN organization is a globally recognized commercial real estate entity united by a shared vision of creating value with clients, colleagues and our communities. The SVN Brand is comprised of over 1,600 Advisors and staff in more than 200 offices across the globe. Our brand pillars represent the transparency, innovation and inclusivity that enables all our advisors to collaborate with the entire real estate industry on behalf of our clients. SVN’s unique Shared Value Network® is just one of the many ways that SVN advisors create amazing value with our clients, colleagues and communities.  For more information, visit www.svn.com.

5 for Friday – Steven Stoehrer, Managing Director of SVN | Stora

Posted on by SVN

This week, our 5 for Friday features Steven Stoehrer, Managing Director of SVN | Stora based in New York, New York. Stoehrer specializes in corporate lease back, industrial, office, property management, and retail. In the last 36 months he has closed, listed, and underwritten in excess of 500 million dollars worth of investment grade assets

 

1. What advice would you provide to an aspiring advisor who is new to the industry?

Activity Levels, keep them up and have strong commitment. This is a long-term game.

 

2. What does the SVN Difference mean to you?

It sets me apart from my competitors. We cooperate with the market place completely. That strategy has gained business in the long term, even though short term you sometimes question it.

 

3. What learning tools would you recommend to your colleagues to further their knowledge and enhance their careers?

I would ask people who are successful for 10 minutes over a cup of coffee. I learned more in my career from people who have done it than any book.

 

4. What was your most memorable deal and why?

I sold a deal that flooded while under contract only to learn it had done so twice before. It was most difficult but the most educational.

 

5. List a fun fact to share about yourself

I have been a volunteer firefighter since I was a teenager. Not many people would guess that.

 

Are you ready to experience the SVN Difference? Check out our Careers page here.

 

SVN® INTERNATIONAL CORP. RECOGNIZED AS A COMMERCIAL REAL ESTATE LEADER IN GENDER EQUITY, DIVERSITY AND INCLUSION

Posted on by SVN

Boston, MA (January 10, 2018) – SVN® International Corp. (SVN) has been recognized by CREW Network, the commercial real estate industry’s premier business networking organization dedicated to advancing the achievements of women in the industry globally, for the company’s efforts to improve gender equity and workforce diversity and inclusion. In a newly released whitepaper examining the commercial real estate industry’s efforts in Canada, the U.K. and U.S., SVN is among the top 10 organizations recognized for making overall diversity – defined by CREW’s research as the inclusion of different people based on race, ethnicity and sexual orientation – a business priority.

 

“SVN is pleased to be recognized by CREW Network for our efforts in bringing diversity and gender equity into the work place. Our organization prides itself on the SVN Difference, which is centered on collaboration and establishing a shared network to ensure all professionals are set up for success regardless of race, gender and ethnicity,” said Kevin Maggiacomo, President & CEO of SVN International Corp. “As the SVN brand continues to grow both nationally and internationally, we continue to build our brand with leaders and team members who share our vision and philosophy of a collaborative, open and inclusive approach to commercial real estate.”

 

SVN identified that in order to thrive in the future, it had to more closely reflect the population and embrace diversity across gender, race, ethnicity and age. The SVN organization has adjusted their hiring strategy to recruit and develop leaders from 100 percent of the population. Diversity and inclusion are now ingrained into SVN’s culture and are now a filter in every decision the company makes.

 

The CREW Network’s whitepaper examines outstanding gender-inclusive CRE companies that focus on the advancement of women employees, top executives and board members, as well as notable employee programs, networking and interest groups, mentoring and sponsorship programs and flexible work arrangements.

 

About SVN International Corp.:

The SVN organization is a globally recognized commercial real estate entity united by a shared vision of creating value with clients, colleagues and our communities. The SVN Brand is comprised of over 1,600 Advisors and staff in more than 200 offices across the globe. Our brand pillars represent the transparency, innovation and inclusivity that enables all our advisors to collaborate with the entire real estate industry on behalf of our clients. SVN’s unique Shared Value Network® is just one of the many ways that SVN advisors create amazing value with our clients, colleagues and communities.  For more information, visit www.svn.com.

# # #

5 for Friday – Deborah Quok, Managing Director of SVN | QAV & Associates

Posted on by SVN

This week, our 5 for Friday features Deborah Quok, Managing Director of SVN | QAV & Associates, based in San Francisco, California. Deborah is accomplished in advising clients in real estate strategies, marketing and transactions. Deborah specializes in office leasing, medical office building sales and leasing, and corporate services.

 

1. What advice would you provide to an aspiring advisor who is new to the industry?

Listen. Look. Learn. Laugh. This industry is about establishing relationships and credibility through the transfer of knowledge and experience. The probability for success is heightened when you develop your unique style and capacity to connect with people and demonstrate your value. Patience and persistence are also needed. “Overnight success” is often years in the making.

 

2. What does the SVN Difference mean to you?

Our culture of collaboration allows me to be more productive and able to focus on the positive aspects of providing advice and service to our clients. I appreciate the spirit of sharing between colleagues and offices, and the approachability of everyone within SVN — no matter their role and achievements.

 

3. What learning tools would you recommend to your colleagues to further their knowledge and enhance their careers?

Built to Last, Good to Great, pretty much anything by Jim Collins who provides insights on leadership and management. Emotional Intelligence 2.0 because we are in a people business as much as we are in the commercial real estate business. The website MindTools.com has recently come onto my radar. Early indications show it to be a good first step in finding bite-sized advice for those early in their careers or interested in improvement.

 

4. What inspired you to open or join an SVN franchise?

I was interested in the SVN technology and distribution platform initially, but became sold on the culture and determination of its leadership to provide a winning opportunity for success to a diverse array of franchisees and their advisors.

 

5. What was your most memorable deal and why?

In the short term it is a recent, transaction that successfully demonstrates a goal of our office to service clients in both the sale and lease aspects of managing their office/medical office real estate portfolio. Our firm represented the seller of an office and their subsequent lease of new office space; all within a short 30 days. We are currently underway in a similar scenario of leasing up vacant space in a building to maximize its income for a potential sale thereafter.

 

Are you ready to experience the SVN Difference? Check out our Careers page here.

 

SVN | CHICAGO COMMERCIAL BROKERS $24 MILLION IN HIGH-VALUE PROPERTY SALES

Posted on by SVN

Chicago, Ill. (January 3, 2018) – SVN | Chicago Commercial, one of the nation’s premier net lease brokerage firms, recently completed the sale of two commercial buildings in Illinois for a total of $24 million. SVN | Chicago Commercial advised the buyers in the purchase of 19-27 West Jefferson St. in Naperville, Ill. and 1230-1242 West Washington Blvd. in Chicago.

19-27 West Jefferson St. is a 15,412-square-foot retail and office property comprised of four buildings in downtown Naperville. The property sold for $10.5 million under the advisement of Tim Franz, Senior Advisor of SVN | Chicago Commercial, who facilitated the transaction between the buyer, Samuel L. Rubin Co., and the seller, Town Center Holdings, LLC.

“This deal presented a rare value-add opportunity to acquire a stabilized asset in a very strong market within Naperville, providing both the seller and the buyer with an ideal scenario,” said Franz. “The downtown property also offers the possibility of additional mixed-use development for even greater potential of value creation on the site.”

The Jefferson Street property is well-situated on one of the most prominent streets in downtown Naperville, featuring a high-quality tenancy and easy accessibility. Retail tenants in the four-building asset include Jimmy John’s, LuluLemon, Coldstone Creamery, Francesca’s Collection and Adagio Teas.

SVN | Chicago Commercial’s second high-value transaction includes 1230-1242 West Washington Blvd. a 60,000-square-foot mixed-use property comprised of three office and self-storage buildings in Chicago. The property sold for $13.5 million to CLK Properties, in partnership with RCG Longview. Scott Maesel, Chad Schroedl and Drew Dillion of SVN | Chicago Commercial represented the buyers.

“Fulton Market property values have soared in the past several years as multi-national companies like Google, Glassdoor and McDonald’s have opened offices in the area,” said Drew Dillon, Senior Advisor at SVN | Chicago Commercial. “Located in the heart of Chicago’s West Loop, one of the hottest neighborhoods in the country, this property sold for nearly triple its original price, making this a great value-add for the seller.”

The Washington Boulevard property is conveniently located two blocks from the new 600,000-square-foot world headquarters for McDonald’s, which is currently under construction.

###

About SVN | Chicago Commercial
SVN | Chicago Commercial is an independently owned and operated SVN® office. The SVN organization is a globally recognized commercial real estate entity united by a shared vision of creating value with clients, colleagues and our communities. The SVN Brand is comprised of over 1,600 Advisors and staff in more than 200 offices across the globe in six countries. Our brand pillars represent the transparency, innovation and inclusivity that enables all our advisors to collaborate with the entire real estate industry on behalf of our clients. SVN’s unique Shared Value Network® is just one of the many ways that SVN advisors create amazing value with our clients, colleagues and communities.  For more information, visit www.svn.com.

5 for Friday – Justin Langlois, CCIM, Managing Director of SVN | Graham, Langlois and Legendre

Posted on by SVN

This week, our 5 for Friday features Justin Langlois, CCIM, Managing Director of SVN | Graham, Langlois and Legendre, based in Baton Rouge, Louisiana. Langlois specializes in the acquisition and disposition of Class A office, garden-style office and multifamily properties, including student housing, affordable housing and market rate housing sectors. He is also active in retail, self-storage, land and industrial brokerage.

 

1. What advice would you provide to an aspiring advisor who is new to the industry?

Create an awesome database. This will take time and it is a work in progress. Continue working your database by making calls and scheduling meetings. Very few commercial real estate advisors do this on a consistent basis and those who work their databases become market experts.

 

2. What does the SVN Difference mean to you?

When you look at the data of commercial real estate sales over $2MM, 65% of the deals are transacted by buyers and sellers across state lines. My clients like knowing their properties are listed by SVN and available for all brokers to sell. This creates competition in the market, it increases sales prices and all parties win.

 

3. What learning tools would you recommend to your colleagues to further their knowledge and enhance their careers?

I enjoyed reading The 12 Week Year. Several years ago, I read the book and it helped me break down my work week into segments. The segments help me avoid the day-to-day chaos of taking on too much at one time, get a task done and move on to the next task. I read portions of the book throughout the year as a refresher.

 

4. What inspired you to open or join an SVN franchise?

I like picking up the phone and calling another SVN advisor in a different market. The call feels like I’m reaching out to someone in my own office. SVN advisors respect each other, we watch out for each other and we share our own best practices with one another.

 

5. What was your most memorable deal and why?

I spent about two years putting together a build to suit for CVS. It was one of my first BIG deals and throughout the process it felt like all I had learned up to that point about commercial real estate was put into this one deal. The process was long and drawn out, it involved acquiring a local pharmacy, site selection, construction and contract negotiation and fending off preferred developers who were trying to get their hands on the project. It taught me patience, it showed me I was knowledgeable but needed improvement.

 

Are you ready to experience the SVN Difference? Check out our Careers page here.

 

SVN | COMMERCIAL REALTY COMPLETES SALE OF TWO SELF-STORAGE PROPERTIES IN NEW YORK TOTALLING $41.1 MILLION

Posted on by SVN

BUFFALO, NY (December 27, 2017) – SVN | Commercial Realty, one of the nation’s premier self-storage advisory firms, has completed the sale of two self-storage properties in the state of New York for a total of $41.1 million. Nicholas J. Malagisi, SIOR, Managing Director of SVN | Commercial Realty and Chair of the Self-Storage Product Council for SVN International Corp., advised the sellers in the two high-value transactions, comprising the sale of 31-40 Whitestone Expressway in Flushing and 13 Brady Avenue, Hawthorne in Westchester County. Hans Hardisty, MBA, Managing Director of SVN | Deegan-Collins Commercial Realty assisted Malagisi in both transactions.

 

“Each of these transactions offer a distinct opportunity for both the sellers and buyers in a sector seeing rising demand,” said Malagisi. “The self-storage industry delivers buyers foreseeable economic value in a desirable market with strong rents in an undersupplied sector of real estate. For sellers, this asset class offers the opportunity to capitalize on a robust fiscal transaction.”

 

31-40 Whitestone Expressway is a self-storage facility located in the College Point neighborhood of Flushing. The 70,368 square-foot building sits on 1.9 acres with an additional 55,000 square feet of floor to area ratio. The property was sold by Whitestone Expressway Realty, LLC for $27 million to 3104 Whitestone Expressway, LLC.

 

130 Brady Ave., Hawthorne within Westchester County, is a 40,452-square foot self-storage facility situated on 1.5 acres of land. The newly remodeled property includes the opportunity for expansion with space for an additional 2,450 square-foot building. Goodfriend Self-Storage sold the property for $14.1 million to US Storage Centers, Inc.

 

About SVN | Commercial Realty:

SVN | Commercial Realty is an independently owned and operated SVN® office. The SVN organization is a globally recognized commercial real estate entity united by a shared vision of creating value with clients, colleagues and our communities. The SVN Brand is comprised of over 1,600 Advisors

and staff in more than 200 offices across the globe. Our brand pillars represent the transparency, innovation and inclusivity that enables all our advisors to collaborate with the entire real estate industry on behalf of our clients. SVN’s unique Shared Value Network® is just one of the many ways that SVN advisors create amazing value with our clients, colleagues and communities.  For more information, visit www.svn.com.

# # #

5 for Friday – Dan Stewart, CCIM, Managing Director of SVN | Stewart Commercial Group, LLC

Posted on by SVN

This week, our 5 for Friday features Dan Stewart, CCIM, Managing Director of SVN | Stewart Commercial Group, LLC based out of Ann Arbor, Michigan. Dan’s product specialties include auction services, CRE, hospitality, distressed assets, restaurant and retail, and single tenant investment, among many others.

 

1. What advice would you provide to an aspiring advisor who is new to the industry?

It’s going to take a while to get over the hump. Follow the “ASK” principle to influence your personal levels of “Action,” “Skill,” and “Knowledge.” As a new advisor, your competitors will often be more skilled and knowledgeable than you, so you must be in constant action (calls, meetings, proposals, etc.) to outwork them.

 

2. What learning tools would you recommend to your colleagues to further their knowledge and enhance their careers?

At the end of the day, we are in the sales and marketing business. A keen focus on continually improving your sales skills is critical. SVN’s System for Growth is a game changer with excellent content. Early in my career, I pursued and obtained the CCIM designation and would recommend that program to anyone—regardless of career stage. For daily inspiration, I watch Darren Hardy’s “Darren’s Daily” and read SUCCESS Magazine.

 

3. What inspired you to open or join an SVN franchise?

I had a small boutique brokerage firm prior to affiliating with SVN, but I aspired to do larger and more sophisticated transactions. The SVN platform made that dream a reality for me and my office. I wanted the tools and brand to compete for any CRE assignment, and with SVN, I remained in complete control of my business.

 

4. What was your most memorable deal and why?

I was refereed by a senior lender at Wells Fargo to an owner of a Walgreens portfolio last year. The owner was a 97-year-old woman who ran circles around anyone half her age. She even bought herself a new Corvette to celebrate her 97th birthday. We fell in and out of contract three times but I never feared losing the listing. I had built a strong bond with the client, her children, attorney and CPA. I tell the advisors in my office to be part of the team, not a spectator. We finally closed in late 2016 and I helped the client invest in a CVS property.

 

5. What does the SVN Difference mean to you?

Our tools and technological capabilities are top notch, and our brand is centered on quality. I appreciate the people and collaboration at SVN.

 

Are you ready to experience the SVN Difference? Check out our Careers page here.

 

SVN | KD LANCLOS & ASSOCIATES, LLC COMPLETES SALE OF $34.85 MILLION MULTI-FAMILY PORTFOLIO IN AUGUSTA, GA.

Posted on by SVN

AUGUSTA, GA (December 21, 2017) – SVN | KD LANCLOS & ASSOCIATES, LLC, one of the nation’s premier investment sales brokerage firms, has completed the sale of a premier multi-family portfolio consisting of 446 units in Augusta, Ga. Lexerd Capital purchased the well-positioned portfolio for $34.85 million.

Damien Lanclos, CCIM, Managing Director of SVN | KD Lanclos & Associates, LLC represented the seller, ATC Development, in the sale of this portfolio, which is comprised of three apartment communities: Arborside Apartments, Parker Place Apartments and Alexander Place Apartments.

“We’re pleased to have successfully completed this transaction after a competitive sales cycle,” said Lanclos. “Through the support of SVN’s cutting-edge tools, we were able to expertly broker the deal in this high demand area of Georgia, delivering a return on investment for both parties.”

Arborside Apartments, located at 1062 Bertram Road, is comprised of 180 units with one- and two-level style homes. Parker Place Apartments, located at 1065 Bertram Road and 7300 Palomino Court, consists of 139 units. While Alexander Place, is located at 1075 Alexander Drive and features 127 units.

All three communities are situated in the highly desirable area of West Augusta near shopping and dining, with easy access to I-20 and minutes away from Augusta National, the home of The Masters Golf Tournament.

# # #

About SVN | KD Lanclos & Associates, LLC
Based in Augusta, Georgia, SVN | KD Lanclos & Associates, LLC is an independently owned and operated SVN® office.  The SVN organization is a globally recognized commercial real estate entity united by a shared vision of creating value with clients, colleagues and our communities. The SVN Brand is comprised of over 1,600 Advisors and staff in more than 200 offices across the globe in six countries. Our brand pillars represent the transparency, innovation and inclusivity that enables all our advisors to collaborate with the entire real estate industry on behalf of our clients. SVN’s unique Shared Value Network® is just one of the many ways that SVN advisors create amazing value with our clients, colleagues and communities.  For more information, visit svn.com.

 

5 for Friday – Jamey Cox, Vice President of SVN | Percival Partners

Posted on by SVN

This week, our 5 for Friday features Jamey Cox, Vice President of SVN | Percival Partners based in Charlotte, North Carolina. Cox specializes in commercial construction, real estate brokerage, and development; including multifamily/apartment, hospitality, land, self-storage, office and retail.

 

1. What advice would you provide to an aspiring advisor who is new to the industry?

You need to have a plan, work that plan, stick to it and the plan will most likely work.

 

2. What does the SVN Difference mean to you?

The SVN difference means instant credibility and the ability to complete in our market. We are different and people do notice.

 

3. What learning tools would you recommend to your colleagues to further their knowledge and enhance their careers?

The book Goals by Bryan Tracy.

 

4. What inspired you to open or join an SVN franchise?

The opportunity to work in a wonderful industry and achieve personal and financial goals while maintaining a quality of life that allows me to enjoy my young family and not only be defined by my career.

 

5. What was your most memorable deal and why?

The one that got away…..I like to use these to sharpen my skills and do some internal review.

 

 

Are you ready to experience the SVN Difference? Check out our Careers page here.

 

5 for Friday – Perry Laufenberg, Managing Director, SVN | Desert Commercial Advisors

Posted on by SVN

This week, our 5 for Friday features Perry Laufenberg, Managing Director of SVN | Desert Commercial Advisors, in Phoenix, Arizona. Laufenberg is accomplished in transaction management, marketing, working with brokers and landlords of apartments, shopping centers, and office buildings.

 

1. What advice would you provide to an aspiring advisor who is new to the industry?

Hard work and determination will determine your future. Use the SVN database to consistently and methodically prospect for new clients with phone calls and directed marketing campaigns. Focus on building relationships by providing valuable information to the most active commercial real estate owners in your market.

 

2. What does the SVN Difference mean to you?

The SVN Difference is fully embracing the technology, tools and relationships that exist within our company to generate more business and make lifelong friends along the way.

 

3. What learning tools would you recommend to your colleagues to further their knowledge and enhance their careers?

It goes without saying, but the CCIM coursework and training modules are some of the most comprehensive learning tools there are for commercial real estate practitioners.

 

4. What inspired you to open or join an SVN franchise?

SVN has always embraced technology, inclusion, and diversity, which sets us apart from most of the commercial real estate industry. The values and core covenants that the company was founded on continue to be an important part of why we are with SVN.

 

5. What was your most memorable deal and why?

The most memorable deals are always the first big deal one of my advisors closes. Handing out a check that could be someone’s yearly salary at another job, will never get old.

 

Are you ready to experience the SVN Difference? Check out our Careers page here.

 

5 for Friday – Alex Dmyterko, Managing Director and President of SVN | BlackStream

Posted on by SVN

This week, our 5 for Friday features Alex Dmyterko, President and Managing Director of SVN | BlackStream based in Greenville, South Carolina. Dmyterko is accomplished in leading and managing functions of commercial real estate including development, acquisitions, finance & investment, leasing, construction, joint venture structuring, partnerships, legal negotiations, property management and accounting.

1. What advice would you provide to an aspiring advisor who is new to the industry?

It starts with showing up ready to play, every day. Absorb what our trainers teach and use the tools and processes provided by SVN. We have a proven and methodical system for success in CRE. Also, be consistent in your efforts and apply yourself every day toward your goals, you will eventually reach them.

 

2. What does the SVN Difference mean to you?

It means that we have a culture of collaboration, transparency and doing things right. We believe in the Core Covenants. We strive to do the right thing, not necessarily the popular thing and we, as a team, will keep this as our focus so that our clients and our advisors will be exceptionally served.

 

3. What learning tools would you recommend to your colleagues to further their knowledge and enhance their careers?

Risk, Ruin and Riches; Inside the World of Big Time Real Estate by Jim Powell provides an insider’s look and analysis into the deal making of commercial real estate giants, and inflection points in our industry’s history. If this book doesn’t bring out your passion for CRE, then you’re probably in the wrong industry. Trammell Crow, Master Builder: The Story of America’s Largest Real Estate Empire by Robert Sobel, is a biography of my former patriarch and mentor; one of the true titans of the industry and likely the greatest developer ever. It is one of my favorite books.

 

4. What inspired you to open or join an SVN franchise?

I have a unique relationship with SVN BlackStream. In 2014, I was working with SVN International Corp. and sold a franchise to Ford Elliott for four markets in North and South Carolina. Over time, I got to know Ford better and watched him grow his business. After adding a residential real estate franchise to his company and growing BlackStream’s development business, we decided that we could grow even faster as a team. Our partnership takes advantage of Ford’s vision, entrepreneurship, deal making and leadership skills, while adding my experience in developing properties, evolving people and growing companies. SVN’s resources and support provides us with an international company’s clout in our growing markets.

 

5. What was your most memorable deal and why?

I developed Coldwater Crossings in Fort Wayne, Indiana, as my first project. I built a 550,000-square foot power center on 75 acres. It took two years of rezoning, assembling parcels, meeting with neighborhood groups, working with my architect, civil engineers, GC, and preleasing space before we started construction. When we finally bought the property, I collected a commission on lease deals with Walmart, Cub Foods, General Cinema Corp, Walgreens, and 100,000 square feet of other leases. All the commissions were paid on the same day and it was a life-changing moment. When the stores opened and I saw how many jobs had been created and how many tax revenues we generated, I knew that I had found my life’s calling.

 

Are you ready to experience the SVN Difference? Check out our Careers page here.

 

SVN | MCRE, INC. COMPLETES SALE OF $27.4 MILLION MULTIFAMILY PORTFOLIO IN VICTORVILLE, CALIF.

Posted on by SVN

VICTORVILLE, CA (November 29, 2017) – SVN |MCRE, Inc., one of the nation’s premier commercial real estate brokerage firms, has completed the sale of a multi-family portfolio consisting of 320 units in Victorville, Calif. to Sagebrush Capital Holdings for a total of $27.4 million. Michael Miyagishima, CCIM, Managing Director of SVN | MCRE, Inc. brokered the sale of this portfolio, which is comprised of two apartment communities, The Colony and Golden Sands. Miyagishima represented the seller, Tomanek Associates.

“This transaction was highly favorable to both the seller and buyer, as the portfolio offers a fantastic value add opportunity in light of economic fundamentals,” said Miyagishima. “Through the support of SVN’s cutting-edge tools and marketing platforms, we were able to broker the deal with a high return on investment for the seller.”

The first property within the portfolio, The Colony is located at 14450 El Evado Road and sits on 8.96 acres. With 200 units, the 172,000 square-foot apartment community sold for $17.7 Million. Golden Sands is a 93,600 square feet apartment community located at 15930 Nisqually Road. Consisting of 120 units, the complex sold for $9.7 Million.

Victorville is a city in southern California located off Interstate 15. Just northeast of Los Angeles, the city of Victorville continues to serve as a popular location for businesses.

About SVN | MCRE, Inc.

SVN | MCRE, Inc. is an independently owned and operated SVN® office. The SVN organization is a globally recognized commercial real estate entity united by a shared vision of creating value with clients, colleagues and our communities. The SVN Brand is comprised of over 1,600 Advisors and staff in more than 200 offices across the globe. Our brand pillars represent the transparency, innovation and inclusivity that enables all our advisors to collaborate with the entire real estate industry on behalf of our clients. SVN’s unique Shared Value Network® is just one of the many ways that SVN advisors create amazing value with our clients, colleagues and communities.  For more information, visit svn.com.

# # #

SVN | KING PROPERTIES COMPLETES SALE OF PROMINENT MULTIFAMILY PROJECT IN PACIFIC GROVE, CALIF. FOR $20.5 MILLION

Posted on by SVN

Pacific Grove, Calif. (November 28, 207) – SVN | King Properties, one of the nation’s premier net lease brokerage firms, has completed the sale of the Villa Del Mar Apartments for $20.5 million. The 76,170 square-foo

t multifamily development sits on nearly two scenic acres in Pacific Grove, Calif.

Compass Acquisition Partners purchased the property, with Kevin King, Managing Director of SVN | King Properties facilitating the transaction.

“The Villa Del Mar apartment portfolio offers the buyer a compelling value-add opportunity in a quality location, despite the fact that this property presented high barriers to entry,” said Kevin King of SVN | King Properties. “Through SVN’s rich tools and market data, we were able to craft a compelling offer that created a beneficial opportunity for both the buyer and seller.”

Less than a mile from the ocean at 1141 Lighthouse Avenue, Villa Del Mar is a three-building, 78-unit apartment complex well-situated at the intersection of Asilomar Avenue and Lighthouse Avenue. This easily accessible location is also convenient to the Monarch Butterfly Sanctuary, the Point Pinos Lighthouse and the Pacific Grove Marine Gardens, all within a one-mile radius.

About SVN | King Properties:

SVN | King Properties is an independently owned and operated SVN® office. The SVN organization is comprised of over 1,600 Advisors and staff in more offices in the United States than any other commercial real estate firm, and is currently expanding into six other countries. Geographic coverage and amplified outreach to traditional, cross-market, and emerging buyers and tenants is the only way to achieve maximum value for our clients. This is why we proactively promote properties and share fees with the entire industry. This is our unique Shared Value Network® and just one of the many ways that SVN Advisors create amazing value with our clients, colleagues and communities.  For more information, visit www.svn.com.

###

5 for Friday – Steve Kawulok, Managing Director, SVN | Denver Commercial, LLC

Posted on by SVN

This week, our 5 for Friday features Steve Kawulok, Managing Director of SVN | Denver Commercial, LLC in Colorado. Steve specializes in industrial, land, and multifamily/apartment property sectors.

 

1. What advice would you provide to an aspiring advisor who is new to the industry?

Schedule education into your weekly routine – never stop learning and building your skill set.

 

2. What does the SVN Difference mean to you?

The SVN collaborative environment is a culture that supports our clients and our firm.

 

3. What inspired you to open or join an SVN franchise?

I experienced the culture of sharing and professionalism at an SVN national conference I was invited to prior to joining the SVN team.

 

4. What was your most memorable deal and why?

I helped a county health district integrate three different services into a much more efficient facility, which benefited the community and the health care providers.

 

5. What learning tools would you recommend to your colleagues to further their knowledge and enhance their careers?

I like Rod Santomassimo’s book “Brokers Who Dominate” because it talks about creating a presence in the marketplace. I also remind our brokers that SVN itself offers over 500 hours of great educational opportunities throughout the year!

 

Are you ready to experience the SVN Difference? Check out our Careers page here.

5 for Friday – Jay Hintze, Executive Director of SVN | Hintze Commercial Real Estate

Posted on by SVN

This week, our 5 for Friday features Jay Hintze, Executive Director of SVN | Hintze Commercial Real Estate in West Allis, Wisconsin. Jay specializes in acquisition and disposition of commercial and investment properties, development of senior housing, acquisition and disposition of REO properties, and the municipal interaction between the real estate community and local elected officials throughout southeastern Wisconsin.

 

1. What advice would you provide to an aspiring advisor who is new to the industry?

Study and learn about the advantages you have with the SVN trainings and SVN platforms.

 

2. What does the SVN Difference mean to you?

Collaboration across the full spectrum of the SVN Network, which allows us the ability to provide the highest level of sound advice to our clients.

 

3. What inspired you to open an SVN franchise?

I was looking for a National Platform which allowed me to find real estate across state lines and had the educational system that allowed me to grow as a commercial Advisor.

 

4. What was your most memorable deal and why?

I had a local client that had a large medical office building to sell. My client did not think I had the skill set to sell, nor the ability to reach national buyers. I reached out to the medical office council chair in Florida and our joint presentation got us the listing. The Monday Sales call reached a Buyer’s Broker in Boston and he called a client in Reno, Nevada and we sold the building for over $32,000,000. Without the SVN national network I would not have gotten either the listing or the sale.

 

5. What is a fun fact to share about yourself?

My commercial real estate career started while I was the Mayor of Glendale, WI. We converted a 1954 era suburban shopping mall into a $345,000,000 outdoor mall called Bay Shore Mall.

 

Are you ready to experience the SVN Difference? Check out our Careers page here.

SVN AFFORDABLE | LEVENTAL REALTY BROKERS OVER $350 MILLION IN AFFORDABLE HOUSING TRANSACTIONS IN 2017

Posted on by SVN

CINCINNATI, OHIO (November 16, 2017) SVN Affordable | Levental Realty (SVN Affordable), one of the nation’s leading commercial real estate firms specializing in affordable housing, brokered over $350 million in Project Based Section 8 and Section 42 transactions throughout the United States in seven months.

“We commend SVN Affordable | Levental Realty for their continued commitment to providing industry-leading service and expertise in the market to establish SVN as a leader in this sector,” said Kevin Maggiacomo, President & CEO of SVN. “SVN’s Shared Value Network, centered on the philosophy that proactive collaboration with the global commercial real estate ensures maximum value for a property, provides our franchises with the essential tools to deliver exceptional client service and drive successful business results as evidence by these noteworthy transactions.”

The transactions brokered by SVN Affordable include affordable multifamily properties of varying sizes and diverse locations across the country.

“SVN Affordable is a nationally recognized leader in the niche market of Affordable Housing brokerage focusing solely on valuing, marketing and selling Project-Based Section 8 and Section 42 housing through our national platform and proprietary database. Our financial, regulatory and statutory expertise, paired with our strategic alliance of industry professionals, allows us to successfully identify a customized disposition strategy and transaction structure that ensures maximum value and minimal risk for our clients,” said Gene Levental, Managing Director of SVN Affordable. “Given the current economic environment, we are able to appropriately advise sellers to ensure they have the opportunity to capitalize on the current momentum in the market and maximize on an aggressive pricing strategy.”

 

SVN Affordable advised the seller on each of these transactions:

  • New Jersey Portfolio: Consisting of eight individual multifamily properties located throughout Central and Northern, NJ, totaling 1,202 units. Seven of the eight properties closed at $181.5 million.  The eighth property is set to close in the first quarter of 2018, which will bring the total portfolio value to $213 million.  All of these assets benefit from long-term project based HAP Contracts.
  • Rand Grove Village: A Project -Based Section 8 multifamily property consisting of 212 units in Cook County IL. This property sold for $35 million.
  • Circle Terrace Apartments: Consisting of 303 units, located in Landsdowne, MD. This Project-Based Section 8 development sold for $30.5 million.
  • Pequot Highlands: Located in Salem, MA, this 250-unit RAD conversion is covered by a long-term Project-Based Voucher Contract and sold for $26.65 million.
  • Park Vista: Built in 2001, this 212-unit Low Income Housing Tax Credit property located in Watauga, Texas sold for $17.75 million.
  • Roxbury Hills Apartments: Located at 140 Humboldt Avenue in Boston, MA, this 111-unit multifamily development sold for $15.1 million. The property is encumbered by Mass Housing Affordability restrictions in perpetuity.
  • Mark Apartments: A 52-unit, Project-Based Section 8 property located at 959 St. Marks in Crown Heights, Brooklyn, NY, sold for $12.85 million.
  • Baltimore Gardens & Cleveland Gardens: Consisting of two projects covered by separate HAP Contracts, totaling 201 units, this Las Vegas, NV development sold for $12.35 million and will be preserved using Low Income Housing Tax Credits.
  • Berkeley Terrace: A Project-Based Section 8 development located at 10 Berkeley Terrace in Irvington, NJ consisting of 153 units. The property sold for $12.25 million.

 

About SVN Affordable | Levental Realty 

SVN Affordable |Levental Realty is an independently owned and operated SVN® office working exclusively on affordable housing transactions across the country with offices headquartered in Cincinnati, Ohio. The SVN organization, a globally recognized commercial real estate franchisor, is comprised of over 1,600 advisors and staff in more than 200 offices across the globe, and provides services to over 500 markets across the United States.  SVN’s Core Values of transparency, cooperation and organized competition center on what is truly important for achieving organizational success and lasting value. SVN’s unique Shared Value Network® is just one of the many ways that SVN Advisors create amazing value with our clients, colleagues and communities.  For more information, visit www.svn.com.

# # #

 

SVN Honors Our Vets – Jerry Dawson, CCIM of SVN | JCDawson Global Real Estate

Posted on by SVN

In honor of Veterans Day, we sat down to interview a few of our SVN military veterans to learn more about their background and why they believe the commercial real estate industry was a good match for them. 

 

Jerry Dawson is the Managing Director at SVN | JCDawson Global Real Estate in Bowie, Md.

 

Jerry’s Military Background:

“I was a Navy officer and my designation was service warfare, which meant that I was aboard ships as an engineer, as a navigator, and a ship driver, leading divisions on an aircraft carrier.”

 

What attracted you to work in the military?

“I went to school at the Naval Academy for my undergraduate degree, so that was part of my commitment after graduation, to serve in the military. I didn’t have any military background in my family, but it seemed like a great opportunity at a great institution to do a lot of things I had never really thought about doing.”

 

What brought you from the Navy to a commercial real estate career?

“I started working in commercial real estate managing commercial properties in New York City. A few graduates from the Naval Academy who were a couple of years ahead of me worked for that company and put the opportunity on my radar. They talked to me about their positions, and it seemed very interesting – again, something else I had never done before. It was a good opportunity to explore my professional horizons and do something different. Running a property is like running a business – you’ve got income and expenses, responsibilities, and a team of people – and that’s what I wanted to do.”

 

What military-training skills do you think might be transferable to a successful CRE career?

“For me, it was the leadership training. That, and understanding the importance of following through on a mission, leveraging resources, and many other skills that a business person would need to be successful.”

 

How does the culture of SVN resonate with the culture/values in the military?

“I think the one thing that there is some parallel to is teamwork. In the military you are always working as a team. You never really accomplish anything on your own. SVN also emphasizes teamwork.  Acknowledging that team, and understanding how that team works together, in my opinion, is critical to commercial real estate. Transactions don’t happen without coordinating with a team, whether it’s within your SVN office or third-party professionals like attorneys, engineers, etc. In addition to the team concept of SVN’s culture, it’s probably the collaboration piece of the culture.

“The fact that we all try to grow is something at SVN that parallels the military environment. Being able to reach out to people and get support on projects or answers to questions is what you do in the military. You need to figure out how to get things done. You don’t always have the answers. It means finding other people to do that sometimes. SVN provides that culture and environment.”

 

How might commercial real estate be a good career choice for a military veteran?

“I think it all depends on the individual. I can’t say that it works for everybody. This particular aspect of commercial real estate is very entrepreneurial, and you have to be comfortable in that environment. There are other aspects of commercial real estate, just like in every industry, that may attract different people for different reasons. Commercial real estate is a little different in that regard. There’s a space for everyone, it’s just finding the right space for each individual to be passionate and focused.”

 

If you are currently in the military or a veteran and considering a career in commercial real estate, please visit our career pages at svn.com/careers-with-svn. Our managing directors would like to hear from you.

SVN EXPANDS PRESENCE IN SOUTHERN MISSISSIPPI WITH THE ADDITION OF SECOND FRANCHISE

Posted on by SVN

Boston, MA — (November 7, 2017) — SVN International Corp. (SVN), a full-service commercial real estate franchisor of the SVN® brand, announced the addition of its newest franchise office, SVN | Holloway in Southern Mississippi. Led by Managing Director Kenny Holloway, the firm specializes in providing commercial sales, leasing, property management and consulting services throughout the Mississippi market. SVN | Holloway is the second SVN office in the state of Mississippi, expanding the company’s full-service, collaborative approach to commercial real estate in the region.

 

“As the SVN brand continues to grow both nationally and internationally, we strive to build our franchise network with market leaders who share our vision of a collaborative, open approach to commercial real estate, which we have defined as SVN’s Shared Value Network,” said Kevin Maggiacomo, President & CEO of SVN. “SVN | Holloway is a highly beneficial addition to SVN, with strong roots in Southern Mississippi, providing us the opportunity to further expand our brand and provide best in class service in this market.”

Holloway brings 10 years of experience in commercial real estate to SVN | Holloway, where he will lead a team of Advisors focused on commercial real estate advisory within the local market including Harrison, Jackson, Hancock, George, and Pearl River counties. The firm plans to leverage SVN’s international platform to support the firm’s growth and reach, as well as the cutting-edge commercial real estate technology available to all SVN franchises to help advance its offerings to the local market.

“We recognized the need for a full-service commercial real estate brokerage in the region that is supported by a market-leading platform with an international reach and extensive market expertise,” said SVN | Holloway Managing Director, Kenny Holloway. “SVN’s ability to offer the tools for success and growth, as well as training and networking, provided the perfect partnership to drive our goals in providing exceptional client service throughout Southern Mississippi.”

The SVN brand was founded in 1987 out of a desire to improve the commercial real estate industry for all stakeholders through cooperation and a shared vision of creating value with clients, colleagues and communities. SVN currently has more than 200 offices serving 500 national and international markets. By tapping into this broad network, SVN | Holloway is able to offer its clients expanded reach for finding, acquiring and arranging commercial investments.

SVN is the only major commercial real estate brand that markets all of its qualified properties to the entire brokerage and investment community. Participating in more than $10 billion in sales and leasing transactions in 2016, SVN Advisors shared commission fees with co-operating brokers in order to close more deals in less time and at the right value for clients. Advisors also reap the benefits of SVN | Live™ Open Sales Meetings, cloud-based leading-edge technology, and national product councils. This open, transparent and collaborative approach to real estate is the SVN Difference.

All SVN offices are independently owned and operated. To learn more about becoming an SVN commercial real estate business owner, visit http://www.svn.com/franchising-opportunities/

 

# # #

About SVN:

The SVN organization is a globally recognized commercial real estate entity united by a shared vision of creating value with clients, colleagues and our communities. The SVN brand is comprised of over 1,600 advisors and staff in more than 200 offices across the globe in six countries. Our brand pillars represent the transparency, innovation and inclusivity that enables all our advisors to collaborate with the entire real estate industry on behalf of our clients. SVN’s unique Shared Value Network® is just one of the many ways that SVN advisors create amazing value with our clients, colleagues and communities.  For more information, visit www.svn.com.

5 for Friday – Gregory G. Ogin, CCIM, CPM, Managing Director – SVN | Clark Commercial Group

Posted on by SVN

This week, our 5 for Friday features Gregory G. Ogin, CCIM, CPM, Managing Director of SVN | Clark Commercial Group based out of Kailua Kona, HI. Greg’s industry specialties include corporate real estate, golf and resorts, hospitality, restaurant, land and development, multifamily, office and industrial, among many others.

1. What advice would you provide to an aspiring advisor who is new to the industry?

Work hard, work early and get involved in government. Make sure you enjoy life.

 

2. What learning tools would you recommend to your colleagues to further their knowledge and enhance their careers?

Books recommended by the SVN | Elite training program are invaluable.

 

3. What inspired you to open or join an SVN franchise?

I wanted to provide better services to our clients, while also staying competitive. SVN provided me with the resources to do this.

 

4. What was your most memorable deal and why?

The Coconut Grove Marketplace sale of $21 million. I was fired twice from this property due to change of ownership, but I stayed involved. The new owners realized we knew the property and market better than any other national firm.

 

5. What does the SVN Difference mean to you?

It’s a wonderful support system, my mentors have been fantastic.

 

Are you ready to experience the SVN Difference? Check out our Careers page here.

5 for Friday – Chris Blankenship, Managing Director – SVN | Norris Commercial Group

Posted on by SVN

This week, our 5 for Friday features Chris Blankenship, Managing Director of SVN | Norris Commercial Group. The Texas-based brokerage conducts business in San Antonio, New Braunfels, Seguin and San Marcos. Chris’s product specialties include corporate real estate, land and development, hospitality, industrial and self-storage, among many others.

 

1. What advice would you provide to an aspiring advisor who is new to the industry?

Avoid the problem many advisors start out with—no business plan and no mentor to help accelerate the transition into commercial real estate. This business takes time to generate deal flow. Be effective and thoughtful with your purpose while building your business.

 

2.What learning tools would you recommend to your colleagues to further their knowledge and enhance their careers?

Check out Audible. Many of us commute to work, and we can use the time to our advantage by listening to books. Build a list of books that will enrich your professional and personal journey. For the books you love, buy the hardcopy and record important concepts.

 

3. What inspired you to open or join an SVN franchise?

I attended an SVN Conference as a guest with two colleagues in 2011. We were looking for a brand that represented our business. We signed up one week later.

 

4. What does the SVN Difference mean to you?

One word, family. SVN is a group of professionals who collaborate across borders. I’ve always found my colleagues willing to engage and help.

 

5. What was your most memorable deal and why?

A family partition suite on a large land tract, a deal that required perseverance. I worked with a full price offer from a capable seller—which is usually a joy—but endured eight months of “no” in various forms. Getting to the closing table and ending the emotional process for the seller was a reward in itself.

 

Are you ready to experience the SVN Difference? Check out our Careers page here.

 

SVN COMPLETES NEARLY $50 MILLION IN COMMERCIAL REAL ESTATE SALES TRANSACTIONS IN THE SOUTHWEST REGION

Posted on by SVN

Boston, MA (October 18, 2017) SVN franchises in the Southwest region, including SVN | Net Lease Texas, SVN | DataVest Inc. and SVN | Investment Sales Group, have delivered strong results during the first three quarters of 2017, brokering a total of three high-value deals for a combined value of $44.9 million.    

SVN | Net Lease Texas advised on the sale of a portfolio of three Walgreen’s stores located throughout Texas in Dallas, Fort Worth and Austin, for $18.3 million. Glen Berhow, of SVN | Net Lease Texas advised the seller on the transaction.

“SVN | Net Lease Texas holds years of specialized experience in the sales and acquisition of net lease retail investment properties throughout Texas and the U.S.,” said Glen E. Berhow, Managing Director at SVN | Net Lease Texas. “As a result of our experience in this market sector, we were able to achieve a 5 percent capitalization rate for the seller, maximizing the value of the properties.”

SVN |DataVest Inc. completed the sale of Arbors Brookhollow, a 114,421-square-foot office building located on nearly eight acres at 2201 East Lamar Blvd. in Arlington, Texas. Arbors Hui, LLC purchased Arbors Brookhollow for $14.25 million. Bruce Marshall from SVN | DataVest Inc. represented the buyer, Arbors Hui, LLC, while Mike Hardage of Transwestern represented the seller in the transaction.

“With ample parking and easy access to I-30 and State Highway 360, Arbors at Brookhollow presented a compelling opportunity to the buyer,” said Marshall, Managing Director at SVN | DataVest, Inc. “Through our expertise in the market, we were able to advise our client in securing this asset with an opportunity for added value.”

Finally, SVN | Investment Sales Group brokered the sale of Sierra Pointe, a 348-unit multifamily apartment building for $12.35 million.

“Sierra Pointe presented a strong value-add opportunity for the buyer to grow their presence in the Tulsa marketplace,” said Paul Yazbeck, Executive Director at SVN | Investment Sales Group.  “With this recent purchase, the buyer plans to bring occupancy to market levels, while also incorporating an energy conservation program.”

Located at 1433 South 107th East Avenue in Tulsa, Okla., Sierra Pointe was sold to AMG Bridgeport, LLC Todd Franks and Paul Yazbeck of SVN | Investment Sales Group brokered the transaction.

# # #

About SVN:

The SVN organization, a globally recognized commercial real estate franchisor, is comprised of over 1,600 advisors and staff in more than 200 offices across the globe, and provides services to over 500 markets across the United States.  SVN’s Core Values of transparency, cooperation and organized competition center on what is truly important for achieving organizational success and lasting value. SVN’s unique Shared Value Network® is just one of the many ways that SVN Advisors create amazing value with our clients, colleagues and communities.  For more information, visit www.svn.com.

5 for Friday – Tomi Jo Lynch of SVN | Gold Dust Commercial Associates

Posted on by SVN

This week, our 5 for Friday features Tomi Jo Lynch, Managing Director at SVN | Gold Dust Commercial Associates, based out of Nevada. Tomi Jo specializes in industrial properties with a focus on landlord representation throughout Northern Nevada.

 

1. What advice would you provide to an aspiring advisor who is new to the industry?

Have three to six months of savings and be prepared to work 10-12 hours each day. Get to know your colleagues inside and outside of SVN, and make sure they know you.

 

2. What does the SVN Difference mean to you?

Working for a company where “everyone knows your name.” It is increased value for our clients, collaboration with our peers, and a deep commitment to our core covenants.

 

3. What learning tools would you recommend to your colleagues to further their knowledge and enhance their careers?

Join an accountability group, either in your office through a Vital Factor Team, with an outside organization like Entrepreneurs’ Organization or Vistage, or with a one-on-one business coach. Having a team of peers to hold you accountable is imperative. Don’t forget to read your local paper and trade publications; you can’t be an expert in your market if you don’t know what’s happening in your community.

 

4. What was your most memorable deal and why?

They’re all memorable, but the first medical marijuana grow facility and dispensary in Nevada provided a whole new set of challenges. That’s the great thing about commercial real estate – no two days or deals are ever the same.

 

5. What’s a fun fact about yourself?

I am training to climb Mt. Kilimanjaro in four months.

 

Are you ready to experience the SVN Difference? Check out our Careers page here.

 

5 for Friday – Cameron Irons, Managing Director of SVN | Vanguard

Posted on by SVN

This week, our 5 for Friday features Cameron Irons, Managing Director of SVN | Vanguard based out of Orange County, Calif. Cameron’s CRE product specialties include industrial, land and development, medical office, multifamily, office, property management, restaurant, retail and single tenant investment.

 

1. What advice would you provide to an aspiring advisor who is new to the industry?

Create a minimum 60-hour workweek schedule that includes more than 250 cold calls. Focus on creating relationships when you make calls, don’t just sell. Always keep a minimum of 15 prospects in your pipeline and specialize in the usage of CRM software.

 

2. What learning tools would you recommend to your colleagues to further their knowledge and enhance their careers?

Read “The E-Myth Revisited: Why Small Businesses Don’t Work and What to Do About It” by Michael E. Gerber, and “Procrastinate on Purpose: 5 Permissions to Multiply Your Time” by Rory Vaden. Participate in the SVN Elite training program for Managing Directors.

 

3. What inspired you to open or join an SVN franchise?

After 15 years of running my own boutique firm, I decided I needed a national brand to get better listings. SVN offered the best platform and helped me relaunch my brokerage business with a profitable full-service model to create enterprise value. The SVN culture is great and inspires me to recruit every day.

 

4. What was your most memorable deal and why?

I sold my exchange client a large multi-family portfolio in San Diego 15 years ago. The property was listed by a brokerage known for not cooperating. I found out about it from the listing agent before he released it to their office. The deal was difficult and died a thousand deaths before closing successfully. I became friends with the listing agent and he was an integral part of the opening team for our new SVN office in San Diego this year.

 

5. What’s a fun fact about yourself?

I am the Chairman of the Orange County Planning Commission. I also love sport fishing and once I reach my goals, my reward is a boat.

 

Are you ready to experience the SVN Difference? Check out our Careers page here.

SVN | Rich Investment Real Estate Partners Brokers Sale of Santa Monica, CA Multifamily Property for $23.8 Million

Posted on by SVN

Santa Monica, CA (October 11, 2017) SVN | Rich Investment Real Estate Partners, one of the nation’s premier commercial real estate firms, brokered the sale of 153 San Vicente Boulevard, a 30-unit, 44,199-square-foot multifamily development located on over 21,000 square feet of land in Santa Monica, CA for $23.8 million. Shiva Monify of SVN | Rich Investment Real Estate Partners, one of the firm’s top producers, advised on the transaction.

“Properties like 153 San Vicente Boulevard, which offers an ideal location and favorable design features, rarely come on the market in Santa Monica,” said Shiva Monify, Managing Partner of Special Asset Team SVN | Rich Investment Real Estate Partners. “SVN | Rich Investment Real Estate Partners recognized the value at hand and worked to present the client with the perfect opportunity to invest in this asset. Following the property’s closing the new owner plans to renovate the asset and build a new rooftop observation deck.”

Santa Monica is a beachfront city located in western Los Angeles County and is one of the most desirable locations in the area. Situated on Santa Monica Pier, the neighborhood is known for its downtown core and strong tourism. 153 San Vicente Boulevard is well situated in the center of town, walking distance to Ocean Avenue and an ample amount of entertainment options and conveniences.

About SVN | Rich Investment Real Estate Partners

SVN | Rich Investment Real Estate Partners is an independently owned and operated SVN® office with locations throughout Los Angeles county. The SVN organization, a globally recognized commercial real estate franchisor, is comprised of over 1,600 advisors and staff in more than 200 offices across the globe, and provides services to over 500 markets across the United States.  SVN’s Core Values of transparency, cooperation and organized competition center on what is truly important for achieving organizational success and lasting value. SVN’s unique Shared Value Network® is just one of the many ways that SVN Advisors create amazing value with our clients, colleagues and communities.  For more information, visit www.svn.com.

# # #

 

5 for Friday – Deborah Skeans, CCIM, MAI of SVN | Imperial Realty

Posted on by SVN

This week, our 5 for Friday features Deborah Skeans, CCIM, MAI, Managing Director and Senior Advisor for SVN Imperial Realty in Allentown, PA. Debby’s industry specialties include distressed assets, industrial, land, development, medical offices, multifamily residences and property management.

1. What advice would you provide to an aspiring advisor who is new to the industry?

Be prepared to work hard. Concentrate on creating meaningful relationships and become an expert in a specialty or small geographic area. Get CCIM certified and work the SVN plan.

 

2. What does the SVN Difference mean to you?

A better and stronger culture. SVN is a national (and growing international) brand with the tools needed to serve our clients.

 

3. What learning tools would you recommend to your colleagues to further their knowledge and enhance their careers?

CCIM education and active involvement within the industry.

 

4. What inspired you to open or join an SVN franchise?

The desire to stay independent but have the benefit of a national brand.

 

5. What was your most memorable deal and why?

A $37 million land deal with a local hospital network, which followed an $11.8 million deal. The deal gave the network almost 509 acres of land to create one of the finest medical complexes in the Northeast and improve access to medical care in our communities.

 

Are you ready to experience the SVN Difference? Check out our Careers page here.

 

5 for Friday – Michael Thanasouras of SVN | Chicago Commercial

Posted on by SVN

This week, our 5 for Friday features Michael Thanasouras, Managing Director at SVN | Chicago Commercial working throughout the Chicago market area.

 

1. What advice would you provide to an aspiring advisor who is new to the industry?

Learn a market and a product type, try to walk through an area, and get on the phone!

 

2. What does the SVN Difference mean to you?

Doing the right thing for our clients by maximizing their property’s exposure within the market and getting them the best deal.

 

3. What learning tools would you recommend to your colleagues to further their knowledge and enhance their careers?

S4G is the best place to start. I also recommend Google Alerts, and register for local real estate news that gets pushed out to you daily!

 

4. What inspired you to open or join an SVN franchise?

I joined SVN in 2008 to help conduct more investment transactions. It took a couple years due to market conditions, but we knew the route would help us expand. Learning from our peers allows us to accelerate rapidly.

 

5. What was your most memorable deal and why?

A small commercial condo. The buyer was unrepresented at first, then ended up with a broker.  We paid the co-op broker without question. I got the leasing and he offered me the property management, too.

 

Are you ready to experience the SVN Difference? Check out our Careers page here.

 

The US Economy Accelerates While Waiting for Washington to Finalize Deals

Posted on by SVN

While the overall economy remains very healthy on a relative basis, and may in fact be finally showing signs of more robust growth, deal making in Washington will stand as a key influence in determining when – and if – such robust growth will come to fruition. The stock markets have set recent highs in part because Trump appears more willing to make “deals” with Democrats in order to get policies implemented. These deals historically lead to significant tax reform, something the market is already factoring into future expectations. While market analysts place expectations on the potential for a major boost in business investment, and even hiring, this will take time to come to fruition, if ever.

 

Economic Health

Overall estimates of Gross Domestic Product (GDP) growth for the third quarter of 2017 increased to 3%, a key level that is considered the minimal threshold for robust economic growth in the US. Whether this growth is sustainable, however, is yet to be determined.

 

The beginning of the third quarter saw slightly lower job growth in August, with 156,000 added jobs per the Bureau of Labor Statistics, and a minor uptick in unemployment to 4.4%. While these shifts are slight, these numbers are representative of an overall tight labor market.

 

In 2016, median household income hit an all-time high at $59,039, according to the Census Bureau. These higher incomes are no doubt contributing to the still high and rising levels of consumer confidence, up to 122.9 in August of 2017, according to the Conference Board.

 

Third Quarter Impacts

Meanwhile, the third quarter will likely see distorted results in economic indicators due to the temporary effects of the hurricanes impacting the Southeastern US; a recent report by the Census Bureau showed monthly retails sales in August have gone down -0.2%, likely due to Hurricane Harvey. With Irma impacting Florida, there will be broader effects in the short run. In the long run, the rebuilding effort has the potential to have a positive impact on economic growth.

 

Commercial Real Estate on the Rise

Interestingly enough, what remains steady and more certain in these economic times is commercial real estate. CoStar reports continued growth in commercial real estate prices, up 1.2% in July. Also of note, REITs posted their largest gain in Funds From Operations (a measure of cash flow) in the second quarter of this year at 7.9%. By contrast, the many stock market indices appear highly valued on a relative basis.

 

If the economy does not grow at a more robust rate, a likely result if Washington remains in a stalemate, then stock prices could be negatively impacted. Commercial real estate, however, is generally showing signs of demand outpacing supply according to many data providers including REIS. In addition, new construction is flattening rather than accelerating; overall it was down 0.6% in July according to the Census Bureau and has remained mostly flat for all of 2017.

 

As a result, it is evident that the real estate sector is on far more solid footing than the broad stock markets. Investors should consider rebalancing from stocks and bonds and into real estate, especially while mortgage rates remain so low. In fact, research from the Mortgage Bankers Association shows availability of commercial real estate debt continues to increase in 2017 from 2016, thus it is actually getting easier to invest in real estate today.

Diane Danielson Talks with Michael Beckerman About Making CRE Cool Again and Diversity In the Workplace

Posted on by SVN
Diane Danielson

Diane Danielson, Chief Operating Officer of SVN International Corp., recently sat down with Michael Beckerman, CEO of The News Funnel and commercial real estate expert, for what Beckerman calls “one of the most important interviews i have done in the real estate sector.”

During their Q&A, they discussed topics about making commercial real estate cool again, the role technology will play in the sector, and SVN’s diversity recruitment efforts. To read excerpts from their conversation featured on Beckerman’s blog, click here.

SVN Wins 2017 Realcomm 'Digie' Award for SVN Live

Posted on by SVN

SVN International Corp. is excited to announce that we have won the 2017 Realcomm “Digie” Award in the category of Best Use of Automation: Commercial Services.  We were recognized this year for our innovative use of technology and social media in our SVN|Live® Weekly Property Broadcasts. Airing every Monday at 8:30 am PT | 11:30 am ET, the live broadcast highlights new and featured commercial real estate listings presented by the listing SVN Advisor. Solomon Poretsky, SVN International Corp. SVP of Organizational Development, was in attendance and accepted the award on behalf of SVN. This is our 3rd “Digi” award.

Solomon Poretsky, EVP of Organizational Development for SVN, accepts the "Digie" Award
Solomon Poretsky, EVP of Organizational Development for SVN, accepts the “Digie” Award

“It’s no secret that our industry can be a disconnected environment, and it has always been SVN’s goal to change that,” says SVN International Corp. President and CEO Kevin Maggiacomo. “Through our state-of-the-art SVN | Live platform we focus on using new technology, rooted in on our foundational pillar of collaboration, to transform how we do business. This ultimately brings value to our clients, colleagues and CRE community.”

Realcomm began presenting the “Digie” Award (short for Commercial Real Estate Digital Innovation Awards) in 1999. The award’s purpose is to recognize companies, real estate projects, technologies and people that have gone above and beyond to positively impact the industry through the use of technology, automation and innovation. “Digie” Award winners are considered the most innovative individuals and organizations in commercial real estate who are leading the charge for a more efficient, effective and profitable industry.

READ THE FULL PRESS RELEASE HERE

CLICK HERE to learn more about SVN | Live®

SEARCH SVN LISTINGS

SVN® Brand Ranked Nationally as 8th Top Brokerage Firm

Posted on by SVN

Boston, Mass. — June 26, 2017 — SVN International Corp. (SVNIC), a full-service commercial real estate franchisor of the SVN® brand, announced today it has been ranked as the 8th Top Brokerage Firm in the UnitedCPR_Top_Brokerage_2017-01 States by Commercial Property Executive. SVN earned the number 8 ranking, climbing up four spots from 2016’s survey, based on investment sales and lease volume for the previous year.

Each year Commercial Property Executive, a leading resource for the commercial real estate industry, ranks the top brokerage firms by utilizing a weighted formula based on a variety of factors, including form performance in 2016 and over time, using factors like investment sales and leasing activity. Firms represented in the CPE Index are considered leaders in the commercial real estate industry.

kevin“This is an important indicator of the continued growth of SVN – in cold hard results,” says SVNIC President and CEO Kevin Maggiacomo. “This top 10 ranking solidifies the strength of the SVN brand, the reliability of our many online CRE tools and the talent of our hardworking Advisors.”

 

 

 

SVN is the only major commercial real estate brand that proactively markets all of its qualified properties to the entire brokerage and investment community. Participating in approximately $10.6 billion in sales and leasing transactions in 2016, SVN Advisors shared commission fees with co-operating brokers in order to close more deals in less time and at the right value for clients. Advisors also reap the benefits of our SVN Live® Weekly Property Broadcast, cloud-based leading-edge technology, and national product councils. This open, transparent and collaborative approach to real estate is the SVN Difference.

To learn more about SVN’s Core Services and Specialty Practice areas, visit svn.com/svn-specialty-practices.

 

 

Located outside of the US? Click here to find out how you can bring the SVN® brand to your country.

Click here to read the official press release.

Labor Shortage Not Likely to Effect Commercial Real Estate Values

Posted on by SVN

According to the Bureau of Labor Statistics, the national unemployment rate has fallen to 4.3% as of May 2017. Most Quarryeconomists would describe this state of unemployment as near “full employment” as historical data analyses show that the country rarely dips below 4% and never for that long. Yet, this near historically low unemployment has occurred less from overly robust hiring, but instead from a lack of qualified workers able to fill open positions. In fact, the BLS reported in May a modest +138,000 jobs added to the economy, a good but not great number. Perhaps more importantly, the jobs report showed no single sector reporting significant losses, which indicates that all are hiring or holding steady. In addition, the only sector to have shown persistent losses over the last year, Mining (which includes energy production and exploration), has even reversed itself and is posting significant gains over the last few months. Therefore, the jobs report truly only supports the conclusion of an ever growing, albeit slowly, economy.

 

ECONOMIC GROWTH HELD BACK BY LOW LABOR FORCE PARTICIPATION RATE

The challenge lies in the measured economic growth rate which was reported as 1.2% first quarter revised annualized GDP growth by the BEA. Normally, such low unemployment would be accompanied by much higher GDP growth, as in the +3% range, but the U.S. economy has struggled to get above 2% over the past several years. The answer to this problem may be that the low unemployment rate is a result of a low supply of qualified workers and not an excessive amount of job creation. The labor force participation rate, which is the percentage of those theoretically able to work and/or desiring to work, remains low at 62.7%. This measure peaked above 67% in the early 2000’s, and has fallen in-part due to the retiring baby boomers. But following the Great Recession it fell rapidly down, approximately 66%, to this 62-63% range where it still hovers today. Why people are not desiring to or actually working as they did ten years ago is the subject of study and speculation beyond today’s scope. What is becoming clearer with each monthly jobs report, is that it is holding back broader economic growth.

 

COMMERCIAL REAL ESTATE IS HOLDING ITS VALUE

The impact this will have on commercial real estate investments in 2017 and beyond is difficult to predict, but some insights are clear. First, some economists are forecasting a mild recession 12 to 24 months from now, based largely on historic Colorful Shops and Restaurants in Downtown Austin Texas USAmacroeconomic cyclical activity. In the past, such low levels of unemployment were often followed by a mild recession within the same timeframe. However, recessions are typically triggered by excessive speculation, risk-taking, and usually hyper aggressive lending that pushes the economy too far. The data does not show any such excesses, especially in the use of leverage or aggressiveness of lenders. So, such predictions may not come true. Second, the labor shortage is being felt very strongly in the construction services and materials sectors. This means the cost to build new properties is rising faster than market rents and prices can justify. The net result is commercial real estate will probably hold its value just fine, and in fact, appreciate in areas where there is short supply. In conclusion, according to the data, we are probably closer to the middle of the cycle than the end.

 

 

Commercial Real Estate and the Economy Are Holding Steady in 2017

Posted on by SVN

FOUR MAJOR COMMERCIAL REAL ESTATE SECTORS EXPERIENCED POSITIVE RENT GROWTH

Now that all the 1Q17 real estate and economic data has been posted and analyzed, it appears as though 2017 year to date is holding steady. All four major sectors experienced positive rent growth in the first quarter according to Reis, Inc. as apartments were up 6.01.17_BLOG SRVCS CUBE-010.2%, office was up 0.4%, industrial was up 0.6%, and retail was up 0.4%. These growth rates are slower than similar first quarters in recent years, but they still represent growing market demand levels. According to data from the National Council of Real Estate Investment Fiduciaries Pricing, growth and appreciation slowed and the index was up 1.5% in 1Q17. CoStar, who’s equally-weighted national price index grew 4.8%. In regards to overall pricing performance smaller properties are dominating larger ones. The CoStar value-weighted index, which is dominated by larger properties, fell -2.8% over the same time period. This trend has been growing since the start of the year.

NEW SUPPLY REMAINS WELL BELOW RATES

Many of those who are reviewing the slowing pricing data and overall rate of effective rent growth are asking “is this a top?”. The best is answer is to wait to draw any conclusions. New supply of nearly all property types remains well below rates and some are even close to having an oversupply. As a result, sustained declines in real estate pricing or net operating incomes are highly unlikely at this point. The employment market, which historically drives demand for commercial real estate, is as healthy as it has ever looked. The Bureau of Labor Statistics reports an official unemployment rate of 4.4% which matches pre-2008 recession lows. Further, the “underemployment rate” (known as U-6, which includes marginally attached workers and part-time workers seeking full-time employment) has fallen to 8.6%, which is also close to pre-recession lows. Optimism by business leaders has resulted in increased hiring which, according to the Conference Board, grew to the highest level since 2004 as measured by its CEO Confidence score which reached 68 in the first quarter. This score is up from 65 which was the score at the end of the year. (Any reading above 50 indicates optimism.) The survey results of CEOs reveal there is a continued desire to hire in 2017, but finding qualified workers may be a challenge.

ECONOMY POISED FOR GROWTH

"Businesspeople making deal, focus on hands"The first quarter, which objectively was slower than 2016 readings, may not be indicative of the rest of 2017 and beyond. Arguably, the election result and corresponding rise in stock prices and interest rates was not forecast in 2016. As a result, it is possible that investment activity and price growth of commercial real estate slowed in 1Q17 for no better reason than buyers paused to assess what would happen to the capital markets given the changing landscape. While the new administration has yet to offer clear policy guidance, the overall assessment of the economy is that it is still poised and positioned for growth as of May 2017. In fact, many economists who predicted first quarter GDP would be slow, (the first reading was 0.7% growth according to the Bureau of Economic Analysis), have also predicted a late surge that could bring annual GDP growth to 2.5% or higher. This is why stock prices, and especially REIT prices, have remained relatively steady for most of 2017. The overall market is still optimistic and there is no reason change that view for commercial real estate.

Why The Return of Uncertainty Could Be Good for Commercial Real Estate

Posted on by SVN

As the new administration crosses its 100-day mark, there is great uncertainty about what types of policies, ranging from health care, immigration, tax, and regulatory reform, exist. In fact, the celebrated “Trump Trade” has more or less stalled as of today, but the gains remain locked in place for the most part. The business and investment world has collectively reached a “now what” posture. Overall, recent measures of consumer and CEO confidence continue to rise as consumer confidence rose to 125.6 in March, up from the prior reading of 116.1, and CEO confidence rose from its prior reading of 65 to 68. The bulk of the country remains steady with the rise of optimism detected post November 2016, despite the uproar presented by the nightly evening news

Unemployment Rate Near Historic Low

Recent economic data has added additional uncertainty into the discussion. The most recent monthly report shows that only 98,000 jobs were added, a decrease from the previously reported numbers which were well above 200 thousand each month. However, the headline unemployment rate also fell to a near historic low of 4.5%, indicating an overall tight labor market. Inflation, as measured by the Consumer Price Index, also had its first negative reading of -0.3% in March after many successive reports of greater than 2% annualized inflation. The net result is less certainty that the Federal Reserve will raise rates in the near term or that aggressively over the next year. With long-term bond rates already down 20 to 30 basis points from recent highs, the potential for an “overheating” economy where inflation runs wild seems less likely as of today than it did three months ago.

3 Reasons Why Uncertainty Could Be Good News for CREmodern new apartment building on blue sky background

There are three main reasons why this level of political and economic uncertainty can be very good news for the commercial real estate sector.

  1. The market believes the uncertainty has a positive tilt. It’s more likely that we will unexpectedly receive good news rather than bad news (such as a surprise passage of a tax reform package that’s good for business).
  2. There appears to be a lower probability of rapid interest rate increases, and consequently cap rate increases. This should boost the confidence for real estate investors looking to make acquisitions today.
  3. The underlying fundamental demand for commercial real estate space, including apartments, continue to grow. Yardi reported the first increase in five months in average national multifamily rents with a gain of $6 per month to a rate of $1,312. As always, the likelihood of having a perfect world for commercial real estate is low given that interest rates are staying steady while rents and occupancies continue to rise. Right now this appears to be the condition for at least the near term.

Even though the future can be uncertain, real estate is set to outperform stocks and bonds in 2017. In the last month, REITs provided a total return of 6.03% while the S&P 500 index only returned 0.12%. In addition, REITs set a multi-year record for amount of capital raised in the first quarter of ’17. Historically, REIT performance serves as leading indicator of future returns to private real estate.

 

 

Confidence and Optimism in Today's Commercial Real Estate Industry

Posted on by SVN

According to the most recent published reports by the Conference Board, CEO Confidence spiked a highly significant 15 points as of January and the Consumer Confidence Index sits at 114.8 as of February, making each measure sit at 6 year and 15 year highs respectively. Confidence at these levels, especially when true for both consumer and business segments, leads to increased levels of investment and spending, both critical for demand of real estate. To appreciate why confidence is so high, it is important to look at the underlying fundamentals of the macroeconomy in early 2017.

CONSUMERS CONTINUE TO DO WELL IN 2017

Job growth remains robust with multiple months of 200,000+ net new jobs, specifically 235,000 in February per the BLS, and a steady, low unemployment rate, presently 4.7%. This has led to continued wage growth and personal income growth, 0.4% in January alone. In addition, record high stock prices and growing home prices all add up to a (financially) happy household. Spending is up too with retail sales at a record high in the latest monthly reading and a 5.56% year over year growth rate as of January according to the Census Bureau. This has increased growth in manufactured goods order in the US, up 1.2% in January and up six out of the last seven months. In summary, the growing wave of positive news that began in the third quarter of 2016, appears to only have accelerated into the first quarter of 2017. Whether it’s due to raw macroeconomic fundamentals, or optimism following the election, the fact is, consumers are doing very well today.

The business sector still appears to be under investing, with only 0.04% growth in fixed investment in the 4Q2016 and there is a lot ground left to cover to get to full growth in the economy. If businesses invest more vigorously, as CEO confidence and stock market levels suggest could happen, GDP growth should easily exceed 2% and may even approach 3%. Despite all the recovery and improvement, the US economy only managed 1.6% growth in 2016. Regulatory rollback and reform is the one area of the new administration’s agenda most likely to advance in 2017, although not without controversy. These are the aspects President Trump can influence without needing Congressional approval, in many instances, and is more likely the most tangible, real, and immediate area that is causing the rise in business sector optimism. Even if there are small changes, the threat of sudden negative changes or complex new regulations is substantially reduced, such as the sudden change to the Department of Labor’s overtime compensation rules in 2016.

SMALLER DEALS AND OUTPERFORMING SECONDARY MARKETS TRENDS SET TO CONTINUE

A wide range of commercial real estate organizations have also begun intense lobbying on regulatory reforms due to the relaxed lending restrictions stemming from Dodd-Frank to energy use reporting provisions enacted by HUD in FHA multifamily lending. If these efforts are even somewhat successful, commercial property investors will have good reason to be optimistic. So far, commercial real estate has not yet felt the full impact of the Trump administration, rising stock prices and, even to some degree, long term interest rates. All evidence suggests that the commercial real estate industry is equally, if not more, optimistic than the general business community. CoStar, who issues monthly pricing indices for commercial real estate, reported that its value weighted index fell 0.9% in January, up 5.5% year over year, while its equally weighted index rose 1.4% that same month, up 7.5% year over year. The difference is due to the equally weighted index being more representative of secondary/tertiary markets and deals of smaller size. This trend of smaller deals and secondary markets outperforming core assets and primary markets looks highly likely to continue for 2017, especially if the confidence and optimism holds.

 

Commercial Real Estate Markets Expanding in 2017

Posted on by SVN

Commercial real estate markets have been generally growing in terms of pricing, rental rates, and occupancies since approximately 2011 and many market participants are beginning to openly wonder where the market is in the “cycle”.

Since the topic of market cycles can be somewhat misunderstood, we want to offer some clarification before presenting our assessment. Some investors believe that markets experience cycles based on some uniform period of time; such as every “X” years. In reality, markets, such as those for commercial real estate, move from peaks to valleys based on changes in supply and demand and any observation of timing is purely coincidental. An asset will see a “peak” and then decline when supply exceeds demand and this is when investors should look at changes in fundamentals to determine the relative risks and rewards of their investment due to cyclical forces.

CRE Markets Remain Healthy in Early 2017

With data available through the end of 2016, it is easy to see that most commercial real estate asset types are in the middle of the expansion phase of the real estate cycle. These are periods of long term growth in rents and declines in vacancy. According to REIS, all four major real estate classes experienced rent growth in 2016; 3.6% for apartment, 2.0% for retail, 2.4% for office and 2.2% for industrial. Office and industrial markets are experiencing the most absorption and improvements in occupancies and thus appear “earliest” in the expansion phase with year-end vacancy rates of 15.8% and 10% respectively. Retail vacancy rates remained flat at 9.9%, which given the number of “big box” closures, is actually impressive and masks the reality that many retail properties are actually experiencing rental rate growth and near full occupancies. The apartment sector, which began 2016 as the most watched sector given its 1.8% increase in supply, ended at 4.2% vacancy which is unchanged from 2015. Early 2017 data from Yardi Matrix shows modest rent growth has resumed which when considered with the rate of job creation, actually suggests that the apartment sector is not anywhere near as oversupplied as some have feared. However, relatively speaking, it is certainly the “latest” in the expansion phase. Overall, in early 2017 the fundamentals of commercial real estate markets still appear to be relatively healthy. In addition, given the current growth and optimism in the economy, they have room left to run in most situations.

2016 Transaction Volume is 3rd for Highest Recorded CRE Sales Activity

Prices of commercial real estate are a result of interactions between space markets (supply and demand) and the capital markets (competition for investment dollars). According to Moody’s and Real Capital Analytics, commercial real estate prices grew 9% in 2016 for another record breaking year. However, transaction volume was down 11% in 2016, but the year still ranks third after 2015 and 2007 for highest recorded commercial real estate sales activity. Overall, increases in interest rates and the 2016 decline in sales volume suggest the capital markets may put less pressure on price growth in 2017 than in recent years. The question of what cap rates will do given recent rate rises remains open but early evidence suggests that spreads are compressing and cap rates have shown minimal increases, however, this is still “too early” to call.

As of mid-February 2017, the commercial real estate markets appear to remain in expansion mode and 2016 was by all measures, a great year. If growth sustains, as the stock market is suggesting with its setting of new record highs every so often, fundamentals of commercial real estate should keep on moving upward as well. Census Bureau data showed that 2016 was a year for growth in construction spending; up 7.8% for nonresidential (commercial) and up 4.5% for residential (includes apartments). Therefore, there is more new supply coming but all the data suggests there is more than sufficient demand to keep the market in balance and growing.

 

CRE is at a Crossroads by Diane K. Danielson, COO, SVN International Corp.

Posted on by SVN

The commercial real estate industry enters 2017 at a crossroads. Baby boomer retirement will continue and may even accelerate due to economic headwinds, potential slowdowns in infrastructure projects, and the continued influx of new technologies and CRE challenges. As a result, our industry is facing a brain drain at the same time competing industries are embroiled in a war for talent. Yet, with every challenge comes opportunity.

In 2017, the CRE industry can rise to the challenge by becoming more proactive and inclusive of untraditional CRE professionals. Whether they are millennials, women or minorities, these professionals can bring with them a variety of background experiences, new and different job skills, expanded networks of influence, and a diverse array of leadership styles. Why is this important in 2017?

1. Major infrastructure improvements take long-term planning and patience.

As a nation, we need to focus on our infrastructure; but large-scale infrastructure projects take years to plan and complete. That process can last longer than any single economic cycle or government administration, and we need CRE professionals prepared to plan for them and see them through to completion.

Aerial view of fifth avenue2. Urbanization is happening across the country.

Our cities are experiencing unprecedented population growth. To handle this increase we are seeing a rise in place making, mixed-use, and urban infill developments that promote walkability and a live-work-play dynamic. The challenge is to resolve longstanding affordable housing and transportation issues. While we are also seeing a spillover urbanization effect in key suburbs, it’s this new group of urban professionals who are influencing the demographics and ultimately the design of our cities.

3. Smart buildings are evolving into smart cities.

This is the opportunity evolving out of the first two trends. Smart cities use digital technology to improve and sustain community life. Generally, smart city projects are very large, long-term investments that can help drive social change in an urban environment. This happens through the combination and the communication of data across the Internet of Things to improve efficiencies across power grids, transportation, and health and safety. The development and adaptation of buildings to support smart cities is going to be a key component of the CRE industry for years to come.

4. Climate change is already affecting CRE.

There is not a coastal municipality or Fortune 500 company that does not have a division focused on sustainability and the effects of climate change. This is especially a concern in cities like Boston where global headquarters are relocating into urban areas already marked as flood zones. Smart cities will need to incorporate innovative infrastructure design and the means to mitigate the effects of climate change. Existing buildings will have to be adapted not only to smart technology but to sustainability.

The combination of these four trends indicates the evolution of commercial real estate as an industry. CRE professionals today and in the future will draw upon a mix of STEM and social skills in order to best serve our clients and our communities. Our industry has a unique ability to impact the growth and development of our environments. As CRE professionals, we are the de facto stewards of our communities. As they change, we must change along with them.

Diane Danielson’s latest article, CRE is at a Crossroads, is featured in the special “2017 Outlook” section of the January 2017 digital edition of National Real Estate Investor®(NREI).

Commercial Real Estate Investors: How to Adjust to Rising Rates

Posted on by SVN

Mortgage Rates Rise as Lenders React to Market Pressures

In response to a growing economy and inflation pressures, the bond markets, and now the Federal Reserve, appear positioned to support higher short term and long term interest rates. In a move that had been long anticipated, the Fed moved the target for the Fed Rates up 25 basis points from 0.5% to 0.75 % in December. It is expected that the Fed Rates could move two to three times more in 2017 depending on the rate of growth experienced this year. Prior to the Fed decision, long term bond rates moved in reaction to the election, with the 10-Year Treasury going form a three-month low of 1.74% to a three-month high of 2.60% in less than a month. Bond rates have since settled back below 2.40% as of January 17, 2017. This move represented a lot of pent up desire to sell bonds and buy stocks. Early indications are that mortgage rates, both residential and commercial, have moved in similar fashion as lenders quickly react to market pressures. This dynamic is likely to continue for much of 2017. If you invest in commercial real estate, here is how to adjust.

Future Growth in Economy, Jobs Could Increase Demand for Commercial Real Estate

First, realize that these moves in interest rates are related to the anticipation of good news, specifically, about the macro economy and to some extent stock prices. GDP has been reported to have grown at 3.5% in the 3rd quarter of 2016 before any potential “Trump” Man using a modern interfaceeffect could be measured. Job growth has mostly sustained at robust, consistent levels as unemployment sits at near full employment at 4.7%. Of course, the biggest impact has been stock equity prices. The S&P 500 and Dow Jones Industrial Average have risen approximately 10% since the election as a result of anticipated future growth. This future growth in the economy and jobs, if it materializes, will also mean increased demand for all types of commercial real estate, resulting in a possible rise of rental rates and occupancies.

Second, interest rates, assuming they continue to rise, are still far below long term averages. For historical reference, the yield on the 10-Year Treasury averaged 3.58% from 2001 through 2015, and they were much higher in the fifteen years prior. Through this same period of time leveraged private real estate averaged an annual total return of 13.71%, according to the Lakemont Group (analyzing NCREIF return data), beating the average annual return on REITs, 13.19%. Therefore, real estate has and can continue to perform well in higher rate environments.

Finally, rising rate environments require different management strategies than flat or falling rate environments. As inflation is the natural companion of rising interest rates, the ability to push rents upward over time should, in theory, be easier. Flat long term leases are not as advantageous, and will not create as much value on a relative basis. In general, the more realistic upside potential a property’s rent roll presents, the more it could be worth. On the other hand, expenses are likely to rise at a faster rate. Therefore, lease structures that pass expenses, or at least their annual growth, on to the tenant will result in better cash flow and higher valuations. There is also the issue of borrowing in a rising rate environment. For long term holds the answer seems simple – fix long term rates. In reality, it’s much more complex, as accepting a variable rate will result in the greatest present day savings, but with more long term risk. The spread between variable and fixed rates historically gets much wider when lenders expect rates to rise in the near and long term future. As counterintuitive as it sounds, it may actually be more prudent to borrow at variable rates today than before. As long as the property can grow rents and the tenants can absorb increases in expenses, cash flows may be higher, even for the long term.

Top 3 Reasons to Invest in the CRE Retail Sector in 2017

Posted on by SVN

The retail real estate market, having long been the most segmented and divided sector of commercial real estate, was the most uniquely impacted in the last downturn and recovery. Grocery anchored neighborhood centers and free standing national credit retail properties have performed exceedingly well while regional malls, power centers, and non-anchored neighborhood strip centers have lagged in terms of price and rents. The slow economic recovery and ever growing share of e-commerce has made investment in retail real estate less desirable to sectors like multifamily and office. However, with this trend most likely changing in the next few years, retail may be one of the best investment opportunities for 2017. Here are three reasons this could be the case.

 

A beautiful new upscale shopping center with no tenants. Hang your own sign!

First, the economy may have now turned the corner and reentered a faster growth phase. GDP was last estimated to be growing at an annualized rate of 3.2% and unemployment has fallen to 4.6%. Retail sales continues to set new all-time records almost every month with annualized growth rates routinely near 3% according to the Census Bureau. As more people work due to the growing economy, they will have more money to spend. In fact, measures of consumer confidence, median household income, and total personal income have all shown strong growth and improvement in the last several months causing some to forecast yet another record breaking year for holiday sales. Regardless of online shopping, people are spending more at all types of retail establishments. Given that there has been a relatively low rate of new retail construction, it is almost unavoidable for retail rents and occupancies to rise resulting in the rising profitability of retail real estate investors. This rate of rent and occupancy growth may be the fastest of all property sectors in 2017 (at least for some markets).

 

Second, the retail landscape appears better equipped to compete in the new “digital” sales marketplace. Traditional retail tenants are now embracing an “omnichannel” approach, meaning dual focus on in-store and online sales, and recent research by the International Council of Shopping Centers (ICSC) indicates it is starting to show success. According to ICSC, 80% of Black Friday/Thanksgiving weekend shoppers made purchases at physical stores and 28% of those who purchased goods online opted to pick up the orders at a physical store (i.e. “site-to-store”) where 64% of those shopper made additional in-store purchases. Thus, the view that a store can be “online only” appears to be diminishing. In fact, even online giant Amazon is now actively seeking to open physical stores to facilitate order pick-up and enhance impulse purchases. In short, the storefront is not “dead”, just redesigned. Additionally, some categories such as home improvement, furniture, and restaurants cannot be easily moved online. All of these sectors are showing growth in sales and even store openings.

 

Office building with flowers and trees.

Third, many retail properties are located on great pieces of real estate in premier locations. There remain potential shortages for all types of commercial real estate including office, self-storage, heath care, and even apartments in many markets and sub-markets across the country. Retail sites are potentially the best redevelopment and repurposing sites in many in-fill markets. Retail can be converted to office/health care uses with very little costs; even self-storage is feasible for large vacant anchor spaces. Meanwhile, getting new sites approved for development is taking longer and costing more in many, if not most markets and, as municipalities seek to “beautify” older properties the redevelopment of existing buildings is getting relatively easier. Therefore, many retail sites, which are typically relatively low intensity uses, are actually easier to build on than raw, un-entitled land.

 

With an in-depth understanding of the local market, an investor can purchase a substantial income stream today with a potentially great exit strategy in the future. The key is creative vision and a good understanding of the micro forces in the sub-market (think location, location, location).

Looking to invest, lease, or grow your commercial real estate portfolio? Our SVN commercial real estate advisors are here to help. Get started with our team today.