Commercial Real Estate Finance

Archive for the ‘Executive Interviews’ Category

Executive Interview:

Carl Dranoff

Dranoff Properties

Civic leader, entrepreneur and urban visionary, Carl Dranoff is president and founder of Dranoff Properties. For over three decades, he has been a leader in creating unparalleled residential destinations that revitalize the urban core. Though based in Philadelphia, Dranoff’s work has gained national recognition and respect, with a portfolio range of historic rehabilitations, ground-up skyscrapers and complex mixed-use projects.

Dranoff earned his B.S. in Civil Engineering at Drexel University and his MBA from Harvard University. He has been awarded an Honorary Doctorate in Engineering from Drexel University and has been named “Entrepreneur of the Year” by Ernst & Young.

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Q: How did you get your start in the real estate development business?

From an early age I knew I wanted to be a builder.  To prepare, I armed myself with the proper education, graduating from Drexel University with a degree in civil engineering and earning an MBA at the Harvard Business School.

I started my career working for Jack Blumenfeld and Company on the 1500 Locust Street apartment project, then under construction.  I’ve always had a strong entrepreneurial spirit, and working for Blumenfeld helped feed my dream of establishing my own company.

Q: What is your favorite part of your job? What do you find most challenging?

I love proving the naysayers wrong, undertaking projects the pundits say are impossible or too risky. Our projects are complex and the coordination and management of all the aspects really separates us from the competition. We go into cutting edge locations, reinvigorate a neighborhood, and deliver an imaginative and high quality project.

Dranoff Properties employs the best and most experienced staff, along with our veteran executive leaderships.  However, we work in a very fast paced industry, and as any successful company can attest, keeping everyone on the same path can be challenging. Honestly, finding enough hours in the day is the biggest challenge I have. We have projects underway, irons in the fire and a strong vision for the future – it’s an exciting time for us.

Q: How have economic conditions affected Dranoff Properties’ strategy? Have you widened or narrowed your focus due to present conditions?  Read the rest of this entry »

Executive Interview:

Robert Odell, CIC

Chairman

Odell Studner Group, LLC

Rob Odell is a 1985 graduate of Penn State University with a Bachelor of Science Degree in Finance and Accounting.  He has been in the insurance industry for over 20 years, working in numerous areas of insurance agency operations.

Rob currently serves as Chairman of the Odell Studner Group. He was a founding principal of the Clair Odell Group in 1990 before their sale to Mellon Bank in 1998, and then served as Senior Vice President of Citizens Clair Odell following Mellon’s sale to Citizens Bank. In 2004, Rob and Steve Odell formed LyonsOdell. With the addition of their former partner in 2009, that operation transitioned into the Odell Studner Group, where Rob currently serves as Chairman.

Rob has been a Certified Insurance Counselor (CIC) since 1988.  In 2008, the Society of Certified Insurance Counselors recognized him for 20 years of leadership and commitment to continuing education and professionalism. Recently, Rob was named a 2012 Power Broker® by Risk & Insurance Magazine, coining him as “The Real Estate Man.”

Rob has been involved in numerous charities and organizations including CCFA, AICC, ACS, JNF, and CF. Currently, Rob sits on the Board of Directors for the Odell Studner Foundation. 

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Q: You work with a variety of property types. Since the recession began, have any of these asset classes surprised you with their performance (for better or worse)?

The apartment industry has certainly stood out. Multi-family acquisitions have been extremely hot. We have seen tremendous growth in this sector from traditional operators as well as from operators in other sectors–shopping center owners, homebuilders, and office building operators. Industrial operators have also been aggressive with acquisitions and have had improved occupancy rates.

The office market has been nonexistent for the traditional, non-REIT operators. We have seen a contraction in square footage from our portfolio of office building operators.

Q: Has Odell Studner’s real estate strategy changed?

Read the rest of this entry »

Mark Morris

Partner

Fox Rothschild, LLP

Mark is an experienced real estate practitioner with a particular focus on representing clients in the hospitality industry. He routinely handles a broad range of real estate matters, including acquisitions, development, joint ventures, leasing and finance.

As co-chair of the firm’s Hospitality Practice, Mark serves as lead attorney in more than 30 transactions annually involving the sale, acquisition, development and management of full-service and limited-service hotels throughout the United States. He is skilled in the negotiation of franchise and management agreements and has worked closely with major franchise companies, such as Marriott, Choice and Hilton, in transitioning franchisees and resolving disputes.

A familiar face within the hospitality community, Mark has written and spoken on matters of interest to executives in the industry, as well as to shopping center owners and tenants. He has taught at the Institute for Paralegal Training in Philadelphia and lectured on commercial leasing topics to developers and retailers.

Mark’s leadership roles within the firm include serving as a member of the firm’s Executive Committee, managing partner of the firm’s Philadelphia office and former chair of the firm’s Real Estate Department.

In law school at Boston University, Mark received the Paul J. Liacos, Edward P. Hennessey, and G. Joseph Tauro scholarly designations.

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(This is Part Two of our interview. Click here for Part One!)

Q: Philadelphia’s office market has seen some challenges in recent years. What can be done to revive this asset type? Is the answer simply to convert office to something else (multifamily, etc.)?

It’s still a zero-sum game. There hasn’t been significant downtown construction in years. Even with limited space, there haven’t been enough projects to increase the value of that space. Right now, Philadelphia’s businesses are just trading places with each other, not absorbing more space. Many service-oriented businesses have downsized because of new technology and better efficiency, which drives down office demand. There aren’t many office-based businesses moving into the area, except to the Navy Yard, and to some extent demand driven by the universities and medical centers. Read the rest of this entry »

Mark Morris

Partner

Fox Rothschild, LLP

Mark is an experienced real estate practitioner with a particular focus on representing clients in the hospitality industry. He routinely handles a broad range of real estate matters, including acquisitions, development, joint ventures, leasing and finance.

As co-chair of the firm’s Hospitality Practice, Mark serves as lead attorney in more than 30 transactions annually involving the sale, acquisition, development and management of full-service and limited-service hotels throughout the United States. He is skilled in the negotiation of franchise and management agreements and has worked closely with major franchise companies, such as Marriott, Choice and Hilton, in transitioning franchisees and resolving disputes.

A familiar face within the hospitality community, Mark has written and spoken on matters of interest to executives in the industry, as well as to shopping center owners and tenants. He has taught at the Institute for Paralegal Training in Philadelphia and lectured on commercial leasing topics to developers and retailers.

Mark’s leadership roles within the firm include serving as a member of the firm’s Executive Committee, managing partner of the firm’s Philadelphia office and former chair of the firm’s Real Estate Department.

In law school at Boston University, Mark received the Paul J. Liacos, Edward P. Hennessey, and G. Joseph Tauro scholarly designations.

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Q: How has your background in law informed your perspective on real estate?

When you are a real estate lawyer and have been at it for a long time, you come to understand business issues involved in transactions. It is essential to understand your client’s interests, the overall business environment, and the various issues that sometimes arise. In order to be a good advocate for a real estate professional, you need to understand the market and its key pressure points. That is essential to being an effective advocate for your clients. Read the rest of this entry »

Executive Interview:

David E. Arnold

Co-President & Chief Executive Officer – East

PKF Consulting

David Arnold is Co-President and Chief Executive Officer – East with Colliers PKF Consulting USA.  He is in charge of the firm’s Eastern Region and its Philadelphia office. He has more than 25 years experience in hospitality and real estate development planning. Mr. Arnold has earned a national reputation as a consultant within the conference center industry. He is the original author of The Conference Center Industry: A Statistical and Financial Profile, the most comprehensive publication dedicated to that industry. He is one of the founders of the International Association of Conference Centers (IACC) and serves on its board of directors.

Mr. Arnold has conducted and directed economic feasibility studies, marketing strategies, corporate strategic planning studies, and financial analyses for numerous clients in the hospitality and real estate industries. He has expertise in hotel operations, marina operations, and development planning for hotels, conference and convention centers, golf courses, retail mixed-use projects, office and residential property.

He served for 12 years on the Recreational Development Council, Commercial and Retail Development Council and the Hotel Development Council of the Urban Land Institute. He was a principal author of the Hotel/Motel Development Handbook, published by the ULI.

Previously, Mr. Arnold served as the National Director of Management Advisory Services for Laventhol & Horwath and was Chairman of that firm’s International MAS Committee.

He holds a Bachelor’s Degree in Hotel and Restaurant Administration from Cornell University and is a past president of the Philadelphia Chapter of the Cornell Hotel Society. He is a recipient of the Distinguished Service Award from the IACC.

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Q: In the last year or so, have you seen conditions change in the hospitality or tourism sectors?

As we all well know, 2008 and 2009 had a devastating impact on the industry, cutting operating income by 40 percent. We’ve been clawing our way back ever since, but we’re only halfway there. Today, we are getting to the point that we’re seeing occupancy numbers approach those of 2007, but rates are still languishing behind pre-recession rates. The exceptions, of course, are New York, San Francisco, and Boston.

The hospitality industry still faces a lot of uncertainty in 2013, since we’re vulnerable to many different factors: gas prices, political questions, companies reluctant to expand, airline mergers, and so on. We think most of this volatility should settle down by 2014, and if 2013 remains flat, we can expect an uptick next year. Read the rest of this entry »

Executive Interview:

Derek Sylvester

Principal

Gulph Creek Hotels

Derek Sylvester joined Pennsylvania-based Gulph Creek Hotels in 2006. Prior to this company, he held management positions with Marriott Hotels & Resorts. He has also served as a consultant with Pannell Kerr Forster, Restaurant Advisory Services and Sylvester Consulting Group. Mr. Sylvester’s development experience includes the Palace at Somerset Park in Somerset, New Jersey; Castle Hill Inn & Resort in Newport, Rhode Island; and the redevelopment of the Hotel Hershey in Pennsylvania and the Wyndham Bermuda Resort in Southampton, Bermuda. He holds a B.S. from Cornell University School of Hotel Administration.

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Q: What is your favorite part of your job? What is your least favorite?

I enjoy the diversity of my job.  I spend time in sales – prospecting and pitching new contracts, acquisitions, capital raising and development.  A good portion of my time is spent in operations – reviewing numbers, sales & marketing, leadership reviews, team building and owner/investor relations.  I also oversee our new hotel development projects – permitting, design, construction and openings.  We have ten hotels in varying stages of the development process.

Q: How has Gulph Creek Hotels’ strategy changed in light of present economic conditions?  Have you expanded/narrowed your focus?

We have expanded our focus to acquiring and managing hotels within the wider geographic radius of New York to DC and are looking at more turnaround, value-add opportunities in both the select-service and full-service segments.  We are spending more time looking for development sites and opportunities now that the hotel metrics and financing markets have improved.

Q: In the last year or so, have you seen conditions in the hospitality sector change? For better or worse?

The lodging sector seems to have stabilized, which is very positive given the declines and uncertainty we experienced from 2008 to 2010.

Q: You have done a lot of work with resort hotels, such as properties in Bermuda, Hershey, PA, and Newport, RI. What unique challenges come with operating and developing properties specifically for leisure travelers? Read the rest of this entry »

Executive Interview:

Ryan Severino

Senior Economist and Associate Director of Research

Reis, Inc.

@rseverino_reis

Ryan Severino is senior economist and associate director of research in the research and economics department at Reis, the team responsible for the firm’s market forecasting, valuation, and portfolio analytics services.

Prior to Reis, Ryan served as the Associate Director of Research at MetLife Real Estate Investments where he was responsible for macroeconomic and real estate market analysis, formulating portfolio strategy, and conducting deal reviews. Before joining MetLife, Ryan served as the Director of Investment Strategy and Market Research at Starwood Capital Group where he directed the entire research effort at the firm. Ryan has also held research positions at Prudential Real Estate Investors and UBS.

Additionally, Ryan currently serves as an Adjunct Professor of finance and economics at Columbia University and New York University teaching courses such as Urban Economics, Portfolio and Risk Management, and Macroeconomics. He also has experience in real state asset management, portfolio management, and acquisitions. Ryan’s original research has appeared in the Wharton Real Estate Review and The Real Estate Finance Journal. His assessments of market conditions have appeared in The Economist, The Wall Street Journal, The New York Times, and The Financial Times, and he has appeared on CNBC and BNN. 

Ryan holds a master’s degree from Columbia University, where he studied International  Finance and Economics, a bachelor’s degree from Georgetown University, where he studied Finance, Japanese, and Economics, and is a CFA Charterholder.

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Q: How did you get your start on the research side of real estate investment?

My real start began at Prudential Real Estate Investors. I had worked there in asset and portfolio management, but I have always been an academic person. I left Prudential to obtain my graduate degree and I returned to join their research department after I was finished with my graduate program. 

Q: As an economist, do you think the government’s perpetual gridlock, especially concerning taxes and fiscal policy, will affect commercial real estate? How?

The problem with gridlock is that in the absence of solutions, uncertainty prevails and this uncertainty tends to have a paralyzing impact on businesses. Until they know how the government is going to act, they choose to do very little, or nothing, even as the economy slowly recovers. Read the rest of this entry »

Executive Interview:

Greg Rogerson, Principal

J.G. Petrucci Co.

Greg Rogerson is a principal of J.G. Petrucci Co., Inc. (“JGPCO”).  An attorney, Greg oversees the negotiation of all contracts, leases and municipal approvals for each JGPCO project.  As such, he effectively directs and manages all legal and financial transactions pertaining to acquisitions, leasing and commercial development, including complex zoning and land use approvals.  Greg has also developed great insight into the unique issues involved in the re-development of brownfield sites in both New Jersey and Pennsylvania, which has become an important area of focus for the company.  In all, Greg has overseen the acquisition and disposition of more than $350 million worth of real estate transactions. 

 Mr. Rogerson received his law degree from Temple University School of Law and his Bachelor of Arts in History from the University of Delaware, where he was a three-year letterman in football. He is a member of the New Jersey Bar and resides in Bucks County, PA with his wife and three (3) children.  In his spare time Greg enjoys golf and coaching his children’s sports teams.

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Q: How did you get your start in the real estate business?

Jim Petrucci hired me right out of law school. My legal background helped a lot in the complex world of real estate development.

Q: What is your favorite part of your job? What do you find most challenging?

My favorite part is the redevelopment of obsolete brownfield sites and turning them into productive commercial projects that provide jobs and a stable rateable for the community. The most challenging aspect of this industry is the entitlement process in high barrier to entry markets.

Q: How have economic conditions affected J.G. Petrucci’s strategies? Have you widened or narrowed your focus due to present conditions?  Read the rest of this entry »

John Grady

President

Philadelphia Industrial Development Corporation (PIDC)

John Grady has more than 20 years’ experience in planning, negotiating and implementing public-private development initiatives.  Since 1998, John has served in a number of leadership positions with the Philadelphia Industrial Development Corporation, Philadelphia’s economic development corporation, where he currently is President.  Prior to joining PIDC, John worked for nearly a decade with the non-profit Cooper’s Ferry Development Association planning and developing Camden’s central waterfront.  John earned a Bachelor’s Degree in Economics from LaSalle University and a Master’s Degree in Government Administration from the University of Pennsylvania. He lives in the East Falls section of Philadelphia with his wife and three children.

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This is a continuation of an interview started last Thursday. Click here for Part I!

Q: How does green technology factor into PIDC’s strategy? Have you found LEED certification and other sustainability measures are helping to bring new business to the city?

We’ve found that strategies like LEED certification reinforce the urban proposition of investing and developing in dense, transit-connected areas with existing infrastructure. This trend definitely helps the city by branding it as a dynamic and progressive place that reflects the values of most sophisticated companies, investors and employees.  Mayor Nutter is our Chief Brand Officer in this regard and does a great job demonstrating the business proposition for why it’s important, and not just nice, for Philadelphia to be viewed as the greenest city in America.

PIDC specifically supports this in a number of ways.  We see it at The Navy Yard where all the new buildings and renovations are LEED certified or done to a LEED standard. With the help of Synterra Partners, we’ve encouraged investors like Urban Outfitters and Liberty Property Trust to set a high standard. We’ve created a  brand for The Navy Yard as a Smart Energy Campus, a progressive location focused on high-quality and high-performance design.

We are also supporting major efforts in energy efficiency with the Penn State and DOE Energy Efficient Buildings Hub and in smart grid research and deployment, making it a national center for academic, government and corporate research into energy issues of all types.  All of these things make The Navy Yard a significant draw for progressive companies that are in the energy field or want to locate in a progressive energy environment.         Read the rest of this entry »

John Grady

President

Philadelphia Industrial Development Corporation (PIDC)

John Grady has more than 20 years’ experience in planning, negotiating and implementing public-private development initiatives.  Since 1998, John has served in a number of leadership positions with the Philadelphia Industrial Development Corporation, Philadelphia’s economic development corporation, where he currently is President.  Prior to joining PIDC, John worked for nearly a decade with the non-profit  Cooper’s Ferry Development Association planning and developing Camden’s central waterfront.  John earned a Bachelor’s Degree in Economics from LaSalle University and a Master’s Degree in Government Administration from the University of Pennsylvania.  He lives in the East Falls section of Philadelphia with his wife and three children. 

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Q: How did you get your start in the business?

I began my career right out of college working as a Project Manager at the Cooper’s Ferry Development Association (CFDA) in Camden, working on the development of the Camden waterfront at a relatively early stage in its progress.  I studied economics in college and was interested in a career that would combine public policy and private markets around investment in cities.

Q: How has PIDC’s strategy changed as a result of present economic conditions?  Have you expanded or narrowed your focus?

We’ve done some of both.  In the market we’ve seen over the past few years, where investment decisions are delayed or constrained, PIDC plays a more important role in supplementing the market to get things done. Our resources are not unlimited, so we have to narrow our focus to areas where we can maximize impact. At the same time, we have broadened some of our lending programs, dedicating new resources to smaller businesses with new direct lending and loan guarantee programs.

Q: The Navy Yard has been one of your most high-profile projects in recent years, but some worry its South Philly location will draw tenants from Center City. Do you think outlying projects pose a threat to Center City’s office market? Read the rest of this entry »