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50 Under 40: Mac McCall

Mac McCall
Regional Managing Partner
Franklin Street
Atlanta

Since McCall opened the Franklin Street office in Atlanta, the team there has grown from three employees to more than 25, and its revenue has grown by more than 700% from 2009 to 2014. McCall also runs Franklin Street’s retail investment sales team and sells shopping centers and single-tenant, net-leased properties across the Southeast. Since entering the industry in 2002, he has been involved in approximately 500 transactions, totaling more than $1.5 billion in volume. Before joining Franklin Street, McCall was a Top 20 producer three consecutive years for Marcus & Millichap’s National Retail Group, and the top-producing broker in the firm’s Atlanta office three out of four years. He frequently gives time to the Pediatric Cancer Foundation, Habitat for Humanity and Camp Twin Lakes.

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Franklin Street, Neal Realty Sell Two Palm Beach County Shopping Centers for More Than $9 Million

Franklin Street, along with Neal Realty & Investments, Inc., sells two open-air shopping centers in Palm Beach County to a Northeast U.S. investor for $9.1 million.

Greg Matus, regional managing partner-South Florida, and retail investment associate Peter Crane, both of Franklin Street, and Tim Neal of Neal Realty & Investments, Inc. represented the buyer, Perkins Realty Management, LLC.

Both transactions closed on October 22.

Perkins acquired the Shoppes of Delray, a 23,094-square-foot, multi-tenant center for $5.1 million. The center is nearly 90 percent occupied with key tenants such as: Radio Shack, Cucina Fra Divolo Restaurant, China Garden Restaurant and Atlantic Insurance. David Donnellan of CBRE represented the seller. The property is located at 14400-14428 Military Trail, on the corner of Military Trail and Atlantic Avenue.

Perkins also purchased Gables End Plaza, an 18,311-square-foot retail and professional center located at 4895 Windward Passage Drive, in Boynton Beach. Built in 2000 and renovated in 2014, the plaza is nearly 100 percent occupied. The sale price was $4 million. Perkins is relatively new to the South Florida real estate market. In March, the company paid $5.8 million for the Pinecrest Square shopping center in Fort Lauderdale, a transaction also arranged by Franklin Street.

“This buyer is looking to invest in high-quality assets for its long-term portfolio,” Matus said. “The investor has come down to South Florida with an aggressive plan to buy and hold retail properties.”

As part of the deal, Perkins obtained a new commercial mortgage-backed securities (or CMBS) loan for all three properties combined.

“This is a great time for investors who are looking to add properties for the long-term,” Matus said. “Interest rates remain low and lenders continue to be active in the market.”

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An Investment in People and Properties

Founded in 2006 in the middle of the real estate bubble, Franklin Street flourished while other commercial real estate companies were downsizing.

The full-service commercial real estate firm, based in Tampa, Florida, has become one of the fastest-growing in the region. The firm’s commercial property management division specializes in maximizing the value of clients’ assets by maintaining strong relationships with owners, tenants and vendors while focusing on well-defined business development objectives.

“The key to Franklin Street’s success has been investing in our people,” says Patrick McGucken, Vice President of Commercial Management Services at Franklin Street. We make sure our people and our employees have everything they need to successfully complete all the tasks that they are given, and to be successful property advisors for our clients. I think we have done an excellent job of making sure that all of our employees understand our culture and the way we go about doing things – it’s quite a unique place we have here.”

Customer-Focused Management

Franklin Street prides itself on building relationships with clients and listening to what they want to accomplish with each project.

“Our management philosophy is based on whatever our clients’ needs are,” McGucken says. “We base our strategies on a property-by-property basis, depending on our clients’ goals and needs. We look at ourselves as a trusted real estate advisor for our clients, and whatever their goals and needs are, we try to accomplish them.”

According to McGucken, working with many different types of assets and various markets requires unique strategies.

“We sit down with our owners, understand what their goals are and what they would like to achieve with their assets,” he says. “We work with them on creating a comprehensive plan to achieve their goals. We can manage each asset differently because of their size, yet we still achieve the same scale as many of the larger companies because we have a significant enough portfolio in the Southeast.”

With commercial property management, there can be a high level of unpredictability at times. Franklin Street works to excel in areas where predictability often yields long-term success.

“One of the core strengths of the management company – and one of our biggest strengths – is our accounting,” McGucken says. “In the world of management, you have to deal with so many unknowns and so many things that pop up. You never know what you’re going to have to deal with on any given day. The one thing that’s stead about management is accounting, and our accounting is exceptional. With our lease audits, it’s about putting all of our lease abstracts together, getting tenants paying the proper amount and doing all the things necessary to successfully account for everything on our properties.”

Defying the Odds

In the early days, Franklin Street had to weather an extremely unfavorable real estate climate. The firm faced obstacles while gaining momentum but leveraged the poor market conditions and used them ot its advantage.

“One of the unique challenges we faced is that we grew through one of the worst real estate markets in history,” McGucken says. “We began by working with a lot of special servicers and a lot of banks, and we started with the distressed asset model – that was how we grew. We came in at a very tough time in real estate when there were a lot of things that needed to be worked out on the finance side. A lot of properties went into foreclosure, so there was a need for receivership services and stabilizing the assets.”

Initially, Franklin Street focused on helping clients, including some lenders, work through very tough issues.

“Now we have shifted, and there’s not really many distressed properties out there,” McGucken says. “The big challenge with that was having our clients understand that we are not singularly focused on distressed assets, and we can handle anything. Diversifying our businesses and having multiple verticals has really helped us get through all of the ups and downs of the real estate cycle.”

Franklin Street’s reputation and market have affected the firm’s growth, and the firm is beginning to exceed the boundaries of the Southeast region of the United States. The firm’s team is confident that, as it expands, its individualized hands-on management approach will result in success.

“We plan to continue to grow,” McGucken says. “We would like to expand into new markets, expand into new states, continue opening new offices and become a national company as opposed to just a Southeastern boutique company. If we can continue to create the culture we have established and foster that culture throughout our company, as we grow to new offices, we will be able to keep the same ideals and values.”

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Why Experiential Retail is Rapidly Rising

MIAMI—Experiential retail. It’s a trend that’s not only gaining momentum, it’s springing up across the board as retail shifts to meet new consumer demands. Some are saying experiential retail projects like Avalon in Atlanta could transform the industry.

“Restaurants and retailers are learning to become omnichannel, focusing on how to better align themselves with their customer base and how to win and keep loyal customers,” says Brian Bern, a senior director of real estate services at Franklin Street. He previously filled us in on the cause and effect of shrinking retail inventory.

As an example of experiential retail, Bern points to Whole Foods. The organic grocer has a blog where it posts recipes, cooking tips and more. Shoppers follow their blog and come in to buy the products and items featured.

“Nordstrom has restaurants and bars located within their traditional department stores, while attracting more customers online and at their off-priced Nordstrom Rack locations,” Bern says. “Shopping center owners and managers are paying more attention to the retail mix in their centers. They are seeking retailers that offer an experience in order to drive additional and repeat traffic to their centers.”

What’s ahead for Florida retail? Bern notes population growth in Florida is once again strong and should continue at a healthy pace. What’s more, tourism continues to set all-time records, which means more dollars are being spent in Florida’s restaurants and retail centers.

“This bodes well for the long-term outlook,” he says. “We anticipate an uptick in new construction moving forward, with retail rents steadily rising. New development and redevelopment projects will continue to be a welcome site after a long recovery from the Great Recession.”

 

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Palm Beach Shopping Centers Command $9 Million

Perkins Realty Management, LLC has acquired the Shoppes of Delray, a 23,094-square-foot multi-tenant center, and Gables End Plaza, an 18,311-square-foot retail and professional center, in Florida’s Palm Beach County for a combined $9.1 million from Pebb Enterprises.

Franklin Street, along with Neal Realty & Investments, Inc., represented the buyer in the transaction of the two open-air centers. David Donnellan of CBRE represented the seller.

“The buyer is a savvy real estate investor originally from the Northeast who traded in multifamily assets,” Greg Matus, Franklin Street’s regional managing partner-South Florida, told CPE. “Since the spring, he has been turning his attention to buying and holding high-quality retail assets in South Florida, which is currently experiencing a retail boom.”

Located at 14400-14428 Military Trail, the Shoppes of Delray had a sales price of $5.1 million and is nearly 90 percent occupied with key tenants such as: Radio Shack, Cucina Fra Divolo Restaurant, China Garden Restaurant and Atlantic Insurance.

Located at 4895 Windward Passage Drive in Boynton Beach, the Gables End Plaza sold for $4 million and is nearly 100 percent occupied.

“Each is located near major arteries that have high traffic counts, which is very important to the success of a retail center,” Matus said. “The properties have solid long-term tenants in place and based on competitive properties in the market, the buyer sees an opportunity to increase rents as leases come due. Overall, the two properties are quality assets, which the investor plans on holding for the long-term.”

Rents are currently between $18 and $20 per square-foot, while rents at nearby competing centers are in the $30s per square-foot.

According to Matus, Perkins’ strategy is to buy quality assets at a fair market price with value add upside that can be held for the long term. Both of these properties fit into that plan. It plans on making some cosmetic improvements to the properties where needed, but no significant renovations at this time.

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Franklin Street, Neil Realty Arrange $9.1 Million Purchase of Two Shopping Centers in Palm Beach County

Delray Beach and Boynton Beach, Fla. – Franklin Street and Neal Realty & Investments Inc. have arranged the purchase of two shopping centers in Palm Beach County totaling $9.1 million.

Greg Matus and Peter Crane of Franklin Street and Tim Neal of Neal Realty represented the buyer, Perkins Realty Management LLC, in both transactions. Acquisitions include the $5.1 million purchase of the Shoppes of Delray, a 23,094-square-foot shopping center located in Delray Beach, and the $4 million acquisition of Gables End Plaza, an 18,311-square-foot shopping center located in Boynton Beach.

Shoppes of Delray was nearly 90 percent leased at the time of sale to tenants including Radio Shack, Cucina Fra Divolo Restaurant, China Garden Restaurant and Atlantic Insurance. David Donnellan of CBRE represented the seller in the transaction. Built in 2000 and renovated in 2014, Gables End Plaza was 100 percent leased at the time of sale. As part of the two deals, the buyer has obtained a new CMBS loan for both assets.

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People: Franklin Street appoints VP

Franklin Street has appointed Lisa Jesmer vice president of management services. She had been a senior director of asset services at CBRE. She holds a bachelor’s degree from the Rochester Institute of Technology.

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Franklin Street Nabs Another Palm Beach Deal

As CPE reported, Perkins Realty Management LLCacquired Shoppes of Delray, a 23,094-square-foot neighborhood shopping center in Palm Beach County on October 22. Just a few days later news arose that the Northeast U.S. investor also closed on Gables End Plaza on the same day, in a separate transaction worth $4 million.

Gables End Plaza is located at 4895 Windward Passage Drive in Boynton Beach, just 6 miles up Military Trail from Shoppes of Delray. The 18,311-square -foot retail and professional center was built in 2000 and it has undergone a series of renovations in 2014. The property was nearly 100 percent occupied at time of the sale, according to Franklin Street.

Franklin Street sold both open-air shopping centers, along with Neal Realty & Investments, Inc. The team representing the sellers was led by Regional Managing Partner Greg Matus and Retail Investment Associate Peter Crane with Franklin Street’s South Florida office. Tim Neal of Neal Realty & Investments, Inc. represented Perkins.

The buyer is relatively new to the South Florida real estate market. In March, Perkins paid $5.8 million for the Pinecrest Square shopping center in Fort Lauderdale, a transaction also arranged by Franklin Street. The company obtained a new CMBS loan for all three properties combined.

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Franklin Street and Neal Realty Sell Two Palm Beach County Shopping Centers

Franklin Street, along with Neal Realty & Investments, Inc., sells two open-air shopping centers in Palm Beach County to a Northeast U.S. investor for $9.1 million. Greg Matus, regional managing partner-South Florida, and retail investment associate Peter Crane, both of Franklin Street, and Tim Neal of Neal Realty & Investments, Inc. represented the buyer, Perkins Realty Management, LLC. Both transactions closed on October 22.

Perkins acquired the Shoppes of Delray, a 23,094-square-foot, multi-tenant center for $5.1 million.  The center is nearly 90 percent occupied with key tenants such as: Radio Shack, Cucina Fra Divolo Restaurant, China Garden Restaurant and Atlantic Insurance. David Donnellan of CBRE represented the seller.  The property is located at 14400-14428 Military Trail, on the corner of Military Trail and Atlantic Avenue.

Perkins also purchased Gables End Plaza, an 18,311-square-foot retail and professional center located at 4895 Windward Passage Drive, in Boynton Beach. Built in 2000 and renovated in 2014, the plaza is nearly 100 percent occupied. The sale price was $4 million.

Perkins is relatively new to the South Florida real estate market. In March, the company paid $5.8 million for the Pinecrest Square shopping center in Fort Lauderdale, a transaction also arranged by Franklin Street.

“This buyer is looking to invest in high-quality assets for its long-term portfolio,” Matus said. “The investor has come down to South Florida with an aggressive plan to buy and hold retail properties.”

As part of the deal, Perkins obtained a new commercial mortgage-backed securities (or CMBS) loan for all three properties combined.

“This is a great time for investors who are looking to add properties for the long-term,” Matus said. “Interest rates remain low and lenders continue to be active in the market.”

About Franklin Street: Franklin Street is a family of full-service real estate companies focused on delivering value-added solutions to meet the evolving needs of clients. Through a collaborative philosophy of leveraging the resources, expertise, and experience of each of its divisions—Real Estate, Capital, Insurance, Management and Valuation—Franklin Street offers unmatched value and optimal solutions for clients nationwide. For more information on Franklin Street, please visit FranklinSt.com.

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Franklin Street hires Lisa Jesmer as VP of management services

Lisa Jesmer will be responsible for securing new management contracts, and developing client relationships throughout Florida and nationwide.

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