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University Of Florida Shows Confidence In This Firm

ORLANDO—The University of Florida (UF) just picked Franklin Street to handle strategic leasing assignments. That makes Franklin one of only two approved vendors in the state.

As one of the largest educational institutions in Florida, UF currently leases more than 350,000 square feet of commercial real estate in Gainesville, South Florida, Orlando, Jacksonville, and the Florida panhandle. Franklin will represent the university as a tenant. As UF expands, it seeks new leases and, of course, renewals.

Clay Wommack, Franklin Street’s director of office and industrial agency leasing, will lead this new account. GlobeSt.com asked him about the state of the market around UF.

“The Gainesville market is very healthy at approximately 94% occupied with trending rental asking rates on the upward side,” Wommack tells GlobeSt.com. “The University of Florida is one of the largest tenant’s in the Gainesville market, having more than 165,000 square feet of product they lease outside of the university campus. Many of the locations UF leases are connected with their health care programs and the university’s medical school.”

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Commercial Real Estate Owners Need to Consider Investing in Cyber Insurance

Almost daily the media is reporting on another data/security breach, and today’s cyber criminals are becoming increasingly sophisticated while the technology needed to combat them lags behind.

To date, more than $75.5 million has been spent on cyber claims losses, according to the most recent Cyber Claims Study published by NetDiligence, a cyber risk assessment and data breach services company. The study noted personally identifiable information was the most frequently exposed data at 94 percent, followed by payment card information at 27 percent.

Analysts predict that cyber risk protection will be the top growing type of insurance for commercial real estate owners and operators. Without coverage, any business using a point of sale (POS) system or that stores data is at risk, especially those that store consumer data that can be used for criminal gain such as credit card information. This puts property mangers of retail and apartment properties and retail tenants in a direct line of vulnerability for cyber criminals.

Cyber criminals seek out information like rental applications, credit reports, leases and rental agreements, which contain personal information of applicants and tenants. Companies are required to dispose of these materials under the Fair and Accurate Credit Transactions Act federal law enacted in 2003, which includes information held on hard drives or personal data systems. Companies can protect themselves by purchasing software that automatically clears a hard drive and won’t allow for information to be restored.

By investing in cyber insurance, companies cover themselves from potential lawsuits stemming from stolen information and the costs. For example, when Target’s data breach occurred, account details of more than 40 million credit and debit cards were exposed. The data breach has cost the big box retailer more than $250 million, as Target only had $100 million in coverage, leaving the company very exposed. The biggest issue is that it’s now very traceable to figure out where the information was stolen from, so companies that use a POS system don’t have plausible deniability and will be held liable.

Most real estate companies don’t have the financial means to survive a data/security breach and should discuss with their insurance advisor what kind of coverage makes sense, which can vary depending on their business and level of exposure.

Michael Shadeed is a Director for Franklin Street’s Insurance Services division. Based out of the company’s Atlanta office, Shadeed specializes in all product types within the real estate industry including apartments, office, industrial, retail and hotels.

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Franklin Street hires Retail Investment Associate

Brandon Sciotti
Date Added: April 27, 2016
Submission Type: New Hire
Current Employer: Franklin Street
Current Title/Position: Investment Associate
Industry: Commercial Real Estate
Duties/Responsibilities: Brandon Sciotti focuses on the disposition and acquisition of retail properties across South Florida.

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Franklin Street hires Insurance Account Manager

Pamela Greene
Date Added: April 27, 2016
Submission Type: New Hire
Current Employer: Franklin Street
Current Title/Position: Account Manager, Commercial Insurance
Industry: Insurance
Duties/Responsibilities: Pamela Greene supports Franklin Street Insurance Services by managing, retaining, and growing their book of business. She also serves as a high-level customer service representative, handling daily service for clients throughout the U.S.

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Tuskawilla Park in Winter Springs, Florida, Sells for $6.95 Million

Franklin Street announces the sale of the 41-unit Tuskawilla Park Apartments, located in Winter Springs, Florida, for $6.95 million. The sales price represents $169,512 per unit.

Darron Kattan, Kevin Kelleher, Zachary Ames and Robert Goldfinger of Franklin Street Real Estate Services represented the seller, California-based Pathfinder Landology ISIS Holdings LLC, and the buyer, Virginia-based CIG Tuskawilla Park LLC, in the transaction.

“Tuskawilla’s unique size for a Class A community attracted the buyer to the property, which is well positioned to enjoy significant rent growth through market conditions and initiatives the buyer will implement,” Kattan said. “Nearby new construction will make the area even more vibrant and desirable.”

Tuskawilla Park, located at 154 Tuskawilla Road, is a conventional mid-rise, elevator-serviced apartment community originally built in 2009 as luxury condominiums before being converted to a rental property. In addition to an attractive unit mix and a number of best-in-class luxury finishes, the Class A apartment community also includes 6,377 square feet of ground-floor commercial space which is fully leased by two local engineering firms and the Florida Department of Motor Vehicles.

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, and Management—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 Brokers $7M Sale of Apartment Community in Central Florida

WINTER SPRINGS, FLA. — Franklin Street has arranged the $7 million sale of Tuskawilla Park Apartments, a 41-unit apartment complex located at 154 Tuskawilla Road in Winter Springs, roughly 15 miles north of Orlando. Originally built as a condominium development in 2009, the apartment complex features elevators and 6,377 square feet of ground-floor commercial space that is fully leased by two local engineering firms and the Florida Department of Motor Vehicles. Darron Kattan, Kevin Kelleher, Zachary Ames and Robert Goldfinger of Franklin Street represented the seller, California-based Pathfinder Landology ISIS Holdings LLC, and the buyer, Virginia-based CIG Tuskawilla Park LLC, in the transaction.

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Leases: TRAK Microwave

Tampa Bay
– TRAK Microwave leased 117,000 square feet of space at 4726 Eisenhower Blvd., Tampa from The Chew Family Trust LLC. Clay Wommack of Franklin Street handled the transaction.

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Franklin Street hires Lisa Ferrazza and Brandon Sciotti to South Florida office

Franklin Street hired Lisa Ferrazza as a senior director where she will specialize in retail landlord representation and leasing. Ferrazza will oversee the leasing and management of client properties throughout South Florida. She was previously a vice president with CBRE’s Boca Raton office. Her former clients include TIA-CREF, Invesco and UBS. Franklin Street also added Brandon Sciotti as a retail investment associate in the South Florida office. A former senior financial analyst with Marcus & Millichap, Sciotti focuses on buying and selling retail properties.

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Franklin Street Arranges $2.25 Million Sale of Mill Shoppes of Winder

Franklin Street has arranged the $2.25 million sale of Mill Shoppes of Winder, a 19,019-square-foot two-building retail development located at 105 and 111 East May St. in Winder, Georgia. John Tennant and Bryan Belk of Franklin Street’s Atlanta office represented the seller, Alpha Opportunity Fund I, LLC, in the transaction. An Atlanta-based private investor purchased the property.

“The lack of new product available for purchase is turning investors toward smaller markets like Winder in search of yield,” Tennant said. “The buyer pool for this particular type of asset is finite, but Franklin Street was able to use its extensive database coupled with targeted local canvassing to source multiple local buyers.”

Mill Shoppes of Winder is strategically positioned along the main commercial-retail corridor for Winder, with good frontage and excellent visibility along East May Street. The buildings were constructed in 1970 and renovated in 2006. Current tenants include Subway, Titlemax of Georgia and Little Caesars.

The buyer plans to hold the property for long-term cash flow, and there is potential to lease up available space as the property is currently 79 percent leased.

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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Being David

When commercial real estate brokerages DTZ and Cushman & Wakefield paired up last summer, officials from both firms — as well as their competition — touted the idea that consolidation provided a platform to better compete in today’s environment.

But in the wake of that $2 billion merger aimed at competing better against rival giants CBRE and JLL, further consolidation in the industry not only hasn’t occurred along the Gulf Coast, but mid-sized brokerage firms here have held fast to their independence.

Moreover, companies like Newmark Grubb Knight Frank, Avison-Young, Franklin Street, Colliers International and Sperry Van Ness maintain that their size provides them with a tactical advantage when it comes to focusing on clients and serving their needs.

“Clients generally have one commonality,” says Pike Rowley, managing director of Florida operations for Avison Young, a Canadian-based commercial brokerage that maintains seven offices with 65 agents in the state.

“They want to know if they’re going to be a priority. We’ve been very deliberate and strategic about our current and intended size,” he adds. “We’re not striving to be CBRE or JLL. 

We’re a mid-sized firm, but we pride ourselves on having a sophistication level that’s as good as anyone.”

Franklin Street and Newmark Grubb, meanwhile, says they’ve differentiated themselves by going after unique lines of business, such as property insurance, and by incentivizing agents to be more entrepreneurial while also being client-centric.

“We’re not focused on getting transactions done,” says Franklin Street Real Estate and Management Services President Kurt Keaton. “We’re in this to solve whatever problem you as a client might have.”

To do that, Franklin Street holds weekly training sessions with its agents to keep them up on technology, the latest business trends and to hone their real estate skills. 

The largest firms, too, smaller brokerages say, can be weighed down by bureaucracy and by a focus that is almost exclusively on multinational companies and Fortune 500 firms.

The combined Cushman & Wakefield, for instance, is expected to generate about $5 billion annually in revenue this year, while managing more than 4 billion square feet of commercial space. In Tampa, the firm has 50 real estate agents and 120 professionals.

Officials there and at JLL and CBRE, however, contend that rather than being a liability, their larger size allows them to better integrate a variety of services on a larger platform.

In some cases, the very structure of some mid-sized brokerage firms has been altered from a traditional model to attract and retain talent, which they say is key to success in today’s environment.

Newmark Grubb and Avison Young, for instance, both provide agents with the ability to own stock in their respective privately held companies.

“We’re all moving in the same direction,” says Newmark Grubb Senior Managing Director Rick Narkiewicz. “We’ve adopted a player/coach model here and eliminated layers of management. For us, it all boils down to the culture we’re developing here and our people.”

To demonstrate how its model is working, Narkiewicz says last year Newmark Grubb’s nine Tampa-based agents generated transactional volume of $553 million.

Likewise, agent collaboration, an entrepreneurial mindset and technological have set Colliers International Tampa Bay, Central Florida and Southwest Florida apart, says president Ryan Kratz.

“The business has changed a lot in the past five years. There’s so much data to be had now, and it’s everywhere, so what we’ve focused on is the humanization of the business. To succeed now, talent and resources combined is what it takes.”

Not that Colliers International, which is part of a global network of more than 500 offices in 67 countries, hasn’t also focused on technological prowess. Kratz says agents there have married local knowledge with that of emerging, worldwide trends in business and real estate to effectively differentiate the firm.

And while the regional affiliate was sold to Colliers International’s corporate parent in January, the Gulf Coast firm remains autonomous — independence that allows it to make swifter decisions for clients.

“Bigger companies tend to chase bigger deals, but that means there’s still a lot of business to be done by mid-sized firms in mid-sized markets,” says Ray Sandelli, a former top CBRE executive for Florida who is now managing director of CRE Consultants, a firm that maintains offices in Fort Myers and Naples.

Avison Young’s Rowley takes that idea a step further.

“A lot of consolidation in the (real estate) services industry today is happening purely as a return on investment driver for passive investors,” he says. “We started with an architecture that’s the exact opposite of that. Ours is a totally different mindset.

“The larger firms tend to generate business differently. Our agents generate on the ground, whereas the larger companies have business development officers who generate business and then hand it off to agents. We eliminated all those middlemen. Our agents have a direct role with the client, and we think that makes them a little more accountable.”

Rowley says, too, that that structure is also more lucrative for the agents in its 75 offices.

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