Categories
Uncategorized

Capital Market Trends Hint at Optimism for the CRE Industry in 2017

Despite initial uncertainty, the 2017 real estate market remains bullish.

The U.S. economy grew by 1.6% last year, with the Federal Reserve anticipating growth to hover around 2.1%. While slower than average, the growth was on par with previous bubble years, prompting concern from the Fed about rising CRE prices. Last December, it was announced that interest rates would increase three times to compensate for the recent boom — starting with a 0.25% raise — with a total three-quarter percent increase expected by the end of the year.

Historically, interest rates are still the lowest they have been in years. Following the election, many CRE professionals predicted the end of a 35-year bond bull run and low interest rates after seeing higher import tariffs, higher exports and increased spending on the horizon. Instead, falling yield rates are projected to normalize around 1.75% to 2% by early 2017.

Real estate investment has also remained strong due to the recovering economy. Jake Reid, senior director at Franklin Street’s Real Estate division, said that buyers who locked in rates prior to the election would remain unaffected. Reid also suggested that improvements in property operations — better amenities, more options — have kept deals successful despite higher rates.  

“Construction and new developments will take the biggest hit from the Fed’s increases, as lenders remain hesitant to finance these projects,” Reid said. “A majority of new apartment deliveries are in core-plus locations that are most likely to witness flattening of rents or concessions during absorption.”

While the market has been trending toward stability, CMBS will be the most susceptive to volatility in 2017. The late December 2016 enactment of the the Dodd-Frank Act risk retention rules has contributed to the uncertainty. Requiring lenders to hold on to 5% of the loans they issue rather than selling them as bonds, the act has made lenders more conservative in their underwriting practices. President Donald Trump’s February announcement that he will scale back Dodd-Frank may alter this trend in the coming months.

Among asset classes, the multifamily and industrial sectors will be the biggest competitors for investment capital, despite initial concerns of a slowdown. The third quarter of 2016 saw a 32% year-over-year increase in the dollar volume of loans for industrial properties and a 26% increase for multifamily properties. For office spaces, inventory growth hovered below 1.2% while yearly net absorption is projected to have a small positive change from 38M SF to 43M SF for metro centers. Retail will fare worse, with yearly net absorption predicted to drop from nearly 11M SF to 7M SF, a 36% decrease. E-commerce is a likely culprit, carving a serious dent into physical retail space investment.

The U.S. real estate market remains an appealing safe haven to foreign investors. A recent change to the 1980 Foreign Investment in Real Property Tax Act (FIRPTA) treats foreign investors similarly to those in the U.S., further encouraging cross-border and overseas real estate investment. Real estate’s strength as a global asset stands in contrast to the higher tariffs and reduced imports predicted under the new administration.

Debt and equity funds still remain strong, albeit taking more conservative stances toward riskier asset classes. Facing a changing market, capital market advising has become a necessity for investors. Firms like Franklin Street, which services Southeast markets, leverage real-time information and accurate market statistics to arrange successful debt and equity deals for real estate investments. Franklin Street’s Investment sales team closed over $500M in investment sales in 2016.

To learn more about this Bisnow content partner, click here.

Categories
Uncategorized

Movers: David Fleisher

Senior hires and promotions for the week of February 27, 2017

REAL ESTATE

David Fleisher has been named regional managing partner for Broward and Palm Beach counties at Franklin Street. Previously, he was director of business services for Bluegreen Vacations. Fleisher has a bachelor’s in management from Tulane and a master’s in international business administration from NSU.

 
Categories
Uncategorized

People on the Move: Nicole Willerer

Nicole Willerer
Director of Office Leasing at Franklin Street

EDUCATION:  University of Central Florida (Orlando, FL)

Nicole Willerer joined Franklin Street’s Orlando office as director of office leasing. She will focus on landlord representation in the office sector for clients throughout Central Florida. She also will work with tenants throughout the office market.

Categories
Uncategorized

Franklin Street Targets Restaurant and Boutique Tenants for Upscale Shopping Center in Baldwin Park

A half-dozen new retailers have leased space at Baldwin Park Center Village. Expected openings include: Mezza Mediterranean Grill, March; 9 Round Kickboxing, March; Verte Chiropractic, May; Tutto Cafe, March; Popcorn Kernels Gourmet Popcorn, May; I CE NY Original Smashed and Rolled Ice Cream, May. Franklin Street’s Terrence Hart represented the landlord, a Texas group that operates the center.

Categories
Uncategorized

David Fleisher replaces Matus as regional partner at Franklin Street

Franklin Street, a full-service, commercial real estate firm, hired David Fleisher as regional managing partner for Broward and Palm Beach counties. Fleisher replaces Greg Matus, who was promoted last year to senior vice president of investment sales, a national role within the company. Prior to joining Franklin Street, Fleisher served as director of business services for Bluegreen Vacations and has worked for Marcus & Millichap in South Florida. Fleisher is a certified public accountant in Maryland and a licensed real estate broker in the state of Florida. He earned a bachelor’s degree in Management from Tulane University and holds a master’s degree in International Business Administration from Nova Southeastern University.

“David’s more than two decades experience in commercial real estate, accounting and management will take our business development and talent recruiting efforts to the next level,” said Andrew Wright, CEO and managing partner. “He will oversee all operations and provide strategic guidance for Franklin Street, allowing us to grow the firm’s market share and expand our investment sales, insurance, and tenant and landlord representation services throughout South Florida.”

Categories
Uncategorized

Bridgewater Pointe Apartments On Eber Road In Melbourne Sells For $8 Million

MELBOURNE, FLORIDA – Bridgewater Pointe Apartments, a 100-unit rental garden-style property located at 151 Eber Road in Melbourne, was sold for $8 million.

BridgeWater Pointe is a two-story apartment property that includes 14 buildings with water views and full size washer/dryer units in each unit. Tenants enjoy a convenient location with easy access to Interstate-95 and U.S. 192.

The community also features desirable amenities that include a pool, clubhouse, fitness center, and a business center. BridgeWater Pointe was 96% occupied at closing.

Both the seller and the buyer are private investors. Franklin Street’s Robert Goldfinger and Matthew Kesterson represented both parties in the transaction. Franklin Street’s Lonnie Kitchen provided insurance services and the buyer selected Franklin Street Management to manage the asset.

Built in 1987, BridgeWater Pointe is the second multifamily asset transaction that Franklin Street has completed for the buyer. Franklin Street also represented the same investor in the purchase of the Seastone Luxury Apartments in Tampa’s Temple Terrace submarket for $9.9 million in 2016. Franklin Street was also appointed as the exclusive property manager and insurance services advisor for both properties.

“Working with Franklin Street has allowed our firm to grow its multifamily portfolio exponentially in a short period of time,” said Anthony Triglia, whose private equity firm bought Bridgewater Pointe. “From brokerage to lending, property management, insurance and even due diligence, Franklin Street has positioned itself as a true full service real estate solution for the investor. Franklin Street’s breadth of services and experience has been instrumental in our success and will be a key factor as we continue to acquire new investments in the future.”

“BridgeWater Pointe generated strong interest, and the asset has great upside due to the location, it’s concrete block construction, water views and large two-bedroom/two-bath layouts, along with below market rents,” said Kesterson, Senior Director at Franklin Street. “For their second multifamily purchase in Florida, the buyer was drawn to the property based on its high-demand location near the beaches, the Florida Institute of Technology and Melbourne International Airport.”

 

“This transaction is a great example of Franklin Street’s unique ability to offer a multitude of services—from sourcing capital to providing insurance to managing the property—in one setting for our clients,” said Goldfinger, Managing Director at Franklin Street. “Brevard County is undergoing significant economic growth and BridgeWater Pointe is a prime candidate to add value through modest interior renovations.”

Categories
Uncategorized

Franklin Street Hires Director of Office Leasing in Orlando

Another accomplished commercial real estate professional, Nicole Willerer, has joined Franklin Street’s Orlando office as Director of Office Leasing.  She will focus on landlord representation in the office sector for clients throughout Central Florida.

Prior to joining Franklin Street, Willerer served as an associate for Cousins Properties Incorporated in Atlanta, where her team was responsible for leasing 5.6 million square feet of Class A office space. Earlier in her career, she worked with Parkway Properties, Inc., assisting the leasing team through prospecting, sales calls, proposals and financial analysis.
 
“Nicole will be able to utilize her experience working directly for ownership, bringing to Franklin Street a strong landlord perspective for institutional and local owners,” said Yvonne Baker, Regional Managing Partner of Franklin Street’s Orlando office.  “The Orlando market continues to grow and improve and Nicole’s experience and strong work ethic will be incredibly valuable to our growing team.”

Willerer will also work with tenants throughout the office market to identify their future and current occupancy needs and implement a strategy for clients to align their space needs with their business goals.
 
“I knew that I wanted to join a team with a positive and unique company culture that provided a collaborative work environment and the opportunity to grow,” said Willerer.  “At Franklin Street, I will be able to use my previous experience working directly with owners to grow our office leasing team and I am excited about what we will be able to accomplish.”

Willerer is active in several industry trade groups and was a 2016 NAIOP Future Leader. She served as a member of the NAIOP Georgia chapter and was a member of the Atlanta Commercial Board of Realtors. She earned a Bachelor of Science in Psychology from the University of Central Florida.  She is a licensed Real Estate Sales Associate in the state of Florida.

Franklin Street
opened its Orlando office in May, and in just a short amount of time, it has recruited nearly a dozen professionals. Parallel to its mission to provide clients with as much value as possible, Franklin Street expects to see continued rapid growth for all service lines in the Central Florida market.

Categories
Uncategorized

David Fleisher Joins Franklin Street as Regional Managing Partner for Broward and Palm Beach Counties

Franklin Street, a full-service, vertically integrated commercial real estate firm, hired David Fleisher as regional managing partner for Broward and Palm Beach counties.Fleisher replaces Greg Matus, who was promoted last year to senior vice president of investment sales, a national role within the company. Matus oversaw all three South Florida counties since his arrival in 2014, but Franklin Street’s incredible growth here prompted the company to split up the positions for Broward/Palm Beach and Miami.

“David’s more than two decades experience in commercial real estate, accounting and management will take our business development and talent recruiting efforts to the next level,” said Andrew Wright, CEO and managing partner. “He will oversee all operations and provide strategic guidance for Franklin Street, allowing us to grow the firm’s market share and expand our investment sales, insurance, and tenant and landlord representation services throughout South Florida.”

Prior to Franklin Street, Fleisher served as director of business services for Bluegreen Vacations, one of the largest independent vacation ownership companies in the U.S. There he oversaw the company’s resort client relationships, as well as prepared and presented financial models for acquisitions and new client development in the U.S. and Caribbean. During his tenure, he managed client relationships whose sales have accounted for more than $1.2 billion in vacation ownership sales since 2009.

In addition, Fleisher co-founded LOB Companies, specializing in the acquisition, management and disposition of value-add multifamily apartment properties across Florida. Previously, he worked for Marcus & Millichap in South Florida where he focused on multifamily investment sales.He has completed acquisitions and dispositions of real estate and companies valued at more than $350 million.

“This opportunity at Franklin Street was something I just couldn’t pass up,” said Fleisher. “I love their entrepreneurial spirit and how they collaborate on various business lines like investment sales, leasing, management, insurance, valuation and capital markets.I feel like I’m on the ground floor of something really special and I look forward to the challenge of growing the brand in this very important corner of South Florida.”

Fleisher, who lives in Boynton Beach, plans on beefing up existing business lines and adding others.

“We want to continue building out our strong retail and multifamily platforms in Broward and introduce both of these lines immediately in Palm Beach,” said Fleisher. “Down the road, our plan is to add office and industrial capabilities in both counties. We will be looking to recruit the best professionals in each of these categories to make this happen.”

Fleisher is a certified public accountant in Maryland and a licensed real estate broker in the state of Florida. He earned a bachelor’s degree in Management from Tulane University and a master’s degree in International Business Administration from Nova Southeastern University.

He is also engaged in the community, through his support and sponsorship of groups such as Deliver the Dream and JDRF.

Franklin Street is actively recruiting a Regional Managing Partner to lead our team in Miami-Dade County. For more information, please visit www.franklinst.com/careers.

About Franklin Street:
Celebrating more than 10 years in the business, Franklin Street is a family of full-service commercial real estate companies focused on delivering value-add 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. Learn more about Franklin Street at FranklinSt.com.

Categories
Uncategorized

Franklin Street handles sale of two Westside complexes

Franklin Street brokered the sale of a Westside apartment community for $3.6 million.

Brokers Jim Reed and Matt Kesterson handled the transaction.

The sale included the Virginian Arms Apartments, 2501 Jammes Road, and Arbor Oaks Apartments, 2535 Jammes Road, sold as a portfolio.

The buyer is N M Baron Las Villas LLC of Sunny Isles Beach, which has owned multifamily properties in Tampa and South Florida, according to a news release.

It’s the company’s first purchase in Jacksonvile.

Virginian Arms has 60 units, while Arbor Oaks has 56.

“The Westside continues to attract attention for its investment assets,” said Kesterson, senior director of multifamily investment sales for Franklin Street, in the release. “This submarket continues to thrive with below average rental rates, above average occupancies and an expanding workforce serving employers in both downtown and at the growing Cecil Commerce Center.”

Categories
Uncategorized

Franklin Street recruits executive from Bluegreen to lead Broward/Palm Beach

Commercial real estate brokerage Franklin Street hired David Fleisher, formerly an executive at Bluegreen Corp., as regional managing partner in charge of Broward and Palm Beach counties.

Fleisher has taken over for Greg Matus, who Franklin Street promoted to senior VP of investment sales on a nation-wide basis. The brokerage is still seeking a regional managing partner for Miami-Dade County.

Fleisher was previously director of business services at timeshare developer Bluegreen Vacations. He oversaw more than $1.2 billion in vacation ownership sales at Bluegreen since 2009. Previously, he co-founded multifamily investment and management firm LOB Cos. and worked for Marcus & Millichap in South Florida.

“David’s more than two decades experience in commercial real estate, accounting and management will take our business development and talent recruiting efforts to the next level,” said Andrew Wright, CEO and managing partner of Franklin Street.

With offices in Plantation and Miami, Franklin Street has 31 employees, including 14 commercial and insurance brokers. It entered the South Florida market in 2009. The brokerage posted leasing revenue of $4.8 million and investment sales of $20.4 million in 2016.

“This opportunity at Franklin Street was something I just couldn’t pass up,” said Fleisher. “I love their entrepreneurial spirit and how they collaborate on various business lines like investment sales, leasing, management, insurance, valuation and capital markets. I feel like I’m on the ground floor of something really special.”

Fleisher said he plans to introduce Franklin Street’s platforms for retail and multifamily to Palm Beach and then add office and industrial capabilities for both counties. Franklin Street plans to recruit professionals in those areas, he added.