Hartman Simons Commercial Real Estate Blog

Four on Friday: Peter Hartman

This weekend marks the start of the retail real estate sector’s premier event: the International Council of Shopping Centers’ (ICSC) annual RECon trade show and conference in Las Vegas. Lots of our attorneys will be traveling to the show, and we’re especially looking forward to our party this Sunday night, May 20, at the House of Blues at the Mandalay Bay Hotel. Keep your eyes peeled for party photos and coverage of the show in the days ahead.

Before he headed out West, we got a chance to talk with our own Peter Hartman, who has worked in retail real estate for years and represents shopping center developers and both tenants and landlords in leases, to get his expert take on where the sector currently stands.

HS: How would you characterize the performance of the sector so far this year and what does the rest of 2012 hold?

Hartman: Overall, retail real estate is certainly healthier and moving in the right direction. There have been fits and starts but overall the entire sector from our perspective is greatly improved.

HS: How is that improved health reflected in the firm’s retail real estate activity?

Hartman: The amount of leasing activity we’re involved in is 10 times greater than what it was a year ago. Of course, it’s all relative. It’s not close to where it was in 2006 or ’07.

The return of some big retailers like Target to new developments and the growth of discount retailers like Dollar General are two of the trends behind the increased leasing and development activity we’re seeing.

HS: How aggressive are developers in pursuing new projects and what kinds of projects are they most interested in?

Hartman: I would say developers are being selectively aggressive in pursuing new projects. The fact that financing has become somewhat easier to obtain plays a key role in the increased development activity.

They are definitely interested in mixed-use projects.  Everybody’s big on having a multifamily component, or at least being near multifamily. One great example of this trend is a project we’re involved with: Avalon, a $600 million, mixed-use project in Alpharetta. We’re representing the developer North American Properties during the development, leasing and construction of the project.

HS: What kind of stores are doing well in today’s market?

Hartman: Discount stores like dollar stores are doing really well. Higher-end, luxury stores like Nordstrom’s are performing well too. It seems to be that mid-level retailers are not doing as well.

Four on Friday: Amanda Buckley, Hartman Simons Attorney

This Friday morning, we’re taking some time to get to better know one of our own attorneys. Amanda Buckley successfully juggles the challenges of a successful legal career with the challenges of raising her four-year-old daughter Emma. We recently got a chance to talk with Amanda about how she maintains that balancing act – and about how she likes to unwind when she has a rare moment for herself.

First off, give our readers a quick overview of your practice areas.

Buckley: I advise clients on the selection, formation and management of business entities, including corporations, limited liability companies and partnerships, and I counsel companies on various matters including corporate governance, mergers and acquisitions, joint ventures, restructuring, federal and state securities laws, and employment agreements.

What is the biggest challenge of juggling motherhood and your legal career?

Buckley: The biggest challenge for me is feeling as though I should be at work when I'm with my daughter and feeling as though I should be with my daughter when I'm at work.

What's the best piece of advice you have for working moms of young children?

Buckley: Don't try to be Superwoman and do it all.  Accept help from others.

When you're not practicing law or busy being a mom, how do you like to relax?

Buckley: Working out, traveling, reading and sleeping!

Four on Friday: Coy Davidson of Colliers International in Houston, Part One

You would be hard pressed to find a commercial real estate figure with a bigger online presence than Coy Davidson, an office broker and senior vice president of Colliers International’s Houston office. He authors a popular blog, The Tenant Advisor, in which he examines current trends in the industry, and he is a passionate advocate of social media. His information-chocked Twitter feed has earned a whopping 10,500 followers.

We recently got a chance to talk about a wide range of commercial real estate issues with Davidson. In this first installment of a two-part Four on Friday, he discusses the industry’s reluctance to embrace social media and the benefits the various mediums offer the industry.

To what extent has commercial real estate embraced social media?

In my opinion, commercial real estate has been very slow to adopt social media in comparison to other industries. While many commercial real estate professionals are starting to experiment with the medium, it is still very far from mainstream.

The number of commercial real estate professionals I’ve seen on social media networks has increased pretty dramatically over the last two years and when you’re on those channels regularly, it might appear that there’s more widespread adoption than there really is. But there are 50 brokers here in my office, and not many have adopted these tools.

The vast majority of the industry has not embraced these tools, and I think there are a couple of reasons. For one, it tends to be a more conservative, b-to-b industry like the law sector and financial services. Two, there’s still quite a bit of skepticism about social media’s effectiveness.

How fundamental a part of the industry’s future do you see social media being?

The day will come – I don’t know if it’s going to be two years from now or five years from now – but it’s obvious to me that it will become a fundamental part. I’ve been in the business long enough to remember when the desktop computer wasn’t a fundamental part of the business. People said, “You can’t make any money sitting at your desk typing on a computer.”

I can also remember when the cell phone wasn’t a fundamental part of our business. People would say, “Why would I want to have a client call me at home?”

I think social media will be no different. It’s a daily part of American culture now, and it’s only going to increase. It’s just a matter of time before it weaves itself into the business community and corporate America.

How would you describe the benefits of the main social media networks – Facebook, Twitter, LinkedIn – for commercial real estate professionals?

That’s a broad question. Generally speaking, for brokers such as myself, the real value of social media is the chance to build credibility and visibility by providing valuable information. But most commercial real estate people don’t understand that. There’s a tendency to want to sell instead. They have not been educated in the basics of content marketing. Social media is a starting point, a place to initiate new contacts and then move the conversation offline.

Is there any one network that is best suited for commercial real estate figures?

I get that question a lot. The short answer is, I don’t think there’s one that’s better than the others. It’s whatever tool gives you the best access to your target market.

Our industry tends to gravitate to LinkedIn because it’s solely a business social network and is therefore the safe choice. People aren’t going to roll their eyes when you have a LinkedIn account, while they might if you say you’re using Facebook for business.

But I go against the grain a little bit: I believe in a multi-channel platform. Based on my two and a half years of using them all extensively, I think they all have their advantages and disadvantages.

The most important thing to keep under consideration is your target audience. You’re going to access different people with each of the networks, so whichever one of those platforms is giving you the most engagement with your target audience is probably the best one for you. I have found Twitter to be the best tool for accessing people that I didn’t know and Facebook to be the most engaging platform, where as LinkedIn has been a better tool to interact with people I already kind of knew.

On a personal level, I’m a little frustrated with the CRE community on Twitter right now. As all the brokers are showing up with the ingrained push mentality that is pervasive in the industry. The “we’re so awesome” tweets don’t resonate. They don’t recognize that their clients probably don’t want to read that stuff or about commercial real estate 100 percent of the time. My philosophy is that credibility with clients and prospects is more important than credibility from your peers.

Four on Friday: Jesse Tron of the International Council of Shopping Centers

Believe it or not, May is just around the corner. That means it’s almost time for one of the commercial real estate industry’s most important annual events: the International Council of Shopping Centers’ (ICSC) RECon convention in Las Vegas.

We recently got a chance to speak with Jesse Tron, a senior communications and media specialist with ICSC, about what awaits the retail industry at this year’s show.

HS: What are some of the notable changes to RECon planned for this year?

Tron: While a show of this magnitude will always have some variable components each year, we are pleased to announce, for 2012, what is truly a major new feature at RECon: the Marketplace Mall. The Marketplace Mall will be the new, exclusive home for product and service providers at RECon, all on one show floor. With more than 300 exhibiting companies, a Product Demo Theatre, the Social Media and Technology Pavilion, a cash-and-carry café, the only free Wi-Fi on any of the show floors and on-site registration, the Marketplace Mall will be a destination unto itself.

The other major new feature is the Cities of the World Pavilion. Located on the Leasing Mall floor, the pavilion will afford attendees the opportunity to visit with economic development officials from more than 60 cities and counties to discuss new or existing opportunities in their communities. 

HS: There is a lot going on in the retail industry these days. What are some of the key issues and trends addressed by the show's educational sessions?

Tron: One of the major concepts at play right now is the globalization of retail and the impact of that on the industry. There has been a concerted effort by retailers and retail property developers to maximize profits by taking advantage of untapped markets. So while asset management is what’s on the agenda for mature markets, there are still significant growth opportunities for retailers and landlords in emerging ones. A session on Tuesday morning at RECon will discuss this topic and introduce the ICSC World Summit, a conference held every five years to consider the role the industry plays in our economies and societies and how best to shape the industry’s future. The World Summit, this year focusing on the globalization of retail, will be held in Shanghai from Sept. 11-14.

HS: Tell us about the show's lineup of keynote speakers. Which one are you most excited about hearing?

Tron: We have an incredible lineup this year overall, but I am particularly excited about Malcolm Gladwell and Leslie Wexner. Gladwell, bestselling author of “What the Dog Saw," “Outliers,” “Blink,” and “The Tipping Point,” will take a look at new concepts in the social sciences and show how they can be practical and applicable in the business arena. He will speak at the opening session on Sunday, May 20, at 1 p.m.

Leslie Wexner, founder of Limited Brands, will be the keynote speaker on Tuesday, May 22, at 12:30 p.m. He founded Limited Brands in 1963 with a single store and has since then built the brand into a $10 billion segment leader. Wexner last spoke at RECon 25 years ago, so it will be interesting to hear the changes he has noticed within the industry over that period as well as what his expectations are for the future.

HS: How many attendees and exhibitors are you expecting this year and how do those numbers compare to 2011?

Tron: We are once again expecting about 1,000 exhibitors, and the show will encompass more than 1 million square feet of space in the Las Vegas Convention Center. Attendance in 2011 was just more than 30,000. We are currently running ahead of last year at this time, so we anticipate that attendance will end up slightly higher than last year, perhaps just north of 31,000.

(To download the 2012 RECon program, visit the show's website.)

Four on Friday: Hartman Simons Lends Helping Hand to Atlanta Humane Society

With the commercial real estate sector showing increased activity, this promises to be a busy spring at Hartman Simons. Nevertheless, we’re still taking some time out of our hectic schedules to help our four-legged friends.

Throughout the month of April, we will be working to raise money and supplies for an organization near and dear to our hearts: the Atlanta Humane Society (AHS). Below are four components of this month-long effort.

• Sponsorship of the Upcoming AHS Pet Parade. Hartman Simons has contributed a $1,000 sponsorship of the parade, which will be held at 11 a.m. on Saturday, April 21, at Atlantic Station.

The route for the parade is just over a mile long and winds through Atlantic Station. Walkers are welcome to bring their dogs, as long as the animals are on a leash and are up to date on their vaccinations.

Events surrounding the parade, which will be held rain or shine, will include an adopt-a-thon and various pet contests.

• Participating in the Parade. Hartman Simons attorneys and staff will be walking in the parade and are encouraging their friends, family and clients to do so as well as a member of the firm’s team. Registration is $30 in advance and $35 on the day of the event.

Each team member will receive an online fundraising page where friends and family members can support their participation by making a donation. The event web site will track how much money Hartman Simons and the other teams raise for AHS. Donations can be made online (which includes a small processing fee) or by check.

For more registration information, visit the parade’s website. To view Hartman Simons’ overall fundraising page and those of its individual team members, click here.

• Donating Supplies. The firm also will be collecting items needed by AHS. Requested supplies include bleach, non-clumping cat litter, dog bowls, laundry detergent, pet shampoo, towels, paper towels, copy paper and housetraining pads. For AHS’ complete wish list, click here.

• Jeans Days. Throughout the month, Hartman Simons attorneys and staff can wear jeans to work on Wednesdays if they bring $5 or a supply on the AHS’ wish list. The money will support the $1,000 sponsorship, with the firm contributing the rest.

Four on Friday: 2012 Final Four Predictions

This weekend brings college basketball’s premier event: the NCAA Final Four. This year, the Kentucky Wildcats, Louisville Cardinals, Kansas Jayhawks and Ohio State Buckeyes will gather in New Orleans to battle it out for the national championship.

To commemorate the festivities and help you prepare for the games, we turned to four of our resident basketball experts to get their predictions on who will prevail in Saturday’s national semifinal contests and Monday’s championship game.

Enough of the introduction – let’s get to the prognostications and commentary, shall we? And by the way, after reading the analysis below, don't be afraid to chime in with your own thoughts in the comments thread.

Will Lovell

Semifinals

• Kentucky over Louisville: 80-70. Rick Pitino is no match for the NBA players at Kentucky

• OSU over Kansas: 70-68. Sullinger dominates Mr. Robinson

Championship game

• Kentucky over OSU: 75-68 - Kentucky is clearly the better team. OSU loses another national championship game.

(editor's note: this guy has a good track record of picking big games.)

Jeremy Cohen:

Will neglected to mention that if either Ohio State or Kansas win the whole shebang, he wins the firm pool and lots of bragging rights for the next year. If Louisville wins it all, then I win the pool and will make folks around here miserable for the foreseeable future.

As such, I will continue to ride the Big East champs all the way to the Winner’s Circle. 

Semifinals

• Louisville 73, Kentucky 71

• Kansas 70, OSU 62

Championship game

• Louisville 74, Kansas 69

Charles (Buzz) Wood:

Semifinals

• Kentucky over Louisville: 84-75. Another rivalry game for the Cats during the Tournament. First Indiana goes down, the next is Louisville.

• OSU over Kansas: 69 – 60. After Danny Manning left for the head coaching job at Tulsa, the spark from courtside is gone.

Championship game

• Kentucky over OSU: 85- 70. It’s been a long time coming for the Cats.

Ryan Rivera:

Semifinals

• Kentucky over Louisville: 81-67. With a roster loaded with talent and a coach that is on a quest for his first national championship, I see Kentucky running away with this one on Saturday night.

• Ohio State over Kansas: 75-72. You can’t help but pull for Thomas Robinson with all he’s dealt with on a personal level over the past 18 months, but the bruisers from the Big Ten will be too much for the Jayhawks.

Championship game

• Ohio State over Kentucky: 82-77. As a Big Ten alum living in SEC Country, I have no choice but to pick the Big Ten over the SEC.

RELATED POSTS:

• Five on Friday: Super Bowl Predictions

Four on Friday: Bisnow Atlanta Retail Summit

Several of Atlanta’s leading retail lights gathered in Buckhead Thursday for a wide-ranging panel discussion on how the commercial real estate sector is performing. And Hartman Simons played a crucial role in bringing them together and guiding the ensuing talk.

The 2nd Annual Atlanta Retail Summit, which Hartman Simons co-sponsored with ASD, was held bright and early at The Ritz-Carlton. For the second year in a row, firm partner Bob Simons moderated the panel discussion.

The panelists included Mike Cohn, executive vice president of Cousins Properties; Andre Koleszar, regional officer of Regency Centers; Kate Peterson, senior real estate manager for Home Depot; Mike Puline, vice president and director of Southeast leasing for DLC Management; Pat Senn, the Georgia real estate manager for Family Dollar Stores; and Rebecca Water, vice president of leasing for EDENS.

Below are four summaries of the many interesting topics/points touched on in the 90-minute discussion.

• Family Dollar Is Going Great Guns. Senn rattled off some figures buttressing the oft-heard observation that discount retail is thriving. Family Dollar will open 500 new stores during its current fiscal year and could open another 600 in its next one. The retailer also remodeled more than 950 stores last year and will complete another 1,000 remodels this year.

“Did you say there was a recession going on?” Senn joked at one point, adding later, “I apologize. My phone rang because we just had two more stores open up.”

• This Isn’t Your Father’s Retail Sector. Several times, the discussion returned to the tremendous impact technology has had on the segment, as brick-and-mortar tenants cope with growing online sales and wade into the social media pool.

Home Depot is now seeking to court the online shopper by offering a service through which someone can purchase an item through the company’s website and pick it up in a store one hour later, Peterson said. DLC Management aids tenants’ social-media efforts by managing their Twitter and Facebook accounts and providing them with display stickers that ask shoppers to follow the tenants on those sites, Puline added.

Tenants shouldn’t look at online sales and social media as a threat, but should instead seek “a symbiotic relationship” with the online universe, Koleszar said. 

• Making Concessions. Panelists said the extent to which landlords are making concessions in leases varies from market to market. In suburban areas, leverage tends to tilt toward tenants, Cohn said.

“We are seeing lots of competitors offering concessions that I’ve never seen: six months, a year’s worth of free rent,” Puline added.

Meanwhile, “we’ve experienced a considerable uptick in tenants exercising options instead of renegotiating,” Koleszar said. “That points to pricing power.”

• Support for SPLOST. Cohn closed the session by urging attendees to vote this summer in support of the 1 percent transportation sales tax (known as TSPLOST). The tax would fund metro Atlanta transportation projects aimed at reducing traffic congestion and improving air quality.

The area is losing jobs to other cities because of its traffic woes, Cohn said. His urging seemed to go over well. The tax has broad support within the metro Atlanta business community.

(Above photo: Hartman Simons partner Bob Simons, right, and Regency Centers' Andre Koleszar just before Thursday's panel discussion got underway.)

RELATED POSTS:

• Four on Friday: Kate Peterson of Home Depot

• Four on Friday: Eitan Ovadia

• Four on Friday: Lori Kilberg Addresses the Georgia Society of Certified Public Accountants

Four on Friday: Helping Westlake High School

On Monday, attorneys from Hartman Simons joined other members of Atlanta’s legal community to help juniors and seniors at Westlake High School prepare college and scholarship applications. The event was organized by the Atlanta Association of Legal Administrators (AALA) and gave volunteers a chance to work one-on-one with the students. The evening also included an informational session for parents on the transition from high school to college.

At Hartman Simons, we always find it rewarding to give back to our community, but this event has a special place in our hearts, as Westlake’s principal is Grant Rivera, brother of our attorney Ryan Rivera. Furthermore, Rachelle Jones, our office administrator, is the chair of community relations for AALA and was one of the main organizers of the evening.

To document this special evening, we present four numbers related to the event.

53 – The total number of volunteers who participated in the evening. The volunteers came from 17 law firms as well as business partners of AALA.

15 – The number of volunteers from Hartman Simons, including family members of employees, who were present. Attendees from the firm included Mark Florak, Diane Haeger, Jones, Will Lovell, Eitan Ovadia, DeLoris Person, Sharon Poland, Rivera and Benno Rothschild.

The firm and Subway donated food for the event.

75 – The number of Westlake students who received valuable help with their applications.

250 – The dollar amount of several scholarships awarded during the evening. Hartman Simons awarded a $250 scholarship to offset the cost of books, and Westlake gave away a couple of $250 scholarships for the same purpose, as well as six ACT and SAT preparation books. Also, Syracuse University pledged to provide two $250 scholarships to the first two Westlake seniors that are accepted to the school.

All in all, it was a very special evening. “I’m not sure who was more excited about this event – the students, the parents or the volunteers!” Jones said.

Four on Friday: Kate Peterson of Home Depot

As a senior real estate manager for Atlanta-based Home Depot, Kate Peterson has some very important responsibilities. She oversees the site selection, planning and development, asset management and disposition of all Home Depot real estate in seven Southern states. We recently got a chance to speak with Kate about her career, and she filled us in on some new Home Depot initiatives – as well as which band she thinks her grandchildren won’t tease her for liking.

 

HS: You've been a real estate manager for Home Depot since 2006 and before that you were with North American Properties. What drew you to the world of commercial real estate and what makes it exciting for you?

Peterson: The opportunity to create something real drew me in a long time ago. I grew up in the real estate business. My father is a developer in southwest Florida, and I spent a lot of time with him doing everything from answering phones to walking construction sites and attending public hearings.

One of my dad’s first big centers, The Landings, was in our neighborhood - across from my elementary school - and I witnessed the process from conceptual plans until it became a living, breathing part of our community and local economy. Each day, we all have an amazing opportunity to touch something real and have a positive impact on a community’s landscape.

HS: With Home Depot having slowed its expansion in recent years, what kinds of projects and initiatives are you working on these days? 

Peterson: First, let me say that the Home Depot is an incredible company to be a part of. We have more than 2,200 stores across the world, and are we constantly refining and challenging all aspects of our business to create the best environment for our customers while returning the highest value to our shareholders.

Our real estate portfolio makes up one of the company’s largest assets, and our department strives to create additional value anywhere we can. One of the best examples of this is our carve-out program. We are strategically identifying and selling unused portions of our parking fields for other retail uses, which results in synergies for our customers and dollars to our bottom line. We are still continuing to expand our retail presence also. One of the most exciting things I am working on right now is a brand called Home Decorator’s Collection, which is owned by Home Depot. We opened a new showroom for this furniture and décor concept in Alpharetta last summer, and over time we will continue to look for more opportunities to expand that business.

HS: What’s the most valuable bit of advice that you’ve received about succeeding in commercial real estate?

Peterson: It is a really small world; treat all people with respect. It’s as simple as that.

HS: If you could listen to one only musician/group for the rest of your life, who would it be?

Peterson: This is a really tough question. I like all kinds of music, from classic rock to pop and opera (yes, opera). From an intellectual position though, I believe that the band Coldplay has a unique mix of passion and talent, and they seem pretty stable and grounded. I think that their music will continue to evolve and that my grandkids would not make fun of me for listening to it.

Four on Friday: Lori Kilberg Addresses the Georgia Society of Certified Public Accountants

The commercial real estate sector is in the midst of a halting recovery, and women are making halting advancements in the commercial real estate industry. Those were the themes of Hartman Simons partner Lori E. Kilberg’s remarks to the Georgia Society of Certified Public Accountants earlier this week. Below are four of the interesting points she made in her presentation.

• Not Reaching the Top. While women are making strides in the commercial real estate industry, they are not consistently being promoted to what Kilberg referred to as the “C Suite,” meaning executive positions such as CEO, CFO and COO. “That’s one of the real problems,” said Kilberg, who is the immediate past president of the Atlanta chapter of CREW Network, a national organization dedicated to the advancement of women in commercial real estate. She also is currently on the organization’s Board of Directors.

“We’re getting stuck at the level below [the C Suite],” she said. “It’s hard to understand how slowly things have changed.”

• The Persistent Wage Gap. While the gap between what women in commercial real estate make and what their male colleagues make is narrowing, it’s still there, Kilberg reported.

According to a 2010 CREW study, women aged 35 and older in commercial real estate make about 75 percent as much as their male counterparts. The news is slightly better for younger women: those between the ages of 25 and 34 make roughly 89 percent as much as their male colleagues.

• Slowly Getting Better. Citing several commercial real estate forecasts, Kilberg said 2012 should be a year of improvement for all of the commercial real estate property types. The multifamily sector is poised for the strongest performance in the year ahead, followed by the industrial, office and retail markets, she noted.

At Hartman Simons, “we’re finally seeing a big uptick in [commercial real estate] activity across the board,” Kilberg said. But overall, the industry is “making its way very slowly to recovery.”

• The Office Sector: Go Intown and Buy Your Own. While the office sector continues to struggle in many areas of the country, properties in central business districts are generally performing better than their counterparts in the suburbs, Kilberg said, in part because the smaller companies and start-ups that generally lease suburban space have yet to experience renewed job growth.

Kilberg also said Hartman Simons is seeing an increasing number of users buy their office buildings. She noted that Hartman Simons did so several years ago.

Four on Friday: Eitan Ovadia

We are thrilled to welcome associate Eitan Ovadia back to Hartman Simons. Eitan, who was with Hartman Simons from 2006 to 2008, recently returned to our firm after three years as general counsel for The RADCO Cos., a real estate development and portfolio management firm. We recently got a chance to speak with Eitan about coming back to Hartman Simons.

What will be your primary scope of work at Hartman Simons?

Ovadia: A large part of my practice will be working with Hartman Simons’ banking and investor clients to manage their loan and REO portfolios, including a fair amount of foreclosure work. I will represent clients in the acquisition of existing multifamily housing and commercial space and - if things continue to improve – the development and construction of new projects. I will also be involved in lending and leasing, as landlords begin filling shopping center vacancies, industrial warehouses and office space across the country once again.

What did you do for The RADCO Cos.?

Ovadia: It really ran the gamut. I managed the company’s acquisition and disposition of notes and multifamily developments. I negotiated disputes, financial settlements and loan workouts on behalf of the company and our clients. I assisted institutional lenders and private equity firms in navigating through an array of pre- and post-foreclosure issues, ultimately securing title to large residential developments where we would then act as a successor developer to add value for our clients.

The several opportunities I had to serve as a receiver while at RADCO also ranked among the most interesting and educational experiences I’ve had - the variety and complexity of issues never left a dull moment.

What excites you most about working at Hartman Simons?

Ovadia: The people, no doubt. If it’s possible, I think everyone associated with Hartman Simons – employees and clients, alike – seems to share a common sense of humor and positive outlook on life.  It’s great to work with such a friendly and fun-loving group.

What are some of your hobbies and interest outside of work?

Ovadia: My one year old nephew just moved back to town (with his parents, I think) and I take every opportunity I can to spend time with him. I’m forever trying to get to the gym; instead, I’m always at a new restaurant. I’m still looking for a good squash court in Atlanta and maybe a few players.

Four on Friday: Dr. Lee Resnick of WellStreet Urgent Care

Dr. Lee Resnick is the chief medical officer and chief operating officer of WellStreet Urgent Care, a client of Hartman Simons that opened its first facility two weeks ago in Peachtree Square in south Buckhead. We recently got a chance to chat with Resnick about the company’s growth plans, its operating philosophy and his medical career.

You just opened the first WellStreet Urgent Care site. When will you be opening others and where will they be?

By the end of 2012, we will have opened 12 of our urgent care centers. They will be all across the metro Atlanta area. In 2013, we will begin to explore other markets. We will look at secondary markets in Georgia, and we’re also open to looking at other metropolitan areas across the nation.

What is the operating philosophy and strategy of WellStreet?

Urgent care is an impulse decision: someone gets sick or gets injured – maybe Johnny breaks his leg sliding into second base – and all of a sudden you’re faced with, “Where do we go? What do we do?”

We want to be the brand that is people’s first thought in those situations. By locating in Class A real estate – properties that have high visibility and high traffic counts – we create a high profile in our communities and will be top of mind when those times come. We want to create an easy option and provide patients with the path of least resistance.

Once they are there, we will provide clinical care that is second to none. Our facilities foster an environment of care. They feature wide hallways, warm colors, spacious waiting rooms, coffee and tea. In an environment like this, patients feel more comfortable, and it becomes easier for them to talk with our doctors and to tell them more information, which in turns helps our physicians.

To ensure the best quality of care, we hire the best talent and put them through a 66-hour urgent-care training program.

You have long been at the forefront of improving the quality of urgent care throughout the country. Fill our readers in on your medical career and your background on the issue of urgent care.

I am board-certified in family medicine and an assistant clinical professor in the Department of Family Medicine at the University Hospitals Case Medical Center in Cleveland. I have spent the past decade in various urgent-care leadership roles.

I’m the founder and president of the Institute of Urgent Care Medicine, which specializes in the development of continuing education programs for urgent-care medicine. I’m also a founding board member and the past president of the Urgent Care Association of America.

Additionally, I’m a founding board member of both the Urgent Care College of Physicians and the Urgent Care Foundation, and I serve as the editor of The Journal of Urgent Care Medicine.

How do you enjoy spending your time when you’re not working?

When am I not working? (laughs) I really enjoy traveling with my family. My wife Stephanie and I have two children: a 13-year-old daughter named Paige and an 11-year-old son named Ian.

I’ve had speaking engagements all over the world, and I’ve usually been able to take my family with me, which has provided us with some wonderful opportunities to be together and experience places like New Zealand and Ireland. It’s been a lot of fun. 

Four on Friday: More Positive CRE Stats

As we discussed a while back, we’re catching wind of more and more indicators demonstrating that both the economy in general and commercial real estate in particular are on the mend. The progress may not be proceeding at the pace we all want, but it is steady and is much-welcomed news after the past few years.

Below are four more positive real estate stats that caught our eyes in recent days:

• The national warehouse vacancy rate declined to 9.6 percent in fourth-quarter 2011, a decrease of 24 basis points from its third-quarter mark and an almost 80-basis-point drop from the same period in 2010, according to CoStar Group. Furthermore, net absorption for the U.S. warehouse sector was a positive 110 million square feet in 2011, the best showing since 2008.  

Still, asking rents for warehouses declined in 122 of the 210 markets tracked by CoStar during the fourth quarter. “Rents aren’t growing yet because the gap remains wide between the vacancy rate and the availability rate,” a CoStar report explained. “The former is based on space that is actually vacant, while availability is based on space being marketed by landlords who are anticipating vacancy. The availability rate remains above 14 percent.”

• Consumer spending for Valentine’s Day is expected to rise this year, which is good news for the nation’s retail sector. The average person celebrating the event will spend $126.03, according to the National Retail Federation (NRF). The amount represents an 8.5 percent increase from last year’s $116.21 and is the highest mark in the history of NRF’s decade-old Valentine’s survey.

“As one of the biggest gift-giving holidays of the year, it’s encouraging that consumers are still exhibiting the desire to spend on discretionary gift items, a strong indication our economy continues to move in the right direction,” said Matthew Shay, president and CEO of NRF, in a statement.

• In the National Multi-Housing Council’s (NHMC) most recent quarterly survey of apartment market conditions – conducted at the end of January - the council’s Market Tightness Index rose to 60, up from 52 in October 2011.

NHMC defines a “tight” market as one in which vacancies are low and rents are high. A score above 50 means that apartment markets around the country are getting tighter, while a mark below 50 means that, on the whole, vacancies are increasing and rents are decreasing.

Indices measuring sales volume and the availability of debt and equity financing also showed positive trends.

“In the face of an unprecedented virtual shutdown of development, the apartment market continues its strong recovery as developers play catch-up to the growing demand for rental housing,” said NMHC Chief Economist Mark Obrinsky in a statement. “Investors continue to view apartments as a preferred asset class in today’s environment and long-term demographic changes favor rental housing. However, we expect the pace of improvement in transaction activity to ease somewhat moving into 2012.”

• Rents for prime office space in the world’s major cities increased by 0.8 percent in the fourth quarter when compared to the preceding three months, according to a new report by Jones Lang LaSalle. Even better: the rents for such space were 6 percent higher at the end of 2011 when compared with one year earlier.

“The rental outlook for 2012 has been tempered by ongoing economic uncertainty, although we continue to expect positive rental growth in most major prime office markets – the notable exceptions being Hong Kong and Singapore,” the report said. Beijing, Toronto and San Francisco are expected to perform particularly well in the year ahead and could experience double-digit rent growth, according to Jones Lang LaSalle.

An eight-page PDF of the report can be downloaded here.

Four on Friday: Jim Irwin of Green Street Properties

Jim Irwin is knee-deep in one of the most exciting projects in Atlanta real estate: the transformation of the historic City Hall East on Ponce de Leon Avenue into a mixed-use facility. When finished in two years, the in-town building – once a Sears warehouse and distribution center – will feature more than 1 million square feet of office, retail and residential space. 

Irwin is vice president, development, at Green Street Properties – a Hartman Simons client – and is leading the effort to redevelop the property. Green Street is a subsidiary of Jamestown Properties, which recently purchased the building from the city of Atlanta. We recently caught up with Irwin and asked – you guessed it – four questions about his firm, its projects and his hobbies.

HS: Your most high-profile project in Atlanta is the Ponce City Market project. What’s the current timeline for development of the facility, and how will the space be divided up when it’s finished? 

Irwin: We are slated to open in the spring of 2014. Construction began last October. The first phase has largely been one of demolition, and will last a total of about six months. We will begin demolishing the old parking deck by the beginning of February.

We are not removing any historic structures, but there are a lot of layers to remove to get to the original structure.

These are rough numbers at this point, but the final building will have about 300,000 square feet of retail, 400,000 square feet of Class-A office space and 200 apartments, and maybe a boutique hotel.  All under one roof.

There’s really no other project like it in the market. There’s a dearth of loft Class-A office space in Atlanta. The building still has the original hardwood floors from the 1920s and all the associated character, but will be combined with all of the modern conveniences of a new office building.

HS: Explain Green Street’s development philosophy. Is the Ponce City Market project indicative of the kind of projects your firm undertakes? 

Irwin: It is. We focus on urban infill projects located in historic, character-driven buildings. Another recent example in Atlanta is the Westside Provision District, a 110,000-square-foot, mixed-use project that we developed out of an old meatpacking plant on Atlanta’s West Side. The development features retail, fine dining and high-end residential units. 

Also, sustainability is a fundamental part of what we do. Our development projects are part of the live-work-play movement, and our consulting team offers a range of LEED, Energy Star and overall energy efficiency services for both new and existing buildings.

Ponce City Market’s proximity to the Beltline is huge for the project and is an example of the way that our projects incorporate accessibility to rail, biking trails, etc.

HS: What demographics are most responsive to your projects?

Irwin: They particularly resonate with the “creative class.” But we’re finding companies of all stripes are interested in office space in these live-work-play environments. They are becoming very savvy about employee satisfaction and retention, and they know that their employees want to be in authentic places, buildings that have a lot of character and are unique.

People – whether it’s residents, office workers, shoppers – they want to be in places that aren’t sterile.

HS: How do you like to spend your free time?

Irwin: I like to spend time with my two sons: Drew, age 2, and James, age 4. I enjoy coaching them in sports. I also enjoy four-season gardening and have been fascinated lately with beekeeping.

Four on Friday: Positive CRE Stats

As 2012 gets underway, there are numerous signs that commercial real estate markets – along with the economy – are making slow but steady recoveries. While the current climate hardly resembles the boom days of 2005 and 2006, there is finally good reason to believe we are on the right track. Below are four recently released stats indicating the industry’s continuing comeback:

• The Architecture Billings Index, compiled each month by the American Institute of Architects (AIA), was 52 in December, marking the second straight month the index demonstrated growing demand for design services. Any score above 50 reflects an increase in architectural billings.

The index also was 52 in November.

While noting the Index demonstrated increasing demand in late 2010 –only to fall below the 50 mark for much of last year – AIA Chief Economist Kermit Baker said in a statement the recent scores are “very good news for the design and construction industry, and it’s entirely possible conditions will slowly continue to improve as the year progresses.”

• The National Retail Federation (NRF) says retail sales will increase by 3.4 percent – to $2.53 trillion – in 2012. While that’s lower than the 4.7 percent growth of 2011, “the retail industry will still grow at a rate faster than many other industries,” NRF said, noting economists typically are projecting the real U.S. gross domestic product to rise by 2.1 to 2.4 percent.

• The CoStar National Composite Index, which measures commercial real estate sale prices, increased for the seventh consecutive month in November 2011, when it rose by 0.6 percent when compared to the preceding month. CoStar attributed the growth to the “continued decline in the number of distressed property sales, and solid price gains in investment-grade property sales.” 

In November, prices for commercial properties were an average of 1.8 percent higher than they were in the same month in 2010.

• The U.S. office market absorbed 50.4 million square feet in 2011, up from the 18.7 million square feet it absorbed one year earlier, according to a new Cassidy Turley report. Sixty-five of the 80 metropolitan areas tracked by the firm experienced positive absorption in 2011; in 2010, only 43 of the markets did.

The national office vacancy rate has declined for the past five quarters, but it is still 200 basis points above the 20-year historical average of 14 percent. “The U.S. office sector is still a solid 12 months away from registering consistent upward movement in rents across the country,” said Kevin Thorpe, chief economist for Cassidy Turley, in a statement.  “In most metro areas, vacancy is at least 200 basis points above where it needs to be to trigger sustainable rent growth.”

Four on Friday: Marci Rossell Addresses CREW Atlanta

In her days as CNBC’s chief economist and co-host of the popular “Squawk Box” show, Marci Rossell gained a loyal following because of her lively and humorous analysis of economics and politics. On Thursday, Rossell, currently a visiting professor at DePaul University, brought that engaging style to the Cobb Energy Performing Arts Centre for CREW Atlanta’s monthly luncheon. (In the adjacent photo, Rossell, left, is pictured with Hartman Simons partner Lori E. Kilberg, the immediate past president of CREW Atlanta.)

Rossell’s nearly hour-long remarks detailed her commercial real estate and economic forecast for 2012. Below are four of the many noteworthy points she made during her talk.

• Commercial Real Estate Markets Are Improving. After bottoming out in 2009, commercial real estate experienced improved transaction volume and financing conditions in 2010 and 2011. Pricing has yet to improve, but it is always “the last phase of a [recovery] cycle,” she said.

The real estate and broader economic recoveries would be farther along if not for the disruptions caused by last year’s earthquake in Japan and the decreased consumer confidence that resulted from the federal debt-ceiling crisis. “Those two things temporarily caused a slowdown across the board,” Rossell said. “We’re just now seeing those effects wash away.”

• Single-Family REITs Are Growing. REITs that buy single-family homes and then rent them out to tenants are among the “fastest growing segments of commercial real estate,” Rossell said.

• Atlanta is at a Crossroads. The population growth that largely insulated Atlanta and much of the South from the effects of previous economic downturns has slowed, Rossell noted. During the past three years, the population of the Atlanta region has increased by just 1 percent, leaving the area more exposed to the ravages of the recent recession, she said, adding “that [percentage is] starting to look like the rest of the United States.”

As a result, Rossell said, Atlanta officials must ask themselves, “Do we become Charlotte or do we become Detroit?” Charlotte, she explained, adjusted to the decline of its manufacturing sector in the early 1990s by opening “itself up to [the] financing [sector],” while Detroit has stubbornly continued to rely on the automobile industry. 

The recent streamlining of its permitting process, which officials hope will make Atlanta a more appealing destination for business expansions and relocations, indicate the city is responding to the challenge, Rossell said.

• A Break-Up of the Euro Zone Wouldn’t Significantly Harm the U.S. Economy.  Rossell estimated there’s a 60 percent chance the euro zone will break up this year. Contrary to conventional wisdom, though, such an occurrence wouldn’t derail the U.S. economy, she said. “I believe that’s been priced into U.S. financial markets already.”

What would create a setback is an unexpected event, such as last year’s earthquake in Japan or debt-ceiling crisis. “What bumps you away from the [recovery] cycle? The unexpected things,” Rossell said. “Is there anybody here that hasn’t heard that Greece is in trouble?”

Four on Friday: Chelsea Dennis

One month after joining Hartman Simons’ litigation team, Chelsea Dennis agreed to answer FOUR questions so we could get the inside scoop on the firm’s recent addition. Dennis joined Hartman Simons from Seyfarth Shaw, LLP where she served in the commercial litigation group. She graduated from Michigan State University and holds her law degree from Emory University.

HS: What will be your primary scope of work at Hartman Simons?

CD: As a member of the litigation team, my main focus will be representing clients in confirmation actions, deficiency actions and note-suits. I will also represent creditors in both corporate and individual bankruptcy proceedings.

HS: What excites you most about working at Hartman Simons?

CD:  All of the attorneys are extremely approachable and have a wealth of experience in law and business. I am impressed with the relationships the attorneys develop with their clients and I am proud to be a part of the Hartman Simons team.  

HS:  First impression of the firm?

CD:  Everyone has been very kind and welcoming. 

HS:  Can you share a fun fact about yourself with our readers?

CD:  I was a competitive figure skater for 13 years and obtained the highest level of testing in individual freestyle figure skating.   I was also a member of Michigan State’s synchronized skating team, competing on the regional and national levels.

 

Four on Friday: Best Blogs of 2011

It has been a busy year at Hartman Simons – including on the social media front! In 2011 we launched Hartman Simons’ Commercial Real Estate Blog, Facebook page and Twitter Account. We also redesigned our website to better serve our clients. It was hard to pick favorites, but we thought it would be fun to select four of our best blogs from 2011 for our last Four on Friday of the year!

1. Looking out for Landlords (April) – Written by Partner Jeremy Cohen, the blog entry outlines three questions landlords should consider when an existing tenant comes to renegotiate its lease before a renewal period. This blog remains relevant and is a must-read for landlords and tenants.
2. Thinking Outside the Traditional “Retail Box” (July) – Leasing to non-traditional tenants (NTT) was a big trend in 2011. As retail continued to struggle, Partner Lori Kilberg saw everything from outpatient clinics to colleges leasing space in traditional shopping centers. Lori shares why this can be a win-win for landlords and NTTs.
3. The Art of Landing – and Keeping – Clients and Customers – (September) Who better to give this advice than our Managing Partner Summey Orr? Summey shares seven tips to reel in – and keep – clients. His insightful blog also will put a smile on your face with tips like “Don’t be a Hater” and “Know Thyself (And Assume the Prospect Can Figure Thyself Out).”
4. Conflict Waivers – a Continuing Conundrum (October) In our last (but definitely not least) pick, Partner Benno Rothschild provides the lowdown on conflict waivers. He defines conflict waivers and also explains how conflicts of interests happen and how the process for identifying them has changed in recent years.

Let us know if there are topics you want us to tackle in 2012. We have 28 attorneys ready to share their insights and advice ­– and they’re all vying for a spot on next year’s best blog list.

Hartman Simons would like to wish all our readers, clients and friends a prosperous 2012! 

Check out a word cloud from our 2011 blogs!

 

Four on Friday: Michael Smythe

From dealership owner to commercial real estate developer, Michael Smythe has done it all. He and his family owned several car dealerships in California before they decided to sell to AutoNation in 2000. In 2002, he got involved in commercial real estate and is now the owner and developer of Blue Oaks Town Center in Rocklin, Calif. This 600,000-square-foot mixed-use development is home to a hotel, restaurants, entertainment and retail. We asked Michael FOUR questions about the challenges Blue Oaks Town Center has overcome and why he picked a law firm in Atlanta!

HS:  How was Blue Oaks Town Center affected by the downturn?

MS:  The crash was devastating to the entire country, especially retailers. Two retailers in the development, Mervyns and Shoe Pavilion, declared bankruptcy and liquidated at the end of 2008. Mervyns vacated an 80,000-square-foot space and Shoe Pavilion left a 25,000-square-foot space. Fortunately, after dividing the spaces we only have 13,000 square feet vacant as a result of losing these two tenants. The replacements are a 16-screen multiplex cinema, laser tag facility and gym.

HS:  How did Hartman Simons help you through these challenging times?

MS:  We first engaged Hartman Simons on this project back in 2005. I have worked with Bob Simons and Jeremy Cohen and both are very hands-on and trusted  advisors. Cohen continually helps me find creative leasing solutions. 

HS:  What businesses are thriving?

MS:  It is interesting. There are three businesses that tend to do well during an economic downturn. 1) Cinemas 2) Value-orientated fitness clubs 3) Liquor stores. In Blue Oaks Town Center we were able to attract two of these business types to fill vacancies.

HS:  You are located on the West Coast. Why choose Atlanta-based Hartman Simons?

MS:  We needed a law team that could represent us well and understood what retailers wanted. We did not want to waste time on lease negotiations. Hartman Simons attorneys are focused on getting deals done instead of finding reasons why deals should not be completed.

 

Four on Friday: Karen Davis

‘Tis the season for giving! During the month of November, Hartman Simons sponsored a 10-man combat army unit for the holidays.  According to Karen Davis, a legal administrative assistant who helped organize the effort, the 400 pounds of goods she packaged over the past few days are a testament to the generosity and outpouring of support from the Hartman Simons team. Everyone is just hoping the soldiers send a picture of themselves unwrapping the gifts.  Davis agreed to answer FOUR questions about the effort for this week’s Four on Friday!

HS: How did the firm get involved?

KD: The Bert Show on Atlanta’s Q100 recently had a letter writing campaign to the troops called “Bert’s Big Thank You,” so every soldier stationed or deployed outside the United States could receive a letter on Thanksgiving Day.  Participating in that letter-writing campaign was inspirational and gave me the idea to check with our management team to see if Hartman Simons could get involved by sponsoring a troop for the holidays. The rest is history and through http://www.anysoldier.com, we were able to find a troop that needed our help.

HS: What type of materials did you collect?

KD: In addition to many donated items the employees themselves purchased using the soldiers’ “Wish List” as a guide, an estimated $1,000 in cash donations was collected from employees and the firm itself, with which we were able to purchase and send LED cap lights (flashlights that clip to helmets), weapon cleaning kits, fleece blankets, ankle socks, energy drinks, playing cards and magazines, to name a few.

HS: Any stories from the campaign that stand out?

KD: The troop made a special request for Guppie Multi-Tools. Each tool can function as a utility knife, screwdriver, pliers and much more. Unfortunately, they are quite pricey, but Hartman Simons managing partner Summey Orr believed it was a must have for the troops. He purchased a Guppie for all 10 soldiers. He really is my hero.

HS: Most creative gift sent?

KD: Christine Davy, our managing partner’s legal administrative assistant, had the fabulous ideas of sending pillows to the troops.  She sewed and I helped fill a desert camouflage pillow for every soldier.  It was a fun and thoughtful idea. 

 

Four on Friday: Join Hartman Simons and Support America SCORES Atlanta

Poetry and soccer may seem like an unusual combination, but not for America SCORES Atlanta, an afterschool program addressing illiteracy and obesity. Hartman Simons managing partner and America SCORES Atlanta board member Summey Orr is one of several board members who helped organized a fundraiser for the organization themed “Inspired Art.”

The event will be held Nov. 17 at Alston + Bird’s offices at 1180 West Peachtree from 6 p.m. to 9 p.m.  Twenty-two local artists created and donated pieces of art inspired by poems written by students in the program.  Those pieces of art will be on display and for sale by silent auction during the evening. Several students from the program will be in attendance to read their poetry.  There also will be a live auction for a lunch with Congressman John Lewis as part of the fundraiser.

For this week’s Four on Friday we are showcasing four paintings that will be auctioned off next Thursday. Tickets are $35 each and will be available at the door or from any board member. Don’t miss out on this great event!

 

 

“What I am” by Becky Fried

 

 

 

 

 

 

 

 

 

 

“Summertime” by Jennifer Josephs

 

 

 

 

 

 

 

 

 

 

 

“Seeing Red” by Cat Tesla

 

 

 

 

 

 

 

 

 

 

“Tornado” by Ann Rhodes

 

 

 

 

 

 

 

 

 

 

According to Program Director Laura McCrodden, America SCORES Atlanta is important for students’ heath and grades.

“America SCORES Atlanta shows students someone outside their family cares,” said McCrodden. "Our programming provides students with faith, fun and education. We want to expose students to things they have never seen before.”

America SCORES Atlanta is an affiliate of the national organization, America SCORES. The program, now in its sixth year, is based at Woodson Elementary in west Atlanta and currently serves 75 third, fourth and fifth-graders. Participants in America SCORES Atlanta attend the after-school program five days a week from 2:30 p.m. to 5:30 p.m.  To learn more about America SCORES Atlanta visit http://www.americascores.org/affiliates/atlanta

 

Four on Friday: ICSC Law Conference

By Lori Kilberg, partner

Changing lease provisions in the new economic environment and negotiating operating covenants were among some of the hot topics discussed at the ICSC Law Conference last week in Phoenix. However, for this week’s Four on Friday I wanted to share four key takeaways and a picture of four of us enjoying a break from the seminars with a hike to the top of Camelback Mountain. I even had the pleasure of attending the conference with four of my Hartman Simons colleagues - Peter Hartman, Ken Clayman, Mark Florak and Charlie Brake. A special shout-out to Charlie who gave an excellent presentation on due diligence.

My four key takeaways:

1. You always get more accomplished when you meet people in person. I also enjoy putting names with faces and finally meeting attorneys I have been working with.
2. I always manage to get a lease done at the law conference.
3. The ICSC Law Conference is a great opportunity to pick up a year’s worth of CLE credit and attend some great programs.
4. Camelback Mountain is much more challenging than a 1.2 mile hike would indicate - especially when the climb is straight up! Check out the picture below from this memorable excursion.

My four favorite hikers:

From left: Nancy Rendos, Macerich; Amy Nathan, GNC; me (Lori Kilberg, Hartman Simons); and Glenn Browne, Braun, Browne & Associates, PC.

Four on Friday: Christine Gorham, CCIM

Meet Christine Gorham, CCIM with Eastwood Real Estate Services. In 2010, she partnered with Lee Eastwood (last week’s Four on Friday) after 24 years of medical experience in both the operations and real estate sectors (including 10 years at Northside Hospital and Director of Asset Management and Leasing nationwide for SRS Investments).  The dynamic partnership has continued to grow Eastwood Real Estate Services, a commercial real estate firm specializing in medical and dental transactions.  Christine currently serves as a director on the board of CREW Atlanta. In 2009 to 2010 she served as co-chair for Leadership CREW and has been active in CREW Atlanta since 2005. Christine and Lee were recently nominated by CREW for the Entrepreneurial Spirit award in Washington, D.C.  Check out Christine’s insight into what’s happening in medical office and why CREW is important to her!

HS: What are some trends you are seeing in medical office real estate?

CG: There are some common misconceptions that the healthcare industry is doing well. We are still doing deals, but the industry has been largely affected by the economy and job layoffs. People are rolling the dice and not carrying insurance, which has reduced the volume of patients in doctor offices. This, combined with healthcare reform and pending Medicare cuts, has the healthcare industry in caution mode. Doctors are being more thoughtful about leasing space for their practices. It used to be that five and ten-year medical office leases were standard. Now we are seeing more three and five-year deals.

HS: How is Atlanta doing compared to the rest of the country?

CG: In terms of medical office, we are doing better than a lot of the other markets in the South. It basically comes down to density. People seem to be migrating toward larger cities and growth is still expected in Atlanta over the next decade. The city is currently experiencing mild growth while other markets are falling apart.

HS: Why has CREW been important to you?

CG: The quality and breadth of resources my partner Lee and I can utilize is immeasurable. In addition, I personally feel strong about supporting women in the industry. Last March I spoke at a conference in New York City, and out of a room of 300 commercial real estate professionals, there were only 13 women. Women are outnumbered in the commercial real estate industry and it is nice to have such an excellent network of women you can turn to and count on.

HS: What keeps you busy when you are not in the office?

CG: I am the wife of a busy husband and mom of three awesome boys; I really make an effort to attend all of their activities.  I also help with the PTSA, usher at my church, participate in my sorority alumnae chapter, play volleyball & tennis and of course cheer on those Clemson Tigers…did I say ranked 8^th out loud?  Lee and I have been working very hard and are looking forward to celebrating our successes with some great Fall-weather golf! The last time we played together in a tournament I won the long drive contest so we are planning to use my winnings at Chateau Élan very soon!

Four on Friday: Spin for Kids!

With Oct. 23 just around the corner, Hartman Simons is getting pumped for Spin for Kids. Now in its sixth year, Spin for Kids is Camp Twin Lakes’ annual bike ride fundraiser that helps send children with serious illnesses, disabilities and life challenges to camp. This year Hartman Simons is sponsoring our own corporate cycling team and we look forward to pedaling toward a good cause.

Four things you need to know about this year’s event:

1. It’s not too late to get involved! We are working to sign up as many commercial real estate and corporate teams as possible. Join teams like Halperns’, NAI Brannen Goddard and Sweetwater Brewery. Click here to sign up as an individual or as a team!

2. Hartman Simons has 13 riders on our corporate team including attorneys Andy Litvak and Benno Rothschild. Our team also includes Blake Snyder, senior vice president at State Bank & Trust and valued Hartman Simons client. A special thanks to the following sponsors that made this year’s team possible: North American Properties, Atlantic Town Center, State Bank & Trust and Trilogy Group. To see the complete team roster or donate to the Hartman Simons team click here! Help us reach our fundraising goal of $7,500.

3. To date, 700 riders have registered and over $111,000 has been raised for Camp Twin Lakes.  

4.  Whether you are a recreational cyclist or planning to ride in this year’s Tour de France, the weekend offers something for you. On Saturday, Oct. 22, Spin for Kids hosts the Mountain Bike Ride. Participants can choose from 8-, 12- or 20-mile rides through Fort Yargo State Park. The road ride, held the following day, features 5-, 27-, 47-, 62- and 100-mile options. Following the Sunday ride, all Spin for Kids riders, along with their friends and family, are invited to a post-ride celebration featuring food, music, and fun camp activities at the beautiful facilities at Camp Twin Lakes-Rutledge.

 

Four on Friday: Jeff DeHart

Meet Jeff DeHart, a partner at SJ Collins Enterprises, a retail development company focused in the Southeast and Mid-Atlantic.  Jeff acts as the primary asset manager and managing member of the company’s various projects. Jeff’s previous experience includes time at his own firms, six years at Collins/Goodman Development and eight years with the Portman Companies. Many of you may also know him as RetailJeff on Twitter. Hartman Simons’ attorneys have enjoyed working with Jeff on several projects during the last three years and we are pleased to feature him in this week’s Four on Friday! 

HS:  What are some retail trends you see in the Southeast?

JD:  Right now we are seeing a number of opportunities in adaptive reuse and infill development.  I believe this is a macro trend as retailers seek out proven markets.   Many older shopping centers have a lot of functional obsolescence and simply need to be replaced. We are seeing more retailer demand in the Mid-Atlantic than here at home.

HS:  Any retail predictions?

JD:  There will definitely be some fallout of yogurt stores. We have watched them pop up around Atlanta and the Southeast. I have three teenage sons and two of them work at a yogurt shop! The stores located in areas with no immediate competition and high barriers to entry will be most likely to survive.   Another trend to watch is the effect of internet shopping on Big Box retail.  If you can go into a big box store and price compare from your smartphone, margins will continue to be pressed.  This could bode well for specialty merchants who offer something other than price.

HS: Why are you so active on Twitter?

JD: I’m a Learner by nature. Twitter helps me keep up with the latest news and trends. This is critical to our business because trends and demographics drive everything.

HS: Football Team?

JD: Go Dawgs! I’m a proud, yet sometimes troubled, UGA alum.

 

Four CRE Conferences on Friday

Fall is a busy time for commercial real estate folks! We picked FOUR of the best conventions and conferences that Hartman Simons attorneys will attend, both near and far, to learn, teach and network. Learn more about these events below — and hopefully we’ll see you there!

1. CoreNet Global Summit, Atlanta 2011

    Nov. 6-8, 2011

    Georgia World Congress Center, Atlanta, Ga.

    Social Dynamics: Connectivity, Creativity, Relationships

Significant global change is driving us toward increased connectedness and interdependencies across cultures and continents, impacting the individual, the corporation and the Corporate Real Estate (CRE) industry as a whole. People are connecting and creating in new ways, forming new alliances, expanding their personal scope and reach, with new tools and in new environments.  As the role of the 'connected culture' continues to grow on a global level, how can CRE keep pace? To find out more and register today, click here. 

2. ULI Live! 2011 ULI Fall Meeting and Urban Land Expo

    Oct. 25-28, 2011

    Los Angeles Convention Center, Los Angeles, Calif.

    75^th Anniversary Meeting

ULI’s Fall Meeting is the place where top leaders will meet to share strategies and solutions and hear about the trends and opportunities that will give them a competitive edge.  Featured speakers include former U.S. Secretary of Defense Dr. Robert Gates, Founder of the Broad Foundation Elie Broad, Chairman of the Milken Institute Michael Milken and President & CEO of AEG Tim Leiweke. To find out more and register today, click here. 

3. NAIOP’s Annual Meeting for Commercial Real Estate

    Oct. 18-20, 2011

    Fairmont Scottsdale Princess, Scottsdale, Ariz.

    Development ‘11

Development '11 presents unique viewpoints in the CRE industry, economy and nation, delivered by prominent keynote speakers. The line up of keynote speakers includes world-renowned political strategist and author Karl Rove as well as legendary business leader and sports magnate Jerry Colangelo. Attendees will hear from some of the most influential leaders in commercial real estate as they share their personal experiences, strategies for success and lessons learned during the CEO Insight Series. To find out more and register today, click here. 

4. NAREIT’s Annual Convention for All Things REIT® 

    Nov. 15-17, 2011

    Hilton Anatole, Dallas, Texas

    REIT World 2011

NAREIT’s Annual Convention takes advantage of the many opportunities to hear first-hand from REIT executives, engage peers, learn from experts in the real estate investment community, and forge new relationships through the many networking opportunities available. The conference offers a blend of private meetings, general sessions and networking events. To find out more and register today, click here. 

 

Four Atlanta Mayors on Friday

What are your views on the proposed transportation tax? Any chance of it passing? Should it pass? Would it make a difference? These are just a few of the questions Pulitzer Prize-winning writer and journalist Douglas Blackmon asked Atlanta Mayor Kasim Reed and former mayors Sam Massell, Andrew Young and Bill Campbell on Sept. 12. Held at the Atlanta History Center, the roundtable discussion focused on the politics and history of Atlanta from the 1960s to present. The evening was part of Atlanta magazine’s yearlong 50^th anniversary celebration. Since the proposed transportation tax is such a hot topic in Atlanta and the commercial real estate industry, we are sharing a summary of the evening’s transportation discussion.

Sam Massell: I support almost anything that improves methods of transportation and will increase Atlantan’s mobility. Mobility is man’s fifth freedom. People are imprisoned in their neighborhoods if they can’t get to work, school, church, shops or any other amenity part of a normal quality of life. A regional approach to transportation is positive and one we should support.

Andrew Young: With just two counties involved, Fulton and DeKalb, the MARTA referendum only passed by 400 votes. It passed largely because the most delicate and comprehensive negotiation ever held in a city was held in this city. First, people didn’t believe the entire train system would ever happen. They believed the north/south rail line would be built to the airport, but the east/west line would never come to fruition. As a result of the skepticism, we decided to build the east/west line first. Secondly, it was decided that a one-cent sales tax was regressive so we lowered bus fare from 55 cents to 15 cents for 10 years.  Thirdly, due to the sensitivity and determination of Atlanta’s business community, it was recognized you couldn’t have enough progressive and visionary people in one race to make change happen. You need all races behind a single agenda. As a result, the construction of MARTA was the first time affirmative action was attached not only to contractors and construction, but also management and operations.  This story of MARTA shows us we know how to run elections. We need to run this election in the same way and make this referendum pass.

Kasim Reed: Looking back, $3.5 billion in construction happened from 1994 to 1996 to prepare for the Olympics. This resulted in $60 billion to $70 billion in economic development. Atlanta had a favorable run from 1994 to 2007 and then I was elected. Everyone acknowledges the Olympics were a significant economic driver. In London, they are spending $9 billion for the upcoming Olympic games. If we pass the regional transportation tax, it is not just about what it will do for mobility in a 10-county area. The prize is $9 billion in infrastructure investment and $900 billion being spent in a 10-county area. If we pass this referendum, we will have more economic activity in metro Atlanta than anywhere else in the U.S.  I believe this is what the region needs to get out of these tough times and get 57,000 construction workers back to work.

Bill Campbell: Three things have defined Atlanta: race relations, education and transportation. We started as a railway hub and now Atlanta is an airline hub with an airport second to none in the world. I commend Mayor Reed for his vision and all of us understand the alternative to this referendum is cataclysmic. We need to move the voter education process forward. Without the referendum, not only is there the absence of hundreds of thousands of jobs, but the loss of potential commerce that comes with better access and transportation. All that being said, I leave the job to Mayor Reed’s commendable leadership to get 10 counties to do it. 

 

Four on Friday: Charles Elrod

Two months after joining Hartman Simons, associate Charles Elrod agreed to answer four questions so we can get to know the firm’s newest addition a bit better.  Elrod, who came from Miller & Martin, will work with Amanda Buckley in the corporate practice area. Elrod was attracted to Hartman Simons in large part because of the team atmosphere. Born and bred in Atlanta, Elrod graduated from Washington and Lee University and earned his law degree at the University of North Carolina. He is getting married this fall.

HS: What kind of work will you focus on here?

CE: I will focus on the various corporate needs of clients, including formation, governance and capital raising.

HS: So you won’t be a commercial real estate lawyer?

CE: No, but you don't come here and not work with a strong base of commercial real estate clients! I will assist real estate companies similarly to the way I assist clients in other industries. 

HS: What do you do when you’re not working?

CE: Run, golf, hunt, fish, cook

HS: Where are you going on your honeymoon?

CE: Nevis

 

Four on Friday: Wilkinson's George Waymire Climbs to New Heights

While scouring the nation for multifamily investments, George Waymire “descended” on Atlanta. An acquisitions vice president with Wilkinson Corp. based in Yakima, Wash., Waymire found Atlanta to be the land of opportunity.

He enlisted our firm's help for two Atlanta acquisitions in June, due to Hartman Simons’ expertise in real estate and the Atlanta market. Read on to hear about Wilkinson Corp.’s entry into the Atlanta market and Waymire’s exciting hobby as an experienced mountain climber. Just take a look at this picture…you have to be intrigued!

HS: Why Atlanta?

GW: We look for markets with a strong economic base and big employers. Atlanta has a diversified economy with a large manufacturing and service sector. We also look at a market’s growth rate. In the 2000 census, Atlanta grew from 4,248,000 people to 5,611,000. The 2015 projection is 6,180,000 people. We are continuing to find quality assets in the metro area that we believe will provide great returns in the future.

HS: Tell us about your metro Atlanta projects?

GW: We purchased two multifamily properties in June at low replacement costs. We are completing extensive capital improvements that should be finished by mid 2012. One property is 138 units in Canton, Ga., built post-2000. The other is in the Stone Mountain area and is 224 units built in the 1980s.

HS: What’s something about Washington state that Southerners should know?

GW: A lot of people think of “the Evergreen State” as a place where it rains all the time and everything is green. This may be true of the western side of the Cascades. However, approximately two-thirds of the state is more of a highland desert. In Yakima, where Wilkinson Corp. is based, we receive less than 10 inches of rain a year.

HS: We had to postpone our chat because you were climbing Mount Rainier. Tell us about your climb!

GW: I am an avid climber and have summited Mount Rainier over 25 times. (14, 411 feet) However, this time was extremely special. I summited with my friend, Jake Olson, and six others. We all watched Jake set a record as the first person to snow kite on the summit of Mount Rainier. (see picture below)

Four on Friday: Darrell Lamb

Express Oil Change and Service Center is paving its way to success in the Southeast. Owned by Darrell Lamb and his business partner, Adam Fuller, the automotive maintenance and repair shop has 26 stores with three more in the works. The pair continues to actively acquire real estate for new stores and Hartman Simons partner Jeremy Cohen is by their side as a trusted advisor. Darrell sat down with us to share insight on what’s trending in the auto repairs industry and why he thinks Express Oil is enjoying growth in a challenging market. (From left: Darrell Lamb and Adam Fuller)

HS: Many oil-changing businesses are struggling. To what do you attribute your success?

DL: Our saving grace is Express Oil is a two-sided business. We offer both maintenance and repairs. With gas prices being so high, consumers are feeling the pinch and driving less. This cuts down on routine maintenance. On the other hand, the repair side is doing great for two reasons.

1)    Consumers are hanging onto their vehicles longer and not buying new cars.

2)    More people are owning cars instead of leasing.

HS: You are actively acquiring real estate for stores. How is it going?

DL:  The banks are offering better terms on money than I have ever seen. Our sweet spot is we are owner-occupied so we have not had any trouble getting loans.

HS: How are your Atlanta stores fairing? What other markets are strong?

DL: Our store in Atlanta is doing great, but the stores in the outlying metro Atlanta area are slightly down. We think this is partly because people are moving back into the city and driving less. Our stores in college towns like Athens, Ga., and Auburn, Ala., are doing well as expected. Other top performing stores are in Baton Rouge, La., and Destin, Fla., which we built in the last two years.

HS: Any insight you can share about Jeremy Cohen?

DL: When it comes to real estate, I wouldn’t use anyone but Jeremy. My partner and I have been using Jeremy for seven years and he is truly a trusted advisor. However, he still owes me a gambling trip to Biloxi!

 

Four on Friday: Hartman Simons #FollowFriday

We know you are getting all your Atlanta commercial real estate news @hartmansimons. However, check out our top four twitter recommendations for  #cre thought leaders located around the country.

1. @CoyDavidsonCRE

Followers: 7,969

Location: Houston, Texas

Bio: #CRE Professional with Colliers International. Tenant Representation and Corporate Real Estate Strategy, Longhorn, New Media & Economics junkie

Recent tweet: 9 Business Trends That Aren't Going Away http://ht.ly/5PpLs

Why should you follow Coy Davidson?Coy Davidson, senior vice president at Colliers International, tweets about his expertise in tenant representation and corporate real estate services. His twitter account often shares the newest post from his blog, The Tenant Advisor.  We can always count on Coy to share rich content that just makes us feel smarter.

 

2. @Michael_MBA

Followers: 3,634

Location: San Diego, Calif.

Bio: Commercial Real Estate, ICSC, CMBS, Strategy, Leadership, Shopping Center Management, Retail

Recent tweet: Mid-Year Update: Office Leasing Strong In Spite of Anemic Job Numbers - CoStar Group http://ow.ly/1v2Kcx #office #cre

Why should you follow Michael?Michael is a great resource for cre news. Not only does he aggregate top articles on current events, his twitter feed features articles that help followers understand how these stories affect the cre industry.  When we asked Michael via direct message why he uses twitter he said, “I want to democratize #cre & related intel. Wish I had these resources as a new #cre pro. Want to help community find info.” Thanks, Michal…we think you are doing a great job!

 

3.@dukelong

Followers:1,650

Location: Indianapolis, In.

Bio:  Broker/Owner Commercial Real Estate

Recent tweet: Create a Billion Dollar Commercial Multiple Listing Service. Step 1:Customer Service. http://bit.ly/p5i9Ba #CRE #DCRE

Why should you follow Duke Long? If you like lists, you need to follow Duke. Check out The List to 10 “Things” Commercial Real Estate Needs for 2011 and BOMA 2011 Summary: The List. His twitter account highlights some of the top stories (and lists) on his blog dukelong.com-ramblings of a commercial real estate broker. From real estate trends to cre sources, Duke has you covered.

 

4.@ICSC

Followers: 6,590

Location: New York, N.Y.

Bio: Serving the Global Retail Real Estate Industry

Recent tweet: #Research: ICSC-Goldman Sachs Weekly Chain Store Sales Index Increased Again http://bit.ly/qenpQK

Why should you follow International Council of Shopping Centers?If your work is affected by retail real estate, we can’t think of a good reason why you wouldn’t follow ICSC. Unlike many organizational twitter accounts, ICSC does more than tweet about its upcoming conferences. It shares the latest retail news and research. The organization is truly a thought leader in the social media space.  It recently launched The ICSC Social Media Pavilion at RECon 2011 and due to the positive response, the initiative will launch at several other regional events. Attendees learn how social technologies are applied in retail real estate and shopping centers.

Now its time for you to stop reading and get tweeting! Check out these tweeters and make sure you follow @hartmansimons.com. Happy Friday!

 

Four on Friday: Shannon Martin

In 2004, Shannon Martin established Retail Leasing Advisors, a boutique firm specializing in retail leasing and consultation services for landlords and developers.  After working independently for a few years, Shannon asked her sister, Angie Hutson, to join the team.  Since 2007, Shannon and Angie have been working together along with their loyal clients to lease shopping centers in both good and bad economies.  They pride themselves on their long-term relationships with clients and the hard work they dedicate to each project.

Recently, Shannon and Hartman Simons business development manager, Sharon Poland, have been spending a lot of time together. The two worked as part of a team to coordinate the ICSC Political Action Committee (PAC) Party in 2010 and are looking forward to doing it again this year! (Photo below taken at Hartman Simons ICSC party. From left: Andy Salomon, Monetha Cobb, Stephanie McCall, Shannon Martin)

HS: What are your clients looking for in a tenant?

SM: My clients want tenants that have experience and are going to be successful long-term.  We want tenants who will enhance our projects and complement the existing tenants.  Ultimately, tenants should benefit the community.

 

HS: Is this different than a few years ago?

SM:  Yes and no. We have always looked for tenants with proven track records who will add value to our centers.  However, in some cases, we are being more flexible with credit issues due to the drastic shift in the economy.  Angie and I find creative ways to better protect our clients’ interest in deals.

 

HS:  In today’s market, what makes a shopping center successful?

SM:  Location and tenant mix will drive a shopping center in a good or bad economy. However today, if you have two similar shopping centers in close proximity, the success often hinges on the owner’s flexibility to do deals. The market is currently being driven by people able to think outside the box.

 

HS: You and your sister work together.  Is that challenging?

SM:  Absolutely not.  We work very well together and our personalities complement one another.  She is a licensed agent and helps me with marketing, administration and deal making.  My hope is that she will be my business partner in the future.  Today, she works on my team and she does a terrific job raising my two nieces.

 

 

Four on Friday: Mitch Lewis

This week we have the honor of spotlighting CEO and President of Euramax International, an international producer of aluminum, steel, vinyl, copper and fiberglass products, specializing in products used in residential and commercial construction. Mitch Lewis is a long time friend and client of Hartman Simons. We happen to think he is a pretty interesting guy who provides a global perspective on the construction industry. Check out his interview below.

HS:  What construction trends are you seeing domestically?

ML: There are three steps.

1)    Residential New Construction. Across the nation, new residential construction is bumping along the bottom. We really are not seeing any significant improvements. Any small movement looks like a spike on a percentage basis, even thought it has little to no effect on the overall state of such a depressed residential market.

2)    Repair and Remodeling. This is a little better than residential new construction. However, the reality is people who stay in their homes long enough will ultimately need to make maintenance repairs. Unfortunately, the bulk of repair and remodeling is done when people are preparing to sell or buy a house. So we need housing turnover to jumpstart this market.

3)    Commercial Construction. It is on its back much like residential.

HS: What trends are you seeing internationally?

ML:  Euramax has manufacturing plants in the United Kingdom, France and the Netherlands, but we also sell products to the Middle East and Asia. The UK is struggling much like the United States because the government makes up a high percentage of their GDP and they have established austerity measures.  Residential construction is down. France and Germany are doing relatively well. Statistics show consumer confidence from a construction standpoint is decent in these countries. Asia and India are continuing to experience good growth.

HS: Describe the role environmental sustainability plays in your business?

ML: Euramax is very committed to environmental sustainability. We continue to utilize green technology to make our products greener and help our customers reduce their carbon footprint. Unfortunately, some of the latest green technology and innovation is still very expensive and not self-sustainable without government intervention. We are currently involved in several government initiatives to continue our work on innovative products and hopefully move towards making them more commercially viable.

HS: We know you have been a close friend of Bob Simons and Hartman Simons for years. What keeps you both going in such demanding industries?

ML: Bob and I probably are good friends because while our colleagues are relaxing on the golf course, we like to enjoy a McKendrick’s filet mignon and a scotch (or two). No better way to rejuvenate after a long day…right Bob?

 

Four (Photos) on Friday: ICSC Party Highlights

Our Hartman Simons ICSC Vegas party was a blast and now our photo album is live to prove it. We rocked the House of Blues at Mandalay Bay Hotel in Las Vegas. A special thanks to all who attended! Below are our four featured photos for this week’s Four on Friday. Enjoy!

Managing Partner Bob Simons, Sharon Poland - Director of Marketing & Business Development, and Owner and Marketing Guru Summey Orr from Hartman Simons standing back to take a break after all the hard work putting this party together. Thanks so much to the House of Blues and Joy Schroeder for a great party, and to Giles Hudson - Image Las Vegas Photography and our photographer Dan for these splendid shots! 

 

Duke Sullivan (South Harbor Capital), Buzz Wood (Hartman Simons), and Mike LaFerle (The Home Depot) just told Buzz that someone just signed him up to wear an orange vest and work part-time at Home Depot. (That produced the look of "shock" you see on Buzz's face!) 

 

 

 

 

How did these 5 guys get so lucky as to have their picture made with a beautiful lady, Margaret Caldwell (Jones Lang LaSalle)!! Chris Tomasulo (Jones Lang LaSalle) must have set it up, with Andy Litvak (Hartman Simons), Tony Wilbert (Wilbert News Strategies), Matt Valley - Editor of the NATIONAL REAL ESTATE INVESTOR, and Kris Cooper (Jones Lang LaSalle). Those JLL guys know how to set up a photo op!

 

 

Steve Cooper (Coro Realty Advisors), The Cohen (Hartman Simons), and Joe Parkes (The Parkes Companies, Inc.) - say cheese!

 

Four on Friday: Monetha Cobb of Franklin Street

Retail tenant broker Monetha Cobb, who joined up-and-coming firm Franklin Street about a year ago, works with clients including Cato, Bealls and Dollar Tree. She is heavily engaged in the Atlanta commercial real estate industry, whether planning a fundraiser for ICSC’s PAC in Georgia (sponsored by Hartman Simons) or organizing programs for CREW (where she works closely with Hartman Simons’ Lori Kilberg.)

We are big fans of Monetha (on the left in this photo), and are thrilled she agreed to participate in our weekly Four on Friday interrogation!

HS: Not everyone in Atlanta knows Franklin Street. Give us the quick story.

MC: Andrew Wright, a former Marcus & Millichap guy, started the firm in 2006 in Tampa. Atlanta, the second office, opened in January of last year. We also now have offices in Jacksonville and Ft. Lauderdale.  The main business concept of Franklin Street is results through collaboration. There are four companies — real estate, management, capital, and insurance — that make up Franklin Street and we are constantly working together to get the best solution for our clients. The core of the business is landlord services. However, I focus on retail tenant rep, so there is lots of room for growth within the company. In Atlanta, we are particularly focused on retail, though we are growing the multi-family business here and also we are interested in office and industrial.

HS: It is fun to be at a company that is growing?

MC: Extremely! The opportunity to grow with a young, very ambitious group of people was the main catalyst for my transition from a company where I had thrived for over 10 years. I am able to help influence the company’s growth.

HS: Tell me one interesting thing you are working on.

 

MC: I am working with Cato on a new concept called Versona. These are accessory stores that will be in malls, lifestyle centers and fashion-oriented power centers. Ten will open by October of this year, including two in Atlanta by end of the first quarter 2012.  Another 50 per year are planned each year companywide starting in 2012.  It is a very exciting concept that targets upper-middle-class women.

HS: You are involved in CREW. What do you like about it?

MC: I love the relationships. I have met a variety of women who work in all aspects of commercial real estate, so I have really broadened my network.