SAN DIEGO—During the borrower/developer panel at MBA's CREF/Multifamily Housing Convention and Expo 2017, Steven Kenny, SVP, CREB East Executive, Bank of America Merrill Lynch, began by asking panelists about how to differentiate themselves today to come out the winner of a property or of business.
“When you go and buy real estate, you need to have a plan and the capital going in there and really understand how much everything is going to cost,” said panelist Paul LeBeau, principal and CFO of Bollert LeBeau Commercial Real Estate. “You really better make sure you are well capitalized and can execute your business plan and that is where a lot of entrepreneurial companies come up short.”
According to LeBeau, what is most important is really knowing your strengths as a firm. “The business has changed on the office side and has gotten a lot more institutional. The cost and size of the deals have gotten so much larger.”
He noted that “Recognizing where there are good opportunities is key…Not just going to an auction, where you are paying full price.” He said to look at things you can do with a property to lower expenses, like with utilities, energy management systems and repositioning. “A lot of buyers just focus on a hot rental market and if they can raise rents, but really understanding what the market wants there, and if you can differentiate yourself helps differentiate your firm from others. Think outside of the box to create value.”
At the end of the day, people are looking for value, LeBeau continued.
Panelist Kaitlin Arduino, EVP and partner of Murphy Development Co., said that in the firm's last acquisition in Otay Mesa, CA, just near the border, it was a win for them because many others don't want to be there because of the cyclical nature there. “Because we are experts in the industrial market in San Diego, it was a natural fit for us.”
In terms of how Murphy Development differentiates themselves, she noted that there aren't many small developers in San Diego, and having great relationships with the city officials and consultants helps in addition to having a strong track record. “That is something we are proud of that differentiates us.”
Arduino also said her firm likes to have plans on the shelf. “For industrial buildings, they can take six to eight months to develop so we like to have the plans and permits ready so we can put them up quickly.”
She continued that being prepared in that way has helped them win the business. Redevelopment is also a place Arduino sees opportunity going forward.
Keep checking back with GlobeSt.com this week for more coverage from the MBA's CREF/Multifamily Housing Convention and Expo 2017.
SAN DIEGO—During the borrower/developer panel at MBA's CREF/Multifamily Housing Convention and Expo 2017, Steven Kenny, SVP, CREB East Executive,
“When you go and buy real estate, you need to have a plan and the capital going in there and really understand how much everything is going to cost,” said panelist Paul LeBeau, principal and CFO of Bollert LeBeau Commercial Real Estate. “You really better make sure you are well capitalized and can execute your business plan and that is where a lot of entrepreneurial companies come up short.”
According to LeBeau, what is most important is really knowing your strengths as a firm. “The business has changed on the office side and has gotten a lot more institutional. The cost and size of the deals have gotten so much larger.”
He noted that “Recognizing where there are good opportunities is key…Not just going to an auction, where you are paying full price.” He said to look at things you can do with a property to lower expenses, like with utilities, energy management systems and repositioning. “A lot of buyers just focus on a hot rental market and if they can raise rents, but really understanding what the market wants there, and if you can differentiate yourself helps differentiate your firm from others. Think outside of the box to create value.”
At the end of the day, people are looking for value, LeBeau continued.
Panelist Kaitlin Arduino, EVP and partner of Murphy Development Co., said that in the firm's last acquisition in Otay Mesa, CA, just near the border, it was a win for them because many others don't want to be there because of the cyclical nature there. “Because we are experts in the industrial market in San Diego, it was a natural fit for us.”
In terms of how Murphy Development differentiates themselves, she noted that there aren't many small developers in San Diego, and having great relationships with the city officials and consultants helps in addition to having a strong track record. “That is something we are proud of that differentiates us.”
Arduino also said her firm likes to have plans on the shelf. “For industrial buildings, they can take six to eight months to develop so we like to have the plans and permits ready so we can put them up quickly.”
She continued that being prepared in that way has helped them win the business. Redevelopment is also a place Arduino sees opportunity going forward.
Keep checking back with GlobeSt.com this week for more coverage from the MBA's CREF/Multifamily Housing Convention and Expo 2017.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
