LOS ANGELES—Newman Garrison + Partners recently revealed that, as of this year, the firm has patented their New Block concept for urban developers nationwide. The architectural concept was created and patent by NG+P to address challenges faced by developers, landowners, financial institutions, and municipalities who primarily build on smaller urban sites. GlobeSt.com took a moment to chat with the firm's Kevin Newman, chairman and CEO, about the new concept and its advantages.
GlobeSt.com: What are some of the challenges developers are finding in urban areas?
Kevin Newman: Especially as it relates to DTLA, measures such as JJJ and the upcoming linkage fees that will be applied to new developments to address the need for funding affordable housing, adds additional costs to the overall development budgets. This along with ever rising construction and land costs are creating obstacles to build and develop market rate multi-family housing in general. In some areas throughout Southern California, the rental markets have become a bit saturated as it relates to high-end luxury apartments. Most of our clients are now looking at designing more cost effective buildings, being more disciplined as to where we add the bling, but making sure that the amenities and common areas create a socially oriented lifestyle for the residence.
GlobeSt.com: What are other strategies urban developers are using to be successful in these markets?
Newman: Based on conversations I'm having with developers, the biggest challenge are the costs associated with construction, and the leveling off of rents in certain markets. The cost of construction and the cost of the land is currently exceeding what rents can be attained. Not everyone can be building in areas where the rents are exceeding 4.00 per ft, to keep up with the high cost of development. Rents that are say in the 1.85 -3.00 per/ft range are challenging in our current climate due to rising development costs.
GlobeSt.com: What else should our readers know about your firm?
Newman: As part of the firm's long term goals, they are continuing to extend their reach to the East Coast, namely the New York/New Jersey metropolitan area and the Denver markets. They see an opportunity to promote the firm's design capabilities in markets which are diverse, challenging yet inspiring. The firm envisions a continual national expansion by working with developers who have multiple assets across the nation particularly in Colorado and along the East Coast. The firm continues to work towards growing and diversifying their portfolio to include more innovative projects that include hospitality and creative office.
Lastly, the firm is excited to be a part of the revitalization of downtown Los Angeles, by designing new up and coming developments that embrace the cultural diversity and maintain a strong sense of community. Currently the firm is engaged in a high profile development in Chinatown adjacent to the Los Angeles Historic State Park along with several notable projects in Burbank, Warner Center and Playa Vista.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, 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.
