Building the Capital Stack with Trisha Connolly, Managing Director of Alpha Capital CRE

December 04, 2019 by Phil Coover

On this episode, Alpha Capital CRE Managing Director Trisha Connolly joins Phil to discuss building the capital stacks, money, and the various types of financing and equity investments available. Alpha Capital CRE started in 2008 as a hedge fund placement agent firm raising institutional capital for fund to funds. In 2010, Alpha Capital transitioned to a capital markets platform. Since its inception, the company has changed its name, institutionalized its platform, and grown its team. They optimize solutions for capital, whether it’s debt or equity, for transactions across the country.

Phil and Trisha start by discussing what goes into a capital stack. They touch on what a bridge lender may provide in commercial real estate, why the 30-year mortgage is often an afterthought in this space, and the types of debt with flexibility in a future sale. Phil also asks Trisha about the influence of local banks in her work, as well as her depth of relationships in the national lending community. Phil and Trisha close out the interview by going into the details of creating a development deal, subordinate financing, and the concept of preferred equity.

Trisha Connolly is a Managing Director at Alpha Capital CRE and serves as a partner on the equity and debt placement team nationwide. She specializes in commercial real estate financing with over 11 years of experience including loan restructuring, term financing, syndicated credit facilitating, construction financing, acquisition financing, advisory and joint venture equity or programmatic equity. She has advised on capital markets financing transactions exceeding $2 billion. Trisha specializes in structured financings and continues to work on permanent and floating rate executions. Prior to joining Alpha, Trisha spent four years managing Cushman and Wakefield's Equity, Debt & Structured Finance team. Preceding C&W, Trisha spent more than five years at General Growth Properties (GGP) within their Capital Markets team, focusing primarily on workouts, refinances and development financing.

Learn more at: www.alphacapitalcre.com

Dee Brown, CEO of the P3 Group, Inc. – Changing 60,000 Pound Anchors on Nuclear Submarines – and Other Public-Private Partnership Development

September 24, 2019 by Phil Coover

Phil is joined in this episode by Dee Brown, CEO of The P3 Group, Inc., a commercial real estate, boutique development and consulting firm that specializes in business and community development through the creation of P3's: public private partnerships. Dee explains that The P3 Group’s projects are atypical, meaning that they generally take on modestly sized building projects, which most P3 companies shy away from—due to the complexity of the deals and efforts needed to coordinate these types of municipal projects. For instance, Dee’s first public private project was changing 60,000 pound anchors on a nuclear submarine.

Phil and Dee discuss the benefits of a company like The P3 Group, with its multi-faceted background of team members that include legal, real estate and construction experts. Dee goes on to discuss an exciting project that The P3 Group recently received an award for – an 80,000 sq. ft. regional public safety facility for police, EMS, and other governmental emergency responders. It will be designed to withstand extreme inclement weather, no-power, and no water! Tune in to learn more.

As Chief Executive Officer Dee Brown has a 26 year record of real estate sales, development, management, and success overseeing all phases of multi-million dollar construction, infrastructure, water/sewer, and environmental projects for government and private-sector clients. His experience includes managing personnel of up to 200 people in highway/bridge improvements, asbestos abatement, real estate sales and development, solar installations, and a variety of other projects. Dee is backed by strong credentials and a proven history of on-time, on-budget, and high-quality project completions.

Learn more about the P3 Group here: https://thep3groupinc.com

Matt Mason of Conway MacKenzie – Store Closures, Distressed Retail Real Estate, and Receiverships

August 08, 2019 by Phil Coover

On today’s episode, Phil is joined by Matthew (Matt) Mason, a Managing Director at Conway MacKenzie, to talk store closures in 2019, challenges in retail real estate, and receiverships. Matt leads the Conway MacKenzie real estate vertical, has been a Court Appointed Receiver for over 200 properties, managed over 31.5 million square feet, and over $1 billion portfolio of retail, office, and industrial properties. With that experience, Matt provides strategic insight to large distressed retail and office assets for borrowers and lenders. Matt and Phil discuss current challenges in the commercial retail market, the headwinds of massive store closures in 2019, why those challenges are taking place and how to navigate them. Matt explains lessons learned from the 2008 crash, what is different about the current challenges in the market, and how to move forward. He goes on to discuss that many retailers are either struggling or gaining success, with very few in-between. Some discount retailers such as Target have gained success post market-crash, because they are now appealing to a market of buyers by producing a better quality discounted product. Phil and Matt go on to discuss that on the flip side, consumers are now buying products largely online, a method of consumerism that is greatly affecting the commercial retail market, leading to more disruption, store closures, and more experience driven retail.

Find out more about Matt and Conway MacKenzie here.

Check out the referenced article written on this topic by Matt and his colleague Lauren Leech.

DISCLAIMER – No information contained in this Podcast or on this Website shall constitute financial, investment, legal and/or other professional advice and that no professional relationship of any kind is created between you and podcast host, the guests or Clark Hill PLC. You are urged to speak with your financial, investment, or legal advisors before making any investment or legal decisions.

Co-Living With Susan Tjarksen of Cushman and Wakefield

July 16, 2019 by Phil Coover

Joining Phil on this episode is Susan Tjarksen, Managing Director at Cushman and Wakefield. Susan has over 30 years of experience in real estate, in both the public and private sectors. She is a leading expert on co-living and joins us to discuss how buildings are being developed and adapted for the Co-living model to generate more income per square foot while at the same time serving marketplace demands. Co-living is a community style of living where common spaces are shared, and spaces such as bedrooms are private, with each tenant responsible only for their share (rather than everyone in one unit being jointly and severally liable). Susan and Phil discuss why co-living, which has existed for quite some time in various forms, is regaining popularity among the younger professional demographic: millennials. Susan goes in depth about what is attracting more and more people to co-living in the gateway markets. One of the main reasons is affordability, because rent is rapidly expanding in these markets, and the other is convenience. This creates an opportunity for developers and investors. According to a survey by the National Apartment Association, millennials chose to live close to work and travel for entertainment, which makes co-living all the more attractive for young professionals seeking the ideal living situation.

You can contact Susan Tjarksen and learn more about Cushman and Wakefield here.

You can download the coliving report here.

Finding Space for the Future of Your Business with Jon Milonas of CBRE

May 30, 2019 by Phil Coover

In this episode, Phil is joined by Jon Milonas, a Senior Vice President in CBRE’s Tenant Representation Group, the largest commercial real estate firm in the world. Jon’s Chicago team focuses on helping occupiers of real estate to align their business strategies with their real estate, by identifying the needs and challenges of an organization and couple those needs with finding the right office space. Jon discusses his approach to clients by asking where businesses see themselves in 5-10 years, and how to help them achieve their vision by finding an appropriate office space for their current and future business. Jon elaborates by mentioning the two most important questions that his clients should be answering when solving issues from both a challenge and a future goal perspective: (1) what are their deficiency drivers; and (2) what are their success factors? Jon stresses the importance of these questions and what it will mean for a business’ future. Jon authored the book: “Kicking Off Your Office Lease: 6 Proven Steps to Develop a Thorough Strategy and Avoid Costly Mistakes,” which helps to prepare businesses in starting a conversation with their executives and bringing in the right people to run a project. Jon emphasizes that so much of what business relationships consist of is confidence, and if you have confidence in your relationships, you can strengthen them and move forward toward reaching your real estate goals.

Jon Milonas is a Senior Vice President in CBRE’s Tenant Representation Group in the Chicago Region. Jon focuses his practice on developing comprehensive and strategic real estate plans, structuring and negotiating office leases, and assisting with the renewal, relocation and sublease/buyout of leased properties. During his career, Jon has completed over two hundred fifty transactions on behalf of local Chicago based organizations as well as national and global organizations such as Willis Towers Watson, PwC, McGraw-Hill Companies, Morningstar, Hewlett Packard, Prudential, and Société Générale. Jon’s team has successfully transacted across a wide array of industries, with a focus in the legal, financial services, insurance, technology and consulting sectors.

Prior to joining CBRE in 2007, Jon worked as an International Representative of the YMCA of the USA, in Valparaiso, Chile. In this role, he was the Spanish-English oral and written translator and participated as a member of the Chilean International Committee facilitating international leadership conferences.

View more on Jon and CBRE here.

Large Scale Development and Geographic Expansion with Matt Katsaros of CA Ventures

May 06, 2019 by Phil Coover

Joining Phil Coover on this episode of Real Estate for Breakfast is Matt Katsaros, SVP – Acquisitions of CA Ventures’ subsidiary—CA Residential. CA Ventures is one of the fastest growing real estate companies in the Midwest, and does about $1.5 Billion in real estate development every year. Matt and Phil discuss the history of CA Ventures from its initial niche in student housing to a current portfolio of multiple asset classes and real estate services. Matt shares trends in residential real estate development and investment markets across the U.S.

Founded in 2004, CA Ventures is an international real estate investment management company headquartered in Chicago, IL, with offices in Denver, CO, and London. The firm found initial success focusing on off-campus student housing and has delivered almost 50,000 units (or beds) of student accommodation across 40 major university markets. Today the portfolio is diverse spanning multiple asset classes including student, senior and other residential real estate, as well as industrial and office markets.

You can find out more about CA Ventures here: https://ca-ventures.com/

Collete English Dixon of the Marshall Bennett Institute of Real Estate

February 25, 2019 by Phil Coover

Visit the Marshall Bennett Institute of Real Estate website here.

In this episode, Phil is joined by Collete English Dixon, Executive Director of the Marshall Bennett Institute of Real Estate and Operational Chair of Real Estate in the Heller College of Business, at Roosevelt University, Chicago, IL. The dynamic Marshall Bennett Institute of Real Estate sets itself apart from other educational institutions in that it’s deeply intertwined with the Chicago Real Estate community, by helping those in the community to feed off of and learn from one another. Collete and Phil discuss how valuable networking and educational opportunities within the Marshall Bennett Institute of Real Estate can help further the careers of professionals and enable students to grow in the Real Estate community. Collete also discusses the academic offerings of the Institute such as the Masters in Real Estate (MSRE) program, and the creation of the Advisory Board, which consists of industry leaders who share their knowledge with students, providing a connection with those who are moving the Real Estate industry forward.

Collete English Dixon has more than 30 years in investment management with a focus on commercial real estate investing. Prior to her current role at Roosevelt University, she was Executive Director - Transactions for PGIM Real Estate (formerly known as PREI), a business unit of Prudential Financial, and co-leader of PREI’s national investment dispositions program. In that role, she oversaw the sale of more than 200 investment properties located throughout the US, with a total value of more than $8.7 Billion, on behalf of PREI’s investment funds. Prior to her role in dispositions, Collete was responsible for sourcing more than $2.75B of wholly-owned and joint venture real estate investment opportunities in the Midwestern markets covering all property types, including office, multi-family, hotel, industrial and retail properties. Collete’s experience also includes property development and asset management.

She is a Past President of CREW Network, a Past Chair of the CREW Network Foundation, a Past President of CREW Chicago, a full member of ULI and the 2016-2019 Chair of the UDMU Council/Purple. She is a member of the Board of Directors and Chair of the Investment Committee for the Housing Partnership Equity Trust, a member of the Board of Directors for BDREX and a member of its Audit and Governance committees, a board member of the Chicago Forum of the International Women’s Forum, and a member of the Board of Directors of the Oak Park River Forest Food Pantry.

Episode 34 – Kevin Bupp, CEO of Sunrise Capital

January 28, 2019 by Phil Coover

On this episode, Phil Coover is joined by Kevin Bupp, CEO of Sunrise Capital Investors and host of the popular podcast “Real Estate Investing for Cash Flow”, on which Phil was a guest in November. Florida-based with a national presence, Sunrise Capital has developed an investment niche in mobile home parks. Kevin and Phil discuss what makes this asset class different from other multi-family commercial real estate and the unique opportunity it presents. Kevin also talks about making the transition from self-funded investment to finding partners and raising capital.

Kevin Bupp is a real estate and marketing professional with extensive business development experience who holds a sincere passion for helping investors achieve above average and safe returns. He has a successful track record of identifying and re-positioning multi-family value-add properties. Kevin’s “Real Estate Investing for Cash Flow” podcast is available on iTunes.

Episode 33 – Retail is Alive! Innovations in Retail Real Estate with Marget Graham and Jaime Bertsche of Mid-America Real Estate Group

December 11, 2018 by Phil Coover

Joining Phil this episode are Marget Graham and Jaime Bertsche of Mid-America Real Estate Group, the leading full-service retail real estate organization in the Midwest. During this holiday time, we always think of retail. Over the last few years, retail real estate has been beaten down in the markets and in the press, as it went through a tumultuous time. Marget and Jaime, key aspects of Mid-America’s third party landlord brokerage division, share the ways that large retail properties are being used in exciting new ways. Malls and other shopping centers are increasingly converting to mixed-use developments incorporating entertainment, residential and medical components and utilizing common spaces to attract new tenants and customers. Some shopping centers even have swim schools where retail used to be!

Marget Graham is a Principal/Vice President responsible for co-managing new business development and leasing efforts in the Mid-America Asset Management portfolio. She has been with Mid-America Asset Management since 2000 and has specialized solely in Landlord representation. Jaime Bertsche, Vice President, has been with Mid-America Asset Management since 2004, also specializing solely in Landlord representation. Marget and Jaime have extensive experience in an array of product types including mixed-use developments, specialty leasing of lifestyle centers, ground-up projects, power centers, traditional grocery anchored centers and urban retail properties. Through their work in each respective area, they have formed strong relationships with local, regional and national retailers.

Learn more about Marget here.

Learn more about Jaime here.

Learn more about Mid-America Real Estate Group here: http://www.midamericagrp.com/

Episode 31 – Big Data Investments - Todd Stofflet of KIG CRE

September 24, 2018 by Phil Coover

In this episode, Phil sits down with Todd Stofflet, Managing Partner of real estate investment brokerage firm KIG CRE. Investing in big data and using that data to drive better investments, KIG is using predictive analytics in new ways.

Todd Stofflet, Managing Partner, KIG CRE

Chicago-based and Mid-West focused, KIG CRE represents some of the most prominent institutional investors and developers in the multifamily real estate industry. Phil and Todd discuss the firm’s innovative use of data-driven intelligence to make investment decisions. Using open source data including occupancy figures, rental rates and demographic trends, KIG provides investors with valuable analytics. Phil and Todd also explore KIG’s recent “State of the Market” report and current trends in the regional real estate industry.

Visit KIG CRE’s website for more information on the company and their reporting: http://www.kigcre.com/