Communal amenities at the 604-bed student housing complex will include ground floor retail space, outdoor courtyards, pools, private study lounges, a clubroom and a fitness center.

GAINESVILLE, FLA. A joint venture between 908 Group, Scannell Properties and Atlantic American Partners has received $65 million in construction financing for an unnamed development of a 604-bed student housing community near the University of Florida in Gainesville. First Merchants Bank, First Financial Bank and Old National Bank provided the construction loan for the community. TSB Capital Advisors acted as special advisor in the financing. The project will offer a mix of one-, two-, three-, four- and five-bedroom units with bed-to-bath parity. Communal amenities will include ground-floor retail space, outdoor courtyards, pools, private study lounges, a clubroom and a fitness center. The community is scheduled for completion in fall 2022. Humphreys & Partners designed the asset, and Arco-Murray is the general contractor. Houston-based multifamily operator Asset Living will manage the community upon completion.

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Joint Venture Receives $65M in Construction Financing for Student Housing Community Near University of Florida - REBusinessOnline

First it was the Cornerstone building that changed the landscape of downtown Fenton in 2014. Then it was the Horizon Building that brought more retail space and parking to the corner of N. LeRoy Street and Silver Lake Road in 2018.

Now, residents who visit downtown are watching the newest development on the corner of W. Caroline Street and S. LeRoy Street, the 111 Building.

Ghassan Saab, project manager of the 111 Building, said construction is going great.

Since weve picked back up, weve been making great progress, he said. The building is almost completely enclosed. Once thats done, well begin work on the apartments and common areas.

They were forced to halt work on the four-story building due to the COVID-19 pandemic and subsequent stay-at-home orders in March. Construction resumed in May.

The shutdown, of course, threw a wrench in everyones plans. We had to re-work the schedule and make other job site modifications, but otherwise work on the site is business as usual, he said.

The projected completion date is March 2021. Saab said as long as the building is enclosed, they can work on the inside throughout the winter, and then be ready to open in March.

As of today (Monday, Aug. 31), we just need to install the first-floor windows and doors and well be completely enclosed and ready for the colder weather, he said.

Corlin Builders is the developer for the project, and Sorenson Gross is the general contractor. Once completed, there will be approximately 40 parking spots in the lot for public use, minus the 14 used by residents.

The building will be four stories and 10,000 square feet per floor. Everything in this building, including office, retail and the 14 apartments on the third and fourth floors will be leased.

The pandemic hurt restaurants and retail spaces when they were forced to close. When asked what he thinks about Fenton closing certain streets at certain times on Thursdays and Fridays to allow businesses to use that space for customers, Saab said, I think its a great idea. Restaurant floor space is hard to come by and outdoor space is premium, so I love seeing the restaurants take advantage.

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Work progressing on 111 Building - Fenton Tri County Times

At least nine large development projects are underway in downtown that include condos, apartments, and restaurants.

KNOXVILLE, Tenn The COVID-19 pandemic isn't stopping the further development of downtown Knoxville.

Right now, more than $180 million dollars is being invested in new condominiums, apartments, restaurants, offices and hotel renovations.

The city expects it to lead to another thousand people living in downtown by next summer, and developers don't plan to slow down.

Were very bullish about downtown. Were not looking at short-term development were looking at 20 to 50 years. So if theres a little blip in the economy, thats OK, well continue on about our business, said Tim Hill, co-owner of Hatcher-Hill Properties, which is managing two current construction projects.

Tax incentives are helping some of the developers transform downtown.

Development projects face different sets of circumstances, said Deputy to the Mayor Stephanie Welch, the Citys Chief Economic and Community Development Officer. Some, like the mixed-use development under construction at the former state Supreme Court site, are so challenging, its almost impossible to envision them happening without some help from the City to close the financing gap and make these projects viable."

The city has details on nine projects currently underway in downtown Knoxville here. They include:

The Overlookwill be a six-story condominium building with great views of the Tennessee River and Henley Bridge. It's being built on what was an empty gravel lot on Hill Ave. and is expected to open later this year.

The old State Supreme Court site will be transformed into a mixed-use development including a 237-unit apartment community, short-term rentals, and some retail. It's expected to open in early 2022.

The building that housed the old NV and Bowery nightclubs in the Old City at 125 E. Jackson Ave.will be transformed into two restaurants and two office suites and will also feature a courtyard/entertainment patio.

Stockyard Lofts will be a six-story, 152-unit apartment building on Willow Ave. in the Old City. It will also have 5,000 square feet of retail space at ground level.

The City House Town Homes on Vine Ave. is nearing completion. It will add seven 3,000 square foot condos to downtown living options. Each one includes a rooftop deck with amazing views of the city.

In addition to these, Smokies owner Randy Boydis in conversations with city leaders about possibly bringing baseball back to open. He owns close to a dozen acres near downtown. The latest plans describe a mixed-use development around the stadium with retail, restaurants and living spaces built in cities like Atlanta and Chicago.

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$180M in construction will bring more residents & visitors to downtown Knoxville - WBIR.com

Potential ties to corruption involving elected officials and real estate developers in Los Angeles reach beyond the alleged criminal enterprise in Council District 14.

The L.A. Times reported that Councilman Curren Price helped Ara Tavitian and his development firm PHR LA Mart get approval for a $1.2 billion skyscraper redevelopment in 2016, including the addition of three massive digital billboards, despite opposition from the City Planning Commission (CPC). Then three months later, companies run by Tavitian injected $75,000 into a political action committee to help Prices reelection campaign.

Such contributions are legal so long as they are not made in exchange for an official action. But the practice has hindered public trust in the citys approval process, and Council President Nury Martinez said restoring the publics trust is job one for the city dealing with the fallout from a federal investigation that has so far led to a guilty plea from former Councilman Mitch Englander and the arrest of Councilman Jose Huizar, who is facing 34 felony counts for allegedly leading pay-for-play schemes with developers.

Against CPCs recommendations, Price reportedly pushed to allow the digital signs to be twice as big, operate later into the night, and change images much quicker. Just last week, Planning Commissioner David Ambroz told Commercial Observer that the city should remove part of the city charter that allows council members to veto stipulations for entitlements added by CPC.

Many of the projects that have been brought to light by the investigations have to do with projects where [that part of the charter] was exercised, Ambroz said.

The developer of the $1.2 billion skyscraper, called the Broadway Square Los Angeles, or the Reef, is one of those that is allegedly involved in Huizars web of bribes and extortion, according to the Times. But the indictment against Huizar does not include Price or his involvement with the Reef project, and neither Price nor Tavitian have been charged or arrested.

Construction on the complex has not started, but the digital signs were added to an existing 12-story building on the site. The three billboards wrap around the sides of the building, measuring about 55 feet by 245 feet, according to the Times. The project at 1900 South Broadway also calls for the addition of 1,444 units of housing, a 208-room hotel, a grocery store and retail space. Its located two blocks from the Grand and Washington Metro Blue Line stop.

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Developer Donated to Election Fund After LA Councilman Helped With Digital Billboards - Commercial Observer

A six-story apartment building is being proposed for the northeast corner of South Fifth and West Mineral streets.(Photo: New Land Enterprises LLP)

Two new apartment developments, totaling more than 200 units, are being proposed for a reconstructed stretch of South Fifth Street in Walker's Point.

New Land Enterprises wants to develop a six-story, 68-unit apartment building on a vacant lot at 924-934 S. Fifth St., according to plans filed with the Milwaukee Board of Zoning Appeals.

Also, Mandel Group Inc. has preliminary plans to develop a six-story, 144-unit building on a site from 603 S. Fifth St. through 645 S. Fifth St.

Both would be the latest in a series of developments to occur on a stretch of South Fifth Street, between West Virginia and West Scott streets, that was reconstructed in 2016.

That project included wider sidewalks and bike racks which havehelped such developments as Fuel Cafe's second location,630 S. Fifth St., andMobCraft's brewery and taproom,505 S. Fifth St.

Also, the National Block development, at the southeast corner of South Fifth Street and West National Avenue, features 12 apartments on the upper two floors of a renovated three-story building, with plans for an events venue on the first floor.

Such street projects, which include narrowing traffic lanes to provide more space for bikes, are part of Milwaukee's Complete Streets policy approved in 2018 by the Common Council and Mayor Tom Barrett.

Mandel's plans call for demolishing the former La Fuente restaurant, a one-story warehouse and six rental units, said Emily Cialdini, senior development associate.

The building would include underground parking, as well as parking on the first floor, she said, with the apartments on floors one through six.

The $30 million development, which has not yet been named, would include a penthouse-style clubhouse, It would include larger units, but most would be studios and one-bedroom, Cialdini said.

"It's really a young neighborhood," she said.

Mandel has tentative plans to begin construction in spring 2021, Cialdini said.

It would take about 15 to 18 months to complete with firm executives confident strong demand will continue for higher-end apartments beyond the current economic turmoil tied to the COVID-19 pandemic.

MandelGroup believes the site's current zoning allows the project to be built without Plan Commission review, Cialdini said.

It filed its proposal with Department of City Development officials to confirm that is correct. A departmentspokesman couldn't be immediately reached Monday for comment.

New Land's project, known as Element apartments, would include 56 indoor parking spaces on the first and second floors, as well as a 1,200 square feet of first-floor retail space.

Other amenities would include a fitness room, outdoor patio and indoor bicycle storage space, according to the proposal filed with the zoning board.

New Land is seeking a variance to provide a taller building with more density at the site than allowed by its current zoning.

The 17,500-square-foot lot now allows for 21 units less than one-third of what Elements would provide.

Also, the parcel's building height limit is 60 feet. New Land is proposing a 69-foot, six-inch building with a two-foot parapet.

The zoning board's next meeting is Sept. 10.

In its board filing, New Land says the proposed building density and height increases would be consistent with taller buildings, and more residential density, developed in the neighborhood in recent years.

Those projects have occurred as Walker's Point continues to see fewer industrial uses and more housing.

The filing cites two nearby examples, both developed by New Land: the 120-unit Trio apartments, which was completed in 2017at 1020 S. Second St., and the 48-unit Quartet, which opened this spring at 1001 S. Second St. and is already full.

The Element project would not create congestion because its parkingwould be accommodated within the building in excess of zoning requirements, the filing said.

Also, the additional residents would provide more customers for neighborhood businesses, according to the proposal.

Tom Daykin can be emailed at tdaykin@jrn.comand followed on Instagram, Twitter and Facebook.

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Two apartment developments, totaling more than than 200 units, are proposed for S. 5th Street in Walker's Point - Milwaukee Journal Sentinel

Google announced on Tuesday a proposal to build more than a million square feet of offices and up to 1,850 new homes in the East Whisman area of Mountain View, creating an entire neighborhood in the center of a sprawling office park.

Dubbed the Middlefield Park Master Plan, the local tech giant is seeking to transform 40 acres centered near the Middlefield VTA light rail station into a mixed-use hub that ups the density on office development while making room for thousands of future residents. East Whisman was rezoned late last year to allow for housing and higher buildings, clearing the way for Google's complete redesign of the area.

Google is proposing to build roughly 1.3 million square feet of offices across five new buildings on the northern side of the village, located along Ellis Street, Logue Avenue and Clyde Avenue. To the south will be six residential buildings totaling anywhere from 1,675 to 1,850 new homes, likely a combination of ownership and rental units. Unlike the mostly single-story offices that dominate the site today, building heights are now permitted to exceed 95 feet.

More than half of Google's 40-acre property is dominated by surface street parking, which will be replaced by two parking garages. The extra space means that more than 12 acres of the master plan can be devoted to parks and open space, largely consolidated in a centrally located public park and along the light rail tracks.

Though the project would result in as much as 650,000 square feet of net new office space, the primary objective is to construct at least 1,675 new homes for the area, said Google real estate director Michael Tymoff. The transit-oriented development will be led by the housing component, he said, marking the company's first chance to deliver residential development at scale in the city.

"We really see it as taking another step forward with our housing commitment," Tymoff said.

Last year, Google CEO Sundar Pichai announced that the company would be responding to the Bay Area housing crisis by investing $1 billion to help build a minimum of 20,000 new homes. The large majority of that commitment, $750 million, would come in the form of Google converting its commercial land holdings into residential uses, which is part of the rationale behind the Middlefield Park design.

Though Google's recently approved projects are all office-only tech parks -- including Charleston East, Bay View and Landings -- the company has pivoted in recent years toward large, mixed-use development that aims to put offices next door to thousands of homes. Along with East Whisman, Google is proposing to build a mixed-use village with up to 5,900 homes in its San Jose Downtown West plan. And Mountain View's North Bayshore tech park, currently the home of most of Google's office growth, could soon have 5,700 new homes.

The proposal's mix of rental and for-sale housing units are predominantly in the form of stacked flats that can maximize the number of residential units in the area, Tymoff said. The project would include 20% affordable housing units, which, depending on how many units are built, would create between 335 and 370 deed-restricted units for low-income households.

Google will be taking a hands-off approach to the housing at Middlefield Park, however, leaving the design and construction to another company, Lendlease. In a statement, Lendlease Project Director Andrew Chappell said the housing will be focused on creating "people-centered" communities that benefit both residents and the community at large.

"We are eager to move forward in collaboration with Google, delivering much needed housing in the Bay Area," Chappell said. "We are confident that we can turn the Middlefield Park master plan into a reality."

Google's proposal is in the early stages of the development, and many details have yet to be fleshed out. Tymoff said the individual buildings have yet to be designed, but will predominantly be low- to mid-rise buildings up to 12 stories tall. One factor keeping building heights down is Moffett Field, with the Federal Aviation Administration capping the project's height limits at 120 feet, he said.

In November, the city adopted the blueprint for future development in East Whisman through the East Whisman Precise Plan, a guiding document that opened the door for higher density and housing in an area considered ripe for redevelopment. The plan allowed for more office development, but only on the condition that it also came with a commensurate increase in housing.

The jobs-housing balance requires developers to preserve a ratio of 3 housing units for every 1,000 square feet of office space that gets built in East Whisman, leaving it up to developers to negotiate deals with one another or dedicate land for future homes.

In Google's case, no such deal-making will be needed. Tymoff said the proposal's ratio of jobs and housing within the Middlefield Park Master Plan precisely matches what the city requires.

"The amount of net new office would go up or down proportionately so that we're always in compliance," he said.

The project also won't have to pitch in any park fees for shortchanging the city on park space, which is often the case in newly proposed housing projects. The 12 acres of primarily public open space satisfies the city's park requirements.

Outside of housing and offices, Google's proposal calls for 30,000 square feet of retail space as well as 20,000 square feet of flexible space for "civic" uses and events. Tymoff said those could be for recreational fields, an aquatic center or space for events like birthday parties and community meetings. The hope is to create a neighborhood that, on its own, is mostly self sufficient.

"It's certainly one of the ideas in the Precise Plan to create a mixed-use neighborhood where a lot of the needs and services are within walking distance from where you live and work," Tymoff said.

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Google unveils massive mixed-use housing and office village in East Whisman - Mountain View Voice

FORT LAUDERDALE, FL - The City of Fort Lauderdale, brimming with energy and culture, has blossomed into one of South Floridas most bustling, live-work-play destinations in recent years. Known for its famed beaches, dining, retail and eclectic arts scene, those longing for connectivity and community eagerly awaited the debut of CURV; an apartment community encompassing a vitality that parallels its coveted locale. Marking its completion, the deco-inspired multifamily project received its Temporary Certificate of Occupancy (TCO) on August 26th from the City of Fort Lauderdale.

The 243-unit CURV launched virtual leasing and will welcome its first residents next month. The project is developed by Ram Realty Advisors, which specializes in the acquisition and development of multifamily, retail, and mixed-use properties in select high-growth markets throughout the Southeast. CURVs leasing and property management are led by Bozzuto, a real estate company known for its experience in delivering superior hospitality and professionalism.

CURV is designed to shape the way residents live through a harmony of modern conveniences, unparalleled luxuries, and nearby urban adventures. After 24-months of construction, the eight-story property will introduce its stylish residences and diverse amenity offerings with an approachable, yet sophisticated appeal. Light, bright, modern, and unique, CURVs architecture brilliantly reflects a continuous flow of energy emulating the citys spirited nature. Designed by Roger Fry Architects, the propertys faade draws inspiration from South Floridas distinct Art Deco style, boasting a sleek appearance with geometric forms synonymous with the early 20th-century art movement. Breathing life into its surroundings, CURV also incorporates various lush green spaces throughout.

We are excited to unveil CURVs contemporary collection of residences in vibrant Fort Lauderdale and initiate the leasing process, said Kerry-Ann Wilson, Vice President of Development for Ram Realty Advisors in Florida. Designed to fit the lifestyle flow of todays residents, who desire to have it all, it is our anticipation that this property will serve as a comforting respite and welcomed addition in the community.

When it is time to change direction and unwind, residents can find their center within the distinctive, on-site common areas. CURV dwellers will bask in the glow of South Floridas sun at the resort-inspired pool, while indulging in some R&R in private cabanas. Dining al fresco is a breeze with access to a summer kitchen with gas grills, a gazebo, and an outdoor TV. Workout enthusiasts can test their strength at the state-of-the-art fitness center equipped with exclusive Mirror on-demand workouts and yoga studio. Pet lovers can pamper their furry companions at the grooming salon. And, to streamline the experience, CURV offers LuxerOne package lockers with cold storage and valet dry-cleaning, designated resident-only parking, and electric car charging stations.

With 16 uniquely designed studio, one-, two- and three-bedroom floorplans, CURVs dwellings range from 748 to 1,603 square feet. Refined finishes include elegant light fixtures, glitzing quartz countertops, subway tile backsplashes, stainless-steel appliances by GE, full-size washer and dryers, spacious walk-in-closets, expansive balconies, and secure keyless entry. Select units will also feature intimate den spaces, spa-style soaking tubs in the bathroom, and private terraces to maximize natural light.

For heightened ease during the move-in process, CURV keeps residents health of top-of-mind by implementing the Welcome Home Commitment. An initiative led by Bozzuto, this program ensures apartments have been cleaned, inspected, and sealed prior to move-in, with a 30-day guarantee.

Located at 410 SE 16th Court, CURV neighbors the lively epicenter of Downtown Fort Lauderdale with proximity to pristine beaches, marinas, and the city centers trending restaurants and retailers. With immediate access to major highways and thoroughfares, such as I-95 and South Federal Highway, and Port Everglades, the Broward Health Campus, and Fort Lauderdale/Hollywood International Airport, CURV provides its residents with the connectivity they seek.

For more information about CURV and to schedule a virtual tour, please visit livecurv.comor call 833.400.8690.

ABOUT RAM: Ram Realty Advisors LLC acquires and develops multifamily, retail, and mixed-use properties in select high-growth markets throughout the Southeast. The investments are capitalized by Ram-sponsored discretionary private equity funds and institutional co-investment vehicles. Since 1996, Ram has deployed in excess of $3.2 billion of capital. Ram and its predecessor entities were founded in 1978. The Company is headquartered in Palm Beach Gardens, Florida, and has offices in Charlotte and Chapel Hill, North Carolina.

ABOUT BOZZUTO:The Bozzuto Group is an experience-focused real estate company distinguished by their innovative developments, dedicated customer service, and top-rated workplace culture. With award-winning expertise in homebuilding, and multifamily development, construction, and management, Bozzuto is devoted to delivering extraordinary experiences for those they serve.Since their founding in 1988, Bozzuto has developed, acquired, and built more than 50,000 homes and apartments. Celebrating 31 years of creating sanctuary for their residents, Bozzuto currently manages 75,000 apartments and 2.2 million square feet of retail space along the East Coast, Chicago, Boston, Miami, and the Northeast.

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The City of Fort Lauderdale Welcomes the Launch of 243-Unit Deco Inspired CURV Apartment Community to Its Coveted Locale - MultifamilyBiz.com

The Madison Plaza Apartments are on the rise in Kent, just under the large crane that shoots into the sky.

Crews are building a seven-story, 165-unit urban-style apartment building that will include five stories of residential units built atop a two-story parking garage and ground floor retail space, according to city documents. The complex is at 102 Madison Ave. N., between West Smith and West Meeker streets, just west of the Uplands Playfield Park and the Interurban Trail.

As proposed, the building is configured with entry points on three of the four frontage streets, with pedestrian-oriented entries and display windows along Madison Avenue and Meeker Street.

Pedestrian awnings, planters, benches and lighting are planned around all four sides of the building. Raised planter beds, benches, bike racks and trees located along the sidewalks will add utility, visual interest, privacy buffering between the residents and surrounding areas, and create a semi-public transition space between the building, sidewalks and adjacent streets and uses, according to city staff.

The approximately 300 square feet of retail space located at the southwest corner of the building will include a food and beverage use and will provide retail store frontage at Madison Avenue and Meeker Street. A two-story lobby is accessed from Madison Avenue via a main entrance featuring three entry doors, approximately 380 square feet of transparent glass windows, and contrasting wood siding material.

The building will also include an indoor fitness center, a game lounge and a 11,900-square-foot rooftop gathering and recreation space for use by residents of the building.

Construction started earlier this year and is scheduled to be done in summer 2021. Developer Imad Bahbah, a Kent architect, originally presented plans for the project to the city in 2016 with plans to open in 2018.

The Kent City Council granted the developer an eight-year multifamily tax exemption for the project in 2017. The developer still must pay taxes on the land value, but not on the building valuation. Mayor Dana Ralph signed the exemption in February 2018, and city staff issued a conditional certificate in May 2018 that is valid for three years and may be extended upon request by the developer, according to city staff.

Seattle developer Tarragon used the property tax break to build the Dwell at Kent Station Apartments, which opened in 2016. Auburn-based FNW Inc./Landmark Development Group received the exemption to build the 492-unit Ethos Apartments along West Meeker Street on the former city-owned Riverbend par 3 golf course. The first phase of the apartment complex has been built and the second phase is under construction.

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A construction crew member on Tuesday, Aug. 25, scrambles down the crane in place to build the Madison Plaza Apartments in Kent, 102 Madison Ave. N. STEVE HUNTER, Kent Reporter

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Madison Plaza Apartments on the rise in... - Kent Reporter

Vermont Business Magazine David GWhite, CRE, President, White + Burke Real Estate Advisors, today shared just-released information about important business disruptors the issues and trends impacting UScommercial and residential real estate. White is a member of The Counselors of Real Estate(CRE), the global professional association which annually announces The CRETop Ten Issues Affecting Real Estate, an update of market trends and conditions, which influence real estate opportunities and risks.

The number one issue, unsurprisingly, is the COVID-19 pandemic and the ways in which this will impact the real estate market.

In examining real estate markets, we must consider existing fragility, adaptability to new demands, and potential relevance to new markets. Demand will be defined by the extent to which this crisis leads us to abandon old habits and adopt new ones. We have seen this in the northeast in every sector from the already struggling retail to the variable office marketplace. And as the CREs point out, there are more questions than answers at the moment.

Real estate is a lagging indicator. With the economy expected to take a few years to recover from the effects of COVID-19, our industry will show ripples for a few more.

Economic renewal ranked second on The Counselors list, with the U.S. economy showing signs of decline prior to the COVID-19 pandemic. Significant segments of the economy remain debilitated. Leisure and hospitality, retail, air travel, and construction can expect slow and partial rebounds into 2022. Ironically, the healthcare industryespecially workers in lower-income jobsis facing an intense financial squeeze in the wake of the coronavirus. For these reasons and more, we all suspect this recession may take the W shape a dip to follow some initial recovery.

Capital market risk rounded out the top three issues of concern for The Counselors, as the last four months have presented not only real-time volatility of the capital markets, but also confirmed how quickly debt and equity capital liquidity can stop flowing when risk and returns are difficult to measure.

The remaining seven issues identified by The Counselors of Real Estate are Public and Private Indebtedness, Affordable Housing, Flow of People, Space Utilization, Technology and Workflow, Infrastructure, and ESG (Environmental, Social, and Governance), respectively.

While these are national and international observations, they are all applicable in Vermont as well. Never in my thirty-plus year career have I seen a macro event have such a rapid and dramatic impact on smaller markets and industries, says White.

White + Burke Real Estate Advisors acts as an outsourced real estate department for businesses, organizations, and municipalities, specializing in development services, asset management, permitting, public-private partnerships, and commercial brokerage.

David G. White has been a CRE member since 1994.

The Counselors of Real Estatehas identified the current and emerging issues expected to have the most significant impact on real estate for the foreseeable future, with the COVID-19 pandemic being the leading concern of the 1,000-member organization.

COVID-19 may be the greatest environmental experiment of our real estate lives. The change wrought by the virus and its aftermath will teach us about priorities, resilience, and demand in ways that we did not dare test before. The 2020-21 Top Ten Issues are an attempt to overlay this new world onto an already changing real estate environment.

In examining real estate markets, we must consider existing fragility, adaptability to new demands, and potential relevance to new markets. Demand will be defined by the extent to which this crisis leads us to abandon old habits and adopt new ones. The duration of the lockdown has been a factor, and so is the confidence with which we emerge. Key questions without answers include: Will we be willing to shop in crowds, sit in theatres, and live close together to the same extent that we did in January?

Two primary factors may drive the effect of this pandemic on real estate markets. One reduces demand. The other may increase it. Will real estate demand be reduced by the virtual office and a preference for home entertainment?

Will we insist on lower density wherever we go? Will social distancing habits persist, and require reduced density in airplanes, airports, stores, restaurants, theaters, offices, banks, and government buildings? This could require larger spaces and higher costs to accommodate the same functions.

Real estate is a lagging indicator. With the economy expected to take a few years to recover from the effects of COVID-19, our industry will show ripples for a few more.

The U.S. economy was heading toward a tipping point prior to the COVID-19 pandemic, and beyond that we find deep and persistent challenges facing the economy and the real estate industry.

There were a number of statistical signals of deceleration for those willing to see them. Annual job growth in the U.S. had dropped from roughly 3 million in early 2015 to about 2 million in 2019. Industrial production expansion peaked in mid-2018 and had decelerated into negative territory by late 2019. Growth of the labor force had declined from the double-digit pace of the final three decades of the 20thcentury to less than 8 percent from 2000 to 2019, driven in part by the reduction in the U.S. birth rate.

Significant segments of the economy remain debilitated. Leisure and hospitality, retail, air travel, and construction can expect slow and partial rebounds into 2022. Ironically, the healthcare industryespecially workers in lower-income jobsis facing an intense financial squeeze in the wake of the coronavirus. The impact of the economic lockdown on state and local tax revenues could reduce non-federal government employment levels, as occurred in the Global Financial Crisis, and shelve important infrastructure projects. Such risks suggest an unusual W-shaped recession, a second contraction following the initial improvement of a partial economic re-opening.

The post-COVID-19 economy will not be settling into long-run GDP, spending, and employment growth rates that bear any similarity to the 2000 2019 period. Once the first year of recovery is accomplishedand even this will mean some jobs permanently lostfinal demand for U.S. businesses, including real estate, will remain truncated. For the decade of the 2020s, the economy is constrained by long-run potential GDP growth that is a weak 1.5 1.6 percent. That is the new normal for which we need to prepare.

The last three months have presented not only the real time volatility of the capital markets, but also how quickly debt and equity capital liquidity can stop flowing when risk and returns are difficult to measure.

One thing we have seen since the middle of March is that volatility has spiked which makes pricing debt more challenging. In the face of effectively zero interest rates, the risk premium spreads, valuation metrics and the underwriting assumptions become critical. Percentage of rent being paid in each sector is an important metric as is late debt service payments.

Federal intervention helped to limit a complete seizing of the markets but doesnt necessarily mitigate the longer-term concern about defaults and loses. While pricing stability and liquidity appears to have somewhat returned, late payments and loan defaults have seen a significant increase.

Mortgage REITs took a significant hit early in the pandemic, despite no losses in collateral due to loan defaults. Even with some share price rallies, the commercial mortgage REIT sector is down more than 36% YTD, with several down more than 50%.

While publicly traded shares have come back from early pandemic levels, some sectors continue to feel the effects of market re-pricing. Commercial real estate markets will experience a revaluation driven by lodging, retail, and office.

COVID-19 behavioral changes will steer real estate and ultimately what capital will cost. Non-COVID related risks that deserve our attention are the 2020 presidential election, the switch from LIBOR to SOFR as an index, and reporting regulations that will require investor focus. We will get through this period and come out stronger, but what are the risks ahead and what will they cost?

All real estate is local and the value ofand demand forcommercial real estate can be influenced by local indebtedness funded by local taxes.

While fiscal and monetary intervention were necessary in the Great Recession of 2009, and in the current public health crisis, understanding the tentacles of that intervention is a Top Ten real estate issue. Public debt needs to be translated locally to understand the interconnections of air travel, ports, logistics infrastructure, and public transportation that influence commercial real estate demand, value, and investment activity.

Some noteworthy observations:

In this era of political divisiveness, there are two things that most can agree on: 1) there is a tremendous need for affordable housing throughout America, and 2) there is a strong Not in My Back Yard or NIMBY agenda.

According to the National Low-Income Housing Coalition, there is a shortage of more than 7.2 million affordable rental homes for extremely low-income renter householdsthose with incomes at or below the poverty level or 30% of their area median income. Moreover, the lack of affordablefor-salehomes drives up rents and increases prices of multifamily investment properties.

According to the Urban Institute, prior to the COVID-19 outbreak, the affordability crisis driven by the lack of housing supply was one of the biggest problems facing the U.S. housing market.Home prices in the bottom 20th percentile increased 126percent between January 2000 and December 2019. This is a substantially larger increase than the 87 percent increase for homes in the top 20th percentile.

Suggested solutions to the crisis include: (1) expediting the approval process by adding Inherently Beneficial Use to municipal land use laws to circumvent Not in My Back Yard opposition, (2) expand taxpayer funded one-time front-end subsidy programs for affordable housing and encourage the expansion of existing subsidy programs at the federal, state, and county levels, (3) use the power of zoning to create subsidies necessary for providing more affordable housing and market rate housing at no additional cost to the taxpayers.

The flow of people between and within countries has always been a critical driver of real estate and the economy. Today, the worlds economies and people face unprecedented challenges to mobility. Immigration has ground to a halt, initially driven by nationalistic policies in the U.S. and countries throughout the world, and more recently by the COVID-19 pandemic.

Reduced migration and COVID-19 behavioral changes will hurt demand for residential, hospitality, and retail real estate, particularly in communities that have historically relied on such demand.

An early May Harris Poll showed that nearly 40% of urbanites are considering fleeing the city as concerns about the virus and economic effects of the pandemic take hold. Given the cost of moving and the disposable income required, such urban flight is primarily viable for wealthier households and those with remote employment options. Potential expansion of suburban and spoke employment facilities, as discussed by Google in May, to reduce mass transit reliance, will also be a key factor in determining how far this dynamic progresses.

The flexibility of people to move to better jobs has driven productivity and the real estate markets. Real estate implications will be determined by how long behavioral changes brought on by the virus last, the quality of innovations in healthcare, living, and working that emerge, and the quality of world leadership.

COVID-19 will have a lasting impact on the design and use of the real estate space, with a level of transformation and rebuilding not seen since the end of WWII. COVID-19 has stressed the use, location, mechanical infrastructure, and interior configuration of commercial buildings. In as much as safety issues were at the forefront after 9-11, a new focus is being placed on the health of building occupantsfrom building entry and vertical transit to improvement of indoor air quality, including the reduction of transmission threats of airborne particulates.

Density and affordability of housing, job opportunities, social services and health care, and cultural, sports and recreational activities will be even more key in urban planning, with significantly-revised expectations on capacity.

Acceleration of planned, medium-density, mixed-use communities will replace old retail formats, with design that embraces walkability and integration of uses that enable continued normalcy in case of subsequent lockdown orders. Intentional design will deliver social connectedness with physical distancing that integrates residential, office, retail, and public spaces closely resembling older European cities.

Many classic retail formats and retailers will never recover and will require creative re-use or fundamental redevelopment to replace their former vitality.

Amidst the pandemic, there is an urgent call for technology to monitor, manage, and mitigate risks. The combination of migration back to the office, the need for reconfiguration and change in operating methods, and the general desire for working remotely, is accelerating the adoption of technology in the built environment.

Many technologies will go from nice to have to mandatory. These may include: tracking of people in buildings; contactless doors and elevators; air and water quality monitoring; airflow and recirculation control; mandatory remote building services; and health screenings for contractors and facility staff.

Necessity will move us to better and smarter buildings and operations. Forced adoption of web meetings, safety standards, privacy and collaboration tools, and cyber security has brought the benefits of technology to even the most resistant users. Changes in density, use patterns, meeting frequency, and movement are likely. The result will be spaces that are safer, more efficient, and better prepared for the next big surprise as property owners and managers create confidence for tenants, residents, and shoppers.

Infrastructure has a significant impact on land and the built environment and once again is a principal and critical issue affecting real estate this year. As the world reawakens to its vulnerability to extreme events amidst the current COVID-19 pandemic, we are forced to view infrastructure through a different lens given its crucial function in helping to sustain life and commerce.

Funding remains elusive. The ongoing infrastructure crisis is manifested in an estimated underinvestment of $15 trillion in global infrastructure by 2040. Basic infrastructure needs will go unmet and potentially impact real estate values and development patterns as underserved locations become less livable or even undevelopable. Meanwhile, the American Society of Civil Engineers rates U.S. infrastructure a dismal D+.

Further complicating the infrastructure crisis are major disruptors including the pandemic, extreme weather, cyber attacks, and terrorismall of which will require novel, adaptable and strengthened infrastructure across the globe.

Retailers across the globe are increasingly relying on a complex and expanded logistics infrastructure as online sales grow as a percentage of total revenue. As stores reopen and the surge potentially subsides, the demand for a strong logistics infrastructure, particularly of last-mile warehousing and distribution facilities, will depend on the degree to which online shopping remains as a permanent behavioral change for large segments of the population.

Environmental, Social and Governance (ESG) is no longer an emerging trend, but a critical component of real estate investment. While COVID-19 has underscored the importance of ESG issues, this new norm is a result of trends already underway, including dramatically changing acceptance of the risks of climate change, innovations in the measurement and tracking of ESG performance, new innovative ESG investment alternatives, the growing influence of millennial investors, and substantial recognition of ESG initiatives from corporations.

Within real estate investing, ESG requires a more conscious focus on stakeholders and different perspectives from investors and clients, to tenants, residents, building staff and contractors. Issues of equity, sustainability, health and wellness, and diversity all filter into decision-making.

Walkable urban areas, for example, have successfully captured more affluent and younger people attracted to job access, public transit, entertainment, and restaurants. These urban spaces are accounting for virtually all new office and rental multifamily construction.

The role of resilience and control of operating costs is more important than ever as investors and operators navigate the blow of near-term rental revenue losses, especially for the hospitality, entertainment, and retail sectors. It is the opinion of Counselors of Real Estate that ESG has been established as a prudent risk mitigation strategy that will contribute to long-term value creation that real estate has historically enjoyed.

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David White announces 2020-21 Top Ten Issues Affecting Real Estate - Vermont Biz

LEDIC plans on building 146 apartments using the five historic masonry structures that make up the gin shop. The project takes up about 15 acres of the site. LEDIC is calling the property The Mill. The inset on this illustration shows a view from the water.(Photo: Staff Illustration)

PRATTVILLE The gin shop buildings tower over downtown physically and psychologically, and arethe reason Prattville exists.

Those buildings have always been there, said Paula Martin, on a recent afternoon watching her grandchildren scamper around the Heritage Park Fountain. The park, at Main and Court streets, offers chamber of commerce views of the buildings. I was born and raised here. Both my grandfathers worked at the gin shop. I cant imagine Prattville without the gin shop.

Daniel Pratt founded the city that bears his name in 1839. But even before then work was going on. Pratt picked the fall line of Autauga Creek to power his industrial empire. He started making cotton gins, then he built a spinning plant. Soon a sash and door mill was humming, along with a foundry and lumber yard. Pratt, born in Temple, N.H., had built sprawling manufacturing complex in the Deep South.

Fast-forward 181 years to today and those historic buildings are Prattvilles iconic landmark. Generations of families worked there when Prattville was a sleepy little farm town.

In the past several decades the buildings fell intodisrepair after manufacturing stopped there in 2008 as the work went overseas. Continental Eagle, the company that has its roots in Pratts gin shop, closed the buildings in 2011.

What would happen to the structures concerned local history buffs and residents alike.

An artist's rendering shows the outside layout of future gin shop apartments.(Photo: Contributed)

The gin shop has a new life on the horizon, thanks to preservationists and good old American capitalism. A $37 million project will rehab the five historic masonry structures to make way for 145 loft style apartments.

Phase I of The Millproject is scheduled to begin by Sept. 30, and willaddress the site being in a floodway with the construction of a levee, site cleanupand weatherizing the existing buildings for added protection during the construction phases. Weather permitting, Phase I should take about six months, and construction of the apartments will immediately follow.

"The site plans for The Millhave not changed since we started this project, and is still slated to be 145 high-end apartment units that reflect the site's history, said said Kea Calame, senior vice president of Envolve Communities, said in an earlier interview. Envolve was formerly LEDIC Realty. As stated in the beginning, there is no retail space in our plans, as we firmly believe this project should be an extension of downtown that encourages residents to shop and visit the already established retailers."

The Historic Prattville Redevelopment Authority bought the complex for about $1.7 million on Dec. 18, 2014, in a mortgage foreclosure sale on the grounds of the Autauga County Courthouse. A crowd of about 250 broke into applause and cheers as the sale was closed.

Imagine that, cheers at a mortgage sale. But this is Prattville, and they love their history.

HPRA saved the gin shop! then-Sheriff Herbie Johnson shouted from atop the steps. Johnson is a child of the gin shop. His father Woodrow worked there, and he spent some time on the floor as well running the machines.

No one could have guessed then that it would take six years to get any type of project at the site off the ground. Other companies looked, but Envolve made the decision and investment.

The view of the dam from the old Daniel Pratt Gin Shop in Prattville, Ala., on Thursday August 31, 2017.(Photo: Mickey Welsh / Advertiser)

There was sea of red tape to negotiate from state and federal alphabet soup agencies. There were tax credits to acquire, and then re-acquire due to delays beyond the control of all participants.

The delays have led to a feeling among some residents of resignation.

"Every year or so we here the work is going to start, the work is going to start, Ronnie Tolliver, another Prattville native said. And every year, nothing. No movement over across the creek. I hope this is the real thing, but Ill believe it when I see it.

Materials have been delivered to the site to cover the crumbling roofs of the buildings, think massive rolls of very thick plastic garbage bag material.

Mayor Bill Gillespie Jr. understands the show me perception among some.

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Im like everybody else, I want to see work done on the site, he said. That work will be starting soon. Im very excited for what the future holds.

Officials expect the apartments to be a shot in the arm for an already thriving downtown. Several businesses moved into buildings downtown years ago when news of the apartments first surfaced.

I think you are going to see an economic boom downtown once the apartments are completed and people move in, Gillespie said. Those buildings are the reason we are here. Its going to be great to have them contributing to the life and economy of Prattville once again.

Trees grow on the eaves of the old Prattville gin shop in Prattville, Ala., on Wednesday August 19, 2020. (Photo: Mickey Welsh / Advertiser)

The gin shop has served as a backdrop for Prattville events. The tract covers about 40 acres, including the mill pond and dam. But its the view from Court Street thats the go to shot. From there you can see most of the buildings and the mill pond dam.

It has served as a setting for countless prom shots and senior portraits. Wedding and engagement photo sessions are common. Theres not a local politician who hasnt used that scene in campaign literature.

Each one of the buildings is unique,Calamesaid in an earlier interview. There really is nothing else like this out there. No two apartments will really be the same. We are going to incorporate the original design and construction methods of each building in our repurposing effort.

Trees grow on the eaves of the old Prattville gin shop in Prattville, Ala., on Wednesday August 19, 2020. (Photo: Mickey Welsh / Advertiser)

That means windows galore, exposed brick walls, and spotlighting the massive beams and columns that support the buildings. The apartments will be of an open design, to make the best use of those features, she said.

The most prominent building visiblefrom the park or Court Street view is the one just across the creek, where Pratt had a corner office. Up there on the roof you cant miss it, a pine tree grows from the gutter three stories up. The tree seems both out of place and at home at the same time.

I hope they can save the tree, said Matt King. Ive gotten used to it being there. I dont know, its a tough tree, growing up there like that.

The old Daniel Pratt Gin Shop in Prattville, Ala., on Thursday August 31, 2017, is shown with an artists rendering of renovations planned for it.(Photo: Mickey Welsh / Advertiser)

The tree has become a symbol of the effort to save the gin shop, said Tom Newton, chairman of HPRA.

We are going to do our best to save that tree and replant it in a place of honor on the property, Newton said. Any time when we had a set back, a delay in this project, I thought about that tree. How it has grown, how it held on. Its a tree in a gutter, man. It deserves to be saved.

Contact Montgomery Advertiser reporter Marty Roney at mroney@gannett.com.

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Finally, it looks like renovation of Prattville's historic gin shop will begin - Montgomery Advertiser