Crow Holdings’ Post

When we look at where we are seeing growth in the CRE sector at Asset Class , it’s pretty mixed based on region, but universally the Office-use sector is clearly the most challenged. It’s therefore not surprising to see the example highlighted in the post below by CoStar News. As we look across the sub-asset classes in our network of funds these key use cases emerge: - warehousing / logistics : supporting new distribution models, supply chain reengineering and e-commerce growth - self-storage : reflecting demographic and economic trends (widening affordability gap meaning settling for a smaller space when buying, increase in renting as a result, yet consumerism still high) - Mixed Residential (Rental + Retail), reflecting the work from home / rental-v-buy trend - Healthcare/ Medical usage growth, reflecting aging population coupled with rise in health-challenged 1st-world demographic. - Distressed asset funds: that take these kinds of projects with repurposing in mind to address : - Reisdential supply challenges: in many markets demand is significantly outstripping supply and as a result we see stratification of models and emerging financial structures including lease to buy, community / commonspace models, low-cost options for essential labor, student accommodation models with shared kitchens etc. CRE is changing dramatically, but I’ve got complete faith that the ingenuity of the sector coupled with investor support will see this cycle of change drive innovative thinking, innovative models and creative solutions to current challenges.

In a post-pandemic era where the office real estate landscape has been undergoing profound changes, I was entrusted with the task of selling and maximizing the value of my client's office property—a challenge that demanded innovation, strategic thinking, and a deep understanding of market dynamics. Here's how we surpassed client expectations. Traditionally, this office property was always sold in conjunction with an adjacent residential property. However, through an analysis of the property's attributes and financials, we identified a strategy: bifurcating the commercial property from the residential one. By selling the commercial property first and then the residential, we unlocked value, exceeding our initial projections. In an uncertain office market, creating certainty for prospective buyers was imperative. To achieve this, while actively marketing the property, we successfully negotiated a lease extension with the property's anchor tenant—an 11,000 square foot space with an aggregate value in excess of $1M. This negotiation not only secured significant investment towards the build-out but also facilitated the expansion of a successful IT company that had been operating from this location for over a decade. This move resulted in a win-win for both the seller and the tenant, enhancing the property's appeal. Our approach to cost management was equally strategic. By thoroughly examining the property's expenses and renegotiating service contracts, we were able to significantly reduce costs. These measures led to an increase in net operating income, further elevating the property's value. To address the challenge of vacant space, we engineered a sale/leaseback arrangement, ensuring a future expansion space for the seller's business while also boosting the net operating income and achieving full occupancy. With the groundwork laid, it was crucial to generate demand and urgency among potential buyers. For this, we partnered with Ten-X, a national online auction platform I've successfully leveraged over a dozen times throughout my career. This collaboration not only provided a wide marketing reach but also ensured that all due diligence materials were available before the live bid, allowing buyers to make informed decisions. The culmination of these strategies was a highly competitive bidding environment that resulted in a sale price nearly 2X the 2012 acquisition price and closed swiftly without contingencies. Our approach is a testament to our belief that not all brokers are created equal. We are committed to creating value for our clients in every transaction. Experience the difference with us: 860.371.7103 call or text Ian Grusd, CCIM SIOR Evan Koransky Samuel A. Gelman The CCIM Institute SIOR Global: Society of Industrial and Office Realtors SIOR Connecticut / W. Massachusetts Chapter

Great warehouse space! Customizable to you and your business needs. Check out this great article written by Brochu.

Hold on to your cowboy hats! These developers are about to shake things up with a new conversion play. They're planning to drop $30 million on a Fort Worth highrise, and they're fixin' to turn it into a residential gold mine with over 300 apartments. Back in 2018, they were preaching the modular gospel like it was the Holy Grail of construction. They had this $20,000 "box" that packed all the essentials tighter than a bull rider's grip. They figured they could stack these units faster than a cowhand could round up cattle. But now, they're changing course quicker than a tumbleweed in a tornado. For this 330,000 square foot Fort Worth project, they're ditching the modular approach like an old pair of boots. Instead, they're going with traditional construction methods, all because they want to cut an atrium right through the heart of the building. Apparently, prefab and atriums mix about as well as fire and ice. But hold your horses! Just because modular isn't the right fit for this rodeo doesn't mean it's down for the count. With a $30 million price tag and a timeline just over a year, this conversion is set to be a real trailblazer. And with Downtown Fort Worth's office occupancy sitting pretty at nearly 90%, these new apartments are going to be in high demand. .

"Downtown D.C. Office Building Sold by Tishman Speyer for $140M" Read the full article below..

Great article by Doug Sams of the Atlanta Business Chronicle detailing the difficulty for future new spec #office construction projects to start given the intersection of stubbornly high construction inputs and the current expense/risk tolerance for debt and equity. For all new (non build to suit) construction delivered in Midtown (almost all of #Atlanta new construction) since 2021 or currently under construction there is less than 3,000,000 SF available today, in blocks ranging from 15,000 to 530,000 SF. Almost all have a walkable mixed-use story. In an Atlanta market even approaching normal, that could be 4-6 quarters of supply, and then we are very much supply constrained. Stream Realty Partners #creATL https://lnkd.in/eZFeTUVi

Phase One of the Terminal Redevelopment is moving forward, and will bring a 21-story, 704,355 SF office tower to the #MileSquareCity. 🏢🏗 As Special Redevelopment Counsel for the City of Hoboken, we're keeping a close eye on #HobokenConnect, and look forward to sharing more soon. View renderings and learn more about Phase One here: https://lnkd.in/eehmKUia #HobokenNJ #redevelopmentlaw #njredevelopment #njcre #njdevelopment #njconstruction #njrealestatelaw #njlawfirm

Square Mile office retrofits surge forward. "City of London Corporation's retrofit-first planning policy." Retrofit First... Then refurbishment and restoration. Gold, silver and bronze. I guess new build is out of medal contention. #constructivemoves.com #retrofit #refurbishment #restoration

Pittsburgh’s Gulf Tower is a 44-story Art Deco office building that once served as the headquarters of the Gulf Oil Company. Completed in 1932, the handsomely appointed skyscraper is a distinctive feature on the Steel City’s skyline; its stepped crown, modeled after the ancient Mausoleum of Halicarnassas, lights up with colors that can deliver a weather forecast to onlookers from miles around, reported Bloomberg. "But like so many post-pandemic commercial buildings, the Gulf Tower is now half-empty. Its owner, New Jersey-based Rugby Realty, is eager to sell it to a developer who will turn it into a mixed-use residential and hotel project. So when Aaron Stauber, principal and president of Rugby, heard about a federal program that promised to unlock billions in low-cost financing for property owners looking to convert underused office buildings into apartment towers, he picked up the phone and dialed the US Department of Transportation’s Build America Bureau." "In October, the Biden administration directed USDOT to make $35 billion in financing available for transit-oriented development projects to help speed the transformation of underutilized office space into much-needed housing. The funds, typically used to finance rail infrastructure, could now be tapped to help developers of office-to-residential conversions sited near transit facilities." "Located about a block from Pittsburgh’s Union Station, Gulf Tower is the exactly the kind of project USDOT had in mind, at least on paper. But Stauber soon discovered that the White House program wouldn’t be workable for him. For one, getting approval for funds would take 18 to 24 months. “In a typical real estate financing deal, you’re closing that loan within 60 to 90 days,” he says." https://lnkd.in/gnHeKc9D #unitedstates #officeconversion

95m2 Ground floor office available for lease in this well-maintained, landscaped, and secure office park situated next to the Mount Edgecombe Country Club. Near Flanders Boutique Mall and Cornubia offering all amenities to staff. The office is fully fitted with brand new carpets, open plan area, 1 office, a private kitchen, ablution, and an outside area. 4 covered parking bays for staff and open visitors bays. PROPERTY FEATURES: Fully air-conditioned 1 Enclosed office, server/storeroom, open plan area, kitchen and ablution Fibre connectivity 24hr Access control security LEASE INCLUDES Operational costs Rates & taxes - Base rate Water LEASE EXCLUDES Utilities (electricity, sewerage & refuse) Parking - 4 Covered bays at R550 per bay Increases in rates & taxes VAT - 15% Availability: Negotiable Electricity deposit: R 9 300.00 Lease term: Min 1 Year Contact Lezanne Burger from Camden Property Investments for detailed information on this property, additional options in the area or to secure a viewing! #realestate #realestateagent #realestatebroker #realestateexpert #commercialleasing #commercialbroker #commercialbuildings #commercialinvestment #commercialdevelopment #commercialproperty #commercialproperties #leasing #lezanneburger #development #developments #officeleasing #officebuildings #officebuilding #officemarket #propertymarket #propertymarketing #tolet #propertydevelopment #camdenpropertyinvestments #tolet #brokerage #property #leasing #officetolet