Green is Green —The Economic Case for Clean Energy in Real Estate Projects with Chris Gersch

In this episode of the Real Estate for Breakfast podcast, host Phil Coover interviews Chris Gersch, the founder and CEO of Verde Solutions (Verde). Verde is a full-service consulting firm utilizing a sensible approach to renewable energy, primarily focusing on building, financing, and engineering solar systems, also advising on battery storage and EV where appropriate but concentrating on solar energy efforts with over 1,400 projects in 48 states.

During their conversation, the pair discuss Verde’s founding in 2012, and the renewable energy projects that affect individual and commercial real estate. They talk about the financing, government incentives, and cost saving for projects using solar energy, as well as the effort to educate commercial developers on the benefits of solar energy for the environment and project costs. Getting more granular, the duo also talk about the energy incentives from the federal government extending to 2031, the potential challenges encountered during projects, and Chris’ hopes for nurturing partnerships and plans for company growth.

Chris Gersch knows the in-and-outs of the clean energy industry. For more than 20 years he has cultivated his portfolio through his knowledge of finance and his passion for sustainability. Chris serves as an adjunct professor at the University of Chicago, designing and teaching quantitative trading strategies and algorithmic system modeling, and often appears as an expert guest speaker for CNBC, Bloomberg, CNN, and Fox Business News. Active in his community, Chris sits on many executive and advisory boards for professional and nonprofit organizations and is a distinguished member of the National Small Business Association (NSBA) Leadership Council.

Verde Solutions serves clients ranging from large companies to small municipalities by providing a variety of services. The company is focused on providing next-gen solutions for some of the most complex problems in the energy industry across the country.

ESG in Commercial Real Estate with Sarah Cannella of Hiffman National

In this episode of the Real Estate for Breakfast podcast, Ice Miller partner Phil Coover interviews Sarah Cannella, Director of Property Management Operations for Hiffman National, which is the asset management arm of the privately owned, commercial real estate and management firm.

During their conversation, Phil and Sarah discuss how Hiffman is not a one-size-fits-all company and the intrinsic knowledge it takes to provide what the clients want and need to satisfy their stakeholders and investors. Sarah talks about the ability to be customizable, a perk of being privately owned, and how it has positioned Hiffman as a top alternative firm to the big national players. Hiffman is responsible for spaces in office, medical and industrial real estate — with the latter experiencing a surge in the Midwest since Covid.

They also discuss ESG, its history and the three pillars:

• E for environmental

• S for social

• G for governance

Within each of the pillars, different strategies are constantly evolving and being determined in how companies are contributing to being a sustainable player in the nation, world, and ecosystem. ESG is a way for stakeholders, investors and partners to examine more than just the bottom line, and evaluate questions like:

• “What impact are they leaving on the environment?” and,

• “What impact are we leaving on society?”

The pair digs into how ESG is touching real estate efforts across the globe, and how Hiffman has made huge steps in talking to their clients about how to implement ESG standards and how many institutional money is requiring ESG processes for their investments, particularly from foreign investors.

Sarah talks about the growth of the company, first in the Midwest and then branching out to Philadelphia and the East Coast. Their initial growth was organic and then spread through client driven initiatives. Hiffman National delivers full range commercial real estate services nationwide and have planted their flag throughout America with offices in 27 states; however, the company is always examining what may be the best next location for expansion.

Sarah Cannella joined Hiffman in 2012 and is currently responsible for the oversight of the property management platform and operational initiatives, including transitioning assets, the Hiffman U property management training program, auditing, due diligence and technology platform directives. Sarah oversees four individuals who are solely dedicated to administering and evolving the Property Management platform. Prior to her role in operations, Sarah worked with the Hiffman Management Services group on behalf of investor clients on industrial, office and retail assets throughout the Chicagoland market.

Headquartered in Oakbrook Terrace, Illinois, Hiffman is a full-service, privately owned commercial real estate brokerage and management company. Hiffman National is the company’s management platform serving markets across the nation. NAI Hiffman is the Chicago-based brokerage operation and representative for NAI Global, the world’s largest managed network of real estate service providers across the world.

What’s Next? Foreseeing the Drive and Demand in an Ever-Changing Real Estate Landscape with Jon McCulloch, CEO of Belgravia Group

In this episode of the Real Estate for Breakfast podcast, Ice Miller partner Phil Coover interviews Jon McCulloch, CEO of Belgravia Group, an award-winning Chicago based real estate developer, that has provided quality homes and real estate services to clients for 75 years.

During their conversation, Phil and Jon talk about his start with the company, growth, and responsibilities as CEO. Jon also speaks on the bread and butter of what makes Belgravia, a smaller conglomerate, a frontrunner in the Chicago condo market and deep dives into how they survived and came out fairly unscathed in the economic downturn of 2008 and how they are navigating the current market.

They touch on macroeconomics, failing banks, interest rates and where the market stands and the demand and desire for new product, as well as Belgravia’s expansion into the West. Jon provides his thoughts about the challenges in the market and what goes into the decision-making process in choosing and building a project. The pair also discuss distressed investments in office and the fluctuation in occupancy and funding in older spaces, and the wait and see game.

Jon McCulloch has been with Belgravia Group since 2004 and serves as the Chief Executive Officer. He is responsible for the company’s residential developments and oversees the company's debt and equity needs. He also is a Principal at Belgravia affiliate, Lakewest, Inc., as well as a co-founder of Lakewest Venture Partners, and a Venture Partner at Dundee Venture Capital. He is also an avid soccer fan and member of the U.S. Soccer Federation’s Chicago Development Council, which efforts support increasing access and resources to accelerate the development of youth soccer players and their coaches.

Belgravia Group is an industry leader and vertically integrated company with divisions for real estate development, sales and marketing, interior design, accounting, customer service, and a full range of real estate legal services. Belgravia recently expanded to the Arizona market, with Portico, a collection of luxury condominiums.

Listen to this episode of the Real Estate for Breakfast on Apple Podcast here.

Office Space: An Alarming Situation and the Coming Wall of Maturity -- with Alissa Adler of Colliers

In this episode of the Real Estate for Breakfast podcast, Ice Miller Real Estate Practice Group partner and host Phillip Coover welcomes Alissa Adler, Senior Vice President at Colliers, a global real estate services firm.

During the podcast, Alissa and Phil discuss serious distress in the office real estate market nationwide—particularly in larger cities such as San Francisco, New York, and Boston. Within those cities, challenges including transportation, tax assessments, and crime are explored while emphasizing other issues such as the change in work culture and having dated, functionally obsolete office spaces. These compounding issues have contributed to the seriously distressed office market, which could have cascading micro and macro economic effects. They also touch on the “Wall of Maturity” for CMBS loans coming due. With lenders having pulled back dramatically on lending in the office market, there is starting to be, and will continue to be, challenging situations for borrowers—who may have to fight foreclosure or hand over the keys to a lender in this difficult environment.

The pair also discuss the challenges and factors that play into repurposing a building, whether an owner can demolish or convert a property, and the hurdles that these properties encounter in examining how to value them and what they will become. Ultimately, some people will see a lot more funds to buy distressed assets.

Alissa Adler joined Colliers as SVP in 2019, and focuses on office investment sales across the Midwest, as well as debt and equity placement, and has in-depth experience across office, industrial and retail asset classes. Based in the Chicago area, Alissa is recognized in the industry for utilizing her broad real estate knowledge and massive network to uniquely serve her diverse client base.

Colliers is a global leader in real estate services and management. Founded in 1898 in Vancouver, Canada, as a real estate, property management and insurance agency, it now operates in 66 countries, with 18,000 employees worldwide that collaboratively work to provide expert real estate and investment advice to clients. Colliers Chicago was founded in 1947, and is made up of more than 300 real estate advisors, property management professionals and staff. The company’s mission is to maximize the potential of property and real assets to accelerate the success of their clients, investors, and team.

Beds, Sheds and Mixed-Use Property Development with Peter Kelly and Dan Reidy of Lincoln Property Company Midwest

In this edition of the Real Estate for Breakfast podcast, Ice Miller partners, host Phil Coover and co-host Jay Augustyn, welcome Peter Kelly and Daniel Reidy of Lincoln Property Company Midwest (LPC Midwest). The foursome talks about real estate development and trends, specifically in the Midwest and opportunities that the company is exploring for continued long-term growth in office, residential and industrial space.

During the podcast, Peter and Dan discuss strong Midwest market and epicenters for growth, as well as the importance of having a partner with strong ties to local government and public affairs to streamline projects for success. They also touch on the challenges in the market with increasing costs and if the demand will keep up with the supply that’s trending. Peter speaks to seizing the right opportunities to go forward and long-term fundamentals, while Dan talks about being selective and the importance of building culture, logistics and the inside knowledge of opportunities that will drive demand to spaces.

Peter Kelly is the Executive Vice President of LPC’s commercial real estate activities across the Midwest, which include acquisitions, dispositions, development, joint ventures, agency leasing, property management, construction management and other services. LPC Midwest has grown to over 15 million square feet of assets under management across five states, under Peter’s direction.

As Vice President at LPC, Dan Reidy oversees industrial property acquisitions and development in the Chicago area and throughout the Midwest. Dan joined the company in 2019 and has been at the forefront of many major developments in and around the region and is currently leading the efforts of a $100+ million project in Indianapolis and Columbus.

Lincoln Property Company was founded in 1965. LPC Midwest is one of the region’s leading commercial real estate service providers, offering property management, leasing, investment and construction management services. Our regional headquarters is located in Chicago, Illinois along with 15 offices across the Midwest employing 60 top-tier real estate professionals with the skills and resources to meet the needs of our diverse clients.

The Complexities of the Cannabis Industry and Real Estate with Chris Fotopoulos and Sam Harmelech of Verano Holdings

In this episode of the Real Estate for Breakfast podcast, host Phil Coover chats with Chris Fotopoulos (EVP of Legal, Real Estate, and Risk), and Sam Harmelech, of Verano Holdings - a multi-state cannabis operator headquartered in Illinois, harvesting six brands and 120 retail dispensaries in 13 U.S. states – and growing.

During their conversation, the group discusses the challenges of navigating the cannabis industry, the cultivation of such an enterprise, and the real estate hurdles of expanding in a highly regulated and ever-changing industry. Chris and Sam also speak on the difficulties of financing, fears, and safety of such an operation and the rapid pace with which the cannabis industry is growing.

As Executive Vice President of Legal, Real Estate, and Risk, Chris Fotopoulos began his journey in cannabis law in 2012, as one of the first lawyers leading the charge in navigating the emerging regulatory environment. He was key in the creation of the primary application for what serves as the basis for the Illinois Cultivation Center and the first license for what is now, Verano, acting as their external General Counsel, then In-House Counsel, and now his current position.

Sam Harmelech is the Vice President of Real Estate and Associate General Counsel at Verano, where he helps manage and operate the company’s portfolio of office, industrial and retail properties. In addition to managing and operating the properties, he handles all of the legal transactional work associated with acquiring, leasing, borrowing against, managing, zoning, and constructing those properties.

Verano is a leading, vertically integrated, cannabis operator devoted to the ongoing improvement of communal wellness by providing responsible access to regulated cannabis products. The company strives to address vital health and wellness needs, Verano produces a comprehensive suite of premium, innovative cannabis products.

Integrated Design with Kapil Khanna, CEO of Lamar Johnson Collaborative

On this episode of Real Estate for Breakfast, host Phil Coover and guest Kapil Khanna, CEO of Lamar Johnson Collaborative (LJC), discuss some of the design challenges that the architecture firm faces in a changing world. As part of an integrated design practice with its parent company, Clayco, a full-service, turnkey real estate, architecture, engineering, design-build and construction firm, LJC has a competitive advantage in its understanding of the intersections between design and construction.

In addition to discussing LJC’s background and overall design process, Phil and Kapil also talk about the many challenges that have arisen in the architecture industry due to the pandemic. Specifically, they discuss the supply chain and how LJC’s scale allows the company to prioritize and plan strategically to navigate the ever-changing world.

Kapil also explains the concept of resiliency planning, which includes anticipating a building’s capacity to adapt to changing conditions and to maintain or regain functionality in the face of stress or disturbance. Along with sustainability, resiliency planning is another important design parameter, and Kapil shares examples of designing vertical agriculture and massive 40 acres greenhouses.

Since the year is winding down, Kapil also takes the time to reflect on some of LJC’s recent projects, such as a Macy’s Flagship store, Pfizer’s Midwest headquarters and Fulton East, a newly constructed 12-story office and retail building. He says LJC is optimistic about 2023, especially as industrial projects are increasingly in demand.

As CEO of LJC, Kapil Khanna focuses on overall firm management. A member of the executive leadership team, he is responsible for providing direction for both the business strategy and the implementation of initiatives to support the firm’s growth. Kapil works across all disciplines of the enterprise to seek out opportunities for greater alignment and integration, and to make positive impacts on the firm’s most complex projects.

A veteran of the design industry, Kapil has provided project management on some of the region’s largest and most complex projects for healthcare and academic systems, including Cook County Health & Hospitals System’s Stroger Hospital Central Campus, University of Chicago Medicine Center for Care and Discovery Parking Garage, Orange Regional Medical Center Outpatient Care Center and Cancer Center Expansion; as well as extensive projects with higher education and healthcare facilities across the U.S. prior to joining LJC.

The Multifamily Housing Market in Chicago, the Importance of Market Research and the “Next West Loop” with Jon Morgan of Interra Realty

On this episode of Real Estate for Breakfast, host Phil Coover is joined by a fellow champion of Chicago, Jon Morgan. Jon is co-founder and managing principal of Chicago-based Interra Realty, and he and Phil begin their conversation by discussing Interra’s formation to its emergence as a middle-market commercial real estate brokerage focusing primarily on multifamily asset sales.

During the episode, Phil and Jon reminisce on the 2008 recession and how it differs from today’s market conditions, especially concerning the level of control banks previously had on real estate. Now that the real estate market is so volatile, Jon ensures that research is an integral part of Interra’s philosophy. Jon says he and his colleagues track the market weekly and stay in constant communication with clients to effectively take advantage of fluctuating market conditions.

Jon also explains how the multifamily market has managed to stay lucrative despite seesawing trends spurred by the pandemic. He points out that retailers are now starting to participate in the multifamily space because it keeps pace with inflation, making it a prime investment opportunity.

As fellow Chicagoans, Phil and Jon do not forget to pay homage to the city by highlighting Chicago’s phenomenal restaurants, major sports teams and growing tech scene. As the two discuss prominent Chicago neighborhoods such as the West Loop, Phil capitalizes on Jon’s knowledge of economics to get him to reveal what he believes the “next West Loop”, or at least an up-and-coming area of Chicago.

Jon Morgan began his career in real estate in 2004. Since then, he has been involved in more than $1 billion in transactions, including apartment buildings, retail properties and ground-up developments.

Jon co-founded Interra Realty with David Goss in 2010 to create a different kind of brokerage firm, one built on trusting relationships with buyers and sellers and hyperlocal, block-by-block expertise. This, coupled with Interra’s commitment to client service, has helped the company to establish many long-lasting relationships, fuel its meteoric growth and become a destination for talent and the training of up-and-coming brokers. As Chicago’s top middle-market brokerage, Interra now handles almost one in five sales of apartment buildings up to 100 units, according to CoStar.

Learn more about Interra here: https://interrarealty.com/

Real Estate Development Strategy in a Changing Market and Avoiding “the Dumb Tax,” with Chris Coleman of Wingspan Development Group

Vice President of Development for Wingspan Development Group Chris Coleman says that the privately owned real estate company is more of a “developer with a general contractor in-house,” than a traditional developer.  That vertical integration gives Wingspan a differentiator in the market.  Currently focused on multifamily and mixed-use developments in Northern Illinois, Southeastern Wisconsin and Central Florida, Wingspan is now seeking to expand into the Greater Phoenix, Greater Denver, and Greater Atlanta markets.

On this episode of Real Estate for Breakfast, host Phil Coover and Chris Coleman discuss Wingspan’s real estate development strategy, how the company differs from other developers, and some of the group’s most successful projects. Additionally, they discuss how Wingspan is navigating the current real estate climate and how Chris and other company leaders chose which new markets to target. Chris explains that the Phoenix, Denver, and Atlanta markets are all areas that he himself or the group’s Director of Development, Jason Macklin, are personally familiar with, and that is what gives Wingspan comfort in moving forward in those regions. Chris refers to this concept as the group’s way of avoiding “the dumb tax,” or losing money by naively developing in areas that the local operators have passed over due to local knowledge of a development challenge.

Chris also discusses the group’s formation, and how it grew out of its sister company, Nicholas & Associates. As a family-owned business, Chris points out that Wingspan can be selective about its deals, and that patience can sometimes give it an advantage over traditional development companies. Overall, Chris says, Wingspan’s number one priority is to protect the family and execute good projects.

As Wingspan’s Vice President of Development, Chris is responsible for all of the company’s lines of business, including development oversight, fostering new debt and equity relationships, and implementing Wingspan’s overall strategic plan. 

Prior to joining Wingspan, Coleman served as Chicago Division President for William Ryan Homes, Inc. Chris first began his career in real estate in 1988 as a market analyst with The Zale Group.

After spending time in Florida and Georgia, Coleman returned to Chicago in 1997 to launch his own firm specializing in in-fill redevelopment. He joined Wingspan Development Group in 2017.

Learn more about Wingspan Development Group here: https://www.wingspandev.com/.

Environmental Mitigation and Ecological Offset Markets with Mark Bernstein of Magnolia Land Partners

Magnolia aims to balance the needs of economic development with the important task of preserving our world's most valuable natural resources.  On this episode of Real Estate for Breakfast, host Phil Coover talks environmental mitigation (that is mitigation with an “M”, not an “L”), and the creation of ecological offset markets, with Mark Bernstein of Magnolia Land Partners. The two discuss Magnolia Partners’ distinctive business model, which includes creating mitigation banks to help businesses navigate complex permitting challenges, while working with landowners to restore environmentally protected areas such as wetlands. The company receives credits for each restoration project, which it then trades with companies that need to comply with environmental regulations.

The podcast also covers the economic incentives for participating in these types of restoration programs, and how available programs create economic markets which revolve around mitigation. Mark explains that Magnolia covers 100 percent of the costs associated with restoration and landowners are simply required to maintain the land and comply with the terms of the conservation easement. He also points out that this opportunity allows a proprietor to retain ownership of their land.  This company is a fascinating case study in land preservation, while creating tax incentives, other economic incentives, and even profits, while being environmental stewards.

Phil also asks Mark about the challenges of environmental mitigation work, his favorite projects, and the company’s plans to increase their ability to preserve land. As a co-founder of Magnolia Land Partners, Mark and his team have already secured 10,000 acres under conservation in fourteen active states, and are pioneering a new era in environmental stewardship.

Prior to founding Magnolia Land Partners, Mark led the analyst team and guided new market development at one of the largest mitigation banking companies in the US. During that time, he was published in the Journal of Environmental Geosciences for contributing to the development of a new condition assessment protocol employed in wetland and stream mitigation throughout the state of Pennsylvania. Mark holds a Bachelor of Arts (cum laude with departmental honors) in Environmental Science and Economics from Northwestern University and is a member of the inaugural class of Venture For America.

 For more information about Magnolia Land Partners, visit https://mitigation.org/.