News
GRADS NEED PADS
May 12, 2011
| Bozzuto Development prez Toby Bozzuto has an equation for you: Gen Y college grads (+) dwindling new apartment supply = ? The answer: Skyrocketing multifamily demand. (This is real life, not school, so we just give you the solutions.) |
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| We snapped Toby late last week at our first-ever Baltimore State of the Market. To take advantage of this mathematical breakthrough, his firm used a $75M equity JV with Pritzker Realty Group to assemble land during the first half of 2010: now it's got over 3,000 units in the pipeline, all of which will deliver between 2012 and 2015. Toby also says debt financing is back, often at better terms than the peak in 2005. He expects underwriting standards to weaken as recovery picks up, although his company's staying conservative. |
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| Here's a round-up from some of our other top speakers: Turner Development president Pat Turner says infrastructure work on his 5M SF Westport project (financed by a $160M TIF) starts in four months. Pat says downturns are typically followed by five to seven years of growth (why he's starting work on the development now). Commodity prices are rising for new construction, Pat says, but they're being offset by lower labor costs. He also says LEED certification is key for all future development: the 50-acre Westport site is LEED Platinum, and he says some of the certification points can be applied to future development there. |
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| SPG Trend Advisors' Morris Segall says tourism in Baltimore City will increase dramatically with September's Grand Prix and Ft. McHenry's bicentennial in 2012. Local banks are expanding their footprint and hiring, Morris says, and most are over the worst of their loan problems. Entrepreneurs (especially those in the restaurant industry) are transforming neighborhoods like Federal Hill, Morris says, and there are big opportunities in elder care (14.7% of the Baltimore-Towson MSA's population will be over 65 by 2015) and says healthcare and professional services will lead to future job growth. |
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| In the crowd, we snapped Hord Coplan Macht principal Ed Hord with developer Mark Sapperstein. Ed tells us construction starts next month on Patriot Realty's 60k SF Safeway-anchored mixed-use development in Wheaton. It includes 486 apartment units and delivers in 2013, Ed says. |
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| Also on hand: CBRE's Brendan Lough and Manekin SVP Bob Manekin. Brendan tells us BRAC has resulted in him working with lots of defense contractors. |
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| Our wonderful sponsors: Red Coats SVP Robert Butorac, Admiral Security Services business development manager Page Wells Pollock, Red Coats marketing and sales manager Erick Ireland, Red Coats biz dev guru Steve Flax, University of Maryland Medical System corporate senior manager Calvin Hoffmaster, and Red Coats division manager Dwayne Gore. |
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| We also caught up with RMA Worldwide Chauffeured Transportation marketing VP David Nock and account exec Barry Shannon. |
