Real Estate for Breakfast

In this episode of the Real Estate for Breakfast podcast, Ice Miller Real Estate Practice Group partner and host Phil Coover sits down with Matt Pistorio, principal at R2 Companies, a privately-held, fully integrated real estate investment and development firm, and founder of Madison Rose, a real estate firm specializing in agency leasing. During the conversation, Matt talks about his passion for what he does and details how he began his professional journey with commercial brokerage houses. He recounts his road to becoming a principal at R2, and the opportunities and support of colleagues that allowed him to simultaneously have two significant roles at major real estate companies, including founding and driving Madison Rose forward. He details his involvement with the two companies, which at time cross paths on projects but remain separate. Matt discusses his mentors and the impact they had in the way he guides and manages his employees, and his belief that positive energy and attitude translates into building a positive workforce and overall success. Phil and Matt also talk about the office market and the current vacancy rate in Chicago, and how cities across the nation are feeling the pressure. Specifically, the massive dent in the market due to less demand with more people working from home. Matt and Phil also discuss distressed office space and explain the methodology of what should and needs to occur to get a business to a place that feels good where it can operate effectively. They also dive into the diamond that is 150 North Michigan, and the outlook of how it will play out in the market as a prime location, with new amenities and building upgrades. They touch on what Chicago looks like post-pandemic, if people are coming back downtown, the downside of financing and underwriting transactions, and everyone’s favorite – taxes. The pair also talk about the strategy in bringing back the Chicago Board of Trade building from foreclosure to a white-hot, second-generation property for office use, and how vintage spaces are being rebranded and brought back to life while maintaining their history and importance to the city. Matt has nearly two decades of experience repositioning and leasing of commercial real estate assets. His projects include the Chicago Main Post Office, Aon Center, Citadel Center, Willis Tower and Prudential Plaza. Matt is a two-time recipient of the Greater Chicago Food Depository’s ‘Broker of the Year’ Award. R2 Companies owns, operates and manages superior investment opportunities. With offices in Chicago, Milwaukee and Minneapolis, they are fully-integrated – managing all aspects of the real estate investment process. Madison Rose, founded in 2019, brings buildings back to life. Named after Pistorio’s two daughters, the firm brings a new age model to leasing by curating the stories of properties and tailoring their approach to showcase each building’s unique strengths and value.

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, and 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.

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.

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.

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/

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/.

In this episode of Real Estate for Breakfast, host Phil Coover is joined by his colleague and guest co-host LaTonya Ellis, and his former law school classmate, Nicole White, the newly appointed Chief Legal Officer and Corporate Secretary at Avison Young. Avison Young is a full service global real estate company. Nicole and Phil briefly reminisce about their time as law students at DePaul University, but quickly jump into a conversation about Nicole’s new role as Chief Legal Officer and Corporate Secretary at Avison Young: what it entails, her career trajectory and how the company has grown so fast in such a short amount of time, and challenges for growth and culture in a post pandemic world.

In this episode of Real Estate for Breakfast, host Phil Coover and co-host Jay Augustyn are joined by Nick Earls and Eric DiNicola, co-founders of Winterspring Capital. Phil and Jay sit down with Nick and Eric to discuss the pair’s 20-year friendship and how they successfully developed a business and brand from their first real estate project, which included the renovation and sale of three condominium units in Boston. The Winterspring story is interesting in seeing how two friends can create a real estate development company, without deep pocket backers, by taking one step at a time, by building skills, by stepping out of their comfort zone and focusing on marketing, and by measuring each decision and learning lessons as they build for the future. Specifically, the group examines the pros and cons of funding projects with equity investments in lieu of debt; the company’s marketing strategy and plans for future growth including writing books and articles for public consumption; the concept of the “karma economy”; and Winterspring’s foray into Boston’s affordable housing market. As co-founder and managing principal of Winterspring Capital, Nick Earls has over a decade of experience in all phases of commercial real estate, including asset management, sales, new construction development and property management. While building his own portfolio, he has also guided many investors down the path of multifamily investment, management or development. He is an expert on multifamily condominium development, underwriting, and asset management in the multifamily space and is also the author of the top-rated book, “Making Millions through Multi-Family Development.” Eric DiNicola is also a co-founder and managing principal of Winterspring Capital. His strong financial background spans over a decade. Eric began working in public equity in 2010 and moved into the private equity markets where he worked on valuations and capital raising. Joining forces with Nick in 2015, Eric leveraged his investment experience and expertise to accelerate the growth of Winterspring's real estate business. Heading up the company’s acquisitions team, Eric leans on his extensive broker network to keep Winterspring's deal pipeline full. For more information, visit: https://winterspringcapital.com/