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 for a conversation with Joe Smazal, Senior Managing Partner at Interra Realty. Joe brings more than a decade of experience specializing in the sale of mid-market apartment buildings in Chicago. With nearly $1 billion in total property transactions under his belt, Joe discusses his journey in real estate, the nuances of Chicago’s vibrant housing market, and the lessons he’s learned along the way. The conversation kicks off with Joe reflecting on his career highlights, including his anticipation of hitting the billion-dollar mark in properties sold. He shares insights into the dynamic Chicago real estate scene, focusing on neighborhoods like Lincoln Park, Lakeview, and Ravenswood, which continue to thrive thanks to great fundamentals and places to live. Joe talks about the importance of keeping up in a challenging market, offering insight into deal and pipeline management and maintaining resilience through uncertain times. Phil and Joe discuss Chicago’s recent Northwest Side Housing Preservation Ordinance, unpacking its potential impact on property values and the city’s housing market. Joe provides a straightforward assessment of the law, voicing concerns about unintended consequences while highlighting the need for balance in legislative approaches. Despite the challenges, Joe remains an unwavering advocate for Chicago, citing the city’s thriving cultural scene, robust economy, and strong community appeal as reasons for why it remains an excellent place to invest and live in. The pair also engage in a dialogue on navigating the complexities of real estate in an evolving Chicago market, and why Joe believes staying consistent and focused on the long-term is key to success in the industry. Since joining Interra in 2014, Joe has personally sold over 240 properties, comprised of over 5,300 units, for a total consideration of over $940,000,000. He has helped the firm grow and and gained the respect of his clients through his honest and direct approach and dedication to his clients’ interests. Joe has been recognized by his peers in recent years as Broker of the Year – Investment Sales by the Illinois Real Estate Journals; and was a Private Capital Markets Investment Broker of the Year Finalist in the Greater Chicago Food Depository CRE Awards. Interra Realty is a boutique commercial real estate brokerage firm focused on selling private capital, mid-sized apartment buildings. Founded in 2010, the firm has closed numerous transactions valued in excess of several billion dollars, with clients ranging from high-net-worth individuals and private investors to private equity groups, hedge funds, and private investors.

Phil and Dave dive right into it--with Dave discussing Hiffman National, his everyday job as a broker and how his time is primarily spent with property owners or industrial landlords or tenants in the marketplace trying to buy, sell or lease a building to suit their business needs. He then tells listeners how he began in industrial real estate in 2005, how the tide turned during the economic downturn of 2008-09, and the market corrections that led to bigger opportunities. He then touches on the market before, during and post-COVID which leads into a discussion on the industrial real estate conundrum of supply chain issues that created a demand for more buildings, and then landing on how inflation and interest rates have distressed cash flow and driven construction deliveries down. The duo also talks about how industrial has become the darling of the investor world, and the regression of landlord-tenant relationships—with fewer private landlords, and how tenants are feeling the trickle-down effect of the high rents market. David explains how Hiffman is crafting ways to cut some of the costs from these deals on the tenant representative side and conversely, how landlords are holding steady since vacancies in the city are low, giving them the advantage. David delves into how tenants are realizing ways to responsibly apply their funds and efficiently utilize their space. They also touch on transportation and how this major industry is in influx, and hypothesize the blueprint of one of the world’s major e-commerce companies and how they make choices on leasing space. Dave also explains what’s happening with infill development and the economic programs that are available in Cook County to spur economic growth, as well as the difficulties that are created by the county’s tax structure and what the future may hold for commercial and industrial property owners trying to make the best decisions for their companies. David Haigh is a vice president and industrial real estate broker whose primary focus includes landlord and tenant representation in suburban Chicago. A veteran of Operation Iraqi Freedom, 2003-2004, Dave credits his attention to detail and work ethic to his time spent in the military. His range of services he provides include acquisitions, dispositions, leasing and site search analysis. Dave and his family enjoy traveling, and he volunteers as a Big Brother within the Big Brothers Big Sisters Association of Chicago. 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.

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.

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.

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 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.

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.

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.

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.