To ensure delivery, please add email@example.com to your address book, learn how
May 7, 2014
This Morning's Packed Summit
The biggest names in the biz converged at the Marriott Wardman Park today for our 5th Annual Washington Real Estate Summit. Nearly 650 packed the ballroom for the skinny on conditions, predictions, and even some sage advice.
The morning kicked off with a conversation about entrepreneurship between former US Senator (and current Arent Fox advisor) Bob Bennett and billionaire BET founder Bob Johnson. Bob says that learning from failure is key. One failure he's taken lessons from? Holding on as majority owner of the Charlotte Bobcats too long. (He paid $300M for the team in '02 but sold a majority interest to Michael Jordan in 2010.) "Certain attributes of a business fit me, and basketball is not one of them."
Democratic mayoral nominee Muriel Bowser gave the welcome that made our event official. She says that while DC is a "good bet" in terms of business, tech, tourism, and sustainability, "we can'trest on our laurels." More tech and entrepreneurship need to be attracted, and reforms need to be made in taxes and schools.
We presented retiring George Mason whiz Steve Fuller with our Bizzy award for lifetime achievement. Steve (with Bisnow's Tyler Fisher) agrees with Muriel that DC should be a global capital, a tough proposition given the shrinking nature of the federal government. But while our economy might not be growing as fast as others, expect a rebound next year and onward, he says.
The urbanization of America's cities is a trend that's here to stay, according to Jamestown CEO Matt Bronfman and Brookfield Office US CEO Mitch Rudin, flanking JLL's Derrick Mashore. Mitch says the trend is evident in that new driver's licenses among 18- to 25-year-olds have gone down 30% over the past 30 years, indicating a flight to cities. But it's not just multifamily benefiting; companies want to head downtown from the suburbs, too, says Matt: "You don't want to be in your father's office building anymore." (Unless Chelsea Clinton has presidential aspirations.)
Stay tuned tomorrow for more insight from the top finance, development, and retail gurus in DC.
Cathedral Commons Retail Announced
Yesterday, Bozzuto rolled out its first retailers for Cathedral Commons in Cleveland Park. The restaurants include tapas hotspot Barcelona and Raku sushi, which Bozzuto's Jeff Kayce tells us will each include outdoor seating to spill out on Wisconsin Avenue. The retail mix will also serve the neighborhood with two bank branches (Wells Fargo and SunTrust), a Starbucks, and a CVS. (In case you need a loan to get a trenta latte.) But the big driver for Cathedral Commons is the renovated 56k SF urban prototype Giant—Jeff tells us the new design will "push the box in terms of quality and offerings."
As seen from Bozzuto's construction cam. CVS and Giant are in the fit-out phase and should be open this fall along with the project's first residential units. And more restaurant concepts are being considered, Jeff says, with H&R Retail handling leasing.
8120 Woodmont Scores $20M
Yesterday, JLL's Jon Goldstein, Mike Yavinsky, and Wes Boatright announced they just arranged $20M in financing for Triumph Development's 8120 Woodmont Ave in Bethesda. The building is 90% leased; Wells Fargo was the lender.
We Got Your Mayors
Bisnow has been busting out the mayors for you: Our recent Oakland, Baltimore, and Denver State of the Market summits were all keynoted by the local head honchos. (Plural: Hizzonii?) Above, Denver Mayor Michael Hancock highlighted how his city is one of the premier growth markets. The crowd of 350 agreed, saying the Denver commercial real estate economy is back to a 7 or 8 (with 2007 being a 10 and 2009 being a 1).
400 attendees saw Oakland Mayor Jean Quan flaunt her city's titles: Top turnaround city, home to the fastest-selling homes in the US, and No. 5 best city for attracting VC. She's particularly proud of Oakland's international prowess, noting the $1.5B Chinese investment for the Brooklyn Basin project—a signature property on the water. The restaurant scene isn't too bad either; "If you're a foodie like me,” she says, this is the place to be. (We'll just have to do extensive research on that and get back to you.)
Baltimore Mayor Stephanie Rawlings-Blake celebrated progress toward her goal of 10,000 new families in the city: 4,200 housing units have been created in Baltimore City since 2010, and 3,700 are in the pipeline. (So tell your kids to move out already.) Apartment development and conversion incentives should keep the momentum going, but a city can't grow unless the people who already live there have a reason to stay. Hers: She'll continue to cut residential property taxes; the City is issuing RFPs for City-owned properties in the Bromo Arts District; and her administration has $1.1B lined up for school construction.
The Cardinal Classic!
Hey, golf and tennis nuts—and folks who love a great cause! Join us in June for one of the marquee charity events of the summer, the 12th annual Cardinal Bank Charity Classic, on June 2 (tennis) and June 9 (golf) at the Country Club of Fairfax. Funds raised support the Inova Kellar Center's health services for kids, young adults, and their families. That tennis powerhouse known as Bisnow Media bravely fields a tennis team every year, and while we have won some and lost some, we always have fun, meet wonderful people, and feel proud to be helping the community (while not having our scores publicly reported). You'll love it, too. Our own Mark and Margot Bisnow are honorary chairs this year. Come on over! More info.