Detroit State of the Market

Kathy Makino-Leipsitz, is the managing partner of Shelborne Development and active in the transformation of the City of Detroit. Over the last 37 years, Kathy and Shelborne has helped to build and rehabilitate over 2,000 housing units in Southeastern Michigan with a special focus on preserving over 30 vacant/ blighted/ boarded historic buildings in Detroit, bringing life back to over 1,000 multi-family units within the City. In 1979, Kathy purchased a duplex in the City of Westland while a student at the University of Michigan. Kathy’s interest in real estate continued following her graduation with her BA in Economics from the University of Michigan. She began with her first purchase of a 30-unit apartment building in what was then the Cass Corridor in Midtown Detroit. Over the next 20 years, Shelborne work included new construction, and the rehabilitation of several apartment buildings throughout the City and southeastern Michigan. In 2003, Shelborne purchased a blighted, vacant and boarded apartment building on Seward Street. In the next 3 years, Shelborne completed a $10 million gut rehabilitation, resulting in 71 units of quality affordable housing. In 2005, Shelborne was asked to step into another project on Seward Street (consisting of 4 multi-family buildings) that had struggled for years and was underperforming due to low occupancy. Seward Street, contained some of the most beautiful multi-family buildings in the City of Detroit, yet it had created a challenging reputation to overcome due to drugs, crime, and a very poor tenant profile. It is on this block where Shelborne started to recognize that by purchasing multiple buildings in one area that one could actually make an impact on the entire neighborhood. From 2003 to 2012 Shelborne purchased 6 out of the 9 distressed buildings on Seward Street. The most recent building located at 112 Seward completed by Shelborne Development has received the National Historic Rehabilitation Association’s Timmy Award for Best Historic Rehabilitation (under $10 million) in the nation. Shelborne has expanded its concentration to two other neighborhoods, Palmer Park and the East Jefferson Corridor. As a result, in the past 4 years, Shelborne has completed the rehabilitation of 14 buildings in the Palmer Park historic apartment district, New Center and the Jefferson-Chalmers neighborhoods totaling 80 million dollars of investment in these important historic neighborhoods. In addition, 5 multifamily historic rehabilitations will begin in 2016/2017 investing an additional 88 million dollars, when completed Shelborne will rehabilitated over 850 housing units in those neighborhoods Over the years, Kathy has been recognized with several achievement awards. Among the awards includes: D Business Magazine the 2015 Powered by Women Award, Syndicator WNC Developer of the Year, Jefferson East Inc., 2012 Developer of the year, The University of Michigan and the Urban Land Institute Real Estate Excellence Award, as well as The Wayne County Commission recognized her for her continued dedication to Reinvesting in Detroit. Shelborne’s developments have also been recognized several national awards including, Palmer Park Square received LISC’s Most Community Impact Award for the redevelopment of 6 Historic Apartment buildings, Chalmers Square received the 2014 Multifamily Executive Magazines Grand Award for National Project of the year along with the Novogradac award for Historic Rehabilitation with Most Community Impact. Shelborne Developments project awards also include Overcoming Significant Obstacles and Most Creative Financing. Kathy’s civic commitments and to devotion to the redevelopment of Detroit include serving as a board member on the Michigan Housing Council, and Recovery Park. She also remains active in community groups such as “The People for Palmer Park” and Mahares /Gentry Pak board of directors. She was recently was appointed to the Wayne County Joint Airport Authorities Zoning Board of Appeals.

Sarah has overseen the procurement or provision of public support to leverage over $2.5 billion of private investment in mid-western cities. In her most recent role, she directed the team at the DEGC responsible for attracting and facilitating development in Detroit. As a Detroit resident herself, Sarah is personally invested in the city’s revitalization. She has completed several historic renovations in the city’s North End and serves on the board of Central Detroit Christian CDC. She earned a BA from Wheaton College in International Relations; a Masters in Urban Planning and a Real Estate Development Certificate from the University of Michigan

Jean-Michel Wasterlain is the Managing Partner and co-founder of Next Cities Investment (“Next Cities”). Next Cities redevelops and manages properties in cities that are emerging magnets for technology, creativity, and innovation. By converting underutilized buildings into flexible spaces to live and work, Next Cities brings new vitality to the neighborhoods in which they invest. Prior to founding Next Cities, Mitch’s career has covered all aspects of real estate investment, financing, and development. He has served as CEO of ORIX Capital Markets, where he managed a $12 billion portfolio of real estate assets. He previously co-founded NorthStar Realty Finance, a public REIT with over $20 billion in assets, and served as its Chief Investment Officer. Mitch holds an MBA from the Wharton School and a BA in Economics with Honors and Distinction from Stanford University. He is a founding member of the CRE Finance Council (formerly CMSA), and he is co-Chair of the Urban Land Institute’s Urban Revitalization Council.

Michael Poris, AIA, is founding principal of McIntosh Poris Associates, a full-service architecture, interior and urban design practice in Birmingham, MI. Since returning to Detroit in 1995, Michael has been working to implement change in his hometown preserving many of Detroit’s 20th-century landmark buildings, historic districts, and iconic neighborhoods. Michaels design leadership has helped transform Detroit with projects such as the Foundation Hotel, and the East Riverfront framework plan. His work has won over 130 design awards including 30 AIA Honor awards, 70 Detroit Design Awards and been published in over 100 publications worldwide including Dwell, Urban Land, Architectural Record, and Interior Design. Michael is currently working on an adaptive reuse of the 600,000sf Fisher Body plant in Detroit, and a 600 prefabricated home community in Colorado. Michael was recently awarded the AIA Detroit Charles Blessing award recognizing an individual who shows leadership in planning and civic issues and exemplifies the vision, commitment and the accomplishments of Charles A. Blessing, the visionary Detroit city planner, who committed himself to the pursuit of a higher quality of life for all.

Patrick graduated from the Broad College of Business at Michigan State University. He has directly overseen millions of dollars' worth of construction and demolition work as a result of his accreditation as a State of Michigan and Ohio Asbestos Abatement Supervisor, Licensed Residential Builder and Asbestos Abatement Trainer. In 2006, Patrick co-founded Beal Incorporated, a Michigan-based demolition contractor. Beal Incorporation has won several awards relating to fast growth, including being listed third in the INC 500 Fastest Growing Companies in America 2010 Edition. Not only does Patrick assure the success of Detroit Training Center as Chief Executive Officer, he instructs onsite at the training facility and also at correctional facilities. Last year, he was honored by Detroit Young Professionals for the Vanguard Awards and Detroit Training Center won the Motor City Match and NEIdeas awards.

Mark J. Bennett is Managing Director of MJBennett, PLLC, an affiliate of Pappas Financial and The Enterprise Securities Company. Mark is an entrepreneur, attorney and FINRA-registered securities professional with 30+ years of experience in structuring, financing and executing sophisticated transactions with an emphasis in real estate and technology. Since 2015, Mark has been involved in the placement of more than $100 million of direct real estate equity financing in the City of Detroit and surrounding suburbs for six new multi-family construction and significant rehab developments consisting of more than 1,100 units, and a cumulative project value in excess of $275 million. Five of these investments involved Qualified Opportunity Funds under the new Opportunity Zone legislation. Mark has started five venture capital backed companies and partnered with others to raise more than $100 million in equity from private equity funds, corporate venture funds, individual accredited investors, family offices and venture capital firms, including Bain Capital. While in law school, Mark founded Toxicheck, which later merged with Environmental Data Resources Inc., the leading national environmental information services company and owner of the largest Sanborn Map Collection, which helps the real estate industry manage environmental risk and liability. Mark practiced law at Miller Canfield and has extensive legal experience in real estate, environmental, renewable energy and economic development incentives at the federal, state and local levels. At Miller Canfield Mark established the firm’s Climate Change Practice, where he participated in creating Michigan’s PACE enabling legislation. Thereafter, he co-founded Sustainable Real Estate Solutions, a national PACE building energy benchmarking and underwriting technology platform. Mark is a Member of the State Bar of Michigan and the Finance Committee of the Jewish Federation of Metropolitan Detroit and the United Jewish Foundation. He has published more than 40 articles and made numerous public appearances in a variety of market areas. He earned his BS in Economics, Phi Beta Kappa from Michigan State University, and his JD from the Wayne State University Law School.

Throughout his 20+ years’ experience in Commercial Real Estate, Brandon has demonstrated significant hands-on transaction experience and proven leadership directing debt and equity investments in retail, multifamily, parking, office, industrial and hospitality properties. He has held senior positions structuring and originating debt and equity investments, including restructuring, asset redevelopment and loan sales at Fifth Third Bank, Wells Fargo Bank and a boutique brokerage firm acquired by GMAC, with applied expertise in the following areas: •Origination, Underwriting & Structuring for Portfolio and Securitization – Debt & Equity •Commercial Real Estate Investment Management, Acquisitions, Operations & Dispositions •Advisory and Placement •Distressed Asset Resolution and Loan Workouts

Chris is the Business Development Director, Ohio at Nuveen Green Capital. Chris has over twenty years of experience in commercial real estate, including working in areas of accounting, asset management, acquisitions, dispositions, underwriting, financing and investor relations. Prior to Greenworks Lending, Chris was Vice President, Investor Relations at White Oak Partners. Additionally, Chris spent eleven years with Washington Prime Group, formally Glimcher Realty Trust, as Senior Director, Investments, where he sourced new acquisition opportunities, oversaw the financial underwriting function, managed the relationships with joint venture partners, and oversaw financial projections on development and redevelopment opportunities. He also spent 10 years at Ohio Public Employees Retirement System (OPERS), in the Real Estate Accounting and the Real Estate Investment Division, where he managed several portfolios totaling over $1.5 billion in market value consisting of various property types. Chris received his MBA from The Dauch School of Business at Ashland University and his undergraduate degree in Business Administration from The Ohio State University. He is also a Certified Public Accountant, licensed in Ohio.

Andrew is responsible for all aspects of property management accounting, corporate accounting, construction accounting, financial services, asset management, information technologies, and human resources. Mr. Gutman's focus is on internal and external client services and the provision of timely and accurate client-required information and maximizing asset value. He has been responsible for direct oversight of over $100,000,000 in debt and equity vehicles for the organization and for clients.