CREW Charlotte Emerging Leaders Happy Hour

Ballantyne Reimagined

Submitted by Diana Quarry, Womble Bond Dickinson

On November 12, 2019, CREW Members and guests had the pleasure of hearing about a critical piece of the revitalization of the Ballantyne area of Charlotte from the Northwood Office team – John Barton, President of Northwood Office, Kim Kendall, VP of Leasing, and Jana Dolder, Director of Property Management.  Northwood purchased over 500 acres in Ballantyne from Smokey Bissell in 2017, and shared its vision for the area’s continued development over the next few years.

The core of the redevelopment, packaged as Phase I of the vision, will focus on building a destination for work, living, fitness, retail and recreation.  Mr. Barton highlighted some of the features of Phase I, which will include an outdoor amphitheater, Stream Park (said to be the “Central Park” of the area), a walkable retail strip, and a series of curated restaurants.  Ample green space is an important part of Phase I, and Northwood anticipates making the most of this space by hosting farmer’s markets and outdoor yoga events.  Phase I will also include approximately 1,000 multifamily units for rent, 300,000 square feet within the entire mixed use community and 200 hotel rooms.  Northwood is targeting that Phase I be open within 5 or 6 years from Q1 2020. Phase II of the redevelopment will follow completion of Phase I, and will contain another 1,000 multi-family units plus 300 townhomes, in addition to 400,000 square feet of office space.

Ms. Kendall elaborated on the specifics of a Class A office building which will be built across from Phase I and will be loaded with amenities.  In addition to a 10^th floor balcony and a rooftop terrace, the building will feature a 2,500 square foot fitness facility, a restaurant and retail on the main level, and the entire 11^th floor dedicated as an amenity space for tenants of the building, including a 50-person conference room, kitchen and event space.  She also described an adjacent residential project which will house 212 units and will feature a rooftop lounge, dog run and resident “speakeasy”.  Both buildings that Ms. Kendall described are slated to open in 2021.

Finally, Ms. Dolder spoke to Northwood’s commitment to community engagement, which is a core value for the developer.  They show this commitment through planning monthly programming and events including free yoga, social hours, an annual wellness fair and Earth Day events.  They also host and sponsor numerous volunteer projects and charitable drives to give back to people in their community. 

A Conversation with Mayor Vi Lyles

Submitted by Anna O'Neal, Wells Fargo Bank

At CREW Charlotte’s October Luncheon on October 9, 2019, Mayor Vi Lyles covered a broad range of topics facing Charlotte including affordable housing, infrastructure, environmental justice, social equity, and the Mayor’s Youth Employment Program.  She also reflected on her years in Charlotte and her experience as an African American woman in a leadership position.

Mayor Lyles sat with moderator Stacia Neugent of GreerWalker and spoke with candor about the challenges facing the City and various paths to improve our great City, including reliable transportation, private-public partnerships for affordable housing, and taking reasonable action to combat climate change. She stated, “Charlotte is at its best when we have a dialogue that is about collaboration.”

Finally, the Mayor urged everyone to take action to be involved with the City of Charlotte, beginning with voting in the upcoming elections on November 5. She encouraged the audience to review everyone on the slate, including the City Council, and think about how we can move Charlotte forward.

The Rebirth of Resiliency: Implementing Sustainable Practices to Build Adaptable Communities

Submitted by Stacia Neugent, GreerWalker

On Tuesday, August 13^th, CREW Charlotte hosted a panel on the rebirth of resiliency at Byron’s Southend. The panel featured Dylan Kirk, sustainability coordinator for Mecklenburg County, Kristina Held, partner at Insight Architects, and Zack Wyatt, executive director for Carolina Farm Trust. Emily Buehrer, landscape architect and project manager with Stimmel Associates, served as the moderator.

In a time when there continues to be frequent extreme weather events, designing with the environment in mind has become even more important. Resilient design is the intentional design of buildings, land, communities and regions in response to these vulnerabilities.

One of the topics discussed at the luncheon was the cost associated with “green development”. Kristina confirmed that there are additional costs associated with making sustainable choices, but they are relatively small on a percentage basis. It is also important to keep in mind that this references the monetary costs, but there are many other costs to be considered when making the decisions regarding development. You have to consider the impact to the land being consumed as well as the impact to the communities in which you are developing. The panel discussed that the “urban sprawl” effect is one of the biggest issues impacting the Charlotte region. The impacts of urban sprawl include increased air and water pollution, increased infrastructure impacts and reliance on cars due to longer commutes.

While we may have a ways to go to get to where we need to be, the panelists acknowledged that recognition is the first step and discussions like this luncheon are shedding light on this important topic. Emily concluded the luncheon with a powerful Dr. Seuss quote, “Unless someone like you cares a whole awful lot. Nothing is going to get better, its not.”

Coworking: The Past, Present and Future

Submitted by Sivilay Xayasaene, Gresham Smith

On June 11, 2019, CREW Charlotte’s luncheon program featured a panel of all CREW members who addressed the many questions surrounding Coworking.  The panel included Wendy Hill with IWG, Hunter Fleshood with WeWork, Mary Wilken with Insite Properties and moderator Virginia Luther with Savills. The luncheon was also CREW Charlotte’s FIFTH annual Bring Your Intern to Lunch.

The panel discussed where they see the future and evolution of coworking and agree that the trend isn’t slowing down. With market unpredictability, the need for flexibility in real estate has increased as companies of all sizes across industries are less likely to pursue longer term leases.  The ability to scale quickly globally is attractive to large companies and the ability to have access to amenities otherwise out of reach for many small firms makes the coworking solution attractive to most organizations.

Across the country, over the last few years we’ve seen a shift in power from employer to employee. According to research from IWG, flexible working is an expectation as a company offering, not just a perk. In the war for talent, having a flexible work environment can be a deal breaker. This approach allows firms to hire people where they want to live – extending their candidate pool for attracting talent, and sustaining retention which are paramount. It’s an ideal choice during good times as well as during a downturn.

Second Annual Signature Luncheon with Mira

“No one would exploit a child if there wasn't someone there to buy the services of that child.” These powerful words were spoken by award winning actress, Mira Sorvino. Sorvino was the keynote speaker at CREW Charlotte’s Second Annual Signature Luncheon.

On Wednesday, May 15^th, Sorvino spoke to a crowd of 350 CREW members and guests about the atrocity that is human trafficking. Sorvino is a United Nations Goodwill Ambassador who works tirelessly to combat human trafficking and slavery. She spoke about the work she has done and also about personal encounters she has had with victims. However, nothing was more compelling than the human trafficking survivor, “Katie” that joined Mira for the luncheon. "A lot of people have a stereotype of what they think a trafficker or a buyer looks like,” Katie said. “I want to blow that stereotype out of the water. I was sold to rich guys, poor guys, old guys, young guys, sold to some women. You know, you have the legislators, lawyers, cops, coaches, the guy that just lives down the street.”

Katie’s story brought many in the audience to tears. Although it is hard for her to tell her story, she is using it as a way to show others that human trafficking could be happening right in front of your face.

There are several organizations across our city and state that work to end human trafficking and slavery. If you want to learn more about how you can join the fight, you can click here. If you have any concern that a child you know is in danger, please call the National Human Trafficking Resource Center at 1-888-373-7888.

Hype or Hope? The Blockchain “Revolution” and WHAT IT MEANS FOR THE Commercial Real Estate INDUSTRY

Submitted by Nichole Kelley, Wells Fargo Bank

At the April 2019 CREW Charlotte Luncheon, we heard from Pax Sinsangkeo with Winstead, who concentrates his practice in commercial real estate financing, commercial mortgage securitizations, asset-based lending, and related real estate and financial services transactions. He has represented major capital markets lending institutions and real estate investment companies in connection with the origination and servicing of commercial mortgage loans, credit facility loans, and multi-asset portfolio transactions. 

Blockchain technology, hailed as the great disruptor of financial markets, enterprise management and data privacy, is a distributed ledger of data and/or transactions that is maintained on a shared network.  On a blockchain, transactions are recorded chronologically, forming an immutable chain, and can be private or anonymous depending on how the technology is implemented.  The ledger is distributed across many participants in the network; it doesn’t exist in one place.  A block could represent transactions and data of many types, such as currency, digital rights, intellectual property, identity, or property titles, to name a few.

As CRE companies consider investing in a multitude of technologies to meet their varied business requirements, it is important to assess whether and where blockchain can be useful as the technology has its own unique characteristics and inefficiency in processes.  Benefits of blockchain include the possibility of near real-time settlement of transactions, eliminating the need to rush a wire to meet the Federal cutoff time, or delays in due diligence processes (i.e. confirming zoning status, legal description of properties, and any data requiring third party verification).  Additionally, blockchain technology is based on cryptographic proof, allowing any two parties to transaction directly with each other without the need for a trusted third party.  This means borrowers and lenders or any other parties can work directly with each other without the need for counsel, escrow agents, or other centralized authorities to verify documents and information; ultimately, this would result in reduced transaction costs and faster execution times for any parties involved.  In addition to the cryptographic security, a blockchain contains a certain and verifiable record of every transaction ever made, which such record is stored among multiple sources (instead of a central authority), which mitigates the risk of fraud, abuse, and manipulation of transactions.

So how can blockchain be used in CRE?  Blockchain is disrupting subscription-based MLS services by allowing brokers, title companies, and appraisers to directly provide information about a property. In addition, a blockchain network can issue tokens or some other data to symbolize real estate rights – this would allow real estate developers and promoters greater access to capital as an alternate form of crowdfunding, and allow investors more liquidity in trading those interests (i.e. a fractional interest in a real estate property) and easier access to real estate ownership. The drawback is competing data from multiple sources may affect consistency and questions around who is validating the data.  Another example of how blockchain is disrupting CRE is the incremental standardization of land deed records to be immutable, making it easier to record deeds and mortgages, verify title insurance, and clarify property rights that may have been historically murkey.  The con is obtaining consensus as to incorrect deeds or chains of title.

While blockchain technology has significant potential to increase efficiency and cost savings for CRE owners and provide greater liquidity and transparency to the CRE market, there are still a number of shortcomings to consider.  Blockchain is susceptible to human error; if there are errors at the beginning of the block that are not identified for some time, who is liable and how can it be corrected?  Also, because it is such a new technology, a lot of the coders and blockchain developers may not be familiar with real estate processes and not accurately track data stored on there. Ultimately, CRE companies who are approached by blockchain companies may need to adopt a “wait and see” approach and perform their due diligence to see if their business truly has a need to incorporate such technology.

To see Pax’s presentation, please click here.

How to Get What You Want and Have Fun Doing It

Submitted by Becky Cheney, Hamilton Stephens Steele + Martin

Our January luncheon speaker provided a highly informative overview and tutorial on negotiations.   DeWitt F. (“Mac”) McCarley, currently an attorney with Parker Poe, provided the crowd with an entertaining explanation of the two basic methods of negotiation: collaborative versus competitive, and discussed strategies for each.  Some of the key principles discussed were understanding your opponent’s true motivation, the importance of asking questions, and defending attempts to “nibble the deal.”  Mac drew on his past as the City Attorney for the City of Charlotte, where he helped negotiate some of the area’s most impactful economic development initiatives in the last two decades.