Episode 374: 06-23-16
On this week’s show, Frank Lago discusses the growing area around FIU’s South Campus and how the CCIM helped his success, Don Weidenfeld shares how Magnum Energy Solutions can cut costs and add value to your residential and commercial properties, and Bob Thollander gives us an update on the South Florida apartment market.
CCIM Voice – FIU Growth
Frank Lago, CCIM – KW Commercial Miami, FL. Lago has an expertise in the areas of tenant and landlord representation, acquisition and disposition of land, and industrial and office submarket analysis.
He has extensive urban planning expertise from his time on staff as a planner for Florida International University (FIU).
We discuss the growing area around FIU’s South campus, as well as how the CCIM designation has helped him become a success.
Go Green, Save Green
Don Weidenfeld is Managing Member at Magnum Energy Solutions, a pioneer in the development and deployment of innovative energy management solutions for both commercial and residential applications and to the OEM market. A dedicated team in Hudson, Ohio, and a nationwide network of partners, resellers and certified installers delivers Magnum Energy Solutions’ expertise in wireless solutions for monitoring, configuring and controlling lighting, HVAC and plug loads.
We discuss how Magnum cuts costs and adds value to your residential and commercial properties.
South Florida Apartment Market Update
Bob Thollander is Vice President of Development, Florida Region, for The Bainbridge Companies, LLC. Thollander is responsible for sourcing and execution of real estate development projects throughout the state of Florida.
Thollander’s responsibilities include identifying and sourcing vacant land parcels suitable for development of luxury rental apartments and mixed-use projects. In that role he spearheads land acquisition, obtaining entitlements, project design, financial modeling and underwriting, permitting, project funding, construction management, marketing and lease-up.
Since joining Bainbridge, Thollander has been responsible for initiating the acquisition and development of over 2,000 multifamily units while overseeing construction of 700+ units. We discuss the South Florida apartment market.
Vivian Fried Kidney Transplant Update
ALSO: An update on Vivian Fried. You can donate to her kidney transplant fund by clicking here: http://bit.ly/Donate2Vivian
To become a member of the Vivian Fried Fundraising Team, click here: http://bit.ly/BeAVIVIANFundraiser
THANK YOU!
Episode 374: 06-23-16
Feature photo courtesy of Eduardo Merille on Flickr.
Transcription:
Announcer: The following program is sponsored by James Fried. Eight eighty AM, the Biz, South Florida’s only all business station welcomes to you Fried on Business. He grew up in South Florida. Has been in business here since the early 1990s, and has closed over $1 billion in deals. He’s seen it all. He always has an opinion, and he’s always ready to share it. Informed, entertaining, and connected he has his finger on the throbbing pulse on South Florida’s business community. He’s Jim Fried exclusively on 8 80 AM The Biz. To talk to Jim and his guests call 305-541-2350. That’s 305-541-2350. Now, here’s your host Jim Fried.
Jim Fried: All right, everybody we got a great show for you today. We’re going to start off. We’re going to talk about with the CCIM voice, my good friend Frank Lago. We’re going to talk about all the urban centers that are being developed here in town, then we’re going to talk with my good friend Bob Thollander. He’s the vice president of development for the Florida region at Bainbridge. We’re also going to talk with Don Weidenfield, managing member at Magnum Energy Solutions, and Don is going to tell everybody he’s going to save them money, and Bob he may even make you money by saving you money. So, everybody stick with us. We’ve got great information you’ll be able to use today that’s going to improve your life today. So, stick with us with more Fried on business back after this. First up Frank Lago, we’re going to talk about all the development ideas that are here in South Florida. Frank’s got a good handle on what’s coming. Make sure to stick around. Frank’s going to tell us the future. Wanda, take it away.
[commercial break]
Announcer: You’re listening to Fried on Business. To talk to Jim and his guests call 305-541-2350. That’s 305-451-2350. Now, back to your host, Jim Fried.
Jim Fried: All right, we’re back and we’re back with my favorite monthly segment. We’ve got the CCIM voice. We bring a new visionary, new thought leader in South Florida real estate to you every month, and this month we’ve got Frank Lago. Franks’ with KW commercial here in Miami. He’s got an expertise theories of tenant-landlord representation acquisition, and disposition of land, and in industrial office submarkets. Frank has extensive urban land planning experience from his time on staff with Ybor, in the city of Sweetwater. Frank, welcome to the show.
Frank Lago: Jim, it’s a pleasure. Thank you having me. I’d like to say hello to all your loyal listeners. I’d like to say hello to some of my clients actually that actually emailed me today, and they knew I was going to be on this show. And most importantly to my beautiful wife. I’m going to get in trouble if I don’t say that. Elizabeth hearing back at home.
Jim Fried: Oh, yeah, oh yeah. He made sure he was going to tell us that part. No, you got to start with all the shout outs because you never know how excited you’re going to get in the end and forget somebody. So, Frank first off let’s start with the perfunctory CCIM question. Tell me about CCIM helps you in your business, and why you got one in the first place.
Frank Lago: Well, to answer that question I have to go into my background a little bit. So, I came from government. I came from local municipal government, and in 2012 I decided to go over into the private sector, and coming over, and getting into real estate I found out that real estate had its own language. Its own vocabulary, which you need to understand to get deals done. Understanding a deal, understanding what is a deal. So, what I did was I researched, I took some local classes, and nothing really gave me the education, and the idea that I really needed with commercial real estate. So, in talking to Paul White, and I know you know who Paul White is.
Jim Fried: Oh, Paul White’s the man.
Frank Lago: He’s one of the elders, and one of the founding fathers of the Miami Chapter.
Jim Fried: He’s going to love that.
Frank Lago: He actually geared me toward CCIM. I ended up taking an introductory class back in 2012, and I fell in love with the program. I ended up actually getting penned just last year.
Jim Fried: What does that mean?
Frank Lago: Well getting penned is the process. So, in becoming a CCIM you have to do course work, right? There’s four core classes. After that you have to present a portfolio of experience, and that has to compile a certain amount of volume in deals. After that you get seeded to take a comprehensive exam, which is basically a complete review of all the four courses you had to take throughout the process. So, after you complete that exam, and that whole process, then you get- and you pass the example. You get penned, and that means you have the honors of wearing a shiny little pen that says CCIM on it.
Jim Fried: Well, that means a lot more than that. It means you’re part of the team.
Frank Lago: You’re part of the society of the commercial experts here nationwide, and all over the world actually.
Jim Fried: Yeah, it’s a great thing. I’ve seen a lot of really good interaction, and I think it’s a great network to be a part of it. I’ve seen a lot of people make a lot of money with the CCIM. Now Frank, we were talking outside in the green room. I’m just going to go right into it. You were telling me about how you see the future of South Florida as- well I would just say moving to the suburbs. Tell me a little bit more about that because we’ve got the guys from Bainbridge on later. We’re going to talk later about what they see in the state of Florida. Why don’t you break down South Florida for us?
Frank Lago: Well, I said that more importantly because I was born and raised in Miami.
Jim Fried: Where did you go to high school?
Frank Lago: I went to high school in the Christopher Columbus.
Jim Fried: Okay, I always ask that.
Frank Lago: Christopher Columbus, and actually I went to FIU. I got my bachelors and my masters in FIU.
Jim Fried: Awesome.
Frank Lago: So, being a hometown guy, and all my friends and family being from Miami. I’m the only one out of my whole group of friends that lives downtown. The rest of them wouldn’t even think of living downtown. They don’t want to live downtown, and I love everything that’s going on in Brickell. I really do. I love everything that’s going on in Wynwood, and downtown, and Edgewater, and so forth. But at the end of the day we need to do projects of that caliber out west. We need to have projects that are mixed use, high-density projects in certain places, and also bring transportation links to them. I think a lot of people out west, and in the density that’s for meeting Kendall, and West Kendall, and Sweetwater, and West Miami down south. Neat places to go to, and a lot of young professionals as they, as there is viable transportation would actually take advantage of these places.
Jim Fried: Yeah, I really think that you’re going to see we had Mike Fay a long time ago. We were talking about that about he calls it the theory of donuts. I like to call it the Siri of high-density urban activity centers, but I really think the whole thing is really all about getting people where they need to be, and creating a place where they really don’t need to leave. I know that they’ve been starting to do that out west in Sweetwater. What’s coming in places like that?
Frank Lago: Well, Sweetwater is interesting. My time when working with the city I was hired to actually rezone, and change the land use of the city to allow for high-density college housing, private college housing. FIU was moving away from being a commuter university, and it wanted to be a place where students could live, students could attend. Obviously, it would have an environment where students would take part of. So, we took the opportunity in doing that, and changing our comprehensive master plan, and that process started way back in 2003 just to give you an idea.
Jim Fried: Right.
Frank Lago: We see a couple of pieces already. We seen two buildings. Many several projects are on their way. I see a very bright future for Sweetwater in terms of private student housing in terms of having this suburban area that people could gather, have restaurants, have coffee shops, bookstores, and so forth.
Jim Fried: What are you seeing in some other markets? Give me a little more of your insights.
Frank Lago: I’m very interested to see what’s going to happen in West Kendall. West Kendall currently has an application to incorporate, and become a city.
Jim Fried: Right.
Frank Lago: I think if they move away from some of these antiquated Miami date county zoning codes, and they’re able to do their own land use, and comprehensive master plan. I think there would be great possibilities of some great projects out west. West Miami is another city that really excites me. They’re doing some great thing. They changed their comp plan, and now you’ve seen a couple of high density mixed use buildings in certain areas in that city. And last but not last East Hialeah. I really see a big future in East Hialeah.
Jim Fried: Oh, I’m right there with you. I actually went to something at the Hialeah racetrack the other day.
Frank Lago: Impressive what they’re done there.
Jim Fried: Beyond what they’ve done there, how about all the just naked development sites left and right.
Frank Lago: There’s a lot of blighted areas in East Hialeah, and when you look at East Hialeah on the map.
Jim Fried: And they have the train.
Frank Lago: They have the train, they have trail, and they have metro rail. So, you have all the major transportation arteries there. You’re logistically in the smack middle of this county. So, I see a great, a great redevelopment plays in East Hialeah in the future.
Jim Fried: I’m not going to ask for commission on this on the air, but I do need you to talk to Bob. The guy from Bainbridge because I know he’s looking for stuff like that, and he’s got to get creative. He’s got to get some deals under his belt. Bob? Wanda, turn Bob on there. Bob, what do you think about all this stuff? This is what you’re looking to buy, right?
Bob Thollander: I have to say I haven’t looked at anything.
Jim Fried: Got to teach Bob how to be on the radio.
Bob Thollander: I haven’t looked at anything in East Hialeah yet, but I am here tomorrow. So, if you got something I’d love to take a look at it.
Frank Lago: Absolutely, I love to work some deals with you, Bob. So-
Jim Fried: There you go. There you go, but Frank, Frank. This is your time, so tell me a little bit more about what you think people need to know. We’ve got about a minute left, and I want to make sure that people know how to find you, and what you’re focuses are.
Frank Lago: Well, focus is simple. It’s a land and redevelopment. I look for properties that are not being utilized to their best use. I find a way whether it’s through the comp plan. Whether it’s through the zoning process. See a way that we could up zone that property, and bring greater value to it. Its people can find me very simple. You could log on to www.lagoteam.com, or you could call me. My telephone numbers 305-613-8851. I’m always available, and happy to help.
Jim Fried: Oh Frank, that is just great stuff, and I don’t want to say it doesn’t happen a lot because it does sort of happen a lot, but you got to talk to Bob. I know Bob is looking for that kind of stuff, and maybe you guys can make some business. Boy, wouldn’t that be nice. You make a donation to the Fried on business fund here, you know?
Frank Lago: I’d love to do that.
Jim Fried: Oh, that’s awesome.
Frank Lago: We could work out a deal.
Jim Fried: That’s awesome. All right, we’ll be back with more. We got Don Weidenfeld holding. He’s going to tell you how you can save money on your commercial real estate. Invest a couple bucks with Don. The returns up to 40% savings on your electric bill. I know Bob is going to listen to that one too. Frank, high five to you for coming in today. All right, we’ll be back after this. Wanda, it’s all yours.
[commericial break]
Jim Fried: Oh yeah, I’m walking on sunshine. Wanda, I think I must have blown your head off with that one I came in so hot.
Wanda: I’m okay.
[commercial break]
Jim Fried: All right, it’s time to talk about Spectrum Mortgage. Why do I talk about Spectrum Mortgage? Because that’s where my license is, and I want to help you. I want to help you with your real estate loan. I can help you with your home loan, jumbos, super jumbo, non-foreign resident alien. Hey, if you’re having an issue financing, or refinancing your home, well I can help. We’ve got great lenders. We’ve got great bank relationships. We know where it’s at, and today it’s not just about presenting your documentation. It’s about knowing how to make that documentation sell the story that you need it to tell so you can get your loan, and that’s what the people at spectrum know how to do. Bob, and Milvia have been around for 25 years, they’re showing me the ropes, and all I want to do is help you. So, give me a call. Jim Fried at 305-773-6300, and I’ll say it slower for the Jet’s fans, 305-773-6300. As the crow would say, call me.
All right, we are back, and we have got Don Weidenfeld, managing member of Magnum Energy solutions hanging on the line, and Don, how are you doing bud?
Don Weidenfeld: I’m doing fantastic, Jim. Thank you very much for asking. How are you?
Jim Fried: I am doing great. I am walking on sunshine, I’m all fired up, I’ve got my friends here. I’ve got Frank Lago who’s going to help me find newer places to develop land. I’ve got Bob Thollander who we’re going to do those development deals with, and you know Bob has 30,000 apartment units behind him. He may need to hear what you’re about to talk about, Don. So, let’s get right to it. Tell me a little bit about what’s going on with Magnum. You got some new products coming out. Tell me how we’re helping people saving money.
Don Weidenfeld: Yes, thank you very much again. Yes, we always have new products coming out. I’ll go into those in a few minutes, but Magnum supplies, and manufactures, and supplies controls for your age fax systems, as well as for your LED lighting systems. We supply all the controls, and we are a manufacturer based out of Ohio, and we sell nationally all over the United States. All of our products communicate with the thermostats, and the thermostats communicate with occupancy sensors, and those occupancy sensors tell the space, and the thermostat whether there’s an occupant. So, if there’s not an occupant it adjusts your thermostat roughly up to 78 degrees, and when there is an occupant it adjusts your thermostat to your pre-determined setting of 72 or 70, and therefore, it controls your space.
Jim Fried: Well, beyond it it helps me save money on my energy bill, which is a very big thing, and when I throw real legitimate savings to my bottom line, and increase my bottom line. Well, that increases my property values, and that’s what this is all about, isn’t it big D?
Don Weidenfeld: Exactly. That’s exactly what Bob was just discussion, and how to increase your property value. Obviously, our equipment saves between 25% and 40% of your energy bill in reference to your age back, and then with your LED lighting in addition to that we save an additional 50% with the controls. So, it all works in tandem, and just in the savings 25% to 40% it translates to an increased net operating income, and therefore, increases the value of your property.
Jim Fried: So, Don I know that it’s as terrific for a hotel. It’s terrific for student housing. Bob does mostly apartments, so in apartments it would mostly be focused on common area, but I would think you could put those routers that you do in the hubs inside the units, and get them really funky spiffed up look?
Don Weidenfeld: Yes, in addition we do office buildings, and apartments, and strip centers, and what not. A lot of our condo developers want an edge on how they can increase their rent over their apartment building next door, and using our system it makes the space smart, and when it makes the space smart the tenants can control their space with their iPhones, and their iPads, and what not. Therefore, the owners can charge more rent.
Jim Fried: Sounds to me like it’s focused on making old people like me feel like a millennial, and millennial’s feeling like they’re right at home.
Don Weidenfeld: Absolutely, Jim.
Jim Fried: So, Don. Now, these products- I know your home office is up in Ohio. Where is this stuff made, designed, all that stuff because we’re all about making America great here on Fried on business? I guess that’s not something you want to – well you know what I mean Don.
Don Weidenfeld: I got to Jim. I understand where you’re going with that.
Jim Fried: Thank you, thank you, I don’t have my orange face paint on today, sorry.
Don Weidenfeld: Yes, I got you. Well, everything Magnum does is made in the USA. We have five manufacturing facilities in Ohio. That is where the home office of Magnum is, but we have offices in Florida, Maryland, New York, and California as well.
Jim Fried: Now, I know that you’ve been working with a lot of the big hospitality companies, a lot of the student housing people. What’s the product that you’re seeing as the most favored by your customers right now?
Don Weidenfeld: Right now, in the hotel space are products are the occupancy sensors, the window door sensors that are all battery-less and wireless.
Jim Fried: Why is that important?
Don Weidenfeld: And therefore- because it’s easy to install. Any kind of retrofits, or anything of that- so you can just go right in, install any kind of room in less than 15 minutes, and also for new construction it alleviates the need to run wires. Our light switches are wireless. Our occupancy sensors are wireless. The only thing you need to wire in is the thermostat, which is already generally pre-wired in any space.
Jim Fried: Wow, so it sounds like it’s pretty green too.
Don Weidenfeld: One hundred percent. We are lead certified, and we’ve done installations for the GSA in Colorado, and other areas. Our products are all secure, and we are cleared to sit on the GSA’s network. Our current building houses, the FBI, and the IRS. So, we know that we have to be secure there.
Jim Fried: Oh yeah, you sure do, and if you’re on their network then I feel a little bit better about your ability to keep my data secure too, and when you’re doing this wireless stuff, and using the cell phones, and everything. That’s the one thing that people are always afraid of. So, I guess was the word encryption you used?
Don Weidenfeld: Yes, we have 256-bit encryption in all of our devices, which makes us stand out considerably over any of the competition. Again, all of our products are encrypted, and therefore, completely secure across all networks.
Jim Fried: Can you tell us some of the name brand people that you’re doing it commercially with? You mentioned the FBI, and the IRS. That sets the bar pretty high already, but how about in the commercial world.
Don Weidenfeld: Well, we’re the exclusive energy management company for Wind and Worldwide where we install in Starwoods properties, Blackstone. We’re doing US Department of Energy’s Pacific Northwest Labs right now. We’re on our third project with them, and in addition to that we deal with all of the regular hotel brand.
Jim Fried: Now, Don. Where do people –
Don Weidenfeld: All of the Hyatt’s, the Hiltons, all of that Sheraton Hotels, all of the hotel brands we do.
Jim Fried: Wow.
Don Weidenfeld: Again, we have exclusive and Windham.
Jim Fried: Wow, that’s just terrific. Now, if people want to get information about using Magnum. You got a website, you got the phone numbers, how does that work?
Don Weidenfeld: Yes, our website is www.magnumenergysolutions.com, and our local phone number in South Florida is 561-702-9000. That can be connected 24 hours a day, and we’ll respond immediately. So, again www.magnumenergysolutions.com, and the number is 561-702-9000.
Jim Fried: We’ve only got a couple minutes’ left, and you teased me in the beginning that you were bringing some new products to the market. What have we got coming up this summer? Maybe this fall that we can really tease a little, and then we’ll dive in next month with something really good with it.
Don Weidenfeld: Well, actually Bob will love this. We’ve been developing a product in conjunction with Forest City and Verizon really for the apartment space, and it’s a smart thermostat. There’s nothing else like it on the market. It’s called the root, and it will advise the tenants of package delivery, security systems video cameras right into heat apartment plus the energy management system with the occupancy sensors will be controlled through the thermostat, which will connect directly to your iPhone. It also operates as a Wi-Fi hub into the apartments, and anything can be added to it very quickly if we need to do anything specific for any owner. Like let’s say, some of your customers may want to do some advertising for their building company, Bob, and you want to put that right on the thermostat. We can advertise across that. In addition to that, it also operates as the security device, and therefore, if anything is going on that you need to hit an emergency button. It gives you an emergency button, and a direct dial into 911.
Jim Fried: Hey, I just want to say one thing. Hey Bob? I got to take you to my house so you can see the thermostat in my apartment. I think I got – I know where those things need to go right now. So, Don. So, Don. What do we got? Wanda, how much time? About a minute left? Two minutes’ left, holy camoles. So, Bob. What do you think about something you can stuff on, whatever Don just said? He’s a lot better at it than I am.
Bob Thollander: We’re looking for any amenity that will give us a competitive edge over our nearest competition. Everyone is constantly upping the ante trying to be the next guy with the best amenities. So, anything that helps us lease apartments, and keep renters longer, and get additional rent, and or save costs. We’re looking for that.
Jim Fried: Probably also making them happy. Tenant retention is not so bad either, right?
Bob Thollander: Absolutely.
Jim Fried: Being all over something like this in my apartment.
Bob Thollander: Right, definitely going to take a close look at it after we get off the air.
Jim Fried: All right, listen. Don, what I need from you is I need again the contact info, and how they find you because there’s people that it seems like may want to save some money, and throw it to the bottom line with compression and cap rights. Maybe participation, and deals. Make a couple of bucks that way. You never know.
Don Weidenfeld: Absolutely, no question about it. Well, I’ll repeat that, but I do have to say something interesting. Last –
Jim Fried: No, just say it. Go.
Don Weidenfeld: The last of the show I gave my Florida phone number, and the phones in Ohio on the Ohio phone number started ringing off the hook. So, I was trying to figure out how that works. So-
Jim Fried: I just start cracking up.
Don Weidenfeld: You all right?
Jim Fried: That’s hilarious.
Don Weidenfeld: You have 561-702-9000, and we’re looking forward to everybody’s phone calls, and again www.magnumenergysolutions.com.
Jim Fried: And I’ll share-
Don Weidenfeld: And a-
Jim Fried: Oh, go ahead Donny.
Don Weidenfeld: Yeah, I’ll pop you over a picture of the new roots. You can show it to Bob.
Jim Fried: Okay great, I’ll do that. I’m just going to flip him your contact information. The second half of this show we’re going to talk about the apartment market in Florida with Bob Thollander. The director of development, new product development for Bainbridge, and we got Frank in here who’s maybe going to throw in a couple of zingers about South Florida. We’re going to have a great second half. If you’re interested in knowing what’s going on in the state of Florida we’re going to tell you right after this. Wanda, let’s take it away. Let’s have some fun.
[commericial break]
Jim Fried: The show is just smoking today. We’re having a great time. We’ve got Frank Lago telling me all kinds of great information about where I need to be looking for my good client. Bob Thollander, we’ve got Bob Thollander. He’s the development chief for Bainbridge, but I give you a promotion. Vice president, I always give everybody a promotion just so you know. I like to do that.
Bob Thollander: I appreciate it.
Jim Fried: I like to – that’s not problem. I’m sure Richard’s listening, and he’s going to make sure that that doesn’t happen, but Bob’s the vice president of development of the Florida region. He joined Bainbridge companies in 2014. He serves as the vice president of development, and is responsible for sourcing, and execution of the real estate development projects throughout South Florida. Bob is now in South Florida looking for deals. That’s why we’re talking, and Bob is here to talk a little bit about what he sees around the state, and how Florida fits in, and why Bainbridge is here. Bob, tossing you the softball.
Bob Thollander: I’m going to knock it out of the park Jim, thanks a lot.
Jim Fried: Oh, it’s my pleasure.
Bob Thollander: Good pitch, I appreciate it.
Jim Fried: Hey, hey, so you’re from Orlando. Let’s start in Orlando. What’s going on up there in multi?
Bob Thollander: Let me back up a second, and talk about Bainbridge –
Jim Fried: All about that as well.
Bob Thollander: We’re a national development company. We develop luxury apartments, and our corporate headquarters are in Wellington in South Florida, and we have four regional offices up and down the east coast of Florida. We have owner managed over 26,000 rental units right now.
Jim Fried: You do third party management?
Bob Thollander: Absolutely.
Jim Fried: High five.
Bob Thollander: Thank you, and we have about 4,000 units under construction currently, and we have another 5,000 units in the pipeline for right now for 2017, and we’re hoping to double that if I have anything to do with it.
Jim Fried: Well, if I have anything to do with it you will, and I think Frank’s chomping at the bit too. He’s sitting there with his cell phone texting you stuff right now. Now Bob, we talked a little bit about South Florida, and we’ll get into why Bainbridge is entering South Florida. Might have something to do with the fact that they’re based in South Florida, but you’re from Orlando for the last 40 years. That’s have I’ve known you.
Bob Thollander: Yeah.
Jim Fried: Tell me a little bit about what’s going on in Orlando, Central Florida, Tampa, Jackson, and then we’ll get to South Florida.
Bob Thollander: Okay, like I said our regional headquarters for Florida are in Orlando. I’m vice president of the Florida region, and we have a construction company, our property management company, and our development company all under one roof in the Orlando area. We’re very bullish on Orlando. It’s been a very strong market for us. We currently have four deals there, and the pipeline. We have one under construction in three getting ready to start. We have a lot of potential there. We’re looking at more sites. It’s been a real strong market due to the high employment growth. Orlando’s been one of the fastest growing employment centers in the state of Florida if not the nation.
Jim Fried: Now, if you just had a big cup of coffee didn’t you?
Bob Thollander: Yeah.
Jim Fried: Move it.
Bob Thollander: And we like Tampa, and St. Petersburg as well. We’re doing about four projects over there as well, and in the South Florida market we were a little bit late getting started. We have one under construction in Coral Springs.
Jim Fried: Awesome.
Bob Thollander: And here –
Jim Fried: Don’t jinx it.
Bob Thollander: Okay, I’m here to find sites. We still feel like South Florida market has a long run to go, and we’re very bullish in South Florida, and we like it a lot. I’ve been coming down here every other week for the past three months trying to find sites, and so that’s how Jim and I came across and reacquainted. By the way, Jim and I met 32 years ago, and our first jobs was Laventhol & Horwath CPA firm in Tampa.
Jim Fried: I will never forget you. I will never forget you looking up what is now obsolete. A map trying to find the fastest ways to get home. You and Charlie would do that, and then Ron would tell you you’re full of you know what. Yes, we’ve known each other a long time. In fact, when I knew Bob I was doing the feasibility study for Pleasure Island, and that’s so long ago they tore the damn thing down, and redeveloped it already. Now Bob, the thing that makes you different, and I’ll say it. The thing that makes us different is we got our start analyzing real estate from a quantitative and qualitative market study base. So, when you’re doing a deal you’ve really looked at it left, right, up, and down.
Bob Thollander: Absolutely, I actually go in and shop the comp so a lot of –
Jim Fried: Do they tell you the truth?
Bob Thollander: Of course. I pretend like I’m pretending to rent an apartment.
Jim Fried: I’ll make sure that I play this to all of them right now.
Bob Thollander: I won’t wear my Bainbridge shirt when I do my rent comps, so –
Jim Fried: There you go, there you go.
Bob Thollander: But we do a lot of research. I do it myself. I get out, drive up and down every street the old fashioned way.
Jim Fried: Try to drive the Paul Meadow right now. It’s going to be a little bit difficult.
Bob Thollander: Dead stopped.
Jim Fried: Yeah, that’s okay. Welcome to Miami. Have a nice day.
Bob Thollander: But you’re right Jim, that first job with Laventhol & Horwath, it was a CPA firm, but we did market feasibility studies, and financial performing modeling for corporate clients of the firm, and it gave us a real strong background in research, and development, and financial modeling, which has carried me through my entire career even today real important background of mine.
Jim Fried: Well, I’m really glad that you use that stuff. I don’t use it for years. I rent that stuff if I needed. I just use this. I’m pointing to my mouth since it’s radio. It’s all I do, but Bob I also use my brain, and we’ve been looking at some really good stuff, and what’s going on in my opinion in the market is we’re in the bits and pieces phase. So, you really need somebody who’s sharp like Frank who can see the future by looking through what’s on the project today, and seeing what can be done tomorrow. So, that’s what Frank’s been doing for his clients. I know some of them. In fact, some of your clients do business with Don too for the record, Frank. I know that for a fact. So, Bob what product type are you seeing. It’s got to be different in the different markets. Orlando, different than Miami from a product type standpoint. Is Orlando evolving toward –
Bob Thollander: Absolutely, Orlando is mostly wood frame type construction.
Jim Fried: Not going to see that here much.
Bob Thollander: Most everyone’s going to four-story with elevators, but it’s wood frame service park product. In the urban infield areas now such as downtown, and winter park a little bit. You’re seeing four, and five, and six-story wrapped around parking garages, and –
Jim Fried: The proverbial Texas donut.
Bob Thollander: The Texas donut, yeah. So, you’re just starting to get that in Orlando. It’s happening a lot in Tampa now. We have one under construction in Ybor City right downtown.
Jim Fried: Ybor.
Bob Thollander: Yeah, or Ybor. Ybor City, yeah. That’s –
Jim Fried: It’s northeast of Tampa. It’s still the urban edge of Tampa. You can probably take a bus from there, or probably Uber from there for less than five bucks into downtown, right?
Bob Thollander: Absolutely, and there’s a trolley too.
Jim Fried: Oh really?
Bob Thollander: Yeah.
Jim Fried: And they got the channel site thing going on?
Bob Thollander: Yeah, trolley runs right through channel side, and goes into the downtown area, and it loops back around.
Jim Fried: Are you glad the guy from Miami knows how to prompt you on what’s going on in Tampa. I love that stuff.
Bob Thollander: Yeah. Well, that’s a cool project you can walk to all the bars, and restaurants two blocks away, and we’re building it out of wood frame wrapped around concrete.
Jim Fried: Concrete? Oh okay.
Bob Thollander: Yeah.
Jim Fried: I’ve seen some guys starting to do that too.
Bob Thollander: Yeah, and now you’re getting a lot of the five to eight story buildings popping out next up that way. Down here it’s real common to do eight stories in infield areas.
Jim Fried: You almost have to to pay the guy who thinks he’s got an oil well on his site.
Bob Thollander: Exactly, it’s more like eight stories wrapped around a parking garage here all concrete block of course, and then a lot of the guys are doing the high rises. We don’t, by choice, don’t do high rises. We like the garden style four-story, and up to eight story.
Jim Fried: Now, what do you see in Jacksonville? Do you do stuff in Jacks?
Bob Thollander: We’ve been looking at Jacksonville. We haven’t committed to everything yet. We don’t have a pipeline there at all. The rents aren’t as high as the rest of the state, and supply is low. In market we’ve considered entering, but as long as we have such good markets such as South Florida, and Tampa, and Orlando. We just probably avoided it for now.
Jim Fried: We have lots of great brokerages that listen to this show. Frank, and his friends, and his clients listen. They told Frank. So, why don’t you talk to some of the Miami- hang on a second. Wanda, how much time do I have in this segment? Okay, we’ve got time. So, talk to the Miami brokerage community for a second. Tell them they got to go through Jim Fried. I’m just kidding, but tell the people what you’re looking for Bob because you are fresh brand into the market, and people want to know.
Bob Thollander: Okay, well we like, of course, garden style if you can find any. Brier County is strong, Palm Beach County, and aid west three, four, five stories surface park sites if they’re available. As you said most of the best sites have already been taken, so there’s a real shortage of sites. You got to get creative. Look at reuse, repurposing, redevelopment, and have some vision, and bring us something. Anything that makes sense. We like urban infield, but again we’re captive about age and stories.
Jim Fried: You know, I didn’t think that anything was out there that fit that bill in South Florida, and you set me straight. You showed me that there were still some –
Bob Thollander: There’s two, oh.
Jim Fried: You told me, yeah, yeah. Bob tell them the secret sites you’re working on right now everybody.
Bob Thollander: Yeah, you almost let that one go.
Jim Fried: You’re just such a – I am on the radio where I can’t use the right word.
Bob Thollander: I can see one now.
Jim Fried: Yeah.
Bob Thollander: Right behind you.
Jim Fried: Yeah, right I can see more than one out from behind me. The problem is the reason it’s there. So, we’ll be back in about a minute. Wanda will take us away. We’ll come back. We’ll try to tell Bob the rules on the radio aren’t you tell secret information, Bob. This is hear, seek, and promote what you want to see, not what you are seeing. We’ll be back after this with more jocular comments about the real estate market. Frank may even throw in a gem now and then. Wanda, take- what? I have to keep talking? Wanda is trying to find the music. That’s what’s going on. So, I will keep talking. I will say that we are making deals with Bob. That Bob is an active buyer. That Bob is putting out LOIs. We are going back and forth actively. Bob’s the real deal, so if you want to try and do apartments. Bob, how do they find you?
Bob Thollander: Yeah, you can call me, 407-595-1288.
Jim Fried: Say it again because we’ve got Tampa Bay lightning fans listening.
Bob Thollander: Actually I prefer an email with –
Jim Fried: Of course, that way it gets into your- well why don’t you tell them that Bobby?
Bob Thollander: Okay, should I spell it out?
Jim Fried: Well, I don’t know. Why don’t you?
Bob Thollander: Okay, it’s R Thollander.
Jim Fried: Good thing you work for that CPA firm, Bob. They teach you to count to ten too?
Bob Thollander: R-T-H-O-L-L-A-N-D-E-R@bainbridgere.com.
Jim Fried: So, you spell Thollander, but you don’t spell Bainbridge?
Bob Thollander: Bainbridge. B-A-I-N word bridge.
Jim Fried: I love you Bob. We’ll be back after this with more funny real estate talk. I’m Fried on Business, I’m having a great time.
[commericial break]
Jim Fried: Oh, I was on the air talking smack, and talking secret stuff. Wanda, did any of that go out?
Wanda: No, you were just here now doing your thing.
Jim Fried: I was doing my thing, but that was silent. The stuff I was talking about is secrets. I was telling secrets.
Wanda: no, I didn’t – you didn’t give the secrets.
Jim Fried: The secrets didn’t go out? I guess people have to call me to find out what my secrets are.
Wanda: No secret sauce was lot.
Jim Fried: But Bob we’ll talk about that off the air. I know both those deals that you’re talking about, and I’ll tell you why they may or may not get done. That’s what I do. I help Bob find his urban land. That’s my thing that I do with Bob. I do a lot of urban land, and we’re going to do that together with Bob. So, Bob tell me a little bit more about what’s going on with Bainbridge. Why did Bainbridge decide to expand? What’s your capital capacity because you tell me that you’re really strong. Tell the folks that are listening how strong you are, and how you capitalized your deals.
Bob Thollander: Well, we do it the way all of our competitors do for the most part. We put our own equity into it, and we bring in outside equity, and then we obtain a 60 40 construction loan.
Jim Fried: And but you have very strong equity partners that are pushing you to come into South Florida because the number one thing when I have a listing, and somebody calls me and says, “My equity partner directed me to go into that particular area” I know that I got somebody who’s going to close.
Bob Thollander: Well, the institutional investors, as well as the banks, and the buyers, want to be in South Florida. Particular, Miami and Fort Lauderdale, and so that’s why I’m down here scouting sites as fast as I can.
Jim Fried: Yeah, I know. I know. I see you like Barney Rubble, and Fred with the feet rolling underneath he car. You can’t move fast enough. There we go, I finally got him to laugh. Now you’re lightening up Bob. You’re must better this segment than you were the last segment. Now, we’ve got some people that may have tuned in, so talk about you’re in Orlando, you’re in Tampa. What are the differences in those markets compared to South Florida? Are they occupied, do they got demand, do they got supply? How about job growth? All of those good thing that go into your special sauce?
Bob Thollander: Orlando lead the country in job growth in a percentage basis in the past 12 months.
Jim Fried: Good jobs? Or just swinging ice cream cones at Disney.
Bob Thollander: No, no, there’s always a large amount of good jobs, but we also have a lot going on. There’s billions of dollars in construction projects in place. The airport’s expanded. Of course, we have the medical city in Lake Nona. It’s got 3 million square feet in the pipeline. It’s crazy. All the theme parks got billion dollar expansions, and each of them hotels going up. I mean –
Jim Fried: How are you going to find construction workers?
Bob Thollander: I don’t know. It’s challenging, and but in terms of supply and demand we feel like it’s been in check for the most point. Supply is barely keeping up with the demand. With the shift in homeowner ship towards rental. It’s just almost unlimited amount of renters out there looking for apartments.
Jim Fried: Now, I know the building that I live in is always full. That I need to almost put in the word for somebody to get a unit in there, but I will tell you is that they really could use an upgrade with those hubs in that route thing that the guy – Don was talking about earlier. Got to talk to the management company about that.
Bob Thollander: Well, who’s the management company?
Jim Fried: Well, I wonder. Well, I wonder why I’m really playing that? Bob’s team just took over management in my apartment building I live over on Biscayne and 34th. They’re doing an awesome job. I want to say high five to all of them because they got their new bright shirts on. They love those orange shirts, Bob, and I do too because now I can see them.
Bob Thollander: I have one of those orange shirts too.
Jim Fried: Oh you do? Do you have every color? What colors do you have?
Bob Thollander: I do, I have orange, blue, white, black, brown.
Jim Fried: Wow, you’re just a fashion plate there. We close the deal can I get maybe a white one and a black one?
Bob Thollander: Absolutely.
Jim Fried: Oh, that’d be awesome. That’d be – I want an orange one too. Well, maybe I don’t want an orange one. Get people confused in my apartment, but the building is great. They switched from management company to you guys. I’ve noticed the changes already. The place- everybody is excited because they know that the Bainbridge brand means luxury, and excellence.
Bob Thollander: Wow, that’s true. Thanks Jim.
Jim Fried: No problem. Two dollars. But no, everybody is excited. They know that I know the business so they always ask me. They go, “What do you think?” And I go, “Well, I do know this. My friend shares a wall with the guy that manages the property, so if we got a problem I probably know somebody that I can call.” Not that I can get something done, but at least I know the guys, and I know that they care, and you see that’s something that’s really important. They’ve already been a couple of new onset changes. For instance, they moved the leasing office to that’s it. With the whole thing? Oh my God. Bob, she’s telling me I’ve got to go.
Bob Thollander: Well, I might have to come back, Jim.
Jim Fried: You just might, man. You just might. Would you please come back in a few weeks?
Bob Thollander: Absolutely.
Jim Fried: Can’t have you back to back, but we’re going to have you back soon. I want to thank all of my sponsors. You’re going to love this part, Bob. It’s going to take forever. South Florida business and Wealth Magazine. Oh, you might like to sponsor the show because their related group does.
Bob Thollander: What?
Jim Fried: That’s right. So does Inland Real Estate, Spectrum Mortgage, Warren Henry Automotive. You already heard Magnum Energy Solutions. KIND Snacks, the NFL Alumni Association. The Bergstrom Center for Real Estate Studies, the Miami Marlins, the CCIMs, South Florida Business and Wealth Magazine. The hits keep coming, Bob. KIND Snacks, Xpresso Marketing, Social Media 305, and our good friends protecting our kids at Lauren’s Kids. We always try to give good information you can use today, and hopefully it was delivered today with a lot of fun. Bob, give me one of these. Yes. All right, now this is where I wrap it up. Hey, go to our Facebook page, and like our show. Without you I wouldn’t have a show. So, thank you listeners. Join our community, give us feedback, and comments. Tell us who you want to hear from. Why? Because we’re family at Jim Fried at Fried on Business. Facebook, LinkedIn, YouTube, oh my gosh. The websites, hits keep coming. If you missed today’s show it’s going to be up on the website, www.friendonbusiness.com real soon. This is Jim Fried running out of oxygen for Fried on Business. Look for us next week on 880 AM. We are going to have a great show. Brett Harris will be here talking residential real estate. Why do I do this? Because I love it. Remember this isn’t a rehearsal, this is your life. The person that wants to do something finds a way, the other finds an excuse. Now, go out there and make it happen. Sister Sledge, give it to me.
