CategoriesCommunity

Commercial Real Estate Today: Akki Patel Of LRE & Companies On 5 Things You Need to Create a Highly Successful Career in the Commercial Real Estate Industry Today

Every day is not going to be a good day — but there will be great days. Have patience.

 

The commercial real estate industry is a dynamic and challenging landscape that offers enormous potential for success. However, it requires a unique blend of skills, knowledge, and aptitude to truly excel. How does one establish themselves in such a competitive field? What does it take to consistently rise to the top in commercial real estate? How does one rise above the headwinds that are challenging the commercial real estate industry today? In this interview series, we are talking to commercial real estate professionals, brokers, investors, leaders of Real Estate Firms and Real Estate Investment Trusts (REITs), as well as anyone who’s found significant success in this industry. As part of this series, we had the pleasure of interviewing Akki Patel.

Akki Patel is the Founder and CEO of LRE & Companies and has been in the real estate industry for more than two decades.

Thank you so much for joining us in this interview series! Before we dive in, our readers would like to learn a bit about your origin story. Can you share with us a bit about your childhood and how you grew up?

Iwas born in San Francisco and raised in India. I returned to America at the age of 15, having come from a family with a proud, multi-generational history of business innovation in the real estate and construction sector.

Can you share with us the ‘backstory’ of how you got into the real estate business?

I always enjoyed real estate as a child. My father designed middle-income housing — and while it was nothing fancy, I was fascinated by the process and the result. I was fascinated by designs and buildings and the fact that from a simple canvas, the ground, you can build a building, then design comes in and the community aspect. At 15 or 16 years old I would go to open houses. The creative aspect and the actual building are inspiring to me. When I came back to the United States from India, I was staying with my uncle, who received publications for hotels. I would go through them, and I would call all the brokers for the listings. I was 16 years old.

Can you tell us about your company and what makes it stand out?

We are an agnostic real estate developer, with a focus on real estate, hospitality and retail. Our success is built on a foundation of strong relationships and partnerships. Our relationships with cities and retail brands are unique to us; we are creative, out-of-the box thinkers and those things set us apart. Anyone can put a rectangle on the dirt. But our project in Roseville Junction, for example, exemplifies how we can bring about unique uses of space with a mix of retail and hotels. We know where the great spaces are and we can build something that contributes to the community, economically and socially.

Can you tell our readers about the most exciting new projects you are working on now?

Every project is exciting because we are literally creating something out of nothing — with each project unique to the community it’s in. Just to name a couple: We currently have our Roseville Junction project in Roseville, California, in partnership with the American Hospitality Group, which will function as a sports and entertainment complex in Placer County. The Electric Pickle, Roseville Junction’s entertainment and sports complex, will comprise a bocce ball court and 10 pickleball courts, along with dining venues. Roseville Junction will feature “Social Connection” — a one-of-a-kind gathering place with curated food and beverage offerings. Already signed on as an anchor tenant will be Fieldwork Brewing Company, a popular brewery in Northern California.

Another exciting project that we’re working on is Fernley Promenade, a 13-acre mixed-use development along Interstate 80 in Fernley, California. The project will be the first shopping center development in Fernley in over a decade. The first confirmed tenant for Fernley Promenade is a 98-room Home2 Suites by Hilton with a swimming pool and fitness center. The development will also feature three junior retail anchors, as well as various dining and shopping options. Retail space, ranging from 1,200 square feet to 20,000 square feet, is currently available for lease. The property can accommodate freestanding buildings with drive-thru, junior anchor and shop space.

Ok, let’s now move to the main part of our interview about commercial real estate. What are the 3 things that most excite you about the industry now? Why?

  1. Many people might not realize that commercial real estate requires a lot more creativity than traditional residential real estate. You have to have the right project in the right place, and the right partners to see the project through.
  2. The markets are more challenging in commercial real estate so that requires out-of-box thinking and coming up with strategic approaches, which is also where the creativity comes in.
  3. If the “Doom Loop” in commercial real estate is real, there are a lot of buying opportunities in coming months — and that is definitely something to look out for.

What are the 3 things that concern you about it? Why? What should be done to address and alleviate those concerns?

  1. My biggest concern in the industry right now are the increased interest rates. If they stay where they are we have to figure out how to make deals work. We will see these rates go down over time but in the next 24 months developers may have resource debts and no bank wants that. Lenders should be willing to work with buyers so they can ride out this wave rather than foreclosing on larger projects.
  2. There are certain asset classes, such as office spaces, where we might see challenges in the next 12–24 months. This is contributing to the “doom-loop” narrative and impacts confidence in the market. As I mentioned before, these also pose buying opportunities. In some markets, it’s important we open up housing shortages by making housing approvals more accessible so people can build faster and move in, particularly in coastal markets.
  3. Construction costs haven’t dropped as much as we expected. They have stabilized, but they remain higher than in 2019, so also makes it harder for new construction development projects.

If you had the power to put in place 3 changes to improve or reform the industry, what would you suggest? Please share stories or examples, if possible.

This speaks to my previous responses. The biggest thing is that interest rates are historically high and until that comes down you will not see a lot of deals pencil out right now.

How has technology changed the commercial real estate industry, and how do you foresee it shaping the future of the sector?”

  1. Technology has definitely changed the industry. For example, with Ai you can gather a lot more data than what we typically relied on commercial brokers to provide.
  2. Technology has also enabled us to make buildings a lot more efficient with energy solutions. EV chargers, for example, are not just luxury anymore, they are requirements for our hotels and retail. They are now a necessity.
  3. For retail, there is a lot more data through geofencing that shows consumer behaviors, who is shopping, and here. We didn’t have that before and it helps inform our projects.

I am hearing the phrase “Stay alive until 2025” a lot. What is your plan to survive in the current market?

To stay alive until 2025!

For a young person who would like to eventually make a career in commercial real estate, which skills and subjects do they need to learn?

  1. Work ethic. You have to work a lot harder than anyone else in the office to survive in this competitive market.
  2. Technology. Embrace new ways of doing business through advances in technology, and think beyond traditional business practices.
  3. Patience. This is a long game; approach each deal and strategy accordingly.

Do you have three things you would advise a new real estate professional to avoid?

  1. Do not work behind your desk: Be out in the market looking for opportunities.
  2. Do not think you know everything. You are constantly learning, so open your mind when looking at deals and be creative
  3. Don’t expect to get rich quick. There is no fast buck here. Put in the work.

When evaluating deals or opportunities in real estate, what are the most important factors you look for and why? Can you provide some examples?

We underwrite deals more carefully than ever before. Capital markets today, where we are seeing high interest rates, do not make it easy for many deals to pencil out.

We weigh the value and ask ourselves: Is it cheaper to build or cheaper to acquire?

Can you share a story with us about the hardest deal you made, that ended successfully for you?

There was a deal that took us 2 years to get the co-tenancy clause approved after we bought the land. We would have faced a lot more risk in that deal if the co-tenancy clause wasn’t approved, but we were able to successfully negotiate that and break ground.

Based on your personal experience and success, can you please share “Five Things You Need To Create A Highly Successful Career In The Commercial Real Estate Industry”?

1 . Know your cities and your local municipalities and invest in understanding what makes each community unique.

2 . Real estate is not just about sending out a flier; it’s about working with your clients’ needs. Take the time to understand what they are looking for and how to address their unique needs.

3. If you’re expecting a steady income this is not the industry for you. There is always a balance of risk and reward.

4. Every day is not going to be a good day — but there will be great days. Have patience.

What advice would you give to another real estate professional about improving the work culture, building team morale, and helping each employee thrive?

It’s always about teamwork and every project requires a team effort. There are a lot of people from your back office to your people out in the field who will touch the project and it’s a team effort that makes any project successful.

You are a person of great influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. 🙂

I sit on the board of DignityMoves, an amazing organization that works to end unsheltered homelessness in communities by building Interim Supportive Housing as a rapid, cost-effective, and thus, scalable solution. I am passionate about addressing the issue of the unhoused and solving homelessness by utilizing resources that a city already has. For example, land that may be sitting empty and dormant for 10 years can be used for housing the unhoused.

How can our readers further follow your work online?

Akkipatel.net

Lrecompanies.com

This was very inspiring. Thank you so much for joining us!

CategoriesCommunity

Dignity Moves Opens 32 “Tiny Homes” in Santa Barbara

ands Across Montecito co-founder Kathryn Washburn got a call from Dignity Moves a couple of weeks ago, asking if she’d support the new tiny homes in downtown Santa Barbara. As a strong member on the Hands Across Montecito team that has achieved great results in helping people leave homelessness, Kath wasn’t sure about this. She wanted to see it.

So she asked for a tour, and after seeing it, immediately went to work to provide supplies for one of the units to make it a home.

Then she called the Hands team, and Andrea Eltinge and I went with her to the ribbon-cutting last weekend. It was impressive.

A small, narrow parking lot owned by the county in the 1000 block of Santa Barbara Street had been turned into a village of 32 tiny homes, with a central kitchen area, bathrooms, decking, and thoughtfully placed potted plants. Here’s some of the story on how that happened:

Elizabeth Funk, the founder and CEO of Dignity Moves, said they ordered the units October 1. Now, they’re about to move 60 people into these 32 units. Matt Riley, a Montecito resident on the Dignity Moves board, was credited for tireless ‘Do-ism’ in making this happen so quickly.

Funk said there were many similar stories: Many people made newly homeless are not addicted to substances, but 30 days after being on street, your chances of developing a lifetime addiction skyrocket. Then climbing out of homelessness becomes even more difficult.

Something we’ve experienced on the Hands Across Montecito project: no one wants to go into a shelter. It’s not hard to see why. It’s bunk beds. It’s crowded, in a pandemic. You have to be in early at night. Your stuff often gets stolen while you sleep. You have to be out at 5 or 6 am in the morning, with nowhere to go. It’s ‘near jail’ conditions, and dehumanizing.

Dignity Moves offers what we’ve long needed: bridge housing – a temporary indoor bridge from homelessness to permanent housing. These units are meant to provide security, via four walls, 64 square feet of space, a roof, and a locking door. Hands Across Montecito leverages hotel rooms as bridge housing. It’s far easier for CityNet case managers to help people move forward when they’re in a stable situation versus trying to find them in camps, where they’re often forced to move around.

Kathryn Washburn of Hands Across Montecito in front of the unit she provisioned

Supervisor Williams said, “This is an example of what community can do. We should not stop here. Some say certain people will never come inside. That may be true, but we’ve never yet run out of the people who do want to come in off the street.”

Supervisor Hart noted the “enthusiasm that this is a different tipping point in dealing with the problem of homelessness. When you see these tiny homes, you realize this is what we need to do. It is shelter with dignity, that restores people’s humanity.”

The site will have onsite management, and services that help people transition out of homelessness provided by Good Samaritan, a huge nonprofit from Santa Maria. I’ve had a lot of experience with them as a member of the Behavioral Wellness Commission. Sylvia Barnard does a fine job overseeing projects like this that move people out of homelessness. The construction costs of $1.4 million were covered by a combination of county funding and philanthropy.

Councilmember Jordan thanked partners ACT and CityNet, who have also been our partners in Hands Across Montecito.

On my way out, I ran into Frog, who I’d met before at group feedings for the homeless in Santa Barbara. She’s been without a home since 2004. She will be moving to unit 13, as it’s lucky for her.

There’s a commitment to do a similar project in North County, but at least one more tiny home village is needed in the South County. The ideal site is a parking lot that’s not being used, or is under-used, and somewhat centrally located. If you know of one, let us know! Email info@montecitoassociation.org.

Sharon Byrne is the Executive Director of the Montecito Association

CategoriesCommunity

DignityMoves Takes on Homelessness with an Innovative Approach

There are no easy solutions to the homelessness issue that affects many of our communities across the country. In California alone, the population is estimated at 172,000, or 30 percent of all homeless people in the United States, according to 2022 data from the U.S. Department of Housing Development. Some experts believe those numbers are underestimated, and the population could balloon even more as federal emergency rental assistance and other programs during the pandemic have come to an end. As such, the homelessness crisis needs to be treated as an emergency. We need bold and creative thinkers to get a foothold on this growing problem, which stems largely from California’s exorbitant housing prices. That’s where Dignity Moves comes in. The charity organization’s innovative approach provides interim supportive housing in such California communities as San Francisco, Alameda, Rohnert Park, Santa Barbara and Santa Maria.

  1. A Place for Stabilization, Rebuilding Lives The interim housing gives those in need a stop-over between the streets and permanent housing or, as described in the Dignity Moves website, a “place where people can get out of survival mode, take a breath, and have the mental and emotional capacity to focus on stabilizing and rebuilding their lives.” I am proud to say that I recently became a member of Dignity Moves’ Advisory Task Force, and am looking forward to working within the organization to advance its innovations. In 2023,DignityMoves has plans to expand beyond California and reach out to communities around the country similarly overwhelmed by homelessness. We spend billions on the issue at the federal, state and local levels, but the majority of those dollars are diverted toward permanent supportive housing. They are, of course, necessary, butthey are just one part of the solution. Dignity Moves has found that up to nine of 10 unhoused people will refuse placement in“ congregate” shelters. They might fear for their safety or that their belongings will be stolen, or perhaps the shelters do not allow couples or pets. But the organization says no one has yet turned down one of its temporary private rooms, and the first step in helping unhoused people rebuild their lives is simply to get them off the streets. Model for Success
Dignity Moves builds communities on borrowed land. It identifies an underutilized or vacant parcel of land–perhaps even a parking lot–and negotiates with the owner to create a temporary community for up to three years. Their generous landlords have included private landowners, governments, churches and hospitals. A half-acre plot can accommodate a community with 70 rooms, plus common areas. Once the lease agreement is up, Dignity Moves picks up its prefabricated modular units and relocates them to a new community nearby.

Dignity Moves has found that those living in interim housing–with the stresses of living on the streets gone–become more self-sufficient, less dependent on government assistance and find their own way out of homelessness. To learn more, visit dignitymoves.org.

CategoriesCommunity

Dignity Village Grand Opening Celebration Set for May 3

The City of Alameda is hosting a grand opening celebration at Dignity Village on Wednesday, May 3 at 10 a.m. – and the public is invited. Dignity Village, a two-story, 47-unit Interim Supportive Housing project at 2350 Fifth St., will provide shelter for individuals experiencing homelessness or chronic homelessness. The grand opening celebration will be at the site; please RSVP online.

Alameda Post - Dignity Village groundbreaking ceremony, Oct 25, 2022.
Dignity Village groundbreaking ceremony, Oct 25, 2022. Photo Maurice Ramirez.

Dignity Village will be capable of serving up to 61 individuals, with five units specifically set aside for homeless youth aged between 18 to 24. Each unit measures 138 square feet and is equipped with a private, ensuite bathroom. Dignity Village will also contain additional community buildings, including a dining space, meeting rooms, private offices for support services staff, and storage for resident belongings.

People in need of housing will be referred by the Homeless Management Information System, managed by Alameda County Health Care Services Agency’s Office of Homeless Care and Coordination Coordinated Entry Program. During the initial housing placement, Alameda’s unhoused residents will be given priority.

Donut Fun Run October 21, 2023
Alameda Post - a birds eye view of Dignity VIllage. There is a long two story wall of small apartments and a few shorter buildings in the middle. It is up next to a road, and there's a small parking lot. The whole development is i the shape of a very tall, thin right triangle.
Bird’s-eye view of the plan for Dignity Village. Image Dignity Moves.

The City led the effort to develop Dignity Village, partnering with nonprofit developer DignityMoves and onsite service provider and property manager Five Keys Schools and Programs. The City was awarded a $12.3 million grant from the State’s Homekey Program to build Dignity Village, and $2.35 million from Alameda County to cover five years of operating services.

Alameda Post - Dignity Village logoCommunity members may contribute to the Dignity Village Fund-A-Need in three different ways:

  • Donate to the GoFundMe campaign to support the purchase of durable furnishings and basic necessities for each unit.
  • Purchase new resident welcome basket items from the Amazon Wishlist.
  • Volunteer time to help prepare rooms for occupancy.

The City of Alameda has been working to provide interim supportive housing for those experiencing homelessness or chronic homelessness. The creation of Dignity Village is a significant step towards supporting those most in need.

Alameda Post - Julia Park Tracey The Bereaved

DignityMoves serves as the project development manager, managing the architect, general contractor, and other project consultants to successfully complete the project, while adhering to the strict guidelines of the California Housing and Community Development Homekey 2 grant.

Alameda Post - nearly complete construction at Dignity Village
A view from Fifth Street into Dignity Village as construction nears completion on April 12, 2023. Photo Adam Gillitt.

Five Keys will serve as the onsite service provider and property manager for at least the first five years of operation. Their services will include intensive case management, robust housing navigation and readiness services, good neighbor practices and resident education, community event planning, and property management inclusive of routine maintenance of the units, 24/7 security, and janitorial services. Five Keys will operate the project using “Housing First” principles and will coordinate with the City and existing social service providers to meet and maintain California occupancy requirements.

CategoriesCommunity

Rohnert Park’s first homeless housing site opens Monday

Rohnert Park will welcome the first residents to its new $15 million homeless housing site on Monday.

The 60-unit project on Labath Avenue is Rohnert Park’s first effort to house some of its estimated 250 unsheltered residents.

Officials in Sonoma County’s third largest city hope the new space provides them with an additional tool to address rising homelessness, particularly a large encampment on Roberts Lake Road that has caused growing concern among residents and businesses.

“Labath Landing gives us a really important asset to respond to homelessness in Rohnert Park,” Assistant City Manager Don Schwartz said.

The project provides people experiencing homelessness with temporary housing and wraparound services while they work with a case manager to find lasting homes. The city anticipates serving about 100 people a year there, Schwartz said.

The facility, less than a mile south of Graton Resort and Casino, was paid for through the state’s Project Homekey. The $3.6 billion program launched in 2020 gives local jurisdictions and tribal governments money to repurpose motels for housing and build new shelters.

On Wednesday, about 50 construction workers raced to finish work at the city-owned acre lot, paving the parking lot and access road, nailing down decks and installing landscaping.

Volunteers were expected to be on site to set up furniture and decorate the rooms in the coming days.

Rohnert Park officials on Sunday will celebrate the completion of the project with tours of the facility and a ceremony before transporting new residents to the site on Monday.

The city anticipates units will be 90% occupied when it opens, Rohnert Park’s Housing Administrator Jenna Garcia said.

Officials have made offers to about 50 people camping in the commuter parking lot on Roberts Lake Road and in an encampment in Hinebaugh Creek to move into Labath Landing, Garcia said.

“People are really eager to move in,” she said.

Officials will reorganize remaining residents at the commuter lot into a smaller, managed camp on the east side of the lot after transitioning people into the new units.

Labath Landing is made up of about a dozen prefabricated modular homes.

People will be housed in small private rooms, each outfitted with a lofted twin bed with storage space below and a desk. Twelve of the rooms are compliant with the Americans With Disabilities Act and are slightly larger with capacity for up to two people such as a couple.

Residents will share communal bathrooms and there is a community room with a dining area, conference room and computer lab. The campus has laundry facilities, additional storage space, a community garden and pet relief area.

Labath Landing will be operated by Milpitas-based nonprofit HomeFirst, which will have staff on site to provide case management, mental health counseling and other services. Prepared meals will be given to residents.

The majority of the units are reserved for individuals with high needs such as those considered chronically homeless, older residents and people with disabilities or health issues, Garcia said.

Chronic homelessness, where a person has been continually homeless for a year or more or has experienced homelessness on several occasions within the past three years, spiked in Sonoma County over the past two years despite a surge in government spending, according to a February point-in-time count.

In approving the project last year, city officials said Rohnert Park needed more housing for the homeless to effectively enforce camping and overnight parking rules.

The City Council last October voted to seek financing for the project, over objections from Graton Casino operators and two nearby hotels. The state approved the city’s full $14.6 million funding request in December.

Crews broke ground on the project in June and have been working round-the-clock to finish construction under a tight deadline from the state to open within 10 months of being awarded funding, Garcia said.

Rohnert Park has received a subsidy from the state to help pay for operations and has qualified for a $600,000 early occupancy bonus that will be put toward operating costs. The city will also receive money from a funding framework set up by Sonoma County to provide operating funds to Homekey sites for seven years.

Garcia said the site will provide a safe environment for people to get stabilized and the private setting will help better meet residents’ needs compared to a congregate shelter, which can be a deterrent for people seeking services.

“Labath Landing demonstrates the city’s commitment to addressing homelessness,” Mayor Jackie Elward said in a statement. “It will address the crisis on our streets by providing a place for people to gain stability as they transition to permanent housing and help people move out of homelessness for good.”

You can reach Staff Writer Paulina Pineda at 707-521-5268 or paulina.pineda@pressdemocrat.com. On Twitter @paulinapineda22.

Get in touch

phone

(415) 491 – 1500

4302 Redwood Hwy Suite 200

San Rafael, CA 94903

email

info@lrecompanies.com

Get in touch

phone

(415) 491 – 1500

4302 Redwood Hwy Suite 200

San Rafael, CA 94903

email

info@lrecompanies.com

about us

The LRE & Co is a family organization that has been in real estate development, construction and the food and beverage businesses since 1999. It has been present in major markets throughout northern California and northwest Nevada.

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