Tag: real estate developer

• Developer Profile: The Adir Group

  In 2010, Gal and Tania Adir, aged 23 and 24, respectively, began renovating high-value apartments in central London.

  Today, they are known as The Adir Group and have about £50m in development under way.

  But more than just a developer, the group has grown to become “the parent company of a quickly expanding collection of complementary brands bound together by a desire to enhance people’s lifestyle through quality and beauty.”

  In addition to G&T (their residential development arm), they also founded Net.Works (a co-working space) and Nuper (a co-op living scheme). This last focus isn’t up on their website yet, but I read about it on Michael Mortensen’s blog. The goal of Nuper is to create affordable living solutions for young talent in London.

  I wanted to profile The Adir Group because I think it’s incredible how young they were when they got started (I was just starting graduate school at 23) and because I like their approach of creating a collection of complementary companies.

  I am excited to see where the next generation of developers (myself included) take this business. Already we are seeing some new approaches emerge.

  2016.03.14

• Mr. Robinson — Architect as Developer

  I first learned about the work of Jonathan Segal back when I was in architecture school. And he was somebody I immediately admired. 

  At the time, I was struggling to figure out where I wanted to position myself between architecture and real estate development, and he was somebody who had seemingly figured it all out: he simply merged the two.

  For those of you who are unfamiliar with Jonathan Segal, he has made a name for himself by being a pioneer of the “Architect as Developer” business model. That is, he acts as both the architect and the developer/client.

  This business model isn’t going to suit everyone, but I suspect that we’ll see more of it in the future.

  Of course, it doesn’t just have to be an architect acting as a developer. It could also be an architect and a developer joining forces or some other permutation. Whatever the case may be, design and innovation are central to business today and that’s why I think this model will only become more relevant.

  Below is a short 3 ½ minute video about Segal’s latest project, called Mr. Robinson. It is located in San Diego. If you can’t see the video below, click here.

  [vimeo 155403927 w=500 h=211]

  If you’d like to see the typical floor plans or rent one of the apartments (they start at $2,400/month), click here.

  Now I’d be curious to hear your thoughts. Do you like the project?

  2016.02.17

• My approach to blogging

  In yesterday’s post about the city as an egg, I received a comment basically saying that I use this blog to carefully curate my own image and that I would never argue against “dumb Toronto planning” because, after all, I’m a developer. I am going to do what breads my own butter.

  I welcome intelligent debate on this blog. That’s why it is open to anyone who would like to comment. But since I’ve received similar comments in the past, I thought I would use the opportunity to talk broadly about my approach to blogging.

  Firstly, there will always be some level of curation involved. That’s inevitable. We see it all over social media. But I’m a big believer in transparency and I try to do exactly that on this blog. I am keen to push the boundaries in this regard.

  At the same time, part of what makes blogs unique is that they’re often personal. That is the origin of blogging. Some of my favorite blogs to read are the ones that have figured out how to combine a particular niche topic with personal stories. And since ATC is ultimately my personal blog, I am going to continue taking that exact same approach.

  Secondly, I only write about things that I’m passionate about. I get asked all the time to write about and promote specific projects, causes, and events. But almost all of them do not get written about it. Because if I don’t care about it, then I’m not going to write about. It’s as simple as that.

  Thirdly, I believe in positivity over negativity. I believe that optimists, not pessimists, change the world. President Obama won his first term with a message of hope, not despair. To me, that is a stronger motivator.

  I’ve been told before that I’m overly optimistic and that my youthful exuberance will one day wear off. Boy, I sure hope it doesn’t. Because would you rather have a beer with someone who is optimistic or someone who is pessimistic? I will always take the former.

  However, this is not to say that I want to be blind to the realities of the world. Last summer I disagreed with Toronto’s decision to rebuild the elevated Gardiner Expressway East along the waterfront, and I continue to disagree with that decision. 

  When I believe something is a mistake, I am happy to make it public and put it in writing on this blog. But as a developer, I suppose I have certain biases working against me. That’s just the way it is.

  In any event, this is my rough and ever-evolving approach to blogging. As usual, I welcome any and all comments.

  2016.02.12

• Pocket two bedroom

  I recently started reading the blog of Michael Mortensen. Michael is a real estate developer and urban planner based in the UK. And if you like my blog, I think you’ll also like his.

  Last week he published a post talking about a UK development company called Pocket and a recent design competition that they organized called “Pocket two bedroom.”

  Historically the firm has been focused on well-designed and compact one bedroom apartments (38 square meters) that they deliver at a minimum 20% discount relative to typical market rate housing in London.

  But over time, they found that they had to turn people away because they were looking for larger – yet still affordable – two bedroom apartments. So the firm decided to figure out how to scale their model to larger units.

  To do this, they went out and asked 19 architects to come up with ideas for a two bedroom Pocket apartment. They then published all of the ideas online.

  Firstly, I applaud them for making their competition results public. Most real estate companies wouldn’t do this.

  Secondly, it’s interesting to take note of the recurring design themes, as they have on page 24-25 of their competition book. 

  Some of the themes include “deep thresholds” that blur private and communal spaces; “thick walls” that allow for storage and servicing; flexible spaces and fewer dedicated spaces; and dual entry apartments.

  This last item was particularly interesting to me. It’s a simple idea – two separate doors leading into one apartment – but it can allow for a number of flexible sharing scenarios. I am already imagining somebody creating an Airbnb rental out of their second bedroom.

  Housing is certainly undergoing a transformation.

  2016.02.09

• Yes, just do it

  

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  I have started to meet with developers for my new book – becoming a real estate developer – and I can’t begin to tell you how impressive and inspiring it is to learn about their stories.

  It’s easy to look at someone who is successful and feel overwhelmed by everything they’ve accomplished. But nobody starts at the top of their game (unless maybe they were born with a silver spoon in their mouth). Usually there’s a backstory of sweat and struggle that rarely gets told. As the saying goes: success has many fathers, but failure is an orphan.

  But those are exactly the kinds of things I hope to uncover with this little project. I am less interested in the successes and more interested in the early decisions, struggles, and thoughts that went into making those successes even possible.

  And one thing I’ve noticed is a tendency to just go for it. In fact, when I asked one developer if he had any advice for young aspiring developers, he said: just fucking do it.

  As soon as he said this I couldn’t help but think of my elementary school English teacher who used always tell us the same thing – minus the expletive – whenever we’d ask him something such as, how long should this paper be, should we focus on this or that, and so on. He would always say: What does Nike say? Just do it. No buts. Just do it.

  At the time, I obviously didn’t give this much thought. But the fact of the matter is there’s so much value in doing. And it’s easy to overthink at the expense of doing. What he was teaching us was to have confidence in ourselves that we would figure it out along the way.

  The reason there appears to be a lot of interest in “how to be a real estate developer” is because there isn’t really a set path. You don’t go to school, apprentice for a year under the wing of a developer and then, boom, you’re a developer. 

  Most developers have carved their own paths. They just did it.

  2015.12.30

• 16 mobile theses and how tech might change the built environment

  

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  One of the things that I try and do here on this blog is examine the intersection of design, real estate, and technology. I didn’t explicitly set out to do that, but more and more I find myself thinking that way when I’m writing and when I’m giving talks.

  Part of that is because of my passions, but part of it is because there is a big and important overlap. One example of that is autonomous, self-driving cars. The tech community is enamoured with driverless cars, but everyone involved in the built environment should also be thinking about their impacts. Because it’ll be significant.

  Benedict Evans – who is a venture capitalist with Andreessen Horowitz in the Valley – recently published a post called, 16 mobile theses. It’s a look at 16 topics, trends, and shifts that are happening in the tech space. (There’s also a related podcast discussion.)

  If you’re involved in internet products, you absolutely need to give it a read. But I also think it’s interesting to read it through the lens of a designer or real estate person. Productivity is changing. Notions around the living room are changing. And yes, autonomous vehicles are going to have a profound impact on the urban landscape of our cities – just as cars did initially.

  Below are 3 excerpts from Benedict’s post that I really enjoyed.

  The first is about mobile and just how massive it is:

  “The mobile ecosystem, now, is heading towards perhaps 10x the scale of the PC industry, and mobile is not just a new thing or a big thing, but that new generation, whose scale makes it the new centre of gravity of the tech industry. Almost everything else will orbit around it.”

  The second is about how “networked” is quickly becoming a given:

  “Our grandparents could have told you how many electric motors they owned – there was one in the car, one in the fridge and so on, and they owned maybe a dozen. In the same way, we know roughly how many devices we own with a network connection, and, again, our children won’t. Many of those uses cases will seem silly to us, just as our grandparents would laugh at the idea of a button to lower a car window, but the sheer range and cheapness of sensors and components, mostly coming out of the smartphone supply chain, will make them ubiquitous and invisible – we’ll forget about them just as we’ve forgotten about electric motors.”

  And the third is about those self-driving cars:

  “The move to electric and the move (if and when) to autonomous, self-driving cars fundamentally change what a car is, but also what the whole automotive system might look like. Electricity changes the mechanical complexity of cars and hence changes who might build them and what they might look like. Autonomy and on-demand services change who buys them, meaning the buying criteria will be different. But they could also change the urban landscape just as much as cars themselves did – what do mass-market retail or restaurants look like if no-one needs to park?”

  Can you think of other ways in which tech will impact cities and the spaces we occupy?

  2015.12.20

• I’m writing a book on becoming a real estate developer

  

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  One of the most common questions I get from readers of this blog is: How do I become / get into real estate development?

  In fact, I get it so often that I’ve decided to write a book as my response. It may be a short one or it may end up a long one. If you’ve emailed or messaged me with this question and I haven’t responded, I’m sorry. There’s a lot of you out there. But I do want to help and that’s why I’ve decided to take on this hobby book project.

  As part of the book, I’ll be talking about my own journey, as well as the actual nuts and bolts of development. But I would also like to feature some much more established players in the business. In order to do that, I’ve decided to crowdsource some of the content for this book. 

  So here’s my ask to you: If you’re a real estate developer and would like to share your story, please complete this short questionnaire. You can be located anywhere in the world.

  My plan is to select a handful of developers from around the world and then feature their stories, one-by-one. I’m confident that there will be a lot of interest in hearing how successful developers established their careers and/or own businesses.

  I’ve been thinking about doing this for quite awhile now. It feels good to get started. 

  2015.12.19

• What a “buy now” button will mean for the new construction real estate industry

  

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  Recently it has been in the news that BuzzBuzzHome.com – the new construction real estate site – will be launching a “buy now” feature in the new year (2016).

  This will allow people to buy condos and homes online with their credit card, which means that people will be able to pay the $5,000 deposit online and process all the paperwork that today happens within a sales office.

  This is huge.

  If you’re somebody who has used a computer and the internet before, the process today feels archaic. Typically you go online to register for a project and then somebody will call you to arrange an appointment. If you ask them to email you the price sheet and floor plans ahead of time, they’ll almost always tell you that they can’t do that and that you’ll need to come into the sales office for an appointment. 

  But what about if you end not liking the floor plans and you’re about to waste a few hours of your time? Too bad. The sales funnel requires you to be present in person. This is nothing against the many talented sales professionals working in new construction; it’s just that if I can design and price out a car online and if Mark Cuban can buy a $40 million jet online, then I should be able to shop for a new condo online.

  BuzzBuzzHome has been chipping away at the current model for years and they’ve managed to get a lot more information online than was previously available. When Matthew and Cliff first launched BuzzBuzzHome in the late 2000s it was almost unheard of for developers to put any sort of pricing and floor plans online. Now they at least have some of that on their site. I’m glad they stuck with it.

  Because what’s equally exciting about what BuzzBuzzHome is doing is that in order to offer a “buy now” feature, they also need to have an accurate account of all developer inventory on hand. And so alongside this “buy now” feature they’re also building out a full cloud-based inventory management system for developers. 

  This means that BuzzBuzzHome will soon be managing the supply-side of the new construction marketplace. Think of the data and analytics you can extract from a platform like this. It’s going to bring much greater transparency to this industry.

  But if your business is in any way connected to the new construction real estate market, I would take this morning and think about how the above innovations could impact your business model. I can think of a few winners and losers.

  Some of you might be thinking that people aren’t going to make the biggest purchase of their life online. But I would bet the farm that many people will. I know I would.

  2015.11.12

• City building every way you can

  

  Tonight I attended and gave a short talk at a city building themed PechaKucha night here in Toronto. If you aren’t familiar with the PechaKucha 20×20 presentation format, click here.

  The first PechaKucha night was held in Tokyo, but it has since expanded to over 800 cities around the world. Each city has a local organizer who acts as a steward and here in Toronto it is Amy Bath. She did a fantastic job this evening.

  Tonight’s event was all about non-traditional forms of city building. It was not so much about how architects and developers are shaping the built environment – thought there was some of that. It was more about how interdisciplinary artists, graphic designers, bloggers, and others, are having an impact on cities. So in my case, I was speaking as a blogger, rather than as a real estate developer, which was a bit unique for me.

  What excited me about tonight is the amount of talent and passion that we have in this city, and how so much of it is being harnessed to make cities better.

  Jay Wall of Studio Jaywall is doing incredible work at the intersection of graphic design and city building. My friend Mackenzie Keast of Distl and NXT City Prize is organizing public space competitions and then working with the city to get them built. And my friend Justin Broadbent, who is an interdisciplinary artist, is just killing it and putting Toronto on the map. I don’t know how else to say it.

  And this is just naming a few of the people in attendance.

  I have so much respect for people who love the city they call home and actively try to make it a better place. That’s a lot harder to do than just complain about why your city isn’t (insert other allegedly better city here). But it’s also a lot more productive.

  2015.10.21

• Where will we live?

  

  This evening I participated in a roundtable discussion at WORKshop here in Toronto. It was part of an exhibition that they currently have on called, Toronto 2020: Where Will We Live? They are located in the concourse level of 80 Bloor Street West, so go check them out.

  The discussion this evening was all about the dramatic change in Toronto’s urban form over the last decade. In other words, the condo boom. We covered everything from the life cycle of buildings and urban design to demographics and policy. It was a lot of fun and I am certain the group could have continued talking all night.

  But one thing that I was reminded of this evening is how important it is for great city building to be cross-disciplinary.

  Take, for example, architects and (real estate) developers. 

  The stereotypical developer is greedy and only concerned with money. They don’t care about the impact that their buildings have on the built environment. On the other hand, the stereotypical architect is only concerned with design and not with the economic feasibility of projects. (I’m exaggerating here for effect.)

  The point is that neither of these participants in isolation could build a great city. A beautiful design doesn’t have much value if it can’t be financed and built. And a highly financeable project could end up contributing nothing to the city. In some cases it could actually detract from the built environment.

  So if we really want to build truly great cities, I believe it needs to be a collaborative effort. We need to bridge the divides in thinking and leverage each other’s strengths. 

  I have felt very strongly about this since I first started studying architecture as an undergraduate student, which is how I ended up taking business and real estate classes. I felt and continue to feel that the greatest opportunities exist at the intersection of different ways of thinking.

  2015.09.10